Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Jan. 26, 2019	Feb. 12, 2019
Document and Entity Information
Entity Registrant Name	LA-Z-BOY INC
Entity Central Index Key	0000057131
Current Fiscal Year End Date	--04-27
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		46,659,480
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jan. 26, 2019

CONSOLIDATED STATEMENT OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
CONSOLIDATED STATEMENT OF INCOME
Sales	$ 467,582	$ 413,638	$ 1,291,610	$ 1,163,922
Cost of sales	277,712	251,140	778,813	707,369
Gross profit	189,870	162,498	512,797	456,553
Selling, general and administrative expense	149,027	129,403	420,294	372,891
Operating income	40,843	33,095	92,503	83,662
Interest expense	(538)	(113)	(1,143)	(430)
Interest income	540	444	1,534	1,163
Other income (expense), net	(941)	(1,094)	(2,046)	(271)
Income before income taxes	39,904	32,332	90,848	84,124
Income tax expense	10,730	20,047	22,374	36,889
Net income	29,174	12,285	68,474	47,235
Net income attributable to noncontrolling interests	(443)	(176)	(1,428)	(579)
Net income attributable to La-Z-Boy Incorporated	$ 28,731	$ 12,109	$ 67,046	$ 46,656
Basic weighted average common shares (in shares)	46,820	47,234	46,808	47,852
Basic net income attributable to La-Z-Boy Incorporated per share (in dollars per share)	$ 0.61	$ 0.26	$ 1.43	$ 0.97
Diluted weighted average common shares (in shares)	47,091	47,757	47,212	48,325
Diluted net income attributable to La-Z-Boy Incorporated per share (in dollars per share)	$ 0.61	$ 0.25	$ 1.42	$ 0.96
Dividends declared per share (in dollars per share)	$ 0.13	$ 0.12	$ 0.37	$ 0.34

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Net income	$ 29,174	$ 12,285	$ 68,474	$ 47,235
Other comprehensive income (loss)
Currency translation adjustment	1,469	3,585	(1,552)	5,754
Change in fair value of cash flow hedges, net of tax	70	445	(108)	182
Net unrealized gain on marketable securities, net of tax	90	109	154	46
Net pension amortization, net of tax	515	552	1,548	1,586
Total other comprehensive income	2,144	4,691	42	7,568
Total comprehensive income before allocation to noncontrolling interests	31,318	16,976	68,516	54,803
Comprehensive income attributable to noncontrolling interests	(1,112)	(865)	(1,488)	(1,773)
Comprehensive income attributable to La-Z-Boy Incorporated	$ 30,206	$ 16,111	$ 67,028	$ 53,030

CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands	Jan. 26, 2019	Apr. 28, 2018
Current assets
Cash and equivalents	$ 101,579	$ 134,515
Restricted cash	2,003	2,356
Receivables, net of allowance of $2,762 at 1/26/19 and $1,956 at 4/28/18	149,526	154,055
Inventories, net	219,211	184,841
Other current assets	75,086	42,451
Total current assets	547,405	518,218
Property, plant and equipment, net	195,680	180,882
Goodwill	184,717	75,254
Other intangible assets, net	30,274	18,190
Deferred income taxes - long-term	21,231	21,265
Other long-term assets, net	82,149	79,158
Total assets	1,061,456	892,967
Current liabilities
Short-term borrowings	20,000
Current portion of long-term debt	205	223
Accounts payable	72,421	62,403
Accrued expenses and other current liabilities	176,277	118,721
Total current liabilities	268,903	181,347
Long-term debt	47	199
Other long-term liabilities	120,720	86,205
Contingencies and commitments
Shareholders' equity
Preferred shares - 5,000 authorized; none issued
Common shares, $1 par value - 150,000 authorized; 46,730 outstanding at 1/26/19 and 46,788 outstanding at 4/28/18	46,730	46,788
Capital in excess of par value	306,896	298,948
Retained earnings	330,491	291,644
Accumulated other comprehensive loss	(26,854)	(25,199)
Total La-Z-Boy Incorporated shareholders' equity	657,263	612,181
Noncontrolling interests	14,523	13,035
Total equity	671,786	625,216
Total liabilities and equity	$ 1,061,456	$ 892,967

CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jan. 26, 2019	Apr. 28, 2018
Current assets
Receivables, allowance (in dollars)	$ 2,762	$ 1,956
Shareholders' equity
Preferred shares, authorized (in shares)	5,000	5,000
Preferred shares, issued (in shares)	0	0
Common shares, par value (in dollars per share)	$ 1	$ 1
Common shares, authorized (in shares)	150,000	150,000
Common shares, outstanding (in shares)	46,730	46,788

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018
Cash flows from operating activities
Net income	$ 68,474	$ 47,235
Adjustments to reconcile net income to cash provided by (used for) operating activities
(Gain)/ Loss on disposal of assets	41	(1,849)
Gain on conversion of investment		(2,204)
Change in deferred taxes	2,538	10,543
Provision for doubtful accounts	477	198
Depreciation and amortization	23,182	23,671
Equity-based compensation expense	8,174	7,929
Pension plan contributions	(7,000)	(2,000)
Change in receivables	1,152	5,057
Change in inventories	(18,950)	(9,142)
Change in other assets	(10,103)	(3,304)
Change in payables	4,954	12,529
Change in other liabilities	18,509	2,537
Net cash provided by operating activities	91,448	91,200
Cash flows from investing activities
Proceeds from disposals of assets	447	620
Proceeds from property insurance	154	1,807
Capital expenditures	(35,766)	(24,138)
Purchases of investments	(14,956)	(24,124)
Proceeds from sales of investments	14,304	17,109
Acquisitions, net of cash acquired	(78,582)	(16,495)
Net cash used for investing activities	(114,399)	(45,221)
Cash flows from financing activities
Net proceeds from credit facility	20,000
Payments on debt	(169)	(203)
Payments for debt issuance costs		(220)
Stock issued for stock and employee benefit plans, net of shares withheld for taxes	4,012	1,418
Purchases of common stock	(16,726)	(46,074)
Dividends paid	(17,381)	(16,343)
Net cash used for financing activities	(10,264)	(61,422)
Effect of exchange rate changes on cash and equivalents	(74)	2,204
Change in cash, cash equivalents and restricted cash	(33,289)	(13,239)
Cash, cash equivalents and restricted cash at beginning of period	136,871	150,859
Cash, cash equivalents and restricted cash at end of period	103,582	137,620
Supplemental disclosure of non-cash investing activities
Capital expenditures included in payables	$ 2,827	$ 3,926

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands	Common Shares	Capital in Excess of Par Value	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Non-Controlling Interests	Total
Balance at Apr. 29, 2017	$ 48,472	$ 289,632	$ 284,698	$ (32,883)	$ 11,186	$ 601,105
Increase (Decrease) in Stockholders' Equity
Net income			80,866		729	81,595
Other comprehensive income (loss)				7,684	1,120	8,804
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax	311	4,046	(1,380)			2,977
Purchase of 1,995 shares and 555 shares of common stock for the year ended April 28, 2018 and nine months ended January 26, 2019 respectively	(1,995)	(4,204)	(50,531)			(56,730)
Stock option and restricted stock expense		9,474				9,474
Dividends paid			(22,009)			(22,009)
Balance at Apr. 28, 2018	46,788	298,948	291,644	(25,199)	13,035	625,216
Increase (Decrease) in Stockholders' Equity
Net income			67,046		1,428	68,474
Other comprehensive income (loss)				(18)	60	42
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax	497	5,701	(2,186)			4,012
Purchase of 1,995 shares and 555 shares of common stock for the year ended April 28, 2018 and nine months ended January 26, 2019 respectively	(555)	(5,927)	(10,244)			(16,726)
Stock option and restricted stock expense		8,174				8,174
Cumulative effect adjustment for investments, net of tax \| ASU 2016-01 - Investments			1,637	(1,637)
Dividends paid			(17,381)			(17,381)
Dividends declared not paid			(25)			(25)
Balance at Jan. 26, 2019	$ 46,730	$ 306,896	$ 330,491	$ (26,854)	$ 14,523	$ 671,786

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - shares	9 Months Ended	12 Months Ended
	Jan. 26, 2019	Apr. 28, 2018
Common Shares
Shares purchased	555	1,995

Basis of Presentation	9 Months Ended
Basis of Presentation	Jan. 26, 2019
Basis of Presentation
Basis of Presentation	Note 1: Basis of Presentation The accompanying consolidated financial statements include the consolidated accounts of La-Z-Boy Incorporated and our majority-owned subsidiaries. We derived the April 28, 2018, balance sheet from our audited financial statements. We prepared the interim financial information in conformity with generally accepted accounting principles, which we applied on a basis consistent with those reflected in our fiscal 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission, but the information does not include all of the disclosures required by generally accepted accounting principles. In management’s opinion, the interim financial information includes all adjustments and accruals, consisting only of normal recurring adjustments (except as otherwise disclosed), that are necessary for a fair statement of results for the respective interim periods. The interim results reflected in the accompanying financial statements are not necessarily indicative of the results of operations that will occur for the full fiscal year ending April 27, 2019. At January 26, 2019, we owned preferred shares of two privately-held companies, both of which are variable interest entities. We also hold a warrant to purchase common shares of one of these companies. We have not consolidated the results of either of these companies in our financial statements because we do not have the power to direct those activities that most significantly impact the economic performance of either of these companies and, therefore, are not the primary beneficiary. Accounting pronouncements adopted in fiscal 2019 In May 2014, the Financial Accounting Standards Board ("FASB") issued a new accounting standard that requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new standard supersedes virtually all existing authoritative accounting guidance on revenue recognition and requires additional disclosures and greater use of estimates and judgments. During July 2015, the FASB deferred the effective date of the revenue recognition standard by one year, thus making the new accounting standard effective beginning with our fiscal 2019. We adopted the new standard in the first quarter of fiscal 2019 with modified retrospective application. We reviewed substantially all of our contracts and other revenue streams and determined that while the application of the new standard did not have a material change in the amount of or timing for recognizing revenue, it did have a significant impact on our financial statement disclosures related to disaggregated revenue, customer deposits, other receivables and contract liabilities, as well as the presentation of other receivables and deferred revenues (contract liabilities) on our consolidated balance sheet. See Note 11 for information on these disclosures. In January 2016, the FASB issued a new accounting standard that requires equity investments to be measured at fair value with the fair value changes to be recognized through net income. This standard does not apply to investments that are accounted for using the equity method of accounting or that result in consolidation of the invested entity. As of April 28, 2018, we held equity investments subject to this new standard and recognized changes in the fair value of these equity investments through other comprehensive income (loss) as unrealized gains (losses). We adopted the new standard in the first quarter of fiscal 2019 and consequently reclassified $2.1 million of net unrealized gains from accumulated other comprehensive income to retained earnings as a cumulative-effect adjustment during the first quarter of fiscal 2019. We also reclassified $0.5 million of tax expense related to these investments from accumulated other comprehensive loss to retained earnings. We will recognize the tax impact for these investments in the consolidated statement of income as the unrealized gains (losses) become realized. See Note 6 for additional information on our current investments. In October 2016, the FASB issued a new accounting standard that requires entities to recognize the income tax consequences of an intra-entity transfer of assets other than inventory when the transfer occurs. We adopted this standard in the first quarter of fiscal 2019. Adoption of this standard did not impact our current practices because intra-entity transfers, as the standard defines them, did not occur in the first nine months of fiscal 2019. In January 2017, the FASB issued a new accounting standard clarifying the definition of a business with the objective of adding guidance to entities evaluating whether a transaction should be accounted for as an acquisition. We adopted this standard in the first quarter of fiscal 2019. Adoption of this standard did not change the accounting treatment of acquisitions completed during fiscal 2019. In January 2017, the FASB issued a new accounting standard simplifying the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. An entity should now perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. We are required to adopt this standard by our fiscal 2021, but the standard permits us to adopt it early. We have elected to adopt this standard in fiscal 2019, and we will perform our goodwill impairment test in the fourth quarter of fiscal 2019. We do not believe that adoption of this standard will have a material impact on our consolidated financial statements or disclosures. In August 2018, the FASB issued a new accounting standard that aligns the accounting for implementation costs in hosting arrangements that are service contracts with accounting for implementation costs on internal-use software. The standard allows certain implementation costs in specified phases of the project to be capitalized and expensed over the term of the hosting arrangement. We are required to adopt this standard by our fiscal 2021, but the standard permits early adoption in any interim period. We elected to adopt this standard beginning with our second quarter of fiscal 2019. We have not capitalized any costs to date related to the implementation of hosting arrangements, but we anticipate capitalizing costs in the future. We do not expect the capitalization of these costs to have a material impact on our consolidated financial statements and related disclosures. Accounting pronouncements not yet adopted In February 2016, the FASB issued a new accounting standard requiring lessees to record all operating leases on their balance sheet. Under this standard, the lessee is required to record an asset for the right to use the underlying asset for the lease term and a corresponding liability for the contractual lease payments. This standard will be effective beginning with our fiscal 2020. We are currently reviewing our leases and gathering the necessary information to adopt this standard when it becomes effective. We anticipate that adopting this standard will have a material impact on our consolidated balance sheet as we have a significant number of operating leases. In June 2016, the FASB issued a new accounting standard that amends current guidance on other-than-temporary impairments of available-for-sale debt securities. This new standard requires the use of an allowance to record estimated credit losses on these assets when the fair value is below the amortized cost of the asset. This standard also removes the evaluation of the length of time that a security has been in a loss position to avoid recording a credit loss. We are required to adopt this standard for our fiscal 2021 and apply it through a cumulative-effect adjustment to retained earnings. We do not believe that adoption of this standard will have a material impact on our consolidated financial statements based on the volume of available-for-sale debt securities that we currently hold. In August 2017, the FASB issued a new accounting standard designed to improve and simplify the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. This standard is intended to better align the recognition and presentation of the effects of hedging instruments with the hedged item in the financial statements, and requires additional disclosures on hedging instruments. This standard will be effective for our fiscal 2020. As of January 26, 2019, we do not have any outstanding hedging relationships or instruments that would be affected by this standard. The Tax Cut and Jobs Act of 2017 (the “Tax Act”) required corporations to adjust deferred taxes to reflect the reduction of the corporate income tax rate, leaving items within accumulated other comprehensive income stranded at the historical tax rate. In February 2018, the FASB issued a new accounting standard that allows corporations in their consolidated financial statements to reclassify these stranded income tax effects from accumulated other comprehensive income to retained earnings. This standard will be effective for our fiscal 2020, and companies are permitted to adopt it in any interim period. Companies are to apply the standard either in the period they adopt or retrospectively to each period that was affected by the Tax Act’s change in the federal corporate tax rate. We are still assessing the impact this standard will have on our consolidated financial statements and related disclosures. In August 2018, the FASB issued a new accounting standard that modifies the disclosure requirements for fair value measurements. The standard removes certain disclosures for transfers between levels in the fair value hierarchy and the valuation processes for Level 3 measurements. The standard adds disclosure requirements for unrealized gains/losses included in other comprehensive income related to Level 3 fair value measurements, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This standard will be effective for our fiscal 2021, with early adoption permitted. We do not believe these changes will have a significant impact on our financial statement disclosures. In August 2018, the FASB issued a new accounting standard that modifies the disclosure requirements for defined benefit pension or other postretirement obligations. The standard removes certain disclosures that are no longer considered cost beneficial, clarifies the requirements of certain other disclosures, and adds new disclosure requirements. This standard will be effective for our fiscal 2022, with early adoption permitted. We maintain a defined benefit pension plan for eligible factory hourly employees at our La-Z-Boy operating unit. This plan is closed to new participants, and as of December 31, 2018, active participants no longer continue to earn service credit. We intend to terminate this defined benefit pension plan in the fourth quarter of fiscal 2019 through a combination of lump-sum payments to eligible participants who elect to receive them, and through the purchase of annuity contracts from one or more yet-to-be-identified highly rated insurance companies, as discussed in Note 7. Due to the planned termination of our defined benefit pension plan, we do not believe these accounting standard changes will have a significant impact on our financial statement disclosures, especially given the termination of our defined benefit pension plan which is a large portion of our postretirement disclosures.

