12. Segment Information

As a public reporting 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.

We continually monitor our reportable segments for changes in facts and circumstances to determine whether changes in the identification or aggregation of operating segments are necessary. In the fourth quarter of fiscal 2018, we updated our reportable segments as follows: Hooker Upholstery was aggregated with Hooker Casegoods and reported as the Hooker Branded segment. The domestic upholstery operations of Shenandoah Furniture, Sam Moore and Bradington-Young were moved into All Other with the Company’s H Contract business and the remains of the Company’s Homeware division, which was shuttered earlier in fiscal 2018. The Home Meridian segment remains unchanged. Therefore, for financial reporting purposes, we are organized into two reportable segments and “All Other”, which includes the remainder of our businesses:

§	Hooker Branded, consisting of the operations of our imported Hooker Casegoods and Hooker Upholstery businesses;

§	Home Meridian, a business acquired at the beginning of fiscal 2017, is a stand-alone, mostly autonomous business that serves a different type or class of customer than do our other operating segments and at much lower margins; and

All Other, which includes the domestic upholstery manufacturing operations of Bradington-Young, Sam Moore and Shenandoah Furniture and H Contract and Homeware, two businesses started in 2013. None of these operating segments met the ASC 280 aggregation criteria nor were individually reportable; therefore, we combined them in “All Other” in accordance with ASC 280. We note that Homeware failed to reach critical mass and its operations were wound down during the fiscal 2018 second quarter.

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

	Thirteen Weeks Ended
	April 29, 2018						April 30, 2017
				% Net					% Net
Net Sales				Sales					Sales
Hooker Branded	$	42,772			29.9	%	$	37,473		28.6	%
Home Meridian		70,596			49.4	%		73,702		56.3	%
All Other		29,524			20.7	%		19,697		15.1	%
Consolidated	$	142,892			100.0	%	$	130,872		100.0	%

Gross Profit
Hooker Branded	$	14,422			33.7	%	$	12,535		33.4	%
Home Meridian		10,416			14.8	%		11,006		14.9	%
All Other		7,128			24.1	%		4,602		23.4	%
Consolidated	$	31,966			22.4	%	$	28,143		21.5	%

Operating Income
Hooker Branded	$	6,726			15.7	%	$	4,950		13.2	%
Home Meridian		(288	)		-0.4	%		846		1.1	%
All Other		2,942			10.0	%		1,443		7.3	%
Consolidated	$	9,380			6.6	%	$	7,239		5.5	%

Capital Expenditures
Hooker Branded	$	210					$	502
Home Meridian		36						302
All Other		124						63
Consolidated	$	370					$	867

Depreciation & Amortization
Hooker Branded	$	484					$	504
Home Meridian		591						655
All Other		753						200
Consolidated	$	1,828					$	1,359

	As of April 29,					As of January 28,
	2018		%Total			2018		%Total
Identifiable Assets			Assets					Assets
Hooker Branded	$	141,263		53.0	%	$	129,986		47.8	%
Home Meridian		90,076		33.8	%		107,139		39.6	%
All Other		35,334		13.2	%		34,394		12.6	%
Consolidated	$	266,673		100.0	%	$	271,519		100.0	%
Consolidated Goodwill and Intangibles		77,601					78,197
Total Consolidated Assets	$	344,274				$	349,716

Sales by product type are as follows:

	Net Sales (in thousands)
	April 29, 2018		%Total			April 30, 2017		%Total

Casegoods	$	89,492		63	%	$	88,616		68	%
Upholstery		53,400		37	%		42,256		32	%
	$	142,892				$	130,872