Bassett Furniture Industries, Incorporated
Annual Report 2020

Bassett, Virginia

NASDAQ : BSET

Annual Report
2020

A dedication to our craft.

In 2020, we expanded Made in 

America Bench Made dining 

with new styles, finishes and 

fabrics. The launch led to a 

rebranding of Bench Made with 

a new modern look to appeal  

to a broader audience. 

BOARD OF DIRECTORS

ROBERT H. SPILMAN, JR.

Chairman of the Board and Chief Executive Officer

Bassett Furniture Industries, Inc.

VIRGINIA W. HAMLET

Founder and Owner

Hamlet Vineyards, LLC

Former President and Chief Operating Officer 

EMMA S. BATTLE

Chief Executive Officer

Market Vigor, LLC

JOHN R. BELK

Belk, Inc.

Private Investor

KRISTINA K. CASHMAN

Former Chief Financial Officer

Upward Projects, LLC

OFFICERS

ROBERT H. SPILMAN, JR.

J. WALTER MCDOWELL

Former Chief Executive Officer

Carolinas/Virginia Banking 

Wachovia Corporation 

WILLIAM C. WAMPLER, JR.

Managing Member, WTX, LLC

Former Member, Senate of Virginia

WILLIAM C. WARDEN, JR.

Lead Independent Director of Bassett Furniture Industries, Inc.

Former Executive Vice President

Lowe’s Companies, Inc.

Chairman of the Board and Chief Executive Officer

Vice President, Chief Information Officer

BRIAN W. CLASPELL

DAVID C. BAKER

NICHOLAS C. GEE

Senior Vice President, Chief Retail Officer

Vice President, Corporate Retail Sales

JOHN E. BASSETT, III

DRURY E. INGRAM

Senior Vice President, Chief Operations Officer

Vice President, Corporate Controller

BRUCE R. COHENOUR

Senior Vice President, Chief Sales Officer

MATTHEW S. JOHNSON

Vice President, Sales

J. MICHAEL DANIEL

MIKE R. KREIDLER

Senior Vice President, Chief Financial & Administrative 

Vice President, Upholstery

Officer

JACK L. HAWN, JR.

Senior Vice President, Bassett

President, Zenith

KARA KELCHNER-STRONG

BETH A. LARSON

Vice President, Upholstery Finance & Administration

PETER D. MORRISON

Vice President, Chief Creative Officer

Senior Vice President, Customer Experience Officer

LOUIS C. MOSSOTTI, JR.

Vice President, Corporate Retail – Southeast Region

JAY R. HERVEY

Vice President, Secretary, General Counsel

EDWIN C. AVERY, JR.

Vice President, Upholstery Product Development

J. CARTER UNDERWOOD

Vice President, Wood Operations

EDWARD H. WHITE

Vice President, Human Resources

Cover: Rosa sews covers for motion upholstery in Newton, 
N.C.  Bassett is grateful to all the dedicated employees who 
have worked through a difficult year while maintaining our 
Company’s high standards of quality and service. 

  
 
 
 
Financial Summary

Fiscal years ended November

2020

2019

2018

2017

2016

INCOME STATEMENT DATA

Net Sales
Income (loss) From Operations
Adjusted  Income (loss) From Operations
Net Income (loss)
Adjusted Net Income

$385,863
(16,223)
(1,018)
(10,421)
1,235

$452,087
(595)
7,446
(1,928)
4,560

$456,855
14,084
14,854
8,218
10,119

$452,503
27,018
26,297
18,256
15,826

$432,038 
28,193
28,193
15,829
15,680

PER SHARE DATA

Diluted Income (loss)
Adjusted Diluted Income
Cash Dividends
Book Value

BALANCE SHEET DATA

Cash & Cash Equivalents
Investments
Total Assets
Long-Term Debt
Stockholders’ Equity

 $    (1.05)

0.12
0.455
15.89 

$     (0.19)
0.44  
            0.  50
           17.66

$     0.77
0.95
0.47
18.08

$     1.70
1.47
0.77
17.83

$     1.46
1.44
0.68
16.85

$  45,799
17,715
402,548
—
158,030

$  19,687
17,436
275,766
—
178,670

$  33,468
22,643
291,641
—
190,309

$  53,949
23,125
293,748
329
191,460

$  35,144
23,125
278,267
3,821
180,705

Dollars in thousands except per share amounts

 
 
 
 
TO OUR SHAREHOLDERS

(cid:31)(cid:30)(cid:29)(cid:28)(cid:29)(cid:30)(cid:27)(cid:26)(cid:29)(cid:25)(cid:24)(cid:23)(cid:22)(cid:29)(cid:26)(cid:24)(cid:29)(cid:23)(cid:21)(cid:27)(cid:26)(cid:20)(cid:29)(cid:26)(cid:19)(cid:27)(cid:30)(cid:29)(cid:18)(cid:22)(cid:22)(cid:17)(cid:18)(cid:16)(cid:29)(cid:16)(cid:20)(cid:26)(cid:26)(cid:20)(cid:21)(cid:29)(cid:26)(cid:24)(cid:29)(cid:15)(cid:19)(cid:18)(cid:21)(cid:20)(cid:19)(cid:24)(cid:16)(cid:25)(cid:20)(cid:21)(cid:30)(cid:29)(cid:27)(cid:22)(cid:29)(cid:16)(cid:18)(cid:26)(cid:20)(cid:29)(cid:14)(cid:18)(cid:22)(cid:17)(cid:18)(cid:21)(cid:13)(cid:12)(cid:29)(cid:28)(cid:29)(cid:21)(cid:20)(cid:11)(cid:20)(cid:10)(cid:26)(cid:29)

(cid:17)(cid:9)(cid:24)(cid:22)(cid:29)(cid:18)(cid:29)(cid:13)(cid:20)(cid:18)(cid:21)(cid:29)(cid:26)(cid:19)(cid:18)(cid:26)(cid:29)(cid:22)(cid:24)(cid:29)(cid:24)(cid:22)(cid:20)(cid:29)(cid:10)(cid:24)(cid:17)(cid:16)(cid:25)(cid:29)(cid:19)(cid:18)(cid:8)(cid:20)(cid:29)(cid:27)(cid:7)(cid:18)(cid:6)(cid:27)(cid:22)(cid:20)(cid:25)(cid:5)(cid:29)(cid:29)(cid:4)(cid:24)(cid:21)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:7)(cid:24)(cid:30)(cid:26)(cid:29)(cid:9)(cid:18)(cid:21)(cid:26)(cid:12)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:3)(cid:17)(cid:21)(cid:22)(cid:27)(cid:26)(cid:17)(cid:21)(cid:20)(cid:29)

(cid:27)(cid:22)(cid:25)(cid:17)(cid:30)(cid:26)(cid:21)(cid:13)(cid:29)(cid:25)(cid:20)(cid:18)(cid:16)(cid:26)(cid:29)(cid:23)(cid:27)(cid:26)(cid:19)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:6)(cid:13)(cid:21)(cid:18)(cid:26)(cid:27)(cid:24)(cid:22)(cid:30)(cid:29)(cid:24)(cid:3)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:2)(cid:1)(cid:2)(cid:1)(cid:29)(cid:127)(cid:24)(cid:8)(cid:27)(cid:25)(cid:129)(cid:141)(cid:143)(cid:29)(cid:10)(cid:21)(cid:27)(cid:30)(cid:27)(cid:30)(cid:29)(cid:18)(cid:25)(cid:7)(cid:27)(cid:21)(cid:18)(cid:144)(cid:16)(cid:13)(cid:12)(cid:29)(cid:18)(cid:22)(cid:25)(cid:29)

(cid:157)(cid:18)(cid:30)(cid:30)(cid:20)(cid:26)(cid:26)(cid:29)(cid:23)(cid:18)(cid:30)(cid:29)(cid:22)(cid:24)(cid:29)(cid:20) (cid:10)(cid:20)(cid:9)(cid:26)(cid:27)(cid:24)(cid:22)(cid:5)(cid:29)(cid:29)(cid:31)(cid:16)(cid:26)(cid:19)(cid:24)(cid:17)(cid:6)(cid:19)(cid:29)(cid:7)(cid:18)(cid:22)(cid:13)(cid:29)(cid:30)(cid:7)(cid:18)(cid:16)(cid:16)(cid:20)(cid:21)(cid:29)(cid:10)(cid:24)(cid:7)(cid:9)(cid:18)(cid:22)(cid:27)(cid:20)(cid:30)(cid:29)(cid:27)(cid:22)(cid:29)(cid:24)(cid:17)(cid:21)(cid:29)(cid:27)(cid:22)(cid:25)(cid:17)(cid:30)(cid:26)(cid:21)(cid:13)(cid:29)

(cid:23)(cid:20)(cid:21)(cid:20)(cid:29)(cid:18)(cid:144)(cid:16)(cid:20)(cid:29)(cid:26)(cid:24)(cid:29)(cid:18)(cid:10)(cid:10)(cid:20)(cid:30)(cid:30)(cid:29)(cid:3)(cid:24)(cid:21)(cid:6)(cid:27)(cid:8)(cid:18)(cid:144)(cid:16)(cid:20)(cid:29)(cid:6)(cid:24)(cid:8)(cid:20)(cid:21)(cid:22)(cid:7)(cid:20)(cid:22)(cid:26)(cid:29)(cid:30)(cid:9)(cid:24)(cid:22)(cid:30)(cid:24)(cid:21)(cid:20)(cid:25)(cid:29)(cid:16)(cid:24)(cid:18)(cid:22)(cid:30)(cid:29)(cid:26)(cid:19)(cid:21)(cid:24)(cid:17)(cid:6)(cid:19)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:127)(cid:31) €(cid:15)(cid:29)

(cid:31)(cid:10)(cid:26)(cid:12)(cid:29)(cid:157)(cid:18)(cid:30)(cid:30)(cid:20)(cid:26)(cid:26)(cid:29)(cid:25)(cid:27)(cid:25)(cid:29)(cid:22)(cid:24)(cid:26)(cid:29)‚(cid:17)(cid:18)(cid:16)(cid:27)(cid:3)(cid:13)(cid:5)(cid:29)(cid:29)ƒ(cid:27)(cid:26)(cid:19)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:30)(cid:17)(cid:21)(cid:8)(cid:27)(cid:8)(cid:18)(cid:16)(cid:29)(cid:24)(cid:3)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:127)(cid:24)(cid:7)(cid:9)(cid:18)(cid:22)(cid:13)(cid:29)(cid:24)(cid:22)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:16)(cid:27)(cid:22)(cid:20)(cid:12)(cid:29)(cid:24)(cid:17)(cid:21)(cid:29)

(cid:18)(cid:30)(cid:30)(cid:24)(cid:10)(cid:27)(cid:18)(cid:26)(cid:20)(cid:30)(cid:29) (cid:21)(cid:20)(cid:30)(cid:9)(cid:24)(cid:22)(cid:25)(cid:20)(cid:25)(cid:29) (cid:144)(cid:13)(cid:29) (cid:7)(cid:18)„(cid:27)(cid:22)(cid:6)(cid:29) (cid:26)(cid:19)(cid:20)(cid:29) (cid:22)(cid:20)(cid:10)(cid:20)(cid:30)(cid:30)(cid:18)(cid:21)(cid:13)(cid:29) (cid:30)(cid:18)(cid:10)(cid:21)(cid:27)…(cid:10)(cid:20)(cid:30)(cid:29) (cid:26)(cid:19)(cid:18)(cid:26)(cid:29) (cid:9)(cid:17)(cid:16)(cid:16)(cid:20)(cid:25)(cid:29) (cid:157)(cid:18)(cid:30)(cid:30)(cid:20)(cid:26)(cid:26)(cid:29)

(cid:26)(cid:19)(cid:21)(cid:24)(cid:17)(cid:6)(cid:19)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:25)(cid:18)(cid:21)„(cid:29)(cid:25)(cid:18)(cid:13)(cid:30)(cid:29)(cid:24)(cid:3)(cid:29)(cid:30)(cid:9)(cid:21)(cid:27)(cid:22)(cid:6)(cid:5)(cid:29)(cid:29)†(cid:17)(cid:22)(cid:25)(cid:21)(cid:20)(cid:25)(cid:30)(cid:29)(cid:24)(cid:3)(cid:29)(cid:20)(cid:7)(cid:9)(cid:16)(cid:24)(cid:13)(cid:20)(cid:20)(cid:30)(cid:29)(cid:23)(cid:20)(cid:21)(cid:20)(cid:29)(cid:3)(cid:17)(cid:21)(cid:16)(cid:24)(cid:17)(cid:6)(cid:19)(cid:20)(cid:25)(cid:29)(cid:18)(cid:30)(cid:29)

(cid:23)(cid:20)(cid:29)(cid:23)(cid:20)(cid:21)(cid:20)(cid:29)(cid:3)(cid:24)(cid:21)(cid:10)(cid:20)(cid:25)(cid:29)(cid:26)(cid:24)(cid:29)(cid:30)(cid:17)(cid:30)(cid:9)(cid:20)(cid:22)(cid:25)(cid:29)(cid:30)(cid:26)(cid:24)(cid:21)(cid:20)(cid:29)(cid:18)(cid:22)(cid:25)(cid:29)(cid:3)(cid:18)(cid:10)(cid:26)(cid:24)(cid:21)(cid:13)(cid:29)(cid:24)(cid:9)(cid:20)(cid:21)(cid:18)(cid:26)(cid:27)(cid:24)(cid:22)(cid:30)(cid:29)(cid:3)(cid:21)(cid:24)(cid:7)(cid:29)(cid:3)(cid:24)(cid:17)(cid:21)(cid:29)(cid:26)(cid:24)(cid:29)(cid:26)(cid:20)(cid:22)(cid:29)(cid:23)(cid:20)(cid:20)„(cid:30)(cid:29)

(cid:25)(cid:20)(cid:9)(cid:20)(cid:22)(cid:25)(cid:27)(cid:22)(cid:6)(cid:29)(cid:24)(cid:22)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:10)(cid:27)(cid:21)(cid:10)(cid:17)(cid:7)(cid:30)(cid:26)(cid:18)(cid:22)(cid:10)(cid:20)(cid:5)(cid:29)(cid:29)‡(cid:18)(cid:22)(cid:25)(cid:18)(cid:26)(cid:24)(cid:21)(cid:13)(cid:29)(cid:30)(cid:18)(cid:16)(cid:18)(cid:21)(cid:13)(cid:29)(cid:10)(cid:17)(cid:26)(cid:30)(cid:29)(cid:24)(cid:3)(cid:29)(cid:18)(cid:26)(cid:29)(cid:16)(cid:20)(cid:18)(cid:30)(cid:26)(cid:29)(cid:2)(cid:1)ˆ(cid:29)(cid:23)(cid:20)(cid:21)(cid:20)(cid:29)(cid:27)(cid:7)(cid:129)

(cid:9)(cid:16)(cid:20)(cid:7)(cid:20)(cid:22)(cid:26)(cid:20)(cid:25)(cid:12)(cid:29)(cid:23)(cid:19)(cid:27)(cid:16)(cid:20)(cid:29)(cid:24)(cid:26)(cid:19)(cid:20)(cid:21)(cid:30)(cid:29)(cid:23)(cid:20)(cid:21)(cid:20)(cid:29)(cid:10)(cid:17)(cid:26)(cid:29)(cid:144)(cid:13)(cid:29)(cid:18)(cid:30)(cid:29)(cid:7)(cid:17)(cid:10)(cid:19)(cid:29)(cid:18)(cid:30)(cid:29)‰(cid:1)ˆŠ(cid:29)(cid:30)(cid:20)(cid:8)(cid:20)(cid:21)(cid:18)(cid:16)(cid:29)(cid:24)(cid:3)(cid:29)(cid:26)(cid:19)(cid:24)(cid:30)(cid:20)(cid:29)(cid:26)(cid:19)(cid:21)(cid:24)(cid:17)(cid:6)(cid:19)(cid:29)

(cid:20)(cid:7)(cid:9)(cid:16)(cid:24)(cid:13)(cid:20)(cid:20)(cid:30)(cid:29)(cid:8)(cid:24)(cid:16)(cid:17)(cid:22)(cid:26)(cid:20)(cid:20)(cid:21)(cid:27)(cid:22)(cid:6)(cid:29)(cid:26)(cid:24)(cid:29)(cid:26)(cid:18)„(cid:20)(cid:29)(cid:7)(cid:24)(cid:21)(cid:20)(cid:29)(cid:26)(cid:19)(cid:18)(cid:22)(cid:29)(cid:21)(cid:20)‚(cid:17)(cid:27)(cid:21)(cid:20)(cid:25)(cid:5)(cid:29)(cid:29)‹(cid:16)(cid:26)(cid:27)(cid:7)(cid:18)(cid:26)(cid:20)(cid:16)(cid:13)(cid:12)(cid:29)(cid:23)(cid:20)(cid:29)(cid:10)(cid:18)(cid:7)(cid:20)(cid:29)(cid:144)(cid:18)(cid:10)„(cid:29)

(cid:26)(cid:24)(cid:29)(cid:23)(cid:24)(cid:21)„(cid:12)(cid:29)(cid:144)(cid:17)(cid:26)(cid:29)(cid:23)(cid:27)(cid:26)(cid:19)(cid:29)(cid:18)(cid:22)(cid:29)(cid:20)(cid:7)(cid:9)(cid:16)(cid:24)(cid:13)(cid:20)(cid:20)(cid:29)(cid:19)(cid:20)(cid:18)(cid:25)(cid:10)(cid:24)(cid:17)(cid:22)(cid:26)(cid:29)(cid:26)(cid:19)(cid:18)(cid:26)(cid:29)(cid:26)(cid:24)(cid:25)(cid:18)(cid:13)(cid:29)(cid:27)(cid:30)(cid:29)(cid:18)(cid:9)(cid:9)(cid:21)(cid:24) (cid:27)(cid:7)(cid:18)(cid:26)(cid:20)(cid:16)(cid:13)(cid:29)Œ‰ˆ(cid:29)(cid:24)(cid:3)(cid:29)

(cid:23)(cid:19)(cid:18)(cid:26)(cid:29)(cid:27)(cid:26)(cid:29)(cid:23)(cid:18)(cid:30)(cid:29)(cid:18)(cid:29)(cid:13)(cid:20)(cid:18)(cid:21)(cid:29)(cid:18)(cid:6)(cid:24)(cid:5)(cid:29)(cid:29)(cid:28)(cid:29)(cid:18)(cid:7)(cid:29)(cid:8)(cid:20)(cid:21)(cid:13)(cid:29)(cid:9)(cid:21)(cid:24)(cid:17)(cid:25)(cid:29)(cid:26)(cid:24)(cid:29)(cid:144)(cid:20)(cid:29)(cid:9)(cid:18)(cid:21)(cid:26)(cid:29)(cid:24)(cid:3)(cid:29)(cid:18)(cid:22)(cid:29)(cid:24)(cid:21)(cid:6)(cid:18)(cid:22)(cid:27)Ž(cid:18)(cid:26)(cid:27)(cid:24)(cid:22)(cid:29)(cid:7)(cid:18)(cid:25)(cid:20)(cid:29)(cid:17)(cid:9)(cid:29)

(cid:24)(cid:3)(cid:29)(cid:27)(cid:22)(cid:25)(cid:27)(cid:8)(cid:27)(cid:25)(cid:17)(cid:18)(cid:16)(cid:30)(cid:29)(cid:26)(cid:19)(cid:18)(cid:26)(cid:29)(cid:18)(cid:21)(cid:20)(cid:29)(cid:23)(cid:27)(cid:16)(cid:16)(cid:27)(cid:22)(cid:6)(cid:29)(cid:26)(cid:24)(cid:29)‘(cid:25)(cid:24)(cid:29)(cid:23)(cid:19)(cid:18)(cid:26)(cid:29)(cid:27)(cid:26)(cid:29)(cid:26)(cid:18)„(cid:20)(cid:30)’(cid:29)(cid:3)(cid:24)(cid:21)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:10)(cid:24)(cid:16)(cid:16)(cid:20)(cid:10)(cid:26)(cid:27)(cid:8)(cid:20)(cid:29)(cid:6)(cid:24)(cid:24)(cid:25)(cid:29)(cid:23)(cid:19)(cid:20)(cid:22)(cid:29)

(cid:26)(cid:19)(cid:20)(cid:29)(cid:10)(cid:19)(cid:27)(cid:9)(cid:30)(cid:29)(cid:18)(cid:21)(cid:20)(cid:29)(cid:25)(cid:24)(cid:23)(cid:22)(cid:5)

(cid:127)(cid:24)(cid:7)(cid:9)(cid:16)(cid:20)(cid:26)(cid:20)(cid:16)(cid:13)(cid:29)(cid:17)(cid:22)(cid:3)(cid:24)(cid:21)(cid:20)(cid:30)(cid:20)(cid:20)(cid:22)(cid:29)(cid:18)“(cid:20)(cid:21)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:24)(cid:17)(cid:26)(cid:144)(cid:21)(cid:20)(cid:18)„(cid:29)(cid:24)(cid:3)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:8)(cid:27)(cid:21)(cid:17)(cid:30)(cid:29)(cid:23)(cid:18)(cid:30)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:21)(cid:18)(cid:9)(cid:27)(cid:25)(cid:29)(cid:30)(cid:19)(cid:27)“(cid:29)(cid:24)(cid:3)(cid:29)(cid:7)(cid:27)(cid:16)(cid:129)

(cid:16)(cid:27)(cid:24)(cid:22)(cid:30)(cid:29)(cid:24)(cid:3)(cid:29)(cid:25)(cid:24)(cid:16)(cid:16)(cid:18)(cid:21)(cid:30)(cid:29)(cid:18)(cid:23)(cid:18)(cid:13)(cid:29)(cid:3)(cid:21)(cid:24)(cid:7)(cid:29)(cid:25)(cid:27)(cid:30)(cid:10)(cid:21)(cid:20)(cid:26)(cid:27)(cid:24)(cid:22)(cid:18)(cid:21)(cid:13)(cid:29)(cid:26)(cid:21)(cid:18)(cid:8)(cid:20)(cid:16)(cid:29)(cid:18)(cid:22)(cid:25)(cid:29)(cid:25)(cid:27)(cid:22)(cid:27)(cid:22)(cid:6)(cid:29)(cid:26)(cid:24)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:7)(cid:24)(cid:21)(cid:20)(cid:29)(cid:30)(cid:20)(cid:25)(cid:20)(cid:22)(cid:129)

(cid:26)(cid:18)(cid:21)(cid:13)(cid:29)(cid:9)(cid:16)(cid:20)(cid:18)(cid:30)(cid:17)(cid:21)(cid:20)(cid:30)(cid:29)(cid:24)(cid:3)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:19)(cid:24)(cid:7)(cid:20)(cid:5)(cid:29)(cid:29)(cid:15)(cid:26)(cid:18)(cid:21)(cid:26)(cid:27)(cid:22)(cid:6)(cid:29)(cid:18)(cid:21)(cid:24)(cid:17)(cid:22)(cid:25)(cid:29)‡(cid:20)(cid:7)(cid:24)(cid:21)(cid:27)(cid:18)(cid:16)(cid:29)”(cid:18)(cid:13)(cid:29)(cid:23)(cid:20)(cid:20)„(cid:20)(cid:22)(cid:25)(cid:12)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:9)(cid:18)(cid:10)(cid:20)(cid:29)

(cid:24)(cid:3)(cid:29)(cid:27)(cid:22)(cid:10)(cid:24)(cid:7)(cid:27)(cid:22)(cid:6)(cid:29)(cid:23)(cid:19)(cid:24)(cid:16)(cid:20)(cid:30)(cid:18)(cid:16)(cid:20)(cid:29)(cid:24)(cid:21)(cid:25)(cid:20)(cid:21)(cid:30)(cid:29)(cid:19)(cid:18)(cid:30)(cid:29)(cid:144)(cid:24)(cid:24)(cid:7)(cid:20)(cid:25)(cid:5)(cid:29)(cid:29)ƒ(cid:20)(cid:29)…(cid:22)(cid:27)(cid:30)(cid:19)(cid:20)(cid:25)(cid:29)(cid:2)(cid:1)(cid:2)(cid:1)(cid:29)(cid:23)(cid:27)(cid:26)(cid:19)(cid:29)(cid:18)(cid:22)(cid:29)(cid:24)(cid:21)(cid:25)(cid:20)(cid:21)(cid:29)

(cid:144)(cid:18)(cid:10)„(cid:16)(cid:24)(cid:6)(cid:29)(cid:26)(cid:19)(cid:18)(cid:26)(cid:29)(cid:23)(cid:18)(cid:30)(cid:29)(cid:18)(cid:16)(cid:7)(cid:24)(cid:30)(cid:26)(cid:29)(cid:26)(cid:19)(cid:21)(cid:20)(cid:20)(cid:29)(cid:26)(cid:27)(cid:7)(cid:20)(cid:30)(cid:29)(cid:18)(cid:30)(cid:29)(cid:16)(cid:18)(cid:21)(cid:6)(cid:20)(cid:29)(cid:18)(cid:30)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:13)(cid:20)(cid:18)(cid:21)(cid:129)(cid:20)(cid:22)(cid:25)(cid:29)(cid:144)(cid:18)(cid:10)„(cid:16)(cid:24)(cid:6)(cid:29)(cid:24)(cid:3)(cid:29)(cid:2)(cid:1)(cid:141)(cid:143)(cid:5)(cid:29)(cid:29)

•(cid:19)(cid:27)(cid:30)(cid:29)(cid:25)(cid:13)(cid:22)(cid:18)(cid:7)(cid:27)(cid:10)(cid:29)(cid:19)(cid:18)(cid:30)(cid:29)(cid:144)(cid:21)(cid:24)(cid:17)(cid:6)(cid:19)(cid:26)(cid:29)(cid:27)(cid:26)(cid:30)(cid:29)(cid:24)(cid:23)(cid:22)(cid:29)(cid:30)(cid:20)(cid:26)(cid:29)(cid:24)(cid:3)(cid:29)(cid:10)(cid:19)(cid:18)(cid:16)(cid:16)(cid:20)(cid:22)(cid:6)(cid:20)(cid:30)(cid:29)(cid:18)(cid:30)(cid:29)(cid:6)(cid:16)(cid:24)(cid:144)(cid:18)(cid:16)(cid:29)(cid:7)(cid:18)(cid:22)(cid:17)(cid:3)(cid:18)(cid:10)(cid:26)(cid:17)(cid:21)(cid:27)(cid:22)(cid:6)(cid:29)

(cid:18)(cid:22)(cid:25)(cid:29)(cid:16)(cid:24)(cid:6)(cid:27)(cid:30)(cid:26)(cid:27)(cid:10)(cid:30)(cid:29)(cid:10)(cid:18)(cid:9)(cid:18)(cid:10)(cid:27)(cid:26)(cid:27)(cid:20)(cid:30)(cid:29)(cid:19)(cid:18)(cid:8)(cid:20)(cid:29)(cid:144)(cid:20)(cid:20)(cid:22)(cid:29)(cid:24)(cid:8)(cid:20)(cid:21)(cid:23)(cid:19)(cid:20)(cid:16)(cid:7)(cid:20)(cid:25)(cid:29)(cid:30)(cid:27)(cid:22)(cid:10)(cid:20)(cid:29)(cid:7)(cid:27)(cid:25)(cid:129)(cid:30)(cid:17)(cid:7)(cid:7)(cid:20)(cid:21)(cid:5)(cid:29)(cid:29)–(cid:20)(cid:8)(cid:20)(cid:21)(cid:26)(cid:19)(cid:20)(cid:129)

(cid:16)(cid:20)(cid:30)(cid:30)(cid:12)(cid:29)(cid:157)(cid:18)(cid:30)(cid:30)(cid:20)(cid:26)(cid:26)(cid:29)(cid:20)(cid:22)(cid:25)(cid:20)(cid:25)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:13)(cid:20)(cid:18)(cid:21)(cid:29)(cid:24)(cid:22)(cid:29)(cid:18)(cid:29)…(cid:22)(cid:18)(cid:22)(cid:10)(cid:27)(cid:18)(cid:16)(cid:29)(cid:19)(cid:27)(cid:6)(cid:19)(cid:29)(cid:22)(cid:24)(cid:26)(cid:20)(cid:29)(cid:18)(cid:30)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:10)(cid:24)(cid:7)(cid:144)(cid:27)(cid:22)(cid:18)(cid:26)(cid:27)(cid:24)(cid:22)(cid:29)(cid:24)(cid:3)(cid:29)(cid:18)(cid:29)

(cid:30)(cid:16)(cid:27)(cid:7)(cid:7)(cid:20)(cid:25)(cid:29)(cid:25)(cid:24)(cid:23)(cid:22)(cid:29)(cid:24)(cid:21)(cid:6)(cid:18)(cid:22)(cid:27)Ž(cid:18)(cid:26)(cid:27)(cid:24)(cid:22)(cid:12)(cid:29)(cid:21)(cid:20)(cid:25)(cid:17)(cid:10)(cid:20)(cid:25)(cid:29)(cid:25)(cid:27)(cid:30)(cid:10)(cid:21)(cid:20)(cid:26)(cid:27)(cid:24)(cid:22)(cid:18)(cid:21)(cid:13)(cid:29)(cid:30)(cid:9)(cid:20)(cid:22)(cid:25)(cid:27)(cid:22)(cid:6)(cid:12)(cid:29)(cid:18)(cid:22)(cid:25)(cid:29)(cid:30)(cid:26)(cid:21)(cid:24)(cid:22)(cid:6)(cid:29)(cid:24)(cid:21)(cid:129)

(cid:25)(cid:20)(cid:21)(cid:30)(cid:29)(cid:10)(cid:24)(cid:7)(cid:144)(cid:27)(cid:22)(cid:20)(cid:25)(cid:29)(cid:26)(cid:24)(cid:29)(cid:9)(cid:21)(cid:24)(cid:25)(cid:17)(cid:10)(cid:20)(cid:29)(cid:7)(cid:18)(cid:21)„(cid:20)(cid:25)(cid:16)(cid:13)(cid:29)(cid:27)(cid:7)(cid:9)(cid:21)(cid:24)(cid:8)(cid:20)(cid:25)(cid:29)(cid:21)(cid:20)(cid:30)(cid:17)(cid:16)(cid:26)(cid:30)(cid:29)(cid:3)(cid:24)(cid:21)(cid:29)(cid:24)(cid:17)(cid:21)(cid:29)(cid:3)(cid:24)(cid:17)(cid:21)(cid:26)(cid:19)(cid:29)‚(cid:17)(cid:18)(cid:21)(cid:26)(cid:20)(cid:21)(cid:5)(cid:29)(cid:29)

—(cid:27)(cid:8)(cid:20)(cid:22)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:30)(cid:19)(cid:17)(cid:26)(cid:25)(cid:24)(cid:23)(cid:22)(cid:29)(cid:24)(cid:3)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:144)(cid:17)(cid:30)(cid:27)(cid:22)(cid:20)(cid:30)(cid:30)(cid:29)(cid:27)(cid:22)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:30)(cid:20)(cid:10)(cid:24)(cid:22)(cid:25)(cid:29)‚(cid:17)(cid:18)(cid:21)(cid:26)(cid:20)(cid:21)(cid:12)(cid:29)(cid:13)(cid:20)(cid:18)(cid:21)(cid:16)(cid:13)(cid:29)(cid:10)(cid:24)(cid:22)(cid:30)(cid:24)(cid:16)(cid:27)(cid:25)(cid:18)(cid:26)(cid:20)(cid:25)(cid:29)

(cid:30)(cid:18)(cid:16)(cid:20)(cid:30)(cid:29)(cid:25)(cid:20)(cid:10)(cid:16)(cid:27)(cid:22)(cid:20)(cid:25)(cid:29)(cid:144)(cid:13)(cid:29)(cid:141)˜(cid:5)™ˆ(cid:29)(cid:26)(cid:24)(cid:29)š›œ‰(cid:5)(cid:143)(cid:29)(cid:7)(cid:27)(cid:16)(cid:16)(cid:27)(cid:24)(cid:22)(cid:12)(cid:29)(cid:21)(cid:20)(cid:30)(cid:17)(cid:16)(cid:26)(cid:27)(cid:22)(cid:6)(cid:29)(cid:27)(cid:22)(cid:29)(cid:18)(cid:29)(cid:22)(cid:20)(cid:26)(cid:29)(cid:16)(cid:24)(cid:30)(cid:30)(cid:29)(cid:24)(cid:3)(cid:29)š(cid:141)™(cid:5)(cid:2)(cid:29)(cid:7)(cid:27)(cid:16)(cid:129)

(cid:16)(cid:27)(cid:24)(cid:22)(cid:5)(cid:29)(cid:29)ž(cid:9)(cid:20)(cid:21)(cid:18)(cid:26)(cid:27)(cid:22)(cid:6)(cid:29)(cid:10)(cid:18)(cid:30)(cid:19)(cid:29)(cid:11)(cid:24)(cid:23)(cid:29)(cid:27)(cid:7)(cid:9)(cid:21)(cid:24)(cid:8)(cid:20)(cid:25)(cid:29)(cid:144)(cid:13)(cid:29)›Œ‰ˆ(cid:29)(cid:26)(cid:24)(cid:29)š›™(cid:5)Œ(cid:29)(cid:7)(cid:27)(cid:16)(cid:16)(cid:27)(cid:24)(cid:22)(cid:5)(cid:29)(cid:29)•(cid:19)(cid:20)(cid:29)(cid:13)(cid:20)(cid:18)(cid:21)(cid:129)(cid:20)(cid:22)(cid:25)(cid:29)

(cid:10)(cid:18)(cid:30)(cid:19)(cid:29)(cid:144)(cid:18)(cid:16)(cid:18)(cid:22)(cid:10)(cid:20)(cid:29)(cid:24)(cid:3)(cid:29)š™›(cid:5)‰(cid:29)(cid:7)(cid:27)(cid:16)(cid:16)(cid:27)(cid:24)(cid:22)(cid:29)(cid:21)(cid:20)(cid:9)(cid:21)(cid:20)(cid:30)(cid:20)(cid:22)(cid:26)(cid:20)(cid:25)(cid:29)(cid:18)(cid:22)(cid:29)(cid:27)(cid:22)(cid:10)(cid:21)(cid:20)(cid:18)(cid:30)(cid:20)(cid:29)(cid:24)(cid:3)(cid:29)(cid:24)(cid:8)(cid:20)(cid:21)(cid:29)š(cid:2)™(cid:29)(cid:7)(cid:27)(cid:16)(cid:16)(cid:27)(cid:24)(cid:22)(cid:29)(cid:3)(cid:21)(cid:24)(cid:7)(cid:29)

(cid:26)(cid:19)(cid:20)(cid:29)(cid:20)(cid:22)(cid:25)(cid:29)(cid:24)(cid:3)(cid:29)(cid:2)(cid:1)(cid:141)(cid:143)(cid:5)(cid:29)(cid:29)(cid:31)“(cid:20)(cid:21)(cid:29)(cid:30)(cid:17)(cid:30)(cid:9)(cid:20)(cid:22)(cid:25)(cid:27)(cid:22)(cid:6)(cid:29)(cid:24)(cid:17)(cid:21)(cid:29)(cid:9)(cid:21)(cid:20)(cid:129)(cid:9)(cid:18)(cid:22)(cid:25)(cid:20)(cid:7)(cid:27)(cid:10)(cid:29)(cid:25)(cid:27)(cid:8)(cid:27)(cid:25)(cid:20)(cid:22)(cid:25)(cid:29)(cid:27)(cid:22)(cid:29)‡(cid:18)(cid:21)(cid:10)(cid:19)(cid:12)(cid:29)(cid:24)(cid:17)(cid:21)(cid:29)

(cid:157)(cid:24)(cid:18)(cid:21)(cid:25)(cid:29)(cid:21)(cid:20)(cid:27)(cid:22)(cid:30)(cid:26)(cid:18)(cid:26)(cid:20)(cid:25)(cid:29)(cid:27)(cid:26)(cid:29)(cid:27)(cid:22)(cid:29)(cid:14)(cid:17)(cid:16)(cid:13)(cid:29)(cid:18)(cid:22)(cid:25)(cid:29)(cid:17)(cid:16)(cid:26)(cid:27)(cid:7)(cid:18)(cid:26)(cid:20)(cid:16)(cid:13)(cid:29)(cid:21)(cid:20)(cid:30)(cid:26)(cid:24)(cid:21)(cid:20)(cid:25)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:21)(cid:20)(cid:6)(cid:17)(cid:16)(cid:18)(cid:21)(cid:29)‚(cid:17)(cid:18)(cid:21)(cid:26)(cid:20)(cid:21)(cid:16)(cid:13)(cid:29)(cid:9)(cid:18)(cid:13)(cid:24)(cid:17)(cid:26)(cid:5)(cid:29)(cid:29)

(cid:31)(cid:22)(cid:25)(cid:12)(cid:29)(cid:27)(cid:22)(cid:29)(cid:21)(cid:20)(cid:10)(cid:24)(cid:6)(cid:22)(cid:27)(cid:26)(cid:27)(cid:24)(cid:22)(cid:29)(cid:24)(cid:3)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:30)(cid:26)(cid:21)(cid:20)(cid:22)(cid:6)(cid:26)(cid:19)(cid:20)(cid:22)(cid:20)(cid:25)(cid:29)(cid:144)(cid:18)(cid:16)(cid:18)(cid:22)(cid:10)(cid:20)(cid:29)(cid:30)(cid:19)(cid:20)(cid:20)(cid:26)(cid:12)(cid:29)(cid:23)(cid:20)(cid:29)(cid:9)(cid:18)(cid:27)(cid:25)(cid:29)(cid:18)(cid:29)(cid:30)(cid:9)(cid:20)(cid:10)(cid:27)(cid:18)(cid:16)(cid:29)(cid:25)(cid:27)(cid:8)(cid:27)(cid:129)

(cid:25)(cid:20)(cid:22)(cid:25)(cid:29)(cid:24)(cid:3)(cid:29)š(cid:1)(cid:5)(cid:2)‰(cid:29)(cid:27)(cid:22)(cid:29)”(cid:20)(cid:10)(cid:20)(cid:7)(cid:144)(cid:20)(cid:21)(cid:29)(cid:26)(cid:24)(cid:29)(cid:20)(cid:22)(cid:25)(cid:29)(cid:18)(cid:29)(cid:8)(cid:20)(cid:21)(cid:13)(cid:29)(cid:30)(cid:26)(cid:21)(cid:20)(cid:30)(cid:30)(cid:3)(cid:17)(cid:16)(cid:29)(cid:13)(cid:20)(cid:18)(cid:21)(cid:5)

•(cid:19)(cid:20)(cid:29)(cid:24)(cid:8)(cid:20)(cid:21)(cid:21)(cid:27)(cid:25)(cid:27)(cid:22)(cid:6)(cid:29)‚(cid:17)(cid:20)(cid:30)(cid:26)(cid:27)(cid:24)(cid:22)(cid:29)(cid:24)(cid:22)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:26)(cid:18)(cid:144)(cid:16)(cid:20)(cid:29)(cid:3)(cid:24)(cid:21)(cid:29)(cid:17)(cid:30)(cid:29)(cid:18)(cid:26)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:7)(cid:24)(cid:7)(cid:20)(cid:22)(cid:26)(cid:29)(cid:27)(cid:30)(cid:29)‘(cid:19)(cid:24)(cid:23)(cid:29)(cid:16)(cid:24)(cid:22)(cid:6)(cid:29)(cid:23)(cid:27)(cid:16)(cid:16)(cid:29)(cid:26)(cid:19)(cid:27)(cid:30)(cid:29)

(cid:19)(cid:20)(cid:27)(cid:6)(cid:19)(cid:26)(cid:20)(cid:22)(cid:20)(cid:25)(cid:29)(cid:16)(cid:20)(cid:8)(cid:20)(cid:16)(cid:29)(cid:24)(cid:3)(cid:29)(cid:144)(cid:17)(cid:30)(cid:27)(cid:22)(cid:20)(cid:30)(cid:30)(cid:29)(cid:16)(cid:18)(cid:30)(cid:26)Ÿ’(cid:29)(cid:29)(cid:31)(cid:26)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:26)(cid:27)(cid:7)(cid:20)(cid:29)(cid:24)(cid:3)(cid:29)(cid:26)(cid:19)(cid:27)(cid:30)(cid:29)(cid:16)(cid:20)(cid:26)(cid:26)(cid:20)(cid:21)(cid:12)(cid:29)(cid:22)(cid:27)(cid:22)(cid:20)(cid:29)(cid:23)(cid:20)(cid:20)„(cid:30)(cid:29)(cid:27)(cid:22)(cid:26)(cid:24)(cid:29)…(cid:30)(cid:129)

(cid:10)(cid:18)(cid:16)(cid:29)(cid:2)(cid:1)(cid:2)(cid:141)(cid:12)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:144)(cid:17)(cid:30)(cid:27)(cid:22)(cid:20)(cid:30)(cid:30)(cid:29)(cid:10)(cid:24)(cid:22)(cid:26)(cid:27)(cid:22)(cid:17)(cid:20)(cid:30)(cid:29)(cid:26)(cid:24)(cid:29)(cid:9)(cid:21)(cid:24)(cid:16)(cid:27)(cid:3)(cid:20)(cid:21)(cid:18)(cid:26)(cid:20)(cid:5)(cid:29)(cid:29)•(cid:19)(cid:20)(cid:29)(cid:9)(cid:18)(cid:22)(cid:25)(cid:20)(cid:7)(cid:27)(cid:10)(cid:29)(cid:10)(cid:19)(cid:18)(cid:22)(cid:6)(cid:20)(cid:25)(cid:29)(cid:26)(cid:19)(cid:20)(cid:29)(cid:23)(cid:18)(cid:13)(cid:29)

(cid:26)(cid:19)(cid:20)(cid:29)(cid:23)(cid:24)(cid:21)(cid:16)(cid:25)(cid:29)(cid:24)(cid:9)(cid:20)(cid:21)(cid:18)(cid:26)(cid:20)(cid:30)(cid:12)(cid:29)(cid:9)(cid:20)(cid:21)(cid:19)(cid:18)(cid:9)(cid:30)(cid:29)(cid:3)(cid:24)(cid:21)(cid:20)(cid:8)(cid:20)(cid:21)(cid:5)(cid:29)(cid:29)•(cid:19)(cid:20)(cid:29)(cid:16)(cid:20)(cid:30)(cid:30)(cid:24)(cid:22)(cid:30)(cid:29)(cid:16)(cid:20)(cid:18)(cid:21)(cid:22)(cid:20)(cid:25)(cid:29)(cid:3)(cid:21)(cid:24)(cid:7)(cid:29)(cid:30)(cid:17)(cid:10)(cid:19)(cid:29)(cid:18)(cid:29)(cid:21)(cid:18)(cid:25)(cid:27)(cid:10)(cid:18)(cid:16)(cid:29)

(cid:31)(cid:30)(cid:29)(cid:28)(cid:27)(cid:26)(cid:28)(cid:25)(cid:24)(cid:23)(cid:22)

(cid:31)(cid:30)(cid:29)(cid:28)(cid:27)(cid:26)(cid:25)(cid:30)(cid:24)(cid:23)(cid:22)(cid:25)(cid:24)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)(cid:23)(cid:24)(cid:28)(cid:19)(cid:22)(cid:18)(cid:17)(cid:23)(cid:22)(cid:26)(cid:28)(cid:24)(cid:16)(cid:30)(cid:31)(cid:20)(cid:22)(cid:17)(cid:22)(cid:15)(cid:14)(cid:27)(cid:20)(cid:26)(cid:28)(cid:30)(cid:23)(cid:25)(cid:22)(cid:13)(cid:24)(cid:28)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)(cid:13)(cid:27)(cid:25)(cid:27)(cid:28)(cid:20)(cid:12)(cid:22)(cid:22)(cid:11)(cid:20)(cid:22)(cid:21)(cid:17)(cid:16)(cid:20)(cid:22)(cid:19)(cid:17)(cid:31)(cid:20)(cid:22)

(cid:25)(cid:21)(cid:20)(cid:22)(cid:18)(cid:24)(cid:23)(cid:29)(cid:18)(cid:30)(cid:24)(cid:27)(cid:29)(cid:22)(cid:31)(cid:20)(cid:18)(cid:30)(cid:29)(cid:30)(cid:24)(cid:23)(cid:22)(cid:25)(cid:24)(cid:22)(cid:13)(cid:27)(cid:28)(cid:25)(cid:21)(cid:20)(cid:28)(cid:22)(cid:10)(cid:28)(cid:20)(cid:9)(cid:29)(cid:21)(cid:24)(cid:28)(cid:20)(cid:8)(cid:22)(cid:24)(cid:27)(cid:28)(cid:22)(cid:15)(cid:27)(cid:29)(cid:30)(cid:23)(cid:20)(cid:29)(cid:29)(cid:22)(cid:19)(cid:24)(cid:31)(cid:20)(cid:14)(cid:22)(cid:15)(cid:7)(cid:22)(cid:18)(cid:24)(cid:23)(cid:16)(cid:20)(cid:28)(cid:25)(cid:30)(cid:23)(cid:6)(cid:22)

