Segment Information

12 Months Ended

Apr. 27, 2013

Segment Information [Abstract]

Segment Information

Note 16: 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 94 company-owned La-Z-Boy Furniture Galleries® stores in 11 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, in addition to some casegoods and other accessories, to the end consumer 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 write-downs 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.

We have no customer that individually represents more than 3% of our consolidated or Upholstery segment's sales or more than 1% of our Casegoods segment's sales in fiscal 2013.

The accounting policies of the operating segments are the same as those described in Note 1. We account for intersegment revenue transactions between our segments consistent with independent third party transactions, that is, at current market prices. As a result, the manufacturing profit related to sales to our Retail segment is included within the appropriate Upholstery or Casegoods segment. Operating income realized on intersegment revenue transactions is therefore generally consistent with the operating income realized on our revenue from independent third party transactions. Segment operating income is based on profit or loss from operations before interest expense, other income (expense) and income taxes. Identifiable assets are cash and equivalents, notes and accounts receivable, net inventories, net property, plant and equipment, goodwill and other intangible assets. Our unallocated assets include deferred income taxes, corporate assets (including a portion of cash and equivalents), and various other assets. Sales are attributed to countries on the basis of the customer's location.

(Amounts in thousands)	4/27/2013			4/28/2012			4/30/2011
Sales
Upholstery segment:
Sales to external customers	$	939,736		$	871,511		$	831,603
Intersegment sales		127,311			103,592			85,264
Upholstery segment sales		1,067,047			975,103			916,867
Casegoods segment:
Sales to external customers		125,753			133,479			147,539
Intersegment sales		8,241			6,160			4,995
Casegoods segment sales		133,994			139,639			152,534
Retail segment sales		264,723			215,490			176,987
VIEs, net of intercompany sales eliminations		—			8,840			29,105
Corporate and Other		2,313			2,356			1,909
Eliminations		(135,552	)		(109,752	)		(90,259	)
Consolidated sales	$	1,332,525		$	1,231,676		$	1,187,143

Operating Income (Loss)
Upholstery segment	$	96,762		$	81,753		$	72,743
Casegoods segment		2,640			5,540			6,698
Retail segment		4,099			(7,819	)		(15,078	)
VIEs		—			959			(4,949	)
Restructuring		(2,715	)		(281	)		(487	)
Write-down of long-lived assets		—			—			(4,471	)
Corporate and Other		(33,159	)		(30,521	)		(28,547	)
Consolidated operating income	$	67,627		$	49,631		$	25,909
Depreciation and Amortization
Upholstery segment	$	14,452		$	12,696		$	13,260
Casegoods segment		1,338			1,575			1,655
Retail segment		2,676			2,832			3,174
VIEs		—			149			942
Corporate and Other		4,674			6,234			5,271
Consolidated depreciation and amortization	$	23,140		$	23,486		$	24,302

(Amounts in thousands)	4/27/2013			4/28/2012			4/30/2011
Capital Expenditures
Upholstery segment	$	10,385		$	7,406		$	5,510
Casegoods segment		1,058			897			689
Retail segment		4,251			1,848			141
VIEs		—			543			395
Corporate and Other		10,218			4,969			3,805
Consolidated capital expenditures	$	25,912		$	15,663		$	10,540
Assets
Upholstery segment	$	296,108		$	303,537		$	305,363
Casegoods segment		70,147			73,888			76,724
Retail segment		73,496			49,818			46,773
VIEs		—			—			5,022
Unallocated assets		280,620			258,496			159,573
Consolidated assets	$	720,371		$	685,739		$	593,455
Long-Lived Assets by Geographic Location
Domestic	$	133,208		$	114,979		$	119,445
International		8,168			8,345			10,418
Consolidated long-lived assets	$	141,376		$	123,324		$	129,863
Sales by Country
United States		87	%		87	%		87	%
Canada		8	%		8	%		9	%
Other		5	%		5	%		4	%
Total		100	%		100	%		100	%