LA-Z-BOY INCORPORATED
|
(Exact name of registrant as specified in its charter)
|
MICHIGAN
|
|
38-0751137
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
1284 North Telegraph Road, Monroe, Michigan
|
|
48162-3390
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
|
Name of each exchange on which registered
|
Common Shares, $1.00 Par Value
|
|
New York Stock Exchange
|
Yes
o
|
No
x
|
Yes
o
|
No
x
|
Yes
x
|
No
o
|
Yes
x
|
No
o
|
Large accelerated filer
x
|
Accelerated filer
o
|
Non-accelerated filer
o
|
Smaller reporting company
o
|
Yes
o
|
No
x
|
(1) | Portions of the Registrant’s Proxy Statement to be filed with the Securities and Exchange Commission pursuant to Regulation 14A for its 2013 Annual Meeting of Shareholders are incorporated by reference into Part III. |
Page
Number(s)
|
||
3
|
||
|
||
PART I
|
||
Item 1.
|
3
|
|
Item 1A.
|
9
|
|
Item 1B.
|
12
|
|
Item 2.
|
12
|
|
Item 3.
|
13
|
|
Item 4.
|
13
|
|
14
|
||
|
||
PART II
|
||
Item 5.
|
15
|
|
Item 6.
|
19
|
|
Item 7.
|
23
|
|
Item 7A.
|
39
|
|
Item 8.
|
40
|
|
Item 9.
|
72
|
|
Item 9A.
|
72
|
|
Item 9B.
|
73
|
|
|
||
PART III
|
||
Item 10.
|
73
|
|
Item 11.
|
73
|
|
Item 12.
|
73
|
|
Item 13.
|
73
|
|
Item 14.
|
73
|
|
|
||
PART IV
|
||
Item 15.
|
74
|
¾
future income, margins and cash flows
|
¾
future economic performance
|
¾
future growth
|
¾
industry and importing trends
|
¾
adequacy and cost of financial resources
|
¾
management plans
|
•
|
Chairman, President and Chief Executive Officer since August 2011
|
•
|
President and Chief Executive Officer from September 2003 through August 2011
|
•
|
Senior Vice President of La-Z-Boy and Chief Financial Officer since July 2006
|
•
|
Treasurer from February 2010 through April 2010
|
•
|
Senior Vice President of La-Z-Boy and President of La-Z-Boy Branded Business since July 2011
|
•
|
Senior Vice President of La-Z-Boy and Chief Retail Officer from October 2008 through July 2011
|
•
|
Senior Vice President of La-Z-Boy and President of Casegoods since November 2003
|
•
|
President, Kincaid Furniture Company, Incorporated since June 1983
|
•
|
Senior Vice President of La-Z-Boy and President of Non-Branded Upholstery since February 2008
|
•
|
President, England, Inc. since February 2008
|
(shares in thousands)
|
Total
number of
shares
purchased
|
Average
price
paid per
share
|
Total number
of shares
purchased as
part of
publicly
announced
plan
|
Maximum
number of
shares that
may yet be
purchased
under the
plan
|
||||||||||||
Fiscal February (January 27 – March 2, 2013)
|
64
|
$
|
15.81
|
64
|
4,406
|
|||||||||||
Fiscal March (March 3 – March 30, 2013)
|
99
|
$
|
18.78
|
99
|
4,307
|
|||||||||||
Fiscal April (March 31 – April 27, 2013)
|
124
|
$
|
17.97
|
124
|
4,183
|
|||||||||||
Fiscal Fourth Quarter of 2013
|
287
|
$
|
17.77
|
287
|
4,183
|
Plan category
|
Number of
securities to be
issued upon
exercise of
outstanding
options
(i)
|
|
Weighted-
average
exercise
price of
outstanding
options
(ii)
|
Number of
securities
remaining
available for
future issuance
under
equity
compensation
plans (excluding
securities
reflected in
column (i))
(iii)
|
|
|||||||||
Equity compensation plans approved by shareholders
|
1,255,890
|
(1
|
)
|
$
|
9.78
|
3,251,457
|
(2
|
)
|
Company/Index/Market
|
2008
|
2009
|
2010
|
2011
|
2012
|
2013
|
||||||||||||||||||
La-Z-Boy Incorporated
|
$
|
100
|
$
|
32.85
|
$
|
223.30
|
$
|
178.03
|
$
|
232.23
|
$
|
269.01
|
||||||||||||
S&P 500 Composite Index
|
$
|
100
|
$
|
63.63
|
$
|
91.31
|
$
|
104.37
|
$
|
109.76
|
$
|
126.57
|
||||||||||||
Dow Jones U.S. Furnishings Index
|
$
|
100
|
$
|
66.04
|
$
|
114.59
|
$
|
136.54
|
$
|
130.73
|
$
|
120.20
|
|
|
Market Price
|
||||||||||||||
Fiscal 2013
Quarter
Ended
|
Dividends
Paid
|
High
|
Low
|
Close
|
||||||||||||
July 28
|
$
|
—
|
$
|
16.43
|
$
|
10.95
|
$
|
12.09
|
||||||||
October 27
|
$
|
—
|
$
|
17.13
|
$
|
11.46
|
$
|
16.18
|
||||||||
January 26
|
$
|
0.04
|
$
|
17.06
|
$
|
13.30
|
$
|
15.74
|
||||||||
April 27
|
$
|
0.04
|
$
|
19.43
|
$
|
15.00
|
$
|
17.69
|
||||||||
|
$
|
0.08
|
|
Market Price
|
|||||||||||||||
Fiscal 2012
Quarter
Ended
|
Dividends
Paid
|
High
|
Low
|
Close
|
||||||||||||
July 30
|
$
|
—
|
$
|
11.84
|
$
|
8.41
|
$
|
8.77
|
||||||||
October 29
|
$
|
—
|
$
|
11.00
|
$
|
6.76
|
$
|
10.62
|
||||||||
January 28
|
$
|
—
|
$
|
13.85
|
$
|
9.11
|
$
|
13.73
|
||||||||
April 28
|
$
|
—
|
$
|
15.44
|
$
|
12.96
|
$
|
15.34
|
||||||||
|
$
|
—
|
(Dollar amounts in thousands, except per share data)
|
(52 weeks)
|
(52 weeks)
|
(53 weeks)
|
(52 weeks)
|
(52 weeks)
|
|||||||||||||||
Fiscal Year Ended
|
4/27/2013
|
4/28/2012
|
4/30/2011
|
4/24/2010
|
4/25/2009
|
|||||||||||||||
Sales
|
$
|
1,332,525
|
$
|
1,231,676
|
$
|
1,187,143
|
$
|
1,179,212
|
$
|
1,226,674
|
||||||||||
Cost of sales
|
907,586
|
851,819
|
832,799
|
806,086
|
888,785
|
|||||||||||||||
Gross profit
|
424,939
|
379,857
|
354,344
|
373,126
|
337,889
|
|||||||||||||||
Selling, general and administrative
|
357,312
|
330,226
|
323,964
|
332,698
|
375,767
|
|||||||||||||||
Write-down of long-lived assets
|
—
|
—
|
4,471
|
—
|
7,503
|
|||||||||||||||
Write-down of trade names
|
—
|
—
|
—
|
—
|
5,541
|
|||||||||||||||
Write-down of goodwill
|
—
|
—
|
—
|
—
|
42,136
|
|||||||||||||||
Operating income (loss)
|
67,627
|
49,631
|
25,909
|
40,428
|
(93,058
|
)
|
||||||||||||||
Interest expense
|
746
|
1,384
|
2,346
|
2,972
|
5,581
|
|||||||||||||||
Interest income
|
621
|
611
|
944
|
724
|
2,504
|
|||||||||||||||
Income from Continued Dumping and Subsidy Offset Act, net
|
—
|
18,037
|
1,054
|
4,436
|
8,124
|
|||||||||||||||
Other income (expense), net
|
3,208
|
(38
|
)
|
405
|
480
|
(7,888
|
)
|
|||||||||||||
Income (loss) before income taxes
|
70,710
|
66,857
|
25,966
|
43,096
|
(95,899
|
)
|
||||||||||||||
Income tax expense (benefit)
|
23,528
|
(22,051
|
)
|
8,593
|
11,737
|
26,514
|
||||||||||||||
Net income (loss)
|
47,182
|
88,908
|
17,373
|
31,359
|
(122,413
|
)
|
||||||||||||||
Net (income) loss attributable to noncontrolling interests
|
(793
|
)
|
(942
|
)
|
6,674
|
1,342
|
(252
|
)
|
||||||||||||
Net income (loss) attributable to La-Z-Boy Incorporated
|
$
|
46,389
|
$
|
87,966
|
$
|
24,047
|
$
|
32,701
|
$
|
(122,665
|
)
|
|||||||||
|
||||||||||||||||||||
Basic weighted average shares
|
52,351
|
51,944
|
51,849
|
51,533
|
51,460
|
|||||||||||||||
Basic net income (loss) per share attributable to La-Z-Boy Incorporated
|
$
|
0.87
|
$
|
1.66
|
$
|
0.46
|
$
|
0.63
|
$
|
(2.39
|
)
|
|||||||||
Diluted weighted average shares
|
53,685
|
52,478
|
52,279
|
51,732
|
51,460
|
|||||||||||||||
Diluted net income (loss) per share attributable to La-Z-Boy Incorporated
|
$
|
0.85
|
$
|
1.64
|
$
|
0.45
|
$
|
0.62
|
$
|
(2.39
|
)
|
|||||||||
Dividends declared per share
|
$
|
0.08
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
0.10
|
||||||||||
Book value of year-end shares outstanding
(1)
|
$
|
9.25
|
$
|
8.46
|
$
|
6.96
|
$
|
6.56
|
$
|
5.81
|
(Dollar amounts in thousands)
|
(52 weeks)
|
(52 weeks)
|
(53 weeks)
|
(52 weeks)
|
(52 weeks)
|
|||||||||||||||
Fiscal Year Ended
|
4/27/2013
|
4/28/2012
|
4/30/2011
|
4/24/2010
|
4/25/2009
|
|||||||||||||||
Return on average total equity
(2)
|
10.0
|
%
|
21.9
|
%
|
4.9
|
%
|
9.7
|
%
|
(32.5
|
)%
|
||||||||||
Gross profit as a percent of sales
|
31.9
|
%
|
30.8
|
%
|
29.8
|
%
|
31.6
|
%
|
27.5
|
%
|
||||||||||
Operating profit (loss) as a percent of sales
|
5.1
|
%
|
4.0
|
%
|
2.2
|
%
|
3.4
|
%
|
(7.6
|
)%
|
||||||||||
Effective tax rate
(2)
|
33.3
|
%
|
(33.0
|
)%
|
33.1
|
%
|
27.2
|
%
|
(27.6
|
)%
|
||||||||||
Return on sales
(2)
|
3.5
|
%
|
7.2
|
%
|
1.5
|
%
|
2.7
|
%
|
(10.0
|
)%
|
||||||||||
|
||||||||||||||||||||
Depreciation and amortization
|
$
|
23,140
|
$
|
23,486
|
$
|
24,302
|
$
|
25,246
|
$
|
24,142
|
||||||||||
Capital expenditures
|
$
|
25,912
|
$
|
15,663
|
$
|
10,540
|
$
|
10,986
|
$
|
15,625
|
||||||||||
Property, plant and equipment, net
|
$
|
118,060
|
$
|
114,366
|
$
|
120,603
|
$
|
138,857
|
$
|
146,896
|
||||||||||
|
||||||||||||||||||||
Working capital
|
$
|
350,717
|
$
|
350,241
|
$
|
300,119
|
$
|
279,768
|
$
|
220,401
|
||||||||||
Current ratio
(3)
|
3.3 to 1
|
3.3 to 1
|
3.3 to 1
|
2.9 to 1
|
2.7 to 1
|
|||||||||||||||
Total assets
|
$
|
720,371
|
$
|
685,739
|
$
|
593,455
|
$
|
607,783
|
$
|
548,330
|
||||||||||
|
||||||||||||||||||||