(cid:19)(cid:24)(cid:28)(cid:20)(cid:22)(cid:24)(cid:13)(cid:22)(cid:24)(cid:27)(cid:28)(cid:22)(cid:26)(cid:28)(cid:24)(cid:31)(cid:27)(cid:18)(cid:25)(cid:22)(cid:17)(cid:29)(cid:29)(cid:24)(cid:28)(cid:25)(cid:19)(cid:20)(cid:23)(cid:25)(cid:22)(cid:25)(cid:24)(cid:22)(cid:31)(cid:24)(cid:19)(cid:20)(cid:29)(cid:25)(cid:30)(cid:18)(cid:17)(cid:14)(cid:14)(cid:7)(cid:22)(cid:26)(cid:28)(cid:24)(cid:31)(cid:27)(cid:18)(cid:20)(cid:31)(cid:22)(cid:6)(cid:24)(cid:24)(cid:31)(cid:29)(cid:12)(cid:22)(cid:22)(cid:5)(cid:24)(cid:25)(cid:17)(cid:15)(cid:14)(cid:7)(cid:4)(cid:22)(cid:3)(cid:20)(cid:22)

(cid:17)(cid:28)(cid:20)(cid:22) (cid:20)(cid:2)(cid:26)(cid:17)(cid:23)(cid:31)(cid:30)(cid:23)(cid:6)(cid:22) (cid:25)(cid:21)(cid:20)(cid:22) (cid:31)(cid:30)(cid:23)(cid:30)(cid:23)(cid:6)(cid:22) (cid:13)(cid:27)(cid:28)(cid:23)(cid:30)(cid:25)(cid:27)(cid:28)(cid:20)(cid:22) (cid:26)(cid:24)(cid:28)(cid:25)(cid:30)(cid:24)(cid:23)(cid:22) (cid:24)(cid:13)(cid:22) (cid:24)(cid:27)(cid:28)(cid:22) (cid:29)(cid:27)(cid:18)(cid:18)(cid:20)(cid:29)(cid:29)(cid:13)(cid:27)(cid:14)(cid:22) (cid:10)(cid:1)(cid:20)(cid:23)(cid:18)(cid:21)(cid:22) (cid:127)(cid:17)(cid:31)(cid:20)(cid:8)(cid:22)

(cid:26)(cid:28)(cid:24)(cid:6)(cid:28)(cid:17)(cid:19)(cid:12)(cid:22)(cid:22)(cid:129)(cid:16)(cid:20)(cid:28)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)(cid:29)(cid:27)(cid:19)(cid:19)(cid:20)(cid:28)(cid:4)(cid:22)(cid:24)(cid:27)(cid:28)(cid:22)(cid:31)(cid:20)(cid:29)(cid:30)(cid:6)(cid:23)(cid:20)(cid:28)(cid:29)(cid:4)(cid:22)(cid:20)(cid:23)(cid:6)(cid:30)(cid:23)(cid:20)(cid:20)(cid:28)(cid:29)(cid:4)(cid:22)(cid:17)(cid:23)(cid:31)(cid:22)(cid:19)(cid:20)(cid:28)(cid:18)(cid:21)(cid:17)(cid:23)(cid:25)(cid:29)(cid:22)(cid:3)(cid:24)(cid:28)(cid:141)(cid:20)(cid:31)(cid:22)

(cid:30)(cid:23)(cid:22)(cid:18)(cid:24)(cid:23)(cid:18)(cid:20)(cid:28)(cid:25)(cid:22)(cid:25)(cid:24)(cid:22)(cid:31)(cid:20)(cid:16)(cid:20)(cid:14)(cid:24)(cid:26)(cid:22)(cid:17)(cid:23)(cid:22)(cid:20)(cid:2)(cid:25)(cid:20)(cid:23)(cid:29)(cid:30)(cid:16)(cid:20)(cid:22)(cid:28)(cid:17)(cid:23)(cid:6)(cid:20)(cid:22)(cid:24)(cid:13)(cid:22)(cid:23)(cid:20)(cid:3)(cid:22)(cid:25)(cid:17)(cid:15)(cid:14)(cid:20)(cid:22)(cid:17)(cid:23)(cid:31)(cid:22)(cid:18)(cid:21)(cid:17)(cid:30)(cid:28)(cid:22)(cid:31)(cid:20)(cid:29)(cid:30)(cid:6)(cid:23)(cid:29)(cid:22)(cid:25)(cid:21)(cid:17)(cid:25)(cid:22)(cid:3)(cid:30)(cid:14)(cid:14)(cid:22)

(cid:28)(cid:20)(cid:30)(cid:23)(cid:13)(cid:24)(cid:28)(cid:18)(cid:20)(cid:22)(cid:24)(cid:27)(cid:28)(cid:22)(cid:10)(cid:127)(cid:17)(cid:31)(cid:20)(cid:22)(cid:30)(cid:23)(cid:22)(cid:143)(cid:19)(cid:20)(cid:28)(cid:30)(cid:18)(cid:17)(cid:8)(cid:22)(cid:26)(cid:24)(cid:29)(cid:30)(cid:25)(cid:30)(cid:24)(cid:23)(cid:30)(cid:23)(cid:6)(cid:12)(cid:22)(cid:22)(cid:144)(cid:21)(cid:20)(cid:22)(cid:23)(cid:20)(cid:3)(cid:22)(cid:26)(cid:28)(cid:24)(cid:31)(cid:27)(cid:18)(cid:25)(cid:22)(cid:15)(cid:20)(cid:6)(cid:17)(cid:23)(cid:22)(cid:25)(cid:24)(cid:22)(cid:21)(cid:30)(cid:25)(cid:22)(cid:28)(cid:20)(cid:9)

(cid:25)(cid:17)(cid:30)(cid:14)(cid:22)(cid:157)(cid:24)(cid:24)(cid:28)(cid:29)(cid:22)(cid:17)(cid:23)(cid:31)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)(cid:30)(cid:23)(cid:25)(cid:20)(cid:28)(cid:23)(cid:20)(cid:25)(cid:22)(cid:30)(cid:23)(cid:22)(cid:19)(cid:30)(cid:31)(cid:9) (cid:17)(cid:23)(cid:27)(cid:17)(cid:28)(cid:7)(cid:4)(cid:22)(cid:13)(cid:20)(cid:17)(cid:25)(cid:27)(cid:28)(cid:30)(cid:23)(cid:6)(cid:22)(cid:29)(cid:27)(cid:29)(cid:25)(cid:17)(cid:30)(cid:23)(cid:17)(cid:15)(cid:14)(cid:7)(cid:22)(cid:21)(cid:17)(cid:28)(cid:16)(cid:20)(cid:29)(cid:25)(cid:20)(cid:31)(cid:22)(cid:29)(cid:24)(cid:14)(cid:30)(cid:31)(cid:22)

(cid:19)(cid:17)(cid:26)(cid:14)(cid:20)(cid:22)(cid:17)(cid:23)(cid:31)(cid:22)(cid:29)(cid:24)(cid:14)(cid:30)(cid:31)(cid:22)(cid:3)(cid:21)(cid:30)(cid:25)(cid:20)(cid:22)(cid:24)(cid:17)(cid:141)(cid:22)(cid:31)(cid:30)(cid:23)(cid:30)(cid:23)(cid:6)(cid:22)(cid:26)(cid:28)(cid:24)(cid:31)(cid:27)(cid:18)(cid:25)(cid:29)(cid:22)(cid:17)(cid:25)(cid:22)(cid:14)(cid:24)(cid:3)(cid:20)(cid:28)(cid:22)(cid:26)(cid:28)(cid:30)(cid:18)(cid:20)(cid:22)(cid:26)(cid:24)(cid:30)(cid:23)(cid:25)(cid:29)(cid:22)(cid:25)(cid:21)(cid:17)(cid:23)(cid:22)(cid:26)(cid:28)(cid:20)(cid:16)(cid:30)(cid:24)(cid:27)(cid:29)(cid:9)

(cid:14)(cid:7)(cid:22)(cid:17)(cid:16)(cid:17)(cid:30)(cid:14)(cid:17)(cid:15)(cid:14)(cid:20)(cid:22)(cid:13)(cid:28)(cid:24)(cid:19)(cid:22)(cid:1)(cid:17)(cid:29)(cid:29)(cid:20)(cid:25)(cid:25)(cid:12)(cid:22)(cid:22)(cid:144)(cid:21)(cid:20)(cid:28)(cid:20)(cid:22)(cid:30)(cid:29)(cid:22)(cid:23)(cid:24)(cid:22)(cid:20)(cid:23)(cid:6)(cid:30)(cid:23)(cid:20)(cid:20)(cid:28)(cid:20)(cid:31)(cid:22)(cid:26)(cid:17)(cid:28)(cid:25)(cid:30)(cid:18)(cid:14)(cid:20)(cid:15)(cid:24)(cid:17)(cid:28)(cid:31)(cid:22)(cid:21)(cid:20)(cid:28)(cid:20)(cid:22) (cid:22)(cid:25)(cid:21)(cid:30)(cid:29)(cid:22)(cid:30)(cid:29)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)

(cid:28)(cid:20)(cid:17)(cid:14)(cid:22)(cid:25)(cid:21)(cid:30)(cid:23)(cid:6)(cid:12)(cid:22)(cid:22)(cid:144)(cid:24)(cid:22)(cid:18)(cid:24)(cid:19)(cid:26)(cid:14)(cid:20)(cid:19)(cid:20)(cid:23)(cid:25)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)(cid:23)(cid:20)(cid:3)(cid:22)(cid:31)(cid:30)(cid:23)(cid:30)(cid:23)(cid:6)(cid:22)(cid:25)(cid:17)(cid:15)(cid:14)(cid:20)(cid:29)(cid:4)(cid:22)(cid:3)(cid:20)(cid:22)(cid:21)(cid:17)(cid:16)(cid:20)(cid:22)(cid:18)(cid:24)(cid:14)(cid:14)(cid:17)(cid:15)(cid:24)(cid:28)(cid:17)(cid:25)(cid:20)(cid:31)(cid:22)(cid:3)(cid:30)(cid:25)(cid:21)(cid:22)

(cid:25)(cid:21)(cid:20)(cid:22)(cid:26)(cid:17)(cid:28)(cid:20)(cid:23)(cid:25)(cid:22)(cid:18)(cid:24)(cid:19)(cid:26)(cid:17)(cid:23)(cid:7)(cid:22)(cid:24)(cid:13)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)(cid:13)(cid:17)(cid:19)(cid:24)(cid:27)(cid:29)(cid:22)€(cid:27)(cid:23)(cid:15)(cid:28)(cid:20)(cid:14)(cid:14)(cid:17)(cid:22)(cid:15)(cid:28)(cid:17)(cid:23)(cid:31)(cid:22)(cid:25)(cid:24)(cid:22)(cid:18)(cid:28)(cid:20)(cid:17)(cid:25)(cid:20)(cid:22)(cid:20)(cid:2)(cid:18)(cid:14)(cid:27)(cid:29)(cid:30)(cid:16)(cid:20)(cid:22)(cid:26)(cid:20)(cid:28)(cid:13)(cid:24)(cid:28)(cid:9)

(cid:19)(cid:17)(cid:23)(cid:18)(cid:20)(cid:22)(cid:13)(cid:17)(cid:15)(cid:28)(cid:30)(cid:18)(cid:29)(cid:22)(cid:13)(cid:24)(cid:28)(cid:22)(cid:17)(cid:26)(cid:26)(cid:14)(cid:30)(cid:18)(cid:17)(cid:25)(cid:30)(cid:24)(cid:23)(cid:22)(cid:24)(cid:23)(cid:22)(cid:17)(cid:22)(cid:23)(cid:20)(cid:3)(cid:22)(cid:29)(cid:20)(cid:14)(cid:20)(cid:18)(cid:25)(cid:30)(cid:24)(cid:23)(cid:22)(cid:24)(cid:13)(cid:22)(cid:27)(cid:26)(cid:21)(cid:24)(cid:14)(cid:29)(cid:25)(cid:20)(cid:28)(cid:20)(cid:31)(cid:22)(cid:31)(cid:30)(cid:23)(cid:30)(cid:23)(cid:6)(cid:22)(cid:18)(cid:21)(cid:17)(cid:30)(cid:28)(cid:29)(cid:12)(cid:22)(cid:22)

€(cid:30)(cid:23)(cid:18)(cid:20)(cid:22)(cid:30)(cid:25)(cid:29)(cid:22)(cid:30)(cid:23)(cid:18)(cid:20)(cid:26)(cid:25)(cid:30)(cid:24)(cid:23)(cid:22)(cid:30)(cid:23)(cid:22)‚ƒ„…(cid:4)(cid:22)(cid:24)(cid:27)(cid:28)(cid:22)(cid:1)(cid:20)(cid:23)(cid:18)(cid:21)(cid:22)(cid:127)(cid:17)(cid:31)(cid:20)(cid:22)(cid:29)(cid:27)(cid:15)(cid:22)(cid:15)(cid:28)(cid:17)(cid:23)(cid:31)(cid:22)(cid:21)(cid:17)(cid:29)(cid:22)(cid:6)(cid:28)(cid:24)(cid:3)(cid:23)(cid:22)(cid:25)(cid:24)(cid:22)(cid:20)(cid:26)(cid:30)(cid:25)(cid:24)(cid:19)(cid:30)†(cid:20)(cid:22)

(cid:25)(cid:21)(cid:20)(cid:22)(cid:21)(cid:20)(cid:28)(cid:30)(cid:25)(cid:17)(cid:6)(cid:20)(cid:22)(cid:17)(cid:23)(cid:31)(cid:22)(cid:14)(cid:24)(cid:18)(cid:17)(cid:14)(cid:22)(cid:17)(cid:28)(cid:25)(cid:30)(cid:29)(cid:17)(cid:23)(cid:29)(cid:21)(cid:30)(cid:26)(cid:22)(cid:25)(cid:21)(cid:17)(cid:25)(cid:22)(cid:21)(cid:17)(cid:29)(cid:22)(cid:31)(cid:20)‡(cid:23)(cid:20)(cid:31)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)(cid:1)(cid:17)(cid:29)(cid:29)(cid:20)(cid:25)(cid:25)(cid:22)(cid:15)(cid:28)(cid:17)(cid:23)(cid:31)(cid:22)(cid:13)(cid:24)(cid:28)(cid:22)(cid:17)(cid:14)(cid:19)(cid:24)(cid:29)(cid:25)(cid:22)

„‚ƒ(cid:22)(cid:7)(cid:20)(cid:17)(cid:28)(cid:29)(cid:12)(cid:22)(cid:22)(cid:144)(cid:21)(cid:30)(cid:29)(cid:22)(cid:29)(cid:26)(cid:28)(cid:30)(cid:23)(cid:6)(cid:22)(cid:3)(cid:20)(cid:22)(cid:3)(cid:30)(cid:14)(cid:14)(cid:22)(cid:14)(cid:17)(cid:27)(cid:23)(cid:18)(cid:21)(cid:22)(cid:17)(cid:22)(cid:23)(cid:20)(cid:3)(cid:22)(cid:19)(cid:17)(cid:28)(cid:141)(cid:20)(cid:25)(cid:30)(cid:23)(cid:6)(cid:22)(cid:18)(cid:17)(cid:19)(cid:26)(cid:17)(cid:30)(cid:6)(cid:23)(cid:22)(cid:25)(cid:21)(cid:17)(cid:25)(cid:22)(cid:3)(cid:30)(cid:14)(cid:14)(cid:22)(cid:13)(cid:24)(cid:9)

(cid:18)(cid:27)(cid:29)(cid:22)(cid:24)(cid:23)(cid:22)(cid:24)(cid:27)(cid:28)(cid:22)(cid:29)(cid:24)(cid:24)(cid:23)(cid:22)(cid:25)(cid:24)(cid:22)(cid:15)(cid:20)(cid:22)(cid:20)(cid:2)(cid:26)(cid:17)(cid:23)(cid:31)(cid:20)(cid:31)(cid:22)(cid:26)(cid:28)(cid:20)(cid:19)(cid:30)(cid:27)(cid:19)(cid:22)(cid:28)(cid:17)(cid:23)(cid:6)(cid:20)(cid:22)(cid:24)(cid:13)(cid:22)(cid:26)(cid:28)(cid:24)(cid:31)(cid:27)(cid:18)(cid:25)(cid:22)(cid:30)(cid:23)(cid:18)(cid:14)(cid:27)(cid:31)(cid:30)(cid:23)(cid:6)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)(cid:28)(cid:20)(cid:9)

(cid:15)(cid:28)(cid:17)(cid:23)(cid:31)(cid:30)(cid:23)(cid:6)(cid:22)(cid:24)(cid:13)(cid:22)(cid:24)(cid:27)(cid:28)(cid:22)(cid:18)(cid:27)(cid:29)(cid:25)(cid:24)(cid:19)(cid:22)(cid:27)(cid:26)(cid:21)(cid:24)(cid:14)(cid:29)(cid:25)(cid:20)(cid:28)(cid:7)(cid:22)(cid:26)(cid:28)(cid:24)(cid:6)(cid:28)(cid:17)(cid:19)(cid:22)(cid:25)(cid:24)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)(cid:1)(cid:20)(cid:23)(cid:18)(cid:21)(cid:22)(cid:127)(cid:17)(cid:31)(cid:20)(cid:22)(cid:23)(cid:17)(cid:19)(cid:20)(cid:12)(cid:22)(cid:22)(cid:11)(cid:20)(cid:22)(cid:3)(cid:30)(cid:14)(cid:14)(cid:22)

(cid:21)(cid:30)(cid:6)(cid:21)(cid:14)(cid:30)(cid:6)(cid:21)(cid:25)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)ˆ(cid:27)(cid:17)(cid:14)(cid:30)(cid:25)(cid:7)(cid:22)(cid:17)(cid:23)(cid:31)(cid:22)(cid:29)(cid:27)(cid:29)(cid:25)(cid:17)(cid:30)(cid:23)(cid:17)(cid:15)(cid:30)(cid:14)(cid:30)(cid:25)(cid:7)(cid:22)(cid:24)(cid:13)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)(cid:19)(cid:17)(cid:25)(cid:20)(cid:28)(cid:30)(cid:17)(cid:14)(cid:22)(cid:25)(cid:21)(cid:17)(cid:25)(cid:22)(cid:3)(cid:20)(cid:22)(cid:20)(cid:19)(cid:26)(cid:14)(cid:24)(cid:7)(cid:4)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)(cid:29)(cid:141)(cid:30)(cid:14)(cid:14)(cid:22)

(cid:24)(cid:13)(cid:22)(cid:24)(cid:27)(cid:28)(cid:22)(cid:14)(cid:24)(cid:18)(cid:17)(cid:14)(cid:22)(cid:29)(cid:27)(cid:26)(cid:26)(cid:14)(cid:30)(cid:20)(cid:28)(cid:29)(cid:22)(cid:17)(cid:23)(cid:31)(cid:22)(cid:1)(cid:17)(cid:29)(cid:29)(cid:20)(cid:25)(cid:25)(cid:22)(cid:18)(cid:28)(cid:17)‰(cid:29)(cid:19)(cid:17)(cid:23)(cid:4)(cid:22)(cid:17)(cid:23)(cid:31)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)(cid:14)(cid:24)(cid:23)(cid:6)(cid:22)(cid:29)(cid:25)(cid:17)(cid:23)(cid:31)(cid:30)(cid:23)(cid:6)(cid:22)(cid:25)(cid:28)(cid:17)(cid:31)(cid:30)(cid:25)(cid:30)(cid:24)(cid:23)(cid:29)(cid:22)

(cid:24)(cid:13)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)Š(cid:24)(cid:19)(cid:26)(cid:17)(cid:23)(cid:7)(cid:12)(cid:22)(cid:22)(cid:143)(cid:14)(cid:25)(cid:21)(cid:24)(cid:27)(cid:6)(cid:21)(cid:22)(cid:3)(cid:20)(cid:22)(cid:21)(cid:17)(cid:16)(cid:20)(cid:22)(cid:29)(cid:20)(cid:20)(cid:23)(cid:22)(cid:30)(cid:23)(cid:18)(cid:28)(cid:20)(cid:17)(cid:29)(cid:20)(cid:31)(cid:22)(cid:18)(cid:24)(cid:23)(cid:29)(cid:27)(cid:19)(cid:20)(cid:28)(cid:22)(cid:26)(cid:28)(cid:20)(cid:13)(cid:20)(cid:28)(cid:20)(cid:23)(cid:18)(cid:20)(cid:22)(cid:13)(cid:24)(cid:28)(cid:22)

(cid:127)(cid:17)(cid:31)(cid:20)(cid:22)(cid:30)(cid:23)(cid:22)(cid:143)(cid:19)(cid:20)(cid:28)(cid:30)(cid:18)(cid:17)(cid:22)(cid:26)(cid:28)(cid:24)(cid:31)(cid:27)(cid:18)(cid:25)(cid:29)(cid:4)(cid:22)(cid:13)(cid:24)(cid:28)(cid:22)(cid:29)(cid:20)(cid:16)(cid:20)(cid:28)(cid:17)(cid:14)(cid:22)(cid:7)(cid:20)(cid:17)(cid:28)(cid:29)(cid:4)(cid:22)(cid:3)(cid:20)(cid:22)(cid:15)(cid:20)(cid:14)(cid:30)(cid:20)(cid:16)(cid:20)(cid:22)(cid:25)(cid:21)(cid:17)(cid:25)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)(cid:26)(cid:29)(cid:7)(cid:18)(cid:21)(cid:24)(cid:14)(cid:24)(cid:6)(cid:30)(cid:18)(cid:17)(cid:14)(cid:22)

(cid:20)‹(cid:20)(cid:18)(cid:25)(cid:29)(cid:22)(cid:24)(cid:13)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)(cid:26)(cid:17)(cid:23)(cid:31)(cid:20)(cid:19)(cid:30)(cid:18)(cid:22)(cid:21)(cid:17)(cid:16)(cid:20)(cid:22)(cid:30)(cid:23)(cid:25)(cid:20)(cid:23)(cid:29)(cid:30)‡(cid:20)(cid:31)(cid:22)(cid:25)(cid:21)(cid:30)(cid:29)(cid:22)(cid:29)(cid:20)(cid:23)(cid:25)(cid:30)(cid:19)(cid:20)(cid:23)(cid:25)(cid:22)(cid:17)(cid:23)(cid:31)(cid:22)(cid:3)(cid:20)(cid:22)(cid:14)(cid:24)(cid:24)(cid:141)(cid:22)(cid:13)(cid:24)(cid:28)(cid:3)(cid:17)(cid:28)(cid:31)(cid:22)(cid:25)(cid:24)(cid:22)

(cid:15)(cid:20)(cid:30)(cid:23)(cid:6)(cid:22)(cid:17)(cid:22)(cid:15)(cid:30)(cid:6)(cid:6)(cid:20)(cid:28)(cid:22)(cid:26)(cid:17)(cid:28)(cid:25)(cid:22)(cid:24)(cid:13)(cid:22)(cid:30)(cid:25)(cid:12)

(cid:143)(cid:29)(cid:22)(cid:3)(cid:20)(cid:22)(cid:14)(cid:24)(cid:24)(cid:141)(cid:22)(cid:15)(cid:17)(cid:18)(cid:141)(cid:22)(cid:17)(cid:25)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)(cid:28)(cid:30)(cid:18)(cid:21)(cid:22)(cid:21)(cid:20)(cid:28)(cid:30)(cid:25)(cid:17)(cid:6)(cid:20)(cid:22)(cid:24)(cid:13)(cid:22)(cid:1)(cid:17)(cid:29)(cid:29)(cid:20)(cid:25)(cid:25)(cid:4)(cid:22)(cid:3)(cid:20)(cid:22)(cid:20)(cid:7)(cid:20)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)(cid:13)(cid:27)(cid:25)(cid:27)(cid:28)(cid:20)(cid:22)(cid:25)(cid:21)(cid:28)(cid:24)(cid:27)(cid:6)(cid:21)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)

(cid:14)(cid:20)(cid:23)(cid:29)(cid:22)(cid:24)(cid:13)(cid:22)(cid:24)(cid:27)(cid:28)(cid:22)(cid:15)(cid:27)(cid:28)(cid:6)(cid:20)(cid:24)(cid:23)(cid:30)(cid:23)(cid:6)(cid:22)(cid:31)(cid:30)(cid:6)(cid:30)(cid:25)(cid:17)(cid:14)(cid:22)(cid:20)(cid:18)(cid:24)(cid:29)(cid:7)(cid:29)(cid:25)(cid:20)(cid:19)(cid:12)(cid:22)(cid:22)(cid:127)(cid:27)(cid:18)(cid:21)(cid:22)(cid:21)(cid:17)(cid:29)(cid:22)(cid:15)(cid:20)(cid:20)(cid:23)(cid:22)(cid:3)(cid:28)(cid:30)(cid:25)(cid:25)(cid:20)(cid:23)(cid:22)(cid:17)(cid:15)(cid:24)(cid:27)(cid:25)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)

(cid:28)(cid:24)(cid:14)(cid:20)(cid:22) (cid:24)(cid:13)(cid:22) (cid:25)(cid:21)(cid:20)(cid:22) (cid:26)(cid:17)(cid:23)(cid:31)(cid:20)(cid:19)(cid:30)(cid:18)(cid:22) (cid:30)(cid:23)(cid:22) (cid:25)(cid:21)(cid:20)(cid:22) (cid:17)(cid:18)(cid:18)(cid:20)(cid:14)(cid:20)(cid:28)(cid:17)(cid:25)(cid:30)(cid:24)(cid:23)(cid:22) (cid:24)(cid:13)(cid:22) (cid:31)(cid:30)(cid:6)(cid:30)(cid:25)(cid:17)(cid:14)(cid:22) (cid:18)(cid:24)(cid:19)(cid:19)(cid:20)(cid:28)(cid:18)(cid:20)(cid:22) (cid:17)(cid:23)(cid:31)(cid:4)(cid:22) (cid:13)(cid:28)(cid:24)(cid:19)(cid:22) (cid:24)(cid:27)(cid:28)(cid:22)

(cid:26)(cid:24)(cid:30)(cid:23)(cid:25)(cid:22)(cid:24)(cid:13)(cid:22)(cid:16)(cid:30)(cid:20)(cid:3)(cid:4)(cid:22)(cid:30)(cid:25)(cid:22)(cid:30)(cid:29)(cid:22)(cid:27)(cid:23)(cid:31)(cid:20)(cid:23)(cid:30)(cid:17)(cid:15)(cid:14)(cid:20)(cid:12)(cid:22)(cid:22)(cid:129)(cid:27)(cid:28)(cid:22)Œ(cid:9)(cid:18)(cid:24)(cid:19)(cid:19)(cid:20)(cid:28)(cid:18)(cid:20)(cid:22)(cid:29)(cid:17)(cid:14)(cid:20)(cid:29)(cid:22)(cid:23)(cid:20)(cid:17)(cid:28)(cid:14)(cid:7)(cid:22)(cid:31)(cid:24)(cid:27)(cid:15)(cid:14)(cid:20)(cid:31)(cid:22)(cid:30)(cid:23)(cid:22)‚ƒ‚ƒ(cid:22)

(cid:17)(cid:23)(cid:31)(cid:22)(cid:24)(cid:27)(cid:28)(cid:22)(cid:3)(cid:20)(cid:15)(cid:29)(cid:30)(cid:25)(cid:20)(cid:22)(cid:25)(cid:28)(cid:17)Ž(cid:18)(cid:22)(cid:30)(cid:23)(cid:18)(cid:28)(cid:20)(cid:17)(cid:29)(cid:20)(cid:31)(cid:22)(cid:15)(cid:7)(cid:22)‘ƒ’“(cid:22)(cid:20)(cid:16)(cid:30)(cid:31)(cid:20)(cid:23)(cid:18)(cid:20)(cid:22)(cid:25)(cid:21)(cid:17)(cid:25)(cid:22)(cid:24)(cid:27)(cid:28)(cid:22)(cid:18)(cid:24)(cid:23)(cid:29)(cid:27)(cid:19)(cid:20)(cid:28)(cid:22)(cid:20)(cid:23)(cid:6)(cid:17)(cid:6)(cid:20)(cid:9)

(cid:19)(cid:20)(cid:23)(cid:25)(cid:22) (cid:29)(cid:25)(cid:28)(cid:17)(cid:25)(cid:20)(cid:6)(cid:30)(cid:20)(cid:29)(cid:22) (cid:17)(cid:28)(cid:20)(cid:22) (cid:3)(cid:24)(cid:28)(cid:141)(cid:30)(cid:23)(cid:6)(cid:12)(cid:22) (cid:22) (cid:144)(cid:21)(cid:20)(cid:29)(cid:20)(cid:22) (cid:6)(cid:17)(cid:30)(cid:23)(cid:29)(cid:22) (cid:21)(cid:17)(cid:16)(cid:20)(cid:22) (cid:24)(cid:18)(cid:18)(cid:27)(cid:28)(cid:28)(cid:20)(cid:31)(cid:22) (cid:31)(cid:20)(cid:29)(cid:26)(cid:30)(cid:25)(cid:20)(cid:22) (cid:24)(cid:26)(cid:20)(cid:28)(cid:17)(cid:25)(cid:30)(cid:23)(cid:6)(cid:22) (cid:17)(cid:22)

(cid:3)(cid:20)(cid:15)(cid:22)(cid:23)(cid:17)(cid:16)(cid:30)(cid:6)(cid:17)(cid:25)(cid:30)(cid:24)(cid:23)(cid:22)(cid:26)(cid:14)(cid:17)(cid:25)(cid:13)(cid:24)(cid:28)(cid:19)(cid:22)(cid:25)(cid:21)(cid:17)(cid:25)(cid:22)(cid:30)(cid:29)(cid:22)(cid:17)(cid:31)(cid:19)(cid:30)(cid:25)(cid:25)(cid:20)(cid:31)(cid:14)(cid:7)(cid:22)(cid:18)(cid:27)(cid:19)(cid:15)(cid:20)(cid:28)(cid:29)(cid:24)(cid:19)(cid:20)(cid:22)(cid:17)(cid:23)(cid:31)(cid:22)(cid:17)(cid:22)(cid:26)(cid:28)(cid:24)(cid:31)(cid:27)(cid:18)(cid:25)(cid:22)(cid:17)(cid:29)(cid:29)(cid:24)(cid:28)(cid:25)(cid:9)

(cid:19)(cid:20)(cid:23)(cid:25)(cid:22)(cid:25)(cid:21)(cid:17)(cid:25)(cid:22)(cid:30)(cid:29)(cid:22)(cid:14)(cid:17)(cid:28)(cid:6)(cid:20)(cid:14)(cid:7)(cid:22)(cid:26)(cid:28)(cid:20)(cid:31)(cid:30)(cid:18)(cid:17)(cid:25)(cid:20)(cid:31)(cid:22)(cid:24)(cid:23)(cid:22)(cid:24)‹(cid:20)(cid:28)(cid:30)(cid:23)(cid:6)(cid:22)(cid:19)(cid:7)(cid:28)(cid:30)(cid:17)(cid:31)(cid:22)(cid:18)(cid:27)(cid:29)(cid:25)(cid:24)(cid:19)(cid:22)(cid:24)(cid:26)(cid:25)(cid:30)(cid:24)(cid:23)(cid:29)(cid:22)(cid:25)(cid:21)(cid:17)(cid:25)(cid:22)(cid:17)(cid:28)(cid:20)(cid:22)(cid:15)(cid:20)(cid:29)(cid:25)(cid:22)

(cid:26)(cid:28)(cid:20)(cid:29)(cid:20)(cid:23)(cid:25)(cid:20)(cid:31)(cid:22)(cid:25)(cid:21)(cid:28)(cid:24)(cid:27)(cid:6)(cid:21)(cid:22)(cid:15)(cid:28)(cid:30)(cid:18)(cid:141)(cid:22)(cid:17)(cid:23)(cid:31)(cid:22)(cid:19)(cid:24)(cid:28)(cid:25)(cid:17)(cid:28)(cid:22)(cid:29)(cid:20)(cid:29)(cid:29)(cid:30)(cid:24)(cid:23)(cid:29)(cid:22)(cid:3)(cid:30)(cid:25)(cid:21)(cid:22)(cid:24)(cid:27)(cid:28)(cid:22)(cid:31)(cid:20)(cid:29)(cid:30)(cid:6)(cid:23)(cid:20)(cid:28)(cid:29)(cid:12)(cid:22)(cid:22)(cid:11)(cid:21)(cid:30)(cid:14)(cid:20)(cid:22)(cid:29)(cid:25)(cid:30)(cid:14)(cid:14)(cid:22)

(cid:15)(cid:20)(cid:14)(cid:30)(cid:20)(cid:16)(cid:30)(cid:23)(cid:6)(cid:22)(cid:30)(cid:23)(cid:22)(cid:18)(cid:27)(cid:29)(cid:25)(cid:24)(cid:19)(cid:30)†(cid:17)(cid:25)(cid:30)(cid:24)(cid:23)(cid:4)(cid:22)(cid:3)(cid:20)(cid:22)(cid:21)(cid:17)(cid:16)(cid:20)(cid:22)(cid:29)(cid:25)(cid:17)(cid:28)(cid:25)(cid:20)(cid:31)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)(cid:26)(cid:28)(cid:24)(cid:18)(cid:20)(cid:29)(cid:29)(cid:22)(cid:24)(cid:13)(cid:22)(cid:29)(cid:25)(cid:28)(cid:20)(cid:17)(cid:19)(cid:14)(cid:30)(cid:23)(cid:30)(cid:23)(cid:6)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)(cid:24)(cid:26)(cid:9)

(cid:25)(cid:30)(cid:24)(cid:23)(cid:29)(cid:22)(cid:25)(cid:21)(cid:17)(cid:25)(cid:22)(cid:17)(cid:28)(cid:20)(cid:22)(cid:17)(cid:16)(cid:17)(cid:30)(cid:14)(cid:17)(cid:15)(cid:14)(cid:20)(cid:22)(cid:24)(cid:23)(cid:22)(cid:19)(cid:17)(cid:23)(cid:7)(cid:22)(cid:24)(cid:13)(cid:22)(cid:24)(cid:27)(cid:28)(cid:22)(cid:26)(cid:28)(cid:24)(cid:31)(cid:27)(cid:18)(cid:25)(cid:29)(cid:12)(cid:22)(cid:22)(cid:144)(cid:21)(cid:20)(cid:22)(cid:25)(cid:21)(cid:30)(cid:23)(cid:141)(cid:30)(cid:23)(cid:6)(cid:22)(cid:30)(cid:29)(cid:22)(cid:25)(cid:21)(cid:17)(cid:25)(cid:22)(cid:3)(cid:21)(cid:30)(cid:14)(cid:20)(cid:22)

(cid:3)(cid:20)(cid:22)(cid:28)(cid:20)(cid:19)(cid:17)(cid:30)(cid:23)(cid:22)(cid:18)(cid:24)(cid:19)(cid:19)(cid:30)(cid:25)(cid:25)(cid:20)(cid:31)(cid:22)(cid:25)(cid:24)(cid:22)(cid:24)‹(cid:20)(cid:28)(cid:30)(cid:23)(cid:6)(cid:22)(cid:13)(cid:17)(cid:15)(cid:28)(cid:30)(cid:18)(cid:4)(cid:22)(cid:13)(cid:28)(cid:17)(cid:19)(cid:20)(cid:4)(cid:22)(cid:17)(cid:23)(cid:31)(cid:22)‡(cid:23)(cid:30)(cid:29)(cid:21)(cid:22)(cid:24)(cid:26)(cid:25)(cid:30)(cid:24)(cid:23)(cid:29)(cid:4)(cid:22)(cid:3)(cid:20)(cid:22)(cid:23)(cid:20)(cid:20)(cid:31)(cid:22)(cid:25)(cid:24)(cid:22)

(cid:31)(cid:24)(cid:22)(cid:29)(cid:24)(cid:22)(cid:30)(cid:23)(cid:22)(cid:17)(cid:22)(cid:13)(cid:17)(cid:29)(cid:21)(cid:30)(cid:24)(cid:23)(cid:22)(cid:25)(cid:21)(cid:17)(cid:25)(cid:22)(cid:18)(cid:17)(cid:23)(cid:22)(cid:15)(cid:20)(cid:22)(cid:19)(cid:24)(cid:28)(cid:20)(cid:22)(cid:20)(cid:17)(cid:29)(cid:30)(cid:14)(cid:7)(cid:22)(cid:17)(cid:18)(cid:18)(cid:24)(cid:19)(cid:26)(cid:14)(cid:30)(cid:29)(cid:21)(cid:20)(cid:31)(cid:22)(cid:24)(cid:23)(cid:22)(cid:24)(cid:27)(cid:28)(cid:22)(cid:3)(cid:20)(cid:15)(cid:29)(cid:30)(cid:25)(cid:20)(cid:12)(cid:22)(cid:22)(cid:11)(cid:20)(cid:22)

(cid:15)(cid:20)(cid:6)(cid:17)(cid:23)(cid:22)(cid:25)(cid:24)(cid:22)(cid:25)(cid:21)(cid:30)(cid:23)(cid:141)(cid:22)(cid:31)(cid:30)‹(cid:20)(cid:28)(cid:20)(cid:23)(cid:25)(cid:14)(cid:7)(cid:22)(cid:17)(cid:15)(cid:24)(cid:27)(cid:25)(cid:22)(cid:24)(cid:27)(cid:28)(cid:22)(cid:18)(cid:27)(cid:29)(cid:25)(cid:24)(cid:19)(cid:22)(cid:24)(cid:26)(cid:25)(cid:30)(cid:24)(cid:23)(cid:29)(cid:22)(cid:30)(cid:23)(cid:22)(cid:19)(cid:30)(cid:31)(cid:9)‚ƒ‚ƒ(cid:22)(cid:17)(cid:23)(cid:31)(cid:22)(cid:25)(cid:21)(cid:20)(cid:22)(cid:10)(cid:23)(cid:20)(cid:3)(cid:22)

(cid:18)(cid:27)(cid:29)(cid:25)(cid:24)(cid:19)(cid:8)(cid:22)(cid:29)(cid:30)(cid:19)(cid:26)(cid:14)(cid:30)‡(cid:18)(cid:17)(cid:25)(cid:30)(cid:24)(cid:23)(cid:22)(cid:26)(cid:28)(cid:24)”(cid:20)(cid:18)(cid:25)(cid:22)(cid:30)(cid:29)(cid:22)(cid:23)(cid:24)(cid:3)(cid:22)(cid:27)(cid:23)(cid:31)(cid:20)(cid:28)(cid:3)(cid:17)(cid:7)(cid:12)(cid:22)(cid:22)•(cid:27)(cid:14)(cid:14)(cid:7)(cid:22)(cid:14)(cid:20)(cid:16)(cid:20)(cid:28)(cid:17)(cid:6)(cid:30)(cid:23)(cid:6)(cid:22)(cid:25)(cid:21)(cid:30)(cid:29)(cid:22)(cid:3)(cid:24)(cid:28)(cid:141)(cid:4)(cid:22)(cid:24)(cid:13)(cid:22)

(cid:18)(cid:24)(cid:27)(cid:28)(cid:29)(cid:20)(cid:4)(cid:22)(cid:3)(cid:30)(cid:14)(cid:14)(cid:22)(cid:28)(cid:20)ˆ(cid:27)(cid:30)(cid:28)(cid:20)(cid:22)(cid:17)(cid:23)(cid:22)(cid:30)(cid:23)(cid:25)(cid:27)(cid:30)(cid:25)(cid:30)(cid:16)(cid:20)(cid:22)(cid:3)(cid:20)(cid:15)(cid:22)(cid:20)(cid:2)(cid:26)(cid:20)(cid:28)(cid:30)(cid:20)(cid:23)(cid:18)(cid:20)(cid:22)(cid:25)(cid:21)(cid:17)(cid:25)(cid:22)(cid:17)(cid:14)(cid:14)(cid:24)(cid:3)(cid:29)(cid:22)(cid:18)(cid:24)(cid:23)(cid:29)(cid:27)(cid:19)(cid:20)(cid:28)(cid:29)(cid:22)(cid:25)(cid:24)(cid:22)(cid:20)(cid:17)(cid:29)(cid:9)

(cid:30)(cid:14)(cid:7)(cid:22)(cid:28)(cid:20)(cid:29)(cid:20)(cid:17)(cid:28)(cid:18)(cid:21)(cid:22)(cid:24)(cid:27)(cid:28)(cid:22)(cid:18)(cid:27)(cid:29)(cid:25)(cid:24)(cid:19)(cid:22)(cid:13)(cid:27)(cid:28)(cid:23)(cid:30)(cid:25)(cid:27)(cid:28)(cid:20)(cid:22)(cid:26)(cid:28)(cid:24)(cid:6)(cid:28)(cid:17)(cid:19)(cid:29)(cid:22)(cid:17)(cid:23)(cid:31)(cid:22)(cid:26)(cid:27)(cid:28)(cid:18)(cid:21)(cid:17)(cid:29)(cid:20)(cid:22)(cid:25)(cid:21)(cid:20)(cid:19)(cid:22)(cid:3)(cid:21)(cid:20)(cid:23)(cid:20)(cid:16)(cid:20)(cid:28)(cid:22)(cid:17)(cid:23)(cid:31)(cid:22)

(cid:31)(cid:30)(cid:29)(cid:28)(cid:27)(cid:26)(cid:28)(cid:25)(cid:24)(cid:23)(cid:22)

(cid:31)(cid:30)(cid:29)(cid:28)(cid:29)(cid:27)(cid:29)(cid:28)(cid:26)(cid:25)(cid:30)(cid:29)(cid:24)(cid:26)(cid:31)(cid:23)(cid:22)(cid:25)(cid:21)(cid:26)(cid:26)(cid:20)(cid:19)(cid:25)(cid:30)(cid:26)(cid:25)(cid:30)(cid:23)(cid:25)(cid:26)(cid:19)(cid:22)(cid:26)(cid:18)(cid:19)(cid:22)(cid:17)(cid:16)(cid:26)(cid:31)(cid:29)(cid:26)(cid:23)(cid:28)(cid:29)(cid:26)(cid:19)(cid:22)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:15)(cid:28)(cid:14)(cid:13)(cid:29)(cid:12)(cid:12)(cid:26)(cid:14)(cid:11)(cid:26)(cid:25)(cid:28)(cid:23)(cid:22)(cid:12)(cid:11)(cid:14)(cid:28)(cid:18)(cid:19)(cid:22)(cid:10)(cid:26)

(cid:14)(cid:9)(cid:28)(cid:26)(cid:19)(cid:22)(cid:25)(cid:29)(cid:28)(cid:22)(cid:23)(cid:8)(cid:26)(cid:17)(cid:23)(cid:25)(cid:23)(cid:26)(cid:25)(cid:14)(cid:26)(cid:18)(cid:23)(cid:7)(cid:29)(cid:26)(cid:19)(cid:25)(cid:26)(cid:12)(cid:9)(cid:19)(cid:25)(cid:23)(cid:6)(cid:8)(cid:29)(cid:26)(cid:11)(cid:14)(cid:28)(cid:26)(cid:23)(cid:26)(cid:22)(cid:29)(cid:31)(cid:26)(cid:11)(cid:9)(cid:8)(cid:8)(cid:24)(cid:26)(cid:25)(cid:28)(cid:23)(cid:22)(cid:12)(cid:23)(cid:13)(cid:25)(cid:19)(cid:14)(cid:22)(cid:23)(cid:8)(cid:26)(cid:31)(cid:29)(cid:6)(cid:12)(cid:19)(cid:25)(cid:29)(cid:26)(cid:15)(cid:8)(cid:23)(cid:25)(cid:5)

