Segment Information

9 Months Ended

Jan. 23, 2016

Segment Information

Segment Information

Note 11: Segment Information

Our reportable operating segments are the Upholstery segment, the Casegoods segment and the Retail segment.

Upholstery Segment. The Upholstery segment consists primarily of two operating units: La-Z-Boy and England. This segment manufactures and 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® locations and England Custom Comfort Center locations, major dealers, and a wide cross-section of 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 directly to major dealers, as well as La-Z-Boy Furniture Galleries® stores, and a wide cross-section of other independent retailers.

Retail Segment. The Retail segment consists of 123 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)	1/23/16			1/24/15			1/23/16			1/24/15
Sales
Upholstery segment:
Sales to external customers	$	250,740		$	243,390		$	743,304		$	725,590
Intersegment sales	51,652			42,946			137,581			120,872
Upholstery segment sales	302,392			286,336			880,885			846,462
Casegoods segment:
Sales to external customers	22,528			24,134			69,517			75,542
Intersegment sales	2,091			1,866			6,714			8,269
Casegoods segment sales	24,619			26,000			76,231			83,811
Retail segment sales	110,160			89,791			293,291			247,285
Corporate and Other:
Sales to external customers	586			561			2,216			2,040
Intersegment sales	1,328			—			2,594			—
Corporate and Other sales	1,914			561			4,810			2,040
Eliminations	(55,071		)	(44,812		)	(146,889		)	(129,141		)
Consolidated sales	$	384,014		$	357,876		$	1,108,328		$	1,050,457
Operating Income (Loss)
Upholstery segment	$	33,022		$	31,479		$	94,656		$	86,103
Casegoods segment	1,768			860			6,092			5,380
Retail segment	8,834			4,202			19,279			8,199
Restructuring	(78		)	771			(430		)	1,118
Corporate and Other	(8,762		)	(10,384		)	(31,453		)	(27,189		)
Consolidated operating income	34,784			26,928			88,144			73,611
Interest expense	120			131			365			408
Interest income	204			232			573			667
Income from Continued Dumping and Subsidy Offset Act, net	102			—			102			—
Other income (expense), net	(93		)	805			2,387			699
Income from continuing operations before income taxes	$	34,877		$	27,834		$	90,841		$	74,569