Acquisitions

9 Months Ended

Jan. 26, 2019

Acquisitions

Acquisitions

Note 2: Acquisitions

Retail segment acquisitions

On August 15, 2018 and September 30, 2018, respectively, we acquired the assets of two independent operators of La-Z-Boy Furniture Galleries® stores: one that operated nine stores and two warehouses in Arizona and one that operated one store in Massachusetts, for an aggregate $42.8 million, including $38.9 million of cash, $2.6 million of forgiveness of accounts receivable, and $1.3 million of guaranteed future payments. We will pay the guaranteed future payments as they are due, with the last payment being completed in the second quarter of fiscal 2022. These acquisitions are an integral part of our ongoing strategy to grow our company-owned retail business and leverage our integrated retail model where we earn a combined profit on both the wholesale and retail sides of the business.

Prior to our retail acquisitions, we licensed the exclusive right to own and operate La-Z-Boy Furniture Galleries® stores (and to use the associated trademarks and trade name) in those markets to the dealers whose assets we acquired, and we reacquired these rights when we purchased the dealers' other assets. The reacquired rights are indefinite-lived because our Retailer Agreements are perpetual agreements that have no specific expiration date and no renewal options. A Retailer Agreement remains in effect as long as the independent retailer is not in default under the terms of the agreement. The effective settlement of these arrangements resulted in no settlement gain or loss as the contractual terms were at market. We recorded an indefinite-lived intangible asset of $6.6 million related to these reacquired rights. We also recognized $32.0 million of goodwill in fiscal 2019 related primarily to synergies we expect from the integration of the acquired stores and future benefits of these synergies. For federal income tax purposes, we will amortize and appropriately deduct all of the indefinite-lived intangible assets and goodwill assets over 15 years.

We based the purchase price allocations on fair values at the dates of acquisition, and summarize them in the following table:


	Second quarter
	fiscal 2019
(Unaudited, amounts in thousands)	acquisitions
Fair value of consideration:
Cash	$	38,904
Forgiveness of accounts receivable		2,610
Guaranteed future payments		1,300
Total fair value of consideration		42,814

Amounts recognized for identifiable assets acquired and liabilities assumed:
Inventory		10,491
Other current assets		4,194
Property, plant and equipment		929
Indefinite-lived reacquired rights		6,600
Other long-term assets		183
Customer deposits		(6,515)
Other current liabilities		(5,055)
Total identifiable net assets acquired		10,827

Goodwill	$	31,987

All acquired stores were included in our Retail segment results upon acquisition.

Corporate and Other acquisitions

On July 30, 2018, we completed our acquisition of Stitch Industries, Inc. ("Joybird"), an e-commerce retailer and manufacturer of upholstered furniture, for guaranteed cash payments of $75 million, which was subject to a working capital adjustment of $2.5 million which we received during the third quarter of fiscal 2019 from amounts placed in escrow at the time of the closing of the transaction. We acquired Joybird, a leading e-commerce retailer and manufacturer of upholstered furniture, to better position us for growth in the online selling environment and increase our visibility with millennial and Gen X consumers, while simultaneously leveraging our supply chain assets.

The guaranteed payments include a closing date cash payment of $37.5 million in purchase price consideration, $7.5 million in prepaid compensation, and the assumption of $5.0 million of liabilities that will be paid over the next two years. The remaining $25 million will be paid in annual installments of $5 million over the next five years. The merger agreement also includes two future earn-out opportunities based on Joybird’s financial performance in fiscal 2021 and fiscal 2023.

The $7.5 million of prepaid compensation relates to the retention of the four Joybird founders, now our employees, each of whom will forfeit proportional amounts if one or more of them resign in the two years following the acquisition. We are amortizing the $7.5 million to selling, general & administrative expense over the two-year retention period on a straight-line basis. In addition to the guaranteed cash payments of $75 million, we recorded a contingent consideration liability of $7.5 million, which reflects the provisional fair value of the earn-out opportunities as of the date of acquisition, and a finite-lived intangible asset of $6.4 million, which reflects the provisional fair value of the acquired Joybird® trade name, which we are amortizing to selling, general & administrative expense over its useful life of eight years on a straight-line basis. The undiscounted range of the contingent consideration is zero to $65 million based on sales and profitability of Joybird in fiscal 2021 and fiscal 2023. Subsequent adjustments to the fair value of the contingent consideration will impact selling, general & administrative expense in our consolidated statement of income.

We recorded $78.1 million of goodwill related to the Joybird acquisition, related primarily to synergies we expect from the integration of the acquisition and the anticipated future benefits of these synergies. The finite-lived intangible asset and goodwill asset for Joybird are not deductible for federal income tax purposes.

When we acquired Joybird during the second quarter of fiscal 2019, we based the purchase price allocations on provisional fair values at the date of acquisition . During the third quarter of fiscal 2019, we obtained additional data and have revised certain of our estimates, resulting in the purchase price allocations shown below:


	Second quarter
	fiscal 2019
(Unaudited, amounts in thousands)	acquisitions
Fair value of consideration:
Cash	$	37,482
Guaranteed payment		22,489
Acquisition earn-out		7,500
Assumption of liability		5,000
Working capital adjustment		(2,486)
Total fair value of consideration		69,985

Amounts recognized for assets acquired and liabilities assumed:
Inventory		5,258
Other current assets		3,258
Property, plant and equipment		2,057
Finite-lived tradename		6,400
Other long-term assets		3,175
Accounts payable		(8,222)
Customer deposits		(9,619)
Other current liabilities		(10,306)
Other long-term liabilities		(150)
Total identifiable net liabilities acquired		(8,149)

Goodwill	$	78,134

We included the Joybird acquisition in our other business activities which we report as Corporate and Other results upon acquisition.

None of the above acquisitions were material to our financial position or our results of operations, and, therefore, pro-forma financial information is not presented. In accordance with Accounting Standard Codification Topic 805-10-25-15, the acquirer has a period of time, referred to as the measurement period, to finalize the accounting for a business combination. The measurement period provides companies with a reasonable period of time to determine, among other things, the identifiable assets acquired, liabilities assumed and consideration transferred for the acquisition, or other amount used in measuring goodwill. All of our provisional purchase accounting estimates shown above for both our Retail acquisitions and our acquisition of Joybird are based on the information and data available to us as of the time of the issuance of these financial statements, and are subject to change within the first 12 months of acquisition as we have access to additional data.

Restricted Cash

9 Months Ended

Jan. 26, 2019

Restricted Cash

Restricted Cash

Note 3: Restricted Cash

We have restricted cash on deposit with a bank as collateral for certain letters of credit. All of our letters of credit have maturity dates within the next twelve months, but we expect to renew some of these letters of credit when they mature.


(Unaudited, amounts in thousands)	1/26/2019		1/27/2018
Cash and cash equivalents	$	101,579	$	135,266
Restricted cash		2,003		2,354
Total cash, cash equivalents and restricted cash	$	103,582	$	137,620

Inventories

9 Months Ended

Jan. 26, 2019

Inventories

Inventories

Note 4: Inventories

A summary of inventories is as follows:


(Unaudited, amounts in thousands)	1/26/2019		4/28/2018
Raw materials	$	101,949	$	86,214
Work in process		14,341		12,254
Finished goods		125,731		109,183
FIFO inventories		242,021		207,651
Excess of FIFO over LIFO		(22,810)		(22,810)
Total inventories	$	219,211	$	184,841

Goodwill and Other Intangible Assets

9 Months Ended

Jan. 26, 2019

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Note 5: Goodwill and Other Intangible Assets

We have goodwill in our Retail Segment related to our acquisitions of La-Z-Boy Furniture Galleries® stores. We also have goodwill in our Corporate and Other results related to our acquisition of Joybird. The remainder of our goodwill is related to our previous acquisition of the La-Z-Boy wholesale business in the United Kingdom and Ireland, which we recorded in our Upholstery reportable segment. The following is a roll-forward of goodwill for the nine months ended January 26, 2019:


	Upholstery		Retail		Corporate		Total
(Unaudited, amounts in thousands)	Segment		Segment		and Other		Goodwill
Balance at April 28, 2018	$	12,967	$	62,287	$	—	$	75,254
Acquisitions		—		31,987		78,134		110,121
Translation adjustment		(549)		(109)		—		(658)
Balance at January 26, 2019	$	12,418	$	94,165	$	78,134	$	184,717

Our intangible assets include the indefinite-lived trade name for American Drew®, a brand in our Casegoods segment, and the finite-lived trade name for Joybird®, a brand within Corporate and Other. Indefinite-lived reacquired rights relate to our acquisition of La-Z-Boy Furniture Galleries® stores, and are recorded in our Retail segment. Other intangible assets are primarily acquired customer relationships from our acquisition of the La-Z-Boy wholesale business in the United Kingdom and Ireland, and are recorded in our Upholstery reportable segment. The following is a roll-forward of our intangible assets for the nine months ended January 26, 2019:


	Indefinite-		Finite-		Indefinite-				Total
	Lived		Lived		Lived		Other		Other
	Trade		Trade		Reacquired		Intangible		Intangible
(Unaudited, amounts in thousands)	Names		Names		Rights		Assets		Assets
Balance at April 28, 2018	$	1,155	$	—	$	13,645	$	3,390	$	18,190
Acquisitions		—		6,400		6,600		—		13,000
Amortization		—		(399)		—		(289)		(688)
Translation adjustment		—		—		(81)		(147)		(228)
Balance at January 26, 2019	$	1,155	$	6,001	$	20,164	$	2,954	$	30,274

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Investments

9 Months Ended

Jan. 26, 2019

Investments

Investments

Note 6: Investments

We have current and long-term investments intended to enhance returns on our cash as well as to fund future obligations of our non-qualified defined benefit retirement plan, our executive deferred compensation plan, and our performance compensation retirement plan. We also hold other investments consisting of cost-basis preferred shares of two privately-held companies. Our short-term investments are included in other current assets and our long-term investments are included in other long-term assets on our consolidated balance sheet.

