Segment Information

9 Months Ended

Jan. 24, 2015

Segment Information

Segment Information

Note 12: Segment Information

Our reportable operating segments are the Upholstery segment, the Casegoods segment and the Retail segment. During fiscal 2014, we sold our Bauhaus U.S.A. business unit and classified Lea Industries as held for sale while we marketed that business for sale. We were unable to find a buyer for our Lea Industries business, and instead we liquidated all the assets, consisting mostly of inventory, and ceased operations of Lea Industries during the third quarter of fiscal 2015. Our Bauhaus and Lea Industries operating units are presented as discontinued operations, and we have restated prior financial information for the change in composition of our Upholstery and Casegoods segments.

Upholstery Segment. The Upholstery segment mainly consists of two operating units: La-Z-Boy and England. This segment manufactures or imports upholstered furniture. Upholstered furniture includes recliners and motion furniture, sofas, loveseats, chairs, sectionals, modulars, ottomans and sleeper sofas. The Upholstery segment sells directly to La-Z-Boy Furniture Galleries® stores, operators of La-Z-Boy Comfort Studio® and England Custom Comfort Center locations, major dealers and other independent retailers.

Casegoods Segment. The Casegoods segment consists of three brands: American Drew, Hammary, and Kincaid. This segment sells imported wood furniture to furniture retailers. Casegoods product includes bedroom, dining room, entertainment centers, occasional pieces and some manufactured coordinated upholstered furniture. The Casegoods segment sells to major dealers and other independent retailers, as well as La-Z-Boy Furniture Galleries® stores and operators of Comfort Studio® locations.

Retail Segment. The Retail segment consists of 108 company-owned La-Z-Boy Furniture Galleries® stores. The Retail segment sells upholstered furniture, and some casegoods and other accessories, to end consumers through the retail network.

	Quarter Ended						Nine Months Ended
(Unaudited, amounts in thousands)	1/24/15			1/25/14			1/24/15			1/25/14
Sales
Upholstery segment:
Sales to external customers	$	243,390		$	242,492		$	725,590		$	710,162
Intersegment sales	42,946			37,780			120,872			103,183
Upholstery segment sales	286,336			280,272			846,462			813,345
Casegoods segment:
Sales to external customers	24,134			23,417			75,542			72,339
Intersegment sales	1,866			2,337			8,269			7,171
Casegoods segment sales	26,000			25,754			83,811			79,510
Retail segment sales	89,791			80,212			247,285			219,845
Corporate and Other	561			404			2,040			1,952
Eliminations	(44,812		)	(40,117		)	(129,141		)	(110,354		)
Consolidated sales	$	357,876		$	346,525		$	1,050,457		$	1,004,298
Operating Income (Loss)
Upholstery segment	$	31,479		$	31,560		$	86,103		$	86,547
Casegoods segment	860			394			5,380			2,014
Retail segment	4,202			3,087			8,199			8,264
Restructuring	771			60			1,118			115
Corporate and Other	(10,384		)	(9,217		)	(27,189		)	(30,173		)
Consolidated operating income	$	26,928		$	25,884		$	73,611		$	66,767