Segment Information

6 Months Ended

Oct. 27, 2012

Segment Information [Abstract]

Segment Information

 

Note 9: Segment Information

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

Upholstery Segment.  The Upholstery segment consists of three operating units, La-Z-Boy, England and Bauhaus.  This segment manufactures or imports upholstered furniture. Upholstered furniture includes 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 Comfort Studios® locations, major dealers and other independent retailers.

Casegoods Segment. The Casegoods segment consists of two operating units, one consisting of American Drew, Lea and Hammary, and the second being Kincaid. This segment sells imported or manufactured wood furniture to furniture retailers.  Casegoods product includes bedroom, dining room, entertainment centers, occasional pieces and some coordinated upholstered furniture. The Casegoods segment sells to major dealers and other independent retailers.

Retail Segment. The Retail segment consists of 97 company-owned La-Z-Boy Furniture Galleries® stores in eleven primary markets.  During the second quarter of fiscal 2013, we acquired nine La-Z-Boy Furniture Galleries® stores in southern Ohio that were previously independently owned and operated.  The Retail segment sells upholstered furniture, as well as some casegoods and other accessories, to end consumers through the retail network.

Restructuring. During the second quarter of fiscal 2013, we recorded a restructuring charge of $2.7 million, mainly related to fixed asset and inventory writedowns related to the closure of our lumber processing operation in our Casegoods segment.  As a result of this restructuring, we will no longer process component lumber parts for our domestically produced Casegoods furniture and will instead outsource all component lumber parts.

	Second Quarter Ended						Six Months Ended
(Unaudited, amounts in thousands)	10/27/12			10/29/11			10/27/12			10/29/11
Sales
Upholstery Segment	$	259,462		$	241,400		$	497,629		$	458,862
Casegoods Segment		34,528			35,943			69,137			70,074
Retail Segment		61,198			52,711			118,317			101,525
VIEs, net of intercompany sales eliminations		—			2,762			—			6,103
Corporate and Other		628			817			1,330			1,411
Eliminations		(33,475	)		(25,954	)		(62,571	)		(50,202	)
Consolidated Sales	$	322,341		$	307,679		$	623,842		$	587,773
Operating Income (Loss)
Upholstery Segment	$	21,790		$	20,993		$	37,368		$	32,118
Casegoods Segment		902			1,962			2,181			2,519
Retail Segment		(575	)		(2,683	)		(2,563	)		(6,061	)
VIEs		—			(204	)		—			363
Restructuring		(2,654	)		(50	)		(2,686	)		(166	)
Corporate and Other		(8,900	)		(7,770	)		(16,111	)		(13,052	)
Consolidated Operating Income	$	10,563		$	12,248		$	18,189		$	15,721