The following summarizes our investments at January 26, 2019, and April 28, 2018:


(Unaudited, amounts in thousands)	1/26/2019		4/28/2018
Short-term investments:
Marketable securities	$	14,580	$	12,926
Held-to-maturity investments		3,384		3,340
Total short-term investments		17,964		16,266

Long-term investments:
Marketable securities		27,726		32,134
Cost basis investments		11,979		10,954
Total long-term investments		39,705		43,088

Total investments	$	57,669	$	59,354

Investments to enhance returns on cash	$	32,229	$	34,359
Investments to fund compensation/retirement plans	$	13,461	$	14,041
Other investments	$	11,979	$	10,954

The following is a summary of the unrealized gains, unrealized losses, and fair value by investment type at January 26, 2019, and April 28, 2018:


At January 26, 2019
	Gross		Gross
(Unaudited, amounts in thousands)	Unrealized Gains		Unrealized Losses		Fair Value
Equity securities	$	1,358	$	(27)	$	18,314
Fixed income		44		(231)		33,702
Other		259		(13)		5,653
Total securities	$	1,661	$	(271)	$	57,669


At April 28, 2018
	Gross		Gross
(Unaudited, amounts in thousands)	Unrealized Gains		Unrealized Losses		Fair Value
Equity securities	$	2,142	$	(39)	$	18,765
Fixed income		29		(418)		36,312
Other		72		—		4,277
Total securities	$	2,243	$	(457)	$	59,354

The following table summarizes sales of marketable securities:


	Quarter Ended				Nine Months Ended
(Unaudited, amounts in thousands)	1/26/2019		1/27/2018		1/26/2019		1/27/2018
Proceeds from sales	$	6,550	$	5,580	$	14,304	$	17,109
Gross realized gains		726		870		811		1,288
Gross realized losses		(261)		(284)		(327)		(512)

At January 26, 2019, the fair value of fixed income marketable securities, classified as available-for-sale securities, by contractual maturity was $14.6 million within one year, $16.9 million within two to five years, $1.4 million within six to ten years, and $0.8 million thereafter.

Employee Benefits

9 Months Ended

Jan. 26, 2019

Employee Benefits

Employee Benefits

Note 7: Employee Benefits

Pension

We maintain a defined benefit pension plan for eligible factory hourly employees at our La-Z-Boy operating units. We also maintain a non-qualified defined benefit retirement plan for certain former salaried employees. Net periodic pension costs for these plans were as follows:


	Quarter Ended				Nine Months Ended
(Unaudited, amounts in thousands)	1/26/2019		1/27/2018		1/26/2019		1/27/2018
Service cost	$	223	$	328	$	869	$	986
Interest cost		1,116		1,147		3,348		3,441
Expected return on plan assets		(1,136)		(1,204)		(3,408)		(3,612)
Net amortization		639		780		1,917		2,340
Net periodic pension cost	$	842	$	1,051	$	2,726	$	3,155

The components of net periodic pension cost other than the service cost are included in other income (expense), net in our consolidated statement of income. Service cost is recorded in cost of sales in our consolidated statement of income.

We intend to terminate our defined benefit pension plan for eligible factory hourly employees in our La-Z-Boy operating unit in the fourth quarter of fiscal 2019. The plan was previously closed to new participants, and as of December 31, 2018, active participants no longer continue to earn service credit. In connection with the termination, we anticipate making $9 - $11 million in additional contributions to the plan using operating cash on-hand. We expect to settle any future obligations under the plan through a combination of lump-sum payments to eligible participants who elect to receive them, and through the purchase of annuity contracts from one or more yet-to-be-identified highly rated insurance companies in the fourth quarter of fiscal 2019. We estimate that we will record an approximate $33 - $38 million total non-cash charge, net of tax, associated with the plan termination during the fourth quarter of fiscal 2019.

Employee Vacation Policy Changes

We enacted changes to our employee vacation policies that became effective on January 1, 2019. Our new vacation policies enhanced the amount of vacation time earned by our employees. Additionally, under these vacation policies, our salary and office hourly employees now accrue vacation in the current calendar year for use in the current calendar year, and any vacation time earned but not used will be forfeited at the end of each calendar year. These changes reduced our salary and office hourly vacation liability and resulted in a one-time non-cash gain of $5.1 million in our consolidated statement of income in the third quarter of fiscal 2019. Of the total $5.1 million gain recorded, $1.3 million was recorded in cost of sales with the remainder recorded in selling, general, and administrative expense. Our factory hourly vacation policies were only changed to enhance the amount of vacation time earned by our employees, with no change to accrual methodologies, and resulted in $0.3 million incremental expense in the third quarter of fiscal 2019, recorded in cost of sales.

Product Warranties

9 Months Ended

Jan. 26, 2019

Product Warranties

Product Warranties

Note 8: Product Warranties

We accrue an estimated liability for product warranties when we recognize revenue on the sale of warranted products. We estimate future warranty claims on new sales based on our historical claims experience and also provide for any additional anticipated future costs on previously sold products. We incorporate repair costs into our liability estimates, including materials, labor and overhead amounts necessary to perform repairs and any costs associated with delivering repaired product to our customers. Over 80% of our warranty liability relates to our Upholstery reportable segment as we generally warrant our products against defects for one year on fabric and leather, from one to ten years on cushions and padding, and provide a limited lifetime warranty on certain mechanisms and frames. Our Upholstery segment warranties cover labor costs relating to our parts for one year. We provide a limited lifetime warranty against defects on a majority of the products sold by Joybird, part of our Corporate and Other results. For all our manufacturer warranties, the warranty period begins when the consumer receives our product. We use considerable judgment in making our estimates, and we record differences between our actual and estimated costs when the differences are known.

A reconciliation of the changes in our product warranty liability is as follows:


	Quarter Ended				Nine Months Ended
(Unaudited, amounts in thousands)	1/26/2019		1/27/2018		1/26/2019		1/27/2018
Balance as of the beginning of the period	$	25,197	$	21,606	$	21,205	$	21,870
Acquisitions		—		—		4,100		—
Accruals during the period		5,660		4,654		16,270		14,155
Settlements during the period		(5,560)		(4,954)		(16,278)		(14,719)
Balance as of the end of the period	$	25,297	$	21,306	$	25,297	$	21,306

As of January 26, 2019, and April 28, 2018, we included $16.7 million and $12.7 million, respectively, of our product warranty liability in accrued expenses and other current liabilities on our consolidated balance sheet, and included the remainder in other long-term liabilities. We recorded accruals during the periods presented in the table above, primarily to reflect charges that relate to warranties issued during the respective periods. The acquired warranty liability reflects our provisional estimate of the acquired warranty liabilities of Joybird on the acquisition date. See Note 2 for further information on our acquisition of Joybird.

Stock-Based Compensation

9 Months Ended

Jan. 26, 2019

Stock-Based Compensation

Stock-Based Compensation

Note 9: Stock-Based Compensation

The table below summarizes the total stock-based compensation expense we recognized for all outstanding grants in our consolidated statement of income:


	Quarter Ended				Nine Months Ended
(Unaudited, amounts in thousands)	1/26/2019		1/27/2018		1/26/2019		1/27/2018
Equity-based awards expense	$	2,495	$	1,519	$	8,174	$	7,929
Liability-based awards expense		144		386		10		694
Total stock-based compensation expense	$	2,639	$	1,905	$	8,184	$	8,623

Stock Options. We granted 423,273 stock options to employees during the first quarter of fiscal 2019, and we have stock options outstanding from previous grants. We account for stock options as equity-based awards because when they are exercised, they will be settled in common shares. We recognize compensation expense for stock options over the vesting period equal to the fair value on the date our compensation committee approved the awards. The vesting period for our stock options ranges from one to four years, with accelerated vesting upon retirement. The vesting date for retirement-eligible employees is the later of the date they meet the criteria for retirement or the end of the fiscal year in which the grant was made. We accelerate the expense for options granted to retirement-eligible employees over the vesting period, with expense recognized from the grant date through their retirement eligibility date or over the ten months following the grant date, whichever period is longer. We estimate forfeiture rates based on our employees’ forfeiture history and believe they will approximate future results. We estimate the fair value of the employee stock options at the date of grant using the Black-Scholes option-pricing model, which requires management to make certain assumptions. We estimate expected volatility based on the historical volatility of our common shares. We base the average expected life on the contractual term of the stock option and expected employee exercise trends. We base the risk-free rate on U.S. Treasury issues with a term equal to the expected life assumed at the date of the grant.

We calculated the fair value of stock options granted during the first quarter of fiscal 2019 using the following assumptions:


	Fiscal 2019
(Unaudited)	grant
Risk-free interest rate		2.82	%
Dividend rate		1.45	%
Expected life in years		5.00
Stock price volatility		33.07	%
Fair value per share	$	9.65

Stock Appreciation Rights (“SARs”). We have not granted any SARs to employees since fiscal 2014, but we have SARs outstanding from the fiscal 2013 and fiscal 2014 grants. All outstanding SARs are fully vested and have a term of ten years. SARs will be paid in cash upon exercise and, accordingly, we account for SARs as liability-based awards that we re-measure to fair value at the end of each reporting period.

In fiscal 2013 and fiscal 2014, we granted SARs as described in our Annual Report on Form 10-K for the fiscal year ended April 27, 2013, and April 26, 2014, respectively. As of January 26, 2019, we had 7,149 and 17,918 SARs outstanding for the fiscal 2013 and fiscal 2014 awards, respectively. These awards have exceeded their expected life and are being re-measured to fair value based on their intrinsic value, which is the market value of our common stock on the last day of the reporting period less the exercise price, until the earlier of the exercise date or the contractual term date. At January 26, 2019, the intrinsic value per share of the fiscal 2013 and fiscal 2014 awards were $17.03 and $9.94, respectively.

Restricted Stock. We granted 109,426 shares of restricted stock to employees during the first nine months of fiscal 2019. We also have shares of restricted stock outstanding from previous grants. We issue restricted stock at no cost to the employees, and the shares are held in an escrow account until the vesting period ends. If a recipient’s employment ends during the escrow period (other than through death or disability), the shares are returned at no cost to the company. We account for restricted stock awards as equity-based awards because when they vest, they will be settled in common shares. The weighted-average fair value of the restricted stock awarded in the first nine months of fiscal 2019 was $32.78 per share, the market value of our common shares on the date of grant. We estimate forfeiture rates based on our employees' forfeiture history and believe they will approximate future results. We recognize compensation expense for restricted stock over the vesting period equal to the fair value on the grant date of the award. Restricted stock awards vest at 25% per year, beginning one year from the grant date over a term of four years.

Restricted Stock Units. During the second quarter of fiscal 2019, we granted 21,240 restricted stock units to our non-employee directors. Each director’s restricted stock units vest when he or she leaves the board. We account for these restricted stock units as equity-based awards because when they vest, they will be settled in shares of our common stock. We measure and recognize compensation expense for these awards based on the market price of our common shares on the date of grant, which was $33.15.

Performance Shares. During the first quarter of fiscal 2019, we granted 146,107 performance-based shares. We also have performance-based share awards outstanding from previous grants. Payout of these grants depends on our financial performance (80%) and a market-based condition based on the total return our shareholders receive on their investment in our stock relative to returns earned through investments in other public companies (20%). The performance share opportunity ranges from 50% of the employee’s target award if minimum performance requirements are met to a maximum of 200% of the target award based on the attainment of certain financial and shareholder-return goals over a specific performance period, which is generally three fiscal years.

We account for performance-based shares as equity-based awards because when they vest, they will be settled in common shares. We estimate forfeiture rates based on our employees' forfeiture history and believe they will approximate future results. For shares that vest based on our results relative to the performance goals, we expense as compensation cost the fair value of the shares as of the day we granted the awards recognized over the performance period, taking into account the probability that we will satisfy the performance goals. The fair value of each share of the awards we granted in fiscal 2019 that vest based on attaining performance goals was $31.71, the market value of our common shares on the date we granted the awards less the dividends we expect to pay before the shares vest. For shares that vest based on market conditions, we use a Monte Carlo valuation model to estimate each share’s fair value as of the date of grant. The Monte Carlo valuation model uses multiple simulations to evaluate our probability of achieving various stock price levels to determine our expected performance ranking relative to our peer group. Similar to the way in which we expense awards of stock options, we expense compensation cost, net of estimated forfeitures, over the vesting period regardless of whether the market condition is ultimately satisfied. Based on the Monte Carlo model, the fair value as of the grant date of the fiscal 2019 grant of shares that vest based on market conditions was $46.39.

