Revenue Recognition

6 Months Ended

Oct. 26, 2019

Revenue from Contract with Customer [Abstract]

Our revenue is primarily derived from product sales. We report product sales net of discounts and recognize them when control (rights and obligations associated with the product) passes to the customer. For sales to furniture retailers or distributors, control typically transfers when we ship product. In cases where we sell directly to the end consumer, control of the product is generally transferred upon delivery.

For shipping and handling activities, we have elected to apply the accounting policy election permitted in ASC 606-10-25-18B, which allows an entity to account for shipping and handling activities as fulfillment activities (rather than as a promised good or service) when the activities are performed even if those activities are performed after the control of the good has been transferred. We expense shipping and handling costs at the time we recognize revenue in accordance with this election.

For sales tax, we elected to apply the accounting policy election permitted in ASC 606-10-32-2A, which allows an entity to exclude from the measurement of the transaction price all taxes imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer, including sales, use, excise, value-added, and franchise taxes (collectively referred to as sales taxes). This allows us to present revenue net of these certain types of taxes.

The following table presents our revenue disaggregated by product category and by segment or unit:



	Quarter Ended October 26, 2019
(Unaudited, amounts in thousands)	Upholstery		Casegoods			Retail		Corporate and Other			Total
Motion Upholstery Furniture	$	197,219	$	—		$	84,455	$	—		$	281,674
Stationary Upholstery Furniture	97,761		4,598			33,805		27,431			163,595
Bedroom Furniture	—		8,746			1,549		1,776			12,071
Dining Room Furniture	—		6,270			2,397		446			9,113
Occasional Furniture	388		11,546			5,455		497			17,886
Other (1)	25,487		(1,770		)	20,743		(5,839		)	38,621
Total	$	320,855	$	29,390		$	148,404	$	24,311		$	522,960

			Eliminations								(75,748		)
			Consolidated Net Sales								$	447,212

	Quarter Ended October 27, 2018
	Upholstery		Casegoods			Retail		Corporate and Other			Total
Motion Upholstery Furniture	$	202,168	$	—		$	85,735	$	—		$	287,903
Stationary Upholstery Furniture	92,246		4,429			25,701		23,695			146,071
Bedroom Furniture	—		8,234			1,450		2,460			12,144
Dining Room Furniture	—		6,406			2,613		819			9,838
Occasional Furniture	418		13,723			5,067		490			19,698
Other (1)	22,261		(1,415		)	19,120		(5,086		)	34,880
Total	$	317,093	$	31,377		$	139,686	$	22,378		$	510,534

			Eliminations								(71,201		)
			Consolidated Net Sales								$	439,333


(1)	Primarily includes revenue for delivery, advertising, royalties, parts, accessories, after-treatment products, tariff surcharges, discounts & allowances, rebates and other sales incentives.



	Six Months Ended October 26, 2019
(Unaudited, amounts in thousands)	Upholstery		Casegoods			Retail		Corporate and Other			Total
Motion Upholstery Furniture	$	376,741	$	—		$	169,639	$	—		$	546,380
Stationary Upholstery Furniture	185,270		8,742			62,958		50,383			307,353
Bedroom Furniture	—		16,939			2,996		2,958			22,893
Dining Room Furniture	—		11,675			4,996		840			17,511
Occasional Furniture	700		22,369			10,580		858			34,507
Other (1)	51,560		(3,200		)	40,231		(10,176		)	78,415
Total	$	614,271	$	56,525		$	291,400	$	44,863		$	1,007,059

			Eliminations								(146,214		)
			Consolidated Net Sales								$	860,845

	Six Months Ended October 27, 2018
	Upholstery		Casegoods			Retail		Corporate and Other			Total
Motion Upholstery Furniture	$	389,827	$	—		$	160,692	$	—		$	550,519
Stationary Upholstery Furniture	177,536		8,371			48,865		23,695			258,467
Bedroom Furniture	—		16,598			2,305		2,460			21,363
Dining Room Furniture	—		12,335			4,196		819			17,350
Occasional Furniture	811		25,711			9,041		490			36,053
Other (1)	42,317		(3,252		)	33,815		(1,221		)	71,659
Total	$	610,491	$	59,763		$	258,914	$	26,243		$	955,411

			Eliminations								(131,383		)
			Consolidated Net Sales								$	824,028


(1)	Primarily includes revenue for delivery, advertising, royalties, parts, accessories, after-treatment products, tariff surcharges, discounts & allowances, rebates and other sales incentives.

Motion Upholstery Furniture - Includes gross revenue for upholstered furniture, such as recliners, sofas, loveseats, chairs, sectionals and modulars that have a mechanism that allows the back of the product to recline or the product's footrest to extend. This gross revenue includes sales to La-Z-Boy Furniture Galleries^® stores (including company-owned stores), operators of La-Z-Boy Comfort Studio^® locations, England Custom Comfort Center locations, other major dealers, independent retailers, and the end consumer.

Stationary Upholstery Furniture - Includes gross revenue for upholstered furniture, such as sofas, loveseats, chairs, sectionals, modulars, and ottomans that do not have a mechanism. This gross revenue includes sales to La-Z-Boy Furniture Galleries^® stores (including company-owned stores), operators of La-Z-Boy Comfort Studio^® locations, England Custom Comfort Center locations, other major dealers, independent retailers, and the end consumer.

Bedroom Furniture - Includes gross revenue for casegoods furniture typically found in a bedroom, such as beds, chests, dressers, nightstands and benches. This gross revenue includes sales to La-Z-Boy Furniture Galleries^® stores (including company-owned stores), independent retailers, and the end consumer.

Dining Room Furniture - Includes gross revenue for casegoods furniture typically found in a dining room, such as dining tables, dining chairs, storage units and stools. This gross revenue includes sales to La-Z-Boy Furniture Galleries^® stores (including company-owned stores), independent retailers, and the end consumer.

Occasional Furniture - Includes gross revenue for casegoods furniture found throughout the home, such as cocktail tables, chairsides, sofa tables, end tables, and entertainment centers. This gross revenue includes sales to La-Z-Boy Furniture Galleries^® stores (including company-owned stores), independent retailers, and the end consumer.

At October 26, 2019, our consolidated balance sheet includes current assets of $20.2 million that we reported as other receivables. These other receivables represent the remaining consideration to which we are entitled prior to fulfilling our performance obligation. At the beginning of fiscal 2020, we had $17.0 million of other receivables.

We receive customer deposits from end consumers before we recognize revenue and in some cases we have the unconditional right to collect the remaining portion of the order price before we fulfill our performance obligation, resulting in deferred revenue (collectively, the “contract liabilities”). At October 26, 2019, we included $55.7 million of customer deposits and $20.2 million of deferred revenues in accrued expenses and other current liabilities on our consolidated balance sheet. At the beginning of fiscal 2020, we had $42.8 million of customer deposits and $17.0 million of deferred revenues. During the quarter and six months ended October 26, 2019 we recognized revenue of $1.9 million and $54.5 million, respectively, related to our contract liability balance at April 27, 2019.

We have elected the practical expedient permitted in ASC 606-10-32-18, which allows an entity to recognize the promised amount of consideration without adjusting for the effects of a significant financing component if the contract has a duration of one year or less. As our contracts typically are less than one year in length and do not have significant financing components, we have not adjusted consideration.