Reportable Segment Information

12 Months Ended

Dec. 28, 2019

Management views the Corporation as being in two reportable segments based on industries: office furniture and hearth products, with the former being the principal segment.

The aggregated office furniture segment manufactures and markets a broad line of commercial and home office furniture which includes panel-based and freestanding furniture systems, seating, storage, tables, and architectural products. The hearth products segment manufactures and markets a full array of gas, wood, electric, and pellet fueled fireplaces, inserts, stoves, facings, and accessories.

For purposes of segment reporting, intercompany sales between segments are not material, and operating profit is income before income taxes exclusive of certain unallocated corporate expenses. These unallocated general corporate expenses include the net costs of the Corporation’s corporate operations. Management views interest income and expense as corporate financing costs and not as a reportable segment cost. In addition, management applies an effective income tax rate to its consolidated income before income taxes so income taxes are not reported or viewed internally on a segment basis. Identifiable assets by segment are those assets applicable to the respective industry segments. Corporate assets consist principally of cash and cash equivalents, short-term investments, long-term investments, IT infrastructure, and corporate office real estate and related equipment.

No geographic information for revenues from external customers or for long-lived assets is disclosed since the Corporation’s primary market and capital investments are concentrated in the United States.

Reportable segment data reconciled to the Corporation's consolidated financial statements was as follows (in thousands):



	2019			2018			2017
Net Sales:
Office furniture	$	1,697,186		$	1,706,092		$	1,660,723
Hearth products	549,761			551,803			515,159
Total	$	2,246,947		$	2,257,895		$	2,175,882

Income Before Income Taxes:
Office furniture ^(a)	$	103,894		$	75,965		$	50,176
Hearth products ^(b)	94,329			91,367			83,649
General corporate	(46,881		)	(39,159		)	(57,135		)
Operating income	151,342			128,173			76,690
Interest expense, net	8,628			9,448			6,078
Total	$	142,714		$	118,725		$	70,612

Depreciation and Amortization Expense:
Office furniture	$	44,887		$	44,303		$	48,435
Hearth products	8,884			8,171			10,109
General corporate	23,656			22,314			14,328
Total	$	77,427		$	74,788		$	72,872

Capital Expenditures (including capitalized software):
Office furniture	$	41,137		$	47,860		$	79,458
Hearth products	12,225			8,854			17,356
General corporate	13,523			6,982			30,577
Total	$	66,885		$	63,696		$	127,391

Identifiable Assets:
Office furniture	$	874,913		$	797,574		$	821,767
Hearth products	364,653			352,060			347,189
General corporate	212,946			252,210			222,594
Total	$	1,452,512		$	1,401,844		$	1,391,550


(a)	Included in operating profit for the office furniture segment are pretax charges of $2.4 million, $16.4 million, and $32.5 million, for restructuring and impairment charges in 2019, 2018, and 2017, respectively.


(b)	Included in operating profit for the hearth products segment are pretax charges of $1.2 million and $4.9 million for closing facilities in 2018 and 2017.

The Corporation's net sales by product category were as follows (in thousands):



	2019		2018		2017
Systems and storage	$	951,965	$	1,015,900	$	1,069,518
Seating	583,245		598,722		536,501
Other	161,976		91,470		54,704
Hearth products	549,761		551,803		515,159
	$	2,246,947	$	2,257,895	$	2,175,882