Accumulated Other Comprehensive Loss

9 Months Ended

Jan. 26, 2019

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

Note 10: Accumulated Other Comprehensive Loss

The activity in accumulated other comprehensive loss for the quarter ended January 26, 2019, and January 27, 2018, is as follows:


			Change in
			fair value		Unrealized		Net pension		Accumulated
			of cash		gain on		amortization		other
	Translation		flow		marketable		and net		comprehensive
(Unaudited, amounts in thousands)	adjustment		hedge		securities		actuarial loss		loss
Balance at October 27, 2018	$	(24)	$	(24)	$	(197)	$	(28,084)	$	(28,329)
Changes before reclassifications		800		—		72		—		1,385
Amounts reclassified to net income		—		93		48		687		315
Tax effect		—		(23)		(30)		(172)		(225)
Other comprehensive income attributable to La-Z- Boy Incorporated		800		70		90		515		1,475
Balance at January 26, 2019	$	776	$	46	$	(107)	$	(27,569)	$	(26,854)


			Change in
			fair value		Unrealized		Net pension		Accumulated
			of cash		gain on		amortization		other
	Translation		flow		marketable		and net		comprehensive
(Unaudited, amounts in thousands)	adjustment		hedge		securities		actuarial loss		loss
Balance at October 28, 2017	$	737	$	(189)	$	1,689	$	(32,748)	$	(30,511)
Changes before reclassifications		2,896		495		671		—		4,062
Amounts reclassified to net income		—		22		(585)		835		272
Tax effect		—		(72)		23		(283)		(332)
Other comprehensive income attributable to La-Z- Boy Incorporated		2,896		445		109		552		4,002
Balance at January 27, 2018	$	3,633	$	256	$	1,798	$	(32,196)	$	(26,509)

The activity in accumulated other comprehensive loss for the nine months ended January 26, 2019, and January 27, 2018, is as follows:


					Unrealized
			Change in		gain (loss)		Net pension		Accumulated
			fair value		on		amortization		other
	Translation		of cash		marketable		and net		comprehensive
(Unaudited, amounts in thousands)	adjustment		flow hedge		securities		actuarial loss		loss
Balance at April 28, 2018	$	2,388	$	154	$	1,376	$	(29,117)	$	(25,199)
Changes before reclassifications		(1,612)		(369)		175		—		(1,293)
Cumulative effect adjustment for investments (1)		—		—		(1,637)		—		(1,637)
Amounts reclassified to net income		—		225		29		2,059		1,800
Tax effect		—		36		(50)		(511)		(525)
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated		(1,612)		(108)		(1,483)		1,548		(1,655)
Balance at January 26, 2019	$	776	$	46	$	(107)	$	(27,569)	$	(26,854)

(1)

The cumulative effect adjustment for investments is composed of $2.1 million of unrealized gains on equity investments offset by $0.5 million of tax expense. We reclassified the net $1.6 million of cumulative effect adjustment from accumulated other comprehensive loss to retained earnings as a result of adopting Accounting Standards Update 2016-01 (see Note 1 for further information).


			Change in				Net pension
			fair value		Unrealized		amortization		Accumulated
			of cash		gain on		and net		other
	Translation		flow		marketable		actuarial		comprehensive
(Unaudited, amounts in thousands)	adjustment		hedge		securities		loss		loss
Balance at April 29, 2017	$	(927)	$	74	$	1,752	$	(33,782)	$	(32,883)
Changes before reclassifications		4,560		256		1,409		—		6,225
Amounts reclassified to net income		—		(164)		(1,425)		2,506		917
Tax effect		—		90		62		(920)		(768)
Other comprehensive income attributable to La-Z-Boy Incorporated		4,560		182		46		1,586		6,374
Balance at January 27, 2018	$	3,633	$	256	$	1,798	$	(32,196)	$	(26,509)

We reclassified the unrealized gain/(loss) on marketable securities from accumulated other comprehensive loss to net income through other income (expense), net in our consolidated statement of income, reclassified the change in fair value of cash flow hedges to net income through cost of sales, and reclassified the net pension amortization to net income through other income (expense), net.

The components of non-controlling interest for the quarter and nine months ended January 26, 2019, and January 27, 2018, were as follows:


	Quarter Ended				Nine Months Ended
(Unaudited, amounts in thousands)	1/26/2019		1/27/2018		1/26/2019		1/27/2018
Balance as of the beginning of the period	$	13,411	$	12,094	$	13,035	$	11,186
Net income		443		176		1,428		579
Other comprehensive income		669		689		60		1,194
Balance as of the end of the period	$	14,523	$	12,959	$	14,523	$	12,959

Revenue Recognition

9 Months Ended

Jan. 26, 2019

Revenue Recognition

Revenue Recognition

Note 11: Revenue Recognition

We implemented Accounting Standard Update No. 2014-09, Revenue from Contracts with Customers (Accounting Standards Codification Topic 606, “ASC 606”), in the first quarter of fiscal 2019 using the modified-retrospective approach, which required us to apply the new guidance retrospectively to revenue transactions completed on or after the effective date. Adopting this new standard did not have a material impact on our consolidated financial statements except for our enhanced presentation and disclosures. As of the beginning of our fiscal 2019, we had identified and implemented all changes required by the new standard, including those related to our accounting policies, controls, and disclosures.

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 disaggregates our revenue by product category by segment for the quarter ended January 26, 2019:


							Corporate
(Unaudited, amounts in thousands)	Upholstery		Casegoods		Retail		and Other		Total
Motion Upholstery Furniture	$	212,631	$	—	$	100,232	$	—	$	312,863
Stationary Upholstery Furniture		94,551		3,844		27,652		24,096		150,143
Bedroom Furniture		—		7,447		1,586		1,296		10,329
Dining Room Furniture		—		5,733		3,097		610		9,440
Occasional Furniture		391		12,292		5,959		338		18,980
Other (a)		26,875		(1,251)		20,891		(3,491)		43,024
Total	$	334,448	$	28,065	$	159,417	$	22,849		544,779

				Eliminations						(77,197)
				Consolidated Net Sales					$	467,582

(a)

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

The following table disaggregates our revenue by product category by segment for the nine months ended January 26, 2019:


							Corporate
(Unaudited, amounts in thousands)	Upholstery		Casegoods		Retail		and Other		Total
Motion Upholstery Furniture	$	602,458	$	—	$	260,924	$	—	$	863,382
Stationary Upholstery Furniture		272,087		12,215		76,517		47,791		408,610
Bedroom Furniture		—		24,045		3,891		3,756		31,692
Dining Room Furniture		—		18,068		7,293		1,429		26,790
Occasional Furniture		1,202		38,003		15,000		828		55,033
Other (b)		69,192		(4,503)		54,706		(4,712)		114,683
Total	$	944,939	$	87,828	$	418,331	$	49,092		1,500,190

				Eliminations						(208,580)
				Consolidated Net Sales					$	1,291,610

(b)

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.

Our consolidated balance sheet includes current assets of $19.5 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 2019, we had $12.1 million of other receivables.

We receive deposits from end consumers before we recognize revenue, resulting in customer deposits, 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 the beginning of fiscal 2019, we had $31.3 million of customer deposits and $12.1 million of deferred revenues. At January 26, 2019, we included $47.2 million of customer deposits and $19.5 million of deferred revenues in accrued expenses and other current liabilities on our consolidated balance sheet. During the nine months ended January 26, 2019, we recognized $41.5 million of revenue that was recorded as a contract liability at the beginning of fiscal 2019. There was no revenue recognized for the quarter ended January 26, 2019, related to the contract liability at the beginning of fiscal 2019 because virtually all open orders from this period had been delivered prior to the third quarter of fiscal 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.

Segment Information

9 Months Ended

Jan. 26, 2019

Segment Information

Segment Information

Note 12: 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 comprised of our 155 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 upholstered furniture such as sofas, loveseats, chairs, ottomans, sleeper sofas and beds, and also imports casegoods (wood) furniture such as occasional tables and other accessories. Joybird sells to the end consumer exclusively online through its website, www.joybird.com. None of the operating segments included in Corporate & Other meet the requirements of reportable segments.


	Quarter Ended				Nine Months Ended
(Unaudited, amounts in thousands)	1/26/2019		1/27/2018		1/26/2019		1/27/2018
Sales
Upholstery segment:
Sales to external customers	$	265,487	$	262,874	$	759,569	$	739,429
Intersegment sales		68,961		58,084		185,370		160,697
Upholstery segment sales		334,448		320,958		944,939		900,126

Casegoods segment:
Sales to external customers		23,129		23,887		73,774		68,821
Intersegment sales		4,936		3,328		14,054		11,969
Casegoods segment sales		28,065		27,215		87,828		80,790

Retail segment sales		159,417		125,815		418,331		353,068

Corporate and Other:
Sales to external customers		19,549		1,062		39,936		2,604
Intersegment sales		3,300		2,818		9,156		6,839
Corporate and Other sales		22,849		3,880		49,092		9,443

Eliminations		(77,197)		(64,230)		(208,580)		(179,505)
Consolidated sales	$	467,582	$	413,638	$	1,291,610	$	1,163,922

	Quarter Ended				Nine Months Ended
(Unaudited, amounts in thousands)	1/26/2019		1/27/2018		1/26/2019		1/27/2018
Operating Income (Loss)
Upholstery segment	$	34,566	$	31,699	$	90,602	$	88,422
Casegoods segment		3,332		2,792		10,173		8,833
Retail segment		14,158		7,076		25,179		12,746
Corporate and Other		(11,213)		(8,472)		(33,451)		(26,339)
Consolidated operating income		40,843		33,095		92,503		83,662
Interest expense		(538)		(113)		(1,143)		(430)
Interest income		540		444		1,534		1,163
Other income (expense), net		(941)		(1,094)		(2,046)		(271)
Income before income taxes	$	39,904	$	32,332	$	90,848	$	84,124

Income Taxes	9 Months Ended
Income Taxes	Jan. 26, 2019
Income Taxes
Income Taxes	Note 13: Income Taxes Our effective tax rate was 26.9% for the third quarter and 24.6% for the first nine months of fiscal 2019, as compared with 62.0% and 43.9% in the third quarter and first nine months of fiscal 2018, respectively. Our effective tax rate varies from the 21% federal statutory rate primarily due to state taxes. Absent discrete adjustments, our effective tax rate in the third quarter and first nine months of fiscal 2019 would have been 26.7% and 25.6%, respectively. Our fiscal 2018 effective tax rate was higher primarily due to the phasing in of the lower corporate income tax rate resulting in a blended federal rate of 30.4%, as compared to 21% for fiscal 2019, and the revaluation of deferred taxes at the lower corporate income tax rate in fiscal 2018. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law. Most of its provisions are effective for tax years beginning on or after January 1, 2018. Because we are a fiscal year U.S. taxpayer, the majority of the provisions, such as elimination of the domestic manufacturing deduction, new taxes on certain foreign-sourced income and new limitations on certain business deductions, began applying to us in fiscal 2019. In December of 2017, the SEC staff issued SAB 118, which provides that companies that have not completed their accounting for the effects of the Tax Act but can determine a reasonable estimate of those effects should include in their financial statements a provisional amount based on their reasonable estimate. The guidance in SAB 118 also allows companies to adjust the provisional amounts during a one year measurement period similar to the measurement period used when accounting for business combinations. During the third quarter of fiscal 2019, we finalized the provisional estimates of $0.2 million we previously recorded as of the prior year end related to the transition tax, with no material change.

Earnings per Share

9 Months Ended

Jan. 26, 2019

Earnings per Share

Earnings per Share

Note 14: Earnings per Share

Certain share-based compensation awards that entitle their holders to receive non-forfeitable dividends prior to vesting are considered participating securities. Prior to fiscal 2019, we granted restricted stock awards that contained non-forfeitable rights to dividends on unvested shares, and we are required to include these participating securities in calculating our basic earnings per common share, using the two-class method. The restricted stock awards we granted in fiscal 2019 do not have non-forfeitable rights to dividends and therefore are not considered participating securities. The dividends on the restricted stock awards granted in fiscal 2019 are and will continue to be held in escrow until the stock awards vest at which time we will pay any accumulated dividends.

The following is a reconciliation of the numerators and denominators we used in our computations of basic and diluted earnings per share:


	Quarter Ended				Nine Months Ended
(Unaudited, amounts in thousands)	1/26/2019		1/27/2018		1/26/2019		1/27/2018
Numerator (basic and diluted):
Net income attributable to La-Z-Boy Incorporated	$	28,731	$	12,109	$	67,046	$	46,656
Income allocated to participating securities		(92)		(62)		(231)		(234)
Net income available to common shareholders	$	28,639	$	12,047	$	66,815	$	46,422

Denominator:
Basic weighted average common shares outstanding		46,820		47,234		46,808		47,852
Add:
Contingent common shares		131		178		135		176
Stock option dilution		140		345		269		297
Diluted weighted average common shares outstanding		47,091		47,757		47,212		48,325

The values for contingent common shares set forth above reflect the dilutive effect of common shares that we would have issued to employees under the terms of performance-based share awards if the relevant performance period for the award had been the reporting period.