(cid:11)(cid:14)(cid:28)(cid:18)(cid:26)(cid:6)(cid:24)(cid:26)(cid:29)(cid:23)(cid:28)(cid:8)(cid:24)(cid:26)(cid:4)(cid:3)(cid:4)(cid:4)(cid:21)(cid:26)(cid:26)(cid:2)(cid:22)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:18)(cid:29)(cid:23)(cid:22)(cid:25)(cid:19)(cid:18)(cid:29)(cid:16)(cid:26)(cid:31)(cid:29)(cid:26)(cid:31)(cid:19)(cid:8)(cid:8)(cid:26)(cid:13)(cid:14)(cid:22)(cid:13)(cid:29)(cid:22)(cid:25)(cid:28)(cid:23)(cid:25)(cid:29)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:18)(cid:23)(cid:1)(cid:14)(cid:28)(cid:19)(cid:25)(cid:24)(cid:26)(cid:14)(cid:11)(cid:26)(cid:14)(cid:9)(cid:28)(cid:26)

(cid:18)(cid:23)(cid:28)(cid:7)(cid:29)(cid:25)(cid:19)(cid:22)(cid:10)(cid:26)(cid:17)(cid:14)(cid:8)(cid:8)(cid:23)(cid:28)(cid:12)(cid:26)(cid:19)(cid:22)(cid:26)(cid:15)(cid:9)(cid:28)(cid:12)(cid:9)(cid:19)(cid:25)(cid:26)(cid:14)(cid:11)(cid:26)(cid:17)(cid:19)(cid:10)(cid:19)(cid:25)(cid:23)(cid:8)(cid:26)(cid:29)(cid:22)(cid:10)(cid:23)(cid:10)(cid:29)(cid:18)(cid:29)(cid:22)(cid:25)(cid:26)(cid:25)(cid:30)(cid:28)(cid:14)(cid:9)(cid:10)(cid:30)(cid:26)(cid:29)(cid:5)(cid:18)(cid:23)(cid:19)(cid:8)(cid:16)(cid:26)(cid:12)(cid:29)(cid:23)(cid:28)(cid:13)(cid:30)(cid:16)(cid:26)(cid:23)(cid:22)(cid:17)(cid:26)

(cid:12)(cid:14)(cid:13)(cid:19)(cid:23)(cid:8)(cid:26)(cid:18)(cid:29)(cid:17)(cid:19)(cid:23)(cid:21)

(cid:127)(cid:9)(cid:12)(cid:19)(cid:22)(cid:10)(cid:26)(cid:14)(cid:9)(cid:28)(cid:26)(cid:6)(cid:28)(cid:19)(cid:13)(cid:7)(cid:26)(cid:23)(cid:22)(cid:17)(cid:26)(cid:18)(cid:14)(cid:28)(cid:25)(cid:23)(cid:28)(cid:26)(cid:29)(cid:129)(cid:15)(cid:29)(cid:28)(cid:19)(cid:29)(cid:22)(cid:13)(cid:29)(cid:26)(cid:31)(cid:19)(cid:25)(cid:30)(cid:26)(cid:14)(cid:9)(cid:28)(cid:26)(cid:17)(cid:19)(cid:10)(cid:19)(cid:25)(cid:23)(cid:8)(cid:26)(cid:29)(cid:13)(cid:14)(cid:12)(cid:24)(cid:12)(cid:25)(cid:29)(cid:18)(cid:26)(cid:19)(cid:12)(cid:26)(cid:23)(cid:22)(cid:26)(cid:29)(cid:141)(cid:14)(cid:28)(cid:25)(cid:26)

(cid:25)(cid:30)(cid:23)(cid:25)(cid:26)(cid:19)(cid:12)(cid:26)(cid:10)(cid:23)(cid:19)(cid:22)(cid:19)(cid:22)(cid:10)(cid:26)(cid:25)(cid:28)(cid:23)(cid:13)(cid:25)(cid:19)(cid:14)(cid:22)(cid:26)(cid:23)(cid:22)(cid:17)(cid:26)(cid:31)(cid:19)(cid:8)(cid:8)(cid:26)(cid:6)(cid:29)(cid:13)(cid:14)(cid:18)(cid:29)(cid:26)(cid:18)(cid:14)(cid:28)(cid:29)(cid:26)(cid:15)(cid:28)(cid:14)(cid:22)(cid:14)(cid:9)(cid:22)(cid:13)(cid:29)(cid:17)(cid:26)(cid:19)(cid:22)(cid:26)(cid:4)(cid:3)(cid:4)(cid:143)(cid:21)(cid:26)(cid:26)(cid:144)(cid:14)(cid:12)(cid:25)(cid:26)(cid:14)(cid:11)(cid:26)

(cid:14)(cid:9)(cid:28)(cid:26)(cid:17)(cid:19)(cid:10)(cid:19)(cid:25)(cid:23)(cid:8)(cid:26)(cid:18)(cid:23)(cid:28)(cid:7)(cid:29)(cid:25)(cid:19)(cid:22)(cid:10)(cid:26)(cid:19)(cid:12)(cid:26)(cid:10)(cid:29)(cid:14)(cid:5)(cid:25)(cid:23)(cid:28)(cid:10)(cid:29)(cid:25)(cid:29)(cid:17)(cid:26)(cid:23)(cid:28)(cid:14)(cid:9)(cid:22)(cid:17)(cid:26)(cid:14)(cid:9)(cid:28)(cid:26)(cid:28)(cid:29)(cid:25)(cid:23)(cid:19)(cid:8)(cid:26)(cid:22)(cid:29)(cid:25)(cid:31)(cid:14)(cid:28)(cid:7)(cid:26)(cid:23)(cid:22)(cid:17)(cid:26)(cid:19)(cid:12)(cid:26)(cid:17)(cid:29)(cid:12)(cid:19)(cid:10)(cid:22)(cid:29)(cid:17)(cid:26)

(cid:25)(cid:14)(cid:26)(cid:13)(cid:28)(cid:29)(cid:23)(cid:25)(cid:29)(cid:26)(cid:23)(cid:26)(cid:17)(cid:29)(cid:12)(cid:19)(cid:28)(cid:29)(cid:26)(cid:11)(cid:14)(cid:28)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:13)(cid:14)(cid:22)(cid:12)(cid:9)(cid:18)(cid:29)(cid:28)(cid:26)(cid:25)(cid:14)(cid:26)(cid:27)(cid:19)(cid:12)(cid:19)(cid:25)(cid:26)(cid:14)(cid:9)(cid:28)(cid:26)(cid:12)(cid:25)(cid:14)(cid:28)(cid:29)(cid:21)(cid:26)(cid:26)(cid:157)(cid:27)(cid:29)(cid:22)(cid:26)(cid:25)(cid:30)(cid:14)(cid:9)(cid:10)(cid:30)(cid:26)(cid:14)(cid:9)(cid:28)(cid:26)(cid:15)(cid:30)(cid:24)(cid:12)(cid:19)(cid:13)(cid:23)(cid:8)(cid:26)

(cid:12)(cid:25)(cid:14)(cid:28)(cid:29)(cid:26)(cid:25)(cid:28)(cid:23) (cid:13)(cid:26)(cid:17)(cid:29)(cid:13)(cid:8)(cid:19)(cid:22)(cid:29)(cid:17)(cid:26)(cid:23)(cid:10)(cid:23)(cid:19)(cid:22)(cid:26)(cid:19)(cid:22)(cid:26)(cid:4)(cid:3)(cid:4)(cid:3)(cid:16)(cid:26)(cid:13)(cid:14)(cid:22)(cid:12)(cid:9)(cid:18)(cid:29)(cid:28)(cid:12)(cid:26)(cid:25)(cid:30)(cid:23)(cid:25)(cid:26)(cid:13)(cid:23)(cid:18)(cid:29)(cid:26)(cid:25)(cid:14)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:12)(cid:25)(cid:14)(cid:28)(cid:29)(cid:26)(cid:30)(cid:23)(cid:17)(cid:26)(cid:17)(cid:14)(cid:22)(cid:29)(cid:26)

(cid:25)(cid:30)(cid:29)(cid:19)(cid:28)(cid:26)(cid:28)(cid:29)(cid:12)(cid:29)(cid:23)(cid:28)(cid:13)(cid:30)(cid:26)(cid:14)(cid:22)(cid:26) (cid:23)(cid:12)(cid:12)(cid:29)(cid:25)(cid:25)(cid:26)(cid:23)(cid:22)(cid:17)(cid:26)(cid:30)(cid:23)(cid:17)(cid:26)(cid:23)(cid:26)(cid:30)(cid:19)(cid:10)(cid:30)(cid:29)(cid:28)(cid:26)(cid:15)(cid:28)(cid:14)(cid:15)(cid:29)(cid:22)(cid:12)(cid:19)(cid:25)(cid:24)(cid:26)(cid:25)(cid:14)(cid:26)(cid:25)(cid:28)(cid:23)(cid:22)(cid:12)(cid:23)(cid:13)(cid:25)(cid:21)(cid:26)(cid:26)€(cid:30)(cid:29)(cid:28)(cid:29)(cid:11)(cid:14)(cid:28)(cid:29)(cid:16)(cid:26)

(cid:31)(cid:29)(cid:26)(cid:13)(cid:14)(cid:22)(cid:12)(cid:19)(cid:17)(cid:29)(cid:28)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:25)(cid:23)(cid:13)(cid:25)(cid:19)(cid:8)(cid:29)(cid:26)(cid:15)(cid:28)(cid:29)(cid:12)(cid:29)(cid:22)(cid:25)(cid:23)(cid:25)(cid:19)(cid:14)(cid:22)(cid:26)(cid:14)(cid:11)(cid:26)(cid:14)(cid:9)(cid:28)(cid:26)(cid:15)(cid:28)(cid:14)(cid:17)(cid:9)(cid:13)(cid:25)(cid:12)(cid:26)(cid:25)(cid:30)(cid:23)(cid:25)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:15)(cid:30)(cid:24)(cid:12)(cid:19)(cid:13)(cid:23)(cid:8)(cid:26)(cid:12)(cid:25)(cid:14)(cid:28)(cid:29)(cid:26)(cid:15)(cid:28)(cid:14)(cid:5)

(cid:27)(cid:19)(cid:17)(cid:29)(cid:12)(cid:26)(cid:23)‚(cid:29)(cid:28)(cid:26)(cid:19)(cid:22)(cid:19)(cid:25)(cid:19)(cid:23)(cid:8)(cid:26)(cid:28)(cid:29)(cid:12)(cid:29)(cid:23)(cid:28)(cid:13)(cid:30)(cid:26)(cid:19)(cid:12)(cid:26)(cid:13)(cid:14)(cid:22)(cid:17)(cid:9)(cid:13)(cid:25)(cid:29)(cid:17)(cid:26)(cid:14)(cid:22)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:31)(cid:29)(cid:6)(cid:26)(cid:25)(cid:14)(cid:26)(cid:6)(cid:29)(cid:26)(cid:23)(cid:26)(cid:11)(cid:9)(cid:22)(cid:17)(cid:23)(cid:18)(cid:29)(cid:22)(cid:25)(cid:23)(cid:8)(cid:26)(cid:29)(cid:8)(cid:29)(cid:18)(cid:29)(cid:22)(cid:25)(cid:26)

(cid:14)(cid:11)(cid:26)(cid:14)(cid:9)(cid:28)(cid:26)(cid:12)(cid:25)(cid:28)(cid:23)(cid:25)(cid:29)(cid:10)(cid:24)(cid:21)(cid:26)(cid:26)(cid:144)(cid:29)(cid:23)(cid:22)(cid:31)(cid:30)(cid:19)(cid:8)(cid:29)(cid:16)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:13)(cid:14)(cid:22)(cid:13)(cid:29)(cid:15)(cid:25)(cid:26)(cid:14)(cid:11)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)ƒ(cid:27)(cid:19)(cid:28)(cid:25)(cid:9)(cid:23)(cid:8)(cid:26)(cid:23)(cid:15)(cid:15)(cid:14)(cid:19)(cid:22)(cid:25)(cid:18)(cid:29)(cid:22)(cid:25)„(cid:26)(cid:12)(cid:15)(cid:28)(cid:23)(cid:22)(cid:10)(cid:26)

(cid:11)(cid:28)(cid:14)(cid:18)(cid:26) (cid:25)(cid:30)(cid:29)(cid:26) (cid:18)(cid:23)(cid:22)(cid:17)(cid:23)(cid:25)(cid:14)(cid:28)(cid:24)(cid:26) (cid:13)(cid:8)(cid:14)(cid:12)(cid:9)(cid:28)(cid:29)(cid:12)(cid:26) (cid:25)(cid:30)(cid:23)(cid:25)(cid:26) (cid:31)(cid:29)(cid:28)(cid:29)(cid:26) (cid:15)(cid:28)(cid:14)(cid:18)(cid:9)(cid:8)(cid:10)(cid:23)(cid:25)(cid:29)(cid:17)(cid:26) (cid:6)(cid:24)(cid:26) (cid:8)(cid:14)(cid:13)(cid:23)(cid:8)(cid:26) (cid:23)(cid:9)(cid:25)(cid:30)(cid:14)(cid:28)(cid:19)(cid:25)(cid:19)(cid:29)(cid:12)(cid:26) (cid:19)(cid:22)(cid:26)

(cid:144)(cid:23)(cid:28)(cid:13)(cid:30)(cid:16)(cid:26)…(cid:15)(cid:28)(cid:19)(cid:8)(cid:16)(cid:26)(cid:144)(cid:23)(cid:24)(cid:16)(cid:26)(cid:23)(cid:22)(cid:17)(cid:26)†(cid:9)(cid:22)(cid:29)(cid:21)(cid:26)(cid:26)…(cid:26)(cid:27)(cid:19)(cid:28)(cid:25)(cid:9)(cid:23)(cid:8)(cid:26)(cid:23)(cid:15)(cid:15)(cid:14)(cid:19)(cid:22)(cid:25)(cid:18)(cid:29)(cid:22)(cid:25)(cid:26)(cid:18)(cid:29)(cid:23)(cid:22)(cid:12)(cid:26)(cid:25)(cid:30)(cid:23)(cid:25)(cid:26)(cid:14)(cid:9)(cid:28)(cid:26)(cid:17)(cid:29)(cid:12)(cid:19)(cid:10)(cid:22)(cid:29)(cid:28)(cid:12)(cid:26)

(cid:29)(cid:22)(cid:10)(cid:23)(cid:10)(cid:29)(cid:26)(cid:23)(cid:22)(cid:17)(cid:26)(cid:15)(cid:28)(cid:14)(cid:27)(cid:19)(cid:17)(cid:29)(cid:26)(cid:19)(cid:22)(cid:25)(cid:29)(cid:28)(cid:19)(cid:14)(cid:28)(cid:26)(cid:17)(cid:29)(cid:12)(cid:19)(cid:10)(cid:22)(cid:26)(cid:12)(cid:14)(cid:8)(cid:9)(cid:25)(cid:19)(cid:14)(cid:22)(cid:12)(cid:26)(cid:14)(cid:22)(cid:26)(cid:23)(cid:22)(cid:26)(cid:29)(cid:8)(cid:29)(cid:13)(cid:25)(cid:28)(cid:14)(cid:22)(cid:19)(cid:13)(cid:26)(cid:17)(cid:29)(cid:27)(cid:19)(cid:13)(cid:29)(cid:21)(cid:26)(cid:26)…(cid:8)(cid:25)(cid:30)(cid:14)(cid:9)(cid:10)(cid:30)(cid:26)

(cid:18)(cid:23)(cid:22)(cid:24)(cid:26)(cid:14)(cid:11)(cid:26)(cid:25)(cid:30)(cid:29)(cid:12)(cid:29)(cid:26)(cid:25)(cid:28)(cid:23)(cid:22)(cid:12)(cid:23)(cid:13)(cid:25)(cid:19)(cid:14)(cid:22)(cid:12)(cid:26)(cid:18)(cid:23)(cid:24)(cid:26)‡(cid:22)(cid:23)(cid:8)(cid:8)(cid:24)(cid:26)(cid:19)(cid:22)(cid:27)(cid:14)(cid:8)(cid:27)(cid:29)(cid:26)(cid:23)(cid:26)(cid:15)(cid:30)(cid:24)(cid:12)(cid:19)(cid:13)(cid:23)(cid:8)(cid:26)(cid:12)(cid:25)(cid:14)(cid:28)(cid:29)(cid:26)(cid:27)(cid:19)(cid:12)(cid:19)(cid:25)(cid:16)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:14)(cid:28)(cid:19)(cid:10)(cid:19)(cid:22)(cid:23)(cid:8)(cid:26)

(cid:13)(cid:14)(cid:22)(cid:22)(cid:29)(cid:13)(cid:25)(cid:19)(cid:14)(cid:22)(cid:26)(cid:19)(cid:12)(cid:26)(cid:18)(cid:23)(cid:17)(cid:29)(cid:26)(cid:17)(cid:19)(cid:10)(cid:19)(cid:25)(cid:23)(cid:8)(cid:8)(cid:24)(cid:26)(cid:23)(cid:22)(cid:17)(cid:26)(cid:18)(cid:14)(cid:28)(cid:29)(cid:26)(cid:14)‚(cid:29)(cid:22)(cid:26)(cid:25)(cid:30)(cid:23)(cid:22)(cid:26)(cid:22)(cid:14)(cid:25)(cid:26)(cid:19)(cid:22)(cid:27)(cid:14)(cid:8)(cid:27)(cid:29)(cid:12)(cid:26)(cid:23)(cid:26)(cid:1)(cid:14)(cid:19)(cid:22)(cid:25)(cid:26)(cid:12)(cid:29)(cid:12)(cid:12)(cid:19)(cid:14)(cid:22)(cid:26)

(cid:14)(cid:22)(cid:26) (cid:25)(cid:30)(cid:29)(cid:26)  (cid:23)(cid:12)(cid:12)(cid:29)(cid:25)(cid:25)(cid:26) (cid:31)(cid:29)(cid:6)(cid:12)(cid:19)(cid:25)(cid:29)(cid:21)(cid:26) (cid:26) ˆ(cid:9)(cid:28)(cid:26) (cid:23)(cid:6)(cid:19)(cid:8)(cid:19)(cid:25)(cid:24)(cid:26) (cid:25)(cid:14)(cid:26) (cid:13)(cid:23)(cid:15)(cid:25)(cid:9)(cid:28)(cid:29)(cid:26) (cid:29)(cid:18)(cid:23)(cid:19)(cid:8)(cid:26) (cid:23)(cid:17)(cid:17)(cid:28)(cid:29)(cid:12)(cid:12)(cid:29)(cid:12)(cid:26) (cid:23)(cid:22)(cid:17)(cid:26) (cid:15)(cid:28)(cid:14)(cid:27)(cid:19)(cid:17)(cid:29)(cid:26)

(cid:13)(cid:14)(cid:22)(cid:12)(cid:9)(cid:18)(cid:29)(cid:28)(cid:12)(cid:26)(cid:31)(cid:19)(cid:25)(cid:30)(cid:26)(cid:23)(cid:26)(cid:15)(cid:29)(cid:28)(cid:12)(cid:14)(cid:22)(cid:23)(cid:8)(cid:19)‰(cid:29)(cid:17)(cid:26)(cid:29)(cid:129)(cid:15)(cid:29)(cid:28)(cid:19)(cid:29)(cid:22)(cid:13)(cid:29)(cid:26)(cid:25)(cid:30)(cid:28)(cid:14)(cid:9)(cid:10)(cid:30)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:25)(cid:28)(cid:23)(cid:22)(cid:12)(cid:23)(cid:13)(cid:25)(cid:19)(cid:14)(cid:22)(cid:23)(cid:8)(cid:26)(cid:11)(cid:9)(cid:22)(cid:22)(cid:29)(cid:8)(cid:26)(cid:19)(cid:12)(cid:26)

(cid:6)(cid:29)(cid:13)(cid:14)(cid:18)(cid:19)(cid:22)(cid:10)(cid:26)(cid:18)(cid:14)(cid:28)(cid:29)(cid:26)(cid:12)(cid:14)(cid:15)(cid:30)(cid:19)(cid:12)(cid:25)(cid:19)(cid:13)(cid:23)(cid:25)(cid:29)(cid:17)(cid:26)(cid:23)(cid:22)(cid:17)(cid:26)(cid:8)(cid:14)(cid:13)(cid:23)(cid:8)(cid:19)‰(cid:29)(cid:17)(cid:26)(cid:23)(cid:28)(cid:14)(cid:9)(cid:22)(cid:17)(cid:26)(cid:19)(cid:22)(cid:17)(cid:19)(cid:27)(cid:19)(cid:17)(cid:9)(cid:23)(cid:8)(cid:26)(cid:12)(cid:25)(cid:14)(cid:28)(cid:29)(cid:26)(cid:8)(cid:14)(cid:13)(cid:23)(cid:25)(cid:19)(cid:14)(cid:22)(cid:12)(cid:21)(cid:26)(cid:26)

ˆ(cid:22)(cid:13)(cid:29)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:13)(cid:14)(cid:22)(cid:12)(cid:9)(cid:18)(cid:29)(cid:28)(cid:26)(cid:17)(cid:14)(cid:29)(cid:12)(cid:26)(cid:29)(cid:22)(cid:25)(cid:29)(cid:28)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:15)(cid:30)(cid:24)(cid:12)(cid:19)(cid:13)(cid:23)(cid:8)(cid:26)(cid:8)(cid:14)(cid:13)(cid:23)(cid:25)(cid:19)(cid:14)(cid:22)(cid:16)(cid:26)(cid:31)(cid:29)(cid:26)(cid:22)(cid:29)(cid:29)(cid:17)(cid:26)(cid:25)(cid:14)(cid:26)(cid:18)(cid:23)(cid:7)(cid:29)(cid:26)ƒ(cid:29)(cid:27)(cid:29)(cid:28)(cid:24)(cid:26)

(cid:12)(cid:25)(cid:14)(cid:28)(cid:29)(cid:26)(cid:10)(cid:28)(cid:29)(cid:23)(cid:25)„(cid:21)(cid:26)(cid:26)(cid:20)(cid:19)(cid:25)(cid:30)(cid:26)(cid:25)(cid:30)(cid:23)(cid:25)(cid:26)(cid:10)(cid:14)(cid:23)(cid:8)(cid:26)(cid:19)(cid:22)(cid:26)(cid:18)(cid:19)(cid:22)(cid:17)(cid:16)(cid:26)(cid:31)(cid:29)(cid:26)(cid:13)(cid:8)(cid:14)(cid:12)(cid:29)(cid:17)(cid:26)(cid:14)(cid:28)(cid:26)(cid:17)(cid:19)(cid:17)(cid:26)(cid:22)(cid:14)(cid:25)(cid:26)(cid:28)(cid:29)(cid:22)(cid:29)(cid:31)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:8)(cid:29)(cid:23)(cid:12)(cid:29)(cid:26)(cid:14)(cid:22)(cid:26)

(cid:12)(cid:29)(cid:27)(cid:29)(cid:22)(cid:26)(cid:12)(cid:25)(cid:14)(cid:28)(cid:29)(cid:26)(cid:8)(cid:14)(cid:13)(cid:23)(cid:25)(cid:19)(cid:14)(cid:22)(cid:12)(cid:26)(cid:19)(cid:22)(cid:26)(cid:4)(cid:3)(cid:4)(cid:3)(cid:21)(cid:26)(cid:26)(cid:20)(cid:29)(cid:26)(cid:23)(cid:28)(cid:29)(cid:26)(cid:29)(cid:27)(cid:23)(cid:8)(cid:9)(cid:23)(cid:25)(cid:19)(cid:22)(cid:10)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)Š(cid:9)(cid:23)(cid:8)(cid:19)(cid:25)(cid:24)(cid:26)(cid:14)(cid:11)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:28)(cid:29)(cid:23)(cid:8)(cid:26)(cid:29)(cid:12)(cid:25)(cid:23)(cid:25)(cid:29)(cid:26)

(cid:19)(cid:22)(cid:26)(cid:29)(cid:23)(cid:13)(cid:30)(cid:26)(cid:12)(cid:25)(cid:14)(cid:28)(cid:29)(cid:26)(cid:18)(cid:23)(cid:28)(cid:7)(cid:29)(cid:25)(cid:26)(cid:23)(cid:22)(cid:17)(cid:26)(cid:31)(cid:19)(cid:8)(cid:8)(cid:26)(cid:6)(cid:29)(cid:10)(cid:19)(cid:22)(cid:26)(cid:25)(cid:14)(cid:26)(cid:19)(cid:22)(cid:27)(cid:29)(cid:12)(cid:25)(cid:26)(cid:19)(cid:22)(cid:26)(cid:14)(cid:9)(cid:28)(cid:26)(cid:6)(cid:29)(cid:25)(cid:25)(cid:29)(cid:28)(cid:26)(cid:12)(cid:25)(cid:14)(cid:28)(cid:29)(cid:12)(cid:26)(cid:23)(cid:15)(cid:15)(cid:29)(cid:23)(cid:28)(cid:23)(cid:22)(cid:13)(cid:29)(cid:26)(cid:14)(cid:28)(cid:26)

(cid:18)(cid:23)(cid:7)(cid:29)(cid:26)(cid:15)(cid:8)(cid:23)(cid:22)(cid:12)(cid:26)(cid:25)(cid:14)(cid:26)(cid:18)(cid:14)(cid:27)(cid:29)(cid:26)(cid:12)(cid:25)(cid:14)(cid:28)(cid:29)(cid:12)(cid:26)(cid:25)(cid:14)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:22)(cid:29)(cid:129)(cid:25)(cid:26)(cid:10)(cid:29)(cid:22)(cid:29)(cid:28)(cid:23)(cid:25)(cid:19)(cid:14)(cid:22)(cid:26)(cid:14)(cid:11)(cid:26)(cid:28)(cid:29)(cid:23)(cid:8)(cid:26)(cid:29)(cid:12)(cid:25)(cid:23)(cid:25)(cid:29)(cid:26)(cid:31)(cid:30)(cid:29)(cid:22)(cid:26)(cid:31)(cid:23)(cid:28)(cid:28)(cid:23)(cid:22)(cid:25)(cid:29)(cid:17)(cid:21)(cid:26)(cid:26)

€(cid:30)(cid:29)(cid:26)(cid:28)(cid:29)(cid:17)(cid:9)(cid:13)(cid:25)(cid:19)(cid:14)(cid:22)(cid:26)(cid:19)(cid:22)(cid:26)(cid:29)(cid:129)(cid:15)(cid:29)(cid:22)(cid:12)(cid:29)(cid:26)(cid:12)(cid:25)(cid:28)(cid:9)(cid:13)(cid:25)(cid:9)(cid:28)(cid:29)(cid:26)(cid:25)(cid:30)(cid:23)(cid:25)(cid:26)(cid:31)(cid:23)(cid:12)(cid:26)(cid:19)(cid:22)(cid:12)(cid:25)(cid:19)(cid:25)(cid:9)(cid:25)(cid:29)(cid:17)(cid:26)(cid:19)(cid:22)(cid:26)(cid:4)(cid:3)(cid:4)(cid:3)(cid:26)(cid:23)(cid:22)(cid:17)(cid:26)(cid:14)(cid:9)(cid:28)(cid:26)(cid:28)(cid:29)(cid:25)(cid:9)(cid:28)(cid:22)(cid:26)

(cid:25)(cid:14)(cid:26)(cid:28)(cid:29)(cid:25)(cid:23)(cid:19)(cid:8)(cid:26)(cid:15)(cid:28)(cid:14)‡(cid:25)(cid:23)(cid:6)(cid:19)(cid:8)(cid:19)(cid:25)(cid:24)(cid:26)(cid:19)(cid:22)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:11)(cid:14)(cid:9)(cid:28)(cid:25)(cid:30)(cid:26)Š(cid:9)(cid:23)(cid:28)(cid:25)(cid:29)(cid:28)(cid:26)(cid:15)(cid:14)(cid:12)(cid:19)(cid:25)(cid:19)(cid:14)(cid:22)(cid:12)(cid:26)(cid:9)(cid:12)(cid:26)(cid:31)(cid:29)(cid:8)(cid:8)(cid:26)(cid:25)(cid:14)(cid:26)(cid:13)(cid:23)(cid:15)(cid:19)(cid:25)(cid:23)(cid:8)(cid:19)‰(cid:29)(cid:26)(cid:14)(cid:22)(cid:26)(cid:14)(cid:9)(cid:28)(cid:26)

(cid:28)(cid:29)(cid:25)(cid:23)(cid:19)(cid:8)(cid:26)(cid:12)(cid:23)(cid:8)(cid:29)(cid:12)(cid:26)(cid:6)(cid:23)(cid:13)(cid:7)(cid:8)(cid:14)(cid:10)(cid:16)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:8)(cid:23)(cid:28)(cid:10)(cid:29)(cid:12)(cid:25)(cid:26)(cid:19)(cid:22)(cid:26)(cid:14)(cid:9)(cid:28)(cid:26)(cid:15)(cid:14)(cid:12)(cid:12)(cid:29)(cid:12)(cid:12)(cid:19)(cid:14)(cid:22)(cid:26)(cid:12)(cid:19)(cid:22)(cid:13)(cid:29)(cid:26)(cid:14)(cid:9)(cid:28)(cid:26)‡(cid:28)(cid:12)(cid:25)(cid:26)(cid:12)(cid:25)(cid:14)(cid:28)(cid:29)(cid:26)(cid:14)(cid:15)(cid:29)(cid:22)(cid:29)(cid:17)(cid:26)(cid:19)(cid:22)(cid:26)

(cid:143)‹‹Œ(cid:21)

€(cid:30)(cid:29)(cid:26)(cid:12)(cid:9)(cid:28)(cid:10)(cid:29)(cid:26)(cid:19)(cid:22)(cid:26)(cid:31)(cid:30)(cid:14)(cid:8)(cid:29)(cid:12)(cid:23)(cid:8)(cid:29)(cid:26)(cid:12)(cid:23)(cid:8)(cid:29)(cid:12)(cid:26)(cid:25)(cid:14)(cid:26)(cid:28)(cid:29)(cid:25)(cid:23)(cid:19)(cid:8)(cid:29)(cid:28)(cid:12)(cid:26)(cid:14)(cid:9)(cid:25)(cid:12)(cid:19)(cid:17)(cid:29)(cid:26)(cid:14)(cid:11)(cid:26)(cid:14)(cid:9)(cid:28)(cid:26)(cid:12)(cid:25)(cid:14)(cid:28)(cid:29)(cid:26)(cid:22)(cid:29)(cid:25)(cid:31)(cid:14)(cid:28)(cid:7)(cid:26)(cid:31)(cid:23)(cid:12)(cid:26)(cid:23)(cid:22)(cid:14)(cid:25)(cid:30)(cid:5)

(cid:29)(cid:28)(cid:26)(cid:19)(cid:22)(cid:25)(cid:29)(cid:28)(cid:29)(cid:12)(cid:25)(cid:19)(cid:22)(cid:10)(cid:26)(cid:17)(cid:29)(cid:27)(cid:29)(cid:8)(cid:14)(cid:15)(cid:18)(cid:29)(cid:22)(cid:25)(cid:26)(cid:19)(cid:22)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:6)(cid:23)(cid:13)(cid:7)(cid:26)(cid:30)(cid:23)(cid:8)(cid:11)(cid:26)(cid:14)(cid:11)(cid:26)(cid:4)(cid:3)(cid:4)(cid:3)(cid:21)(cid:26)(cid:26)…(cid:12)(cid:26)(cid:11)(cid:23)(cid:12)(cid:25)(cid:26)(cid:23)(cid:12)(cid:26)(cid:12)(cid:23)(cid:8)(cid:29)(cid:12)(cid:26)(cid:25)(cid:14)(cid:26)(cid:14)(cid:9)(cid:28)(cid:26)(cid:14)(cid:31)(cid:22)(cid:26)

(cid:12)(cid:25)(cid:14)(cid:28)(cid:29)(cid:12)(cid:26)(cid:10)(cid:28)(cid:29)(cid:31)(cid:16)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)Ž‘’(cid:26)(cid:19)(cid:22)(cid:13)(cid:28)(cid:29)(cid:23)(cid:12)(cid:29)(cid:26)(cid:25)(cid:14)(cid:26)(cid:14)(cid:9)(cid:28)(cid:26)ƒ(cid:14)(cid:15)(cid:29)(cid:22)(cid:26)(cid:18)(cid:23)(cid:28)(cid:7)(cid:29)(cid:25)„(cid:26)(cid:13)(cid:30)(cid:23)(cid:22)(cid:22)(cid:29)(cid:8)(cid:12)(cid:26)(cid:31)(cid:23)(cid:12)(cid:26)(cid:29)(cid:27)(cid:29)(cid:22)(cid:26)(cid:6)(cid:19)(cid:10)(cid:10)(cid:29)(cid:28)(cid:21)(cid:26)(cid:26)

€(cid:30)(cid:19)(cid:12)(cid:26)(cid:17)(cid:19)(cid:17)(cid:26)(cid:22)(cid:14)(cid:25)(cid:26)(cid:30)(cid:23)(cid:15)(cid:15)(cid:29)(cid:22)(cid:26)(cid:6)(cid:24)(cid:26)(cid:23)(cid:13)(cid:13)(cid:19)(cid:17)(cid:29)(cid:22)(cid:25)(cid:26)“(cid:26)(cid:31)(cid:30)(cid:29)(cid:22)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:19)(cid:22)(cid:13)(cid:14)(cid:18)(cid:19)(cid:22)(cid:10)(cid:26)(cid:6)(cid:9)(cid:12)(cid:19)(cid:22)(cid:29)(cid:12)(cid:12)(cid:26)(cid:18)(cid:9)(cid:12)(cid:30)(cid:28)(cid:14)(cid:14)(cid:18)(cid:29)(cid:17)(cid:26)

(cid:23)(cid:25)(cid:26)(cid:18)(cid:19)(cid:17)(cid:5)(cid:24)(cid:29)(cid:23)(cid:28)(cid:16)(cid:26)(cid:31)(cid:29)(cid:26)(cid:31)(cid:29)(cid:28)(cid:29)(cid:26)(cid:28)(cid:29)(cid:23)(cid:17)(cid:24)(cid:21)(cid:26)(cid:26)€(cid:30)(cid:29)(cid:28)(cid:29)(cid:26)(cid:31)(cid:29)(cid:28)(cid:29)(cid:26)(cid:11)(cid:14)(cid:9)(cid:28)(cid:26)(cid:13)(cid:28)(cid:19)(cid:25)(cid:19)(cid:13)(cid:23)(cid:8)(cid:26)(cid:11)(cid:23)(cid:13)(cid:25)(cid:14)(cid:28)(cid:12)(cid:26)(cid:19)(cid:22)(cid:26)(cid:25)(cid:30)(cid:19)(cid:12)(cid:26) (cid:17)(cid:29)(cid:27)(cid:29)(cid:8)(cid:14)(cid:15)(cid:5)

(cid:18)(cid:29)(cid:22)(cid:25)(cid:21)(cid:26)(cid:26)(cid:127)(cid:19)(cid:28)(cid:12)(cid:25)(cid:16)(cid:26)(cid:14)(cid:9)(cid:28)(cid:26)(cid:143)(cid:3)(cid:3)(cid:26) (cid:23)(cid:12)(cid:12)(cid:29)(cid:25)(cid:25)(cid:26)”(cid:29)(cid:12)(cid:19)(cid:10)(cid:22)(cid:26)•(cid:29)(cid:22)(cid:25)(cid:29)(cid:28)(cid:26)ƒ(cid:12)(cid:25)(cid:14)(cid:28)(cid:29)(cid:26)(cid:31)(cid:19)(cid:25)(cid:30)(cid:19)(cid:22)(cid:26)(cid:23)(cid:26)(cid:12)(cid:25)(cid:14)(cid:28)(cid:29)„(cid:26)(cid:23)(cid:13)(cid:13)(cid:14)(cid:9)(cid:22)(cid:25)(cid:12)(cid:26)(cid:30)(cid:23)(cid:27)(cid:29)(cid:26)

(cid:6)(cid:29)(cid:29)(cid:22)(cid:26)(cid:13)(cid:14)(cid:22)(cid:12)(cid:19)(cid:12)(cid:25)(cid:29)(cid:22)(cid:25)(cid:8)(cid:24)(cid:26)(cid:15)(cid:14)(cid:12)(cid:25)(cid:19)(cid:22)(cid:10)(cid:26)(cid:10)(cid:28)(cid:14)(cid:31)(cid:25)(cid:30)(cid:26)(cid:11)(cid:14)(cid:28)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:15)(cid:23)(cid:12)(cid:25)(cid:26)(cid:12)(cid:29)(cid:27)(cid:29)(cid:28)(cid:23)(cid:8)(cid:26)(cid:24)(cid:29)(cid:23)(cid:28)(cid:12)(cid:21)(cid:26)(cid:26)€(cid:30)(cid:29)(cid:19)(cid:28)(cid:26)(cid:14)(cid:31)(cid:22)(cid:29)(cid:28)(cid:12)(cid:30)(cid:19)(cid:15)(cid:12)–(cid:26)

(cid:31)(cid:19)(cid:8)(cid:8)(cid:19)(cid:22)(cid:10)(cid:22)(cid:29)(cid:12)(cid:12)(cid:26)(cid:25)(cid:14)(cid:26)(cid:29)(cid:129)(cid:29)(cid:13)(cid:9)(cid:25)(cid:29)(cid:26)(cid:14)(cid:9)(cid:28)(cid:26)(cid:18)(cid:23)(cid:28)(cid:7)(cid:29)(cid:25)(cid:19)(cid:22)(cid:10)(cid:26)(cid:23)(cid:22)(cid:17)(cid:26)(cid:18)(cid:29)(cid:28)(cid:13)(cid:30)(cid:23)(cid:22)(cid:17)(cid:19)(cid:12)(cid:19)(cid:22)(cid:10)(cid:26)(cid:15)(cid:28)(cid:14)(cid:10)(cid:28)(cid:23)(cid:18)(cid:12)(cid:26)(cid:30)(cid:23)(cid:12)(cid:26)(cid:30)(cid:19)(cid:25)(cid:26)(cid:19)(cid:25)(cid:12)(cid:26)

(cid:12)(cid:25)(cid:28)(cid:19)(cid:17)(cid:29)(cid:21)(cid:26)(cid:26)—(cid:29)(cid:13)(cid:14)(cid:22)(cid:17)(cid:16)(cid:26)(cid:25)(cid:30)(cid:29)(cid:26)(cid:15)(cid:23)(cid:22)(cid:17)(cid:29)(cid:18)(cid:19)(cid:13)(cid:26)(cid:13)(cid:23)(cid:9)(cid:12)(cid:29)(cid:17)(cid:26)(cid:17)(cid:19)(cid:12)(cid:28)(cid:9)(cid:15)(cid:25)(cid:19)(cid:14)(cid:22)(cid:26)(cid:25)(cid:14)(cid:26)(cid:6)(cid:9)(cid:12)(cid:19)(cid:22)(cid:29)(cid:12)(cid:12)(cid:26)(cid:18)(cid:14)(cid:17)(cid:29)(cid:8)(cid:12)(cid:26)(cid:25)(cid:30)(cid:28)(cid:14)(cid:9)(cid:10)(cid:30)(cid:5)

(cid:31)(cid:30)(cid:29)(cid:28)(cid:27)(cid:26)(cid:28)(cid:25)(cid:24)(cid:23)(cid:22)

(cid:31)(cid:30)(cid:29)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:25)(cid:24)(cid:23)(cid:30)(cid:22)(cid:29)(cid:21)(cid:20)(cid:28)(cid:19)(cid:24)(cid:23)(cid:28)(cid:26)(cid:18)(cid:26)(cid:21)(cid:20)(cid:28)(cid:17)(cid:31)(cid:16)(cid:15)(cid:19)(cid:24)(cid:20)(cid:28)(cid:23)(cid:26)(cid:19)(cid:14)(cid:29)(cid:28)(cid:13)(cid:25)(cid:29)(cid:27)(cid:28)(cid:25)(cid:29)(cid:28)(cid:23)(cid:25)(cid:12)(cid:26)(cid:21)(cid:26)(cid:24)(cid:29)(cid:14)(cid:20)(cid:11)(cid:28)(cid:28)(cid:10)(cid:24)(cid:26)(cid:28)(cid:31)(cid:9)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:21)(cid:26)(cid:22)(cid:30)(cid:14)(cid:29)(cid:22)(cid:28)

(cid:13)(cid:19)(cid:22)(cid:28)(cid:19)(cid:28)(cid:21)(cid:26)(cid:22)(cid:27)(cid:30)(cid:8)(cid:25)(cid:24)(cid:7)(cid:28)(cid:31)(cid:9)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:23)(cid:26)(cid:17)(cid:6)(cid:28)(cid:25)(cid:24)(cid:28)(cid:29)(cid:26)(cid:21)(cid:16)(cid:22)(cid:28)(cid:31)(cid:9)(cid:28)(cid:29)(cid:21)(cid:19)(cid:23)(cid:25)(cid:29)(cid:25)(cid:31)(cid:24)(cid:19)(cid:14)(cid:28)(cid:23)(cid:26)(cid:19)(cid:14)(cid:26)(cid:21)(cid:28)(cid:14)(cid:31)(cid:20)(cid:19)(cid:14)(cid:29)(cid:25)(cid:26)(cid:22)(cid:28)(cid:19)(cid:24)(cid:23)(cid:28)(cid:25)(cid:24)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)

(cid:17)(cid:31)(cid:16)(cid:15)(cid:31)(cid:22)(cid:25)(cid:29)(cid:25)(cid:31)(cid:24)(cid:28)(cid:31)(cid:9)(cid:28)(cid:25)(cid:24)(cid:23)(cid:26)(cid:15)(cid:26)(cid:24)(cid:23)(cid:26)(cid:24)(cid:29)(cid:28)(cid:22)(cid:19)(cid:14)(cid:26)(cid:22)(cid:28)(cid:21)(cid:26)(cid:15)(cid:28)(cid:31)(cid:21)(cid:7)(cid:19)(cid:24)(cid:25)(cid:5)(cid:19)(cid:29)(cid:25)(cid:31)(cid:24)(cid:22)(cid:11)(cid:28)(cid:28)(cid:4)(cid:26)(cid:28)(cid:13)(cid:26)(cid:21)(cid:26)(cid:28)(cid:19)(cid:3)(cid:14)(cid:26)(cid:28)(cid:29)(cid:31)(cid:28)(cid:3)(cid:21)(cid:25)(cid:24)(cid:7)(cid:28)(cid:31)(cid:24)(cid:28)

(cid:22)(cid:26)(cid:18)(cid:26)(cid:21)(cid:19)(cid:14)(cid:28)(cid:24)(cid:26)(cid:13)(cid:28)(cid:22)(cid:19)(cid:14)(cid:26)(cid:22)(cid:28)(cid:21)(cid:26)(cid:15)(cid:22)(cid:28)(cid:9)(cid:21)(cid:31)(cid:16)(cid:28)(cid:18)(cid:19)(cid:21)(cid:25)(cid:31)(cid:30)(cid:22)(cid:28)(cid:17)(cid:31)(cid:16)(cid:15)(cid:26)(cid:29)(cid:25)(cid:29)(cid:31)(cid:21)(cid:22)(cid:28)(cid:19)(cid:24)(cid:23)(cid:28)(cid:29)(cid:27)(cid:25)(cid:22)(cid:28)(cid:25)(cid:24)(cid:28)(cid:29)(cid:30)(cid:21)(cid:24)(cid:28)(cid:31)(cid:15)(cid:26)(cid:24)(cid:26)(cid:23)(cid:28)(cid:24)(cid:26)(cid:13)(cid:28)

(cid:23)(cid:31)(cid:31)(cid:21)(cid:22)(cid:28)(cid:9)(cid:31)(cid:21)(cid:28)(cid:2)(cid:19)(cid:22)(cid:22)(cid:26)(cid:29)(cid:29)(cid:28)(cid:25)(cid:24)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:23)(cid:26)(cid:19)(cid:14)(cid:26)(cid:21)(cid:28)(cid:17)(cid:31)(cid:16)(cid:16)(cid:30)(cid:24)(cid:25)(cid:29)(cid:20)(cid:11)(cid:28)(cid:28)(cid:1)(cid:24)(cid:28)(cid:22)(cid:27)(cid:31)(cid:21)(cid:29)(cid:127)(cid:28)(cid:13)(cid:26)(cid:28)(cid:15)(cid:25)(cid:17)(cid:6)(cid:26)(cid:23)(cid:28)(cid:30)(cid:15)(cid:28)(cid:16)(cid:19)(cid:21)(cid:6)(cid:26)(cid:29)(cid:28)(cid:22)(cid:27)(cid:19)(cid:21)(cid:26)(cid:28)

