Reportable Segment Information

6 Months Ended

Jun. 27, 2020

Segment Reporting [Abstract]

Reportable Segment Information

Reportable Segment Information

As discussed in "Note 1. Basis of Presentation", in the second quarter of 2020, the Corporation rebranded its reportable segments. These changes did not impact the Corporation's condensed consolidated financial statements. Management views the Corporation as being in two reportable segments based on industries: workplace furnishings (formerly office furniture) and residential building products (formerly hearth products), with the former being the principal segment.

The aggregated workplace furnishings 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 residential building 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				Six Months Ended
	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Net Sales:
Workplace furnishings	$	308,081	$	409,512	$	646,467	$	763,023
Residential building products	109,375		116,514		239,694		242,459
Total	$	417,456	$	526,026	$	886,161	$	1,005,482
Income (Loss) Before Income Taxes:
Workplace furnishings	$	7,785	$	18,749	$	(25,446)	$	17,018
Residential building products	14,365		13,362		35,036		30,970
General corporate	(7,308)		(8,863)		(18,476)		(21,063)
Operating income (loss)	14,842		23,248		(8,886)		26,925
Interest expense, net	1,943		2,480		3,754		4,591
Total	$	12,899	$	20,768	$	(12,640)	$	22,334
Depreciation and Amortization Expense:
Workplace furnishings	$	10,782	$	11,247	$	22,113	$	22,307
Residential building products	2,318		2,174		4,624		4,230
General corporate	6,019		5,989		11,868		11,913
Total	$	19,119	$	19,410	$	38,605	$	38,450
Capital Expenditures (including capitalized software):
Workplace furnishings	$	4,293	$	12,347	$	11,394	$	22,666
Residential building products	206		2,577		3,179		7,575
General corporate	3,118		3,587		6,203		7,366
Total	$	7,617	$	18,511	$	20,776	$	37,607
					As of June 27, 2020		As of December 28, 2019
Identifiable Assets:
Workplace furnishings					$	741,876	$	874,913
Residential building products					383,642		364,653
General corporate					189,845		212,946
Total					$	1,315,363	$	1,452,512