Segment Information

12 Months Ended

Apr. 28, 2012

Segment Information

Note 14: 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, ottomans and sleeper sofas. The Upholstery segment sells directly to La-Z-Boy Furniture Galleries ® stores, operators of Comfort Studios, 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, accent pieces and some coordinated upholstered furniture. The Casegoods segment sells to major dealers and other independent retailers. 

Retail Segment. The Retail segment consists of 85 company-owned La-Z-Boy Furniture Galleries® stores in nine primary markets. The Retail segment sells upholstered furniture, as well as some casegoods and other accessories, to end consumers through the retail network.

We have no customer that individually represents more than 3% of our consolidated or Upholstery segment’s sales or more than 6% of our Casegoods segment’s sales in fiscal 2012.

The accounting policies of the operating segments are the same as those described in Note 1. 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, and trade names. 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)	4/28/2012			4/30/2011			4/24/2010
Sales
Upholstery Segment	$	975,103		$	916,867		$	904,871
Casegoods Segment		139,639			152,534			146,706
Retail Segment		215,490			176,987			153,620
VIEs, net of intercompany sales eliminations		8,840			29,105			53,173
Corporate and Other		2,356			1,909			4,583
Eliminations		(109,752	)		(90,259	)		(83,741	)
Consolidated Sales	$	1,231,676		$	1,187,143		$	1,179,212
Operating Income (Loss)
Upholstery Segment	$	81,753		$	72,743		$	95,732
Casegoods Segment		5,540			6,698			(243	)
Retail Segment		(7,819	)		(15,078	)		(19,825	)
VIEs		959			(4,949	)		(751	)
Corporate and Other		(30,802	)		(29,034	)		(34,485	)
Write-down of long-lived assets		—			(4,471	)		—
Consolidated Operating Income	$	49,631		$	25,909		$	40,428
Depreciation and Amortization
Upholstery Segment	$	12,696		$	13,260		$	13,817
Casegoods Segment		1,575			1,655			1,770
Retail Segment		2,832			3,174			3,308
VIEs		149			942			2,078
Corporate and Other		6,234			5,271			4,273
Consolidated Depreciation and Amortization	$	23,486		$	24,302		$	25,246
Capital Expenditures
Upholstery Segment	$	7,406		$	5,510		$	7,088
Casegoods Segment		897			689			1,468
Retail Segment		1,848			141			106
VIEs		543			395			692
Corporate and Other		4,969			3,805			1,632
Consolidated Capital Expenditures	$	15,663		$	10,540		$	10,986
Assets
Upholstery Segment	$	303,537		$	305,363		$	344,776
Casegoods Segment		73,888			76,724			73,393
Retail Segment		49,818			46,773			50,984
VIEs		—			5,022			26,961
Unallocated Assets		258,496			159,573			111,669
Consolidated Assets	$	685,739		$	593,455		$	607,783
Long-Lived Assets by Geographic Location
Domestic	$	114,979		$	119,445		$	135,066
International		8,345			10,418			15,529
Consolidated Long-Lived Assets	$	123,324		$	129,863		$	150,595
Sales by Country
United States		87	%		87	%		88	%
Canada		8	%		9	%		9	%
Other		5	%		4	%		3	%
Total		100	%		100	%		100	%