Long-term debt, excluding current portion
|
$
|
7,576
|
$
|
7,931
|
$
|
29,937
|
$
|
46,917
|
$
|
52,148
|
||||||||||
Total debt
|
$
|
8,089
|
$
|
9,760
|
$
|
35,057
|
$
|
47,983
|
$
|
60,872
|
||||||||||
Total equity
|
$
|
491,968
|
$
|
447,815
|
$
|
364,140
|
$
|
343,114
|
$
|
303,419
|
||||||||||
Debt to equity ratio
(4)
|
1.6
|
%
|
2.2
|
%
|
9.6
|
%
|
14.0
|
%
|
20.1
|
%
|
||||||||||
Debt to capitalization ratio
(5)
|
1.6
|
%
|
2.1
|
%
|
8.8
|
%
|
12.3
|
%
|
16.7
|
%
|
||||||||||
|
||||||||||||||||||||
Shareholders
|
12,400
|
13,900
|
13,900
|
17,400
|
16,700
|
|||||||||||||||
Employees
|
8,185
|
8,160
|
7,910
|
8,290
|
7,730
|
(Dollar amounts in thousands, except per share data)
|
(13 weeks)
|
(13 weeks)
|
(13 weeks)
|
(13 weeks)
|
||||||||||||
Fiscal Quarter Ended
|
7/28/2012
|
10/27/2012
|
1/26/2013
|
4/27/2013
|
||||||||||||
Sales
|
$
|
301,501
|
$
|
322,341
|
$
|
349,148
|
$
|
359,535
|
||||||||
Cost of sales
|
211,889
|
222,032
|
235,699
|
237,966
|
||||||||||||
Gross profit
|
89,612
|
100,309
|
113,449
|
121,569
|
||||||||||||
Selling, general and administrative expense
|
81,986
|
89,746
|
90,171
|
95,409
|
||||||||||||
Operating income
|
7,626
|
10,563
|
23,278
|
26,160
|
||||||||||||
Interest expense
|
173
|
191
|
148
|
234
|
||||||||||||
Interest income
|
121
|
116
|
198
|
186
|
||||||||||||
Other income (expense), net
|
(121
|
)
|
212
|
2,404
|
713
|
|||||||||||
Income before income taxes
|
7,453
|
10,700
|
25,732
|
26,825
|
||||||||||||
Income tax expense
|
2,758
|
3,868
|
8,569
|
8,333
|
||||||||||||
Net income
|
4,695
|
6,832
|
17,163
|
18,492
|
||||||||||||
Net income attributable to noncontrolling interests
|
(297
|
)
|
(213
|
)
|
(99
|
)
|
(184
|
)
|
||||||||
Net income attributable to La-Z-Boy Incorporated
|
$
|
4,398
|
$
|
6,619
|
$
|
17,064
|
$
|
18,308
|
||||||||
|
||||||||||||||||
Diluted weighted average shares
|
53,040
|
53,268
|
53,401
|
53,754
|
||||||||||||
|
||||||||||||||||
Diluted net income per share attributable to La-Z-Boy Incorporated
|
$
|
0.08
|
$
|
0.12
|
$
|
0.32
|
$
|
0.33
|
||||||||
|
||||||||||||||||
Dividends declared per share
|
$
|
—
|
$
|
—
|
$
|
0.04
|
$
|
0.04
|
(Dollar amounts in thousands, except per share data)
|
(13 weeks)
|
(13 weeks)
|
(13 weeks)
|
(13 weeks)
|
||||||||||||
Fiscal Quarter Ended
|
7/30/2011
|
10/29/2011
|
1/28/2012
|
4/28/2012
|
||||||||||||
Sales
|
$
|
280,094
|
$
|
307,679
|
$
|
316,515
|
$
|
327,388
|
||||||||
Cost of sales
|
199,166
|
211,896
|
216,724
|
224,033
|
||||||||||||
Gross profit
|
80,928
|
95,783
|
99,791
|
103,355
|
||||||||||||
Selling, general and administrative expense
|
77,455
|
83,535
|
82,771
|
86,465
|
||||||||||||
Operating income
|
3,473
|
12,248
|
17,020
|
16,890
|
||||||||||||
Interest expense
|
424
|
389
|
274
|
297
|
||||||||||||
Interest income
|
183
|
166
|
138
|
124
|
||||||||||||
Income from Continued Dumping and Subsidy Offset Act, net
|
322
|
—
|
1,415
|
16,300
|
||||||||||||
Other income (expense), net
|
373
|
(108
|
)
|
(89
|
)
|
(214
|
)
|
|||||||||
Income before income taxes
|
3,927
|
11,917
|
18,210
|
32,803
|
||||||||||||
Income tax expense (benefit)
|
(41,929
|
)
|
4,245
|
2,864
|
12,769
|
|||||||||||
Net income
|
45,856
|
7,672
|
15,346
|
20,034
|
||||||||||||
Net (income) loss attributable to noncontrolling interests
|
(320
|
)
|
198
|
(388
|
)
|
(432
|
)
|
|||||||||
Net income attributable to La-Z-Boy Incorporated
|
$
|
45,536
|
$
|
7,870
|
$
|
14,958
|
$
|
19,602
|
||||||||
|
||||||||||||||||
Diluted weighted average shares
|
52,443
|
52,475
|
52,379
|
52,609
|
||||||||||||
|
||||||||||||||||
Diluted net income per share attributable to La-Z-Boy Incorporated
|
$
|
0.85
|
$
|
0.15
|
$
|
0.28
|
$
|
0.37
|
||||||||
|
||||||||||||||||
Dividends declared per share
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
· | Upholstery Segment . Our Upholstery segment is our largest segment in terms of revenue, and consists of three operating units: La-Z-Boy, our largest operating unit, and the Bauhaus and England operating units. The Upholstery segment manufactures or 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 Comfort Studios® locations, major dealers and other independent retailers. |
· | Casegoods Segment . Our Casegoods segment is an importer, marketer, manufacturer and distributor of casegoods (wood) furniture such as bedroom sets, dining room sets, entertainment centers and occasional pieces, and some coordinated upholstered furniture. The Casegoods segment consists of two operating units, one consisting of American Drew, Lea and Hammary, and the second being Kincaid. The Casegoods segment primarily sells to major dealers and other independent retailers. |
· | Retail Segment . Our Retail segment consists of 94 company-owned La-Z-Boy Furniture Galleries® stores located in eleven markets ranging from southern California to the Midwest to the east coast of the United States. The Retail segment primarily sells upholstered furniture, in addition to some casegoods and other accessories, to the end consumer through the retail network. |
(Amounts in thousands, except percentages)
|
(52 weeks)
4/27/2013
|
(52 weeks)
4/28/2012
|
Percent
change
|
|||||||||
Consolidated sales
|
$
|
1,332,525
|
$
|
1,231,676
|
8.2
|
%
|
||||||
Consolidated operating income
|
67,627
|
49,631
|
36.3
|
%
|
||||||||
Consolidated operating margin
|
5.1
|
%
|
4.0
|
%
|
· | Our gross margin increased 1.1 percentage points in fiscal 2013 as compared to fiscal 2012. |
o | Our Retail segment increase in gross margin was a result of mix, merchandising, and price. |
o | We also saw favorable absorption of fixed costs resulting from sales volume increases in our Upholstery segment. |
o | These improvements were partially offset by 0.2 percentage points of restructuring charges recorded during fiscal 2013, which mainly related to fixed asset and inventory write-downs associated with the closure of our lumber processing operation in our Casegoods segment during the second quarter. |
· | Selling, General, and Administrative (“SG&A”) expenses increased in dollars in fiscal 2013 as compared to fiscal 2012, but remained flat as a percent of sales. |
o | Increased sales resulted in favorable absorption of fixed costs. |
o | Offsetting the favorable fixed cost absorption was $8.8 million of additional incentive compensation expense in fiscal 2013 across all segments, or an increase of 0.7 percentage points. This increase in incentive compensation was due to our continued improvements in sales and operating results for the full fiscal year. As a result, we have three outstanding performance based stock awards, each with three-year performance measurement periods, for which we were recognizing expense during fiscal 2013. |
(Amounts in thousands, except percentages)
|
(52 weeks)
4/27/2013
|
(52 weeks)
4/28/2012
|
Percent
change
|
|||||||||
Sales
|
$
|
1,067,047
|
$
|
975,103
|
9.4
|
%
|
||||||
Operating income
|
96,762
|
81,753
|
18.4
|
%
|
||||||||
Operating margin
|
9.1
|
%
|
8.4
|
%
|
· | The segment’s gross margin increased 0.9 percentage points during fiscal 2013 due to a combination of factors, the most significant of which were: |
o | Selling price changes as well as changes in product mix resulted in a 1.6 percentage point increase in gross margin. |
o | Raw material cost increases resulted in a 1.1 percentage point decrease in gross margin. |
· | The segment’s SG&A as a percentage of sales increased 0.2 percentage points, mainly due to higher incentive compensation expense in fiscal 2013, as well as increased costs related to our ERP implementation. These increased costs were partially offset by favorable absorption of fixed costs resulting from our sales volume increase. |
(Amounts in thousands, except percentages)
|
(52 weeks)
4/27/2013
|
(52 weeks)
4/28/2012
|
Percent
change
|
|||||||||
Sales
|
$
|
133,994
|
$
|
139,639
|
(4.0
|
)%
|
||||||
Operating income
|
2,640
|
5,540
|
(52.3
|
)%
|
||||||||
Operating margin
|
2.0
|
%
|
4.0
|
%
|
· | The segment’s gross margin decreased 0.4 percentage points in fiscal 2013 compared to fiscal 2012. Gross margin was reduced by 1.1 percentage points due to a charge taken in the third quarter of fiscal 2013 for a probable adjustment to our import duties, combined with a decline in volume which resulted in an inability to absorb fixed costs. Partially offsetting these declines was an increase in gross margin due to a shift to a larger mix of sales of occasional furniture, which carry better margins. |