We had outstanding options to purchase 0.4 million shares for the quarter and nine months ended January 26, 2019, with a weighted average exercise price of $33.15. We excluded the effect of these options from our diluted share calculation since the weighted average exercise price of the options was higher than the average market price and including the options’ effect would have been anti-dilutive. We did not exclude any outstanding options from the diluted share calculation for the quarter and nine months ended January 27, 2018.

Fair Value Measurements

9 Months Ended

Jan. 26, 2019

Fair Value Measurements

Fair Value Measurements

Note 15: Fair Value Measurements

Accounting standards require that we put financial assets and liabilities into one of three categories based on the inputs we use to value them:

Level 1 — Financial assets and liabilities the values of which are based on unadjusted quoted market prices for identical assets and liabilities in an active market that we have the ability to access.

Level 2 — Financial assets and liabilities the values of which are based on quoted prices in markets that are not active or on model inputs that are observable for substantially the full term of the asset or liability.

Level 3 — Financial assets and liabilities the values of which are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.

Accounting standards require that in making fair value measurements, we use observable market data when available. When inputs used to measure fair value fall within different levels of the hierarchy, we categorize the fair value measurement as being in the lowest level that is significant to the measurement. We recognize transfers between levels of the fair value hierarchy at the end of the reporting period in which they occur.

In addition to assets and liabilities that we record at fair value on a recurring basis, we are required to record assets and liabilities at fair value on a non-recurring basis. We measure non-financial assets such as other intangible assets, goodwill, and other long-lived assets at fair value when there is an indicator of impairment, and we record them at fair value only when we recognize an impairment loss.

The following table presents the fair value hierarchy for those assets and liabilities we measured at fair value on a recurring basis at January 26, 2019, and April 28, 2018. There were no transfers into or out of Level 1, Level 2, or Level 3 for any of the periods presented.


At January 26, 2019	Fair Value Measurements
(Unaudited, amounts in thousands)	Level 1		Level 2		Level 3
Assets
Marketable securities	$	163	$	34,852	$	—
Held-to-maturity investments		3,384		—		—
Cost basis investments		—		—		11,979
Total assets	$	3,547	$	34,852	$	11,979

Liabilities
Contingent consideration liability	$	—	$	—	$	7,500


At April 28, 2018	Fair Value Measurements
(Unaudited, amounts in thousands)	Level 1		Level 2		Level 3
Assets
Marketable securities	$	1,141	$	37,173	$	—
Held-to-maturity investments		3,340		—		—
Cost basis investment		—		—		10,954
Total assets	$	4,481	$	37,173	$	10,954

Liabilities
Contingent consideration liability	$	—	$	—	$	344

At January 26, 2019, and April 28, 2018, we held marketable securities intended to enhance returns on our cash and to fund future obligations of our non-qualified defined benefit retirement plan, as well as marketable securities to fund future obligations of our executive deferred compensation plan and our performance compensation retirement plan. We also held other fixed income and cost basis investments.

The fair value measurements for our Level 1 and Level 2 securities are based on quoted prices in active markets, as well as through broker quotes and independent valuation providers, multiplied by the number of shares owned exclusive of any transaction costs. At January 26, 2019, our Level 3 investments included preferred shares of two privately-held companies, and a warrant to purchase common shares of one of these privately-held companies. The fair value for our Level 3 investments is not readily available so we estimate the fair value as costs minus impairment, if any, plus or minus adjustments resulting from observable price changes in orderly transactions for identical or similar investments with the same issuer. Our Level 3 liability includes our contingent consideration liabilities on recent acquisitions. We estimated the provisional fair value of the $7.5 million contingent consideration liability for the acquisition of Joybird (see Note 2 for more information). The fair value of contingent consideration is based on future revenues and earnings in fiscal 2021 and fiscal 2023. The fair value was determined using a variation of the income approach, known as the real options method, whereby revenue and earnings were simulated over the earn-out periods in a risk-neutral framework using Geometric Brownian Motion. For each simulation path, the potential earn-out payments were calculated based on management’s probability estimates for achievement of the revenue and earnings milestones and then were discounted to the valuation date using a discount rate of 4.7% for the fiscal 2021 milestone and 5.1% for the fiscal 2023 milestone. We estimated the fair value of the remainder of our Level 3 contingent consideration liabilities using the present value of the probability-weighted future cash flows.

The following table is a reconciliation of our Level 3 assets and liabilities recorded at fair value using significant unobservable inputs:


(Unaudited, amounts in thousands)	Level 3
Assets
Balance at April 28, 2018	$	10,954
Purchases		1,025
Balance at January 26, 2019	$	11,979

Liabilities
Balance at April 28, 2018	$	344
Acquisitions		7,500
Write-off		(326)
Translation adjustment		(18)
Balance at January 26, 2019	$	7,500

Our asset leveling presented above does not include certain marketable securities investments that are measured at fair value using net asset value per share under the practical expedient methodology. These investments are still included in the total fair value column of the table in our investment footnote (see Note 6). The fair value of the investments measured using net asset value at January 26, 2019, and April 28, 2018, was $7.3 million and $6.7 million, respectively.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Acquisitions (Tables)

9 Months Ended

Jan. 26, 2019

Independent dealer assets acquired in fiscal 2019

Summary of fair values at the dates of acquisition


	Second quarter
	fiscal 2019
(Unaudited, amounts in thousands)	acquisitions
Fair value of consideration:
Cash	$	38,904
Forgiveness of accounts receivable		2,610
Guaranteed future payments		1,300
Total fair value of consideration		42,814

Amounts recognized for identifiable assets acquired and liabilities assumed:
Inventory		10,491
Other current assets		4,194
Property, plant and equipment		929
Indefinite-lived reacquired rights		6,600
Other long-term assets		183
Customer deposits		(6,515)
Other current liabilities		(5,055)
Total identifiable net assets acquired		10,827

Goodwill	$	31,987

Joybird

Summary of fair values at the dates of acquisition


	Second quarter
	fiscal 2019
(Unaudited, amounts in thousands)	acquisitions
Fair value of consideration:
Cash	$	37,482
Guaranteed payment		22,489
Acquisition earn-out		7,500
Assumption of liability		5,000
Working capital adjustment		(2,486)
Total fair value of consideration		69,985

Amounts recognized for assets acquired and liabilities assumed:
Inventory		5,258
Other current assets		3,258
Property, plant and equipment		2,057
Finite-lived tradename		6,400
Other long-term assets		3,175
Accounts payable		(8,222)
Customer deposits		(9,619)
Other current liabilities		(10,306)
Other long-term liabilities		(150)
Total identifiable net liabilities acquired		(8,149)

Goodwill	$	78,134

Restricted Cash (Tables)

9 Months Ended

Jan. 26, 2019

Restricted Cash

Schedule of cash, cash equivalents and restricted cash


(Unaudited, amounts in thousands)	1/26/2019		1/27/2018
Cash and cash equivalents	$	101,579	$	135,266
Restricted cash		2,003		2,354
Total cash, cash equivalents and restricted cash	$	103,582	$	137,620

Inventories (Tables)

9 Months Ended

Jan. 26, 2019

Inventories

Summary of inventories


(Unaudited, amounts in thousands)	1/26/2019		4/28/2018
Raw materials	$	101,949	$	86,214
Work in process		14,341		12,254
Finished goods		125,731		109,183
FIFO inventories		242,021		207,651
Excess of FIFO over LIFO		(22,810)		(22,810)
Total inventories	$	219,211	$	184,841

Goodwill and Other Intangible Assets (Tables)

9 Months Ended

Jan. 26, 2019

Goodwill and Other Intangible Assets

Roll-forward of goodwill


	Upholstery		Retail		Corporate		Total
(Unaudited, amounts in thousands)	Segment		Segment		and Other		Goodwill
Balance at April 28, 2018	$	12,967	$	62,287	$	—	$	75,254
Acquisitions		—		31,987		78,134		110,121
Translation adjustment		(549)		(109)		—		(658)
Balance at January 26, 2019	$	12,418	$	94,165	$	78,134	$	184,717

Roll-forward of other intangible assets - Indefinite-lived


	Indefinite-		Finite-		Indefinite-				Total
	Lived		Lived		Lived		Other		Other
	Trade		Trade		Reacquired		Intangible		Intangible
(Unaudited, amounts in thousands)	Names		Names		Rights		Assets		Assets
Balance at April 28, 2018	$	1,155	$	—	$	13,645	$	3,390	$	18,190
Acquisitions		—		6,400		6,600		—		13,000
Amortization		—		(399)		—		(289)		(688)
Translation adjustment		—		—		(81)		(147)		(228)
Balance at January 26, 2019	$	1,155	$	6,001	$	20,164	$	2,954	$	30,274

Roll-forward of other intangible assets - Amortizable


	Indefinite-		Finite-		Indefinite-				Total
	Lived		Lived		Lived		Other		Other
	Trade		Trade		Reacquired		Intangible		Intangible
(Unaudited, amounts in thousands)	Names		Names		Rights		Assets		Assets
Balance at April 28, 2018	$	1,155	$	—	$	13,645	$	3,390	$	18,190
Acquisitions		—		6,400		6,600		—		13,000
Amortization		—		(399)		—		(289)		(688)
Translation adjustment		—		—		(81)		(147)		(228)
Balance at January 26, 2019	$	1,155	$	6,001	$	20,164	$	2,954	$	30,274

Investments (Tables)

9 Months Ended

Jan. 26, 2019

Investments

Summary of investments


(Unaudited, amounts in thousands)	1/26/2019		4/28/2018
Short-term investments:
Marketable securities	$	14,580	$	12,926
Held-to-maturity investments		3,384		3,340
Total short-term investments		17,964		16,266

Long-term investments:
Marketable securities		27,726		32,134
Cost basis investments		11,979		10,954
Total long-term investments		39,705		43,088

Total investments	$	57,669	$	59,354

Investments to enhance returns on cash	$	32,229	$	34,359
Investments to fund compensation/retirement plans	$	13,461	$	14,041
Other investments	$	11,979	$	10,954

Summary of unrealized gains, unrealized losses, and fair value by investment type


At January 26, 2019
	Gross		Gross
(Unaudited, amounts in thousands)	Unrealized Gains		Unrealized Losses		Fair Value
Equity securities	$	1,358	$	(27)	$	18,314
Fixed income		44		(231)		33,702
Other		259		(13)		5,653
Total securities	$	1,661	$	(271)	$	57,669


At April 28, 2018
	Gross		Gross
(Unaudited, amounts in thousands)	Unrealized Gains		Unrealized Losses		Fair Value
Equity securities	$	2,142	$	(39)	$	18,765
Fixed income		29		(418)		36,312
Other		72		—		4,277
Total securities	$	2,243	$	(457)	$	59,354

Summary of sales of marketable securities


	Quarter Ended				Nine Months Ended
(Unaudited, amounts in thousands)	1/26/2019		1/27/2018		1/26/2019		1/27/2018
Proceeds from sales	$	6,550	$	5,580	$	14,304	$	17,109
Gross realized gains		726		870		811		1,288
Gross realized losses		(261)		(284)		(327)		(512)

Employee Benefits (Tables)

9 Months Ended

Jan. 26, 2019

Employee Benefits

Schedule of net periodic pension costs


	Quarter Ended				Nine Months Ended
(Unaudited, amounts in thousands)	1/26/2019		1/27/2018		1/26/2019		1/27/2018
Service cost	$	223	$	328	$	869	$	986
Interest cost		1,116		1,147		3,348		3,441
Expected return on plan assets		(1,136)		(1,204)		(3,408)		(3,612)
Net amortization		639		780		1,917		2,340
Net periodic pension cost	$	842	$	1,051	$	2,726	$	3,155

Product Warranties (Tables)

9 Months Ended

Jan. 26, 2019

Product Warranties

Reconciliation of changes in product warranty liability


	Quarter Ended				Nine Months Ended
(Unaudited, amounts in thousands)	1/26/2019		1/27/2018		1/26/2019		1/27/2018
Balance as of the beginning of the period	$	25,197	$	21,606	$	21,205	$	21,870
Acquisitions		—		—		4,100		—
Accruals during the period		5,660		4,654		16,270		14,155
Settlements during the period		(5,560)		(4,954)		(16,278)		(14,719)
Balance as of the end of the period	$	25,297	$	21,306	$	25,297	$	21,306

Stock-Based Compensation (Tables)

9 Months Ended

Jan. 26, 2019

Stock-Based Compensation

Summary of total stock-based compensation expense


	Quarter Ended				Nine Months Ended
(Unaudited, amounts in thousands)	1/26/2019		1/27/2018		1/26/2019		1/27/2018
Equity-based awards expense	$	2,495	$	1,519	$	8,174	$	7,929
Liability-based awards expense		144		386		10		694
Total stock-based compensation expense	$	2,639	$	1,905	$	8,184	$	8,623