(cid:13)(cid:25)(cid:29)(cid:27)(cid:28)(cid:24)(cid:26)(cid:13)(cid:28)(cid:2)(cid:19)(cid:22)(cid:22)(cid:26)(cid:29)(cid:29)(cid:28)(cid:21)(cid:26)(cid:15)(cid:22)(cid:28)(cid:22)(cid:26)(cid:14)(cid:14)(cid:25)(cid:24)(cid:7)(cid:28)(cid:24)(cid:26)(cid:13)(cid:28)(cid:19)(cid:17)(cid:17)(cid:31)(cid:30)(cid:24)(cid:29)(cid:22)(cid:11)(cid:28)(cid:28)(cid:129)(cid:26)(cid:141)(cid:29)(cid:127)(cid:28)(cid:31)(cid:30)(cid:21)(cid:28)(cid:143)(cid:14)(cid:30)(cid:3)(cid:28)(cid:144)(cid:26)(cid:18)(cid:26)(cid:14)(cid:28)(cid:3)(cid:20)(cid:28)(cid:2)(cid:19)(cid:22)(cid:22)(cid:26)(cid:29)(cid:29)(cid:28)

(cid:25)(cid:16)(cid:15)(cid:31)(cid:21)(cid:29)(cid:26)(cid:23)(cid:28)(cid:16)(cid:31)(cid:29)(cid:25)(cid:31)(cid:24)(cid:28)(cid:15)(cid:21)(cid:31)(cid:7)(cid:21)(cid:19)(cid:16)(cid:28)(cid:13)(cid:19)(cid:22)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:15)(cid:21)(cid:25)(cid:16)(cid:19)(cid:21)(cid:20)(cid:28)(cid:18)(cid:26)(cid:27)(cid:25)(cid:17)(cid:14)(cid:26)(cid:28)(cid:3)(cid:20)(cid:28)(cid:13)(cid:27)(cid:25)(cid:17)(cid:27)(cid:28)(cid:13)(cid:26)(cid:28)(cid:7)(cid:26)(cid:24)(cid:26)(cid:21)(cid:19)(cid:29)(cid:26)(cid:23)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)

(cid:24)(cid:26)(cid:13)(cid:28) (cid:19)(cid:17)(cid:17)(cid:31)(cid:30)(cid:24)(cid:29)(cid:28) (cid:3)(cid:30)(cid:22)(cid:25)(cid:24)(cid:26)(cid:22)(cid:22)(cid:11)(cid:28) (cid:28) (cid:157)(cid:27)(cid:26)(cid:28) (cid:25)(cid:16)(cid:15)(cid:31)(cid:21)(cid:29)(cid:26)(cid:23)(cid:28) (cid:14)(cid:26)(cid:19)(cid:29)(cid:27)(cid:26)(cid:21)(cid:28) (cid:30)(cid:15)(cid:27)(cid:31)(cid:14)(cid:22)(cid:29)(cid:26)(cid:21)(cid:26)(cid:23)(cid:28) (cid:16)(cid:31)(cid:29)(cid:25)(cid:31)(cid:24)(cid:28) (cid:9)(cid:30)(cid:21)(cid:24)(cid:25)(cid:29)(cid:30)(cid:21)(cid:26)(cid:28)

(cid:17)(cid:19)(cid:29)(cid:26)(cid:7)(cid:31)(cid:21)(cid:20)(cid:28)(cid:27)(cid:19)(cid:22)(cid:28)(cid:3)(cid:26)(cid:26)(cid:24)(cid:28)(cid:7)(cid:19)(cid:25)(cid:24)(cid:25)(cid:24)(cid:7)(cid:28)(cid:21)(cid:26)(cid:29)(cid:19)(cid:25)(cid:14)(cid:28)(cid:22)(cid:19)(cid:14)(cid:26)(cid:22)(cid:28)(cid:22)(cid:27)(cid:19)(cid:21)(cid:26)(cid:28)(cid:9)(cid:31)(cid:21)(cid:28)(cid:22)(cid:26)(cid:18)(cid:26)(cid:21)(cid:19)(cid:14)(cid:28)(cid:20)(cid:26)(cid:19)(cid:21)(cid:22)(cid:11)(cid:28)(cid:28) (cid:31)(cid:22)(cid:29)(cid:28)(cid:31)(cid:9)(cid:28)(cid:29)(cid:27)(cid:25)(cid:22)(cid:28)(cid:15)(cid:21)(cid:31)(cid:23) 

(cid:30)(cid:17)(cid:29)(cid:28)(cid:13)(cid:19)(cid:22)(cid:28)(cid:15)(cid:21)(cid:31)(cid:23)(cid:30)(cid:17)(cid:26)(cid:23)(cid:28)(cid:25)(cid:24)(cid:28)(cid:143)(cid:27)(cid:25)(cid:24)(cid:19)(cid:28)(cid:19)(cid:24)(cid:23)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:22)(cid:26)(cid:21)(cid:18)(cid:25)(cid:17)(cid:26)(cid:28)(cid:19)(cid:24)(cid:23)(cid:28)€(cid:30)(cid:19)(cid:14)(cid:25)(cid:29)(cid:20)(cid:28)(cid:31)(cid:9)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:7)(cid:31)(cid:31)(cid:23)(cid:22)(cid:28)(cid:27)(cid:19)(cid:22)(cid:28)(cid:3)(cid:26)(cid:26)(cid:24)(cid:28)

(cid:22)(cid:19)(cid:29)(cid:25)(cid:22)(cid:9)(cid:19)(cid:17)(cid:29)(cid:31)(cid:21)(cid:20)(cid:11)(cid:28)(cid:28)(cid:1)(cid:24)(cid:28)(cid:31)(cid:30)(cid:21)(cid:28)(cid:17)(cid:19)(cid:22)(cid:26)(cid:127)(cid:28)(cid:13)(cid:26)(cid:28)(cid:27)(cid:19)(cid:23)(cid:28)(cid:23)(cid:26)(cid:19)(cid:14)(cid:29)(cid:28)(cid:13)(cid:25)(cid:29)(cid:27)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:22)(cid:19)(cid:16)(cid:26)(cid:28)‚(cid:31)(cid:24)(cid:7)(cid:28)ƒ(cid:31)(cid:24)(cid:7)(cid:28)(cid:3)(cid:19)(cid:22)(cid:26)(cid:23)(cid:28)(cid:22)(cid:30)(cid:15)(cid:15)(cid:14)(cid:25) 

(cid:26)(cid:21)(cid:28)(cid:9)(cid:31)(cid:21)(cid:28)(cid:29)(cid:13)(cid:26)(cid:24)(cid:29)(cid:20)(cid:28)(cid:20)(cid:26)(cid:19)(cid:21)(cid:22)(cid:11)(cid:28)(cid:28)„(cid:24)(cid:29)(cid:26)(cid:21)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:157)(cid:21)(cid:30)(cid:16)(cid:15)(cid:28)…(cid:23)(cid:16)(cid:25)(cid:24)(cid:25)(cid:22)(cid:29)(cid:21)(cid:19)(cid:29)(cid:25)(cid:31)(cid:24)†(cid:22)(cid:28)‡ˆ‰(cid:28)(cid:29)(cid:19)(cid:21)(cid:25)(cid:12)(cid:28)(cid:31)(cid:24)(cid:28)(cid:143)(cid:27)(cid:25)(cid:24)(cid:26)(cid:22)(cid:26)(cid:28)

(cid:16)(cid:19)(cid:23)(cid:26)(cid:28)(cid:9)(cid:30)(cid:21)(cid:24)(cid:25)(cid:29)(cid:30)(cid:21)(cid:26)(cid:28)(cid:29)(cid:31)(cid:28)(cid:17)(cid:31)(cid:24)(cid:18)(cid:30)(cid:14)(cid:22)(cid:26)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:24)(cid:31)(cid:21)(cid:16)(cid:28)(cid:19)(cid:24)(cid:23)(cid:28)(cid:22)(cid:26)(cid:24)(cid:23)(cid:28)(cid:16)(cid:19)(cid:24)(cid:30)(cid:9)(cid:19)(cid:17)(cid:29)(cid:30)(cid:21)(cid:26)(cid:21)(cid:22)(cid:28)(cid:19)(cid:24)(cid:23)(cid:28)(cid:25)(cid:16)(cid:15)(cid:31)(cid:21)(cid:29)(cid:26)(cid:21)(cid:22)(cid:28)

(cid:25)(cid:24)(cid:29)(cid:31)(cid:28)(cid:19)(cid:28)(cid:16)(cid:19)(cid:23)(cid:28)(cid:22)(cid:17)(cid:21)(cid:19)(cid:16)(cid:3)(cid:14)(cid:26)(cid:28)(cid:29)(cid:31)(cid:28)(cid:21)(cid:26)(cid:26)(cid:22)(cid:29)(cid:19)(cid:3)(cid:14)(cid:25)(cid:22)(cid:27)(cid:28)(cid:14)(cid:31)(cid:24)(cid:7)(cid:28)(cid:22)(cid:29)(cid:19)(cid:24)(cid:23)(cid:25)(cid:24)(cid:7)(cid:28)(cid:3)(cid:30)(cid:22)(cid:25)(cid:24)(cid:26)(cid:22)(cid:22)(cid:28)(cid:16)(cid:31)(cid:23)(cid:26)(cid:14)(cid:22)(cid:11)(cid:28)(cid:28)(cid:10)(cid:30)(cid:21)(cid:28)(cid:22)(cid:29)(cid:21)(cid:31)(cid:24)(cid:7)(cid:28)

(cid:21)(cid:26)(cid:14)(cid:19)(cid:29)(cid:25)(cid:31)(cid:24)(cid:22)(cid:27)(cid:25)(cid:15)(cid:28)(cid:13)(cid:25)(cid:29)(cid:27)(cid:28)(cid:31)(cid:30)(cid:21)(cid:28)(cid:22)(cid:30)(cid:15)(cid:15)(cid:14)(cid:25)(cid:26)(cid:21)(cid:28)(cid:19)(cid:24)(cid:23)(cid:28)(cid:27)(cid:25)(cid:22)(cid:28)(cid:24)(cid:25)(cid:16)(cid:3)(cid:14)(cid:26)(cid:28)(cid:16)(cid:31)(cid:18)(cid:26)(cid:28)(cid:29)(cid:31)(cid:28)(cid:29)(cid:19)(cid:21)(cid:25)(cid:12)(cid:28)(cid:9)(cid:21)(cid:26)(cid:26)(cid:28)(cid:157)(cid:27)(cid:19)(cid:25)(cid:14)(cid:19)(cid:24)(cid:23)(cid:28)(cid:27)(cid:19)(cid:22)(cid:28)

(cid:19)(cid:24)(cid:23)(cid:28)(cid:13)(cid:25)(cid:14)(cid:14)(cid:28)(cid:17)(cid:31)(cid:24)(cid:29)(cid:25)(cid:24)(cid:30)(cid:26)(cid:28)(cid:29)(cid:31)(cid:28)(cid:15)(cid:19)(cid:20)(cid:28)(cid:23)(cid:25)(cid:18)(cid:25)(cid:23)(cid:26)(cid:24)(cid:23)(cid:22)(cid:11)(cid:28)(cid:28)(cid:4)(cid:26)(cid:28)(cid:19)(cid:21)(cid:26)(cid:28)(cid:21)(cid:26)(cid:17)(cid:26)(cid:25)(cid:18)(cid:25)(cid:24)(cid:7)(cid:28)(cid:29)(cid:31)(cid:15)(cid:28)€(cid:30)(cid:19)(cid:14)(cid:25)(cid:29)(cid:20)(cid:28)(cid:7)(cid:31)(cid:31)(cid:23)(cid:22)(cid:28)(cid:9)(cid:21)(cid:31)(cid:16)(cid:28)(cid:19)(cid:28)

(cid:23)(cid:26)(cid:23)(cid:25)(cid:17)(cid:19)(cid:29)(cid:26)(cid:23)(cid:28)(cid:2)(cid:19)(cid:22)(cid:22)(cid:26)(cid:29)(cid:29)(cid:28)(cid:9)(cid:19)(cid:17)(cid:25)(cid:14)(cid:25)(cid:29)(cid:20)(cid:28)(cid:25)(cid:24)(cid:28)(cid:157)(cid:27)(cid:19)(cid:25)(cid:14)(cid:19)(cid:24)(cid:23)(cid:28)(cid:13)(cid:27)(cid:25)(cid:17)(cid:27)(cid:28)(cid:27)(cid:19)(cid:22)(cid:28)(cid:26)(cid:24)(cid:19)(cid:3)(cid:14)(cid:26)(cid:23)(cid:28)(cid:30)(cid:22)(cid:28)(cid:29)(cid:31)(cid:28)(cid:22)(cid:13)(cid:25)Š(cid:14)(cid:20)(cid:28)(cid:17)(cid:19)(cid:15)(cid:29)(cid:30)(cid:21)(cid:26)(cid:28)

(cid:24)(cid:26)(cid:13)(cid:28)(cid:3)(cid:30)(cid:22)(cid:25)(cid:24)(cid:26)(cid:22)(cid:22)(cid:11)(cid:28)(cid:28)‹(cid:25)(cid:24)(cid:19)(cid:14)(cid:14)(cid:20)(cid:127)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:19)(cid:17)€(cid:30)(cid:25)(cid:22)(cid:25)(cid:29)(cid:25)(cid:31)(cid:24)(cid:22)(cid:28)(cid:31)(cid:9)(cid:28)(cid:31)(cid:30)(cid:29)(cid:23)(cid:31)(cid:31)(cid:21)(cid:28)(cid:9)(cid:30)(cid:21)(cid:24)(cid:25)(cid:29)(cid:30)(cid:21)(cid:26)(cid:28)(cid:17)(cid:31)(cid:16)(cid:15)(cid:19)(cid:24)(cid:25)(cid:26)(cid:22)(cid:28)(cid:29)(cid:27)(cid:19)(cid:29)(cid:28)(cid:13)(cid:26)(cid:28)

(cid:16)(cid:19)(cid:23)(cid:26)(cid:28)(cid:25)(cid:24)(cid:28)‡ŒŽ‘(cid:28)(cid:19)(cid:24)(cid:23)(cid:28)‡ŒŽ’(cid:28)(cid:17)(cid:31)(cid:24)(cid:29)(cid:21)(cid:25)(cid:3)(cid:30)(cid:29)(cid:26)(cid:23)(cid:28)(cid:29)(cid:31)(cid:28)(cid:31)(cid:30)(cid:21)(cid:28)(cid:22)(cid:29)(cid:21)(cid:31)(cid:24)(cid:7)(cid:28)“(cid:24)(cid:25)(cid:22)(cid:27)(cid:28)(cid:29)(cid:31)(cid:28)‡Œ‡Œ(cid:11)(cid:28)(cid:28)(cid:144)(cid:19)(cid:24)(cid:26)(cid:28)”(cid:26)(cid:24)(cid:29)(cid:30)(cid:21)(cid:26)(cid:28)

(cid:27)(cid:19)(cid:22)(cid:28)(cid:3)(cid:26)(cid:26)(cid:24)(cid:28)(cid:21)(cid:26)(cid:16)(cid:19)(cid:23)(cid:26)(cid:28)(cid:25)(cid:24)(cid:29)(cid:31)(cid:28)(cid:19)(cid:28)(cid:14)(cid:26)(cid:19)(cid:24)(cid:26)(cid:21)(cid:28)(cid:17)(cid:31)(cid:16)(cid:15)(cid:19)(cid:24)(cid:20)(cid:28)(cid:29)(cid:27)(cid:19)(cid:29)(cid:28)(cid:25)(cid:22)(cid:28)(cid:29)(cid:30)(cid:21)(cid:24)(cid:25)(cid:24)(cid:7)(cid:28)(cid:25)(cid:29)(cid:22)(cid:28)(cid:25)(cid:24)(cid:18)(cid:26)(cid:24)(cid:29)(cid:31)(cid:21)(cid:20)(cid:28)(cid:9)(cid:19)(cid:22)(cid:29)(cid:26)(cid:21)(cid:127)(cid:28)(cid:22)(cid:26)(cid:21) 

(cid:18)(cid:25)(cid:17)(cid:25)(cid:24)(cid:7)(cid:28)(cid:25)(cid:29)(cid:22)(cid:28)(cid:23)(cid:26)(cid:19)(cid:14)(cid:26)(cid:21)(cid:22)(cid:28)(cid:3)(cid:26)(cid:29)(cid:29)(cid:26)(cid:21)(cid:127)(cid:28)(cid:19)(cid:24)(cid:23)(cid:28)(cid:7)(cid:21)(cid:31)(cid:13)(cid:25)(cid:24)(cid:7)(cid:28)(cid:25)(cid:29)(cid:22)(cid:28)(cid:29)(cid:31)(cid:15)(cid:28)(cid:14)(cid:25)(cid:24)(cid:26)(cid:11)(cid:28)(cid:28)(cid:4)(cid:26)(cid:28)(cid:19)(cid:14)(cid:22)(cid:31)(cid:28)(cid:27)(cid:19)(cid:18)(cid:26)(cid:28)(cid:27)(cid:25)(cid:7)(cid:27)(cid:28)(cid:27)(cid:31)(cid:15)(cid:26)(cid:22)(cid:28)(cid:9)(cid:31)(cid:21)(cid:28)

(cid:29)(cid:27)(cid:26)(cid:28)(cid:24)(cid:19)(cid:22)(cid:17)(cid:26)(cid:24)(cid:29)(cid:28)(cid:2)(cid:19)(cid:22)(cid:22)(cid:26)(cid:29)(cid:29)(cid:28)(cid:10)(cid:30)(cid:29)(cid:23)(cid:31)(cid:31)(cid:21)(cid:127)(cid:28)(cid:14)(cid:19)(cid:30)(cid:24)(cid:17)(cid:27)(cid:26)(cid:23)(cid:28)(cid:25)(cid:24)(cid:28) (cid:19)(cid:21)(cid:17)(cid:27)(cid:28)‡Œ‡Œ(cid:28)(cid:25)(cid:24)(cid:28)(cid:17)(cid:31)(cid:24)•(cid:30)(cid:24)(cid:17)(cid:29)(cid:25)(cid:31)(cid:24)(cid:28)(cid:13)(cid:25)(cid:29)(cid:27)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)

(cid:24)(cid:19)(cid:29)(cid:25)(cid:31)(cid:24)(cid:13)(cid:25)(cid:23)(cid:26)(cid:28)(cid:22)(cid:27)(cid:30)(cid:29)(cid:23)(cid:31)(cid:13)(cid:24)(cid:11)(cid:28)(cid:28)(cid:4)(cid:26)(cid:28)(cid:19)(cid:21)(cid:26)(cid:28)(cid:17)(cid:31)(cid:16)(cid:16)(cid:25)(cid:29)(cid:29)(cid:26)(cid:23)(cid:28)(cid:29)(cid:31)(cid:28)(cid:26)(cid:22)(cid:29)(cid:19)(cid:3)(cid:14)(cid:25)(cid:22)(cid:27)(cid:25)(cid:24)(cid:7)(cid:28)(cid:19)(cid:28)(cid:22)(cid:29)(cid:21)(cid:31)(cid:24)(cid:7)(cid:28)(cid:15)(cid:21)(cid:26)(cid:22)(cid:26)(cid:24)(cid:17)(cid:26)(cid:28)(cid:9)(cid:31)(cid:21)(cid:28)

(cid:29)(cid:27)(cid:25)(cid:22)(cid:28)(cid:14)(cid:25)(cid:24)(cid:26)(cid:127)(cid:28)(cid:13)(cid:27)(cid:25)(cid:17)(cid:27)(cid:28)(cid:25)(cid:22)(cid:28)(cid:22)(cid:31)(cid:14)(cid:23)(cid:28)(cid:26)(cid:141)(cid:17)(cid:14)(cid:30)(cid:22)(cid:25)(cid:18)(cid:26)(cid:14)(cid:20)(cid:28)(cid:25)(cid:24)(cid:28)(cid:2)(cid:19)(cid:22)(cid:22)(cid:26)(cid:29)(cid:29)(cid:28)(cid:22)(cid:29)(cid:31)(cid:21)(cid:26)(cid:22)(cid:28)(cid:19)(cid:24)(cid:23)(cid:28)(cid:31)(cid:24)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:13)(cid:26)(cid:3)(cid:11)

(cid:2)(cid:19)(cid:22)(cid:22)(cid:26)(cid:29)(cid:29)(cid:28) (cid:16)(cid:19)(cid:24)(cid:19)(cid:7)(cid:26)(cid:16)(cid:26)(cid:24)(cid:29)(cid:28) (cid:25)(cid:22)(cid:28) (cid:9)(cid:31)(cid:21)(cid:29)(cid:30)(cid:24)(cid:19)(cid:29)(cid:26)(cid:28) (cid:29)(cid:31)(cid:28) (cid:17)(cid:31)(cid:14)(cid:14)(cid:19)(cid:3)(cid:31)(cid:21)(cid:19)(cid:29)(cid:26)(cid:28) (cid:13)(cid:25)(cid:29)(cid:27)(cid:28) (cid:19)(cid:28) (cid:27)(cid:25)(cid:7)(cid:27)(cid:14)(cid:20)(cid:28) €(cid:30)(cid:19)(cid:14)(cid:25)“(cid:26)(cid:23)(cid:28) (cid:19)(cid:24)(cid:23)(cid:28)

(cid:26)(cid:24)(cid:7)(cid:19)(cid:7)(cid:26)(cid:23)(cid:28)(cid:2)(cid:31)(cid:19)(cid:21)(cid:23)(cid:28)(cid:31)(cid:9)(cid:28)–(cid:25)(cid:21)(cid:26)(cid:17)(cid:29)(cid:31)(cid:21)(cid:22)(cid:11)(cid:28)(cid:28)—(cid:26)(cid:18)(cid:26)(cid:21)(cid:19)(cid:14)(cid:28)(cid:24)(cid:26)(cid:13)(cid:28)(cid:16)(cid:26)(cid:16)(cid:3)(cid:26)(cid:21)(cid:22)(cid:28)(cid:27)(cid:19)(cid:18)(cid:26)(cid:28)•(cid:31)(cid:25)(cid:24)(cid:26)(cid:23)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:21)(cid:19)(cid:24)(cid:6)(cid:22)(cid:28)(cid:29)(cid:31)(cid:28)

(cid:15)(cid:21)(cid:31)(cid:18)(cid:25)(cid:23)(cid:26)(cid:28)(cid:3)(cid:31)(cid:19)(cid:21)(cid:23)(cid:28)(cid:22)(cid:26)(cid:21)(cid:18)(cid:25)(cid:17)(cid:26)(cid:28)(cid:31)(cid:18)(cid:26)(cid:21)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:15)(cid:19)(cid:22)(cid:29)(cid:28)(cid:9)(cid:26)(cid:13)(cid:28)(cid:20)(cid:26)(cid:19)(cid:21)(cid:22)(cid:11)(cid:28)(cid:28)(cid:4)(cid:25)(cid:29)(cid:27)(cid:28)(cid:29)(cid:27)(cid:19)(cid:29)(cid:28)(cid:17)(cid:31)(cid:16)(cid:26)(cid:22)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:23)(cid:26)(cid:15)(cid:19)(cid:21)(cid:29)(cid:30)(cid:21)(cid:26)(cid:28)

(cid:31)(cid:9)(cid:28)(cid:29)(cid:26)(cid:24)(cid:30)(cid:21)(cid:26)(cid:23)(cid:28)(cid:16)(cid:26)(cid:16)(cid:3)(cid:26)(cid:21)(cid:22)(cid:11)(cid:28)(cid:28)…(cid:29)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:26)(cid:24)(cid:23)(cid:28)(cid:31)(cid:9)(cid:28)‡ŒŽ’(cid:127)(cid:28)˜(cid:26)(cid:31)(cid:21)(cid:7)(cid:26)(cid:28)™(cid:2)(cid:30)(cid:24)(cid:6)(cid:20)š(cid:28)‚(cid:26)(cid:24)(cid:23)(cid:26)(cid:21)(cid:22)(cid:31)(cid:24)(cid:28)(cid:21)(cid:26)(cid:29)(cid:25)(cid:21)(cid:26)(cid:23)(cid:28)

(cid:9)(cid:21)(cid:31)(cid:16)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:2)(cid:31)(cid:19)(cid:21)(cid:23)(cid:28)(cid:23)(cid:30)(cid:26)(cid:28)(cid:29)(cid:31)(cid:28)(cid:19)(cid:28)(cid:27)(cid:26)(cid:19)(cid:14)(cid:29)(cid:27)(cid:28)(cid:17)(cid:31)(cid:24)(cid:23)(cid:25)(cid:29)(cid:25)(cid:31)(cid:24)(cid:11)(cid:28)(cid:28)(cid:2)(cid:30)(cid:24)(cid:6)(cid:20)(cid:28)(cid:22)(cid:26)(cid:21)(cid:18)(cid:26)(cid:23)(cid:28)(cid:2)(cid:19)(cid:22)(cid:22)(cid:26)(cid:29)(cid:29)(cid:28)(cid:18)(cid:26)(cid:21)(cid:20)(cid:28)(cid:17)(cid:19)(cid:15)(cid:19)(cid:3)(cid:14)(cid:20)(cid:28)

(cid:9)(cid:31)(cid:21)(cid:28)Žˆ(cid:28)(cid:20)(cid:26)(cid:19)(cid:21)(cid:22)(cid:28)(cid:19)(cid:24)(cid:23)(cid:28)(cid:13)(cid:19)(cid:22)(cid:28)(cid:19)(cid:28)(cid:22)(cid:29)(cid:19)(cid:14)(cid:13)(cid:19)(cid:21)(cid:29)(cid:28)›(cid:28)(cid:31)(cid:24)(cid:26)(cid:28)(cid:31)(cid:9)(cid:28)(cid:31)(cid:30)(cid:21)(cid:28)(cid:14)(cid:26)(cid:19)(cid:23)(cid:26)(cid:21)(cid:22)(cid:28)(cid:19)(cid:24)(cid:23)(cid:28)(cid:13)(cid:26)(cid:28)(cid:29)(cid:27)(cid:19)(cid:24)(cid:6)(cid:28)(cid:27)(cid:25)(cid:16)(cid:28)(cid:9)(cid:31)(cid:21)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)

(cid:19)(cid:12)(cid:19)(cid:3)(cid:14)(cid:26)(cid:28)(cid:16)(cid:19)(cid:24)(cid:24)(cid:26)(cid:21)(cid:28)(cid:25)(cid:24)(cid:28)(cid:13)(cid:27)(cid:25)(cid:17)(cid:27)(cid:28)(cid:27)(cid:26)(cid:28)(cid:16)(cid:19)(cid:23)(cid:26)(cid:28)(cid:30)(cid:22)(cid:28)(cid:29)(cid:27)(cid:25)(cid:24)(cid:6)(cid:28)(cid:19)(cid:3)(cid:31)(cid:30)(cid:29)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:29)(cid:31)(cid:30)(cid:7)(cid:27)(cid:28)€(cid:30)(cid:26)(cid:22)(cid:29)(cid:25)(cid:31)(cid:24)(cid:22)(cid:11)(cid:28)(cid:28)œ(cid:31)(cid:25)(cid:24)(cid:25)(cid:24)(cid:7)(cid:28)

(cid:25)(cid:24)(cid:28)‡Œ‡Œ(cid:28)(cid:13)(cid:19)(cid:22)(cid:28)„(cid:16)(cid:16)(cid:19)(cid:28)(cid:2)(cid:19)(cid:29)(cid:29)(cid:14)(cid:26)(cid:127)(cid:28)(cid:13)(cid:27)(cid:31)(cid:28)(cid:15)(cid:21)(cid:31)(cid:18)(cid:25)(cid:23)(cid:26)(cid:23)(cid:28)(cid:29)(cid:21)(cid:26)(cid:16)(cid:26)(cid:24)(cid:23)(cid:31)(cid:30)(cid:22)(cid:28)(cid:27)(cid:26)(cid:14)(cid:15)(cid:28)(cid:29)(cid:31)(cid:28)(cid:30)(cid:22)(cid:28)(cid:25)(cid:24)(cid:28)(cid:27)(cid:26)(cid:21)(cid:28)(cid:9)(cid:31)(cid:21)(cid:16)(cid:19) 

(cid:29)(cid:25)(cid:18)(cid:26)(cid:28)(cid:13)(cid:31)(cid:21)(cid:6)(cid:28)(cid:13)(cid:25)(cid:29)(cid:27)(cid:28)(cid:31)(cid:30)(cid:21)(cid:28)(cid:23)(cid:25)(cid:7)(cid:25)(cid:29)(cid:19)(cid:14)(cid:28)(cid:16)(cid:19)(cid:21)(cid:6)(cid:26)(cid:29)(cid:25)(cid:24)(cid:7)(cid:28)(cid:22)(cid:29)(cid:19)(cid:12)(cid:28)(cid:19)(cid:22)(cid:28)(cid:19)(cid:28)(cid:17)(cid:31)(cid:24)(cid:22)(cid:30)(cid:14)(cid:29)(cid:19)(cid:24)(cid:29)(cid:11)(cid:28)(cid:28)…Š(cid:26)(cid:21)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:26)(cid:24)(cid:7)(cid:19)(cid:7)(cid:26)(cid:16)(cid:26)(cid:24)(cid:29)(cid:28)

(cid:26)(cid:24)(cid:23)(cid:26)(cid:23)(cid:127)(cid:28) (cid:13)(cid:26)(cid:28) (cid:13)(cid:26)(cid:21)(cid:26)(cid:28) (cid:22)(cid:31)(cid:28) (cid:25)(cid:16)(cid:15)(cid:21)(cid:26)(cid:22)(cid:22)(cid:26)(cid:23)(cid:28) (cid:29)(cid:27)(cid:19)(cid:29)(cid:28) (cid:13)(cid:26)(cid:28) (cid:15)(cid:21)(cid:26)(cid:18)(cid:19)(cid:25)(cid:14)(cid:26)(cid:23)(cid:28) (cid:30)(cid:15)(cid:31)(cid:24)(cid:28) (cid:27)(cid:26)(cid:21)(cid:28) (cid:29)(cid:31)(cid:28) •(cid:31)(cid:25)(cid:24)(cid:28) (cid:31)(cid:30)(cid:21)(cid:28) (cid:3)(cid:31)(cid:19)(cid:21)(cid:23)(cid:127)(cid:28)

(cid:13)(cid:27)(cid:25)(cid:17)(cid:27)(cid:28)(cid:22)(cid:27)(cid:26)(cid:28)(cid:19)(cid:7)(cid:21)(cid:26)(cid:26)(cid:23)(cid:28)(cid:29)(cid:31)(cid:28)(cid:23)(cid:31)(cid:28)(cid:29)(cid:27)(cid:25)(cid:22)(cid:28)(cid:15)(cid:19)(cid:22)(cid:29)(cid:28)(cid:22)(cid:30)(cid:16)(cid:16)(cid:26)(cid:21)(cid:11)

(cid:4)(cid:26)(cid:28) (cid:14)(cid:31)(cid:31)(cid:6)(cid:28) (cid:9)(cid:31)(cid:21)(cid:13)(cid:19)(cid:21)(cid:23)(cid:28) (cid:29)(cid:31)(cid:28) (cid:29)(cid:27)(cid:26)(cid:28) (cid:24)(cid:26)(cid:13)(cid:28) (cid:31)(cid:15)(cid:15)(cid:31)(cid:21)(cid:29)(cid:30)(cid:24)(cid:25)(cid:29)(cid:25)(cid:26)(cid:22)(cid:28) (cid:29)(cid:27)(cid:19)(cid:29)(cid:28) (cid:13)(cid:26)(cid:28) (cid:27)(cid:19)(cid:18)(cid:26)(cid:28) (cid:3)(cid:26)(cid:9)(cid:31)(cid:21)(cid:26)(cid:28) (cid:30)(cid:22)(cid:28) (cid:25)(cid:24)(cid:28) ‡Œ‡Ž(cid:11)(cid:28)(cid:28)

(cid:157)(cid:27)(cid:19)(cid:24)(cid:6)(cid:28)(cid:20)(cid:31)(cid:30)(cid:28)(cid:29)(cid:31)(cid:28)(cid:31)(cid:30)(cid:21)(cid:28)(cid:26)(cid:16)(cid:15)(cid:14)(cid:31)(cid:20)(cid:26)(cid:26)(cid:22)(cid:127)(cid:28)(cid:17)(cid:30)(cid:22)(cid:29)(cid:31)(cid:16)(cid:26)(cid:21)(cid:22)(cid:127)(cid:28)—(cid:27)(cid:19)(cid:21)(cid:26)(cid:27)(cid:31)(cid:14)(cid:23)(cid:26)(cid:21)(cid:22)(cid:127)(cid:28)(cid:19)(cid:24)(cid:23)(cid:28)(cid:2)(cid:31)(cid:19)(cid:21)(cid:23)(cid:28)(cid:31)(cid:9)(cid:28)–(cid:25)(cid:21)(cid:26)(cid:17)(cid:29)(cid:31)(cid:21)(cid:22)(cid:28)

(cid:9)(cid:31)(cid:21)(cid:28)(cid:22)(cid:30)(cid:15)(cid:15)(cid:31)(cid:21)(cid:29)(cid:25)(cid:24)(cid:7)(cid:28)(cid:2)(cid:19)(cid:22)(cid:22)(cid:26)(cid:29)(cid:29)(cid:28)(cid:25)(cid:24)(cid:28)(cid:29)(cid:27)(cid:26)(cid:28)(cid:30)(cid:24)(cid:9)(cid:31)(cid:21)(cid:7)(cid:26)(cid:29)(cid:29)(cid:19)(cid:3)(cid:14)(cid:26)(cid:28)(cid:20)(cid:26)(cid:19)(cid:21)(cid:28)(cid:31)(cid:9)(cid:28)‡Œ‡Œ(cid:11)

Management’s Discussion and Analysis of Financial Condition and Results of Operations 
(Amounts in thousands except share and per share data) 

Our fiscal year, which ends on the last Saturday of November, periodically results in a 53-week year instead of the normal 52 
weeks.  The prior fiscal year ending November 30, 2019 was a 53-week year, with the additional week being included in the first 
fiscal quarter.  Accordingly, the information presented below  includes 53 weeks of operations for the year ended November 30, 
2019 as compared to 52 weeks included in the years ended November 28, 2020 and November 24, 2018. 

Impact of COVID-19 

On March 11, 2020, the World Health Organization declared the current COVID-19 outbreak to be a global pandemic. In response 
to this declaration and the rapid spread of COVID-19 within the United States, federal, state and local governments throughout the 
country imposed varying degrees of restrictions on social and commercial activity to promote social distancing in an effort to slow 
the spread of the illness.  These measures have had a significant adverse impact upon many sectors of the economy, including non-
essential retail commerce.  

In response to the above and for the protection of our employees and customers, we temporarily closed our dedicated BHF stores, 
our manufacturing locations and many of our warehouses for several weeks primarily during the second fiscal quarter of 2020.  We 
also implemented several operating changes which allowed us to maintain sufficient liquidity until we and other furniture retailers 
were  able  to  reopen  for  business.    These  included,  among  other  things,  an  approximate  23%  permanent  workforce  reduction, 
temporary salary and wage reductions for all remaining employees, including a 50% pay reduction for our chief executive officer 
and  certain  other  executives,  negotiations  with  our  landlords  to  receive  abatements  of  rent,  and  in  some  cases,  temporary  rent 
deferrals,  on  many  of  our  store  leases  and  the  amendment  of  our  bank  credit  agreement  to  provide  an  additional  $25,000  of 
availability under our credit line through December 31, 2020.  The disruption to our operations caused by the COVID-19 pandemic 
resulted  in  a  significant  loss  for  the  second  quarter  of  fiscal  2020  which  drove  the  loss  for  the  full  year  despite  our  return  to 
profitability during the third and fourth fiscal quarters. 

However, since restarting our manufacturing operations and reopening stores beginning in late May of 2020, the pace of incoming 
wholesale orders from both the retail stores and our independent dealers outside the BHF store network have far exceeded our post 
reopening forecasts.  Wholesale orders for the second half of 2020 increased 26% as compared to 2019.  While our manufacturing 
operations, primarily our upholstery division, and shipping operations have not been able to keep pace with the incoming order 
level, we were able to generate net income of $8,782 and operating cash flow of $42,422 during the second half of fiscal 2020.  As 
a result, we have restored all temporarily reduced salaries and wages and resumed the payment of quarterly dividends, including the 
payment of the dividend declared and subsequently suspended during the second quarter, as well as the declaration and payment of 
a special dividend subsequent to November 28, 2020. 

We continue to closely monitor the COVID-19 pandemic and the potential effects on the economy, the consumer and our business. 
While  the  rate  of  incoming  orders  at  both  our  wholesale  and  retail  segments  is  currently  strong,  there  are  continuing  logistical 
challenges faced by us and the entire home furnishings industry resulting from COVID-related labor shortages and supply chain 
disruptions creating significant delays in order fulfillment and increasing backlogs.  Although unable to predict with certainty, we 
expect gradual decreases in wholesale and retail backlogs over the course of 2021 driven by an anticipated lower rate of future 
incoming orders coupled with increased manufacturing and shipping activity.  While the home furnishings industry has fared much 
better during the pandemic than other sectors of the economy, continued economic weakness and the recent surge in COVID-19 
cases coupled with the slow rollout of vaccinations may eventually have an additional adverse impact upon our business. The timing 
of any future actions by us in response to COVID-19 is largely dependent on the mitigation of the spread of the virus, the speed 
with  which  vaccinations  are  disseminated,  status  of  government  orders,  directives  and  guidelines,  recovery  of  the  business 
environment, economic conditions, and consumer demand for our products. 

Overview  

Bassett is a leading retailer, manufacturer and marketer of branded home furnishings. Our products are sold primarily through a 
network  of  Company-owned  and  licensee-owned  branded  stores  under  the  Bassett  Home  Furnishings  (“BHF”) name,  with 
additional  distribution  through  other  wholesale  channels  including  multi-line  furniture  stores,  many  of  which  feature  Bassett 
galleries or design centers. We were founded in 1902 and incorporated under the laws of Virginia in 1930. Our rich 118-year history 
has instilled the principles of quality, value, and integrity in everything we do, while simultaneously providing us with the expertise 
to respond to ever-changing consumer tastes and meet the demands of a global economy. 

With 97 BHF stores at November 28, 2020, we have leveraged our strong brand name in furniture into a network of Company-
owned and licensed stores that focus on providing consumers with a friendly environment for buying furniture and accessories.  Our 
store program is designed to provide a single source home furnishings retail store that provides a unique combination of stylish, 
quality furniture and accessories with a high level of customer service.  In order to reach markets that cannot be effectively served 
by our retail store network, we also distribute our products through other wholesale channels including multi-line furniture stores, 
many of which feature Bassett galleries or design centers. We use a network of over 30 independent sales representatives who have 

1 

 
 
  
  
 
 
 
  
  
  
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued 
(Amounts in thousands except share and per share data) 

stated geographical territories. These sales representatives are compensated based on a standard commission rate. We believe this 
blended strategy provides us the greatest ability to effectively distribute our products throughout the United States and ultimately 
gain market share.   

The BHF stores feature custom order furniture, free in-home or virtual design visits (“home makeovers”) and coordinated decorating 
accessories.  Our philosophy is based on building strong long-term relationships with each customer.  Sales people are referred to 
as  “Design  Consultants”  and  are  trained  to  evaluate  customer  needs  and  provide  comprehensive  solutions  for  their  home 
decor.  Until a rigorous training and design certification program is completed, Design Consultants are not authorized to perform 
in-home or virtual design services for our customers. 

We have factories in Newton, North Carolina that manufacture custom upholstered furniture. We also have factories in Martinsville 
and Bassett, Virginia that assemble and finish our custom dining offerings, including our solid hardwood furniture “Bench Made” 
line. Our manufacturing team takes great pride in the breadth of its options, the precision of its craftsmanship, and the speed of its 
manufacturing process. Our logistics team then promptly ships the product to one of our home delivery hubs or to a location specified 
by our licensees.  In addition to the furniture that we manufacture domestically, we source most of our formal bedroom and dining 
room furniture (casegoods) and certain leather upholstery offerings from several foreign plants, primarily in Vietnam, Thailand and 
China. Over 75% of the products we currently sell are manufactured in the United States. 

We  also  own  Zenith  Freight  Lines,  LLC  (“Zenith”)  which  provides  logistical  services  to  Bassett  along  with  other  furniture 
manufacturers and retailers. Zenith delivers best-of-class shipping and logistical support services that are uniquely tailored to the 
needs of Bassett and the furniture industry. Approximately 60% of Zenith’s revenue is generated from services provided to non-
Bassett customers. 

On December 21, 2017, we purchased certain assets and assumed certain liabilities of Lane Venture from Heritage Home Group, 
LLC for $15,556 in cash. Lane Venture is a manufacturer and distributor of premium outdoor furniture and is now being operated 
as a component of our wholesale segment. This acquisition marked our entry into the market for outdoor furniture and we believe 
that Lane Venture has provided a foundation for us to become a significant participant in this category. Our strategy is to distribute 
this brand outside of our BHF store network only. See Note 3 to our consolidated financial statements for additional details regarding 
this acquisition. 

With the knowledge we have gained through operating Lane Venture, we have developed the Bassett Outdoor brand that is only 
marketed through the BHF store network. This allows Bassett branded product to move from inside the home to outside the home 
to capitalize on the growing trend of outdoor living. 

At November 28, 2020, our BHF store network included 63 Company-owned stores and 34 licensee-owned stores. During fiscal 
2020,  we  closed  seven  underperforming  Company-owned  stores  in  Burlington  and  Stoughton,  Massachusetts,  Newport  News, 
Virginia, Coral Gables and Ft. Lauderdale, Florida, and Torrance and Culver City, California. One new licensee store was opened 
in Thornton, Colorado. 

We consider our website to be the front door to our brand experience where customers can research our furniture and accessory 
offerings and subsequently buy online or engage with an in-store design consultant. Customer acquisition resulting from our digital 
outreach strategies increased our traffic to the website by 82% and web orders by 92% for the fourth quarter of 2020 as compared 
to 2019. Digital advertising dominated our marketing expenditures for the majority of the year as we chose to spend less in traditional 
television and direct mail advertising. We plan to continue with increased levels of spending on digital advertising and outreach 
during 2021. We also expect to continue investing in our website to improve the navigation and the ordering capabilities to increase 
web sales. Much of our current product offerings highlight the breadth and depth of our custom furniture capabilities which are 
difficult to show and sell online. We plan to expand our merchandising strategies to include more product that can be more easily 
purchased  online  with  or  without  a  store  visit.  While  we  work  to  increase  web  sales,  we  will  not  compromise  on  our  in-store 
experience or the quality of our in-home makeover capabilities. 

The migration to digital brand research and compressed transaction cycles have caused us to comprehensively evaluate all of our 
American made custom products.  While our Custom Upholstery, Custom Dining, and Bench Made product lines continue to be 
our  most  successful  offerings,  they  are  not  conducive  to  web  transactions;  most  of  these  items  must  be  purchased  in  a 
store.   Furthermore,  we  offer many  upholstery  trim  options, fabrics and  finishes  that  have  low  rates  of  sale  and  that  make  web 
navigation more difficult for the consumer.  Consequently, we will continue to methodically re-design each one of these important 
lines.  Our intent is to continue to offer the consumer custom options that will help them personalize their home but to do so in an 
edited fashion that will provide a better web experience in the research phase and will also allow the final purchase to be made 
either on the web or in the store.  We also plan to heavily emphasize our “Made in America” story and utilize locally harvested and 
organic materials when possible.  While this will all take time to complete, new products began appearing on the retail floors and 
website in early 2021.  

2 

 
 
  
  
  
  
  
  
   
 
 
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued 
(Amounts in thousands except share and per share data) 

Analysis of Operations 

The following discussion provides an analysis of our results of operations and reasons for material changes therein for fiscal year 
2020 as compared to fiscal year 2019. See “Analysis of Operations” in Part II, Item 7, Management’s Discussion and Analysis of 
Financial Condition and Results of Operations in the Company’s 2019 Annual Report on Form 10-K, filed with the SEC on January 
23, 2020 for an analysis of the fiscal year 2019 results as compared to fiscal year 2018. 