· | The segment’s SG&A as a percentage of sales increased 1.6 percentage points during fiscal 2013 compared to fiscal 2012, due mainly to higher incentive compensation costs, which were driven by equity-based awards and consolidated financial performance. The inability to absorb fixed costs due to the decline in sales volume also contributed to the increased SG&A costs as a percentage of sales. |
(Amounts in thousands, except percentages)
|
(52 weeks)
4/27/2013
|
(52 weeks)
4/28/2012
|
Percent
change
|
|||||||||
Sales
|
$
|
264,723
|
$
|
215,490
|
22.8
|
%
|
||||||
Operating income (loss)
|
4,099
|
(7,819
|
)
|
152.4
|
%
|
|||||||
Operating margin
|
1.5
|
%
|
(3.6
|
)%
|
· | The segment’s gross margin benefitted from selling price increases, differentiated product merchandising, and lower promotional activity. |
· | Increased sales volume contributed to a higher operating margin, through greater leverage of SG&A expenses as a percentage of sales. |
(Amounts in thousands, except percentages)
|
(52 weeks)
4/27/2013
|
(52 weeks)
4/28/2012
|
Percent
Change
|
|||||||||
Sales
|
|
|
|
|||||||||
VIEs, net of intercompany sales eliminations
|
$
|
—
|
$
|
8,840
|
N/M
|
|
||||||
Corporate and Other
|
2,313
|
2,356
|
(1.8
|
)%
|
||||||||
Eliminations
|
(135,552
|
)
|
(109,752
|
)
|
(23.5
|
)%
|
||||||
|
||||||||||||
Operating income (loss)
|
||||||||||||
VIEs
|
—
|
959
|
N/M
|
|
||||||||
Restructuring
|
(2,715
|
)
|
(281
|
)
|
N/M
|
|
||||||
Corporate and Other
|
(33,159
|
)
|
(30,521
|
)
|
(8.6
|
)%
|
(Amounts in thousands, except percentages)
|
(52 weeks)
4/28/2012
|
(53 weeks)
4/30/2011
|
Percent
change
|
|||||||||
Consolidated sales
|
$
|
1,231,676
|
$
|
1,187,143
|
3.8
|
%
|
||||||
Consolidated operating income
|
49,631
|
25,909
|
91.6
|
%
|
||||||||
Consolidated operating margin
|
4.0
|
%
|
2.2
|
%
|
· | Our gross margin increased 1.0 percentage point in fiscal 2012 as compared to fiscal 2011. Ongoing cost reductions, primarily in our Upholstery segment related to our Mexican operations, along with improvements in our Retail segment’s gross margin, drove this improvement. Partially offsetting these items were raw material price increases in our Upholstery and Casegoods segments. |
· | Selling, General, and Administrative (“SG&A”) expenses increased in dollars in fiscal 2012 as compared to fiscal 2011, but as a percent of sales, SG&A decreased by 0.5 percentage points. The improvement as a percentage of sales was driven by our increased sales volume and greater leverage of SG&A expenses. The increase in dollars was driven by an increase in employee incentive and compensation expense, primarily in the Upholstery segment and in Corporate and Other, as well as increased advertising spend in the Upholstery segment. |
· | Our fiscal 2011 operating margin was impacted by 0.4 percentage points for the write-down of long-lived assets. |
(Amounts in thousands, except percentages)
|
(52 weeks)
4/28/2012
|
(53 weeks)
4/30/2011
|
Percent
change
|
|||||||||
Sales
|
$
|
975,103
|
$
|
916,867
|
6.4
|
%
|
||||||
Operating income
|
81,753
|
72,743
|
12.4
|
%
|
||||||||
Operating margin
|
8.4
|
%
|
7.9
|
%
|
· | The segment’s gross margin increased 1.0 percentage point during fiscal 2012 due to a combination of factors, the most significant of which were: |
o | Ongoing cost reductions and efficiencies, including the favorable operating impact of our Mexican operations, resulting in a 2.0 percentage point increase in gross margin. |
o | Raw material cost increases resulting in a 1.6 percentage point decrease in gross margin. |
· | Offsetting the increase in gross margin were higher warranty costs of $1.0 million in fiscal 2012 as compared to fiscal 2011, due to a reduction in the warranty reserve recorded in fiscal 2011 related to the redesign of a mechanism that had historically experienced high claims activity. Also offsetting the increase in gross margin was higher advertising spend and increased employee incentive and compensation expenses in fiscal 2012. |
(Amounts in thousands, except percentages)
|
(52 weeks)
4/28/2012
|
(53 weeks)
4/30/2011
|
Percent
change
|
|||||||||
Sales
|
$
|
139,639
|
$
|
152,534
|
(8.5
|
)%
|
||||||
Operating income
|
5,540
|
6,698
|
(17.3
|
)%
|
||||||||
Operating margin
|
4.0
|
%
|
4.4
|
%
|
(Amounts in thousands, except percentages)
|
(52 weeks)
4/28/2012
|
(53 weeks)
4/30/2011
|
Percent
change
|
|||||||||
Sales
|
$
|
215,490
|
$
|
176,987
|
21.8
|
%
|
||||||
Operating loss
|
(7,819
|
)
|
(15,078
|
)
|
48.1
|
%
|
||||||
Operating margin
|
(3.6
|
)%
|
(8.5
|
)%
|
· | The segment’s gross margin during fiscal 2012 increased 2.5 percentage points compared to fiscal 2011. |
· | The improved operating margin for this segment was primarily a result of the increased sales volume which resulted in a greater leverage of SG&A expenses as a percentage of sales. |
· | The stores acquired from our Southern California VIE were essentially break-even on an operating margin basis for fiscal 2012, a substantial improvement over fiscal 2011 when these stores generated an operating loss of $3.5 million when they were a consolidated VIE and not reported as part of the Retail segment. |
(Amounts in thousands, except percentages)
|
(52 weeks)
4/28/2012
|
(53 weeks)
4/30/2011
|
Percent
change
|
|||||||||
Sales
|
|
|
|
|||||||||
VIEs, net of intercompany sales eliminations
|
$
|
8,840
|
$
|
29,105
|
(69.6
|
)%
|
||||||
Corporate and Other
|
2,356
|
1,909
|
23.4
|
%
|
||||||||
Eliminations
|
(109,752
|
)
|
(90,259
|
)
|
(21.6
|
)%
|
||||||
|
||||||||||||
Operating income (loss)
|
||||||||||||
VIEs
|
959
|
(4,949
|
)
|
119.4
|
%
|
|||||||
Restructuring
|
(281
|
)
|
(487
|
)
|
N/M
|
|
||||||
Corporate and Other
|
(30,521
|
)
|
(28,547
|
)
|
(6.9
|
)%
|
|
Year Ended
|
|||||||
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
||||||
Cash Flows Provided By (Used For)
|
|
|
||||||
Net cash provided by operating activities
|
$
|
68,440
|
$
|
82,848
|
||||
Net cash used for investing activities
|
(78,041
|
)
|
(19,094
|
)
|
||||
Net cash used for financing activities
|
(11,616
|
)
|
(26,517
|
)
|
||||
Exchange rate changes
|
(68
|
)
|
(129
|
)
|
||||
Change in cash and equivalents
|
$
|
(21,285
|
)
|
$
|
37,108
|
· | Increase in other liabilities of $11.0 million, mainly due to increases in customer deposits, warranty and freight, which have all increased as a result of our volume increases. |
· | Decrease in accounts payable of $6.1 million. |
· | Decrease in accounts receivable of $7.1 million primarily due to an increase in cash collections, which resulted in lower days sales outstanding. The improvement in our cash collections was the result of an improvement in the financial health of our customer base, including our independent La-Z-Boy Furniture Galleries® dealers. |
· | Increase in other liabilities of $12.6 million, mainly due to higher accrued incentive compensation of $6.2 million, income taxes of $3.8 million and freight of $1.5 million. |
· | Increase in accounts payable of $7.5 million, offset by increased inventory levels of $7.4 million. These increases were primarily due to increased raw material inventory in our Upholstery segment. |
· | Increase in accounts receivable of $6.2 million, driven by the increase in sales. |
· | Decrease in other assets of $3.3 million. |
|
|
Payments Due by Period
|
||||||||||||||||||
(Amounts in thousands)
|
Total
|
Less than
1 Year
|
1-3 Years
|
4-5 Years
|
More than
5 Years
|
|||||||||||||||
Long-term debt obligations
|
$
|
7,100
|
$
|
—
|
$
|
7,100
|
$
|
—
|
$
|
—
|
||||||||||
Capital lease obligations
|
989
|
513
|
476
|
—
|
—
|
|||||||||||||||
Operating lease obligations
|
319,191
|
46,562
|
88,390
|
75,623
|
108,616
|
|||||||||||||||
Interest obligations
|
14
|
13
|
1
|
—
|
—
|
|||||||||||||||
Purchase obligations*
|
86,961
|
86,961
|
—
|
—
|
—
|
|||||||||||||||
Total contractual obligations
|
$
|
414,255
|
$
|
134,049
|
$
|
95,967
|
$
|
75,623
|
$
|
108,616
|
*
|
We have purchase order commitments of $87.0 million related to open purchase orders, primarily with foreign and domestic casegoods, leather and fabric suppliers, which are generally cancellable if production has not begun.