Fair value assumptions for stock options


	Fiscal 2019
(Unaudited)	grant
Risk-free interest rate		2.82	%
Dividend rate		1.45	%
Expected life in years		5.00
Stock price volatility		33.07	%
Fair value per share	$	9.65

Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Jan. 26, 2019

Accumulated Other Comprehensive Loss

Activity in accumulated other comprehensive loss

The activity in accumulated other comprehensive loss for the quarter ended January 26, 2019, and January 27, 2018, is as follows:


			Change in
			fair value		Unrealized		Net pension		Accumulated
			of cash		gain on		amortization		other
	Translation		flow		marketable		and net		comprehensive
(Unaudited, amounts in thousands)	adjustment		hedge		securities		actuarial loss		loss
Balance at October 27, 2018	$	(24)	$	(24)	$	(197)	$	(28,084)	$	(28,329)
Changes before reclassifications		800		—		72		—		1,385
Amounts reclassified to net income		—		93		48		687		315
Tax effect		—		(23)		(30)		(172)		(225)
Other comprehensive income attributable to La-Z- Boy Incorporated		800		70		90		515		1,475
Balance at January 26, 2019	$	776	$	46	$	(107)	$	(27,569)	$	(26,854)


			Change in
			fair value		Unrealized		Net pension		Accumulated
			of cash		gain on		amortization		other
	Translation		flow		marketable		and net		comprehensive
(Unaudited, amounts in thousands)	adjustment		hedge		securities		actuarial loss		loss
Balance at October 28, 2017	$	737	$	(189)	$	1,689	$	(32,748)	$	(30,511)
Changes before reclassifications		2,896		495		671		—		4,062
Amounts reclassified to net income		—		22		(585)		835		272
Tax effect		—		(72)		23		(283)		(332)
Other comprehensive income attributable to La-Z- Boy Incorporated		2,896		445		109		552		4,002
Balance at January 27, 2018	$	3,633	$	256	$	1,798	$	(32,196)	$	(26,509)

The activity in accumulated other comprehensive loss for the nine months ended January 26, 2019, and January 27, 2018, is as follows:


					Unrealized
			Change in		gain (loss)		Net pension		Accumulated
			fair value		on		amortization		other
	Translation		of cash		marketable		and net		comprehensive
(Unaudited, amounts in thousands)	adjustment		flow hedge		securities		actuarial loss		loss
Balance at April 28, 2018	$	2,388	$	154	$	1,376	$	(29,117)	$	(25,199)
Changes before reclassifications		(1,612)		(369)		175		—		(1,293)
Cumulative effect adjustment for investments (1)		—		—		(1,637)		—		(1,637)
Amounts reclassified to net income		—		225		29		2,059		1,800
Tax effect		—		36		(50)		(511)		(525)
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated		(1,612)		(108)		(1,483)		1,548		(1,655)
Balance at January 26, 2019	$	776	$	46	$	(107)	$	(27,569)	$	(26,854)

(1)


			Change in				Net pension
			fair value		Unrealized		amortization		Accumulated
			of cash		gain on		and net		other
	Translation		flow		marketable		actuarial		comprehensive
(Unaudited, amounts in thousands)	adjustment		hedge		securities		loss		loss
Balance at April 29, 2017	$	(927)	$	74	$	1,752	$	(33,782)	$	(32,883)
Changes before reclassifications		4,560		256		1,409		—		6,225
Amounts reclassified to net income		—		(164)		(1,425)		2,506		917
Tax effect		—		90		62		(920)		(768)
Other comprehensive income attributable to La-Z-Boy Incorporated		4,560		182		46		1,586		6,374
Balance at January 27, 2018	$	3,633	$	256	$	1,798	$	(32,196)	$	(26,509)

Components of non-controlling interest


	Quarter Ended				Nine Months Ended
(Unaudited, amounts in thousands)	1/26/2019		1/27/2018		1/26/2019		1/27/2018
Balance as of the beginning of the period	$	13,411	$	12,094	$	13,035	$	11,186
Net income		443		176		1,428		579
Other comprehensive income		669		689		60		1,194
Balance as of the end of the period	$	14,523	$	12,959	$	14,523	$	12,959

Revenue Recognition (Tables)

9 Months Ended

Jan. 26, 2019

Revenue Recognition

Schedule of disaggregation of revenue by product category by segment

The following table disaggregates our revenue by product category by segment for the quarter ended January 26, 2019:


							Corporate
(Unaudited, amounts in thousands)	Upholstery		Casegoods		Retail		and Other		Total
Motion Upholstery Furniture	$	212,631	$	—	$	100,232	$	—	$	312,863
Stationary Upholstery Furniture		94,551		3,844		27,652		24,096		150,143
Bedroom Furniture		—		7,447		1,586		1,296		10,329
Dining Room Furniture		—		5,733		3,097		610		9,440
Occasional Furniture		391		12,292		5,959		338		18,980
Other (a)		26,875		(1,251)		20,891		(3,491)		43,024
Total	$	334,448	$	28,065	$	159,417	$	22,849		544,779

				Eliminations						(77,197)
				Consolidated Net Sales					$	467,582

(a)

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

The following table disaggregates our revenue by product category by segment for the nine months ended January 26, 2019:


							Corporate
(Unaudited, amounts in thousands)	Upholstery		Casegoods		Retail		and Other		Total
Motion Upholstery Furniture	$	602,458	$	—	$	260,924	$	—	$	863,382
Stationary Upholstery Furniture		272,087		12,215		76,517		47,791		408,610
Bedroom Furniture		—		24,045		3,891		3,756		31,692
Dining Room Furniture		—		18,068		7,293		1,429		26,790
Occasional Furniture		1,202		38,003		15,000		828		55,033
Other (b)		69,192		(4,503)		54,706		(4,712)		114,683
Total	$	944,939	$	87,828	$	418,331	$	49,092		1,500,190

				Eliminations						(208,580)
				Consolidated Net Sales					$	1,291,610

(b)

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

Segment Information (Tables)

9 Months Ended

Jan. 26, 2019

Segment Information

Schedule of segment information


	Quarter Ended				Nine Months Ended
(Unaudited, amounts in thousands)	1/26/2019		1/27/2018		1/26/2019		1/27/2018
Sales
Upholstery segment:
Sales to external customers	$	265,487	$	262,874	$	759,569	$	739,429
Intersegment sales		68,961		58,084		185,370		160,697
Upholstery segment sales		334,448		320,958		944,939		900,126

Casegoods segment:
Sales to external customers		23,129		23,887		73,774		68,821
Intersegment sales		4,936		3,328		14,054		11,969
Casegoods segment sales		28,065		27,215		87,828		80,790

Retail segment sales		159,417		125,815		418,331		353,068

Corporate and Other:
Sales to external customers		19,549		1,062		39,936		2,604
Intersegment sales		3,300		2,818		9,156		6,839
Corporate and Other sales		22,849		3,880		49,092		9,443

Eliminations		(77,197)		(64,230)		(208,580)		(179,505)
Consolidated sales	$	467,582	$	413,638	$	1,291,610	$	1,163,922

	Quarter Ended				Nine Months Ended
(Unaudited, amounts in thousands)	1/26/2019		1/27/2018		1/26/2019		1/27/2018
Operating Income (Loss)
Upholstery segment	$	34,566	$	31,699	$	90,602	$	88,422
Casegoods segment		3,332		2,792		10,173		8,833
Retail segment		14,158		7,076		25,179		12,746
Corporate and Other		(11,213)		(8,472)		(33,451)		(26,339)
Consolidated operating income		40,843		33,095		92,503		83,662
Interest expense		(538)		(113)		(1,143)		(430)
Interest income		540		444		1,534		1,163
Other income (expense), net		(941)		(1,094)		(2,046)		(271)
Income before income taxes	$	39,904	$	32,332	$	90,848	$	84,124

Earnings per Share (Tables)

9 Months Ended

Jan. 26, 2019

Earnings per Share

Reconciliation of numerators and denominators used in the computation of basic and diluted earnings per share


	Quarter Ended				Nine Months Ended
(Unaudited, amounts in thousands)	1/26/2019		1/27/2018		1/26/2019		1/27/2018
Numerator (basic and diluted):
Net income attributable to La-Z-Boy Incorporated	$	28,731	$	12,109	$	67,046	$	46,656
Income allocated to participating securities		(92)		(62)		(231)		(234)
Net income available to common shareholders	$	28,639	$	12,047	$	66,815	$	46,422

Denominator:
Basic weighted average common shares outstanding		46,820		47,234		46,808		47,852
Add:
Contingent common shares		131		178		135		176
Stock option dilution		140		345		269		297
Diluted weighted average common shares outstanding		47,091		47,757		47,212		48,325

Fair Value Measurements (Tables)

9 Months Ended

Jan. 26, 2019

Fair Value Measurements

Fair value hierarchy for assets and liabilities measured at fair value on a recurring basis


At January 26, 2019	Fair Value Measurements
(Unaudited, amounts in thousands)	Level 1		Level 2		Level 3
Assets
Marketable securities	$	163	$	34,852	$	—
Held-to-maturity investments		3,384		—		—
Cost basis investments		—		—		11,979
Total assets	$	3,547	$	34,852	$	11,979

Liabilities
Contingent consideration liability	$	—	$	—	$	7,500


At April 28, 2018	Fair Value Measurements
(Unaudited, amounts in thousands)	Level 1		Level 2		Level 3
Assets
Marketable securities	$	1,141	$	37,173	$	—
Held-to-maturity investments		3,340		—		—
Cost basis investment		—		—		10,954
Total assets	$	4,481	$	37,173	$	10,954

Liabilities
Contingent consideration liability	$	—	$	—	$	344

Reconciliation of Level 3 assets recorded at fair value using significant unobservable inputs


(Unaudited, amounts in thousands)	Level 3
Assets
Balance at April 28, 2018	$	10,954
Purchases		1,025
Balance at January 26, 2019	$	11,979

Reconciliation of Level 3 liabilities recorded at fair value using significant unobservable inputs

Liabilities
Balance at April 28, 2018	$	344
Acquisitions		7,500
Write-off		(326)
Translation adjustment		(18)
Balance at January 26, 2019	$	7,500

Basis of Presentation - Variable Interest Entities (Details) - Variable interest entities, not primary beneficiary	Jan. 26, 2019 company
Investments
Preferred share investments, number of privately-held companies	2
Preferred share investments with common share warrant, number of privately-held companies	1

Basis of Presentation - Accounting Pronouncements Adopted (Details) - ASU 2016-01 - Investments $ in Millions	3 Months Ended
	Jul. 28, 2018 USD ($)
Retained Earnings
Accounting pronouncements adopted in fiscal 2019
Reclassification of net unrealized gains, before tax	$ 2.1
Reclassification of tax expense	0.5
Accumulated Other Comprehensive Income (Loss)
Accounting pronouncements adopted in fiscal 2019
Reclassification of net unrealized gains, before tax	(2.1)
Reclassification of tax expense	$ (0.5)

Acquisitions - Retail Segment (Details) $ in Thousands			2 Months Ended
Acquisitions - Retail Segment (Details) $ in Thousands	Sep. 30, 2018 USD ($) store Counterparty	Aug. 15, 2018 store Counterparty warehouse	Sep. 30, 2018 USD ($) store Counterparty	Jan. 26, 2019 USD ($)	Apr. 28, 2018 USD ($)
Amounts recognized for identifiable assets acquired and liabilities assumed:
Goodwill				$ 184,717	$ 75,254
Independent dealer assets acquired in fiscal 2019
Acquisitions
Number of dealers whose assets were acquired \| Counterparty			2
Settlement gain or loss			$ 0
Fair value of consideration:
Cash			38,904
Forgiveness of accounts receivable			2,610
Guaranteed future payments			1,300
Total fair value of consideration			42,814
Amounts recognized for identifiable assets acquired and liabilities assumed:
Inventory	$ 10,491		10,491
Other current assets	4,194		4,194
Property, plant and equipment	929		929
Indefinite-lived reacquired rights	6,600		6,600
Other long-term assets	183		183
Customer deposits	(6,515)		(6,515)
Other current liabilities	(5,055)		(5,055)
Total identifiable net assets (liabilities) acquired	10,827		10,827
Goodwill	$ 31,987		$ 31,987
Independent dealer assets acquired in fiscal 2019 \| Arizona
Acquisitions
Number of dealers whose assets were acquired \| Counterparty		1
Number of stores included in acquisition \| store		9
Number of warehouses included in acquisition \| warehouse		2
Independent dealer assets acquired in fiscal 2019 \| Massachusetts
Acquisitions
Number of dealers whose assets were acquired \| Counterparty	1
Number of stores included in acquisition \| store	1		1

