Segment Information

6 Months Ended

Oct. 29, 2016

Segment Information

Segment Information

Note 9: 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 132 company-owned La-Z-Boy Furniture Galleries® stores. The Retail segment sells upholstered furniture, and some casegoods and other accessories, to end consumers through these stores.

	Quarter Ended						Six Months Ended
(Unaudited, amounts in thousands)	10/29/16			10/24/15			10/29/16			10/24/15
Sales
Upholstery segment:
Sales to external customers	$	244,898		$	260,080		$	468,707		$	492,564
Intersegment sales	50,891			45,737			94,498			85,929
Upholstery segment sales	295,789			305,817			563,205			578,493
Casegoods segment:
Sales to external customers	23,567			25,787			44,152			46,989
Intersegment sales	2,321			2,432			6,774			4,623
Casegoods segment sales	25,888			28,219			50,926			51,612
Retail segment sales	107,365			96,480			203,085			183,131
Corporate and Other:
Sales to external customers	749			544			1,418			1,630
Intersegment sales	1,563			750			2,773			1,266
Corporate and Other sales	2,312			1,294			4,191			2,896
Eliminations	(54,775		)	(48,919		)	(104,045		)	(91,818		)
Consolidated sales	$	376,579		$	382,891		$	717,362		$	724,314
Operating Income (Loss)
Upholstery segment	$	37,530		$	37,040		$	67,339		$	61,634
Casegoods segment	2,847			2,634			4,994			4,324
Retail segment	3,007			5,716			5,190			10,445
Corporate and Other	(10,216		)	(11,996		)	(22,587		)	(23,043		)
Consolidated operating income	33,168			33,394			54,936			53,360
Interest expense	117			133			232			245
Interest income	234			164			438			369
Other income (expense), net	(279		)	512			(351		)	2,480
Income before income taxes	$	33,006		$	33,937		$	54,791		$	55,964