Reportable Segment Information

3 Months Ended

Mar. 28, 2020

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 general 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 condensed consolidated financial statements was as follows (in thousands):



	Three Months Ended
	March 28, 2020			March 30, 2019
Net Sales:
Office furniture	$	338,386		$	353,511
Hearth products	130,318			125,945
Total	$	468,704		$	479,456

Income (Loss) Before Income Taxes:
Office furniture	$	(33,231	)	$	(1,731	)
Hearth products	20,671			17,609
General corporate	(11,168		)	(12,201		)
Operating income (loss)	(23,728		)	3,677
Interest expense, net	1,811			2,111
Total	$	(25,539	)	$	1,566

Depreciation and Amortization Expense:
Office furniture	$	11,332		$	11,060
Hearth products	2,306			2,056
General corporate	5,849			5,924
Total	$	19,487		$	19,040

Capital Expenditures (including capitalized software):
Office furniture	$	7,101		$	10,319
Hearth products	2,973			4,998
General corporate	3,085			3,779
Total	$	13,159		$	19,096

	As of March 28, 2020			As of December 28, 2019
Identifiable Assets:
Office furniture	$	785,063		$	874,913
Hearth products	376,862			364,653
General corporate	207,974			212,946
Total	$	1,369,899		$	1,452,512