|
|
Fiscal Year Ended
|
|||||||||||
(Amounts in thousands, except per share data)
|
(52 weeks)
4/27/2013
|
(52 weeks)
4/28/2012
|
(53 weeks)
4/30/2011
|
|||||||||
Sales
|
$
|
1,332,525
|
$
|
1,231,676
|
$
|
1,187,143
|
||||||
Cost of sales
|
907,586
|
851,819
|
832,799
|
|||||||||
Gross profit
|
424,939
|
379,857
|
354,344
|
|||||||||
Selling, general and administrative expense
|
357,312
|
330,226
|
323,964
|
|||||||||
Write-down of long-lived assets
|
—
|
—
|
4,471
|
|||||||||
Operating income
|
67,627
|
49,631
|
25,909
|
|||||||||
Interest expense
|
746
|
1,384
|
2,346
|
|||||||||
Interest income
|
621
|
611
|
944
|
|||||||||
Income from Continued Dumping and Subsidy Offset Act, net
|
—
|
18,037
|
1,054
|
|||||||||
Other income (expense), net
|
3,208
|
(38
|
)
|
405
|
||||||||
Income before income taxes
|
70,710
|
66,857
|
25,966
|
|||||||||
Income tax expense (benefit)
|
23,528
|
(22,051
|
)
|
8,593
|
||||||||
Net income
|
47,182
|
88,908
|
17,373
|
|||||||||
Net (income) loss attributable to noncontrolling interests
|
(793
|
)
|
(942
|
)
|
6,674
|
|||||||
Net income attributable to La-Z-Boy Incorporated
|
$
|
46,389
|
$
|
87,966
|
$
|
24,047
|
||||||
|
||||||||||||
Basic average shares
|
52,351
|
51,944
|
51,849
|
|||||||||
|
||||||||||||
Basic net income per share attributable to La-Z-Boy Incorporated
|
$
|
0.87
|
$
|
1.66
|
$
|
0.46
|
||||||
|
||||||||||||
Diluted average shares
|
53,685
|
52,478
|
52,279
|
|||||||||
|
||||||||||||
Diluted net income per share attributable to La-Z-Boy Incorporated
|
$
|
0.85
|
$
|
1.64
|
$
|
0.45
|
||||||
|
||||||||||||
Dividends declared per share
|
$
|
0.08
|
$
|
—
|
$
|
—
|
|
Fiscal Year Ended
|
|||||||||||
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
4/30/2011
|
|||||||||
Net income
|
$
|
47,182
|
$
|
88,908
|
$
|
17,373
|
||||||
Other comprehensive income (loss)
|
||||||||||||
Currency translation adjustment
|
1,089
|
(132
|
)
|
55
|
||||||||
Change in fair value of cash flow hedges, net of tax
|
231
|
28
|
548
|
|||||||||
Net unrealized gains (losses) on marketable securities, net of tax
|
(2,543
|
)
|
(331
|
)
|
590
|
|||||||
Net pension amortization and actuarial gain (loss), net of tax
|
(2,653
|
)
|
(12,209
|
)
|
640
|
|||||||
Total other comprehensive income (loss)
|
(3,876
|
)
|
(12,644
|
)
|
1,833
|
|||||||
Total comprehensive income before allocation to noncontrolling interests
|
43,306
|
76,264
|
19,206
|
|||||||||
Comprehensive (income) loss attributable to noncontrolling interests
|
(1,132
|
)
|
(775
|
)
|
6,321
|
|||||||
Comprehensive income attributable to La-Z-Boy Incorporated
|
$
|
42,174
|
$
|
75,489
|
$
|
25,527
|
|
As of
|
|||||||
(Amounts in thousands, except par value)
|
4/27/2013
|
4/28/2012
|
||||||
Current assets
|
|
|
||||||
Cash and equivalents
|
$
|
131,085
|
$
|
152,370
|
||||
Restricted cash
|
12,686
|
2,861
|
||||||
Receivables, net of allowance of $21,607 at 4/27/13 and $22,254 at 4/28/12
|
160,005
|
167,232
|
||||||
Inventories, net
|
146,343
|
143,787
|
||||||
Deferred income taxes – current
|
20,640
|
19,081
|
||||||
Other current assets
|
30,121
|
14,669
|
||||||
Total current assets
|
500,880
|
500,000
|
||||||
Property, plant and equipment, net
|
118,060
|
114,366
|
||||||
Goodwill
|
12,837
|
—
|
||||||
Other intangible assets
|
4,838
|
3,028
|
||||||
Deferred income taxes – long term
|
30,572
|
33,649
|
||||||
Other long-term assets, net
|
53,184
|
34,696
|
||||||
Total assets
|
$
|
720,371
|
$
|
685,739
|
||||
|
||||||||
Current liabilities
|
||||||||
Current portion of long-term debt
|
$
|
513
|
$
|
1,829
|
||||
Accounts payable
|
50,542
|
56,630
|
||||||
Accrued expenses and other current liabilities
|
99,108
|
91,300
|
||||||
Total current liabilities
|
150,163
|
149,759
|
||||||
Long-term debt
|
7,576
|
7,931
|
||||||
Other long-term liabilities
|
70,664
|
80,234
|
||||||
Contingencies and commitments
|
—
|
—
|
||||||
Shareholders' equity
|
||||||||
Preferred shares – 5,000 authorized; none issued
|
—
|
—
|
||||||
Common shares, $1 par value – 150,000 authorized; 52,392 outstanding at 4/27/13 and 52,244 outstanding at 4/28/12
|
52,392
|
52,244
|
||||||
Capital in excess of par value
|
241,888
|
231,332
|
||||||
Retained earnings
|
226,044
|
189,609
|
||||||
Accumulated other comprehensive loss
|
(35,496
|
)
|
(31,281
|
)
|
||||
Total La-Z-Boy Incorporated shareholders’ equity
|
484,828
|
441,904
|
||||||
Noncontrolling interests
|
7,140
|
5,911
|
||||||
Total equity
|
491,968
|
447,815
|
||||||
Total liabilities and equity
|
$
|
720,371
|
$
|
685,739
|
|
Fiscal Year Ended
|
|||||||||||
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
4/30/2011
|
|||||||||
Cash flows from operating activities
|
|
|
|
|||||||||
Net income
|
$
|
47,182
|
$
|
88,908
|
$
|
17,373
|
||||||
Adjustments to reconcile net income to cash provided by operating activities
|
||||||||||||
(Gain) loss on disposal of assets
|
(659
|
)
|
45
|
201
|
||||||||
Gain on sale of investments
|
(3,170
|
)
|
(519
|
)
|
(529
|
)
|
||||||
Gain on deconsolidation of VIE
|
—
|
(1,125
|
)
|
—
|
||||||||
Write-down of long-lived assets
|
—
|
—
|
4,471
|
|||||||||
Deferred income tax expense (benefit)
|
3,198
|
(42,146
|
)
|
(120
|
)
|
|||||||
Restructuring
|
2,715
|
281
|
487
|
|||||||||
Provision for doubtful accounts
|
1,005
|
4,196
|
7,197
|
|||||||||
Depreciation and amortization
|
23,140
|
23,486
|
24,302
|
|||||||||
Stock-based compensation expense
|
11,458
|
5,718
|
3,720
|
|||||||||
Pension plan contributions
|
(23,480
|
)
|
(5,798
|
)
|
(4,495
|
)
|
||||||
Change in receivables
|
7,139
|
(6,182
|
)
|
1,599
|
||||||||
Change in inventories
|
391
|
(7,414
|
)
|
(10,531
|
)
|
|||||||
Change in other assets
|
(5,407
|
)
|
3,318
|
(563
|
)
|
|||||||
Change in payables
|
(6,088
|
)
|
7,470
|
(4,429
|
)
|
|||||||
Change in other liabilities
|
11,016
|
12,610
|
(10,837
|
)
|
||||||||
Net cash provided by operating activities
|
68,440
|
82,848
|
27,846
|
|||||||||
Cash flows from investing activities
|
||||||||||||
Proceeds from disposals of assets
|
4,455
|
372
|
506
|
|||||||||
Capital expenditures
|
(25,912
|
)
|
(15,663
|
)
|
(10,540
|
)
|
||||||
Purchases of investments
|
(49,589
|
)
|
(7,944
|
)
|
(10,200
|
)
|
||||||
Proceeds from sales of investments
|
18,662
|
8,649
|
10,655
|
|||||||||
Cash effects on deconsolidation of VIE
|
—
|
(971
|
)
|
(632
|
)
|
|||||||
Acquisitions, net of cash acquired
|
(15,832
|
)
|
—
|
—
|
||||||||
Change in restricted cash
|
(9,825
|
)
|
(2,861
|
)
|
—
|
|||||||
Other
|
—
|
(676
|
)
|
(49
|
)
|
|||||||
Net cash used for investing activities
|
(78,041
|
)
|
(19,094
|
)
|
(10,260
|
)
|
||||||
Cash flows from financing activities
|
||||||||||||
Proceeds from debt
|
—
|
—
|
30,585
|
|||||||||
Payments on debt
|
(2,511
|
)
|
(25,936
|
)
|
(41,618
|
)
|
||||||
Payments for debt issuance costs
|
—
|
(568
|
)
|
—
|
||||||||
Stock issued for stock and employee benefit plans
|
2,901
|
4,943
|
270
|
|||||||||
Excess tax benefit on stock option exercises
|
2,563
|
223
|
—
|
|||||||||
Purchases of common stock
|
(10,333
|
)
|
(5,179
|
)
|
—
|
|||||||
Dividends paid
|
(4,236
|
)
|
—
|
—
|
||||||||
Net cash used for financing activities
|
(11,616
|
)
|
(26,517
|
)
|
(10,763
|
)
|
||||||
Effect of exchange rate changes on cash and equivalents
|
(68
|
)
|
(129
|
)
|
12
|
|||||||
Change in cash and equivalents
|
(21,285
|
)
|
37,108
|
6,835
|
||||||||
Cash and equivalents at beginning of period
|
152,370
|
115,262
|
108,427
|
|||||||||
Cash and equivalents at end of period
|
$
|
131,085
|
$
|
152,370
|
$
|
115,262
|
(Amounts in thousands)
|
Common
Shares
|
Capital in
Excess of Par
Value
|
Retained
Earnings
|
Accumulated Other
Comprehensive
Income (Loss)
|
Non-
Controlling
Interests
|
Total
|
||||||||||||||||||
At April 24, 2010
|
$
|
51,770
|
$
|
218,622
|
$
|
89,717
|
$
|
(20,284
|
)
|
$
|
3,289
|
$
|
343,114
|
|||||||||||
Net income (loss)
|
24,047
|
(6,674
|
)
|
17,373
|
||||||||||||||||||||
Other comprehensive income
|
1,480
|
353
|
1,833
|
|||||||||||||||||||||
Stock issued for stock and employee benefit plans, net of cancellations
