11. Segment Information

As a public entity, we are required to present disaggregated information by segment using the management approach. The objective of this approach is to allow users of our financial statements to see our business through the eyes of management based upon the way management reviews performance and makes decisions. The management approach requires segment information to be reported based on how management internally evaluates the operating performance of the company’s business units or segments. The objective of this approach is to meet the basic principles of segment reporting as outlined in ASC 280 Segments (“ASC 280”), which are to allow the users of our financial statements to:

§	better understand our performance;

§	better assess our prospects for future net cash flows; and

§	make more informed judgments about us as a whole.

We define our segments as those operations our chief operating decision maker (“CODM”) regularly reviews to analyze performance and allocate resources. We measure the results of our segments using, among other measures, each segment’s net sales, gross profit and operating income, as determined by the information regularly reviewed by the CODM.

For financial reporting purposes, we are organized into four operating segments:

§	Hooker Casegoods, an imported casegoods business;

§	Upholstery, which includes the domestic upholstery manufacturing operations Bradington-Young and Sam Moore and the imported upholstery operations of Hooker Upholstery;

§	All other, which includes H Contract and Homeware, two businesses started in 2013. Neither of these segments met the ASC 280 aggregation criteria nor were individually reportable; therefore, we combined them in an “All other” segment in accordance with ASC 280; and

§	Home Meridian, a business acquired at the beginning of fiscal 2017, is stand-alone, mostly autonomous business that serves a different type or class of customer than do the legacy Hooker businesses and at much lower margins.

The following table presents segment information for the periods, and as of the dates, indicated:

	Thirteen Weeks Ended
	April 30, 2017					May 1, 2016
			% Net					% Net
Net Sales			Sales					Sales
Hooker Casegoods	$	32,815		25.1	%	$	32,929		27.0	%
Upholstery		22,182		16.9	%		21,893		18.0	%
Home Meridian		73,702		56.3	%		64,976		53.3	%
All other		2,173		1.7	%		2,033		1.7	%
Intercompany eliminations		-					-
Consolidated	$	130,872		100.0	%	$	121,831		100.0	%

Gross Profit
Hooker Casegoods	$	10,872		33.1	%	$	10,154		30.8	%
Upholstery		5,623		25.3	%		5,076		23.2	%
Home Meridian		11,006		14.9	%		10,710		16.5	%
All other		640		29.4	%		656		32.3	%
Intercompany eliminations		2					3
Consolidated	$	28,143		21.5	%	$	26,599		21.8	%

Operating Income
Hooker Casegoods	$	3,929		12.0	%	$	2,081		6.3	%
Upholstery		2,294		10.3	%		1,763		8.1	%
Home Meridian		816		1.1	%		88		0.1	%
All other		67		3.1	%		67		3.3	%
Intercompany eliminations		2					2
Consolidated	$	7,108		5.4	%	$	4,001		3.3	%

Capital Expenditures
Hooker Casegoods	$	502				$	380
Upholstery		63					34
Home Meridian		302					289
All other		-					-
Consolidated	$	867				$	703

Depreciation & Amortization
Hooker Casegoods	$	504				$	536
Upholstery		198					229
Home Meridian		655					2,018
All other		2					2
Consolidated	$	1,359				$	2,785

	As of April 30,						As of January 29,
	2017			%Total			2017			%Total
Identifiable Assets				Assets						Assets
Hooker Casegoods	$	138,220			44.5	%	$	130,917			41.1	%
Upholstery		33,983			10.9	%		32,275			10.1	%
Home Meridian		137,798			44.4	%		154,954			48.6	%
All other		583			0.2	%		554			0.2	%
Intercompany eliminations		(1	)		0.0	%		(4	)
Consolidated	$	310,583			100.0	%	$	318,696			100.0	%

Sales by product type are as follows:

	Net Sales (in thousands)
	April 30, 2017		%Total			May 1, 2016		%Total

Casegoods	$	94,512		72	%	$	89,330		73	%
Upholstery		36,360		28	%		32,501		27	%
	$	130,872				$	121,831