Acquisitions - Corporate and Other (Details) $ in Thousands	Jul. 30, 2018 USD ($) person item	Jan. 26, 2019 USD ($)	Apr. 28, 2018 USD ($)
Amounts recognized for identifiable assets acquired and liabilities assumed:
Goodwill		$ 184,717	$ 75,254
Joybird
Acquisitions
Total guaranteed payments	$ 75,000
Receivable for working capital adjustment	2,500
Prepaid compensation included in guaranteed payments	$ 7,500
Period for payment of liabilities assumed as consideration	2 years
Remaining guaranteed payments	$ 25,000
Annual installments of remaining guaranteed payments	$ 5,000
Period for annual installments of remaining guaranteed payments	5 years
Number of future earnout opportunities \| item	2
Number of co-founders covered by forfeitable initial payment \| person	4
Period for amortization of prepaid compensation	2 years
Finite-lived intangible asset, useful life	8 years
Contingent consideration, low end of range	$ 0
Contingent consideration, high end of range	65,000
Fair value of consideration:
Cash	37,482
Guaranteed payment	22,489
Acquisition earn-out	7,500
Assumption of liability	5,000
Working capital adjustment	(2,486)
Total fair value of consideration	69,985
Amounts recognized for identifiable assets acquired and liabilities assumed:
Inventory	5,258
Other current assets	3,258
Property, plant and equipment	2,057
Finite-lived tradename	6,400
Other long-term assets	3,175
Accounts payable	(8,222)
Customer deposits	(9,619)
Other current liabilities	(10,306)
Other long-term liabilities	(150)
Total identifiable net assets (liabilities) acquired	(8,149)
Goodwill	$ 78,134

Restricted Cash (Details) - USD ($) $ in Thousands	Jan. 26, 2019	Apr. 28, 2018	Jan. 27, 2018	Apr. 29, 2017
Restricted Cash
Cash and cash equivalents	$ 101,579	$ 134,515	$ 135,266
Restricted cash	2,003	2,356	2,354
Total cash, cash equivalents and restricted cash	$ 103,582	$ 136,871	$ 137,620	$ 150,859

Inventories (Details) - USD ($) $ in Thousands	Jan. 26, 2019	Apr. 28, 2018
Inventories
Raw materials	$ 101,949	$ 86,214
Work in process	14,341	12,254
Finished goods	125,731	109,183
FIFO inventories	242,021	207,651
Excess of FIFO over LIFO	(22,810)	(22,810)
Total inventories	$ 219,211	$ 184,841

Goodwill and Other Intangible Assets - Goodwill Roll-forward (Details) $ in Thousands	9 Months Ended
	Jan. 26, 2019 USD ($)
Roll-forward of goodwill
Balance at beginning of period	$ 75,254
Acquisitions	110,121
Translation adjustment	(658)
Balance at end of period	184,717
Upholstery Segment
Roll-forward of goodwill
Balance at beginning of period	12,967
Translation adjustment	(549)
Balance at end of period	12,418
Retail Segment
Roll-forward of goodwill
Balance at beginning of period	62,287
Acquisitions	31,987
Translation adjustment	(109)
Balance at end of period	94,165
Corporate and Other
Roll-forward of goodwill
Acquisitions	78,134
Balance at end of period	$ 78,134

Goodwill and Other Intangible Assets - Intangible Assets (Details) $ in Thousands	9 Months Ended
	Jan. 26, 2019 USD ($)
Roll-forward of other intangible assets
Balance at beginning of period	$ 18,190
Acquisitions	13,000
Amortization	(688)
Translation adjustment	(228)
Balance at end of period	30,274
Trade Names
Roll-forward of other intangible assets
Acquisitions	6,400
Amortization	(399)
Balance at end of period	6,001
Other Intangible Assets
Roll-forward of other intangible assets
Balance at beginning of period	3,390
Amortization	(289)
Translation adjustment	(147)
Balance at end of period	2,954
Trade Names
Roll-forward of other intangible assets
Balance at beginning of period	1,155
Balance at end of period	1,155
Reacquired Rights
Roll-forward of other intangible assets
Balance at beginning of period	13,645
Acquisitions	6,600
Translation adjustment	(81)
Balance at end of period	$ 20,164

Investments - Components (Details) - USD ($) $ in Thousands	Jan. 26, 2019	Apr. 28, 2018
Investments
Total investments	$ 57,669	$ 59,354
Investments to enhance returns on cash
Investments
Total investments	32,229	34,359
Investments to fund compensation/retirement plans
Investments
Total investments	13,461	14,041
Other investments
Investments
Total investments	11,979	10,954
Other current assets
Investments
Marketable securities	14,580	12,926
Held-to-maturity investments	3,384	3,340
Total investments	17,964	16,266
Other long-term assets
Investments
Marketable securities	27,726	32,134
Cost basis investments	11,979	10,954
Total investments	$ 39,705	$ 43,088

Investments - Unrealized Gains and Losses and Fair Value (Details) - USD ($) $ in Thousands	Jan. 26, 2019	Apr. 28, 2018
Summary of investments
Gross Unrealized Gains	$ 1,661	$ 2,243
Gross Unrealized Losses	(271)	(457)
Fair Value	57,669	59,354
Equity securities
Summary of investments
Gross Unrealized Gains	1,358	2,142
Gross Unrealized Losses	(27)	(39)
Fair Value	18,314	18,765
Fixed income
Summary of investments
Gross Unrealized Gains	44	29
Gross Unrealized Losses	(231)	(418)
Fair Value	33,702	36,312
Other
Summary of investments
Gross Unrealized Gains	259	72
Gross Unrealized Losses	(13)
Fair Value	$ 5,653	$ 4,277

- Definition

Fair value portion of investment securities, including, but not limited to, marketable securities, derivative financial instruments, and investments accounted for under the equity method.

+ References + Details

Investments - Sales and Maturities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
Sales of available-for-sale securities
Proceeds from sales	$ 6,550	$ 5,580	$ 14,304	$ 17,109
Gross realized gains	726	870	811	1,288
Gross realized losses	(261)	$ (284)	(327)	$ (512)
Fair value of available-for-sale securities by contractual maturity
Fair value, available-for-sale securities with contractual maturity within one year	14,600		14,600
Fair value, available-for-sale securities with contractual maturity within two to five years	16,900		16,900
Fair value, available-for-sale securities with contractual maturity within six to ten years	1,400		1,400
Fair value, available-for-sale securities with contractual maturity after ten years	$ 800		$ 800

Employee Benefits - Pension (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Apr. 27, 2019	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
Net periodic pension costs
Service cost		$ 223	$ 328	$ 869	$ 986
Interest cost		1,116	1,147	3,348	3,441
Expected return on plan assets		(1,136)	(1,204)	(3,408)	(3,612)
Net amortization		639	780	1,917	2,340
Net periodic pension cost		842	$ 1,051	2,726	$ 3,155
Minimum
Net periodic pension costs
Anticipated additional contributions to the plan		9,000		9,000
Minimum \| Forecast
Net periodic pension costs
Expected non-cash charge, net of tax	$ 33,000
Maximum
Net periodic pension costs
Anticipated additional contributions to the plan		$ 11,000		$ 11,000
Maximum \| Forecast
Net periodic pension costs
Expected non-cash charge, net of tax	$ 38,000

Employee Benefits - Employee Vacation Policy Changes (Details) $ in Millions	3 Months Ended
	Jan. 26, 2019 USD ($)
Employee Vacation Policy Changes
Non-cash gain due to change in employee vacation policy	$ 5.1
Cost of Sales
Employee Vacation Policy Changes
Non-cash gain due to change in employee vacation policy	1.3
Incremental expense due to change in employee vacation policy	$ 0.3

Product Warranties (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Product Warranties (Details) - USD ($) $ in Thousands	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018	Apr. 28, 2018
Reconciliation of changes in product warranty liability
Balance as of the beginning of the period	$ 25,197	$ 21,606	$ 21,205	$ 21,870
Acquisitions			4,100
Accruals during the period	5,660	4,654	16,270	14,155
Settlements during the period	(5,560)	(4,954)	(16,278)	(14,719)
Balance as of the end of the period	25,297	$ 21,306	25,297	$ 21,306
Product warranty liability included in accrued expenses and other current liabilities	$ 16,700		$ 16,700		$ 12,700
Minimum \| Upholstery Segment
Product Warranties
Percentage of warranty liability relating to the segment			80.00%
Fabric and leather \| Upholstery Segment
Product Warranties
Warranty term			1 year
Cushions and padding \| Minimum \| Upholstery Segment
Product Warranties
Warranty term			1 year
Cushions and padding \| Maximum \| Upholstery Segment
Product Warranties
Warranty term			10 years
Labor costs relating to parts \| Upholstery Segment
Product Warranties
Warranty term			1 year

Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
Stock-based compensation expense recognized for outstanding grants
Equity-based awards expense	$ 2,495	$ 1,519	$ 8,174	$ 7,929
Liability-based awards expense	144	386	10	694
Total stock-based compensation expense	$ 2,639	$ 1,905	$ 8,184	$ 8,623

Stock-Based Compensation - Stock Options (Details) - Stock Options - $ / shares	3 Months Ended	9 Months Ended
	Jul. 28, 2018	Jan. 26, 2019
Stock-Based Compensation
Shares granted (in shares)	423,273
Fair value assumptions
Risk-free interest rate (as a percent)	2.82%
Dividend rate (as a percent)	1.45%
Expected life in years	5 years
Stock price volatility (as a percent)	33.07%
Fair value per share (in dollars per share)	$ 9.65
Minimum
Stock-Based Compensation
Vesting period		1 year
Period of recognition of expenses for retirement-eligible employees from the grant date		10 months
Maximum
Stock-Based Compensation
Vesting period		4 years

Stock-Based Compensation - SARs (Details) - Stock Appreciation Rights	9 Months Ended
	Jan. 26, 2019 $ / shares shares
Stock-Based Compensation
Term of award	10 years
Fiscal 2014 Grant
Stock-Based Compensation
Number of awards outstanding (in shares) \| shares	17,918
Fair value per share (in dollars per share) \| $ / shares	$ 9.94
Fiscal 2013 Grant
Stock-Based Compensation
Number of awards outstanding (in shares) \| shares	7,149
Fair value per share (in dollars per share) \| $ / shares	$ 17.03

Stock-Based Compensation - Restricted Stock (Details) - $ / shares	3 Months Ended	9 Months Ended
	Oct. 27, 2018	Jan. 26, 2019
Restricted Stock
Stock-Based Compensation
Percentage vesting each year from date of grant		25.00%
Period from grant date for first vesting		1 year
Vesting period		4 years
Number of shares or units granted		109,426
Fair value per share (in dollars per share)		$ 32.78
Restricted Stock Units
Stock-Based Compensation
Number of shares or units granted	21,240
Fair value per share (in dollars per share)	$ 33.15

Stock-Based Compensation - Performance Awards (Details) - $ / shares	3 Months Ended	9 Months Ended
	Jul. 28, 2018	Jan. 26, 2019
Performance Awards
Stock-Based Compensation
Percentage of payout dependent on financial performance		80.00%
Percentage of payout dependent on total shareholder return		20.00%
Performance awards, performance period		3 years
Performance Awards \| Minimum
Stock-Based Compensation
Performance award opportunity as a percentage of target award		50.00%
Performance Awards \| Maximum
Stock-Based Compensation
Performance award opportunity as a percentage of target award		200.00%
Performance-Based Shares
Stock-Based Compensation
Number of shares or units granted	146,107
Performance-Based Shares, vesting based on performance goals \| Fiscal 2019 Grant
Stock-Based Compensation
Fair value on date of grant (in dollars per share)	$ 31.71
Performance Based Shares, vesting based on market conditions \| Fiscal 2019 Grant
Stock-Based Compensation
Fair value on date of grant (in dollars per share)	$ 46.39