Net sales revenue, cost of furniture and accessories sold, selling, general and administrative (“SG&A”) expense, new store pre-
opening costs, other charges, and income from operations were as follows for the years ended November 28, 2020 and November 
30, 2019: 

2020 

2019* 

   Change from Prior Year   
   Dollars 

     Percent 

Sales Revenue: 

Furniture and accessories 
Logistics 

  $ 

Total net sales revenue 

337,672      
48,191      
385,863      

87.5%   $ 
12.5%     
100.0%     

403,865      
48,222      
452,087      

89.3%   $ 
10.7%     
100.0%     

(66,193)     
(31)     
(66,224)     

-16.4% 
-0.1% 
-14.6% 

Cost of furniture and accessories 
sold 
SG&A 
New store pre-opening costs 
Other charges 

163,567      
223,314      
-      
15,205      

42.4%     
57.9%     
0.0%     
3.9%     

179,244      
264,280      
1,117      
8,041      

39.6%     
58.5%     
0.2%     
1.8%     

(15,677)     
(40,966)     
(1,117)     
7,164      

-8.7% 
-15.5% 
-100.0% 
89.1% 

Income (loss) from operations 

  $ 

(16,223)     

-4.2%   $ 

(595)     

-0.1%   $ 

(15,628)     

2626.6% 

Our consolidated net sales by segment were as follows: 

Net Sales 

Wholesale 
Retail 
Logistical services 
Inter-company eliminations: 
Furniture and accessories 
Logistical services 

Consolidated 

  $

  $

2020 

2019* 

    Change from Prior Year   
     Dollars 

     Percent 

221,075    $
211,944      
75,158      

261,105    $
268,693      
80,074      

(40,030)     
(56,749)     
(4,916)     

(95,347)     
(26,967)     
385,863    $

(125,933)     
(31,852)     
452,087    $

30,586      
4,885      
(66,224)     

-15.3% 
-21.1% 
-6.1% 

-24.3% 
-15.3% 
-14.6% 

*53 weeks for fiscal 2019 as compared with 52 weeks for fiscal 2020. 

Refer  to  the  segment  information  which  follows  for  a  discussion  of  the  significant  factors  and  trends  affecting  our  results  of 
operations for fiscal 2020 as compared with fiscal 2019. 

Certain other items affecting comparability between periods are discussed below in “Other Items Affecting Net Income”. 

3 

 
 
  
  
  
  
    
  
      
  
  
    
  
      
  
  
  
  
  
  
  
  
       
        
  
       
        
  
       
        
  
    
    
  
       
        
  
       
        
  
       
        
  
    
    
    
    
  
       
        
  
       
        
  
       
        
  
  
  
  
    
  
      
  
  
  
      
  
      
        
        
        
  
    
    
      
        
        
        
  
    
    
  
  
  
  
 
 
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued 
(Amounts in thousands except share and per share data) 

Segment Information 

As more fully discussed under the heading "Impact of the COVID-19 Pandemic Upon Our Business" in Part I, Item 1 of this report, 
the COVID-19 pandemic had a severely disruptive and adverse impact upon our business during the second fiscal quarter of 2020 
followed by a return to full operations early in the third fiscal quarter. As a result, we do not believe that a comparative analysis of 
our segment operating results for the full year of fiscal 2020 as compared to fiscal 2019 is, by itself, meaningful with respect to 
understanding the significant factors and trends affecting our ongoing operations. Therefore, in addition to the full year-over-year 
comparative data shown below, we have provided additional information comparing our results of operations for each segment for 
the six months ended November 28, 2020 as compared with the six months ended November 30, 2019, and our analysis is focused 
primarily on that six month comparative period. For additional discussion and analysis of our operating results during the first half 
of fiscal 2020, refer to Part I, Item 2 of our Quarterly Report on Form 10-Q for the quarterly period ended May 30, 2020, filed with 
the SEC on July 9, 2020, as well as Part I, Item 2 of our Quarterly Report on Form 10-Q for the quarterly period ended February 
29,  2020,  filed  with  the  SEC  on  April  2,  2020.  Note  that  the  six  months  ended  November  28,  2020  and  the  six  months  ended 
November 30, 2019 both contained 26 weeks. 

We have strategically aligned our business into three reportable segments as described below: 

Wholesale. The wholesale home furnishings segment is involved principally in the design, manufacture, sourcing, sale 
and distribution of furniture products to a network of Bassett stores (licensee-owned stores and Company-owned stores) 
and independent furniture retailers. Our wholesale segment includes our wood and upholstery operations as well as all 
corporate selling, general and administrative expenses, including those corporate expenses related to both Company- and 
licensee-owned stores. We eliminate the sales between our wholesale and retail segments as well as the imbedded profit 
in the retail inventory for the consolidated presentation in our financial statements. Our wholesale segment also includes 
our holdings of short-term investments and retail real estate previously leased as licensee stores. The earnings and costs 
associated with these assets are included in other loss, net, in our consolidated statements of operations. 

Retail  –  Company-owned  stores.  Our  retail  segment  consists  of  Company-owned  stores  and  includes  the  revenues, 
expenses,  assets  and  liabilities  (including  real  estate)  and  capital  expenditures  directly  related  to  these  stores  and  the 
Company-owned distribution network utilized to deliver products to our retail customers. 

Logistical  services.  With  our  acquisition  of  Zenith  on  February  2,  2015,  we  created  the  logistical  services  operating 
segment  which  reflects  the  operations  of  Zenith.  In  addition  to  providing  shipping  and  warehousing  services  for  the 
Company,  the  revenue  from  which  is  eliminated  upon  consolidation,  Zenith  also  provides  similar  services  to  other 
customers,  primarily  in  the  furniture  industry.  Revenue  from  the  performance  of  these  services  to  other  customers  is 
included in logistics revenue in our consolidated statement of operations. Zenith’s operating costs are included in selling, 
general and administrative expenses. 

4 

 
 
  
  
  
  
  
  
  
 
 
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued 
(Amounts in thousands except share and per share data) 

The following tables illustrate the effects of various intercompany eliminations on income (loss) from operations in the consolidation 
of our segment results for the full fiscal years ended November 28, 2020 and November 30, 2019: 

Sales revenue: 

Furniture & accessories 
Logistics 

Total sales revenue 

Cost of furniture and accessories sold 
SG&A expense 
New store pre-opening costs 
Income (loss) from operations (5) 

Sales revenue: 

Furniture & accessories 
Logistics 

Total sales revenue 

Cost of furniture and accessories sold 
SG&A expense 
New store pre-opening costs 
Income (loss) from operations (5) 

   Wholesale      

Retail 

     Logistics 

     Eliminations   

      Consolidated   

Year Ended November 28, 2020 

  $ 

  $ 

221,075    $ 
-      
221,075      
152,982      
63,506      
-      
4,587    $ 

211,944     $ 
-       
211,944       
107,233       
114,208       
-       
(9,497 )   $ 

-    $ 
75,158      
75,158      
-      
73,913      
-      
1,245    $ 

(95,347) (1)  $ 
(26,967) (2)    
(122,314)   
(96,648) (3)    
(28,313) (4)    
-    
2,647    

  $ 

337,672  
48,191  
385,863  
163,567  
223,314  
-  
(1,018) 

   Wholesale      

Retail 

     Logistics 

     Eliminations   

      Consolidated   

Year Ended November 30, 2019 

  $ 

  $ 

261,105    $ 
-      
261,105      
173,350      
76,299      
-      
11,456    $ 

268,693     $ 
-       
268,693       
131,528       
143,057       
1,117       
(7,009 )   $ 

-    $ 
80,074      
80,074      
-      
78,219      
-      
1,855    $ 

(125,933) (1)  $ 
(31,852) (2)    
(157,785) 
(125,634) (3)    
(33,295) (4)    
-  
1,144  

   $ 

403,865  
48,222  
452,087  
179,244  
264,280  
1,117  
7,446  

(1)  Represents the elimination of sales from our wholesale segment to our Company-owned BHF stores. 
(2)  Represents the elimination of logistical services billed to our wholesale segment. 
(3)  Represents the elimination of purchases by our Company-owned BHF stores from our wholesale segment, as well as the change

for the period in the elimination of intercompany profit in ending retail inventory. 

(4)  Represents  the  elimination  of  rent  paid  by  our  retail  stores  occupying  Company-owned  real  estate  and  logistical  services

expense incurred from Zenith by our wholesale segment. 

Year Ended 
   November 28,      November 30,   

2020 

2019 

Intercompany logistical services 
Intercompany rents 

Total SG&A expense elimination 

  $ 

  $ 

(26,967 )   $ 
(1,346 )     
(28,313 )   $ 

(31,852) 
(1,443) 
(33,295) 

(5)  Excludes the effects of goodwill and asset impairment charges, cost of early retirement program, litigation costs and lease exit

costs which are not allocated to our segments. 

5 

 
 
  
  
  
  
  
      
        
        
        
    
      
  
    
    
    
    
    
    
    
  
  
  
  
  
      
        
        
        
    
      
  
    
    
     
    
    
    
     
  
  
  
  
  
  
  
  
    
  
  
      
        
  
    
  
  
  
 
 
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued 
(Amounts in thousands except share and per share data) 

The following tables illustrate the effects of various intercompany eliminations on income (loss) from operations in the consolidation 
of our segment results for the six months ended November 28, 2020 and November 30, 2019: 

   Wholesale 

     Retail 

     Logistics 

     Eliminations      

   Consolidated    

Six Months Ended November 28, 2020 

Sales revenue: 

Furniture & accessories 
Logistics 

Total sales revenue 

  $ 

Cost of furniture and accessories sold      
SG&A expense 
New store pre-opening costs 
Income from operations 

  $ 

122,930     $ 
-       
122,930       
81,805       
31,870       
-       
9,255     $ 

112,927     $ 
-       
112,927       
56,839       
55,166       
-       
922     $ 

-     $ 
38,584       
38,584       
-       
36,332       
-       
2,252     $ 

(50,127 )  (1)    $ 
(14,372 )  (2)      
(64,499 )   
(49,799 )  (3)      
(15,067 )  (4)      
-     
367     

  $ 

185,730   
24,212   
209,942   
88,845   
108,301   
-   
12,796   

   Wholesale 

Retail 

     Logistics 

     Eliminations          Consolidated   

Six Months Ended November 30, 2019 

Sales revenue: 

Furniture & accessories 
Logistics 

Total sales revenue 

Cost of furniture and accessories sold 
SG&A expense 
New store pre-opening costs 
Income (loss) from operations (5) 

  $ 

  $ 

125,193    $ 
-      
125,193      
83,009      
38,083      
-      
4,101    $ 

136,496    $ 
-      
136,496      
65,799      
71,453      
254      
(1,010)   $ 

-    $ 
38,230      
38,230      
-      
37,339      
-      
891    $ 

(61,005) (1)  $ 
(15,858) (2)    
(76,863)   
(61,271) (3)    
(16,571) (4)    
-    
979    

  $ 

200,684  
22,372  
223,056  
87,537  
130,304  
254  
4,961  

(1)  Represents the elimination of sales from our wholesale segment to our Company-owned BHF stores. 
(2)  Represents the elimination of logistical services billed to our wholesale segment. 
(3)  Represents the elimination of purchases by our Company-owned BHF stores from our wholesale segment, as well as the change

for the period in the elimination of intercompany profit in ending retail inventory. 

(4)  Represents  the  elimination  of  rent  paid  by  our  retail  stores  occupying  Company-owned  real  estate  and  logistical  services

expense incurred from Zenith by our wholesale segment. 

Six Months Ended 
   November 28,      November 30,   

2020 

2019 

Intercompany logistical services 
Intercompany rents 

  $ 

Total SG&A expense elimination 

  $ 

(14,372)   $ 
(695)     
(15,067)   $ 

(15,858) 
(713) 
(16,571) 

(5)  Excludes the effects of goodwill and asset impairment charges, litigation costs and lease exit costs which are not allocated to

our segments. 

6 

 
 
  
  
  
  
  
       
         
         
         
    
       
  
    
    
    
    
    
    
  
  
  
  
  
    
      
        
        
        
    
      
  
    
    
    
    
    
    
    
  
  
  
  
  
  
  
  
    
  
    
  
  
  
 
 
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued 
(Amounts in thousands except share and per share data) 

The following table reconciles income from operations as shown above for our consolidated segment results with income (loss) 
from  operations  as  reported  in  accordance  with  GAAP  for  the  full  fiscal  years  and  six  months  ended  November  28,  2020  and 
November 30, 2019: 

   Full Fiscal Year 
     2019 
   2020 

     Last Six Months 
     2019 
     2020 

Consolidated segment income (loss) from 
operations excluding special charges 

Less: 

Asset impairment charges 
Goodwill impairment charge 
Early retirement program 
Litigation expense 
Lease exit costs 

  $

(1,018)   $ 

7,446    $

12,796    $

4,961  

12,184      
1,971      
-      
1,050      
-      

4,431      
1,926      
835      
700      
149      

-      
-      
-      
-      
-      

4,431  
1,926  
-  
700  
149  

Income (loss) from operations as reported 

  $ (16,223)   $ 

(595)   $

12,796    $

(2,245)

Asset Impairment Charges 

During fiscal 2020 the loss from operations included $11,114 of non-cash asset impairment charges on five underperforming retail 
stores, including $6,239 for the impairment of operating lease right-of-use assets, and $1,070 of non-cash impairment charges in 
our wholesale segment, primarily due to the closure of our custom upholstery manufacturing facility in Grand Prairie, Texas. 

During  fiscal  2019  the  loss  from  operations  included  $4,431  of  non-cash  impairment  charges  recognized  on  the  assets  of  six 
underperforming retail stores. 

Goodwill Impairment Charges 

Due to the impact of the COVID-19 pandemic, we performed an interim impairment assessment of our goodwill as of May 30, 
2020. As a result, we recognized a non-cash charge of $1,971 during fiscal 2020 for the impairment of goodwill associated with our 
wood reporting unit within our wholesale segment (see Note 6 to our Consolidated Financial Statements). 

During fiscal 2019 our annual evaluation of the carrying value of our recorded goodwill resulted in the recognition of a $1,926 non-
cash  charge  for  the  impairment  of  goodwill  associated  with  our  retail  reporting  unit  (see  Note  6  to  our  Consolidated  Financial 
Statements). 

Early Retirement Program 

During the first quarter of fiscal 2019, we offered a voluntary early retirement package to certain eligible employees of the Company. 
These employees received pay equal to one-half their current salary plus benefits over a period of one year from the final day of 
each individual’s active employment. Accordingly, we recognized a charge of $835 during the year ended November 30, 2019. 

Litigation Expense  

During fiscal 2020 and 2019 we accrued $1,050 and $700, respectively for the estimated costs to resolve certain wage and hour 
violation claims that had been asserted against the Company. 

Lease Exit Costs 

During fiscal 2019 we recognized a $149 charge for lease exit costs incurred in connection with the repositioning of a Company-
owned retail store in Palm Beach, Florida to a new location within the same market. 

7 

 
 
  
  
  
  
  
      
        
        
        
  
    
    
    
    
    
  
      
        
        
        
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued 
(Amounts in thousands except share and per share data) 

Wholesale Segment 

Net sales, gross profit, SG&A expense and operating income for our Wholesale Segment were as follows for the full fiscal years 
and last six months ended November 28, 2020 and November 30, 2019: 

Full Fiscal Year 

Last Six Months 

2020 

2019* 

Change from  
Prior Year  
   Dollars      Percent   

2020 

2019 

Change from  
Prior Year 
  Dollars     Percent   

Net sales    $ 221,075        100.0 %   $ 261,105        100.0 %   $ (40,030 )     
Gross 
profit 
SG&A 
Income 
from 
operations   $  4,587       

     68,093        30.8 %      87,755        33.6 %      (19,662 )     
     63,506        28.7 %      76,299        29.2 %      (12,793 )     

2.1 %   $  11,456       

4.4 %   $  (6,869 )     

-15.3 %   $ 122,930        100.0 %   $ 125,193        100.0 %   $ (2,263 )     

-1.8 % 

-22.4 %      41,125        33.5 %      42,184        33.7 %      (1,059 )     
-16.8 %      31,870        25.9 %      38,083        30.4 %      (6,213 )     

-2.5 % 
-16.3 % 

-60.0 %   $  9,255       

7.5 %   $  4,101       

3.3 %   $  5,154        125.7 % 

Wholesale shipments by category for the full fiscal years and last six months ended November 28, 2020 and November 30, 2019 
are summarized below: 

Full Fiscal Year 

Last Six Months 

2020 

2019* 

Change from  
Prior Year 
   Dollars      Percent   

2020 

2019 

Change from  
Prior Year 
  Dollars     Percent   

     21,436       

9.7 %      19,220       

Bassett 
Custom 
Upholstery    $ 128,200        58.0 %   $ 152,415        58.4 %   $ (24,215 )     
Bassett 
Leather 
Bassett 
Custom 
Wood 
Bassett 
Casegoods       32,128        14.5 %      40,920        15.7 %     
Accessories 
(1) 
Total 

  $ 221,075       100.0 %   $ 261,105       100.0 %   $ (40,030 )     

     39,311        17.8 %      46,082        17.6 %     

(6,771 )     

(8,792 )     

2,216       

2,468       

0.0 %     

0.9 %     

7.4 %     

-       

-15.9 %   $  68,933        56.1 %   $  74,024        59.1 %   $ (5,091 )     

-6.9 % 

11.5 %      13,681        11.1 %     

8,986       

7.2 %      4,695       

52.2 % 

-14.7 %      22,389        18.2 %      23,881        19.1 %      (1,492 )     

-6.2 % 

-21.5 %      17,927        14.6 %      18,301        14.6 %     

(374 )     

-2.0 % 

(2,468 )      -100.0 %     

-       

0.0 %     

1       

0.0 %     

-15.3 %   $ 122,930       100.0 %   $ 125,193       100.0 %   $ (2,263 )     

(1 )      -100.0 % 
-1.8 % 

(1)  Beginning with the third quarter of fiscal 2019, our wholesale segment no longer purchases accessory items for resale to our retail segment
or to third party customers such as licensees or independent furniture retailers. Our retail segment and third party customers now source their 
accessory items directly from the accessory vendors. 

*53 weeks for fiscal 2019 as compared with 52 weeks for fiscal 2020. 

Fiscal 2020 as Compared to Fiscal 2019 

Net sales for the year ended November 28, 2020 declined $40,030 or 15.3% as compared to the year ended November 30, 2019 due 
primarily  to  COVID-related  operational  disruptions  which  occurred  during  the  second  quarter  of  fiscal  2020,  during  which  we 
recorded a 48% decrease in net sales as compared to the second quarter of fiscal 2019 and an operating loss of $7,381 for the period. 
Gross margins during the second quarter of fiscal 2020 were impacted by reduced leverage of fixed costs due to the temporary 
shutdown of operations coupled with increased inventory valuation reserves. Although SG&A expenses were reduced during the 
second quarter, the results were also impacted by reduced leverage from significantly lower sales. 

Six Months Ended November 28, 2020 as Compared to the Six Months Ended November 30, 2019 

Net sales for the six months ended November 28, 2020 as compared to the six months ended November 30, 2019 decreased $2,263 
or 1.8%. Wholesale orders for the six-month period of 2020 increased 26% as compared to the comparable period in 2019 resulting 
in a wholesale backlog of $54,874 at November 28, 2020 as compared to $19,953 at November 30, 2019. Wholesale orders from 
independent dealers increased 62% for the last six months of 2020 as compared to the prior year period driven by increases from 
existing dealers along with an expansion of the dealer base. In addition, orders from the BHF store network increased 7.3% while 
Lane Venture orders increased by 38%. Gross margins for the six months of 2020 as compared to the comparable period in 2019 
decreased by 20 basis points as decreases in the imported wood line due to the continued process of lowering inventory levels and 
reducing  overall  import  wood  offerings  were  almost  offset  by  improved  gross  margins  in  both  the  wood  and  upholstery 

8 

 
 
  
  
  
  
  
  
  
  
    
  
      
  
  
    
  
      
  
  
  
  
    
  
      
  
  
    
  
      
  
  
  
  
  
  
  
  
  
  
  
  
  
  
       
        
  
       
        
  
       
        
  
       
        
  
       
        
  
       
        
  
  
  
  
  
  
  
  
  
    
  
      
  
  
    
  
      
  
  
  
  
    
  
      
  
  
    
  
      
  
  
  
  
  
  
  
  
  
  
  
  
  
  
       
        
  
       
        
  
       
        
  
       
        
  
       
        
  
       
        
  
    
  
  
  
  
  
  
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued 
(Amounts in thousands except share and per share data) 

manufacturing operations. SG&A costs for the six months of 2020 as compared to 2019 decreased 450 basis points due to lower 
marketing and promotional spending and bad debt expense, partially offset by increased incentive compensation.     

Retail Segment – Company Owned Stores 

Net sales, gross profit, SG&A expense, new store pre-opening costs and operating income for our retail segment were as follows 
for the full fiscal years and last six months ended November 30, 2019 and November 24, 2018: 

Full Fiscal Year 

Last Six Months 

Change from  
Prior Year 

Change from  
Prior Year 

2020 

2019*

Dollars 

  Percent   

2020 

2019 

   Dollars 

  Perccent   

Net sales 
Gross profit 
SG&A 
New store pre-
opening costs 
Income (loss)  
from operations 

  $ 211,944       100.0 %   $ 268,693       100.0 %   $ (56,749 )     
     104,711        49.4 %      137,165        51.0 %      (32,454 )     
     114,208        53.9 %      143,057        53.2 %      (28,849 )     

-21.1 %   $ 112,927       100.0 %   $ 136,496       100.0 %   $ (23,569 )     
-23.7 %      56,088        49.7 %      70,697        51.8 %      (14,609 )     
-20.2 %      55,166        48.9 %      71,453        52.3 %      (16,287 )     

-17.3 % 
-20.7 % 
-22.8 % 

-        0.0 %     

1,117        0.4 %     

(1,117 )      -100.0 %     

-        0.0 %     

254        0.2 %     

(254 )      -100.0 % 

  $  (9,497 )      -4.5 %   $  (7,009 )      -2.6 %   $  (2,488 )     

35.5 %   $ 

922        0.8 %   $  (1,010 )      -0.7 %   $  1,932        N/M   

*53 weeks for fiscal 2019 as compared with 52 weeks for fiscal 2020. 

Fiscal 2020 as Compared to Fiscal 2019 

Net sales for the year ended November 28, 2020 declined $56,749 or 21.1% as compared to the year ended November 30, 2019 due 
primarily to COVID-related operational disruptions during the second quarter of 2020, during which where we recorded a 47% 
decrease in net sales as compared to the second quarter of 2019 and an operating loss of $9,170 for the period. Gross margins during 
the second quarter were impacted by increased inventory valuation reserves as we began a process to simplify our product offerings 
to make them more web friendly which resulted in increased clearance sales over the last six months of 2020. Although SG&A 
expenses were reduced during the second quarter, results were also impacted by reduced leverage from significantly lower sales. 

Six Months Ended November 28, 2020 as Compared to the Six Months Ended November 30, 2019 

Net sales for the six months ended November 28, 2020 as compared to the six months ended November 30, 2019 decreased $23,569 
or  17%.  Written  sales,  the  value  of  sales  orders  taken,  but  not  delivered,  increased  3.6%  for  the  six-month  period  in  2020  as 
compared to the comparable period in 2019 resulting in a retail backlog of $57,041 at November 28, 2020 as compared to $31,146 
at November 30, 2019 in spite of there being seven fewer stores by the end of fiscal 2020. As previously discussed, Bassett and 
most of the home furnishings industry has been faced with continuing logistical challenges from COVID-related labor shortages 
and  supply  chain  disruptions  creating  significant  delays  in  order  fulfillment and  increasing  backlogs.  Gross  margins  for  the  six 
months of 2020 as compared to the comparable period in 2019 decreased by 210 basis points due to the increased clearance sales 
as discussed above. SG&A costs for the last six months of fiscal 2020 as compared to 2019 decreased 340 basis points due to lower 
marketing and promotional spending, decreased compensation costs due to permanent workforce reductions and lower travel costs 
partially offset by decreased leverage of fixed costs from lower sales volumes. SG&A expenses were also reduced by a non-cash 
gain of $1,160 resulting from the termination of a lease for a store closed during the six months ended November 28, 2020. 

Logistical Services Segment 

Revenues, operating expenses and income from operations for our logistical services segment were as follows for the full fiscal 
years and last six months ended November 28, 2020 and November 30, 2019: 

Full Fiscal Year 

Last Six Months 

2020 

2019* 

Change from  
Prior Year 
  Dollars      Percent    

2020 

2019 

Change from  
Prior Year 
  Dollars      Percent    

Logistics 
revenue 
Operating 
expenses       73,913        98.3 %      78,219        97.7 %      (4,306 )     

  $ 75,158        100.0 %   $ 80,074        100.0 %   $ (4,916 )     

-6.1 %   $ 38,584        100.0 %   $ 38,230        100.0 %   $ 

354       

0.9 % 

-5.5 %      36,332        94.2 %      37,339        97.7 %      (1,007 )     

-2.7 % 

Income 
from 
operations   $  1,245       

1.7 %   $  1,855       

2.3 %   $ 

(610 )     

-32.9 %   $  2,252       

5.8 %   $ 

891       

2.3 %   $  1,361       

152.7 % 

*53 weeks for fiscal 2019 as compared with 52 weeks for fiscal 2020. 

9 

 
 
   
  
  
  
  
  
  
  
  
    
  
      
  
  
    
  
      
  
  
  
  
    
  
      
  
  
    
  
      
  
  
  
  
  
  
  
  
  
  
  
  
  
    
  
      
  
  
    
  
      
  
  
  
  
  
    
  
      
  
  
    
  
      
  
  
  
  
  
    
  
  
  
  
  
  
  
  
  
  
  
  
  
  
    
  
      
  
  
    
  
      
  
  
  
  
    
  
      
  
  
    
  
      
  
  
  
  
  
  
  
  
  
  
  
  
  
  
     
  
           
  
     
  
           
  
     
  
  
        
  
     
  
           
  
     
  
           
  
     
  
  
        
  
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued 
(Amounts in thousands except share and per share data) 

Fiscal 2020 as Compared to Fiscal 2019 

Net revenues for the year ended November 28, 2020 declined $4,916 or 6.1% as compared to the year ended November 30, 2019 
due primarily to COVID-related operational disruptions during the second quarter of fiscal 2020, during which we experienced a 
24% decrease in net revenues as compared to the second quarter of 2019 and incurred an operating loss of $1,842 for the period. 

Six Months Ended November 28, 2020 as Compared to the Six Months Ended November 30, 2019 

Net revenues for the six months ended November 28, 2020 as compared to the six months ended November 30, 2019 increased 
$354 or 0.9%. Operating income increased $1,361 for the last six months of fiscal 2020 as compared to the comparable period in 
2019 primarily due to improved fleet costs driven by lower fuel prices and increased demand for over the road trucking partially 
offset  by  higher  warehousing  labor  costs  as  Zenith  has  been  challenged  to  find  and  maintain  freight-handling  personnel  in  its 
warehousing operation due to the previously discussed COVID-related labor shortages. 

Other Items Affecting Net Income (Loss) 

Other items affecting net loss for fiscal 2020 and 2019 are as follows: 

2020 

2019 

Interest income (1) 
Interest expense (2) 
Net periodic pension costs (3) 
Net gains (cost) of company-owned life insurance (4) 
Other investment income (5) 
Other 

 $

236    $
(49)    
(499)    
647      
5      
(903)    

568  
(6) 
(883) 
(39) 
57  
(842) 

Total other loss, net 

 $

(563)  $

(1,145) 

(1)  Consists  of  interest  income  arising  from  our short-term  investments.  The  decline  in  interest  income  for  fiscal  2020  as
compared with fiscal 2019 was due primarily to lower interest rates as well as lower average invested balances. See Note
4 to the Consolidated Financial Statements for additional information regarding our investments in certificates of deposit.
(2)  The increase in interest expense in fiscal 2020 over fiscal 2019 is due to the addition of several finance leases for tractor
and  trailer  equipment.  See  Note  15  to  the  Consolidated  Financial  Statements  for  additional  information  regarding  our
leases. 

(3)  Represents  the  portion  of  net  periodic  pension  costs  not  included  in  income  from  operations.  See  Note  10  to  the

Consolidated Financial Statements for additional information related to our defined benefit pension plans. 

(4)  Includes gains arising from death benefits from Company-owned life insurance of $914 and $629 in fiscal 2020 and 2019,

respectively. 

(5)  Primarily reflects gains arising from the liquidation of our previously impaired investment in the Fortress Value Recovery
Fund I, LLC, which was fully impaired during fiscal 2012. The liquidation is complete as of November 28, 2020. 

Provision for Income taxes  

On March 27, 2020 the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. A major 
provision of the CARES Act allows net operating losses from the 2018, 2019 and 2020 tax years to be carried back up to five years. 
As a result, for the year ended November 28, 2020, we were able to recognize tax benefits substantially in excess of the current 
federal statutory rate of 21% due to the effects of carrying back our current net operating loss to tax years in which the federal 
statutory rate was 35%. 

We  recorded  an  income  tax  provision  (benefit)  of  $(6,365),  $188  and  $3,988  in  fiscal  2020,  2019  and  2018,  respectively.  Our 
effective tax rate of 37.9% differs from the federal statutory rate of 21.0% primarily due to the benefit of the CARES Act and to the 
effects of state income taxes and various permanent differences, including those related to the non-deductible goodwill impairment 
charge. Our effective tax rate of (10.8%) for 2019 differs from the federal statutory rate of 21.0% primarily due to the non-deductible 
goodwill impairment charge. Other items affecting the rate include the effects of state income taxes and certain other non-deductible 
expense.  See  Note  13  to  the  Consolidated  Financial  Statements  for  additional  information  regarding  our  income  tax  provision 
(benefit), as well as our net deferred tax assets and other matters. 

We have net deferred tax assets of $4,468 as of November 28, 2020, which, upon utilization, are expected to reduce our cash outlays 
for income taxes in future years. It will require approximately $17,000 of future taxable income to utilize our net deferred tax assets. 

10 

 
 
  
   
  
  
  
  
  
 
    
  
  
     
        
  
   
   
   
   
   
  
     
        
  
  
  
  
  
  
  
  
  
  
  
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued 
(Amounts in thousands except share and per share data) 

Liquidity and Capital Resources  

We  are  committed  to  maintaining  a  strong  balance  sheet  in  order  to  weather  difficult  industry  conditions,  to  allow  us  to  take 
advantage of opportunities as market conditions improve, and to execute our long-term retail strategies. 

Cash Flows  

Cash  provided  by  operations  for  fiscal  2020 was  $36,675  compared  to  $9,809  for  fiscal  2019,  representing  an  increase  in  cash 
provided  by  operations  of  $26,866.  This  increase  in  operating  cash  flow  is  primarily  due  to  a  substantial  increase  in  customer 
deposits  taken  against  unfilled  orders,  decreased  investment  in  inventory  as  there  were  no  store  openings  in  fiscal  2020,  other 
changes in working capital due in part to the timing impact of the additional week in the prior year period, improved operations in 
our retail segment, and cash conservation measures implemented in the second and third quarters of fiscal 2020 in response to the 
impact of COVID-19. 

Our overall cash position increased by $26,112 during fiscal 2020, compared to an overall decrease of $13,781 during fiscal 2019, 
an improvement of $39,893 over the prior year. In addition to the improvement in cash flows from operations, cash used in investing 
activities was $3,747 for fiscal 2020 as compared to $11,173 used in the prior year, a net decrease of $7,426. This decrease was 
primarily due to lower capital expenditures in the current year and proceeds from the sale of our closed Gulfport store location in 
fiscal 2020, partially offset by lower proceeds from the maturity of investments in CDs as compared to the prior year. Net cash used 
in financing activities was $6,816 for fiscal 2020 compared to $12,417 used in fiscal 2019, a decrease of $5,601. This decrease is 
primarily due to lower repurchases of our stock primarily in response to COVID-19. Share repurchases totaled $2,208 during fiscal 
2020  as  compared  to  $7,345  repurchased  during  fiscal  2019.  As  of  November  28,  2020,  $8,431  remains  authorized  under  our 
existing share repurchase plan. With cash and cash equivalents and short-term investments totaling $63,514 on hand at November 
28, 2020, expected future operating cash flows and the availability under our credit line noted below, we believe we have sufficient 
liquidity to fund operations for the foreseeable future. 

Debt and Other Obligations 

Our bank credit facility, which was amended effective June 15, 2020, provided for a line of credit of up to $50,000 through December 
31, 2020, after which date the maximum availability was reduced to $25,000. At November 28, 2020, we had $2,881 outstanding 
under standby letters of credit against our line, leaving availability under our credit line of $47,119. In addition, at November 28, 
2020 we had outstanding standby letters of credit with another bank totaling $325. The line bears interest at the rate of LIBOR plus 
1.9%, with a fee of 0.25% charged for the unused portion of the line, and is secured by a general lien on our accounts receivable 
and inventory. Under the terms of the June 15, 2020 amendment, all covenants based on financial ratios were waived for fiscal 
2020. We currently expect to be in compliance with these covenants, which include a minimum fixed charge coverage ratio and a 
maximum debt to tangible net worth ratio, through the end of fiscal 2021. The credit facility matures on January 31, 2022. 

We lease land and buildings that are used in the operation of our Company-owned retail stores as well as in the operation of certain 
of our licensee-owned stores, and we lease land and buildings at various locations throughout the continental United States for 
warehousing and distribution hubs used in our logistical services segment. We also lease tractors, trailers and local delivery trucks 
used in our logistical services and retail segments. The total future minimum lease payments for leases with terms in excess of one 
year at November 28, 2020 is $165,117, the present value of which is $141,856 and is included in our accompanying consolidated 
balance sheet at November 28, 2020. We negotiated with a number of our landlords to obtain relief in the form of rent deferrals or 
abatements of rent as a result of the effects of COVID-19 on our business. At November 28, 2020, the remaining deferred rent was 
$1,027  which  primarily  represents  rent  deferred  to  fiscal  2021.  We  were  contingently  liable  under  licensee  lease  obligation 
guarantees in the amount of $1,811 at November 28, 2020. Remaining terms under these lease guarantees range from approximately 
one to five years. See Note 15 to our condensed consolidated financial statements for additional details regarding our leases and 
lease guarantees. 

Dividends and Share Repurchases 

During fiscal 2020, we declared and paid four quarterly dividends totaling $4,545, or $0.455 per share. During fiscal 2020, we 
repurchased 202,711 shares of our stock for $2,208 under our share repurchase program. The weighted-average effect of these share 
repurchases on both our basic and diluted loss per share was approximately $0.01 per share. The approximate dollar value that may 
yet be purchased pursuant to our stock repurchase program as of November 28, 2020 was $8,431. 

Capital Expenditures 

We currently anticipate that total capital expenditures for fiscal 2021 will be approximately $16 to $18 million which will be used 
primarily for additional tractors for our logistical services segment, additional investments in technology and various remodels or 

11 

 
 
  
 
  
  
  
  
  
  
  
  
  
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued 
(Amounts in thousands except share and per share data) 

updates to our existing store fleet. Our capital expenditure and working capital requirements in the foreseeable future may change 
depending  on  many  factors,  including  but  not  limited  to  the  overall  performance  of  the  store  program,  our  rate  of  growth,  our 
operating results and any adjustments in our operating plan needed in response to industry conditions, competition or unexpected 
events. We believe that our existing cash, together with cash from operations, will be sufficient to meet our capital expenditure and 
working capital requirements for the foreseeable future. 

Fair Value Measurements 

We account for items measured at fair value in accordance with ASC Topic 820, Fair Value Measurements and Disclosures. ASC 
820’s valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from 
independent sources, while unobservable inputs reflect our market assumptions. ASC 820 classifies these inputs into the following 
hierarchy: 

Level 1 Inputs– Quoted prices for identical instruments in active markets. 

Level 2 Inputs– Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets 
that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. 

Level 3 Inputs– Instruments with primarily unobservable value drivers. 

We believe that the carrying amounts of our current assets and current liabilities approximate fair value due to the short-term nature 
of these items. Our primary non-recurring fair value estimates, typically involving the valuation of business acquisitions (see Note 
3 to the Consolidated Financial Statements), goodwill impairments (see Note 8 to the Consolidated Financial Statements) and asset 
impairments (see Note 14 to the Consolidated Financial Statements) have utilized Level 3 inputs. 

Contractual Obligations and Commitments  

We  enter  into  contractual  obligations  and  commercial  commitments  in  the  ordinary  course  of  business  (See  Note  15  to  the 
Consolidated Financial Statements for a further discussion of these obligations). The following table summarizes our contractual 
payment obligations and other commercial commitments and the fiscal year in which they are expected to be paid. 

2021 

2022 

2023 

2024 

2025 

    Thereafter      Total 

Post employment benefit 
obligations (1) 
Website service agreement 
Letters of credit 
Lease obligations (2) 
Lease guarantees (3) 
Other obligations & 
commitments 
Purchase obligations (4) 

  $ 

909    $ 
322      
3,206      
33,894      
347      

1,119    $ 
292      
-      
31,458      
347      

1,051    $ 
292      
-      
26,215      
353      

1,010    $ 
292      
-      
19,249      
382      

1,030    $ 
-      
-      
15,620      
382      

7,878    $ 
-      
-      

12,997  
1,198  
3,206  
38,270       164,706  
1,811  

-      

250      
-      
38,928    $ 

200      
-      
33,416    $ 

100      
-      
28,011    $ 

100      
-      
21,033    $ 

100      
-      
17,132    $ 

-      
-      

750  
-  
46,148    $  184,668  

Total 

  $ 

(1) 

(2) 

(3) 

(4) 

Does not reflect a reduction for the impact of any company owned life insurance proceeds to be received. Currently, we have
life  insurance  policies  with  net  death  benefits  of  $17,068  to  provide  funding  for  these  obligations.  See  Note  10  to  the
Consolidated Financial Statements for more information. 
Does not reflect a reduction for the impact of sublease income to be received. See Note 15 to the Consolidated Financial
Statements for more information. 
Lease guarantees relate to payments we would only be required to make in the event of default on the part of the guaranteed
parties. 
The Company is not a party to any long-term supply contracts with respect to the purchase of raw materials or finished
goods.  At  the  end  of  fiscal  year  2020,  we  had  approximately  $27,718  in  open  purchase  orders,  primarily  for  imported
inventories, which are in the ordinary course of business. 

Off-Balance Sheet Arrangements  

We utilize stand-by letters of credit in the procurement of certain goods in the normal course of business. We lease land and buildings 
that are primarily used in the operation of BHF stores and Zenith distribution facilities. We have guaranteed certain lease obligations 
of licensee operators as part of our retail strategy. See Contractual Obligations and Commitments table above and Note 15 to the 
Consolidated  Financial  Statements,  included  in  Item  8  of  this  Annual  Report  on  Form  10-K,  for  further  discussion  of  lease 

12 

 
 
   
  
  
  
  
  
  
  
  
  
  
    
    
    
    
  
    
    
    
    
    
    
  
  
  
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued 
(Amounts in thousands except share and per share data) 

guarantees,  including  descriptions  of  the  terms  of  such  commitments  and  methods  used  to  mitigate  risks  associated  with  these 
arrangements. 

Contingencies  

We are involved in various claims and litigation as well as environmental matters, which arise in the normal course of business. 
Although the final outcome of these legal and environmental matters cannot be determined, based on the facts presently known, it 
is our opinion that the final resolution of these matters will not have a material adverse effect on our financial position or future 
results of operations. 

Critical Accounting Policies and Estimates 

Our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United 
States of America (“GAAP”) which requires that certain estimates and assumptions be made that affect the amounts and disclosures 
reported in those financial statements and the related accompanying notes. Actual results could differ from these estimates and 
assumptions. We use our best judgment in valuing these estimates and may, as warranted, solicit external advice. Estimates are 
based on current facts and circumstances, prior experience and other assumptions believed to be reasonable. The following critical 
accounting policies, some of which are impacted significantly by judgments, assumptions and estimates, affect our consolidated 
financial statements. 

Revenue  Recognition  -  We  adopted  ASU  2014-09,  Revenue  from  Contracts  with  Customers  (ASC  Topic  606  or  "ASC  606") 
effective as of November 25, 2018, the beginning of our 2019 fiscal year. ASC 606 requires a company to recognize revenue when 
it transfers promised goods or services to customers in an amount that reflects the consideration the company expects to receive in 
exchange for those goods or services. For our wholesale and retail segments, revenue is recognized when the risks and rewards of 
ownership and title to the product have transferred to the buyer. 

At wholesale, transfer occurs and revenue is recognized upon the shipment of goods to independent dealers and licensee-owned 
BHF stores. We offer payment terms varying from 30 to 60 days for wholesale customers. Estimates for returns and allowances 
have been recorded as a reduction of revenue based on our historical return patterns. The contracts with our licensee store owners 
do not provide for any royalty or license fee to be paid to us. 

At retail, transfer occurs and revenue is recognized upon delivery of goods to the customer. We typically collect a significant portion 
of the purchase price as a customer deposit upon order, with the balance typically collected upon delivery. These deposits are carried 
on our balance sheet as a current liability until delivery is fulfilled and amounted to $39,762 and $25,341 as of November 28, 2020 
and November 30, 2019, respectively. Substantially all of the customer deposits held at November 30, 2019 related to performance 
obligations  satisfied  during  fiscal  2020  and  have  therefore  been  recognized  in  revenue  for  the  year  ended  November  28,  2020. 
Estimates for returns and allowances have been recorded as a reduction of revenue based on our historical return patterns. We also 
sell furniture protection plans to our retail customers on behalf of a third party which is responsible for the performance obligations 
under the plans. Revenue from the sale of these plans is recognized upon delivery of the goods net of amounts payable to the third 
party service provider. 

For our logistical services segment, line-haul freight revenue is recognized as services are performed and are billed to the customer 
upon the completion of delivery to the destination. Because the customer receives the benefits of these services as the freight is in 
transit from point of origin to destination, we recognize revenue using a percentage of completion method based on our estimate of 
the amount of time freight has been in transit as of the reporting date compared with our estimate of the total required time for the 
deliveries. We recognize an asset for the amount of line-haul revenue earned but not yet billed which is included in other current 
assets. The balance of this asset was $783 and $441 at November 28, 2020 and November 30, 2019, respectively. Warehousing 
services  revenue  is  based  upon  warehouse  space  occupied  by  a  customer’s  goods  and  inventory  movements  in  and  out  of  a 
warehouse and is recognized as such services are provided and billed to the customer concurrently in the same period. All invoices 
for logistical services are due 30 days from invoice date. 

Allowance for Doubtful Accounts - We maintain an allowance for doubtful accounts for estimated losses resulting from the inability 
of our customers to make required payments. Our accounts receivable reserves were $1,211 and $815 at November 28, 2020 and 
November 30, 2019, respectively, representing 5.1% and 3.7% of our gross accounts receivable balances at those dates, respectively. 
The allowance for doubtful accounts is based on a review of specifically identified customer accounts in addition to an overall aging 
analysis. We evaluate the collectibility of our receivables from our licensees and other customers on a quarterly basis based on 
factors such as their financial condition, our collateral position, potential future plans with licensees and other similar factors. Our 
allowance for doubtful accounts represents our best estimate of potential losses on our accounts and notes receivable and is adjusted 
accordingly  based  on  historical  experience,  current  developments  and  present  economic  conditions  and  trends.  Although  actual 

13 

 
 
   
  
  
  
  
  
  
  
  
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued 
(Amounts in thousands except share and per share data) 

losses have not differed materially from our previous estimates, future losses could differ from our current estimates. Unforeseen 
events such as a licensee or customer bankruptcy filing could have a material impact on our results of operations. 

Inventories - Inventories are stated at the lower of cost or market. Cost is determined for domestic furniture inventories, excluding 
outdoor  furniture  products,  using  the  last-in,  first-out  method. The  cost  of  imported  inventories  and  domestic  outdoor  furniture 
products is determined on a first-in, first-out basis. We estimate an inventory reserve for excess quantities and obsolete items based 
on specific identification and historical write-offs, taking into account future demand and market conditions. Our reserves for excess 
and obsolete inventory were $4,522 and $2,362 at November 28, 2020 and November 30, 2019, respectively, representing 7.6% 
and 3.4%, respectively, of our inventories on a last-in, first-out basis. If actual demand or market conditions in the future are less 
favorable than those estimated, additional inventory write-downs may be required. 

Goodwill – Goodwill represents the excess of the fair value of consideration given over the fair value of the tangible assets and 
liabilities and identifiable intangible assets of businesses acquired. The acquisition of assets and liabilities and the resulting goodwill 
is allocated to the respective reporting unit: Wood, Upholstery, Retail or Logistical Services. We review goodwill at the reporting 
unit level annually for impairment or more frequently if events or circumstances indicate that assets might be impaired. 

