Segment Information

6 Months Ended

Oct. 28, 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 147 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						Six Months Ended
(Unaudited, amounts in thousands)	10/28/17			10/29/16			10/28/17			10/29/16
Sales
Upholstery segment:
Sales to external customers	$	251,741		$	244,898		$	476,555		$	468,707
Intersegment sales	53,020			50,891			102,613			94,498
Upholstery segment sales	304,761			295,789			579,168			563,205
Casegoods segment:
Sales to external customers	23,915			23,567			44,934			44,152
Intersegment sales	4,150			2,321			8,641			6,774
Casegoods segment sales	28,065			25,888			53,575			50,926
Retail segment sales	116,737			107,365			227,253			203,085
Corporate and Other:
Sales to external customers	812			749			1,542			1,418
Intersegment sales	2,091			1,563			4,021			2,773
Corporate and Other sales	2,903			2,312			5,563			4,191
Eliminations	(59,261		)	(54,775		)	(115,275		)	(104,045		)
Consolidated sales	$	393,205		$	376,579		$	750,284		$	717,362

	Quarter Ended						Six Months Ended
(Unaudited, amounts in thousands)	10/28/17			10/29/16			10/28/17			10/29/16
Operating Income (Loss)
Upholstery segment	$	33,424		$	38,220		$	56,723		$	68,719
Casegoods segment	3,302			2,847			6,041			4,994
Retail segment	3,903			3,007			5,670			5,190
Corporate and Other	(6,360		)	(10,216		)	(17,867		)	(22,587		)
Consolidated operating income	34,269			33,858			50,567			56,316
Interest expense	160			117			317			232
Interest income	376			234			719			438
Gain on conversion of investment	—			—			2,204			—
Other income (expense), net	(926		)	(969		)	(1,381		)	(1,731		)
Income before income taxes	$	33,559		$	33,006		$	51,792		$	54,791