Note 11: Segment Information

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

Upholstery Segment. Our Upholstery reportable segment is our largest business segment and consists primarily of two operating segments: La-Z-Boy, our largest operating segment, and the operating segment for our England subsidiary. The Upholstery segment also includes our international wholesale businesses. We aggregate these operating segments into one reportable segment because they are economically similar and because they meet the other aggregation criteria for determining reportable segments. Our Upholstery segment manufactures and imports upholstered furniture such as 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 La-Z-Boy Comfort Studio® locations and England Custom Comfort Center locations, major dealers, and a wide cross-section of other independent retailers.

Casegoods Segment. Our Casegoods segment consists of one operating segment that sells furniture under three brands: American Drew, Hammary, and Kincaid. The Casegoods segment is an importer, marketer, and distributor of casegoods (wood) furniture such as bedroom sets, dining room sets, entertainment centers and occasional pieces, and also manufactures some 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. Our Retail segment consists of one operating segment which includes our 147 company-owned La-Z-Boy Furniture Galleries® stores. The Retail segment primarily sells upholstered furniture, in addition to some casegoods and other accessories, to end consumers through these stores.

	Quarter Ended
(Unaudited, amounts in thousands)	7/28/18			7/29/17
Sales
Upholstery segment:
Sales to external customers	$	240,054		$	224,814
Intersegment sales	53,344			49,593

Upholstery segment sales	293,398			274,407


Casegoods segment:
Sales to external customers	24,403			21,019
Intersegment sales	3,983			4,491

Casegoods segment sales	28,386			25,510


Retail segment sales	119,228			110,516

Corporate and Other:
Sales to external customers	1,010			730
Intersegment sales	2,855			1,930

Corporate and Other sales	3,865			2,660


Eliminations	(60,182		)	(56,014		)

Consolidated sales	$	384,695		$	357,079


Operating Income (Loss)
Upholstery segment	$	23,884		$	23,299
Casegoods segment	3,080			2,739
Retail segment	4,458			1,767
Corporate and Other	(8,262		)	(11,507		)

Consolidated operating income	23,160			16,298
Interest expense	104			157
Interest income	602			343
Other income (expense), net	892			1,749

Income before income taxes	$	24,550		$	18,233