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Note 15 - Segment Information | 12 Months Ended
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Jun. 30, 2015
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | (15) Segment Information Our operations are classified into two operating segments: wholesale and retail. These operating segments represent strategic business areas which, although they operate separately and provide their own distinctive services, enable us to more effectively offer our complete line of home furnishings and accents. The wholesale segment is principally involved in the development of the Ethan Allen brand, which encompasses the design, manufacture, domestic and offshore sourcing, sale and distribution of a full range of home furnishings and accents to a network of independently operated and Ethan Allen operated design centers as well as related marketing and brand awareness efforts. Wholesale revenue is generated upon the wholesale sale and shipment of our product to all retail design centers, including those operated by Ethan Allen. Wholesale profitability includes (i) the wholesale gross margin, which represents the difference between the wholesale sales price and the cost associated with manufacturing and/or sourcing the related product, and (ii) other operating costs associated with wholesale segment activities. The retail segment sells home furnishings and accents to consumers through a network of Company operated design centers. Retail revenue is generated upon the retail sale and delivery of our product to our customers. Retail profitability includes (i) the retail gross margin, which represents the difference between the retail sales price and the cost of goods purchased from the wholesale segment, and (ii) other operating costs associated with retail segment activities. Inter-segment eliminations result, primarily, from the wholesale sale of inventory to the retail segment, including the related profit margin. We evaluate performance of the respective segments based upon revenues and operating income. While the manner in which our home furnishings and accents are marketed and sold is consistent, the nature of the underlying recorded sales (i.e. wholesale versus retail) and the specific services that each operating segment provides (i.e. wholesale manufacturing, sourcing, and distribution versus retail selling) are different. Within the wholesale segment, we maintain revenue information according to each respective product line (i.e. case goods, upholstery, or home accents and other). The allocation of retail sales by product line generally follows that of the wholesale segment (see the product line table below). A breakdown of wholesale sales by product line for each of the last three fiscal years ended June 30 is provided below:
|  | Fiscal Year Ended June 30, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Case Goods |  |  | 34 | % |  |  | 36 | % |  |  | 37 | %
Upholstered Products |  |  | 48 | % |  |  | 48 | % |  |  | 48 | %
Home Accessories and Other |  |  | 18 | % |  |  | 16 | % |  |  | 15 | %
|  |  | 100 | % |  |  | 100 | % |  |  | 100 | %
Information for each of the last three fiscal years ended June 30 is provided below (in thousands):
|  | 2015 |  |  | 2014 |  |  | 2013 |
Net sales: |  |  |  |  |  |  |  |  |  |  |  |
Wholesale segment |  | $ | 469,384 |  |  | $ | 453,607 |  |  | $ | 434,439 |
Retail segment |  |  | 579,713 |  |  |  | 580,739 |  |  |  | 578,284 |
Elimination of inter-company sales |  |  | (294,497 | ) |  |  | (287,687 | ) |  |  | (283,640 | )
Consolidated Total |  | $ | 754,600 |  |  | $ | 746,659 |  |  | $ | 729,083 |
Operating income (loss): |  |  |  |  |  |  |  |  |  |  |  |
Wholesale segment |  | $ | 66,988 |  |  | $ | 57,816 |  |  | $ | 50,843 |
Retail segment |  |  | 1,726 |  |  |  | 10,515 |  |  |  | 8,016 |
Adjustment of inter-company profit (1) |  |  | (2,780 | ) |  |  | 1,305 |  |  |  | 1,578 |
Consolidated Total |  | $ | 65,934 |  |  | $ | 69,636 |  |  | $ | 60,437 |
Depreciation & Amortization: |  |  |  |  |  |  |  |  |  |  |  |
Wholesale segment |  | $ | 8,044 |  |  | $ | 7,887 |  |  | $ | 8,166 |
Retail segment |  |  | 11,098 |  |  |  | 10,043 |  |  |  | 9,842 |
Consolidated Total |  | $ | 19,142 |  |  | $ | 17,930 |  |  | $ | 18,008 |
Capital expenditures: |  |  |  |  |  |  |  |  |  |  |  |
Wholesale segment |  | $ | 9,427 |  |  | $ | 11,013 |  |  | $ | 7,024 |
Retail segment |  |  | 10,360 |  |  |  | 8,292 |  |  |  | 11,981 |
Acquisitions |  |  | 1,991 |  |  |  | - |  |  |  | 770 |
Consolidated Total |  | $ | 21,778 |  |  | $ | 19,305 |  |  | $ | 19,775 |
|  | June 30 |  |  | June 30 |  |  | June 30 |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Total Assets: |  |  |  |  |  |  |  |  |  |  |  |
Wholesale segment |  | $ | 297,280 |  |  | $ | 339,271 |  |  | $ | 291,942 |
Retail segment |  |  | 341,886 |  |  |  | 344,025 |  |  |  | 355,233 |
Inventory profit elimination (2) |  |  | (31,858 | ) |  |  | (28,862 | ) |  |  | (29,890 | )
Consolidated Total |  | $ | 607,308 |  |  | $ | 654,434 |  |  | $ | 617,285 |
(1) Represents the change in wholesale profit contained in Ethan Allen design center inventory at the end of the period. (2) The wholesale profit contained in the retail segment inventory that has not yet been realized. These profits are realized when the related inventory is sold. Our international net sales are comprised of our wholesale segment sales to independent retailers and our retail segment sales to consumers through the Company operated design centers. The number of international design centers, and the related net sales as a percent of our consolidated net sales is shown in the following table.
|  | Fiscal Year Ended June 30, |
|  | 2015 |  |  | 2014 |  |  | 2013 |
Independent design centers |  |  | 97 |  |  |  | 91 |  |  |  | 86 |
Company operated design centers |  |  | 7 |  |  |  | 8 |  |  |  | 8 |
Total international design centers |  |  | 104 |  |  |  | 99 |  |  |  | 94 |
Percentage of consolidated net sales |  |  | 11.6 | % |  |  | 10.6 | % |  |  | 8.9 | %

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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