Note 12: Segment Information

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

Upholstery Segment. Our Upholstery reportable segment is our largest business segment and consists primarily of two operating segments: La-Z-Boy, our largest operating segment, and the operating segment for our England subsidiary. The Upholstery segment also includes our international wholesale businesses. We aggregate these operating segments into one reportable segment because they are economically similar and because they meet the other aggregation criteria for determining reportable segments. 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 one operating segment that sells furniture under three brands: American Drew®, Hammary®, and Kincaid®. The 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. 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. Our Retail segment consists of one operating segment comprised of our 157 company-owned La-Z-Boy Furniture Galleries® stores. The Retail segment sells primarily upholstered furniture, in addition to some casegoods and other accessories, to end consumers through these stores.

Corporate & Other. Corporate & Other includes the shared costs for corporate functions, including human resources, information technology, finance and legal, in addition to revenue generated through royalty agreements with companies licensed to use the La-Z-Boy® brand name on various products. We consider our corporate functions to be other business activities and have aggregated them with our other insignificant operating segments including our global trading company in Hong Kong and Joybird, an e-commerce retailer that manufactures upholstered furniture such as sofas, loveseats, chairs, ottomans, sleeper sofas and beds, and also imports casegoods (wood) furniture such as occasional tables and other accessories. Joybird sells to the end consumer exclusively online through its website, www.joybird.com. None of the operating segments included in Corporate & Other meet the requirements of reportable segments.


	Quarter Ended				Six Months Ended
(Unaudited, amounts in thousands)	10/27/18		10/28/17		10/27/18		10/28/17
Sales
Upholstery segment:
Sales to external customers	$	254,028	$	251,741	$	494,082	$	476,555
Intersegment sales		63,065		53,020		116,409		102,613
Upholstery segment sales		317,093		304,761		610,491		579,168

Casegoods segment:
Sales to external customers		26,242		23,915		50,645		44,934
Intersegment sales		5,135		4,150		9,118		8,641
Casegoods segment sales		31,377		28,065		59,763		53,575

Retail segment sales		139,686		116,737		258,914		227,253

Corporate and Other:
Sales to external customers		19,377		812		20,387		1,542
Intersegment sales		3,001		2,091		5,856		4,021
Corporate and Other sales		22,378		2,903		26,243		5,563

Eliminations		(71,201)		(59,261)		(131,383)		(115,275)
Consolidated sales	$	439,333	$	393,205	$	824,028	$	750,284

	Quarter Ended				Six Months Ended
(Unaudited, amounts in thousands)	10/27/18		10/28/17		10/27/18		10/28/17
Operating Income (Loss)
Upholstery segment	$	32,152	$	33,424	$	56,036	$	56,723
Casegoods segment		3,761		3,302		6,841		6,041
Retail segment		6,563		3,903		11,021		5,670
Corporate and Other		(13,976)		(6,360)		(22,238)		(17,867)
Consolidated operating income		28,500		34,269		51,660		50,567
Interest expense		(501)		(160)		(605)		(317)
Interest income		392		376		994		719
Other income (expense), net		(1,997)		(926)		(1,105)		823
Income before income taxes	$	26,394	$	33,559	$	50,944	$	51,792