|
139
|
(244
|
)
|
(105
|
)
|
|||||||||||||||||||
Stock option and restricted stock expense
|
3,717
|
3,717
|
||||||||||||||||||||||
Acquisition of VIE and other
|
(8,573
|
)
|
8,633
|
60
|
||||||||||||||||||||
Cumulative effect of change in accounting for noncontrolling interests
|
925
|
(2,777
|
)
|
(1,852
|
)
|
|||||||||||||||||||
At April 30, 2011
|
51,909
|
222,339
|
105,872
|
(18,804
|
)
|
2,824
|
364,140
|
|||||||||||||||||
Net income
|
87,966
|
942
|
88,908
|
|||||||||||||||||||||
Other comprehensive loss
|
(12,477
|
)
|
(167
|
)
|
(12,644
|
)
|
||||||||||||||||||
Stock issued for stock and employee benefit plans, net of cancellations
|
835
|
4,011
|
(509
|
)
|
4,337
|
|||||||||||||||||||
Purchases of common stock
|
(500
|
)
|
(958
|
)
|
(3,721
|
)
|
(5,179
|
)
|
||||||||||||||||
Stock option and restricted stock expense
|
5,717
|
1
|
5,718
|
|||||||||||||||||||||
Tax benefit from exercise of options
|
223
|
223
|
||||||||||||||||||||||
Changes in noncontrolling interest upon deconsolidation of VIE and other changes in noncontrolling interests
|
2,312
|
2,312
|
||||||||||||||||||||||
At April 28, 2012
|
52,244
|
231,332
|
189,609
|
(31,281
|
)
|
5,911
|
447,815
|
|||||||||||||||||
Net income
|
46,389
|
793
|
47,182
|
|||||||||||||||||||||
Other comprehensive income (loss)
|
(4,215
|
)
|
339
|
(3,876
|
)
|
|||||||||||||||||||
Stock issued for stock and employee benefit plans, net of cancellations
|
817
|
1,849
|
(1,368
|
)
|
1,298
|
|||||||||||||||||||
Purchases of common stock
|
(669
|
)
|
(5,314
|
)
|
(4,350
|
)
|
(10,333
|
)
|
||||||||||||||||
Stock option and restricted stock expense
|
11,458
|
11,458
|
||||||||||||||||||||||
Tax benefit from exercise of options
|
2,563
|
2,563
|
||||||||||||||||||||||
Dividends paid
|
(4,236
|
)
|
(4,236
|
)
|
||||||||||||||||||||
Change in noncontrolling interests
|
97
|
97
|
||||||||||||||||||||||
At April 27, 2013
|
$
|
52,392
|
$
|
241,888
|
$
|
226,044
|
$
|
(35,496
|
)
|
$
|
7,140
|
$
|
491,968
|
|
As of
|
|||
(Amounts in thousands)
|
10/1/12
|
|||
Current assets
|
$
|
4,260
|
||
Goodwill
|
12,837
|
|||
Other intangible assets
|
2,145
|
|||
Property, plant, and equipment, net
|
336
|
|||
Total assets acquired
|
19,578
|
|||
|
||||
Current liabilities
|
(2,199
|
)
|
||
|
||||
Net assets acquired
|
$
|
17,379
|
|
|
|
||||||
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
||||||
Beginning balance
|
$
|
1,537
|
$
|
2,067
|
||||
Recoveries
|
(73
|
)
|
(38
|
)
|
||||
Write-offs
|
—
|
(1,231
|
)
|
|||||
Provision for credit losses
|
522
|
825
|
||||||
Currency effect
|
—
|
(86
|
)
|
|||||
Ending balance
|
$
|
1,986
|
$
|
1,537
|
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
||||||
Raw materials
|
$
|
70,731
|
$
|
74,081
|
||||
Work in process
|
12,182
|
11,318
|
||||||
Finished goods
|
93,273
|
88,580
|
||||||
FIFO inventories
|
176,186
|
173,979
|
||||||
Excess of FIFO over LIFO
|
(29,843
|
)
|
(30,192
|
)
|
||||
Total inventories
|
$
|
146,343
|
$
|
143,787
|
(Amounts in thousands)
|
Estimated
Useful
Lives
|
4/27/2013
|
4/28/2012
|
|||||||||
Buildings and building fixtures
|
3-40 years
|
$
|
171,346
|
$
|
168,451
|
|||||||
Machinery and equipment
|
3-15 years
|
141,924
|
141,476
|
|||||||||
Information systems and software
|
3-10 years
|
62,005
|
56,621
|
|||||||||
Land
|
—
|
18,433
|
15,158
|
|||||||||
Land improvements
|
3-30 years
|
10,772
|
10,772
|
|||||||||
Transportation equipment
|
3-10 years
|
17,855
|
17,595
|
|||||||||
Furniture and fixtures
|
3-20 years
|
14,204
|
12,335
|
|||||||||
Construction in progress
|
4,496
|
7,249
|
||||||||||
|
441,035
|
429,657
|
||||||||||
Accumulated depreciation
|
(322,975
|
)
|
(315,291
|
)
|
||||||||
Net property, plant and equipment
|
$
|
118,060
|
$
|
114,366
|
Fiscal 2013
|
|
|
|
|||||||||
(Amounts in thousands)
|
Gross
Unrealized Gains
|
Gross
Unrealized Losses
|
Fair Value
|
|||||||||
Equity securities
|
$
|
296
|
$
|
(152
|
)
|
$
|
6,668
|
|||||
Fixed income
|
159
|
(1
|
)
|
33,076
|
||||||||
Mutual funds
|
—
|
—
|
1,126
|
|||||||||
Other
|
1
|
(3
|
)
|
220
|
||||||||
Total securities
|
$
|
456
|
$
|
(156
|
)
|
$
|
41,090
|
|||||
|
||||||||||||
Fiscal 2012
|
||||||||||||
(Amounts in thousands)
|
Gross
Unrealized Gains
|
Gross
Unrealized Losses
|
Fair Value
|
|||||||||
Equity securities
|
$
|
2,806
|
$
|
(83
|
)
|
$
|
7,237
|
|||||
Fixed income
|
102
|
(7
|
)
|
2,850
|
||||||||
Mutual funds
|
—
|
—
|
950
|
|||||||||
Other
|
—
|
—
|
163
|
|||||||||
Total securities
|
$
|
2,908
|
$
|
(90
|
)
|
$
|
11,200
|
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
4/30/2011
|
|||||||||
Proceeds from sales
|
$
|
18,662
|
$
|
5,622
|
$
|
7,448
|
||||||
Gross realized gains
|
4,486
|
573
|
592
|
|||||||||
Gross realized losses
|
(1,316
|
)
|
(54
|
)
|
(63
|
)
|
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
||||||
Payroll and other compensation
|
$
|
39,270
|
$
|
36,638
|
||||
Accrued product warranty, current portion
|
9,532
|
8,230
|
||||||
Customer deposits
|
15,852
|
12,204
|
||||||
Other current liabilities
|
34,454
|
34,228
|
||||||
Accrued expenses and other current liabilities
|
$
|
99,108
|
$
|
91,300
|
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
||||||
Industrial revenue bonds
|
$ |
7,100
|
$ |
7,131
|
||||
Other debt
|
—
|
1,984
|
||||||
Capital leases
|
989
|
645
|
||||||
Total debt
|
8,089
|
9,760
|
||||||
Less: current portion
|
(513
|
)
|
(1,829
|
)
|
||||
Long-term debt
|
$
|
7,576
|
$
|
7,931
|
(Amounts in thousands)
|
Future
Minimum
Rentals
|
Future
Minimum
Income
|
||||||
2014
|
$
|
46,562
|
$
|
3,651
|
||||
2015
|
46,428
|
3,669
|
||||||
2016
|
41,962
|
3,772
|
||||||
2017
|
39,281
|
3,664
|
||||||
2018
|
36,342
|
3,634
|
||||||
2019 and beyond
|
108,616
|
13,614
|
||||||
Total
|
$
|
319,191
|
$
|
32,004
|
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
4/30/2011
|
|||||||||
Rental expense
|
$
|
48,265
|
$
|
48,544
|
$
|
50,318
|
||||||
Rental income
|
4,946
|
4,509
|
3,369
|
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
||||||
Beginning of year net actuarial loss
|
$
|
45,270
|
$
|
27,118
|
||||
Net current year actuarial loss
|
6,499
|
19,787
|
||||||
Amortization of actuarial loss
|
(3,024
|
)
|
(1,635
|
)
|
||||
End of year net actuarial loss
|
$
|
48,745
|
$
|
45,270
|
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
4/30/2011
|
||||||||||
Service cost
|
$
|
1,231
|
$
|
1,110
|
$
|
1,187
|
|||||||
Interest cost
|
5,325
|
5,565
|
5,531
|
||||||||||
Expected return on plan assets
|
(6,855
|
)
|
(6,820
|
)
|
(6,027
|
)
|
|||||||
Net amortization and deferral
|
3,024
|
1,635
|
1,773
|
||||||||||
Net periodic pension cost (hourly plan)
|
2,725
|
1,490
|
2,464
|
||||||||||
401 (k)* |
|
2,978
|
2,476
|
2,578
|
|||||||||
Profit sharing*
|
2,278
|
—
|
—
|
||||||||||
Other*
|
191
|
107
|
342
|
||||||||||
Total retirement costs (excluding non-qualified defined benefit retirement plan)
|
$
|
8,172
|
$
|
4,073
|
$
|
5,384
|
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
||||||
Change in benefit obligation
|
|
|
||||||
Benefit obligation at beginning of year
|
$
|
118,347
|
$
|
101,602
|
||||
Service cost
|
1,231
|
1,110
|
||||||
Interest cost
|
5,325
|
5,565
|
||||||
Actuarial loss
|
8,178
|
15,314
|
||||||
Benefits paid
|
(9,586
|
)
|
(5,244
|
)
|
||||
Benefit obligation at end of year
|
123,495
|
118,347
|
||||||
|
||||||||
Change in plan assets
|
||||||||
Fair value of plan assets at beginning of year
|
89,002
|
86,100
|
||||||
Actual return on plan assets
|
9,060
|
2,659
|
||||||
Employer contributions
|
23,480
|
5,798
|
||||||
Other expenses
|
(526
|
)
|
(311
|
)
|
||||
Benefits paid
|
(9,586
|
)
|
(5,244
|
)
|
||||
Fair value of plan assets at end of year
|
111,430
|
89,002
|
||||||
|
||||||||
Funded status
|
$
|
(12,065
|
)
|
$
|
(29,345
|
)
|
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
||||||
Other long-term liabilities
|
$
|
(12,065
|
)
|
$
|
(29,345
|
)
|
|
4/27/2013
|
4/28/2012
|
4/30/2011
|
|||||||||
Discount rate used to determine benefit obligations
|
4.0
|
%
|
4.6
|
%
|
5.6
|
%
|
||||||
Discount rate used to determine net benefit cost