In accordance with ASC Topic 350, Intangibles – Goodwill & Other, we first assess qualitative factors to determine whether it is 
more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is 
necessary to perform the quantitative goodwill impairment test described in ASC Topic 350 (as amended by Accounting Standards 
Update  No.  2017-04,  Intangibles  –  Goodwill  and  Other  (Topic  350):  Simplifying  the  Test  for  Goodwill  Impairment,  which  we 
adopted for our annual evaluation of goodwill performed as of September 1, 2019). The more likely than not threshold is defined 
as having a likelihood of more than 50 percent. If, after assessing the totality of events or circumstances, we determine that it is not 
more  likely  than  not  that  the  fair  value  of  a  reporting  unit  is  less  than  its  carrying  amount,  then  performing  the  quantitative 
impairment test is unnecessary and our goodwill is considered to be unimpaired. However, if based on our qualitative assessment 
we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we will proceed 
with performing the quantitative evaluation process. Based on our qualitative assessment as described above for the annual test 
during  fiscal  2019,  we  concluded  that,  given  declines  in  our  income  from  operations,  primarily  resulting  from  operating  losses 
incurred in our retail reporting unit, as well as in our stock price since the previous analysis in fiscal 2018, it was necessary to 
perform the quantitative evaluation in the current year. As a result of this test, we recorded an impairment charge of $1,926 during 
the year ended November 30, 2019. In addition, we performed an interim test of goodwill as of May 30, 2020 due to the severe 
impact of the COVID-19 pandemic and resulting business interruption during the second fiscal quarter of 2020. This interim test 
resulted in an impairment charge of $1,971 for the year ended November 28, 2020. For the annual test of goodwill performed as of 
the beginning of the fourth fiscal quarter of 2020, we performed the qualitative assessment as described above and concluded that 
there was no additional impairment of our goodwill as of November 28, 2020. 

The quantitative evaluation compares the carrying value of each reporting unit that has goodwill with the estimated fair value of the 
respective reporting unit. Should the carrying value of a reporting unit be in excess of the estimated fair value of that reporting unit, 
a goodwill impairment charge will be recognized in the amount by which the reporting unit’s carrying amount exceeds its fair value, 
but not to exceed the total goodwill assigned to the reporting unit. The determination of the fair value of our reporting units is based 
on a combination of a market approach, that considers benchmark company market multiples, an income approach, that utilizes 
discounted cash flows for each reporting unit and other Level 3 inputs as specified in the fair value hierarchy in ASC Topic 820, 
Fair Value Measurements and Disclosure, and, in the case of our retail reporting unit, a cost approach that utilizes estimates of net 
asset value. The cash flows used to determine fair value are dependent on a number of significant management assumptions such 
as our expectations of future performance and the expected future economic environment, which are partly based upon our historical 
experience. Our estimates are subject to change given the inherent uncertainty in predicting future results. Additionally, the discount 
rate and the terminal growth rate are based on our judgment of the rates that would be utilized by a hypothetical market participant. 
As  part  of  the  goodwill  impairment  testing,  we  also  consider  our  market  capitalization  in  assessing  the  reasonableness  of  the 
combined fair values estimated for our reporting units. While we believe such assumptions and estimates are reasonable, the actual 
results may differ materially from the projected amounts. 

Other Intangible Assets – Intangible assets acquired in a business combination and determined to have an indefinite useful life are 
not amortized but are tested for impairment annually or between annual tests when an impairment indicator exists. The recoverability 
of indefinite-lived intangible assets is assessed by comparison of the carrying value of the asset to its estimated fair value. If we 
determine that the carrying value of the asset exceeds its estimated fair value, an impairment loss equal to the excess would be 
recorded. At November 28, 2020, our indefinite-lived intangible assets other than goodwill consist of trade names acquired in the 
acquisitions of Zenith and Lane Venture and have a carrying value of $9,338. 

Definite-lived intangible assets are amortized over their respective estimated useful lives and reviewed for impairment whenever 
events or changes in circumstances indicate that their carrying amounts may not be recoverable. We estimate the useful lives of our 
intangible assets and ratably amortize the value over the estimated useful lives of those assets. If the estimates of the useful lives 

14 

 
 
  
   
  
  
  
  
Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued 
(Amounts in thousands except share and per share data) 

should change, we will amortize the remaining book value over the remaining useful lives or, if an asset is deemed to be impaired, 
a write-down of the value of the asset may be required at such  time. At November 28, 2020 our definite-lived intangible assets 
consist  of  customer  relationships  and  customized  technology  applications  acquired  in  the  acquisition  of  Zenith  and  customer 
relationships acquired in the acquisition of Lane Venture with a total carrying value of $2,343. 

Impairment of Long-Lived Assets - We periodically evaluate whether events or circumstances have occurred that indicate long-lived 
assets may not be recoverable or that the remaining useful life may warrant revision. When such events or circumstances are present, 
we assess the recoverability of long-lived assets by determining whether the carrying value will be recovered through the expected 
undiscounted future cash flows resulting from the use of the asset. In the event the sum of the expected undiscounted future cash 
flows is less than the carrying value of the asset, an impairment loss equal to the excess of the asset’s carrying value over its fair 
value is recorded. When analyzing our real estate properties for potential impairment, we consider such qualitative factors as our 
experience in leasing and selling real estate properties as well as specific site and local market characteristics. Upon the closure of 
a Bassett Home Furnishings store, we generally write off all tenant improvements which are only suitable for use in such a store. 
Right  of  use  assets  under  operating  leases  are  written  down  to  their  estimated  fair  value.  Our  estimates  of the  fair  value  of  the 
impaired right of use assets include estimates of discounted cash flows based upon current market rents and other inputs which we 
consider to be Level 3 inputs as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurement and Disclosure. 

Recent Accounting Pronouncements 

See Note 2 to our Consolidated Financial Statements regarding the impact or potential impact of recent accounting pronouncements 
upon our financial position and results of operations. 

15 

 
 
  
  
  
   
 
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 

We are exposed to market risk from changes in the value of foreign currencies. Substantially all of our imports purchased outside 
of North America are denominated in U.S. dollars. Therefore, we believe that gains or losses resulting from changes in the value of 
foreign currencies relating to foreign purchases not denominated in U.S. dollars would not be material to our results from operations 
in fiscal 2020. 

We are exposed to market risk from changes in the cost of raw materials used in our manufacturing processes, principally wood, 
woven fabric, and foam products. The cost of foam products, which are petroleum-based, is sensitive to changes in the price of oil. 

We are also exposed to commodity price risk related to diesel fuel prices for fuel used in our logistical services and retail segments. 
We manage our exposure to that risk primarily through the application of fuel surcharges to our customers. 

We have potential exposure to market risk related to conditions in the commercial real estate market. Our retail real estate holdings 
of  $17,338  and  $17,845  at  November  28,  2020  and  November  30,  2019,  respectively,  for  Company-owned  stores  could  suffer 
significant impairment in value if we are forced to close additional stores and sell or lease the related properties during periods of 
weakness in certain markets. Additionally, if we are required to assume responsibility for payment under the lease obligations of 
$1,811 and $1,776 which we have guaranteed on behalf of licensees as of November 28, 2020 and November 30, 2019, respectively, 
we may not be able to secure sufficient sub-lease income in the current market to offset the payments required under the guarantees. 
We are also exposed to risk related to conditions in the commercial real estate rental market with respect to the right-of-use assets 
we carry on our balance sheet for leased retail store locations and warehouse and distribution facilities. At November 28, 2020, the 
unamortized balance of such right-of-use assets totaled $107,392. Should we have to close or otherwise abandon one of these leased 
locations, we could incur additional impairment charges if rental market conditions do not support a fair value for the right of use 
asset in excess of its carrying value. 

Number of 
Locations 

Aggregate 

     Square Footage 

Net Book 
Value 
(in thousands) 

Real estate occupied by Company-owned and operated 

stores, included in property and equipment, net 

8      

201,096    $ 

17,338  

16 

 
  
  
  
  
  
  
    
  
      
  
    
  
  
  
    
    
  
  
  
    
  
  
      
        
         
  
    
  
 
 
As  used  herein,  unless  the  context  otherwise  requires,  “Bassett,”  the  “Company,”  “we,”  “us”  and  “our”  refer  to Bassett 
Furniture Industries, Incorporated and its subsidiaries. References to 2020, 2019, 2018, 2017 and 2016 mean the fiscal years ended 
November 28, 2020, November 30, 2019, November 24, 2018, November 25, 2017 and November 26, 2015. Please note that fiscal 
2019 contained 53 weeks. 

SAFE-HARBOR, FORWARD-LOOKING STATEMENTS 

This report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 
with  respect  to  the  financial  condition,  results  of  operations  and  business  of  Bassett  Furniture  Industries,  Incorporated  and 
subsidiaries. Such forward-looking statements are identified by use of forward-looking words such as “anticipates”, “believes”, 
“plans”, “estimates”, “expects”, “aimed” and “intends” or words or phrases of similar expression. These forward-looking statements 
involve certain risks and uncertainties. No assurance can be given that any such matters will be realized. Important factors, which 
should  be  read  in  conjunction  with  Item  1A  “Risk  Factors”,  that  could  cause  actual  results  to  differ  materially  from  those 
contemplated by such forward-looking statements include: 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

● 

the impact of the ongoing coronavirus (“COVID-19”) outbreak upon our ability to maintain normal 
operations  at  our  retail  stores  and  manufacturing  facilities  and  the  resulting  effects  any  future 
interruption  of  those  operations  may  have  upon  our  financial  condition,  results  of  operations  and 
liquidity, as well as the impact of the outbreak upon general economic conditions, including consumer 
spending and the strength of the housing market in the United States 

competitive conditions in the home furnishings industry 

overall retail traffic levels in stores and on the web and consumer demand for home furnishings 

ability of our customers and consumers to obtain credit 

the profitability of the stores (independent licensees and Company-owned retail stores) which may 
result in future store closings. 

ability  to  implement  our  Company-owned  retail  strategies  and  realize  the  benefits  from  such 
strategies, including our initiatives to expand and improve our digital marketing capabilities, as they 
are implemented 

fluctuations in the cost and availability of raw materials, fuel, labor and sourced products, including 
those which may result from the imposition of new or increased duties, tariffs, retaliatory tariffs and 
trade limitations with respect to foreign-sourced products 

results of marketing and advertising campaigns 

effectiveness and security of our information technology systems 

future tax legislation, or regulatory or judicial positions 

ability to efficiently manage the import supply chain to minimize business interruption 

concentration  of  domestic  manufacturing,  particularly  of  upholstery  products,  and  the  resulting 
exposure to business interruption from accidents, weather and other events and circumstances beyond 
our control 

general  risks  associated  with  providing  freight  transportation  and  other  logistical  services  by  our 
wholly-owned subsidiary Zenith Freight Lines, LLC 

You should keep in mind that any forward-looking statement made by us in this report speaks only as of the date on which such 
forward-looking statement is made. New risks and uncertainties arise from time to time, and it is impossible for us to predict these 
events or how they may affect us. We have no duty to, and do not intend to, update or revise the forward-looking statements in this 
report after the date hereof, except as may be required by law. In light of these risks and uncertainties, you should keep in mind that 
the events described in any forward-looking statement made in this report, might not occur. 

17 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
Consolidated Balance Sheets 
Bassett Furniture Industries, Incorporated and Subsidiaries 
November 28, 2020 and November 30, 2019 
(In thousands, except share and per share data) 

Assets 
Current assets 

Cash and cash equivalents 
Short-term investments 
Accounts receivable, net of allowance for doubtful accounts of $1,211 and $815 as of 

  $ 

November 28, 2020 and November 30, 2019, respectively 

Inventories 
Recoverable income taxes 
Other current assets 

Total current assets 

Property and equipment, net 

Other long-term assets 

Deferred income taxes, net 
Goodwill and other intangible assets 
Right of use assets under operating leases 
Other 

Total other long-term assets 
Total assets 

Liabilities and Stockholders’ Equity 
Current liabilities 
Accounts payable 
Accrued compensation and benefits 
Customer deposits 
Current portion of operating lease obligations 
Other accrued liabilities 

Total current liabilities 

Long-term liabilities 

Post employment benefit obligations 
Long-term portion of operating lease obligations 
Other long-term liabilities 

Total long-term liabilities 

Commitments and Contingencies 

Stockholders’ equity 

  $ 

  $ 

2020 

2019 

45,799     $ 
17,715       

22,340       
54,886       
9,666       
10,272       
160,678       

19,687   
17,436   

21,378   
66,302   
329   
11,654   
136,786   

90,917       

101,724   

4,587       
23,827       
116,903       
5,637       
150,954       
402,549     $ 

5,744   
26,176   
-   
5,336   
37,256   
275,766   

23,426     $ 
16,964       
39,762       
27,078       
11,141       
118,371       

12,089       
111,972       
2,087       
126,148       

23,677   
11,308   
25,341   
-   
11,945   
72,271   

11,830   
-   
12,995   
24,825   

Common stock, $5 par value; 50,000,000 shares authorized; issued and outstanding 

9,942,787 at November 28, 2020 and 10,116,290 at November 30, 2019 

Retained earnings 
Additional paid-in-capital 
Accumulated other comprehensive loss 

Total stockholders' equity 
Total liabilities and stockholders’ equity 

49,714       
109,710       
-       
(1,394 )     
158,030       
402,549     $ 

50,581   
129,130   
195   
(1,236 ) 
178,670   
275,766   

  $ 

The accompanying notes to consolidated financial statements are an integral part of these statements. 

18 

 
  
  
  
    
  
      
        
  
      
        
  
    
    
    
    
    
    
  
      
        
  
    
  
      
        
  
      
        
  
    
    
    
    
    
  
      
        
  
      
        
  
      
        
  
    
    
    
    
    
  
      
        
  
      
        
  
    
    
    
    
  
      
        
  
      
        
  
  
      
        
  
      
        
  
    
    
    
    
    
  
  
  
 
 
Consolidated Statements of Operations 
Bassett Furniture Industries, Incorporated and Subsidiaries 
For the years ended November 28, 2020, November 30, 2019, and November 24, 2018 
(In thousands, except per share data) 

Sales revenue: 

Furniture and accessories 
Logistics 

Total sales revenue 

2020 

2019 

2018 

  $ 

337,672    $ 
48,191      
385,863      

403,865     $ 
48,222       
452,087       

402,469   
54,386   
456,855   

Cost of furniture and accessories sold 

163,567      

179,244       

179,581   

Selling, general and administrative expenses excluding new store pre-

opening costs 

New store pre-opening costs 
Asset impairment charges 
Goodwill impairment charge 
Litigation expense 
Lease exit costs 
Early retirement program 

223,314      
-      
12,184      
1,971      
1,050      
-      
-      

264,280       
1,117       
4,431       
1,926       
700       
149       
835       

260,339   
2,081   
469   
-   
-   
301   
-   

Income (loss) from operations 

(16,223)     

(595 )     

14,084   

Interest income 
Interest expense 
Other loss, net 

236      
(49)     
(750)     

568       
(6 )     
(1,707 )     

431   
(57 ) 
(2,252 ) 

Income (loss) before income taxes 

(16,786)     

(1,740 )     

12,206   

Income tax expense (benefit) 

(6,365)     

188       

3,988   

Net income (loss) 

Net income per share 

Basic income (loss) per share 
Diluted income (loss) per share 

Dividends per share 

Regular dividends 
Special dividend 

  $ 

(10,421)   $ 

(1,928 )   $ 

8,218   

  $ 
  $ 

  $ 

(1.05)   $ 
(1.05)   $ 

(0.19 )   $ 
(0.19 )   $ 

0.77   
0.77   

0.455    $ 

0.50     $ 

0.47   

The accompanying notes to consolidated financial statements are an integral part of these statements. 

19 

 
  
  
  
    
    
  
  
      
        
        
  
      
        
        
  
    
    
  
      
        
        
  
    
  
      
        
        
  
    
    
    
    
    
    
    
  
      
        
        
  
    
  
      
        
        
  
    
    
    
  
      
        
        
  
    
    
  
      
        
        
  
  
      
        
        
  
      
        
        
  
  
      
        
        
  
  
      
        
        
  
      
        
        
  
   
     
      
   
  
  
  
  
 
 
Consolidated Statements of Comprehensive Income (Loss) 
Bassett Furniture Industries, Incorporated and Subsidiaries 
For the years ended November 28, 2020, November 30, 2019, and November 24, 2018 
(In thousands) 

Net income (loss) 
Other comprehensive income (loss): 

2020 

2019 

2018 

  $ 

(10,421)   $ 

(1,928)   $ 

8,218  

Recognize prior service cost associated Actuarial adjustment to 

Long Term Cash Awards (LTCA) 
Amortization associated with LTCA 
Income taxes related to LTCA 
Actuarial adjustment to supplemental executive retirement defined 

benefit plan (SERP) 

Amortization associated with SERP 
Income taxes related to SERP 

(86)     
125      
(10)     

(259)     
8      
64      

(141)       
124      
4      

1,313      
184      
(382)     

Other comprehensive income (loss), net of tax 

(158)     

1,102      

126  
(32) 

616  
304  
(237) 

777  

Total comprehensive income (loss) 

  $ 

(10,579)   $ 

(826)   $ 

8,995  

The accompanying notes to consolidated financial statements are an integral part of these statements. 

20 

 
  
  
  
    
    
  
  
      
        
        
  
      
        
        
  
    
  
    
    
    
    
    
  
      
        
        
  
    
  
      
        
        
  
  
  
  
  
 
 
Consolidated Statements of Cash Flows 
Bassett Furniture Industries, Incorporated and Subsidiaries 
For the years ended November 28, 2020, November 30, 2019, and November 24, 2018 
(In thousands) 

Operating activities: 
Net income (loss) 
Adjustments to reconcile net income (loss) to net cash provided by 

operating activities: 

2020 

2019 

2018 

  $ 

(10,421)   $ 

(1,928)   $ 

8,218  

Depreciation and amortization 
Non-cash goodwill impairment charge 
Non-cash asset impairment charges 
Non-cash portion of lease exit costs 
Bad debt valuation charges 
Net (gain) loss on disposals of property and equipment 
Gains on lease modifications 
Inventory valuation charges 
Deferred income taxes 
Other, net 
Changes in operating assets and liabilities 

Accounts receivable 
Inventories 
Other current and long-term assets 
Right of use assets under operating leases 
Customer deposits 
Accounts payable and accrued liabilities 
Obligations under operating leases 

Net cash provided by operating activities 

Investing activities: 
Purchases of property and equipment 
Proceeds from sales of property and equipment 
Cash paid for business acquisitions, net of cash acquired 
Puchases of investments 
Proceeds from maturities of investments 
Other 

Net cash used in investing activities 

Financing activities:  
Cash dividends 
Proceeds from exercise of stock options 
Issuance of common stock 
Repurchases of common stock 
Taxes paid related to net share settlement of equity awards 
Repayment of finance lease obligations 
Payments on notes and equipment loans 

Net cash used in financing activities 

Change in cash and cash equivalents 
Cash and cash equivalents - beginning of year 

13,480      
1,971      
12,184      
-      
492      
(81)     
(1,313)     
4,922      
2,513      
(51)     

(1,454)     
6,494      
(9,325)     
32,107      
14,421      
5,965      
(35,229)     
36,675      

(6,029)     
2,345      
-      
(295)     
16      
216      
(3,747)     

(4,544)     
-      
285      
(2,208)     
(228)     
(121)     
-      
(6,816)     
26,112      
19,687      

13,500      
1,926      
4,431      
149      
61      
515      
-      
2,254      
(2,890)     
1,497      

(2,616)     
(5,196)     
1,017      
-      
(1,816)     
(1,095)     
-      
9,809      

(17,375)     
1,643      
-      
-      
5,207      
(648)     
(11,173)     

(5,133)     
25      
328      
(7,345)     
-      
-      
(292)     
(12,417)     
(13,781)     
33,468      

13,203  
-  
469  
301  
339  
(234) 
-  
2,309  
4,663  
2,607  

1,393  
(8,307) 
(961) 
-  
50  
5,857  
-  
29,907  

(18,301) 
2,689  
(15,556) 
-  
482  
(1,287) 
(31,973) 

(8,800) 
27  
355  
(5,946) 
(674) 
-  
(3,377) 
(18,415) 
(20,481) 
53,949  

Cash and cash equivalents - end of year 

  $ 

45,799    $ 

19,687    $ 

33,468  

The accompanying notes to consolidated financial statements are an integral part of these statements. 

21 

 
  
  
  
    
    
  
      
        
        
  
      
        
        
  
    
    
    
    
    
    
    
    
    
    
      
        
        
  
    
    
    
    
    
    
    
    
  
      
        
        
  
      
        
        
  
    
    
    
    
    
    
    
  
      
        
        
  
      
        
        
  
    
    
    
    
    
    
    
    
    
    
  
    
     
     
  
  
  
  
  
 
 
Consolidated Statements of Stockholders’ Equity 
Bassett Furniture Industries, Incorporated and Subsidiaries 
For the years ended November 28, 2020, November 30, 2019, and November 24, 2018 
(In thousands, except share and per share data) 

Common Stock 

   Shares 

     Amount 

     Additional       
     paid-in 
capital 

     Retained       comprehensive       
     earnings       income (loss)      

Total 

     Accumulated        
other 

Balance, November 25, 2017 

     10,737,950    $ 

53,690     $ 

962    $ 

139,378    $ 

(2,570 )   $ 

191,460  

8,218      

-       

8,218  

Comprehensive income 

Net income 
Amortization of defined benefit 

plan costs, net of tax 

Actuarial adjustments to defined 

benefit plans, net of tax 

Reclassification of certain tax 

effects 

Regular dividends ($0.47 per share)     
Issuance of common stock 
Purchase and retirement of common 

-      

-      

-      

-       

-       

-       

-      

-      

-      

-      

-      

-      
-      
63,403      

-       
-       
317       

-      
-      
65      

545      
(5,041)     
-      

stock 

Stock-based compensation 

(273,717)     
-      

(1,369 )     
-       

(2,160)     
1,133      

(3,091)     
-      

Comprehensive income (loss) 

Net loss 
Amortization of defined benefit 

plan costs, net of tax 

Actuarial adjustments to defined 

benefit plans, net of tax 
Cumulative effect of a change in 

accounting principle 

Regular dividends ($0.50 per share)     
Issuance of common stock 
Purchase and retirement of common 

-      

-      

-      

-       

-       

-       

-      

-      

-      

-      

-      
-      
102,303      

-       
-       
511       

-      
-      
217      

(21)     
(5,133)     
-      

stock 

Stock-based compensation 

(513,649)     
-      

(2,568 )     
-       

(980)     
958      

(3,797)     
-      

319       

458       

(545 )     
-       
-       

-       
-       

319  

458  

-  
(5,041) 
382  

(6,620) 
1,133  

230       

872       

-       
-       
-       

-       
-       

230  

872  

(21) 
(5,133) 
728  

(7,345) 
958  

Balance, November 24, 2018 

     10,527,636      

52,638       

-      

140,009      

(2,338 )     

190,309  

-      

(1,928)     

-       

(1,928) 

Balance, November 30, 2019 

     10,116,290      

50,581       

195      

129,130      

(1,236 )     

178,670  

Comprehensive income (loss) 

Net loss 
Amortization of defined benefit 

plan costs, net of tax 

Actuarial adjustments to defined 

benefit plans, net of tax 
Cumulative effect of a change in 

accounting principle 

Regular dividends ($0.455 per 

share) 

Issuance of common stock 
Purchase and retirement of common 

-      

-      

-      

-      

-       

-       

-       

-       

-      

(10,421)     

-       

(10,421) 

-      

-      

-      

-      

98       

98  

(256 )     

(256) 

-      

(3,785)     

-       

(3,785) 

-      
43,218      

-       
216       

-      
69      

(4,545)     
-      

-       
-       

(4,545) 
285  

stock 

Stock-based compensation 
Balance, November 28, 2020 

(216,721)     
-      
     9,942,787    $ 

(1,083 )     
-       
49,714     $ 

(684)     
420      
-    $ 

(669)     
-      
109,710    $ 

-       
-       
(1,394 )   $ 

(2,436) 
420  
158,030  

The accompanying notes to consolidated financial statements are an integral part of these statements. 

22 

 
  
  
    
  
      
  
      
  
      
  
  
  
  
    
  
      
  
  
    
      
  
  
  
  
  
  
  
    
  
  
      
        
        
        
         
        
  
  
      
        
        
        
         
        
  
      
        
        
        
         
        
  
    
    
    
    
    
    
    
  
      
        
        
        
         
        
  
  
      
        
        
        
         
        
  
      
        
        
        
         
        
  
    
    
    
    
    
    
    
  
      
        
        
        
         
        
  
  
      
        
        
        
         
        
  
      
        
        
        
         
        
  
    
    
    
    
    
    
    
    
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
Notes to Consolidated Financial Statements 
(In thousands, except share and per share data) 

1.  Description of Business  

Bassett  Furniture  Industries,  Incorporated  (together  with  its  consolidated  subsidiaries,  “Bassett”,  “we”,  “our”,  the  “Company”) 
based in Bassett, Virginia, is a leading manufacturer, marketer and retailer of branded home furnishings. Bassett’s full range of 
furniture products and accessories, designed to provide quality, style and value, are sold through an exclusive nation-wide network 
of 97 retail stores known as Bassett Home Furnishings (referred to as “BHF”). Of the 97 stores, the Company owns and operates 63 
stores (“Company-owned retail stores”) with the other 34 being independently owned (“licensee operated”). We also distribute our 
products through other multi-line furniture stores, many of which feature Bassett galleries or design centers. 

We sourced approximately 24% of our wholesale products from various foreign countries, with the remaining volume produced at 
our five domestic manufacturing facilities. 

Lane Venture Acquisition 

On December 21, 2017, we purchased certain assets and assumed certain liabilities of Lane Venture from Heritage Home Group, 
LLC. Lane Venture is being operated as a component of our wholesale segment (see Note 3, Business Combinations). Results of 
operations for the Lane Venture business are included in our consolidated statements of operations since the date of acquisition. 

Impact of the COVID-19 Pandemic Upon our Financial Condition and Results of Operations 

On  March  11,  2020,  the  World  Health  Organization  declared  the  current  coronavirus  (“COVID-19”)  outbreak  to  be  a  global 
pandemic.  In  response  to  this  declaration  and  the  rapid  spread  of  COVID-19  within  the  United  States,  federal,  state  and  local 
governments throughout the country have imposed varying degrees of restrictions on social and commercial activity to promote 
social distancing in an effort to slow the spread of the illness. These measures had a significant adverse impact upon many sectors 
of the economy, including non-essential retail commerce. 

In response to these measures and for the protection of our employees and customers, we temporarily closed our dedicated stores, 
our manufacturing locations and many of our warehouses for several weeks primarily during the second fiscal quarter of 2020. This 
extended  period  of  suspended  operations  has  had  a  material  adverse  impact  upon  our  results  of  operations  for  the  year  ended 
November 28, 2020. In addition to operating losses resulting from severely reduced sales volumes, our loss for fiscal 2020 also 
included charges for goodwill impairment (Note 8) as well as for the impairment of certain other long-lived assets (Note 14) taken 
during the second quarter of 2020. However, since restarting our manufacturing operations and reopening stores, we have seen a 
significant improvement in business conditions which has allowed us to return to overall profitability for the third and fourth fiscal 
quarters of 2020 and to generate positive cash flow for the year. All retail stores that were temporarily closed during the second 
quarter had reopened by mid-June, and written orders taken at both the retail and wholesale segments exceeded levels from the third 
and fourth fiscal quarters of 2019. The improvement in operating cash flow allowed us to restore the temporary salary and wage 
reductions which had been enacted during the second quarter, resume the payment of quarterly dividends, including the payment of 
the  dividend  declared  and  subsequently  suspended  during  the  second  quarter,  and  to  resume  share  repurchases  under  our  share 
repurchase program. Tempering these improvements are the continuing logistical challenges faced by the entire home furnishings 
industry resulting from COVID-related labor shortages and supply chain disruptions creating significant delays in order fulfillment 
and increasing backlogs. 

Whereas most state and local governments have eased restrictions on commercial retail activity, it is possible that a resurgence in 
COVID-19 cases could prompt a return to tighter restrictions in certain areas of the country. Furthermore, while the home furnishings 
industry has fared much better during the pandemic than certain other sectors of the economy, continued economic weakness may 
eventually have an adverse impact upon our business, and order cancellations could result if the present delays in order fulfillment 
continue for an extended period of time. Therefore, significant uncertainty remains regarding the ongoing impact of the COVID-19 
outbreak upon our financial condition and future results of operations, as well as upon the significant estimates and assumptions we 
utilize in reporting certain assets and liabilities. 

23 

 
 
  
  
  
  
  
  
  
  
  
  
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

2.  Significant Accounting Policies 

Basis of Presentation and Principles of Consolidation 

Our fiscal year ends on the last Saturday in November, which periodically results in a 53-week year.   Fiscal 2019 contained 53 
weeks while fiscal 2020 and 2018 each contained 52 weeks. The Consolidated Financial Statements include the accounts of Bassett 
Furniture  Industries,  Incorporated  and  our  majority-owned  subsidiaries  in  which  we  have  a  controlling  interest.  All  significant 
intercompany  balances  and  transactions  are  eliminated  in  consolidation.  Accordingly,  the  results  of  Lane  Venture  have  been 
consolidated with our results since the date of the acquisition. Sales of logistical services from Zenith to our wholesale and retail 
segments have been eliminated, and Zenith’s operating costs and expenses since the date of acquisition are included in selling, 
general and administrative expenses in our consolidated statements of net income. The financial statements have been prepared in 
accordance with generally accepted accounting principles in the United States ("GAAP"). Unless otherwise indicated, references in 
the  Consolidated  Financial  Statements  to  fiscal  2020,  2019  and  2018  are  to  Bassett's  fiscal  year  ended  November  28,  2020, 
November 30, 2019 and November 24, 2018, respectively. References to the “ASC” included hereinafter refer to the Accounting 
Standards Codification established by the Financial Accounting Standards Board as the source of authoritative GAAP. 

We analyzed our licensees under the requirements for variable interest entities (“VIEs”). All of these licensees operate as BHF 
stores and are furniture retailers. We sell furniture to these licensees, and in some cases have extended credit beyond normal terms, 
made lease guarantees, guaranteed loans, or loaned directly to the licensees. We have recorded reserves for potential exposures 
related to these licensees. See Note 15 for disclosure of leases and lease guarantees. Based on financial projections and best available 
information,  all  licensees  have  sufficient  equity  to  carry  out  their  principal  operating  activities  without  subordinated  financial 
support.  Furthermore,  we  believe  that  the  power  to  direct  the  activities  that  most  significantly  impact  the  licensees’  operating 
performance continues to lie with the ownership of the licensee dealers. Our rights to assume control over or otherwise influence 
the licensees’ significant activities only exist pursuant to our license and security agreements and are in the nature of protective 
rights as contemplated under ASC Topic 810. We completed our assessment for other potential VIEs, and concluded that there were 
none. We will continue to reassess the status of potential VIEs including when facts and circumstances surrounding each potential 
VIE change. 

Use of Estimates 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us 
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities 
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the 
more significant estimates include allowances for doubtful accounts, calculation of inventory reserves, the valuation of our reporting 
units for the purpose of testing the carrying value of goodwill, valuation of income tax reserves, lease guarantees, insurance reserves, 
assumptions related to our post-employment benefit obligations and the valuation of our right of use assets. Actual results could 
differ from those estimates. 

Revenue Recognition 

We adopted ASU 2014-09, Revenue from Contracts with Customers (ASC Topic 606 or "ASC 606") effective as of November 25, 
2018, the beginning of our 2019 fiscal year. ASC 606 requires a company to recognize revenue when it transfers promised goods 
or services to customers in an amount that reflects the consideration the company expects to receive in exchange for those goods or 
services. For our wholesale and retail segments, revenue is recognized when the risks and rewards of ownership and title to the 
product have transferred to the buyer. 

At wholesale, transfer occurs and revenue is recognized upon the shipment of goods to independent dealers and licensee-owned 
BHF stores. We offer payment terms varying from 30 to 60 days for wholesale customers. Estimates for returns and allowances 
have been recorded as a reduction of revenue based on our historical return patterns. The contracts with our licensee store owners 
do not provide for any royalty or license fee to be paid to us. 

At retail, transfer occurs and revenue is recognized upon delivery of goods to the customer. We typically collect a significant portion 
of the purchase price as a customer deposit upon order, with the balance typically collected upon delivery. These deposits are carried 
on our balance sheet as a current liability until delivery is fulfilled and amounted to $39,762 and $25,341 as of November 28, 2020 
and November 30, 2019, respectively. Substantially all of the customer deposits held at November 30, 2019 related to performance 
obligations  satisfied  during  fiscal  2020  and  have  therefore  been  recognized  in  revenue  for  the  year  ended  November  28,  2020. 
Estimates for returns and allowances have been recorded as a reduction of revenue based on our historical return patterns. We also 
sell furniture protection plans to our retail customers on behalf of a third party which is responsible for the performance obligations 
under the plans. Revenue from the sale of these plans is recognized upon delivery of the goods net of amounts payable to the third 
party service provider. 

24 

 
 
  
  
  
  
  
  
  
  
  
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

For our logistical services segment, line-haul freight revenue is recognized as services are performed and are billed to the customer 
upon the completion of delivery to the destination. Because the customer receives the benefits of these services as the freight is in 
transit from point of origin to destination, we recognize revenue using a percentage of completion method based on our estimate of 
the amount of time freight has been in transit as of the reporting date compared with our estimate of the total required time for the 
deliveries. We recognize an asset for the amount of line-haul revenue earned but not yet billed which is included in other current 
assets. The balance of this asset was $783 and $441 at November 28, 2020 and November 30, 2019, respectively. Warehousing 
services  revenue  is  based  upon  warehouse  space  occupied  by  a  customer’s  goods  and  inventory  movements  in  and  out  of  a 
warehouse and is recognized as such services are provided and billed to the customer concurrently in the same period. All invoices 
for logistical services are due 30 days from invoice date. 

Sales commissions are expensed as part of selling, general and administrative expenses at the time revenue is recognized because 
the amortization period would have been one year or less. Sales commissions at wholesale are accrued upon the shipment of goods. 
Sales commissions at retail are accrued at the time a sale is written (i.e. – when the customer’s order is placed) and are carried as 
prepaid commissions in other current assets until the goods are delivered and revenue is recognized. At November 28, 2020 and 
November 30, 2019, our balance of prepaid commissions included in other current assets was $4,279 and $2,435, respectively. We 
do not incur sales commissions in our logistical services segment. 

We adopted ASC 606 using the modified retrospective method and applied the standard only to contracts that were not completed 
as of initial application. Results for reporting periods beginning after November 24, 2018 are presented under the new standard, 
while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting. Our adoption 
of  ASC  606  did  not  have  a  material  impact  on  our  consolidated  financial  statements  except  for  our  enhanced  presentation  and 
disclosures. 

Upon adoption of ASC 606, we have adopted the following policy elections and practical expedients: 

•  We exclude from revenue amounts collected from customers for sales tax, which is consistent with our policy prior to the

adoption of ASC 606. 

•  We do not adjust the promised amount of consideration for the effects of a significant financing component since the
period of time between transfer of our goods or services and the collection of consideration from the customer is less than
one year. 

•  We do not disclose the value of unsatisfied performance obligations because the transfer of goods or services is made

within one year of the placement of customer orders. 

See Note 18, Segment Information, for disaggregated revenue information. 

Cash Equivalents and Short-Term Investments 

The Company considers cash on hand, demand deposits in banks and all highly liquid investments with an original maturity of three 
months  or  less  to  be  cash  and  cash  equivalents.  Our  short-term  investments  consist  of  certificates  of  deposit  that  have  original 
maturities of twelve months or less but greater than three months. 

Accounts Receivable 

Substantially all of our trade accounts receivable is due from customers located within the United States. We maintain an allowance 
for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. The allowance 
for doubtful accounts is based on a review of specifically identified accounts in addition to an overall aging analysis. Judgments are 
made with respect to the collectibility of accounts receivable based on historical experience and current economic trends. Actual 
losses could differ from those estimates. 

25 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

Concentrations of Credit Risk and Major Customers 

Financial instruments that subject us to credit risk consist primarily of investments, accounts and notes receivable and financial 
guarantees. Investments are managed within established guidelines to mitigate risks. Accounts and notes receivable and financial 
guarantees subject us to credit risk partially due to the concentration of amounts due from and guaranteed on behalf of independent 
licensee customers. At November 28, 2020 and November 30, 2019, our aggregate exposure from receivables and guarantees related 
to customers consisted of the following: 

Accounts receivable, net of allowances (Note 5) 
Contingent obligations under lease and loan guarantees, less amounts recognized (Note 15) 
Other 

Total credit risk exposure related to customers 

2020 

2019 

 $

 $

22,340  $
1,760    
376    
24,476  $

21,378 
1,751 
168 
23,297 

At November 28, 2020 and November 30, 2019, approximately 24% and 28%, respectively, of the aggregate risk exposure, net of 
reserves, shown above was attributable to five customers. In fiscal 2020, 2019 and 2018, no customer accounted for more than 10% 
of  total  consolidated  net  sales.  However,  two  customers  accounted  for  approximately  29%,  44%  and  40%  of  our  consolidated 
revenue from logistical services during 2020, 2019 and 2018, respectively. 

We have no foreign manufacturing or retail operations. We define export sales as sales to any country or territory other than the 
United States or its territories or possessions. Our export sales were approximately $789, $1,846, and $1,587 in fiscal 2020, 2019, 
and 2018, respectively. All of our export sales are invoiced and settled in U.S. dollars. 

Inventories 

Inventories (retail merchandise, finished goods, work in process and raw materials) are stated at the lower of cost or market. Cost 
is determined for domestic manufactured furniture inventories using the last-in, first-out (“LIFO”) method because we believe this 
methodology provides better matching of revenue and expenses. The cost of imported inventories as well as Lane Venture and 
Bassett Outdoor product inventories are determined on a first-in, first-out (“FIFO”) basis. Inventories accounted for under the LIFO 
method represented 53% and 52% of total inventory before reserves at November 28, 2020 and November 30, 2019, respectively. 
We estimate inventory reserves for excess quantities and obsolete items based on specific identification and historical write-offs, 
taking into account future demand and market conditions. If actual demand or market conditions in the future are less favorable than 
those estimated, additional inventory write-downs may be required. 

Property and Equipment 

Property and equipment is comprised of all land, buildings and leasehold improvements and machinery and equipment used in the 
manufacturing and warehousing of furniture, our Company-owned retail operations, our logistical services operations, and corporate 
administration.  This  property  and  equipment  is  stated  at  cost less  accumulated  depreciation.  Depreciation  is  computed  over  the 
estimated  useful  lives  of  the  respective  assets  utilizing  the  straight-line  method.  Buildings  and  improvements  are  generally 
depreciated over a period of 10 to 39 years. Machinery and equipment are generally depreciated over a period of 5 to 10 years. 
Leasehold improvements are amortized based on the underlying lease term, or the asset’s estimated useful life, whichever is shorter. 

Goodwill  

Goodwill represents the excess of the fair value of consideration given over the fair value of the tangible assets and liabilities and 
identifiable intangible assets of businesses acquired. The acquisition of assets and liabilities and the resulting goodwill is allocated 
to the respective reporting unit: Wood, Upholstery, Retail or Logistical Services. We review goodwill at the reporting unit level 
annually for impairment or more frequently if events or circumstances indicate that assets might be impaired. 

26 

 
 
  
  
  
 
  
 
   
   
  
  
  
  
  
  
  
  
  
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

In accordance with ASC Topic 350, Intangibles – Goodwill & Other, we first assess qualitative factors to determine whether it is 
more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is 
necessary to perform the quantitative goodwill impairment test described in ASC Topic 350 (as amended by Accounting Standards 
Update  No.  2017-04,  Intangibles  –  Goodwill  and  Other  (Topic  350):  Simplifying  the  Test  for  Goodwill  Impairment,  which  we 
adopted for our annual evaluation of goodwill performed as of September 1, 2019). The more likely than not threshold is defined 
as having a likelihood of more than 50 percent. If, after assessing the totality of events or circumstances, we determine that it is not 
more  likely  than  not  that  the  fair  value  of  a  reporting  unit  is  less  than  its  carrying  amount,  then  performing  the  quantitative 
impairment test is unnecessary and our goodwill is considered to be unimpaired. However, if based on our qualitative assessment 
we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we will proceed 
with performing the quantitative evaluation process. Based on our qualitative assessment as described above for the annual test 
during  fiscal  2019,  we  concluded  that,  given  declines  in  our  income  from  operations,  primarily  resulting  from  operating  losses 
incurred in our retail reporting unit, as well as in our stock price since the previous analysis in fiscal 2018, it was necessary to 
perform the quantitative evaluation. As a result of this test, we recorded an impairment charge of $1,926 during the year ended 
November 30, 2019. In addition, we performed an interim test of goodwill as of May 30, 2020 due to the severe impact of the 
COVID-19 pandemic and resulting business interruption during the second fiscal quarter of 2020. This interim test resulted in an 
impairment charge of $1,971 for the year ended November 28, 2020. For the annual test of goodwill performed as of the beginning 
of the fourth fiscal quarter of 2020, we performed the qualitative assessment as described above and concluded that there was no 
additional impairment of our goodwill as of November 28, 2020. 

The quantitative evaluation compares the carrying value of each reporting unit that has goodwill with the estimated fair value of the 
respective reporting unit. Should the carrying value of a reporting unit be in excess of the estimated fair value of that reporting unit, 
a goodwill impairment charge will be recognized in the amount by which the reporting unit’s carrying amount exceeds its fair value, 
but not to exceed the total goodwill assigned to the reporting unit. The determination of the fair value of our reporting units is based 
on a combination of a market approach, that considers benchmark company market multiples, an income approach, that utilizes 
discounted cash flows for each reporting unit and other Level 3 inputs as specified in the fair value hierarchy in ASC Topic 820, 
Fair Value Measurements and Disclosure (see Note 4), and, in the case of our retail reporting unit, a cost approach that utilizes 
estimates of net asset value. The cash flows used to determine fair value are dependent on a number of significant management 
assumptions such as our expectations of future performance and the expected future economic environment, which are partly based 
upon  our  historical  experience.  Our  estimates  are  subject  to  change  given  the  inherent  uncertainty  in  predicting  future  results. 
Additionally, the discount rate and the terminal growth rate are based on our judgment of the rates that would be utilized  by  a 
hypothetical market participant. As part of the goodwill impairment testing, we also consider our market capitalization in assessing 
the reasonableness of the combined fair values estimated for our reporting units. While we believe such assumptions and estimates 
are reasonable, the actual results may differ materially from the projected amounts. See Note 8 for additional information regarding 
the results of our annual goodwill impairment test performed as of September 1, 2019 and our interim test performed as of May 30, 
2020. 

Leases 

Effective  as  of  the  beginning  of  fiscal  2020,  we  adopted  ASU  2016-02,  Leases  (Topic  842)  and  all  related  amendments.  The 
guidance requires lessees to recognize substantially all leases on their balance sheet as a right-of-use (“ROU”) asset and a lease 
liability. 

We lease land and buildings that are used in the operation of our Company-owned retail stores as well as in the operation of certain 
of our licensee-owned stores, and we lease land and buildings at various locations throughout the continental United States for 
warehousing and distribution hubs used in our retail and logistical services segments. We also lease tractors and trailers used in our 
logistical  services  segment,  and  local  delivery  trucks  used  in our  retail segment.  We  determine  if  a  contract  contains  a  lease  at 
inception based on our right to control the use of an identified asset and our right to obtain substantially all of the economic benefits 
from the use of that identified asset. Our real estate lease terms range from one to 15 years and generally have renewal options of 
between five and 15 years. We assess these options to determine if we are reasonably certain of exercising these options based on 
all relevant economic and financial factors. Any options that meet this criteria are included in the lease term at lease commencement. 

Most of our leases do not have an interest rate implicit in the lease. As a result, for purposes of measuring our ROU asset and lease 
liability, we determine our incremental borrowing rate by applying a spread above the U.S. Treasury borrowing rates. In the case 
an interest rate is implicit in a lease we will use that rate as the discount rate for that lease. Some of our leases contain variable rent 
payments based on a Consumer Price Index or percentage of sales. Due to the variable nature of these costs, they are not included 
in the measurement of the ROU asset and lease liability. 

