Segment Information

3 Months Ended

Jul. 25, 2015

Segment Information

Segment Information

Note 10: Segment Information

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

Upholstery Segment. The Upholstery segment mainly consists of two operating units: La-Z-Boy and England. This segment manufactures and 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 Studio® and England Custom Comfort Center locations, major dealers and a wide cross-section of other independent retailers.

Casegoods Segment. The Casegoods segment consists of three brands: American Drew, Hammary, and Kincaid. This segment sells imported wood furniture to furniture retailers. Casegoods product includes bedroom, dining room, entertainment centers, occasional pieces and some manufactured coordinated upholstered furniture. The Casegoods segment sells directly to major dealers, as well as La-Z-Boy Furniture Galleries® stores, and a wide cross-section of other independent retailers.

Retail Segment. The Retail segment consists of 111 company-owned La-Z-Boy Furniture Galleries® stores. The Retail segment sells upholstered furniture, and some casegoods and other accessories, to end consumers through the retail network.

	Quarter Ended
(Unaudited, amounts in thousands)	7/25/15			7/26/14
Sales
Upholstery segment:
Sales to external customers	$	232,484		$	227,156
Intersegment sales	40,192			35,703
Upholstery segment sales	272,676			262,859
Casegoods segment:
Sales to external customers	21,202			25,953
Intersegment sales	2,191			2,970
Casegoods segment sales	23,393			28,923
Retail segment sales	86,651			72,905
Corporate and Other:
Sales to external customers	1,086			966
Intersegment sales	516			—
Corporate and Other sales	1,602			966
Eliminations	(42,899		)	(38,673		)
Consolidated sales	$	341,423		$	326,980
Operating Income (Loss)
Upholstery segment	$	24,594		$	22,017
Casegoods segment	1,690			1,525
Retail segment	4,729			315
Restructuring	(165		)	357
Corporate and Other	(10,882		)	(7,723		)
Consolidated operating income		19,966			16,491
Interest expense	112			132
Interest income	205			202
Other income (expense), net	1,968			(258		)
Income from continuing operations before income taxes	$	22,027		$	16,303