Segment Information

9 Months Ended

Jan. 27, 2018

Segment Information

Segment Information

Note 13: 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						Nine Months Ended
(Unaudited, amounts in thousands)	1/27/18			1/28/17			1/27/18			1/28/17
Sales
Upholstery segment:
Sales to external customers	$	262,874		$	246,650		$	739,429		$	715,357
Intersegment sales	58,084			56,273			160,697			150,771
Upholstery segment sales	320,958			302,923			900,126			866,128
Casegoods segment:
Sales to external customers	23,887			20,499			68,821			64,651
Intersegment sales	3,328			2,760			11,969			9,534
Casegoods segment sales	27,215			23,259			80,790			74,185
Retail segment sales	125,815			122,121			353,068			325,206
Corporate and Other:
Sales to external customers	1,062			722			2,604			2,140
Intersegment sales	2,818			1,978			6,839			4,751
Corporate and Other sales	3,880			2,700			9,443			6,891
Eliminations	(64,230		)	(61,011		)	(179,505		)	(165,056		)
Consolidated sales	$	413,638		$	389,992		$	1,163,922		$	1,107,354

	Quarter Ended						Nine Months Ended
(Unaudited, amounts in thousands)	1/27/18			1/28/17			1/27/18			1/28/17
Operating Income (Loss)
Upholstery segment	$	31,699		$	35,669		$	88,422		$	104,388
Casegoods segment	2,792			1,593			8,833			6,587
Retail segment	7,076			6,325			12,746			11,515
Corporate and Other	(8,472		)	(10,015		)	(26,339		)	(32,602		)
Consolidated operating income	33,095			33,572			83,662			89,888
Interest expense	113			562			430			794
Interest income	444			241			1,163			679
Income from Continued Dumping and Subsidy Offset Act, net	—			273			—			273
Gain on conversion of investment	—			—			2,204			—
Other income (expense), net	(1,094		)	(52		)	(2,475		)	(1,783		)
Income before income taxes	$	32,332		$	33,472		$	84,124		$	88,263