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Segment Information | 12 Months Ended
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Apr. 27, 2019
Segment Information |
Segment Information | Note 17: 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, 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 comprising our 156 company-owned La-Z-Boy Furniture Galleries® stores. The Retail segment sells primarily upholstered furniture, in addition to some casegoods and other accessories, to end consumers through these stores. Corporate & Other. Corporate & Other includes the shared costs for corporate functions, including human resources, information technology, finance and legal, in addition to revenue generated through royalty agreements with companies licensed to use the La-Z-Boy® brand name on various products. We consider our corporate functions to be other business activities and have aggregated them with our other insignificant operating segments including our global trading company in Hong Kong and Joybird, an e-commerce retailer that manufactures and sells upholstered furniture such as sofas, loveseats, chairs, ottomans, sleeper sofas and beds, and also imports and sells casegoods (wood) furniture such as occasional tables and other accessories. Joybird sells to the end consumer almost exclusively online through its website, www.joybird.com. None of the operating segments included in Corporate & Other meet the requirements of reportable segments. 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, interest income, 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.
|  | Fiscal Year Ended
|  | (52 weeks) |  | (52 weeks) |  | (52 weeks)
(Amounts in thousands) |  | 4/27/2019 |  | 4/28/2018 |  | 4/29/2017
Sales |  |  |  |  |  |  |  |  |
Upholstery segment: |  |  |  |  |  |  |  |  |
Sales to external customers |  | $ | 1,016,957 |  | $ | 1,010,097 |  | $ | 986,917
Intersegment sales |  |  | 251,285 |  |  | 217,266 |  |  | 204,526
Upholstery segment sales |  |  | 1,268,242 |  |  | 1,227,363 |  |  | 1,191,443
Casegoods segment: |  |  |  |  |  |  |  |  |
Sales to external customers |  |  | 95,677 |  |  | 95,919 |  |  | 87,181
Intersegment sales |  |  | 18,796 |  |  | 15,474 |  |  | 13,047
Casegoods segment sales |  |  | 114,473 |  |  | 111,393 |  |  | 100,228
Retail segment sales |  |  | 570,201 |  |  | 474,613 |  |  | 443,238
Corporate and Other: |  |  |  |  |  |  |  |  |
Sales to external customers |  |  | 62,566 |  |  | 3,318 |  |  | 2,724
Intersegment sales |  |  | 11,446 |  |  | 9,421 |  |  | 6,437
Corporate and Other sales |  |  | 74,012 |  |  | 12,739 |  |  | 9,161
Eliminations |  |  | (281,527) |  |  | (242,161) |  |  | (224,010)
Consolidated sales |  | $ | 1,745,401 |  | $ | 1,583,947 |  | $ | 1,520,060
Operating Income (Loss) |  |  |  |  |  |  |  |  |
Upholstery segment |  | $ | 127,906 |  | $ | 130,349 |  | $ | 148,996
Casegoods segment |  |  | 12,589 |  |  | 11,641 |  |  | 8,623
Retail segment |  |  | 37,922 |  |  | 20,709 |  |  | 19,205
Corporate and Other |  |  | (48,743) |  |  | (33,330) |  |  | (43,482)
Consolidated operating income |  |  | 129,674 |  |  | 129,369 |  |  | 133,342
Interest expense |  |  | (1,542) |  |  | (538) |  |  | (1,073)
Interest income |  |  | 2,103 |  |  | 1,709 |  |  | 981
Pension termination charge |  |  | (32,671) |  |  | — |  |  | —
Other expense, net |  |  | (2,237) |  |  | (1,650) |  |  | (2,510)
Income before income taxes |  | $ | 95,327 |  | $ | 128,890 |  | $ | 130,740
Depreciation and Amortization |  |  |  |  |  |  |  |  |
Upholstery segment |  | $ | 16,122 |  | $ | 15,823 |  | $ | 14,692
Casegoods segment |  |  | 1,143 |  |  | 993 |  |  | 863
Retail segment |  |  | 4,007 |  |  | 3,758 |  |  | 3,131
Corporate and Other |  |  | 9,875 |  |  | 11,193 |  |  | 10,445
Consolidated depreciation and amortization |  | $ | 31,147 |  | $ | 31,767 |  | $ | 29,131
Capital Expenditures |  |  |  |  |  |  |  |  |  |
Upholstery segment |  | $ | 37,114 |  | $ | 30,049 |  | $ | 13,193 |
Casegoods segment |  |  | 1,949 |  |  | 711 |  |  | 786 |
Retail segment |  |  | 4,604 |  |  | 3,377 |  |  | 2,831 |
Corporate and Other |  |  | 4,766 |  |  | 2,200 |  |  | 3,494 |
Consolidated capital expenditures |  | $ | 48,433 |  | $ | 36,337 |  | $ | 20,304 |
Assets |  |  |  |  |  |  |  |  |  |
Upholstery segment |  | $ | 398,469 |  | $ | 363,864 |  | $ | 357,889 |
Casegoods segment |  |  | 55,295 |  |  | 57,312 |  |  | 53,064 |
Retail segment |  |  | 210,863 |  |  | 177,853 |  |  | 172,601 |
Unallocated assets |  |  | 395,163 |  |  | 293,938 |  |  | 305,301 |
Consolidated assets |  | $ | 1,059,790 |  | $ | 892,967 |  | $ | 888,855 |
Long-Lived Assets by Geographic Location |  |  |  |  |  |  |  |  |  |
Domestic |  | $ | 389,892 |  | $ | 251,778 |  | $ | 239,198 |
International |  |  | 27,529 |  |  | 23,671 |  |  | 23,791 |
Consolidated long-lived assets |  | $ | 417,421 |  | $ | 275,449 |  | $ | 262,989 |
Sales by Country |  |  |  |  |  |  |  |  |  |
United States |  |  | 89 | % |  | 87 | % |  | 88 | %
Canada |  |  | 6 | % |  | 7 | % |  | 7 | %
Other |  |  | 5 | % |  | 6 | % |  | 5 | %
Total |  |  | 100 | % |  | 100 | % |  | 100 | %

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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