Acquisitions

6 Months Ended

Oct. 27, 2012

Acquisitions [Abstract]

Acquisitions

Note 2: Acquisitions

In the second quarter of fiscal 2013, we acquired the assets of La-Z-Recliner Shops, Inc., an independent operator of nine La-Z-Boy Furniture Galleries® stores and one distribution center in the southern Ohio market, for $17.4 million comprised of cash and the forgiveness of accounts payable.  The nine stores were included in our Retail segment results upon acquisition.

Prior to this acquisition, we had licensed the exclusive right to own and operate La-Z-Boy Furniture Galleries®  stores in the southern Ohio market to La-Z-Recliner Shops, Inc.  The effective settlement of this arrangement resulted in no settlement gain or loss as the contractual terms were at market.  As a result of the acquisition we have reacquired this right (a part of which was the associated trademarks and tradename) to own and operate La-Z-Boy Furniture Galleries® stores in the southern Ohio market.  We have recorded an indefinite-lived intangible asset of $2.2 million related to this reacquired right.  We have also recognized $12.8 million of goodwill, which primarily relates to the expected synergies resulting from the integration of the acquired stores and the anticipated future benefits.  The goodwill and other intangible assets were recorded in the Retail segment and will be amortized and deducted for federal income tax purposes over 15 years.

The purchase price allocations were based on fair values at the date of acquisition and are summarized in the following table:

	As of
(Unaudited, amounts in thousands)	10/1/12
Current assets	$	4,260
Goodwill and other intangible assets		14,982
Net property, plant, and equipment		368
Total assets acquired		19,610
Current liabilities		(2,199	)
Net assets acquired	$	17,411

The impact of this acquisition on our results of operations was not material, and as such, pro forma financial information is not required.