|
4.6
|
%
|
5.6
|
%
|
5.9
|
%
|
||||||
Long-term rate of return
|
6.3
|
%
|
7.8
|
%
|
8.0
|
%
|
|
4/27/2013
|
4/28/2012
|
||||||
Equity securities
|
57
|
%
|
67
|
%
|
||||
Fixed income
|
29
|
%
|
31
|
%
|
||||
Cash and equivalents
|
14
|
%
|
2
|
%
|
||||
Total
|
100
|
%
|
100
|
%
|
Fiscal 2013
|
|
|
|
|||||||||
(Amounts in thousands)
|
Level 1 (a)
|
Level 2 (a)
|
Level 3
|
|||||||||
Cash and equivalents
|
$
|
429
|
$
|
15,767
|
$
|
—
|
||||||
Equity funds
|
47,047
|
16,140
|
—
|
|||||||||
Debt funds
|
—
|
32,047
|
—
|
|||||||||
Total
|
$
|
47,476
|
$
|
63,954
|
$
|
—
|
(a) | There were no transfers between Level 1 and Level 2 during fiscal 2013. |
Fiscal 2012
|
|
|
|
|||||||||
(Amounts in thousands)
|
Level 1 (b)
|
Level 2 (b)
|
Level 3
|
|||||||||
Cash and equivalents
|
$
|
359
|
$
|
1,377
|
$
|
—
|
||||||
Equity funds
|
44,725
|
15,071
|
—
|
|||||||||
Debt funds
|
—
|
27,470
|
—
|
|||||||||
Total
|
$
|
45,084
|
$
|
43,918
|
$
|
—
|
(b) | There were no transfers between Level 1 and Level 2 during fiscal 2012. |
(Amounts in thousands)
|
Benefit
Payments
|
|||
2014
|
$
|
5,331
|
||
2015
|
5,387
|
|||
2016
|
5,493
|
|||
2017
|
5,653
|
|||
2018
|
5,811
|
|||
2019 to 2024
|
32,014
|
|||
|
$
|
59,689
|
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
||||||
Balance as of the beginning of the year
|
$
|
14,327
|
$
|
13,854
|
||||
Accruals during the year
|
15,370
|
15,074
|
||||||
Settlements during the year
|
(14,172
|
)
|
(14,601
|
)
|
||||
Balance as of the end of the year
|
$
|
15,525
|
$
|
14,327
|
(Shares/units in millions)
|
|
Shares/units
granted
|
|
Liability/
Equity
award
|
|
Settlement
|
Stock options
|
|
0.2
|
|
Equity
|
|
Common shares
|
Stock appreciation rights (“SARs”)
|
|
0.1
|
|
Liability
|
|
Cash
|
Restricted stock units – employees
|
|
0.2
|
|
Liability
|
|
Cash
|
Restricted stock units – directors
|
|
Less than 0.1
|
|
Equity
|
|
Common shares
|
Performance-based units
|
|
0.1
|
|
Liability
|
|
Cash
|
Performance-based shares
|
|
0.1
|
|
Equity
|
|
Common shares
|
(Amounts in millions)
|
4/27/2013
|
4/28/2012
|
4/30/2011
|
|||||||||
Equity-based awards expense
|
$
|
11.5
|
$
|
5.7
|
$
|
3.7
|
||||||
Liability-based awards expense (income)
|
2.1
|
0.4
|
(0.5
|
)
|
||||||||
Total stock-based compensation expense
|
$
|
13.6
|
$
|
6.1
|
$
|
3.2
|
|
Number of
Shares
(In
Thousands)
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term (Years)
|
Aggregate
Intrinsic
Value
|
||||||||||||
Outstanding at
April 28, 2012
|
1,755
|
$
|
9.33
|
3.7
|
|
|||||||||||
Granted
|
230
|
11.97
|
|
|||||||||||||
Exercised
|
(554
|
)
|
5.72
|
$
|
5,978
|
|||||||||||
Expired
|
(157
|
)
|
22.56
|
|||||||||||||
Canceled
|
(18
|
)
|
7.05
|
|||||||||||||
Outstanding at April 27, 2013
|
1,256
|
$
|
9.78
|
4.7
|
$
|
10,537
|
||||||||||
Exercisable at April 27, 2013
|
490
|
$
|
12.19
|
2.8
|
$
|
3,291
|
4/27/2013
|
4/28/2012
|
4/30/2011
|
||||||||||
Risk-free interest rate
|
0.75
|
%
|
1.5
|
%
|
0.75
|
%
|
||||||
Dividend rate
|
0
|
%
|
0
|
%
|
0
|
%
|
||||||
Expected life in years
|
5.0
|
5.5
|
3.0
|
|||||||||
Stock price volatility
|
83.8
|
%
|
88.8
|
%
|
86.6
|
%
|
||||||
Turnover rate
|
0
|
%
|
4.0
|
%
|
3.0
|
%
|
||||||
Fair value per share
|
$
|
7.87
|
$
|
6.68
|
$
|
4.27
|
4/27/2013
|
||||
Risk-free interest rate
|
0.82
|
%
|
||
Dividend rate
|
0.9
|
%
|
||
Expected life in years
|
4.2
|
|||
Stock price volatility
|
72.2
|
%
|
||
Fair value per share
|
$
|
10.69
|
|
Number of
Shares
(In Thousands)
|
Weighted Average
Grant Date Fair
Value
|
||||||
Non-vested shares at April 28, 2012
|
973
|
$
|
6.58
|
|||||
Granted
|
—
|
—
|
||||||
Vested
|
(413
|
)
|
6.34
|
|||||
Canceled
|
(30
|
)
|
7.30
|
|||||
Non-vested shares at April 27, 2013
|
530
|
$
|
6.67
|
|||||
Awards granted during fiscal 2012
|
$
|
6.58
|
||||||
Awards granted during fiscal 2011
|
$
|
6.41
|
|
Number of
Units
(In Thousands)
|
Weighted Average
Grant Date Fair
Value
|
||||||
Non-vested units at April 28, 2012
|
7
|
$
|
6.10
|
|||||
Granted
|
160
|
12.06
|
||||||
Vested
|
(2
|
)
|
5.17
|
|||||
Canceled
|
(9
|
)
|
11.97
|
|||||
Non-vested units at April 27, 2013
|
156
|
$
|
11.91
|
Performance-based award earned
|
Number of
Shares/Units
(In Millions)
|
|||
Fiscal 2011 performance-based shares
|
0.2
|
|||
Fiscal 2013 performance-based shares
|
0.1
|
|||
Fiscal 2013 performance-based units
|
0.1
|
(Amounts in millions)
|
4/27/2013
|
4/28/2012
|
4/30/2011
|
|||||||||
Fiscal 2011 grant
|
$
|
1.7
|
$
|
0.2
|
$
|
—
|
||||||
Fiscal 2012 grant
|
$
|
5.5
|
$
|
1.4
|
$
|
—
|
||||||
Fiscal 2013 grant
|
$
|
0.4
|
$
|
—
|
$
|
—
|
(Amounts in thousands)
|
Unrealized
gain on
marketable
securities
|
Translation
adjustment
|
Change in
fair value
of cash
flow hedge
|
Net pension
amortization
and net
actuarial loss
|
Accumulated
other
comprehensive
loss
|
|||||||||||||||
Balance at April 28,2012
|
$
|
3,017
|
$
|
4,029
|
$
|
—
|
$
|
(38,327
|
)
|
$
|
(31,281
|
)
|
||||||||
Changes before reclassifications
|
651
|
750
|
373
|
(7,645
|
)
|
(5,871
|
)
|
|||||||||||||
Amounts reclassified from accumulated other comprehensive loss
|
(3,170
|
)
|
—
|
—
|
3,140
|
(30
|
)
|
|||||||||||||
Tax effect
|
(24
|
)
|
—
|
(142
|
)
|
1,852
|
1,686
|
|||||||||||||
Other comprehensive income (loss) attributable to La-Z-Boy Incorporated
|
(2,543
|
)
|
750
|
231
|
(2,653
|
)
|
(4,215
|
)
|
||||||||||||
Balance at April 27, 2013
|
$
|
474
|
$
|
4,779
|
$
|
231
|
$
|
(40,980
|
)
|
$
|
(35,496
|
)
|
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
4/30/2011
|
|||||||||
Sales
|
|
|
|
|||||||||
Upholstery segment:
|
|
|
|
|||||||||
Sales to external customers
|
$
|
939,736
|
$
|
871,511
|
$
|
831,603
|
||||||
Intersegment sales
|
127,311
|
103,592
|
85,264
|
|||||||||
Upholstery segment sales
|
1,067,047
|
975,103
|
916,867
|
|||||||||
Casegoods segment:
|
||||||||||||
Sales to external customers
|
125,753
|
133,479
|
147,539
|
|||||||||
Intersegment sales
|
8,241
|
6,160
|
4,995
|
|||||||||
Casegoods segment sales
|
133,994
|
139,639
|
152,534
|
|||||||||
Retail segment sales
|
264,723
|
215,490
|
176,987
|
|||||||||
VIEs, net of intercompany sales eliminations
|
—
|
8,840
|
29,105
|
|||||||||
Corporate and Other
|
2,313
|
2,356
|
1,909
|
|||||||||
Eliminations
|
(135,552
|
)
|
(109,752
|
)
|
(90,259
|
)
|
||||||
Consolidated sales
|
$
|
1,332,525
|
$
|
1,231,676
|
$
|
1,187,143
|
Operating Income (Loss)
|
|
|
|
|||||||||
Upholstery segment
|
$
|
96,762
|
$
|
81,753
|
$
|
72,743
|
||||||
Casegoods segment
|
2,640
|
5,540
|
6,698
|
|||||||||
Retail segment
|
4,099
|
(7,819
|
)
|
(15,078
|
)
|
|||||||
VIEs
|
—
|
959
|
(4,949
|
)
|
||||||||
Restructuring
|
(2,715
|
)
|
(281
|
)
|
(487
|
)
|
||||||
Write-down of long-lived assets
|
—
|
—
|
(4,471
|
)
|
||||||||
Corporate and Other
|
(33,159
|
)
|
(30,521
|
)
|
(28,547
|
)
|
||||||
Consolidated operating income
|
$
|
67,627
|
$
|
49,631
|
$
|
25,909
|
||||||
|
||||||||||||
Depreciation and Amortization
|
||||||||||||
Upholstery segment
|
$
|
14,452
|
$
|
12,696
|
$
|
13,260
|
||||||
Casegoods segment
|
1,338
|
1,575
|
1,655
|
|||||||||
Retail segment
|
2,676
|
2,832
|
3,174
|
|||||||||
VIEs
|
—
|
149
|
942
|
|||||||||
Corporate and Other
|
4,674
|
6,234
|
5,271
|
|||||||||
Consolidated depreciation and amortization
|
$
|
23,140
|
$
|
23,486
|
$
|
24,302
|
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
4/30/2011
|
|||||||||
Capital Expenditures
|
|
|
|
|||||||||
Upholstery segment
|
$
|
10,385
|
$
|
7,406
|
$
|
5,510
|
||||||
Casegoods segment
|
1,058
|
897
|
689
|
|||||||||
Retail segment
|
4,251
|
1,848
|
141
|
|||||||||
VIEs
|
—
|
543
|
395
|
|||||||||
Corporate and Other
|
10,218
|
4,969
|
3,805
|
|||||||||
Consolidated capital expenditures
|
$
|
25,912
|
$
|
15,663
|
$
|
10,540
|
||||||
|
||||||||||||
Assets
|
||||||||||||
Upholstery segment
|
$
|
296,108
|
$
|
303,537
|
$
|
305,363
|
||||||
Casegoods segment
|
70,147
|
73,888
|
76,724
|
|||||||||
Retail segment
|
73,496
|
49,818
|
46,773
|
|||||||||
VIEs
|
—
|
—
|
5,022
|
|||||||||
Unallocated assets
|
280,620
|
258,496
|
159,573
|
|||||||||
Consolidated assets
