| Segment Reporting Disclosure [Text Block] |
13. Segment Information
Beginning with the three months ended February 25, 2023, we have strategically aligned our business into three reportable segments as defined in ASC 280, Segment Reporting, and as described below:
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Wholesale. The wholesale home furnishings segment is involved principally in the design, manufacture, sourcing, sale and distribution of furniture products to a network of Bassett stores (Company-owned and licensee-owned retail stores) and independent furniture retailers. Our wholesale segment includes our wood and upholstery operations, which includes Lane Venture.
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Retail – Company-owned stores. Our retail segment consists of Company-owned stores and includes the revenues, expenses, assets and liabilities and capital expenditures directly related to these stores and the Company-owned distribution network utilized to deliver products to our retail customers.
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Corporate and other – Corporate and other includes the shared costs of corporate functions such as treasury and finance, information technology, accounting, human resources, legal and others, including certain product development and marketing functions benefitting both wholesale and retail operations. In addition to property and equipment and various other assets associated with the shared corporate functions, the identifiable assets of Corporate and other include substantially all of our cash and our investments in CDs. We consider our corporate functions to be other business activities and have aggregated them with our other insignificant operating segment, the recently acquired Noa Home (see Note 3).
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Inter-company net sales elimination represents the elimination of wholesale sales to our Company-owned stores. Inter-company income elimination includes the embedded wholesale profit in the Company-owned store inventory that has not been realized. These profits will be recorded when merchandise is delivered to the retail consumer. The inter-company income elimination also includes rent paid by our retail stores occupying Company-owned real estate.
Prior to the current period, the functions included in Corporate and other were included in our wholesale segment reportable segment, and Noa Home was included in our retail reportable segment for the fourth quarter of fiscal 2022 following its acquisition on September 2, 2022. We believe that the new alignment of our reporting segments provides our chief operating decision maker with clearer information with which to assess the operating results of our wholesale segment. Noa Home does not meet the requirements to be a separate reportable segment as it is below the thresholds of the revenue, income and asset tests. The segment information presented below for the three months ended February 26, 2022 and as of November 26, 2022 has been restated to reflect the new alignment of our reportable segments.
Our former logistical services segment which represented the operations of Zenith is now presented as a discontinued operation in the accompanying condensed consolidated balances sheets and statements of income (see Note 12).
The following table presents our segment information:
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Quarter Ended
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February 25, 2023
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February 26, 2022
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| Sales Revenue |
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Wholesale sales of furniture and accessories
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$ |
69,884 |
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$ |
83,485 |
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Less: Sales to retail segment
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(30,099 |
) |
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(29,728 |
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Wholesale sales to external customers
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39,785 |
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53,757 |
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Retail sales of furniture and accessories
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64,962 |
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64,107 |
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Corporate and other
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2,951 |
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- |
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Consolidated net sales of furniture and accessories
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$ |
107,698 |
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$ |
117,864 |
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| Income from Operations |
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Wholesale
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$ |
8,994 |
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$ |
10,202 |
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Retail - Company-owned stores
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1,530 |
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2,622 |
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Net expenses - Corporate and other
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(7,771 |
) |
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(6,245 |
) |
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Inter-company elimination
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(51 |
) |
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(101 |
) |
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Consolidated
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$ |
2,702 |
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$ |
6,478 |
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| Depreciation and Amortization |
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Wholesale
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$ |
606 |
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$ |
570 |
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Retail - Company-owned stores
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1,299 |
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1,495 |
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Corporate and other
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|
435 |
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|
324 |
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Consolidated
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$ |
2,340 |
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$ |
2,389 |
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| Capital Expenditures |
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Wholesale
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$ |
637 |
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$ |
1,103 |
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Retail - Company-owned stores
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1,282 |
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|
116 |
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Corporate and other
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1,422 |
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1,124 |
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Consolidated
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$ |
3,341 |
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$ |
2,343 |
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As of
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As of
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Identifiable Assets
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February 25, 2023
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November 26, 2022
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Wholesale
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$ |
116,694 |
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$ |
125,433 |
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Retail - Company-owned stores
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162,232 |
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162,222 |
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Corporate and other
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112,691 |
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118,618 |
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Consolidated
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$ |
391,617 |
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$ |
406,273 |
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See Note 14, Revenue Recognition, for disaggregated revenue information regarding sales of furniture and accessories by product type for the wholesale and retail segments.
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