Quarter Ended

(Unaudited, amounts in thousands, except per share data)

10/29/16

10/24/15

Sales

$

376,579

$

382,891

Cost of sales

227,885

237,085

Gross profit

148,694

145,806

Selling, general and administrative expense

115,526

112,412

Operating income

33,168

33,394

Interest expense

117

133

Interest income

234

164

Other income (expense), net

(279

)

512

Income before income taxes

33,006

33,937

Income tax expense

11,901

12,278

Net income

21,105

21,659

Net income attributable to noncontrolling interests

(272

)

(707

)

Net income attributable to La-Z-Boy Incorporated

$

20,833

$

20,952

Basic weighted average common shares

49,153

50,493

Basic net income attributable to La-Z-Boy Incorporated per share

$

0.42

$

0.41

Diluted weighted average common shares

49,511

51,039

Diluted net income attributable to La-Z-Boy Incorporated per share

$

0.42

$

0.41

Dividends declared per share

$

0.10

$

0.08

Six Months Ended

(Unaudited, amounts in thousands, except per share data)

10/29/16

10/24/15

Sales

$

717,362

$

724,314

Cost of sales

435,137

454,276

Gross profit

282,225

270,038

Selling, general and administrative expense

227,289

216,678

Operating income

54,936

53,360

Interest expense

232

245

Interest income

438

369

Other income (expense), net

(351

)

2,480

Income before income taxes

54,791

55,964

Income tax expense

19,678

20,182

Net income

35,113

35,782

Net income attributable to noncontrolling interests

(474

)

(1,154

)

Net income attributable to La-Z-Boy Incorporated

$

34,639

$

34,628

Basic weighted average common shares

49,129

50,538

Basic net income attributable to La-Z-Boy Incorporated per share

$

0.70

$

0.68

Diluted weighted average common shares

49,554

51,076

Diluted net income attributable to La-Z-Boy Incorporated per share

$

0.70

$

0.67

Dividends declared per share

$

0.20

$

0.16

(Unaudited, amounts in thousands, except par value)

10/29/16

4/30/16

Current assets

Cash and equivalents

$

105,571

$

112,358

Restricted cash

8,987

8,977

Receivables, net of allowance of $3,105 at 10/29/16 and $3,145 at 4/30/16

144,575

146,545

Inventories, net

186,710

175,589

Other current assets

39,813

38,503

Total current assets

485,656

481,972

Property, plant and equipment, net

170,620

171,590

Goodwill

47,388

37,193

Other intangible assets

11,736

8,558

Deferred income taxes — long-term

40,140

41,683

Other long-term assets, net

67,504

59,033

Total assets

$

823,044

$

800,029

Current liabilities

Current portion of long-term debt

$

254

$

290

Accounts payable

46,875

44,661

Accrued expenses and other current liabilities

116,498

112,476

Total current liabilities

163,627

157,427

Long-term debt

392

513

Other long-term liabilities

86,848

84,877

Contingencies and commitments

—

—

Shareholders’ equity

Preferred shares — 5,000 authorized; none issued

—

—

Common shares, $1 par value — 150,000 authorized; 49,028 outstanding at 10/29/16 and 49,331 outstanding at 4/30/16

49,028

49,331

Capital in excess of par value

287,290

279,339

Retained earnings

258,906

252,472

Accumulated other comprehensive loss

(33,490

)

(34,000

)

Total La-Z-Boy Incorporated shareholders’ equity

561,734

547,142

Noncontrolling interests

10,443

10,070

Total equity

572,177

557,212

Total liabilities and equity

$

823,044

$

800,029

Six Months Ended

(Unaudited, amounts in thousands)

10/29/16

10/24/15

Cash flows from operating activities

Net income

$

35,113

$

35,782

Adjustments to reconcile net income to cash provided by (used for) operating activities

Deferred income tax expense

1,089

138

Provision for doubtful accounts

(18

)

(426

)

Depreciation and amortization

13,999

12,679

Equity-based compensation expense

5,880

5,123

Pension plan contributions

(2,300

)

(7,000

)

Change in receivables

784

4,980

Change in inventories

(3,747

)

(21,501

)

Change in other assets

(1,868

)

(5,656

)

Change in payables

1,549

(628

)

Change in other liabilities

1,898

(1,768

)

Net cash provided by operating activities

52,379

21,723

Cash flows from investing activities

Proceeds from disposal of assets

143

2,491

Capital expenditures

(10,226

)

(13,949

)

Purchases of investments

(17,814

)

(11,693

)

Proceeds from sales of investments

9,757

19,409

Acquisitions, net of cash acquired

(15,997

)

(19,232

)

Change in restricted cash

(10

)

660

Net cash used for investing activities

(34,147

)

(22,314

)

Cash flows from financing activities

Net proceeds from credit facility

—

4,000

Payments on debt

(156

)

(283

)

Stock issued for stock and employee benefit plans

3,095

253

Excess tax benefit on stock option exercises

1,826

392

Purchases of common stock

(19,766

)

(18,461

)

Dividends paid

(9,869

)

(8,112

)

Net cash used for financing activities

(24,870

)

(22,211

)

Effect of exchange rate changes on cash and equivalents

(149

)

(934

)

Change in cash and equivalents

(6,787

)

(23,736

)

Cash and equivalents at beginning of period

112,358

98,302

Cash and equivalents at end of period

$

105,571

$

74,566

Supplemental disclosure of non-cash investing activities

Capital expenditures included in payables

$

681

$

—

Quarter Ended

Six Months Ended

(Unaudited, amounts in thousands)

10/29/16

10/24/15

10/29/16

10/24/15

Sales

Upholstery segment:

Sales to external customers

$

244,898

$

260,080

$

468,707

$

492,564

Intersegment sales

50,891

45,737

94,498

85,929

Upholstery segment sales

295,789

305,817

563,205

578,493

Casegoods segment:

Sales to external customers

23,567

25,787

44,152

46,989

Intersegment sales

2,321

2,432

6,774

4,623

Casegoods segment sales

25,888

28,219

50,926

51,612

Retail segment sales

107,365

96,480

203,085

183,131

Corporate and Other:

Sales to external customers

749

544

1,418

1,630

Intersegment sales

1,563

750

2,773

1,266

Corporate and Other sales

2,312

1,294

4,191

2,896

Eliminations

(54,775

)

(48,919

)

(104,045

)

(91,818

)

Consolidated sales

$

376,579

$

382,891

$

717,362

$

724,314

Operating Income (Loss)

Upholstery segment

$

37,530

$

37,040

$

67,339

$

61,634

Casegoods segment

2,847

2,634

4,994

4,324

Retail segment

3,007

5,716

5,190

10,445

Corporate and Other

(10,216

)

(11,996

)

(22,587

)

(23,043

)

Consolidated operating income

$

33,168

$

33,394

$

54,936

$

53,360