|
$
|
720,371
|
$
|
685,739
|
$
|
593,455
|
||||||
|
||||||||||||
Long-Lived Assets by Geographic Location
|
||||||||||||
Domestic
|
$
|
133,208
|
$
|
114,979
|
$
|
119,445
|
||||||
International
|
8,168
|
8,345
|
10,418
|
|||||||||
Consolidated long-lived assets
|
$
|
141,376
|
$
|
123,324
|
$
|
129,863
|
||||||
|
||||||||||||
Sales by Country
|
||||||||||||
United States
|
87
|
%
|
87
|
%
|
87
|
%
|
||||||
Canada
|
8
|
%
|
8
|
%
|
9
|
%
|
||||||
Other
|
5
|
%
|
5
|
%
|
4
|
%
|
||||||
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
4/30/2011
|
|||||||||
United States
|
$
|
63,218
|
$
|
60,538
|
$
|
21,331
|
||||||
Foreign
|
7,492
|
6,319
|
4,635
|
|||||||||
Total
|
$
|
70,710
|
$
|
66,857
|
$
|
25,966
|
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
4/30/2011
|
|||||||||
Federal – current
|
$
|
16,873
|
$
|
14,392
|
$
|
5,935
|
||||||
– deferred
|
1,524
|
(38,396
|
)
|
—
|
||||||||
State – current
|
2,718
|
3,663
|
930
|
|||||||||
– deferred
|
493
|
(1,843
|
)
|
700
|
||||||||
Foreign – current
|
739
|
2,040
|
1,848
|
|||||||||
– deferred
|
1,181
|
(1,907
|
)
|
(820
|
)
|
|||||||
Total income tax expense (benefit)
|
$
|
23,528
|
$
|
(22,051
|
)
|
$
|
8,593
|
(% of pre-tax income)
|
4/27/2013
|
4/28/2012
|
4/30/2011
|
|||||||||
Statutory tax rate
|
35.0
|
%
|
35.0
|
%
|
35.0
|
%
|
||||||
Increase (reduction) in income taxes resulting from:
|
||||||||||||
State income taxes, net of federal benefit
|
3.0
|
5.0
|
4.1
|
|||||||||
U.S. manufacturing benefit
|
(2.0
|
)
|
(2.3
|
)
|
(1.9
|
)
|
||||||
Change in valuation allowance
|
(0.3
|
)
|
(69.1
|
)
|
13.5
|
|||||||
Change in value of life insurance contracts
|
(0.4
|
)
|
—
|
(0.6
|
)
|
|||||||
Tax benefit associated with VIE acquisition
|
—
|
|
—
|
(17.6
|
)
|
|||||||
Gain on sale of marketable securities
|
(1.6
|
)
|
—
|
—
|
||||||||
Miscellaneous items
|
(0.4
|
)
|
(1.6
|
)
|
0.6
|
|||||||
Effective tax rate
|
33.3
|
%
|
(33.0
|
)%
|
33.1
|
%
|
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
||||||
Assets
|
|
|
||||||
Deferred and other compensation
|
$
|
19,510
|
$
|
15,043
|
||||
Allowance for doubtful accounts
|
9,567
|
9,547
|
||||||
State income tax – net operating losses, credits and other
|
6,542
|
5,911
|
||||||
Pension
|
4,632
|
11,220
|
||||||
Warranty
|
5,937
|
5,436
|
||||||
Rent
|
4,697
|
4,590
|
||||||
Workers’ compensation
|
3,804
|
3,485
|
||||||
Foreign net operating loss
|
759
|
914
|
||||||
Capital loss carryover
|
—
|
3,202
|
||||||
Other
|
5,128
|
4,213
|
||||||
Valuation allowance
|
(6,619
|
)
|
(8,258
|
)
|
||||
Total deferred tax assets
|
53,957
|
55,303
|
||||||
Liabilities
|
||||||||
Property, plant and equipment
|
(2,745
|
)
|
(2,573
|
)
|
||||
Net deferred tax assets
|
$
|
51,212
|
$
|
52,730
|
(Amounts in thousands)
|
Amount
|
Expiration
|
|||
Various U.S. state net operating losses (excluding federal tax effect)
|
$
|
10,064
|
Fiscal 2014 – 2033
|
||
Foreign net operating losses
|
759
|
Fiscal 2018 – 2029
|
|||
Foreign capital losses
|
23
|
Indefinite
|
Jurisdiction |
4/28/2012
|
4/27/2013
|
||||||||||
(Amounts in thousands)
|
Valuation
Allowance
|
Change
|
Valuation
Allowance
|
|||||||||
U.S. federal
|
$
|
2,114
|
$
|
(2,114
|
)
|
$
|
—
|
|||||
U.S. state
|
6,121
|
343
|
6,464
|
|||||||||
Foreign
|
23
|
132
|
155
|
|||||||||
Total
|
$
|
8,258
|
$
|
(1,639
|
)
|
$
|
6,619
|
(
Amounts in thousands
)
|
4/27/2013
|
4/28/2012
|
4/30/2011
|
|||||||||
Balance at the beginning of the period
|
$
|
3,909
|
$
|
4,492
|
$
|
4,805
|
||||||
Additions:
|
||||||||||||
Positions taken during the current year
|
338
|
147
|
100
|
|||||||||
Positions taken during the prior year
|
—
|
—
|
229
|
|||||||||
Reductions:
|
||||||||||||
Positions taken during the current year
|
—
|
—
|
—
|
|||||||||
Positions taken during the prior year
|
(28
|
)
|
(202
|
)
|
(359
|
)
|
||||||
Decreases related to settlements with taxing authorities
|
—
|
|
(166
|
)
|
(202
|
)
|
||||||
Reductions resulting from the lapse of the statute of limitations
|
(971
|
)
|
(362
|
)
|
(81
|
)
|
||||||
Balance at the end of the period
|
$
|
3,248
|
$
|
3,909
|
$
|
4,492
|
|
Year Ended
|
|||||||||||
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
4/30/2011
|
|||||||||
Numerator (basic and diluted):
|
|
|
|
|||||||||
Net income attributable to La-Z-Boy Incorporated
|
$
|
46,389
|
$
|
87,966
|
$
|
24,047
|
||||||
Income allocated to participating securities
|
(639
|
)
|
(1,650
|
)
|
(472
|
)
|
||||||
Net income available to common shareholders
|
$
|
45,750
|
$
|
86,316
|
$
|
23,575
|
|
Year Ended
|
|||||||||||
(Amounts in thousands)
|
4/27/2013
|
4/28/2012
|
4/30/2011
|
|||||||||
Denominator:
|
|
|
|
|||||||||
Basic weighted average common shares outstanding
|
52,351
|
51,944
|
51,849
|
|||||||||
Add:
|
||||||||||||
Contingent common shares
|
812
|
—
|
—
|
|||||||||
Stock option dilution
|
522
|
534
|
430
|
|||||||||
Diluted weighted average common shares outstanding
|
53,685
|
52,478
|
52,279
|
· | Level 1 — Financial assets and liabilities whose values 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 whose values are based on quoted prices in markets that are not active or model inputs that are observable for substantially the full term of the asset or liability. |
· | Level 3 — Financial assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. |
Fiscal 2013
|
Fair Value Measurements
|
|||||||||||
(Amounts in thousands)
|
Level 1 (a)
|
Level 2 (a)
|
Level 3
|
|||||||||
Assets
|
|
|
|
|||||||||
Available-for-sale securities
|
$
|
1,217
|
$
|
38,747
|
$
|
—
|
||||||
Trading securities
|
—
|
1,126
|
—
|
|||||||||
Total
|
$
|
1,217
|
$
|
39,873
|
$
|
—
|
(a) | There were no transfers between Level 1 and Level 2 during fiscal 2013. |
Fiscal 2012
|
Fair Value Measurements
|
|||||||||||
(Amounts in thousands)
|
Level 1 (b)
|
Level 2 (b)
|
Level 3
|
|||||||||
Assets
|
|
|
|
|||||||||
Available-for-sale securities
|
$
|
2,886
|
$
|
7,364
|
$
|
—
|
||||||
Trading securities
|
—
|
950
|
—
|
|||||||||
Total
|
$
|
2,886
|
$
|
8,314
|
$
|
—
|
(b) | There were no transfers between Level 1 and Level 2 during fiscal 2012. |
(1) | Financial Statements: |
(2) | Financial Statement Schedules: |
(3) | Exhibits: |
Exhibit
Number
|
Description
|
(2)
|
Not applicable
|
(3.1)
|
La-Z-Boy Incorporated Restated Articles of Incorporation (
Incorporated by reference to an exhibit to Form 10-Q for the quarter ended October 26, 1996)
|
(3.2)
|
La-Z-Boy Incorporated Amendment to Restated Articles of Incorporation effective August 21, 1998 (
Incorporated by reference to an exhibit to Form 10-Q for the quarter ended October 27, 2012)
|
(3.3)
|
La-Z-Boy Incorporated Amendment to Restated Articles of Incorporation effective August 22, 2008 (Incorporated by reference to an exhibit to Form 10-Q for the quarter ended October 27, 2012)
|
(3.4)
|
La-Z-Boy Incorporated Amendment to Restated Articles of Incorporation effective August 24, 2012 (Incorporated by reference to an exhibit to Form 10-Q for the quarter ended October 27, 2012)
|
(3.5)
|
La-Z-Boy Incorporated Amended and Restated Bylaws (as of May 3, 2011) (Incorporated by reference to an exhibit to Form 8-K filed May 6, 2011)
|
(4.1)
|
Amended and Restated Credit Agreement dated as of October 19, 2011, among La-Z-Boy Incorporated, certain of its subsidiaries, the lenders named therein, and Wells Fargo Capital Finance, LLC, as administrative agent for the lenders (Incorporated by reference to an exhibit to Form 8-K filed October 21, 2011)
|
(9)
|
Not applicable
|
(10.1)*
|
La-Z-Boy Incorporated Restricted Stock Plan for Non-Employee Directors, amended and restated through August 12, 2003 (Incorporated by reference to an exhibit to definitive proxy statement dated July 9, 2003)
|
(10.2)*
|
La-Z-Boy Incorporated Deferred Stock Unit Plan for Non-Employee Directors (Incorporated by reference to an exhibit to Form 10-Q for the quarter ended October 25, 2008)
|
(10.3)*
|
La-Z-Boy Incorporated 1997 Incentive Stock Option Plan (Incorporated by reference to an exhibit to definitive proxy statement dated June 27, 1997)
|
(10.4)*
|