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Jan. 26, 2019	Jul. 28, 2018	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
Activity in accumulated other comprehensive loss
Balance		$ 612,181		$ 612,181
Balance	$ 657,263			657,263
Components of non-controlling interest
Balance as of the beginning of the period	13,411	13,035	$ 12,094	13,035	$ 11,186
Net income	443		176	1,428	579
Other comprehensive income	669		689	60	1,194
Balance as of the end of the period	14,523		12,959	14,523	12,959
Accumulated Other Comprehensive Income (Loss)
Activity in accumulated other comprehensive loss
Balance	(28,329)	(25,199)	(30,511)	(25,199)	(32,883)
Changes before reclassifications	1,385		4,062	(1,293)	6,225
Amounts reclassified to net income	315		272	1,800	917
Tax effect	(225)		(332)	(525)	(768)
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	1,475		4,002	(1,655)	6,374
Balance	(26,854)		(26,509)	(26,854)	(26,509)
Accumulated Other Comprehensive Income (Loss) \| ASU 2016-01 - Investments
Activity in accumulated other comprehensive loss
Cumulative effect adjustment				(1,637)
Cumulative effect adjustment - unrealized gains on equity investments		(2,100)
Cumulative effect adjustment - tax expense		(500)
Translation Adjustment
Activity in accumulated other comprehensive loss
Balance	(24)	2,388	737	2,388	(927)
Changes before reclassifications	800		2,896	(1,612)	4,560
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	800		2,896	(1,612)	4,560
Balance	776		3,633	776	3,633
Change in Fair Value of Cash Flow Hedge
Activity in accumulated other comprehensive loss
Balance	(24)	154	(189)	154	74
Changes before reclassifications			495	(369)	256
Amounts reclassified to net income	93		22	225	(164)
Tax effect	(23)		(72)	36	90
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	70		445	(108)	182
Balance	46		256	46	256
Unrealized Gain (Loss) on Marketable Securities
Activity in accumulated other comprehensive loss
Balance	(197)	1,376	1,689	1,376	1,752
Changes before reclassifications	72		671	175	1,409
Amounts reclassified to net income	48		(585)	29	(1,425)
Tax effect	(30)		23	(50)	62
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	90		109	(1,483)	46
Balance	(107)		1,798	(107)	1,798
Unrealized Gain (Loss) on Marketable Securities \| ASU 2016-01 - Investments
Activity in accumulated other comprehensive loss
Cumulative effect adjustment				(1,637)
Cumulative effect adjustment - unrealized gains on equity investments		(2,100)
Cumulative effect adjustment - tax expense		(500)
Net Pension Amortization and Net Actuarial Loss
Activity in accumulated other comprehensive loss
Balance	(28,084)	$ (29,117)	(32,748)	(29,117)	(33,782)
Amounts reclassified to net income	687		835	2,059	2,506
Tax effect	(172)		(283)	(511)	(920)
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated	515		552	1,548	1,586
Balance	$ (27,569)		$ (32,196)	$ (27,569)	$ (32,196)

Revenue Recognition - Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jan. 26, 2019	Jan. 26, 2019
Revenue Recognition
Consolidated Net Sales	$ 467,582	$ 1,291,610
Operating Segments
Revenue Recognition
Consolidated Net Sales	544,779	1,500,190
Operating Segments \| Motion Upholstery Furniture
Revenue Recognition
Consolidated Net Sales	312,863	863,382
Operating Segments \| Stationary Upholstery Furniture
Revenue Recognition
Consolidated Net Sales	150,143	408,610
Operating Segments \| Bedroom Furniture
Revenue Recognition
Consolidated Net Sales	10,329	31,692
Operating Segments \| Dining Room Furniture
Revenue Recognition
Consolidated Net Sales	9,440	26,790
Operating Segments \| Occasional Furniture
Revenue Recognition
Consolidated Net Sales	18,980	55,033
Operating Segments \| Other
Revenue Recognition
Consolidated Net Sales	43,024	114,683
Operating Segments \| Upholstery Segment
Revenue Recognition
Consolidated Net Sales	334,448	944,939
Operating Segments \| Upholstery Segment \| Motion Upholstery Furniture
Revenue Recognition
Consolidated Net Sales	212,631	602,458
Operating Segments \| Upholstery Segment \| Stationary Upholstery Furniture
Revenue Recognition
Consolidated Net Sales	94,551	272,087
Operating Segments \| Upholstery Segment \| Occasional Furniture
Revenue Recognition
Consolidated Net Sales	391	1,202
Operating Segments \| Upholstery Segment \| Other
Revenue Recognition
Consolidated Net Sales	26,875	69,192
Operating Segments \| Casegoods Segment
Revenue Recognition
Consolidated Net Sales	28,065	87,828
Operating Segments \| Casegoods Segment \| Stationary Upholstery Furniture
Revenue Recognition
Consolidated Net Sales	3,844	12,215
Operating Segments \| Casegoods Segment \| Bedroom Furniture
Revenue Recognition
Consolidated Net Sales	7,447	24,045
Operating Segments \| Casegoods Segment \| Dining Room Furniture
Revenue Recognition
Consolidated Net Sales	5,733	18,068
Operating Segments \| Casegoods Segment \| Occasional Furniture
Revenue Recognition
Consolidated Net Sales	12,292	38,003
Operating Segments \| Casegoods Segment \| Other
Revenue Recognition
Consolidated Net Sales	(1,251)	(4,503)
Operating Segments \| Retail Segment
Revenue Recognition
Consolidated Net Sales	159,417	418,331
Operating Segments \| Retail Segment \| Motion Upholstery Furniture
Revenue Recognition
Consolidated Net Sales	100,232	260,924
Operating Segments \| Retail Segment \| Stationary Upholstery Furniture
Revenue Recognition
Consolidated Net Sales	27,652	76,517
Operating Segments \| Retail Segment \| Bedroom Furniture
Revenue Recognition
Consolidated Net Sales	1,586	3,891
Operating Segments \| Retail Segment \| Dining Room Furniture
Revenue Recognition
Consolidated Net Sales	3,097	7,293
Operating Segments \| Retail Segment \| Occasional Furniture
Revenue Recognition
Consolidated Net Sales	5,959	15,000
Operating Segments \| Retail Segment \| Other
Revenue Recognition
Consolidated Net Sales	20,891	54,706
Corporate and Other \| Corporate and Other, non-segment
Revenue Recognition
Consolidated Net Sales	22,849	49,092
Corporate and Other \| Corporate and Other, non-segment \| Stationary Upholstery Furniture
Revenue Recognition
Consolidated Net Sales	24,096	47,791
Corporate and Other \| Corporate and Other, non-segment \| Bedroom Furniture
Revenue Recognition
Consolidated Net Sales	1,296	3,756
Corporate and Other \| Corporate and Other, non-segment \| Dining Room Furniture
Revenue Recognition
Consolidated Net Sales	610	1,429
Corporate and Other \| Corporate and Other, non-segment \| Occasional Furniture
Revenue Recognition
Consolidated Net Sales	338	828
Corporate and Other \| Corporate and Other, non-segment \| Other
Revenue Recognition
Consolidated Net Sales	(3,491)	(4,712)
Eliminations
Revenue Recognition
Consolidated Net Sales	$ (77,197)	$ (208,580)

Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Jan. 26, 2019	Jan. 26, 2019	Apr. 29, 2018
Revenue Recognition
Other receivables, included in other current assets	$ 19.5	$ 19.5	$ 12.1
Customer deposits, included in accrued expenses and other current liabilities	47.2	47.2	31.3
Deferred revenues, included in accrued expenses and other current liabilities	19.5	19.5	$ 12.1
Revenue recognized related to contract liabilities	$ 0.0	$ 41.5
Revenue, practical expedient elected for financing components of contracts with one year or less duration		true

Segment Information - Reportable and Operating Segments (Details)	9 Months Ended
	Jan. 26, 2019 store segment item
Upholstery Segment
Segment Information
Number of operating segments	2
Number of reportable segments	1
Casegoods Segment
Segment Information
Number of operating segments	1
Number of brands \| item	3
Retail Segment
Segment Information
Number of operating segments	1
Number of stores \| store	155

Segment Information - Income Statement Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
Segment Information
Sales	$ 467,582	$ 413,638	$ 1,291,610	$ 1,163,922
Operating Income (Loss)	40,843	33,095	92,503	83,662
Interest expense	(538)	(113)	(1,143)	(430)
Interest income	540	444	1,534	1,163
Other income (expense), net	(941)	(1,094)	(2,046)	(271)
Income before income taxes	39,904	32,332	90,848	84,124
Upholstery Segment
Segment Information
Sales	265,487	262,874	759,569	739,429
Casegoods Segment
Segment Information
Sales	23,129	23,887	73,774	68,821
Retail Segment
Segment Information
Sales	159,417	125,815	418,331	353,068
Corporate and Other, non-segment
Segment Information
Sales	19,549	1,062	39,936	2,604
Operating Segments \| Upholstery Segment
Segment Information
Sales	334,448	320,958	944,939	900,126
Operating Income (Loss)	34,566	31,699	90,602	88,422
Operating Segments \| Casegoods Segment
Segment Information
Sales	28,065	27,215	87,828	80,790
Operating Income (Loss)	3,332	2,792	10,173	8,833
Operating Segments \| Retail Segment
Segment Information
Operating Income (Loss)	14,158	7,076	25,179	12,746
Corporate and Other
Segment Information
Operating Income (Loss)	(11,213)	(8,472)	(33,451)	(26,339)
Corporate and Other \| Corporate and Other, non-segment
Segment Information
Sales	22,849	3,880	49,092	9,443
Eliminations
Segment Information
Sales	(77,197)	(64,230)	(208,580)	(179,505)
Eliminations \| Upholstery Segment
Segment Information
Sales	(68,961)	(58,084)	(185,370)	(160,697)
Eliminations \| Casegoods Segment
Segment Information
Sales	(4,936)	(3,328)	(14,054)	(11,969)
Eliminations \| Corporate and Other, non-segment
Segment Information
Sales	$ (3,300)	$ (2,818)	$ (9,156)	$ (6,839)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018	Apr. 28, 2018
Income Taxes
Effective tax rate (as a percent)	26.90%	62.00%	24.60%	43.90%
Statutory tax rate (as a percent)			21.00%		30.40%
Effective tax rate absent discrete adjustments (as a percent)	26.70%		25.60%
Estimated effects of the transition tax			$ 0.2

Earnings per Share - Reconciliation (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jan. 26, 2019	Jan. 27, 2018	Jan. 26, 2019	Jan. 27, 2018
Numerator (basic and diluted):
Net income attributable to La-Z-Boy Incorporated	$ 28,731	$ 12,109	$ 67,046	$ 46,656
Income allocated to participating securities, basic	(92)	(62)	(231)	(234)
Income allocated to participating securities, diluted	(92)	(62)	(231)	(234)
Net income available to common shareholders, basic	28,639	12,047	66,815	46,422
Net income available to common shareholders, diluted	$ 28,639	$ 12,047	$ 66,815	$ 46,422
Denominator:
Basic weighted average common shares outstanding (in shares)	46,820	47,234	46,808	47,852
Add:
Contingent common shares (in shares)	131	178	135	176
Stock option dilution (in shares)	140	345	269	297
Diluted weighted average common shares outstanding (in shares)	47,091	47,757	47,212	48,325

Earnings per Share - Antidilutive Securities (Details) - Outstanding options shares in Millions	9 Months Ended
	Jan. 26, 2019 $ / shares shares
Anti-dilutive options
Outstanding options excluded from diluted share calculation (in shares) \| shares	0.4
Weighted average exercise price of options excluded from diluted share calculation (in dollars per share) \| $ / shares	$ 33.15

Fair Value Measurements - Hierarchy and Transfers (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Jan. 26, 2019	Apr. 28, 2018
Assets
Total assets	$ 57,669	$ 59,354
Recurring basis
Liabilities
Transfers from Level 1 to Level 2 assets	0	0
Transfers from Level 2 to Level 1 assets	0	0
Transfers from Level 1 to Level 2 liabilities	0	0
Transfers from Level 2 to Level 1 liabilities	0	0
Transfers into Level 3 assets	0	0
Transfers out of Level 3 assets	0	0
Transfers into Level 3 liabilities	0	0
Transfers out of Level 3 liabilities	0	0
Recurring basis \| Level 1
Assets
Marketable securities	163	1,141
Held-to-maturity investments	3,384	3,340
Total assets	3,547	4,481
Recurring basis \| Level 2
Assets
Marketable securities	34,852	37,173
Total assets	34,852	37,173
Recurring basis \| Level 3
Assets
Cost basis investments	11,979	10,954
Total assets	11,979	10,954
Liabilities
Contingent consideration liability	$ 7,500	$ 344

Fair Value Measurements - Level 3 Investments (Details) - Level 3	9 Months Ended
	Jan. 26, 2019 company
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Preferred share investments, number of privately-held companies	2
Preferred share investments with common share warrant, number of privately-held companies	1
Joybird
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Discount rate for fiscal 2021 milestone contingent consideration	4.70%
Discount rate for fiscal 2023 milestone contingent consideration	5.10%

Fair Value Measurements - Level 3 Reconciliation (Details) $ in Thousands	9 Months Ended
	Jan. 26, 2019 USD ($)
Reconciliation of Level 3 assets recorded at fair value using significant unobservable inputs
Balance at beginning of the year	$ 10,954
Purchases	1,025
Balance at end of the year	11,979
Reconciliation of Level 3 liabilities recorded at fair value using significant unobservable inputs
Balance at beginning of the year	344
Acquisitions	7,500
Write-off	(326)
Translation adjustment	(18)
Balance at end of the year	$ 7,500

Fair Value Measurements - Net Asset Value (Details) - USD ($) $ in Millions	Jan. 26, 2019	Apr. 28, 2018
Fair Value Measured Using Net Asset Value
Assets
Marketable securities	$ 7.3	$ 6.7

Investments - Other Investments (Details)	Jan. 26, 2019 company
Cost-basis investments
Investments
Preferred share investments, number of privately-held companies	2