Business Segment Information

6 Months Ended

Jul. 02, 2016

Segment Reporting [Abstract]

Business Segment Information

Business Segment Information

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

The aggregated office furniture segment manufactures and markets a broad line of office furniture which includes storage products, desks, credenzas, chairs, tables, bookcases, classroom solutions, freestanding office partitions and panel systems and other related products.  The hearth products segment manufactures and markets a broad line of manufactured gas, electric, wood and pellet fireplaces, inserts and 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 corporate expenses include the net cost of the Corporation's corporate operations, interest income and interest expense.  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 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 for the three months and six months ended July 2, 2016 and July 4, 2015, is as follows:

	Three Months Ended						Six Months Ended
(In thousands)	July 2, 2016			July 4, 2015			July 2, 2016			July 4, 2015
Net Sales:
Office Furniture	$	428,113		$	450,624		$	815,452		$	858,053
Hearth Products	108,425			117,602			222,123			233,650
	$	536,538		$	568,226		$	1,037,575		$	1,091,703
Operating Profit:
Office furniture	$	43,367		$	39,791		$	64,667		$	59,943
Hearth products	9,954			11,162			22,515			23,663
Total operating profit	53,321			50,953			87,182			83,606
Unallocated corporate expense	(8,360		)	(13,396		)	(24,498		)	(32,529		)
Income before income taxes	$	44,961		$	37,557		$	62,684		$	51,077
Depreciation & Amortization Expense:
Office furniture	$	11,127		$	10,263		$	21,820		$	20,640
Hearth products	3,322			2,047			5,978			4,005
General corporate	1,931			1,625			3,833			3,150
	$	16,380		$	13,935		$	31,631		$	27,795
Capital Expenditures (including capitalized software):
Office furniture	$	13,580		$	11,848		$	30,048		$	26,399
Hearth products	4,459			1,993			7,012			4,397
General corporate	10,360			7,818			18,796			19,086
	$	28,399		$	21,659		$	55,856		$	49,882
	As of			As of
(In thousands)	July 2, 2016			January 2, 2016
Identifiable Assets:
Office furniture	$	804,955		$	739,915
Hearth products	356,142			341,813
General corporate	193,633			182,197
	$	1,354,730		$	1,263,925