Form of Change in Control Agreement in effect for: Kurt L. Darrow. Similar agreements are in effect for Steven M. Kincaid, Louis M. Riccio, Jr., Otis Sawyer and Mark S. Bacon, Sr., except the provisions related to the periods for protection and benefits are twenty-four months (Incorporated by reference to an exhibit to Form 10-K for the fiscal year ended April 24, 2010)
|
(10.5)*
|
Form of Indemnification Agreement (covering all directors, including employee-directors) (Incorporated by reference to an exhibit to Form 8-K, filed January 22, 2009)
|
(10.6)*
|
2005 La-Z-Boy Incorporated Executive Deferred Compensation Plan, amended and restated as of November 18, 2008 (Incorporated by reference to an exhibit to Form 10-Q for the quarter ended October 24, 2009)
|
(10.7)*
|
La-Z-Boy Incorporated 2004 Long-Term Equity Award Plan as amended through June 13, 2008 (Incorporated by reference to an exhibit to Form 10-K for the fiscal year ended April 26, 2008)
|
(10.8)*
|
First 2009 Amendment to La-Z-Boy Incorporated 2004 Long-Term Equity Award Plan effective June 11, 2009 (Incorporated by reference to an exhibit to Form 10-K for the fiscal year ended April 25, 2009)
|
(10.9)*
|
Second 2009 Amendment to La-Z-Boy Incorporated 2004 Long-Term Equity Award Plan effective June 15, 2009 (Incorporated by reference to an exhibit to Form 10-K for the fiscal year ended April 25, 2009)
|
(10.10)*
|
Sample award agreement under the 2004 Long-Term Equity Award Plan (
Incorporated by reference to an exhibit to Form 10-K for the fiscal year ended April 29, 2006
)
|
|
|
Additions
|
|
|
|
|
||||||||||||||||
Description
|
Balance at
Beginning
of Year
|
Charged to
Costs and
Expenses
|
Charged to
Other
Accounts
|
|
Deductions
|
|
Balance at
End of
Year
|
|||||||||||||||
Allowance for doubtful accounts, deducted from accounts receivable:
|
|
|
|
|
|
|
|
|||||||||||||||
April 27, 2013
|
$
|
22,254
|
$
|
495
|
$
|
—
|
|
$
|
(1,142
|
)(a)
|
|
$
|
21,607
|
|||||||||
April 28, 2012
|
23,435
|
3,508
|
—
|
|
(4,689
|
)(a)
|
|
22,254
|
||||||||||||||
April 30, 2011
|
19,621
|
5,612
|
—
|
|
(1,798
|
)(a)
|
|
23,435
|
||||||||||||||
|
|
|||||||||||||||||||||
Allowance for deferred tax assets:
|
|
|||||||||||||||||||||
April 27, 2013
|
$
|
8,258
|
$
|
131
|
$
|
(1,572
|
)(c
|
)
|
$
|
(198
|
)(d)
|
|
$
|
6,619
|
||||||||
April 28, 2012
|
52,613
|
160
|
1,687
|
(c)
|
(46,202
|
)(d)
|
|
8,258
|
||||||||||||||
April 30, 2011
|
57,976
|
4,582
|
(8,391
|
)(c
|
)
|
(1,554
|
)(b)
|
|
52,613
|
DATE: June 18, 2013
|
LA-Z-BOY INCORPORATED
|
|
|
|
|
BY
|
/s/ Kurt L. Darrow
|
|
|
Chairman, President and Chief Executive Officer
|
/s/K.L. Darrow
|
|
/s/J.H. Foss
|
K.L. Darrow
|
|
J.H. Foss
|
Chairman, President and Chief Executive Officer, Director
|
|
Director
|
|
|
|
/s/R.M. Gabrys
|
|
/s/D.K. Hehl
|
R.M. Gabrys
|
|
D.K. Hehl
|
Director
|
|
Director
|
|
|
|
/s/H.G. Levy
|
|
/s/E.J. Holman
|
H.G. Levy
|
|
E.J. Holman
|
Director
|
|
Director
|
|
|
|
/s/W.A. McCollough
|
|
/s/N.R. Qubein
|
W.A. McCollough
|
|
N.R. Qubein
|
Director
|
|
Director
|
|
|
|
/s/J.E. Kerr
|
|
/s/J.L. Gurwitch
|
J.E. Kerr
|
|
J.L. Gurwitch
|
Director
|
|
Director
|
|
|
|
/s/M.L. Mueller
|
|
/s/L.M. Riccio, Jr.
|
M.L. Mueller
|
|
L.M. Riccio, Jr.
|
Vice President, Corporate Controller and Chief Accounting Officer
|
|
Senior Vice President, Chief Financial Officer
|
ARTICLE I
DEFINITIONS
|
||
|
||
Section 1.1
|
“Account”
|
1
|
Section 1.2
|
“Administrator”
|
1
|
Section 1.3
|
“Board”
|
1
|
Section 1.4
|
“Code”
|
1
|
Section 1.5
|
“Effective Date”
|
1
|
Section 1.6
|
“Employee”
|
1
|
Section 1.7
|
“Employer”
|
1
|
Section 1.8
|
“Executive Management Employee”
|
1
|
Section 1.9
|
“Executive Officer”
|
1
|
Section 1.10
|
“Key Employee”
|
1
|
Section 1.11
|
“Participant”
|
2
|
Section 1.12
|
“Participating Employer”
|
2
|
Section 1.13
|
“Plan”
|
2
|
Section 1.14
|
“Separation from Service”
|
2
|
Section 1.15
|
“Year of Vesting Service”
|
2
|
|
|
|
ARTICLE II
PARTICIPATION
|
||
|
||
Section 2.1
|
Participation
|
2
|
Section 2.2
|
Loss of Participant Status
|
2
|
|
|
|
ARTICLE III
CONTRIBUTION UNITS
|
||
|
||
Section 3.1
|
Contribution Credits
|
3
|
Section 3.2
|
Earnings Credits
|
3
|
Section 3.3
|
Erroneous Credits
|
3
|
|
|
|
ARTICLE IV
VESTING
|
||
|
||
|
Vesting
|
3
|
|
||
ARTICLE V
ACCOUNTS
|
||
|
||
Section 5.1
|
Accounts
|
3
|
Section 5.2
|
Adjustments
|
3
|
|
|
Page
|
|
|
|
ARTICLE VI
DISTRIBUTIONS
|
||
Section 6.1
|
Account Distributions and Limitations
|
4
|
Section 6.2
|
Withholding and Return of Distributions
|
6
|
ARTICLE VII
BENEFICIARIES
|
||
|
||
Section 7.1
|
Beneficiaries
|
6
|
Section 7.2
|
Lost Beneficiary
|
6
|
|
||
ARTICLE VIII
FUNDING
|
||
|
||
|
Funding
|
7
|
|
||
ARTICLE IX
CLAIMS ADMINISTRATION
|
||
|
||
Section 9.1
|
General
|
7
|
Section 9.2
|
Claim Review
|
7
|
Section 9.3
|
Hearing
|
8
|
|
|
|
ARTICLE X
GENERAL PROVISIONS
|
||
|
||
Section 10.1
|
Administrator
|
8
|
Section 10.2
|
No Assignment
|
8
|
Section 10.3
|
No Employment Rights
|
9
|
Section 10.4
|
Incompetence
|
10
|
Section 10.5
|
Identity
|
10
|
Section 10.6
|
Other Benefits
|
10
|
Section 10.7
|
Expenses
|
10
|
Section 10.8
|
Amendment and Termination
|
10
|
Section 10.9
|
Employer Determinations
|
10
|
Section 10.10
|
Construction
|
10
|
Section 10.11
|
Governing Law
|
10
|
Section 10.12
|
Severability
|
11
|
Section 10.13
|
Headings
|
11
|
Section 10.14
|
Terms
|
11
|
Section 10.15
|
Notices
|
11
|
i = | the monthly equivalent of the bond yield for 20-year AA Corporate bonds as published by Yahoo Finance (or a similar service if unavailable) as determined as of the end of the month of the Participant’s Separation from Service; and |
n = | 60, 120 or 240, respectively, depending on the choice of a 5-, 10-, or 20-year payment period selected by the participant. |
La-Z-Boy Incorporated
|
|||
By:
|
|||
Print name:
|
|||
Title:
|
Name
Of
Participant
|
Employer
|
|
Participation
Date
|
|
||
|
|
|
|
|
|
|
Executive Officers
:
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
Executive Management Employees
:
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
To:
|
|
Date:
|
|
Beneficiary Designations (Names and Percentages):
|
||
|
|
|
|
|
|
|
|
|
|
|
Participant Signature:
|
|
Date:
|
|
|
|
||
|
Date Received by Administrator:
|
Subsidiary
|
Jurisdiction of
Incorporation
|
Alexvale Furniture, Inc.
|
North Carolina
|
Bauhaus U.S.A., Inc.
|
Mississippi
|
Boca Raton Galleries, LLC
|
Michigan
|
England, Inc.
|
Michigan
|
Kincaid Furniture Company, Incorporated
|
Delaware
|
La-Z-Boy Asia Co., LTD (50.05%)
|
Thailand
|
La-Z-Boy Canada Limited
|
Ontario, Canada
|
La-Z-Boy Global Limited
|
Michigan
|
La-Z-Boy Greensboro, Inc.
|
North Carolina
|
La-Z-Boy Hospitality, LLC
|
Michigan
|
La-Z-Boy Logistics, Inc.
|
Michigan
|
La-Z-Boy Muebles, S. de R.L.de C.V.
|
Mexico
|
La-Z-Boy Showcase Shoppes, Inc.
|
Indiana
|
La-Z-Boy (Thailand) Ltd. (51%)
|
Thailand
|
LZB Carolina Properties, Inc.
|
Michigan
|
LZB Delaware Valley Inc.
|
Delaware
|
LZB Delaware Valley Properties, Inc.
|
Michigan
|
LZBFG of South Florida, LLC
|
Michigan
|
LZB Finance, Inc.
|
Michigan
|
LZB Furniture Galleries of Boston, Inc.
|
Michigan
|
LZB Furniture Galleries of Kansas City, Inc.
|
Michigan
|
LZB Furniture Galleries of Paramus, Inc.
|
Michigan
|
LZBFG of California, LLC
|
Michigan
|
LZBFG Management Services, Inc.
|
Michigan
|
LZB Furniture Galleries of St. Louis, Inc.
|
Michigan
|
LZB Furniture Galleries of Washington D.C., Inc.
|
Michigan
|
LZB Manufacturing, Inc.
|
Michigan
|
LZB Retail, Inc.
|
Michigan
|
Montgomeryville Home Furnishings, Inc.
|
Pennsylvania
|
Date:
June 18, 2013
|
/s/ Kurt L. Darrow
|
|
|
Kurt L. Darrow
|
|
|
Chairman, President and Chief Executive Officer
|
Date:
June 18, 2013
|
/s/ Louis M. Riccio, Jr.
|
|
|
Louis M. Riccio, Jr.
|
|
|
Senior Vice President and Chief Financial Officer
|
/s/ Kurt L. Darrow
|
|
Kurt L. Darrow
|
|
Chairman, President and Chief Executive Officer
|
|
June 18, 2013
|
|
|
|
/s/ Louis M. Riccio, Jr.
|
|
Louis M. Riccio, Jr.
|
|
Senior Vice President and Chief Financial Officer
|
|
June 18, 2013
|
|