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 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 between segments are not material, and operating profit is income before income taxes exclusive of certain unallocated 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 consolidated financial statements was as follows (in thousands):



	2018			2017			2016
Net Sales:
Office furniture	$	1,706,092		$	1,660,723		$	1,703,885
Hearth products	551,803			515,159			499,604
Total	$	2,257,895		$	2,175,882		$	2,203,489

Income Before Income Taxes:
Office furniture ^(a)	$	79,323		$	50,176		$	117,397
Hearth products ^(b)	91,367			83,649			69,960
General corporate	(42,517		)	(57,135		)	(53,665		)
Operating income	128,173			76,690			133,692
Interest expense, net	9,448			6,078			4,781
Total	$	118,725		$	70,612		$	128,911

Depreciation and Amortization Expense:
Office furniture	$	44,303		$	48,435		$	45,088
Hearth products	8,171			10,109			12,486
General corporate	22,314			14,328			11,373
Total	$	74,788		$	72,872		$	68,947

Capital Expenditures (including capitalized software):
Office furniture	$	47,860		$	79,458		$	65,944
Hearth products	8,854			17,356			11,217
General corporate	6,982			30,577			42,423
Total	$	63,696		$	127,391		$	119,584

Identifiable Assets:
Office furniture	$	797,574		$	821,767		$	749,145
Hearth products	352,060			347,189			340,494
General corporate	252,210			222,594			240,595
Total	$	1,401,844		$	1,391,550		$	1,330,234


(a)	Included in operating profit for the office furniture segment are pretax charges of $16.4 million, $32.5 million, and $10.9 million, for closing of facilities and impairment charges in 2018, 2017, and 2016, respectively.


(b)	Included in operating profit for the hearth products segment are pretax charges of $1.2 million and $4.9 million for closing facilities in 2018 and 2017, and $5.5 million related to exiting a line of business in 2016.

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



	2018		2017		2016
Systems and storage	$	1,015,900	$	1,069,518	$	1,072,518
Seating	598,722		536,501		539,839
Other	91,470		54,704		91,528
Hearth products	551,803		515,159		499,604
	$	2,257,895	$	2,175,882	$	2,203,489