Reportable 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 segment.

The aggregated office furniture segment manufactures and markets a broad line of metal and wood commercial and home office furniture which includes storage products, desks, credenzas, chairs, tables, bookcases, freestanding office partitions and panel systems, and other related products. The hearth products segment manufactures and markets a broad line of gas, electric, wood, and biomass burning fireplaces, inserts, stoves, facings, and accessories, principally for the home.

For purposes of segment reporting, intercompany sales transfers 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 costs 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 consolidated financial statements was as follows for continuing operations (in thousands):



	2017			2016			2015
Net Sales:
Office furniture	$	1,660,723		$	1,703,885		$	1,777,804
Hearth products	515,159			499,604			526,615
Total	$	2,175,882		$	2,203,489		$	2,304,419

Income Before Income Taxes:
Office furniture ^(a)	$	50,176		$	117,397		$	136,593
Hearth products ^(b)	83,649			69,960			78,162
General corporate	(63,213		)	(58,446		)	(57,585		)
Total	$	70,612		$	128,911		$	157,170

Depreciation and Amortization Expense:
Office furniture	$	48,435		$	45,088		$	42,415
Hearth products	10,109			12,486			8,430
General corporate	14,328			11,373			6,719
Total	$	72,872		$	68,947		$	57,564

Capital Expenditures (including capitalized software):
Office furniture	$	79,458		$	65,944		$	64,850
Hearth products	17,356			11,217			11,078
General corporate	30,577			42,423			39,038
Total	$	127,391		$	119,584		$	114,966

Identifiable Assets:
Office furniture	$	821,767		$	749,145		$	739,915
Hearth products	347,189			340,494			341,813
General corporate	222,594			240,595			182,197
Total	$	1,391,550		$	1,330,234		$	1,263,925


(a)	Included in operating profit for the office furniture segment are pretax charges of $32.5 million, $10.9 million, and $11.6 million, for closing of facilities and impairment charges in 2017, 2016, and 2015, respectively.


(b)	Included in operating profit for the hearth products segment are pretax charges of $4.9 million and $5.5 million for closing facilities in 2017 and 2016, and $0.9 million related to exiting a line of business in 2015.

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



	2017		2016		2015
Systems and storage	$	1,069,518	$	1,072,518	$	1,140,369
Seating	536,501		539,839		561,392
Other	54,704		91,528		76,043
Hearth products	515,159		499,604		526,615
	$	2,175,882	$	2,203,489	$	2,304,419