We adopted the standard utilizing the transition election to not restate comparative periods for the impact of adopting the standard 
and recognizing the cumulative impact of adoption in the opening balance of retained earnings. We elected the package of transition 
expedients available for expired or existing contracts, which allowed the carry-forward of historical assessments of (1) whether 

27 

 
 
  
  
  
  
  
  
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

contracts are or contain leases, (2) lease classification and (3) initial direct costs. In addition, we have elected the practical expedient 
to not separate lease and non-lease components when determining the ROU asset and lease liability and have elected the practical 
expedient  related  to  land  easements,  allowing  us  to  carry  forward  our  accounting  treatment  for  land  easements  on  existing 
agreements. We have also elected the hindsight practical expedient to determine the lease term for existing leases. In our application 
of hindsight, we evaluated the performance of the leased stores and the associated markets in relation to our  overall real estate 
strategies, which resulted in the determination that most renewal options would not be reasonably certain in determining the expected 
lease term. We have made an accounting policy election to not recognize ROU assets and lease liabilities on the balance sheet for 
those leases with initial terms of one year or less and instead such lease obligations will be expensed on a straight-line basis over 
the lease term. 

Adoption of the standard resulted in the recording of additional net lease-related assets and lease-related liabilities of $146,585 and 
$151,672, respectively, as of December 1, 2019. The difference between the additional lease assets and lease liabilities, net of the 
$1,302 deferred tax impact, was $3,785 and was recorded as an adjustment to retained earnings. This adjustment to retained earnings 
primarily represents the impairment of right-of-use assets associated with certain underperforming retail locations. Our estimates of 
the fair value of the impaired ROU assets included estimates of discounted cash flows based upon current market rents and other 
inputs  which  we  consider  to  be  Level  3  inputs  as  specified  in  the  fair  value  hierarchy  in  ASC  Topic  820,  Fair  Value 
Measurement and  Disclosure  (see  Note  4).  Our  adoption  of  this  standard  did  not  have  a  material  impact  on  our  consolidated 
statements  of  operations, comprehensive income or cash flows. 

Prior  to  fiscal  2020,  our  leases  have  been  accounted  for  and  reported  in  accordance  with  ASC  Topic  840,  Leases.  Total  lease 
payments over the non-cancellable term of a lease were recognized as rent expense on a straight-line basis over the lease term, with 
the excess of expense recognized over lease payments made carried as a deferred rent liability on the balance sheet. Any lease 
incentive payments received from lessors were recorded as a liability on the balance sheet and amortized as a reduction of rent 
expense over the term of the lease. 

See Note 15 for additional information regarding our leases. 

Other Intangible Assets 

Intangible assets acquired in a business combination and determined to have an indefinite useful life are not amortized but are tested 
for  impairment  annually  or  between  annual  tests  when  an  impairment  indicator  exists.  The  recoverability  of  indefinite-lived 
intangible assets is assessed by comparison of the carrying value of the asset to its estimated fair value. If we determine that the 
carrying value of the asset exceeds its estimated fair value, an impairment loss equal to the excess would be recorded. 

Definite-lived intangible assets are amortized over their respective estimated useful lives and reviewed for impairment whenever 
events or changes in circumstances indicate that their carrying amounts may not be recoverable. We estimate the useful lives of our 
intangible assets and ratably amortize the value over the estimated useful lives of those assets. If the estimates of the useful lives 
should change, we will amortize the remaining book value over the remaining useful lives or, if an asset is deemed to be impaired, 
a write-down of the value of the asset may be required at such time. 

Impairment of Long Lived Assets 

We periodically evaluate whether events or circumstances have occurred that indicate long-lived assets may not be recoverable or 
that the remaining useful life may warrant revision. When such events or circumstances are present, we assess the recoverability of 
long-lived assets by determining whether the carrying value will be recovered through the expected undiscounted future cash flows 
resulting from the use and eventual disposition of the asset. In the event the sum of the expected undiscounted future cash flows is 
less than the carrying value of the asset, an impairment loss equal to the excess of the asset’s carrying value over its fair value is 
recorded. Fair value is determined based on discounted cash flows or appraised values depending on the nature of the assets. The 
long-term nature of these assets requires the estimation of cash inflows and outflows several years into the future. 

When analyzing our real estate properties for potential impairment, we consider such qualitative factors as our experience in leasing 
and  selling  real  estate  properties  as  well  as  specific  site  and  local  market  characteristics.  Upon  the  closure  of  a  Bassett  Home 
Furnishings store, we generally write off all tenant improvements which are only suitable for use in such a store. ROU assets under 
operating leases are written down to their estimated fair value. Our estimates of the fair value of the impaired ROU assets included 
estimates of discounted cash flows based upon current market rents and other inputs which we consider to be Level 3 inputs as 
specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurement and Disclosure (see Note 4). 

28 

Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

Income Taxes 

We account for income taxes under the liability method which requires that we recognize deferred tax assets and liabilities for the 
future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities 
and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable 
income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets 
and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. See Note 13. 

We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained 
on  examination  by  the  taxing  authorities,  based  on  the  technical  merits  of  the  position.  Despite  our  belief  that  our  liability  for 
unrecognized tax benefits is adequate, it is often difficult to predict the final outcome or the timing of the resolution of any particular 
tax matters. We may adjust these liabilities as relevant circumstances evolve, such as guidance from the relevant tax authority or 
our tax advisors, or resolution of issues in the courts. These adjustments are recognized as a component of income tax expense in 
the period in which they are identified. 

We evaluate our deferred income tax assets to determine if valuation allowances are required or should be adjusted. A valuation 
allowance is established against our deferred tax assets based on consideration of all available evidence, both positive and negative, 
using a “more likely than not” standard. This assessment considers, among other matters, the nature, frequency and severity of 
recent losses, forecasts of future profitability, the duration of statutory carryforward or carryback periods, our experience with tax 
attributes expiring unused and tax planning alternatives. In making such judgments, significant weight is given to evidence that can 
be objectively verified. See Note 13. 

New Store Pre-Opening Costs 

Income from operations for fiscal 2020, 2019 and 2018 includes new store pre-opening costs of $0, $1,117 and $2,081, respectively. 
Such costs consist of expenses incurred at the new store location during the period prior to its opening and include, among other 
things, facility occupancy costs such as rent and utilities and local store personnel costs related to pre-opening activities including 
training. New store pre-opening costs do not include costs which are capitalized in accordance with our property and equipment 
capitalization policies, such as leasehold improvements and store fixtures and equipment. Such capitalized costs associated with 
new stores are depreciated commencing with the opening of the store. There are no pre-opening costs associated with stores acquired 
from licensees, as such locations were already in operation at the time of their acquisition. 

Shipping and Handling Costs 

Costs incurred to deliver wholesale merchandise to customers are recorded in selling, general and administrative expense and totaled 
$14,779,  $18,402,  and  $17,511  for  fiscal  2020,  2019  and  2018,  respectively.  Costs  incurred  to  deliver  retail  merchandise  to 
customers, including the cost of operating regional distribution warehouses, are also recorded in selling, general and administrative 
expense and totaled $19,024, $23,710, and $20,640 for fiscal 2020, 2019 and 2018, respectively. 

Advertising 

Costs incurred for producing and distributing advertising and advertising materials are expensed when incurred and are included in 
selling, general and administrative expenses. Advertising costs totaled $12,671, $20,674, and $20,922 in fiscal 2020, 2019, and 
2018, respectively. 

Insurance Reserves 

We have self-funded insurance programs in place to cover workers’ compensation and health insurance. These insurance programs 
are subject to various stop-loss limitations. We accrue estimated losses using historical loss experience. Although we believe that 
the insurance reserves are adequate, the reserve estimates are based on historical experience, which may not be indicative of current 
and  future  losses.  We  adjust  insurance  reserves,  as  needed,  in  the  event  that  future  loss  experience  differs  from  historical  loss 
patterns. 

Supplemental Cash Flow Information 

Refer to the supplemental lease disclosures in Note 15 for cash flow impacts of leasing transactions during fiscal 2020. Otherwise, 
there were no material non-cash investing or financing activities during fiscal 2020 or 2018. During the fourth quarter of fiscal 2019, 
we purchased certain fixed assets and inventory with a total purchase price of $2,225, of which $375 was paid for with the issuance 
of 24,590 shares if our common stock. 

29 

 
 
  
   
  
  
  
  
  
  
  
  
  
  
  
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

Recent Accounting Pronouncements  

Recently Adopted Pronouncements 

Effective as of the beginning of fiscal 2020, we have adopted Accounting Standards Update No. 2016-02, Leases (Topic 842). The 
guidance in ASU 2016-02 (as subsequently amended by ASU 2018-01, ASU 2018-10, ASU 2018-11 and ASU 2018-20) requires 
that a lessee recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-
use asset representing its right to use the underlying asset for the lease term. We have adopted this standard using the modified 
retrospective approach. Refer to the preceding discussion under “Leases” and to Note 15 for more information regarding our leases 
and the adoption of the new standard. 

Recent Pronouncements Not Yet Adopted 

In June 2016, the FASB issued Accounting Standards Update  No. 2016-13, Financial Instruments – Credit Losses (Topic 326): 
Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). The guidance in ASU 2016-13 replaces the incurred 
loss impairment methodology under current GAAP. The new impairment model requires immediate recognition of estimated credit 
losses expected to occur for most financial assets and certain other instruments. For available-for-sale debt securities with unrealized 
losses, the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. ASU 2016-13 is 
effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The guidance in 
ASU 2016-13 will become effective for us as of the beginning of our 2021 fiscal year. We are currently evaluating the impact that 
this guidance will have upon our financial position and results of operations, if any. 

In  August  2018,  the  FASB  issued  Accounting  Standards  Update  No.  2018-15,  Accounting  Standards  Update  No.  2018-15  – 
Intangibles  -  Goodwill  and  Other  - Internal-Use  Software  (Subtopic  350-40):  Customer's Accounting  for  Implementation  Costs 
Incurred in a Cloud Computing Arrangement That Is a Service Contract, to help entities evaluate the accounting for fees paid by a 
customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement 
includes a software license. The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred 
in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop 
or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the 
service  element  of  a  hosting  arrangement  that  is  a  service  contract  is  not  affected  by  the  amendments  in  ASU  2018-15.  The 
amendments in ASU 2018-15 will become effective for us as of the beginning of our 2021 fiscal year. Early adoption is permitted, 
including adoption in any interim period. We are currently evaluating the impact that this guidance will have upon our financial 
position and results of operations, if any. 

In  December  2019,  the  FASB  issued  Accounting  Standards  Update  No.  2019-12  –  Income  Taxes  (Topic  740)  Simplifying  the 
Accounting for Income Taxes, as part of its initiative to reduce complexity in the accounting standards. The amendments in ASU 
2019-12 eliminate certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income 
taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. ASU 2019-12 also clarifies 
and simplifies other aspects of the accounting for income taxes. The amendments in ASU 2019-12 will become effective for us as 
of the beginning of our 2022 fiscal year. Early adoption is permitted, including adoption in any interim period. We are currently 
evaluating the impact that this guidance will have upon our financial position and results of operations, if any. 

Reclassifications 

Certain prior year amounts in the consolidated financial statements have been reclassified to conform to the current year presentation 
with no effect on previously reported net income or Stockholders’ equity. 

30 

 
 
  
  
  
  
  
  
  
  
  
  
  
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

3.  Business Combinations 

Acquisition of Lane Venture 

On December 21, 2017, we purchased certain assets and assumed certain liabilities of Lane Venture from Heritage Home Group, 
LLC for $15,556 in cash. Lane Venture is a manufacturer and distributor of premium outdoor furniture, and is now being operated 
as a component of our wholesale segment. 

Under  the  acquisition  method  of  accounting,  the  fair  value  of  the  consideration  transferred  was  allocated  to  the  tangible  and 
intangible assets acquired and the liabilities assumed based on their estimated fair values as of the acquisition date with the remaining 
unallocated amount recorded as goodwill. 

The  allocation  of  the  fair  value  of  the  acquired  business  was  initially  based  on  a  preliminary  valuation.  Our  estimates  and 
assumptions were revised during 2018 as we obtained additional information for our estimates during the measurement period , 
which  we  consider  to  be  closed  as  of  November  24,  2018.  During  fiscal  2018,  we  recorded  measurement  period  adjustments 
resulting in a net increase to the opening value of various acquired assets and assumed liabilities with an offsetting reduction of 
recognized goodwill of $76. The final allocation of the $15,556 all-cash purchase price to the acquired assets and liabilities of the 
Lane Venture business, including measurement period adjustments, is as follows: 

Allocation of the fair value of consideration transferred: 
Identifiable assets acquired: 

Accounts receivable, net of reserve (Note 5) 
Inventory, net of reserve (Note 6) 
Prepaid expenses and other current assets 
Intangible assets 

Total identifiable assets acquired 

Liabilities assumed: 
Accounts payable 
Other accrued liabilities 

Total liabilities assumed 
Net identifiable assets acquired 
Goodwill 

Total net assets acquired 

 $

 $

1,507   
3,718   
37   
7,360   
12,622   

(357 )
(852 )
(1,209 )
11,413   
4,143   
15,556   

Goodwill was determined based on the residual difference between  the fair value of the consideration transferred and the value 
assigned to the tangible and intangible assets and liabilities recognized in connection with the acquisition and is deductible for tax 
purposes. Among the factors that contributed to a purchase price resulting in the recognition of goodwill are the expected synergies 
arising from combining the Company’s manufacturing and distribution capabilities with Lane Venture’s position in the outdoor 
furnishings market, a segment of the market not previously served by Bassett. 

A portion of the fair value of the consideration transferred has been assigned to identifiable intangible assets as follows: 

Description: 

Trade name 
Customer relationships 

Useful 
Life 

   In Years     Fair Value   

  Indefinite     $
9 

6,848  
512  

Total acquired intangible assets 

    $

7,360  

The  finite-lived  intangible  asset  is  being  amortized  on  a  straight-line  basis  over  its  estimated  useful  life.  The  indefinite-lived 
intangible asset and goodwill are not amortized but will be tested for impairment annually or between annual tests if an indicator of 
impairment exists. 

The fair values of consideration transferred and net assets acquired were determined using a combination of Level 2 and Level 3 
inputs as specified in the fair value hierarchy in ASC 820, Fair Value Measurements and Disclosures. See Note 4. 

31 

 
 
  
  
  
  
  
     
  
     
  
   
   
   
   
     
  
   
   
   
   
   
  
  
  
  
  
      
  
  
  
      
        
  
    
      
  
      
        
  
      
  
  
   
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

Acquisition costs related to the Lane Venture acquisition totaled $256 during the year ended November 24, 2018, and are included 
in selling, general and administrative expenses in the consolidated statements of operations. The acquisition costs are primarily 
related to legal, accounting and valuation services. 

The pro forma impact of the acquisition and the results of operations attributable to Lane Venture since the acquisition have not 
been presented because they are not material to our consolidated results of operations for the three fiscal years ended November 24, 
2018. 

4.  Financial Instruments, Investments and Fair Value Measurements 

Financial Instruments 

Our financial instruments include cash and cash equivalents, short-term investments in certificates of deposit, accounts receivable, 
cost method investments, accounts payable and long-term debt. Because of their short maturities, the carrying amounts of cash and 
cash equivalents, short-term investments in certificates of deposit, accounts receivable, and accounts payable approximate fair value. 

Investments  

Our  short-term  investments  of  $17,715  and  $17,436  at  November 28,  2020  and  November  30,  2019,  respectively,  consisted  of 
certificates of deposit (CDs) with original terms of six to twelve months, bearing interest at rates ranging from 0.05% to 2.0%. At 
November 28, 2020, the weighted average remaining time to maturity of the CDs was approximately four months and the weighted 
average yield of the CDs was approximately 0.21%. Each CD is placed with a federally insured financial institution and all deposits 
are within Federal deposit insurance limits. As the CDs mature, we expect to reinvest them in CDs of similar maturities of up to one 
year. Due to the nature of these investments and their relatively short maturities, the carrying amount of the short-term investments 
at November 28, 2020 and November 30, 2019 approximates their fair value. 

Fair Value Measurement  

The  Company  accounts  for  items  measured  at  fair  value  in  accordance  with  ASC  Topic  820,  Fair  Value  Measurements  and 
Disclosures. ASC 820’s valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily 
obtainable  data  from  independent  sources,  while  unobservable  inputs  reflect  our  market  assumptions.  ASC  820  classifies  these 
inputs into the following hierarchy: 

Level 1 Inputs– Quoted prices for identical instruments in active markets. 

Level 2 Inputs– Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets 
that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. 

Level 3 Inputs– Instruments with primarily unobservable value drivers. 

We believe that the carrying amounts of our current assets and current liabilities approximate fair value due to the short-term nature 
of these items. Our primary non-recurring fair value estimates typically involve business acquisitions (Note 3) which involve  a 
combination  of  Level  2  and  Level  3  inputs,  goodwill  impairment  testing  (Note  8),  which  involves  Level  3  inputs,  and  asset 
impairments (Note 14) which utilize Level 3 inputs. 

32 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

5.  Accounts Receivable 

Accounts receivable consists of the following: 

Gross accounts receivable 
Allowance for doubtful accounts 
Net accounts receivable 

Activity in the allowance for doubtful accounts was as follows: 

Balance, beginning of the year 
Additions charged to expense 
Reductions to allowance, net 
Balance, end of the year 

November 28, 
2020 

November 30, 
2019 

  $ 

  $ 

  $ 

  $ 

23,551     $ 
(1,211 )     
22,340     $ 

22,193   
(815 ) 
21,378   

2020 

2019 

815     $ 
492       
(96 )     
1,211     $ 

754   
61   
-   
815   

We believe that the carrying value of our net accounts receivable approximates fair value. The inputs into these fair value estimates 
reflect our market assumptions and are not observable. Consequently, the inputs are considered to be Level 3 as specified in the fair 
value hierarchy in ASC Topic 820, Fair Value Measurements and Disclosures. See Note 4. 

6. 

Inventories 

Inventories consist of the following: 

Wholesale finished goods 
Work in process 
Raw materials and supplies 
Retail merchandise 
Total inventories on first-in, first-out method 
LIFO adjustment 
Reserve for excess and obsolete inventory 

November 28, 
2020 

November 30, 
2019 

  $ 

  $ 

25,001     $ 
516       
14,836       
27,946       
68,299       
(8,891 )     
(4,522 )     
54,886     $ 

27,792  
733  
17,293  
31,534  
77,352  
(8,688) 
(2,362) 
66,302  

We source a significant amount of our wholesale product from other countries. During 2020, 2019 and 2018, purchases from our 
two largest vendors located in Vietnam and China were $15,378, $15,221 and $24,073 respectively. 

We estimate an inventory reserve for excess quantities and obsolete items based on specific identification and historical write-offs, 
taking into account future demand, market conditions and the respective valuations at LIFO. The need for these reserves is primarily 
driven by the normal product life cycle. As products mature and  sales volumes decline, we rationalize our product offerings to 
respond to consumer tastes and keep our product lines fresh. If actual demand or market conditions in the future are less favorable 
than those estimated, additional inventory write-downs may be required. In determining reserves, we calculate separate reserves on 
our wholesale and retail inventories. Our wholesale inventories tend to carry the majority of the reserves for excess quantities and 
obsolete  inventory  due  to  the  nature  of  our  distribution  model.  These  wholesale  reserves  primarily  represent  design  and  style 
obsolescence. Typically, product is not shipped to our retail warehouses until a consumer has ordered and paid a deposit for the 
product.  We  do  not  typically  hold  retail  inventory  for  stock  purposes.  Consequently,  floor  sample  inventory  and  inventory  for 
delivery to customers account for the majority of our inventory at retail. Retail reserves are based on accessory and clearance floor 
sample inventory in our stores and any inventory that is not associated with a specific customer order in our retail warehouses. 

33 

 
 
  
  
  
  
    
  
    
  
  
  
    
  
  
       
         
  
    
    
  
  
  
  
  
  
  
    
  
    
    
    
    
    
    
  
  
  
   
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

Activity in the reserves for excess quantities and obsolete inventory by segment are as follows: 

Balance at November 24, 2018 
Additions charged to expense 
Write-offs 
Balance at November 30, 2019 
Additions charged to expense 
Write-offs 
Balance at November 28, 2020 

Wholesale 
Segment 

Retail 
Segment 

Total 

  $ 

  $ 

1,500    $ 
1,881      
(1,327)    
2,054      
3,745      
(2,378)    
3,421    $ 

266    $ 
373      
(331)     
308      
1,177      
(384)     
1,101    $ 

1,766  
2,254  
(1,658) 
2,362  
4,922  
(2,762) 
4,522  

7.  Property and Equipment  

Property and equipment consist of the following: 

Land 
Buildings and leasehold improvements 
Machinery and equipment 

Property and equipment at cost 

Less accumulated depreciation 
Property and equipment, net 

November 28, 
2020 

November 30, 
2019 

  $ 

  $ 

9,478     $ 
114,961       
118,112       
242,551       
(151,634 )     
90,917     $ 

9,478  
126,085  
115,131  
250,694  
(148,970) 
101,724  

The net book value of our property and equipment by reportable segment is a follows: 

Wholesale 
Retail - Company-owned stores 
Logistical Services 

Total property and equipment, net 

November 28, 
2020 

November 30, 
2019 

  $ 

  $ 

26,999     $ 
44,820       
19,098       
90,917     $ 

28,993  
55,625  
17,106  
101,724  

At November 30, 2019 we owned one retail store property located in Gulfport, Mississippi which was under contract to be sold. 
The net book value of the property of $1,569 at November 30, 2019 was classified as held for sale and included in other current 
assets in the accompanying consolidated balance sheets at November 30, 2019. The sale of the property was completed during the 
first quarter of fiscal 2020 for net proceeds of $1,639. 

Depreciation expense associated with the property and equipment shown above was included in income from operations in our 
consolidated statements of operations as follows: 

Cost of goods sold (wholesale segment) 
Selling, general and adminstrative expenses: 

2020 

2019 

2018 

  $ 

1,552    $ 

1,402    $ 

1,264  

Wholesale segment 
Retail segment 
Logistical services segment 
Total included in selling, general and adminstrative expenses 
Total depreciation expense included in income from operations    $ 

1,516      
6,578      
3,454      
11,548      
13,100    $ 

1,672      
7,479      
3,697      
12,848      
14,250    $ 

1,666  
7,060  
3,747  
12,473  
13,737  

34 

 
 
  
  
  
    
    
  
    
    
    
    
    
  
  
  
  
  
  
    
  
    
    
    
    
  
  
  
  
    
  
    
    
  
  
  
  
  
    
    
  
      
        
        
  
    
    
    
    
  
  
  
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

8.  Goodwill and Other Intangible Assets 

Goodwill and other intangible assets consisted of the following: 

Intangibles subject to amortization: 

Customer relationships 
Technology - customized applications 

Total intangible assets subject to amortization 

Intangibles not subject to amortization: 

Trade names 
Goodwill 

Gross Carrying 
Amount  

November 28, 2020 
Accumulated 
Amortization       

Intangible 
Assets, Net  

  $ 

  $ 

3,550    $ 
834      

(1,346)   $ 
(695)     

4,384    $ 

(2,041)     

2,204  
139  

2,343  

9,338  
12,146  

Total goodwill and other intangible assets 

    $ 

23,827  

Intangibles subject to amortization: 

Customer relationships 
Technology - customized applications 

Total intangible assets subject to amortization 

Intangibles not subject to amortization: 

Trade names 
Goodwill 

Gross Carrying 
Amount  

November 30, 2019 
Accumulated 
Amortization       

Intangible 
Assets, Net  

  $ 

  $ 

3,550    $ 
834      

(1,088)   $ 
(575)     

4,384    $ 

(1,663)     

2,462  
259  

2,721  

9,338  
14,117  

Total goodwill and other intangible assets 

    $ 

26,176  

Due to the impact of the COVID-19 pandemic, we performed an interim impairment assessment of our remaining goodwill as of 
May 30, 2020, then end of our second fiscal quarter. As a result of this test, we concluded that the carrying value of our wood 
reporting unit exceeded its fair value by an amount in excess of the goodwill previously allocated to the reporting unit. Therefore, 
we recognized a goodwill impairment charge of $1,971 for year ended November 28, 2020. Our annual goodwill impairment test, 
conducted as of the beginning of our fourth fiscal quarter, resulted in no additional impairment. 

The determination of the fair value of our reporting units is based on a combination of a market approach, that considers benchmark 
company market multiples, and an income approach, that utilizes discounted cash flows for each reporting unit and other Level 3 
inputs as specified in the fair value hierarchy in ASC Topic 820, Fair Value Measurements and Disclosure (see Note 4). Under the 
income approach, we determine fair value based on the present value of the most recent cash flow projections for each reporting 
unit as of the date of the analysis and calculate a terminal value utilizing a terminal growth rate. The significant assumptions under 
this approach include, among others: income projections, which are dependent on future sales, new product introductions, customer 
behavior, competitor pricing, operating expenses, the discount rate, and the terminal growth rate. The cash flows used to determine 
fair value are dependent on a number of significant management assumptions such as our expectations of future performance and 
the  expected  future  economic  environment,  which  are  partly based  upon  our  historical  experience.  Our  estimates  are  subject  to 
change given the inherent uncertainty in predicting future results. Additionally, the discount rate and the terminal growth rate are 
based on our judgment of the rates that would be utilized by a hypothetical market participant. As part of the goodwill impairment 
testing, we also consider our market capitalization in assessing the reasonableness of the combined fair values estimated for our 
reporting units. 

35 

 
 
  
  
  
  
  
  
  
    
  
      
        
        
  
    
  
      
        
        
  
  
      
        
        
  
      
        
        
  
      
        
      
      
        
      
  
      
        
        
  
      
        
  
  
  
  
  
  
    
  
      
        
        
  
    
  
      
        
        
  
  
      
        
        
  
      
        
        
  
      
        
      
      
        
      
  
      
        
        
  
      
        
  
  
   
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

Changes in the carrying amounts of goodwill by reportable segment were as follows: 

   Wholesale      

Retail  

     Logistics       

Total  

Balance as of November 24, 2018 

  $ 

Goodwill impairment 

9,188    $ 
-      

1,926    $ 
(1,926)     

4,929    $ 
-      

16,043  
(1,926) 

Balance as of November 30, 2019 

Goodwill impairment 

9,188      
(1,971)     

-      
-      

4,929      
-      

14,117  
(1,971) 

Balance as of November 28, 2020 

  $ 

7,217    $ 

-    $ 

4,929    $ 

12,146  

Accumulated impairment losses at November 28, 2020 and November 30, 2019 were $3,897 and $1,926, respectively. There were 
no accumulated impairment losses on goodwill as of November 24, 2018. 

The weighted average useful lives of our finite-lived intangible assets and remaining amortization periods as of November 28, 2020 
are as follows: 

Remaining 
Amortization 
Period in 
Years  

Useful Life 
in Years  

Customer relationships 
Technology - customized applications 

14       
7       

9   
1   

Amortization expense associated with intangible assets during fiscal 2020, 2019 and 2018 was $379, $379 and $374, respectively 
and is included in selling, general and administrative expense in our consolidated statement of operations. All expense arising from 
the amortization of intangible assets is associated with our logistical services segment except for $57, $57 and $51 in fiscal 2020, 
2019  and  2018,  respectively,  associated  with  our  wholesale  segment  arising  from  Lane  Venture  (Note  3).  Estimated  future 
amortization expense for intangible assets that exist at November 28, 2020 is as follows: 

Fiscal 2021 
Fiscal 2022 
Fiscal 2023 
Fiscal 2024 
Fiscal 2025 
Thereafter 

Total 

 $

378  
279  
259  
259  
259  
909  

 $

2,343  

9.  Bank Credit Facility 

Bank Credit Facility  

Our bank credit facility, which was amended effective June 15, 2020, provided for a line of credit of up to $50,000 through December 
31, 2020, after which date the maximum availability was reduced to $25,000. At November 28, 2020, we had $2,881 outstanding 
under standby letters of credit against our line, leaving availability under our credit line of $47,119. In addition, at November 28, 
2020 we have outstanding standby letters of credit with another bank totaling $325. The line bears interest at the rate of LIBOR 
plus 1.9%, with a fee of 0.25% charged for the unused portion of the line, and is secured by a general lien on our accounts receivable 
and  inventory.  Under  the  terms  of  the  June  15,  2020  amendment,  all  covenants  based  on  financial  ratios  were  waived  for  the 
remainder of fiscal 2020. We currently expect to be in compliance with these covenants, which include a minimum fixed charge 
coverage ratio and a maximum debt to tangible net worth ratio, through the end of fiscal 2021. The credit facility matures on January 
31, 2022. 

Total interest paid, including the interest component of financing lease payments, during fiscal 2020, 2019 and 2018 was $49, $7 
and $166, respectively. 

36 

 
 
  
  
  
  
      
        
        
        
  
    
  
      
        
        
        
  
    
    
  
      
        
        
        
  
  
  
  
  
  
    
  
  
      
        
  
    
    
  
  
   
   
   
   
   
  
     
  
  
  
  
  
  
  
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

10.  Post-Employment Benefit Obligations 

Management Savings Plan 

On May 1, 2017, our Board of Directors, upon the recommendation of the Organization, Compensation and Nominating Committee 
(the “Committee”), adopted the Bassett Furniture Industries, Incorporated Management Savings Plan (the “Plan”). The Plan is an 
unfunded, nonqualified deferred compensation plan maintained for the benefit of certain highly compensated or management level 
employees. 

The Plan is an account-based plan under which (i) participants may defer voluntarily the payment of current compensation to future 
years (“participant deferrals”) and (ii) the Company may make annual awards to participants payable in future years (“Company 
contributions”). The Plan permits each participant to defer up to 75% of base salary and up to 100% of any incentive compensation 
or other bonus, which amounts would be credited to a deferral account established for the participant. Such deferrals will be fully 
vested at the time of the deferral. Participant deferrals will be indexed to one or more deemed investment alternatives chosen by the 
participant from a range of alternatives made available under the Plan. Each participant’s account will be adjusted to reflect gains 
and losses based on the performance of the selected investment alternatives. A participant may receive distributions from the Plan: 
(1) upon separation from service, in either a lump sum or annual installment payments over up to a 15 year period, as elected by the 
participant,  (2)  upon  death  or  disability,  in  a  lump  sum,  or  (3)  on  a  date  or  dates  specified  by  the  participant  (“scheduled 
distributions”) with such scheduled payments made in either a lump sum or substantially equal annual installments over a period of 
up to five years, as elected by the participant. Participant contributions commenced during the third quarter of fiscal 2017. Company 
contributions will vest in full (1) on the third anniversary of the date such amounts are credited to the participant’s account, (2) the 
date that the participant reaches age 63 or (3) upon death or disability. Company contributions are subject to the same rules described 
above regarding the crediting of gains or losses from deemed investments and the timing of distributions. Expense associated with 
deferred  compensation  under  the  Plan  was  $264,  $196  and  $102  for  fiscal  2020,  2019  and  2018,  respectively.  Our  liability  for 
Company contributions and participant deferrals at November 28, 2020 and November 30, 2019 was $1,250 and $894, respectively, 
and is included in post-employment benefit obligations in our consolidated balance sheets. 

On  May  2,  2017,  we  made  Long  Term  Cash  Awards  (“LTC  Awards”)  totaling  $2,000  under  the  Plan  to  certain  management 
employees in the amount of $400 each. The LTC Awards vest in full on the first anniversary of the date of the award if the participant 
has reached age 63 by that time, or, if later, on the date the participant reaches age 63, provided in either instance that the participant 
is still employed by the Company at that time. If not previously vested, the awards will also vest immediately upon the death or 
disability  of  the  participant  prior  to  the  participant’s  separation  from  service.  The  awards  will  be  payable  in  10  equal  annual 
installments following the participant’s death, disability or separation from service. We are accounting for the LTC Awards as a 
defined benefit pension plan. 

During fiscal 2020, 2019 and 2018, we invested $609, $627 and $900 in life insurance policies covering all participants in the Plan. 
At November 28, 2020, these policies have a net death benefit of $14,998 for which the Company is the sole beneficiary. These 
policies are intended to provide a source of funds to meet the obligations arising from the deferred compensation and LTC Awards 
under the Plan, and serve as an economic hedge of the financial impact of changes in the liabilities. They are held in an irrevocable 
trust but are subject to claims of creditors in the event of the Company’s insolvency. 

Supplemental Retirement Income Plan 

We have an unfunded Supplemental Retirement Income Plan (the “Supplemental Plan”) that covers one current and certain former 
executives.  Upon  retirement,  the  Supplemental  Plan  provides  for  lifetime monthly  payments  in  an  amount  equal  to  65%  of  the 
participant’s final average compensation as defined in the Supplemental Plan, which is reduced by certain social security benefits 
to be received and other benefits provided by us. The Supplemental Plan also provides a death benefit that is calculated as (a) prior 
to retirement death, which pays the beneficiary 50% of final average annual compensation for a period of 120 months, or (b) post-
retirement  death,  which  pays  the  beneficiary  200%  of  final  average  compensation  in  a  single  payment.  We  own  life  insurance 
policies on these executives with a current net death benefit of $2,070 at November 28, 2020 and we expect to substantially fund 
this death benefit through the proceeds received upon the death of the executive. Funding for the remaining cash flows is expected 
to be provided through operations. There are no benefits payable as a result of a termination of employment for any reason other 
than death or retirement, other than a change of control provision which provides for the immediate vesting and payment of the 
retirement benefit under the Supplemental Plan in the event of an employment termination resulting from a change of control. 

37 

 
 
  
  
  
  
  
  
  
  
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

Aggregated summarized information for the Supplemental Plan and the LTC Awards, measured as of the end of each year presented, 
is as follows: 

Change in Benefit Obligation: 
Projected benefit obligation at beginning of year 

Service cost 
Interest cost 
Actuarial (gains) and losses 
Benefits paid 

Projected benefit obligation at end of year 

Accumulated Benefit Obligation 

Discount rate used to value the ending benefit obligations: 

Amounts recognized in the consolidated balance sheet: 

Current liabilities 
Noncurrent liabilities 

Total amounts recognized 

Amounts recognized in accumulated other comprehensive income: 
Prior service cost 
Actuarial loss 
Net amount recognized 

Total recognized in net periodic benefit cost and accumulated other comprehensive 

income: 

2020 

2019 

10,090     $ 
172       
268       
345       
(804)      
10,071     $ 

11,652  
190  
441  
(1,172) 
(1,021) 
10,090  

10,034     $ 

9,998  

2.00%     

2.75% 

613     $ 
9,458       
10,071     $ 

480     $ 
1,394       
1,874     $ 

655  
9,435  
10,090  

606  
1,055  
1,661  

785     $ 

(541) 

  $ 

  $ 

  $ 

  $ 

  $ 

  $ 

  $ 

  $ 

Components of Net Periodic Pension Cost: 
Service cost 
Interest cost 
Amortization of transition obligation 
Amortization of prior service cost 
Amortization of other loss 

2020 

2019 

2018 

  $ 

172     $ 
268       
-       
126       
8       

190     $ 
441       
-       
126       
183       

196  
418  
42  
126  
262  

Net periodic pension cost 

  $ 

574     $ 

940     $ 

1,044  

Assumptions used to determine net periodic pension cost: 
Discount rate 
Increase in future compensation levels 

2.75%     
3.00%     

4.00%     
3.00%     

3.50% 
3.00% 

Estimated Future Benefit Payments (with mortality): 

Fiscal 2021 
Fiscal 2022 
Fiscal 2023 
Fiscal 2024 
Fiscal 2025 
Fiscal 2026 through 2030 

613         
817         
778         
737         
775         
3,499         

38 

 
 
  
  
  
     
  
      
         
  
    
    
    
    
  
      
         
  
  
      
         
  
    
  
      
         
  
      
         
  
    
      
         
  
    
  
      
         
  
  
  
  
     
     
  
  
      
         
         
  
      
         
         
  
    
    
    
    
  
      
         
         
  
  
      
         
         
  
  
      
         
         
  
      
         
         
  
    
    
  
      
         
         
  
  
      
         
         
  
      
         
         
  
      
       
  
      
       
  
      
       
  
      
       
  
      
       
  
      
       
  
   
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

Of the $1,874 recognized in accumulated other comprehensive income at November 28, 2020, amounts expected to be recognized 
as components of net periodic pension cost during fiscal 2021 are as follows: 

Prior service cost 
Other loss 

 $

Total expected to be amortized to net periodic pension cost in 2021 

 $

126  
59  

185  

The components of net periodic pension cost other than the service cost component are included in other loss, net in our 
consolidated statements of operations. 

Deferred Compensation Plan 

We have an unfunded Deferred Compensation Plan that covers one current and certain former executives and provides for voluntary 
deferral of compensation. This plan has been frozen with no additional participants or benefits permitted. We recognized expense 
of $176, $204, and $216 in fiscal 2020, 2019, and 2018, respectively, associated with the plan. Our liability under this plan was 
$1,676 and $1,767 as of November 28, 2020 and November 30, 2019, respectively. The non-current portion of this obligation is 
included in post-employment benefit obligations in our consolidated balance sheets, with the current portion included in accrued 
compensation and benefits. 

Defined Contribution Plan 

We have a qualified defined contribution plan (Employee Savings/Retirement Plan) that covers substantially all employees who 
elect to participate and have fulfilled the necessary service requirements. Employee contributions to the Plan are matched at the rate 
of 25% of up to 8% of gross pay, regardless of years of service. During fiscal 2020, the Company’s matching contribution was 
temporarily suspended for approximately six months as part of the cash conservation measures put into place in response to the 
impact of the COVID-19 pandemic, but was resumed during the fourth quarter. Expense for employer matching contributions was 
$611, $1,157 and $1,128 during fiscal 2020, 2019 and 2018, respectively. 

11.  Accumulated Other Comprehensive Loss 

The activity in accumulated other comprehensive loss for the fiscal years ended November 28, 2020 and November 30, 2019, which 
is comprised solely of post-retirement benefit costs related to our SERP and LTC Awards, is as follows: 

Balance at November 24, 2018 
Actuarial gains 
Net pension amortization 
reclassified from accumulated other comprehensive loss 
Tax effects 
Balance at November 30, 2019 
Actuarial losses 
Net pension amortization 
reclassified from accumulated other comprehensive loss 
Tax effects 
Balance at November 28, 2020 

 $

 $

(2,338 )
1,172   

308   
(378 )
(1,236 )
(345 )

133   
54   
(1,394 )

39 

 
 
  
   
  
     
  
  
  
  
  
  
  
  
  
  
   
     
  
   
   
   
   
     
  
   
   
  
  
  
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

12.  Capital Stock and Stock Compensation 

We account for our stock-based employee and director compensation plans in accordance with ASC 718, Compensation – Stock 
Compensation.  ASC  718  requires  recognition  of  the  cost  of  employee  services  received  in  exchange  for  an  award  of  equity 
instruments in the financial statements over the period the employee is required to perform the services in exchange for the award 
(presumptively the vesting period) which we recognize on a straight-line basis. Compensation expense related to restricted stock 
and stock options included in selling, general and administrative expenses in our consolidated statements of operations for fiscal 
2020, 2019 and 2018 was as follows: 

Stock based compensation expense   $ 

420  $ 

958  $

1,133 

2020 

2019 

2018 

Incentive Stock Compensation Plans 

On April 14, 2010, our shareholders approved the Bassett Furniture Industries, Incorporated 2010 Stock Incentive Plan which was 
amended  and  restated  effective  January  13,  2016  (the  “2010  Plan”).  All  non-employee  directors,  key  employees  and  outside 
consultants for the Company were eligible to receive incentive awards under the 2010 Plan. The 2010 Plan expired in April of 2020 
and no additional grants can be awarded under the plan. 

The fair value of each option award was estimated on the date of grant using the Black-Scholes option pricing model. The risk free 
rate is based on the U.S. Treasury rate for the expected life at the time of grant, volatility is based on the average long-term implied 
volatilities of peer companies, the expected life is based on the estimated average of the life of options using the simplified method. 
Forfeitures are recognized as they occur. We utilized the simplified method to determine the expected life of our options due to 
insufficient exercise activity during recent years as a basis from which to estimate future exercise patterns. 

Stock Options 

There were no new grants of options made in 2020, 2019 or 2018. 

Changes in the outstanding options under our plans during the year ended November 28, 2020 were as follows: 

Outstanding at November 30, 2019 

Granted 
Exercised 
Forfeited/Expired 

Outstanding at November 28, 2020 
Exercisable at November 28, 2020 

Number of 
Shares 

Weighted 
Average 
Exercise Price 
Per Share 

5,250    $ 
-      
-      
-      
5,250      
5,250    $ 

8.02  
-  
-  
-  
8.02  
8.02  

All remaining options outstanding at November 28, 2020 are exercisable at $8.02 per share with a remaining contractual life of 0.6 
years and an aggregate intrinsic value of $45. There were no non-vested options outstanding under our plans during the year ended 
November 28, 2020. 

Additional information regarding activity in our stock options during fiscal 2020, 2019 and 2018 is as follows: 

2020 

2019 

2018 

Total intrinsic value of options exercised 
Total cash received from the exercise of options 
Excess tax benefits recognized in income tax 

  $ 

expense upon the exercise of options 

-     $ 
-       

-       

34    $ 
25      

6      

75  
27  

16  

40 

 
 
  
  
  
 
  
  
 
  
     
      
      
 
  
  
  
  
  
  
  
  
  
    
  
  
      
        
  
    
    
    
    
    
    
  
  
  
  
  
    
    
  
  
      
        
        
  
    
    
   
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

Restricted Shares 

Changes in the outstanding non-vested restricted shares during the year ended November 28, 2020 were as follows: 

Weighted 
Average 
Grant 
Date Fair 
Value Per 
Share 

Number of 
Shares 

Non-vested restricted shares outstanding at November 30, 2019     

Granted 
Vested 
Forfeited 

Non-vested restricted shares outstanding at November 28, 2020     

90,153    $ 
-      
(48,653)     
(7,000)     
34,500    $ 

29.06   
-   
27.30   
19.03   
33.58   

During fiscal 2020, 48,653 restricted shares were vested and released, of which 39,000 shares had been granted to employees and 
9,653  shares  had  been  granted  to  directors.  During  fiscal  2020  and  2018,  14,010  shares  and  19,810  shares,  respectively,  were 
withheld to cover withholding taxes of $228 and $674, respectively, arising from the vesting of restricted shares. During fiscal 2020, 
2019 and 2018, excess tax (expense) benefits of $(114), $0 and $207, respectively, were recognized within income tax expense 
upon the release of vested shares. 

Additional information regarding our outstanding non-vested restricted shares at November 28, 2020 is as follows: 

Grant 
Date 

Restricted 
Shares 

   Outsta5nding 

Share Value 
at Grant Date 
Per Share 

     Remaining 
     Restriction 

Period 
(Years) 

January 11, 2018     
October 9, 2019     

31,000     $ 
3,500       
34,500          

35.75       
14.37       

0.1   
1.9   

Unrecognized compensation cost related to these non-vested restricted shares at November 28, 2020 is $41, all of which is expected 
to be recognized within the next two fiscal years. 

Employee Stock Purchase Plan 

In  March  of  2017  we  adopted  and  implemented  the  2017  Employee  Stock  Purchase  Plan  (“2017  ESPP”)  that  allows  eligible 
employees to purchase a limited number of shares of our stock at 85% of market value. Under the 2017 ESPP we sold 50,217, 
23,460 and 14,967 shares to employees during fiscal 2020, 2019 and 2018, respectively, which resulted in an immaterial amount of 
compensation expense. There are 155,081 shares remaining available for sale under the 2017 ESPP at November 28, 2020. 

41 

 
 
  
  
  
  
    
  
  
      
        
  
    
    
    
  
  
  
    
  
      
  
  
  
  
    
  
  
    
    
  
    
    
  
  
      
         
        
  
  
    
        
  
  
  
  
  
  
  
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

13.   Income Taxes  

The components of the income tax provision are as follows: 

Current: 

Federal 
State 

Deferred: 
Federal 
State 

Total 

2020 

2019 

2018 

$ 

(8,486 ) $ 
155     

2,150   $ 
892     

(1,137 ) 
462   

2,457     
(491 )   
(6,365 ) $ 

(2,191 )   
(663 )   
188   $ 

4,747   
(84 ) 
3,988   

$ 

On March 27, 2020 the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. A major 
provision of the CARES Act allows net operating losses from the 2018, 2019 and 2020 tax years to be carried back up to five years. 
As a result, for the year ended November 28, 2020 we were able to recognize tax benefits substantially in excess of the current 
federal statutory rate of 21% due to the effects of carrying back our current net operating loss to tax years in which the federal 
statutory rate was 35%. 

