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 155 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				Nine Months Ended
(Unaudited, amounts in thousands)	1/26/2019		1/27/2018		1/26/2019		1/27/2018
Sales
Upholstery segment:
Sales to external customers	$	265,487	$	262,874	$	759,569	$	739,429
Intersegment sales		68,961		58,084		185,370		160,697
Upholstery segment sales		334,448		320,958		944,939		900,126

Casegoods segment:
Sales to external customers		23,129		23,887		73,774		68,821
Intersegment sales		4,936		3,328		14,054		11,969
Casegoods segment sales		28,065		27,215		87,828		80,790

Retail segment sales		159,417		125,815		418,331		353,068

Corporate and Other:
Sales to external customers		19,549		1,062		39,936		2,604
Intersegment sales		3,300		2,818		9,156		6,839
Corporate and Other sales		22,849		3,880		49,092		9,443

Eliminations		(77,197)		(64,230)		(208,580)		(179,505)
Consolidated sales	$	467,582	$	413,638	$	1,291,610	$	1,163,922

	Quarter Ended				Nine Months Ended
(Unaudited, amounts in thousands)	1/26/2019		1/27/2018		1/26/2019		1/27/2018
Operating Income (Loss)
Upholstery segment	$	34,566	$	31,699	$	90,602	$	88,422
Casegoods segment		3,332		2,792		10,173		8,833
Retail segment		14,158		7,076		25,179		12,746
Corporate and Other		(11,213)		(8,472)		(33,451)		(26,339)
Consolidated operating income		40,843		33,095		92,503		83,662
Interest expense		(538)		(113)		(1,143)		(430)
Interest income		540		444		1,534		1,163
Other income (expense), net		(941)		(1,094)		(2,046)		(271)
Income before income taxes	$	39,904	$	32,332	$	90,848	$	84,124