Segment Information

3 Months Ended

Jul. 29, 2017

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. Our Upholstery segment is our largest business segment and consists primarily of two operating units: La-Z-Boy, our largest operating unit, and our England subsidiary. The Upholstery segment also includes our international wholesale businesses. Our Upholstery segment manufactures and imports upholstered furniture such as 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. Our Casegoods segment consists of three brands: American Drew, Hammary, and Kincaid. 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. Our Casegoods segment is an importer, marketer, and distributor of casegoods/wood furniture such as bedroom sets, dining room sets, entertainment centers and occasional pieces, and also manufactures some coordinated upholstered furniture.

Retail Segment. Our Retail segment consists of 145 company-owned La-Z-Boy Furniture Galleries® stores. The Retail segment primarily sells upholstered furniture, in addition to some casegoods and other accessories, to end consumers through these stores.

	Quarter Ended
(Unaudited, amounts in thousands)	7/29/17			7/30/16
Sales
Upholstery segment:
Sales to external customers	$	224,814		$	223,809
Intersegment sales	49,593			43,607
Upholstery segment sales	274,407			267,416
Casegoods segment:
Sales to external customers	21,019			20,585
Intersegment sales	4,491			4,453
Casegoods segment sales	25,510			25,038
Retail segment sales	110,516			95,720
Corporate and Other:
Sales to external customers	730			669
Intersegment sales	1,930			1,210
Corporate and Other sales	2,660			1,879
Eliminations	(56,014		)	(49,270		)
Consolidated sales	$	357,079		$	340,783

	Quarter Ended
(Unaudited, amounts in thousands)	7/29/17			7/30/16
Operating Income (Loss)
Upholstery segment	$	23,299		$	30,499
Casegoods segment	2,739			2,147
Retail segment	1,767			2,183
Corporate and Other	(11,507		)	(12,371		)
Consolidated operating income	16,298			22,458
Interest expense	157			115
Interest income	343			204
Other income (expense), net	1,749			(762		)
Income before income taxes	$	18,233		$	21,785