On December 22, 2017, The Tax Cuts and Jobs Act (the “Act”) was signed into law. The Act reduced the federal statutory corporate 
income tax rate from 35% to 21% effective January 1, 2018 for all corporate taxpayers, while most other provisions of the Act 
became effective for fiscal years beginning on or after January 1, 2018. Therefore, we computed our income tax expense for fiscal 
2018 using a blended federal statutory rate of 22.2%. The 21% federal statutory rate, as well as certain other provisions of the Act 
including the elimination of the domestic manufacturing deduction and new limitations on certain business deductions, applies to 
our 2019 fiscal year and thereafter. The federal rate reduction had a significant impact on our provision for income taxes for fiscal 
2018 due to a discrete charge of $1,331 arising from the re-measurement of our deferred tax assets. Our accounting for the income 
tax effects of the Act was complete as of November 24, 2018. 

A reconciliation of the statutory federal income tax rate and the effective income tax rate, as a percentage of income before income 
taxes, is as follows: 

Statutory federal income tax rate 
CARES Act benefit 
Revaluation of deferred tax assets resulting 

from new enacted rates 

State income tax, net of federal benefit 
Impairment of non-deductible goodwill 
Excess tax benefit from stock-based 

compensation 

Other 
Effective income tax rate 

2020 

2019 

2018 

21.0%   
21.1     

-     
1.7     
(2.5)    

(0.6)    
(2.8)    
37.9%   

21.0%   
-  

-  
(14.0) 
(23.2) 

0.3  
5.1  
(10.8)%  

22.2 %
-   

10.9   
4.6   
-   

(1.5 ) 
(3.5 ) 
32.7 %

Excess tax (expense) benefits in the amount of $(114), $22 and $223 were recognized as a component of income tax expense during 
fiscal 2020, 2019 and 2018, respectively, resulting from the exercise of stock options and the release of restricted shares. The fiscal 
2020 and 2019 adjustments for impairment of non-deductible goodwill reflect the fact that there was no tax basis related to the 
impaired goodwill. 

42 

 
 
  
  
  
  
  
  
     
       
       
  
  
  
     
       
       
  
     
       
       
  
  
  
  
  
  
  
  
 
    
  
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

The income tax effects of temporary differences and carryforwards, which give rise to significant portions of the deferred income 
tax assets and deferred income tax liabilities, are as follows: 

November 28, 
2020 

November 30, 
2019 

Deferred income tax assets: 
Trade accounts receivable 
Inventories 
Notes receivable 
Post employment benefit obligations 
State net operating loss carryforwards 
Unrealized loss from affiliates 
Leases 
Other 
Gross deferred income tax assets 

Valuation allowance 

Total deferred income tax assets 

Deferred income tax liabilities: 
Property and equipment 
Intangible assets 
Prepaid expenses and other 

Total deferred income tax liabilities 

  $ 

303    $ 
3,086      
44      
3,260      
1,321      
-      
5,850      
1,856      
15,720      
-      
15,720      

8,746      
1,404      
983      

11,133      

Net deferred income tax assets 

  $ 

4,587    $ 

207  
2,487  
44  
3,241  
193  
81  
3,753  
1,828  
11,834  
-  
11,834  

4,288  
1,114  
688  

6,090  

5,744  

We have state net operating loss carryforwards available to offset future taxable state income of $26,407, which expire in varying 
amounts between 2022 and 2027. Realization is dependent on generating sufficient taxable income prior to expiration of the loss 
carryforwards. 

Income taxes paid, net of refunds received, during fiscal 2020, 2019 and 2018 were $539, $1,228, and $1,431, respectively. 

We  regularly  evaluate,  assess  and  adjust  our  accrued  liabilities  for  unrecognized  tax  benefits  in  light  of  changing  facts  and 
circumstances, which could cause the effective tax rate to fluctuate from period to period. Our accrued liabilities for uncertain tax 
benefits at November 28, 2020 and November 30, 2019 were not material. 

Significant  judgment  is  required  in  evaluating  the  Company's  federal  and state  tax  positions  and  in  the  determination  of  its  tax 
provision.  Despite  our  belief  that  the  liability  for  unrecognized  tax  benefits  is  adequate,  it  is  often  difficult  to  predict  the  final 
outcome or the timing of the resolution of any particular tax matter. We may adjust these liabilities as relevant circumstances evolve, 
such  as  guidance  from  the  relevant  tax  authority,  or  resolution  of  issues  in  the  courts.  These  adjustments  are  recognized  as  a 
component of income tax expense in the period in which they are identified. The Company also cannot predict when or if any other 
future tax payments related to these tax positions may occur. 

We remain subject to examination for tax years 2017 through 2020 for all of our major tax jurisdictions.  

43 

 
 
  
  
  
    
  
      
        
  
    
    
    
    
    
    
    
    
    
    
      
        
  
    
    
    
  
      
        
  
    
  
      
        
  
  
  
  
  
  
  
  
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

14.  Other Gains and Losses 

Gains on Dispositions of Retail Store Locations  

Selling, general and administrative expenses for the year ended November 28, 2020 include gains totaling $1,313 resulting from the 
settlement of lease obligations due to the early termination of leases at our retail store locations in Torrance, California and Culver 
City, California. 

Selling, general and administrative expenses for the year ended November 24, 2018 includes a gain of $165 resulting from the sale 
of our retail store location in Spring, Texas for $2,463 in cash. The store was closed in October of 2018 and repositioned to a new 
location serving the Houston market in The Woodlands, Texas, which opened in November of 2018. 

Early Retirement Program 

During the first quarter of fiscal 2019, we offered a voluntary early retirement package to certain eligible employees of the Company. 
These employees received pay equal to one-half their current salary plus benefits over a period of one year from the final day of 
each individual’s active employment. Accordingly, we recognized a charge of $835 during the year ended November 30, 2019. The 
unpaid obligation of $0 and $374 is included in other accrued liabilities in our consolidated balance sheet as of November 28, 2020 
and November 30, 2019, respectively. 

Asset Impairment Charges and Lease Exit Costs 

During  fiscal  2020  we  recorded  $11,114  of  non-cash  impairment  charges  on  the  assets  of  five  underperforming  retail  stores, 
including $6,239 for the impairment of operating lease right-of-use assets associated with the leased locations. We also incurred 
$1,070  of  non-cash  impairment  charges  in  our  wholesale  segment,  primarily  due  to  the  closing  of  our  custom  upholstery 
manufacturing facility in Grand Prairie, Texas, in May. 

During  fiscal  2019,  the  loss  from  operations  included  $4,431  of  non-cash  impairment  charges  recognized  on  the  assets  of  six 
underperforming  retail  stores.  In  addition,  a  $149  charge  was  accrued  for  lease  exit  costs  incurred  in  connection  with  the 
repositioning of a Company-owned retail store in Palm Beach, Florida to a new location within the same market. 

During fiscal 2018 income from operations included $469 of non-cash asset impairment charges recognized on the assets of one 
underperforming retail location, and a $301 charge for the accrual of lease exit costs incurred in connection with the closing of a 
Company-owned retail store location in San Antonio, Texas. 

Litigation Expense 

During fiscal 2020 and 2019 we accrued $1,050 and $700, respectively for the estimated costs to resolve certain wage and hour 
violation claims that had been asserted against the Company (see Note 16). 

Gains from Company-Owned Life Insurance 

Other loss, net for the fiscal 2020, 2019 and 2018 includes gains of $914, $629 and $266, respectively, arising from death benefits 
from Company-owned life insurance. 

44 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

15.  Leases and Lease Guarantees  

Leases 

Fiscal 2020 

Effective as of the beginning of fiscal 2020, we adopted ASU 2016-02, Leases (Topic 842) and all related amendments. See “Leases” 
under Note 2 for a discussion of our accounting policies and elections under Topic 842 as well as the impact of the adoption upon 
our financial statements. 

Supplemental balance sheet information related to our leases as of November 28, 2020 is as follows: 

Operating leases: 

Right of use assets 
Lease liabilties, short-term 
Lease liabilties, long-term 

Finance leases: 

Right of use assets (1) 
Lease liabilties, short-term (2) 
Lease liabilties, long-term (3) 

  $

  $

116,903  
27,078  
111,972  

2,623  
534  
1,862  

(1)  Included in property & equipment, net in our consolidated balance sheet. 
(2)  Included in other current liabilites and accrued expenses in our consolidated balance sheet. 
(3)  Included in other long-term liabilites and accrued expenses in our consolidated balance sheet. 

Our right-of-use assets under operating leases by segment as of November 28, 2020 are as follows: 

Wholesale 
Retail 
Logistical services 

Total right of use assets 

The components of our lease cost for the year ended November 28, 2020 are as follows: 

Operating lease cost 
Financing lease cost: 

Amortization of right-of-use assets 
Interest on lease liabilities 

Short-term lease cost 
Variable lease cost (net of abatements received) 
Sublease income 
Total lease cost 

  $

  $

10,232  
90,487  
16,184  
116,903  

$

33,207  

213  
49  
2,040  
(605) 
(1,557) 
33,347  

$

45 

 
 
  
  
  
  
  
      
  
    
    
  
      
  
      
  
    
    
  
 
  
  
  
  
    
    
  
    
  
  
  
  
  
  
  
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

Supplemental lease disclosures as of November 28, 2020 and for the fiscal year then ended are as follows: 

   Operating        Financing 

For the year ended November 28, 2020: 

Cash paid for amounts included in the measurements of lease liabilities 
Lease liabilities arising from new right-of-use assets 

  $ 

35,310     $ 
10,804       

260  
2,623  

As of November 28, 2020: 

Weighted average remaining lease terms (years) 
Weighted average discount rates 

6.2       
4.98%     

4.3  
4.43%

Future payments under our leases and the present value of the obligations as of November 28, 2020 are as follows: 

  $ 

Fiscal 2021 
Fiscal 2022 
Fiscal 2023 
Fiscal 2024 
Fiscal 2025 
Thereafter 

Total lease payments 
Less: interest 

Total lease obligations 

  $ 

Operating 
Leases 

Financing 
Leases 

33,265    $ 
30,829      
25,586      
18,732      
15,423      
38,237      
162,072      
23,022      
139,050    $ 

629  
629  
629  
517  
197  
33  
2,634  
238  
2,396  

As of November 28, 2020, we had a commitment to acquire twenty-four tractors under leases for use in our logistical services 
segment that are expected to commence at various times during the first half of fiscal 2021 and replace older units that will be 
coming off lease. These leases are expected to have annual payments totaling approximately $705 per year over seven years. 

We sublease a small number of our leased locations to certain of our licensees for operation as BHF network stores. The terms of 
these leases generally match those of the lease we have with  the lessor. Minimum future lease payments due to us under these 
subleases are as follows: 

Fiscal 2021 
Fiscal 2022 
Fiscal 2023 
Fiscal 2024 
Fiscal 2025 
Thereafter 

  $

Total minimum future rental income 

  $

1,276  
1,086  
769  
664  
599  
156  
4,550  

We negotiated with a number of our landlords to obtain relief in the form of rent deferrals or abatements of rent as a result of the 
effects of COVID-19 on our business. At November 28, 2020, the unpaid rent was $990 which primarily represents rent deferred to 
fiscal 2021 and is included in other current liabilities and accrued expenses in our accompanying condensed consolidated balance 
sheet. In accordance with FASB Staff Q&A - Topic 842 and Topic 840: Accounting for Lease Concessions Related to the Effects 
of  the  COVID-19  Pandemic  ("FASB  Staff  Q&A")  issued  in  April  2020,  we  have  elected  to  account  for  any  lease  concessions 
resulting directly from COVID-19 as if the enforceable rights and obligations for the concessions existed in the respective contracts 
at lease inception and as such we will not account for any concession as a lease modification. Guidance from the FASB Staff Q&A 
provided methods to account for rent deferrals which include the option to treat the lease as if no changes to the lease contract were 
made or to treat deferred payments as variable lease payments. The FASB Staff Q&A allows entities to select the most practical 
approach and does not require the same approach be applied consistently to all leases. As a result, we account for the deferrals as if 
no changes to the lease contract were made and will continue to recognize lease expense, on a straight-line basis, during the deferral 
period. For any abatements received, we account for those as variable rent in the period in which the abatement is granted. For the 
year ended November 28, 2020, we were granted abatements against rent totaling $775. 

46 

 
 
  
  
  
  
      
         
  
      
         
  
    
  
      
         
  
      
         
  
    
    
  
  
  
  
    
  
  
      
        
  
    
    
    
    
    
    
    
  
  
  
    
    
    
    
    
  
   
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

Fiscal 2019 and 2018 

Prior to the adoption of Topic 842, we accounted for and reported our leases in accordance with Topic 840, Leases. In accordance 
with Topic 840 leases classified as operating leases were not included in our balance sheet as right of use assets or lease obligations 
as of November 30, 2019. During fiscal 2019 and 2018 we had no leases which were classified as capital leases. 

Lease expense was $41,809 and $38,970 for 2019 and 2018, respectively. Improvement allowances received from lessors at the 
inception of a lease are deferred and amortized over the term of the lease. The unamortized balance of such amounts was $8,050 
and at November 30, 2019, with the non-current portion of $6,799 included in other liabilities in our consolidated balance sheets 
and the remaining current portion included in other accrued liabilities. 

Real estate rental net loss (rental income less lease costs, depreciation, insurance, and taxes), related to licensee stores and other 
investment real estate, was $156 and $23 in 2019 and 2018, respectively, and is reflected in other loss, net in the accompanying 
consolidated statements of operations. 

Guarantees 

As part of the strategy for our store program, we have guaranteed certain lease obligations of licensee operators. Lease guarantees 
range from one to three years. We were contingently liable under licensee lease obligation guarantees in the amount of $1,811 and 
$1,776 at November 28, 2020 and November 30, 2019, respectively. 

In the event of default by an independent dealer under the guaranteed lease, we believe that the risk of loss is mitigated through a 
combination of options that include, but are not limited to, arranging for a replacement dealer, liquidating the collateral, and pursuing 
payment under the personal guarantees of the independent dealer. The proceeds of the above options are estimated to cover the 
maximum amount of our future payments under the guarantee obligations, net of reserves. The fair value of lease guarantees (an 
estimate of the cost to the Company to perform on these guarantees) at November 28, 2020 and November 30, 2019, were not 
material. 

16.  Contingencies 

We are involved in various claims and actions which arise in the normal course of business. Although the final outcome of these 
matters cannot be determined, based on the facts presently known, it is our opinion that the final resolution of these matters will not 
have a material adverse effect on our financial position or future results of operations. We carried reserves for pending litigation 
claims in the amount of $1,050 and $900 as of November 28, 2020 and November 30, 2019, respectively, which are included in 
other current liabilities and accrued expenses in our accompanying balance sheets. 

47 

 
 
  
  
  
  
  
  
  
  
  
  
  
  
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

17.  Earnings (Loss) Per Share 

The following table sets forth the computation of basic and diluted earnings (loss) per share: 

Numerator: 

Net income (loss) 

Denominator: 

Denominator for basic income per share - weighted average shares 
Effect of dilutive securities* 
Denominator for diluted income per share — weighted average shares and 

2020 

2019 

2018 

  $ 

(10,421)   $ 

(1,928)   $ 

8,218  

9,969,616       10,285,511       10,651,351  
40,424  

-      

-      

assumed conversions 

9,969,616       10,285,511       10,691,775  

Basic income (loss) per share: 

Net income (loss) per share — basic 

Diluted income (loss) per share: 

Net income (loss) per share — diluted 

  $ 

(1.05)   $ 

(0.19)   $ 

0.77  

  $ 

(1.05)   $ 

(0.19)   $ 

0.77  

*Due to the net losses in 2020 and 2019, the potentially dilutive securities would have been anti-dilutive and are therefore excluded. 

For fiscal 2020, 2019 and 2018, the following potentially dilutive shares were excluded from the computations as their effect was 
anti-dilutive: 

Unvested restricted shares 
Stock options 

2020 

2019 

2018 

34,500      
5,250      

90,153       
5,250       

45,036  
-  

48 

 
 
  
  
  
  
    
    
  
      
        
        
  
  
      
        
        
  
      
        
        
  
    
    
    
  
      
        
        
  
      
        
        
  
  
      
        
        
  
      
        
        
  
  
  
  
  
  
    
    
  
    
    
  
  
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

18.  Segment Information 

We  have  strategically  aligned  our  business  into  three  reportable  segments  as  defined  in  ASC  280,  Segment  Reporting,  and  as 
described below: 

●  Wholesale. The wholesale home furnishings segment is involved principally in the design, manufacture, sourcing, sale 
and distribution of furniture products to a network of Bassett stores (Company-owned and licensee-owned stores retail 
stores) and independent furniture retailers. Our wholesale segment includes our wood and upholstery operations as well 
as all corporate selling, general and administrative expenses, including those corporate expenses related to both Company-
and licensee-owned stores. Our wholesale segment also includes our holdings of short-term investments and retail real 
estate previously leased as licensee stores. The earnings and costs associated with these assets are included in other loss,
net, in our consolidated statements of operations. 

●  Retail  –  Company-owned  stores.  Our  retail  segment  consists  of  Company-owned  stores  and  includes  the  revenues,
expenses, assets and liabilities and capital expenditures directly related to these stores and the Company-owned distribution 
network utilized to deliver products to our retail customers. 

●  Logistical services. With our acquisition of Zenith in 2015, we created the logistical services operating segment which
reflects the operations of Zenith. In addition to providing shipping and warehousing services for the Company, Zenith also
provides similar services to other customers, primarily in the furniture industry. Revenue from the performance of these
services to other customers is included in logistics revenue in our consolidated statement of operations. Zenith’s operating
costs are included in selling, general and administrative expenses and total $73,913, $78,220 and $81,468 for fiscal 2020,
2019 and 2018, respectively. 

Inter-company sales elimination represents the elimination of wholesale sales to our Company-owned stores and the elimination of 
Zenith logistics revenue from our wholesale segment. Inter-company income elimination includes the embedded wholesale profit 
in the Company-owned store inventory that has not been realized. These profits will be recorded when merchandise is delivered to 
the retail consumer. The inter-company income elimination also includes rent paid by our retail stores occupying Company-owned 
real estate, and the elimination of shipping and handling charges from Zenith for services provided to our wholesale operations. 

49 

 
 
  
  
  
  
  
  
  
  
  
  
 
 
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

The following table presents segment information for each of the last three fiscal years: 

Net Sales 

Wholesale 
Retail 
Logistical services 
Inter-company eliminations: 
Furniture and accessories 
Logistical services 

Consolidated 

Income (loss) from Operations 

Wholesale 
Retail 
Logistical services 
Inter-company elimination 
Asset impairment charges 
Goodwill impairment charge 
Early retirement program 
Litigation expense 
Lease exit costs 

Consolidated income from operations 

Depreciation and Amortization 

Wholesale 
Retail 
Logistical services 

Consolidated 

Capital Expenditures 

Wholesale 
Retail 
Logistical services 

Consolidated 

Identifiable Assets 

Wholesale 
Retail 
Logistical services 

Consolidated 

2020 

2019 

2018 

221,075     $
211,944       
75,158       

261,105    $ 
268,693      
80,074      

255,958  
268,883  
82,866  

(95,347 )     
(26,967 )     
385,863     $

(125,933)     
(31,852)     
452,087    $ 

(122,372) 
(28,480) 
456,855  

4,587     $
(9,497 )     
1,245       
2,647       
(12,184 )     
(1,971 )     
-       
(1,050 )     
-       
(16,223 )   $

3,125     $
6,578       
3,777       
13,480     $

2,434     $
695       
2,900       
6,029     $

11,456    $ 
(7,009)     
1,855      
1,144      
(4,431)     
(1,926)     
(835)     
(700)     
(149)     
(595)   $ 

3,178    $ 
6,303      
4,019      
13,500    $ 

5,650    $ 
8,473      
3,627      
17,750    $ 

12,274  
(312) 
1,398  
1,494  
(469) 
-  
-  
-  
(301) 
14,084  

3,038  
6,096  
4,069  
13,203  

4,194  
12,769  
1,338  
18,301  

176,243     $
169,105       
57,201       
402,549     $

144,392    $ 
91,997      
39,377      
275,766    $ 

144,209  
96,241  
51,191  
291,641  

  $

  $

  $

  $

  $

  $

  $

  $

  $

  $

A breakdown of wholesale sales by product category for each of the last three fiscal years is provided below: 

Bassett Custom Upholstery    $ 
Bassett Leather 
Bassett Custom Wood 
Bassett Casegoods 
Accessories (1) 
Total 

  $ 

2020 

128,200      
21,436      
39,311      
32,128      
-      
221,075      

2019 

152,415       
19,220       
46,082       
40,920       
2,468       
261,105       

2018 

141,321       
21,589       
46,074       
42,875       
4,099       
255,958       

58.4%   $ 
7.4%     
17.6%     
15.7%     
0.9%     
100.0%   $ 

58.0%   $ 
9.7%     
17.8%     
14.5%     
0.0%     
100.0%   $ 

55.2% 
8.4% 
18.0% 
16.8% 
1.6% 
100.0% 

(1) Beginning with the third quarter of fiscal 2019, our wholesale segment no longer purchases accessory 
items for resale to our retail segment or to third party customers such as licensees or independent furniture 
retailers. Our retail segment and third party customers now source their accessory items directly from the 
accessory vendors. 

50 

 
 
  
  
  
    
    
  
      
        
        
  
    
    
      
        
        
  
    
    
      
        
        
  
    
    
    
    
    
    
    
    
      
        
        
  
    
    
      
        
        
  
    
    
      
        
        
  
    
    
  
  
  
  
     
     
  
  
      
        
         
        
         
        
  
    
    
    
    
  
  
Notes to Consolidated Financial Statements - Continued 
(In thousands, except share and per share data) 

19.  Quarterly Results of Operations 

Sales revenue: 

Furniture and accessories 
Logistics 

Total sales revenue 
Cost of furniture and accessories sold 
Income (loss) from operations 
Net income (loss) 

Basic earnings (loss) per share 
Diluted earnings (loss) per share 

Sales revenue: 

Furniture and accessories 
Logistics 

Total sales revenue 
Cost of furniture and accessories sold 
Income from operations 
Net income 

Basic earnings per share 
Diluted earnings per share 

2020 

First 
Quarter 

Second 
Quarter (1)     

Third 
Quarter (2)     

Fourth 
Quarter (3)   

  $ 

98,942    $ 
13,178      
112,120      
45,270      
2,210      
1,210      
0.12      
0.12      

53,000    $ 
10,801      
63,801      
29,452      
(31,229)     
(20,352)     
(2.04)     
(2.04)     

2019 

80,341    $ 
11,218      
91,559      
38,418      
2,747      
2,178      
0.22      
0.22      

105,389  
12,994  
118,383  
50,427  
10,049  
6,543  
0.65  
0.65  

First 
Quarter (4)     

Second 
Quarter 

Third 
Quarter 

Fourth 
Quarter (5)   

  $ 

107,357    $ 
13,484      
120,841      
49,177      
949      
608      
0.06      
0.06      

95,824    $ 
12,366      
108,190      
42,530      
701      
445      
0.04      
0.04      

98,369    $ 
11,050      
109,419      
42,246      
3,400      
2,157      
0.21      
0.21      

102,315  
11,322  
113,637  
45,291  
(5,645) 
(5,138) 
(0.50) 
(0.50) 

The first quarter of fiscal 2019 included 14 weeks. All other quarters shown above for fiscal 2020 and 2019 consisted of 13-week 
fiscal periods. 

(1)  Loss from operations reflects the severe impact of the COVID-19 pandemic on our operations due to the temporary closure
of substantially all of our operations during the quarter (see Note 1) and includes a goodwill impairment charge of $1,971
(see  Note  8),  asset  impairment  charges  of  $12,184  and  a  litigation  expense  accrual  of  $1,050  (see  Note  14).  Net  loss
includes the benefit of carrying back the loss to tax years with 35% federal statutory rate as provided for in the CARES
Act (see Note 13). 

(2)  Net income includes a non-taxable gain of $914 arising from the recognition of a death benefit from Company-owned life 

insurance (see Note 14). 

(3)  Income from operations includes a gain of $1,161 arising from the settlement of a lease obligation (see Note 14). 
(4)  Income from operations includes a charge of $835 arising from certain eligible employees’ acceptance of voluntary early 

retirement package (see Note 14). 

(5)  Loss from operations includes a charge for the impairment of goodwill of $1,926 (see Note 8) and charges of $4,431, $700
and $149 for impairment of long-lived assets, litigation costs and lease termination costs, respectively (see Note 14). 

51 

 
 
  
  
  
  
  
  
    
      
        
        
        
  
    
    
    
    
    
    
    
  
  
  
  
  
  
    
    
      
        
        
        
  
    
    
    
    
    
    
    
  
  
  
  
  
  
  
  
 
SELECTED FINANCIAL DATA  

The  selected  financial  data  set  forth  below  for  the  fiscal  years  indicated  were  derived  from  our  audited  consolidated  financial 
statements. The information should be read in conjunction with our consolidated financial statements (including the notes thereto) 
and  “Management’s  Discussion  and  Analysis  of  Financial  Condition  and  Results  of  Operations”  appearing  elsewhere  in,  or 
incorporated by reference into, this report. 

(In thousands) 

2020 

2019 

2018 

2017 

2016 

Net sales 
Operating income (loss) 
Other income (loss), net 
Income before income taxes 
Income tax expense (benefit) 
Net income 
Diluted earnings per share 
Cash dividends declared 
Cash dividends per share 
Total assets 
Long-term debt 
Current ratio 
Book value per share 

858  (2)   $

(1,878)      $

  $ 385,863       $ 452,087       $ 456,855       $ 452,503       $ 432,038  
(595) (1)   $ 14,084  (1)   $ 27,018  (1)   $ 28,193  
  $ (16,223) (1)   $
(2,416) 
(563)      $
  $
(1,145)      $
(1,740)      $ 12,206       $ 27,876       $ 25,777  
  $ (16,786)      $
3,988  (4)   $
(6,365) (3)   $
9,948  
  $
8,218       $ 18,256       $ 15,829  
  $ (10,421)      $
1.46  
(1.05)      $
  $
7,345  
4,545       $
  $
  $
0.68  
0.46       $
  $ 402,549  (5)   $ 275,766       $ 293,748       $ 293,748       $ 278,267  
  $
3,821  
     1.36 to 1          1.89 to 1          1.82 to 1          1.91 to 1          1.83 to 1  
16.85  
  $

188       $
(1,928)      $
(0.19)      $
5,133       $
0.50       $

1.70       $
8,266       $
0.77       $

0.77       $
4,496       $
0.47       $

17.83       $

9,620       $

17.66       $

18.08       $

15.89       $

329       $

329       $

-       $

-       $

(1)  Fiscal 2020 operating loss includes asset impairment charges, a goodwill impairment charge and 
litigation  costs  totaling  $15,205.  Fiscal  2019  operating  income  includes  asset  impairment 
charges, a goodwill impairment charge, litigation costs, early retirement program charges and 
lease exit costs totaling $8,041. Fiscal 2018 operating income includes restructuring and asset 
impairment charges and lease exit costs totaling $770. Fiscal 2017 operating income includes a 
gain  of  $1,220  resulting  from  the  sale  of  our  retail  store  in  Las  Vegas,  Nevada.  Fiscal  2016 
operating income includes the benefit of a $1,428 award received from the settlement of class 
action  litigation.  See  Note  14  to  the  Consolidated  Financial  Statements  for  additional 
information related to each of these items. 

(2)  Fiscal 2017 includes $4,221 of gains resulting from the sale of investments, and an impairment 
charge of $1,084 retail real estate held for investment (see Note 2 to the Consolidated Financial 
Statements). 

(3)  Fiscal 2020 income tax benefit includes a federal tax benefit of $3,038 arising from the carryback 
of net operating losses to years with a 35% statutory rate due to enactment of the CARES Act 
(see Note 13 to the Consolidated Financial Statements). 

(4)  Fiscal 2018 income tax expense includes a charge of $1,331 resulting from the remeasurement 
of our deferred tax assets following the reduction of federal income tax rates with the enactment 
of the Tax Cuts and Jobs Act (see Note 13 to the Consolidated Financial Statements). 

(5)  Fiscal  2020  total  assets  include  right  of  use  assets  under  operating  leases  in  the  amount  of 
$116,903 recognized following the adoption of Accounting Standards Update 2016-02, Leases 
(Topic 842) as of the beginning of fiscal 2020. Prior years were not restated under the transition 
method which we elected (see “Leases” under Note 2 to the Consolidated Financial Statements). 

52 

 
 
  
  
       
       
       
       
  
  
      
           
           
           
           
  
  
  
  
  
  
  
 
 
 
Bassett Furniture Industries, Incorporated 

Schedule II 

Analysis of Valuation and Qualifying Accounts 
For the Years Ended November 28, 2020, November 30, 2019 and November 24, 2018 
(amounts in thousands) 

Balance 
Beginning 
of Period      

Additions 
Charged to 
Cost and 
Expenses      

Deductions 
(1) 

     Other 

Balance 
End 
of Period    

For the Year Ended November 24, 2018: 
Reserve deducted from assets to which it applies        

Allowance for doubtful accounts 

Notes receivable valuation reserves 

  $ 

  $ 

For the Year Ended November 30, 2019: 
Reserve deducted from assets to which it applies        

Allowance for doubtful accounts 

Notes receivable valuation reserves 

  $ 

  $ 

For the Year Ended November 28, 2020: 
Reserve deducted from assets to which it applies        

Allowance for doubtful accounts 

Notes receivable valuation reserves 

  $ 

  $ 

617    $ 

339    $ 

(252)   $ 

50  (2)  $ 

754  

1,454    $ 

-    $ 

(1,077)   $ 

-    

$ 

377  

754    $ 

61    $ 

-      

$ 

815  

377    $ 

-    $ 

(18)   $ 

-    

$ 

359  

815    $ 

492    $ 

(96)   $ 

-    

$ 

1,211  

359    $ 

-    $ 

(18)   $ 

-    

$ 

341  

(1) Deductions are for the purpose for which the reserve was created. 
(2) Represents reserves of acquired business at date of acquisition. 

53 

 
  
  
  
  
  
    
      
        
        
        
    
    
  
        
        
        
    
    
  
  
      
        
        
        
    
    
  
  
      
        
        
        
    
    
  
  
      
        
        
        
    
    
  
  
      
        
        
        
    
    
  
      
        
        
        
    
    
  
        
        
        
    
    
  
  
      
        
        
        
    
    
  
     
  
      
        
        
        
    
    
  
  
      
        
        
        
    
    
  
  
      
        
        
        
    
    
  
      
        
        
        
    
    
  
        
        
        
    
    
  
  
      
        
        
        
    
    
  
  
      
        
        
        
    
    
  
  
  
 
 
STOCKHOLDER PERFORMANCE GRAPH 

Presented below is a line graph comparing the yearly percentage change in the cumulative total stockholder return on the 
Company’s Common Stock against the cumulative total return of the Standard & Poor’s 500 Index and the Company’s peer 
group. The Company’s peer group consists of the following: 

American Woodmark, Inc. 
Culp, Inc.  
The Dixie Group, Inc. 
Ethan Allan Interiors, Inc. 
Flexsteel Industries, Inc.  
Haverty Furniture Companies, Inc.    
Hooker Furniture Corporation  
Kimball International, Inc.   
Kirkland’s, Inc. 
La-Z-Boy Incorporated  
Nautilus, Inc.   

This graph assumes that $100 was invested on November 28, 2015 in the Company’s Common Stock, the S&P Index and the 
peer group and that any dividends paid were invested. Tile Shop Holdings, Inc. is no longer included in our peer group as its 
common stock is no longer publicly traded. 

54 

 
 
 
 
 
 
 
 
 
 
Management’s Report of Internal Control over Financial Reporting 

As of the end of the period covered by this Annual Report on Form 10-K, our principal executive officer and principal financial 
officer have evaluated the effectiveness of our “disclosure controls and procedures” (“Disclosure Controls”). Disclosure Controls, 
as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), are procedures that are 
designed to provide reasonable assurance that information required to be disclosed in our reports filed under the Exchange Act, such 
as  this  Annual  Report,  is  recorded,  processed,  summarized  and reported  within  the  time  periods  specified  in  the  Securities  and 
Exchange Commission’s rules and forms. Disclosure Controls are also designed with the objective of ensuring that such information 
is  accumulated  and  communicated  to  our  management,  including  the  CEO  and  CFO,  as  appropriate  to  allow  timely  decisions 
regarding required disclosure. Our management, including the CEO and CFO, does not expect that our Disclosure Controls will 
prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not 
absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact 
that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent 
limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of 
fraud, if any, within the company have been detected. These inherent limitations include the realities that judgments in decision-
making can be faulty, and that breakdowns can occur because of simple error or mistake. The design of any system of controls also 
is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will 
succeed in achieving its stated goals under all potential future conditions. 

Based upon their controls evaluation, our CEO and CFO have concluded that our Disclosure Controls are effective at a reasonable 
assurance level. 

We are responsible for establishing and maintaining adequate internal control over financial reporting in accordance with Exchange 
Act Rule 13a-15. With the participation of our CEO and CFO, our management conducted an evaluation of the effectiveness of our 
internal control over financial reporting as of November 28, 2020 based on the criteria established in Internal Control - Integrated 
Framework  issued  by  the  Committee  of  Sponsoring  Organizations  of  the  Treadway  Commission.  Based  on  this  evaluation, 
management concluded that our internal control over financial reporting was effective as of November 28, 2020, based on those 
criteria. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that 
the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can 
provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. 

Ernst  &  Young  LLP,  the  Company’s  independent  registered  public  accounting  firm,  has  issued  an  attestation  report  on  the 
effectiveness of the Company’s internal control over financial reporting. 

Changes in internal control over financial reporting.  

There have been no changes in our internal controls over financial reporting during our fourth fiscal quarter that have materially 
affected, or are reasonably likely to materially affect, our internal control over financial reporting. 

55 

 
  
  
  
  
  
  
 
Report of Independent Registered Public Accounting Firm 

To the Stockholders and the Board of Directors of Bassett Furniture Industries, Incorporated and Subsidiaries 

Opinion on the Financial Statements 

We have audited the accompanying consolidated balance sheets of Bassett Furniture Industries, Incorporated and Subsidiaries (the 
Company) as of November 28, 2020 and November 30, 2019, and the related consolidated statements of operations, comprehensive 
income (loss), stockholders' equity and cash flows for each of the three years in the period ended November 28, 2020, and the related 
notes and financial statement schedule listed in the Index at Item 15(a)(2) (collectively referred to as the “consolidated financial 
statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of 
the Company at November 28, 2020 and November 30, 2019, and the results of its operations and its cash flows for each of the 
three years in the period ended November 28, 2020, in conformity with U.S. generally accepted accounting principles. 

We  also  have  audited,  in  accordance  with  the  standards  of  the  Public  Company  Accounting  Oversight  Board  (United  States) 
(PCAOB), the Company’s internal control over financial reporting as of November 28, 2020, based on criteria established in Internal 
Control-Integrated  Framework  issued  by  the  Committee  of  Sponsoring  Organizations  of  the  Treadway  Commission  (2013 
framework), and our report dated January 21, 2021 expressed an unqualified opinion thereon. 

Adoption of ASU No. 2016-02 

As discussed in Note 2 to the consolidated financial statements, the Company changed its method of accounting for leases in fiscal 
year 2020 due to the adoption of ASU No. 2016-02, Leases (Topic 842), as amended, effective December 1, 2019, using the modified 
retrospective approach. 

Basis for Opinion 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these 
financial  statements  based  on  our  audits.  We  are  a  public  accounting  firm  registered  with  the  PCAOB  and  are  required  to  be 
independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations 
of the Securities and Exchange Commission and the PCAOB. 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the 
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error 
or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether 
due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, 
evidence  regarding  the  amounts  and  disclosures  in  the  financial  statements.  Our  audits  also  included  evaluating  the  accounting 
principles  used  and  significant  estimates  made  by  management,  as  well  as  evaluating  the  overall  presentation  of  the  financial 
statements. We believe that our audits provide a reasonable basis for our opinion. 

We have served as the Company’s auditor since 2002. 
Richmond, Virginia 
January 21, 2021 

56 

 
  
  
  
  
  
  
  
  
  
  
 
  
 
 
 
Report of Independent Registered Public Accounting Firm 

To the Stockholders and the Board of Directors of Bassett Furniture Industries, Incorporated and Subsidiaries 

Opinion on Internal Control over Financial Reporting 

We  have  audited  Bassett  Furniture  Industries,  Incorporated  and  Subsidiaries’  internal  control  over  financial  reporting  as  of 
November  28,  2020,  based  on  criteria  established  in  Internal  Control—Integrated  Framework  issued  by  the  Committee  of 
Sponsoring Organizations of the Treadway Commission (2013 framework), (the COSO criteria). In our opinion, Bassett Furniture 
Industries, Incorporated and Subsidiaries (the Company) maintained, in all material respects, effective internal control over financial 
reporting as of November 28, 2020, based on the COSO criteria. 

We  also  have  audited,  in  accordance  with  the  standards  of  the  Public  Company  Accounting  Oversight  Board  (United  States) 
(PCAOB),  the consolidated  balance  sheets  of the  Company  as  of  November  28,  2020  and November  30, 2019,  and  the  related 
consolidated statements of operations, comprehensive income (loss), stockholders' equity and cash flows for each of the three years 
in the period ended November 28, 2020, and the related notes and schedule and our report dated January 21, 2021 expressed an 
unqualified opinion thereon. 

Basis for Opinion 

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment 
of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal 
Control  over  Financial  Reporting.  Our  responsibility  is  to  express  an  opinion  on  the  Company’s  internal  control  over  financial 
reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with 
respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities 
and Exchange Commission and the PCAOB. 

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the 
audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material 
respects. 

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness 
exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing 
such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for 
our opinion. 

Definition and Limitations of Internal Control Over Financial Reporting 

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability 
of  financial  reporting  and  the  preparation  of  financial  statements  for  external  purposes  in  accordance  with  generally  accepted 
accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain 
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets 
of  the  company;  (2)  provide  reasonable  assurance  that  transactions  are recorded  as  necessary  to  permit  preparation  of  financial 
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being 
made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance 
regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a 
material effect on the financial statements. 

Because  of  its  inherent  limitations,  internal  control  over  financial  reporting  may  not  prevent  or  detect  misstatements.  Also, 
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because 
of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 

Richmond, Virginia 
January 21, 2021 

57 

 
  
  
  
  
  
  
  
  
  
  
  
  
 
  
 
 
(cid:31)(cid:30)(cid:29)(cid:28)(cid:27)(cid:26)(cid:25)(cid:24)(cid:23)(cid:27)(cid:29)(cid:22)(cid:21)(cid:23)(cid:22)(cid:21)(cid:29)(cid:20)(cid:22)(cid:25)(cid:19)(cid:19)(cid:18)(cid:27)(cid:17)(cid:19)(cid:25)(cid:22)(cid:16)(cid:15)

INVESTOR INFORMATION

Internet Site

Corporate Information and Investor Inquiries

Our site on the Internet has been updated recently and is

Our annual report and proxy statement together

filled with information about Bassett Furniture, including

contain much of the information presented in the

this annual report, detailed financial information and

Form 10-K report filed with the Securities and Exchange

updates, information about our home furnishings

Commission. Individuals who wish to receive the

products, and a dealer locator of Bassett stores and other

Form 10-K or other corporate literature should visit our

stores that feature Bassett products. Visit us at

website at bassettfurniture.com or contact Investor Relations,

bassettfurniture.com.

at 276.629.6000.

Forward Looking Statements

Transfer Agent - Stockholder Inquiries

This Annual Report contains forward-looking statements

Stockholders with inquiries relating to stockholder

as defined in the Private Securities Litigation and Reform

records, stock transfers, change of ownership, change of

Act of 1995 and within the meaning of Sections 27A of

address or dividend payments should write to:

the Securities Exchange Act of 1933, as amended, and

American Stock Transfer & Trust Company, LLC

Section 21E of the Securities Exchange Act of 1934, as

Operations Center https://www.google.com/

amended. When used in this Annual Report the words

“hope,” “believe,” “expect,” “plan” or “planned,” “intend,”

6201 15th Avenue

Brooklyn, NY 11219

“anticipate,” “potential” and similar expressions are

Toll free: (800) 937-5449

intended to identify forward-looking statements. Readers

Local & International: (718) 921-8124

are cautioned against placing undue reliance on these

Email: info@astfinancial.com

statements. Such statements, including but not limited to

Web site: www.astfinancial.com

those regarding increases in sales, improving gross margins, 

growth in earnings per share, and the operating performance 

Annual Meeting

of licensed Bassett stores are based upon management’s 

The Bassett Annual Meeting of Shareholders will be held 

beliefs, as well as assumptions made by and information 

Wednesday, March 10, 2021 at 10 a.m. EST virtually.

currently available to management, and involve various risks and 

uncertainties, certain of which are beyond the Company’s control. 

Market and Dividend Information

The Company’s actual results could differ materially from those 

Bassett’s common stock trades on the NASDAQ national

expressed in any forward-looking statement made by or on 

market system under the symbol “BSET.” We had 3,400 

behalf of the Company.

beneficial stockholders as of January 15, 2021. The range of per 

share amounts for the high and low market prices and dividends 

If the Company does not attain its goals, its business and

declared for the last two fiscal years are listed below:

results of operations might be adversely affected. For

a discussion of factors that may impair the Company’s

ability to achieve its goals, please see the cautionary

statements in the Management’s Discussion and Analysis

section of this Annual Report.

MARKET PRICES OF
COMMON STOCK

DIVIDENDS
DECLARED

Quarter

2020

2019

2020

2019

  HIGH

  LOW

   HIGH

  LOW

First

$17.02

$9.71

$21.95

$18.11

$0.125

$0.125 

Second

Third

9.93

12.72

4.35

6.13

Fourth

17.42

12.07

20.04

16.23

18.24

14.61

11.64

11.76

$0.125

0.08

0.125

0.125 

0.125 

0.125 

 
 
 
 
 
In 2020, we expanded Made in 

America Bench Made dining 

with new styles, finishes and 

fabrics. The launch led to a 

rebranding of Bench Made with 

a new modern look to appeal  

to a broader audience. 

BOARD OF DIRECTORS

ROBERT H. SPILMAN, JR.
Chairman of the Board and Chief Executive Officer
Bassett Furniture Industries, Inc.

VIRGINIA W. HAMLET
Founder and Owner
Hamlet Vineyards, LLC

EMMA S. BATTLE
Chief Executive Officer
Market Vigor, LLC

JOHN R. BELK
Former President and Chief Operating Officer 
Belk, Inc.
Private Investor

KRISTINA K. CASHMAN
Former Chief Financial Officer
Upward Projects, LLC

OFFICERS

J. WALTER MCDOWELL
Former Chief Executive Officer
Carolinas/Virginia Banking 
Wachovia Corporation 

WILLIAM C. WAMPLER, JR.
Managing Member, WTX, LLC
Former Member, Senate of Virginia

WILLIAM C. WARDEN, JR.
Lead Independent Director of Bassett Furniture Industries, Inc.
Former Executive Vice President
Lowe’s Companies, Inc.

ROBERT H. SPILMAN, JR.
Chairman of the Board and Chief Executive Officer

BRIAN W. CLASPELL
Vice President, Chief Information Officer

DAVID C. BAKER
Senior Vice President, Chief Retail Officer

NICHOLAS C. GEE
Vice President, Corporate Retail Sales

JOHN E. BASSETT, III
Senior Vice President, Chief Operations Officer

DRURY E. INGRAM
Vice President, Corporate Controller

BRUCE R. COHENOUR
Senior Vice President, Chief Sales Officer

J. MICHAEL DANIEL
Senior Vice President, Chief Financial & Administrative 
Officer

MATTHEW S. JOHNSON
Vice President, Sales

MIKE R. KREIDLER
Vice President, Upholstery

JACK L. HAWN, JR.
Senior Vice President, Bassett
President, Zenith

KARA KELCHNER-STRONG
Senior Vice President, Customer Experience Officer

JAY R. HERVEY
Vice President, Secretary, General Counsel

EDWIN C. AVERY, JR.
Vice President, Upholstery Product Development

BETH A. LARSON
Vice President, Upholstery Finance & Administration

PETER D. MORRISON
Vice President, Chief Creative Officer

LOUIS C. MOSSOTTI, JR.
Vice President, Corporate Retail – Southeast Region

J. CARTER UNDERWOOD
Vice President, Wood Operations

EDWARD H. WHITE
Vice President, Human Resources

Cover: Rosa sews covers for motion upholstery in Newton, 

N.C.  Bassett is grateful to all the dedicated employees who 

have worked through a difficult year while maintaining our 

Company’s high standards of quality and service. 

  
 
 
 
Bassett, Virginia

NASDAQ : BSET

Annual Report

2020

A dedication to our craft.