Segment Information

9 Months Ended

Jan. 26, 2013

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 11 primary markets. During the second quarter of fiscal 2013, we acquired nine La-Z-Boy Furniture Galleries® stores in the southern Ohio market 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.

	Third Quarter Ended						Nine Months Ended
(Unaudited, amounts in thousands)	1/26/13			1/28/12			1/26/13			1/28/12
Sales
Upholstery segment:
Sales to external customers	$	245,365		$	222,265		$	684,214		$	633,479
Intersegment sales		34,622			27,083			93,402			74,731
Upholstery segment sales		279,987			249,348			777,616			708,210
Casegoods segment:
Sales to external customers		30,496			32,735			95,841			100,255
Intersegment sales		2,115			1,493			5,907			4,047
Casegoods segment sales		32,611			34,228			101,748			104,302
Retail segment sales		72,772			58,387			191,089			159,912
VIEs, net of intercompany sales eliminations		—			2,737			—			8,840
Corporate and Other		515			391			1,845			1,802
Eliminations		(36,737	)		(28,576	)		(99,308	)		(78,778	)
Consolidated sales	$	349,148		$	316,515		$	972,990		$	904,288
Operating Income (Loss)
Upholstery segment	$	28,375		$	22,603		$	65,743		$	54,721
Casegoods segment		200			1,840			2,381			4,359
Retail segment		2,668			(646	)		105			(6,707	)
VIEs		—			596			—			959
Restructuring		(30	)		(56	)		(2,716	)		(222	)
Corporate and Other		(7,935	)		(7,317	)		(24,046	)		(20,369	)
Consolidated operating income	$	23,278		$	17,020		$	41,467		$	32,741