Form 10-Q LA-Z-BOY INC For: Jan 22

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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January 22, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______

COMMISSION FILE NUMBER 1-9656

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.)

One La-Z-Boy Drive,

Monroe,

Michigan

48162-5138

(Address of principal executive offices)

(Zip Code)

Registrant's telephone number, including area code (734) 242-1444

None

(Former name, former address and former fiscal year, if changed since last report.)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $1.00 Par Value

LZB

New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:


Class						Outstanding at February 8, 2022
Common Stock, $1.00 Par Value						43,222,357

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LA-Z-BOY INCORPORATED

FORM 10-Q THIRD QUARTER OF FISCAL 2022

TABLE OF CONTENTS


		Page Number
PART I Financial Information (Unaudited)		3
Item 1.	Financial Statements	3
	Consolidated Statement of Income	3
	Consolidated Statement of Comprehensive Income	4
	Consolidated Balance Sheet	5
	Consolidated Statement of Cash Flows	6
	Consolidated Statement of Changes in Equity	7
	Notes to Consolidated Financial Statements	9
	Note 1. Basis of Presentation	9
	Note 2. Acquisitions	9
	Note 3. Cash and Restricted Cash	11
	Note 4. Inventories	11
	Note 5. Goodwill and Other Intangible Assets	12
	Note 6. Investments	12
	Note 7. Accrued Expenses	14
	Note 8. Product Warranties	14
	Note 9. Debt	14
	Note 10. Stock-Based Compensation	15
	Note 11. Accumulated Other Comprehensive Loss	16
	Note 12. Revenue Recognition	17
	Note 13. Segment Information	19
	Note 14. Income Taxes	20
	Note 15. Earnings per Share	20
	Note 16. Fair Value Measurements	21

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
	Cautionary Note Regarding Forward-Looking Statements	23
	Introduction	23
	Results of Operations	25
	Liquidity and Capital Resources	30
	Critical Accounting Policies	31
	Recent Accounting Pronouncements	31

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	32

PART II Other Information		33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 6.	Exhibits	33

Signature Page		34

Table of Contents

PART I - FINANCIAL INFORMATION (UNAUDITED)

ITEM 1. FINANCIAL STATEMENTS

LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF INCOME


	Quarter Ended				Nine Months Ended
(Unaudited, amounts in thousands, except per share data)	1/22/2022		1/23/2021		1/22/2022		1/23/2021
Sales	$	571,573	$	470,196	$	1,672,245	$	1,214,774
Cost of sales	352,208		268,944		1,027,503		696,604
Gross profit	219,365		201,252		644,742		518,170
Selling, general and administrative expense	179,878		166,838		516,771		431,492
Operating income	39,487		34,414		127,971		86,678
Interest expense	(160)		(298)		(713)		(1,103)
Interest income	806		285		1,029		902


Other income (expense), net	(1,460)		6,532		(522)		7,995
Income before income taxes	38,673		40,933		127,765		94,472
Income tax expense	9,591		11,344		33,059		24,900
Net income	29,082		29,589		94,706		69,572
Net income attributable to noncontrolling interests	(615)		(357)		(2,157)		(607)
Net income attributable to La-Z-Boy Incorporated	$	28,467	$	29,232	$	92,549	$	68,965

Basic weighted average common shares	43,701		46,261		44,342		46,064
Basic net income attributable to La-Z-Boy Incorporated per share	$	0.65	$	0.63	$	2.09	$	1.50

Diluted weighted average common shares	43,968		46,818		44,640		46,407
Diluted net income attributable to La-Z-Boy Incorporated per share	$	0.65	$	0.62	$	2.07	$	1.49

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


	Quarter Ended				Nine Months Ended
(Unaudited, amounts in thousands)	1/22/2022		1/23/2021		1/22/2022		1/23/2021
Net income	$	29,082	$	29,589	$	94,706	$	69,572
Other comprehensive income (loss)
Currency translation adjustment	(651)		2,286		(1,902)		5,751

Net unrealized loss on marketable securities, net of tax	(140)		(14)		(190)		(37)
Net pension amortization, net of tax	56		65		175		195
Total other comprehensive income (loss)	(735)		2,337		(1,917)		5,909
Total comprehensive income before allocation to noncontrolling interests	28,347		31,926		92,789		75,481
Comprehensive income attributable to noncontrolling interests	(716)		(719)		(1,708)		(1,546)
Comprehensive income attributable to La-Z-Boy Incorporated	$	27,631	$	31,207	$	91,081	$	73,935

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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LA-Z-BOY INCORPORATED

CONSOLIDATED BALANCE SHEET


(Unaudited, amounts in thousands, except par value)	1/22/2022		4/24/2021
Current assets
Cash and equivalents	$	236,712	$	391,213
Restricted cash	3,266		3,490
Receivables, net of allowance of $2,996 at 1/22/2022 and $4,011 at 4/24/2021	163,018		139,341
Inventories, net	315,595		226,137
Other current assets	243,713		165,979
Total current assets	962,304		926,160
Property, plant and equipment, net	250,945		219,194
Goodwill	195,010		175,814
Other intangible assets, net	34,469		30,431
Deferred income taxes – long-term	11,685		11,915
Right of use lease assets	388,713		343,800
Other long-term assets, net	86,438		79,008
Total assets	$	1,929,564	$	1,786,322

Current liabilities
Accounts payable	$	117,239	$	94,152


Lease liabilities, current	73,222		67,614
Accrued expenses and other current liabilities	523,009		449,904
Total current liabilities	713,470		611,670

Lease liabilities, long-term	338,478		295,023
Other long-term liabilities	93,133		97,483
Shareholders' equity
Preferred shares – 5,000 authorized; none issued	—		—
Common shares, $1.00 par value – 150,000 authorized; 43,505 outstanding at 1/22/22 and 45,361 outstanding at 4/24/21	43,505		45,361
Capital in excess of par value	339,294		330,648
Retained earnings	395,577		399,010
Accumulated other comprehensive loss	(2,989)		(1,521)
Total La-Z-Boy Incorporated shareholders' equity	775,387		773,498
Noncontrolling interests	9,096		8,648
Total equity	784,483		782,146
Total liabilities and equity	$	1,929,564	$	1,786,322

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CASH FLOWS


	Nine Months Ended
(Unaudited, amounts in thousands)	1/22/2022		1/23/2021
Cash flows from operating activities
Net income	$	94,706	$	69,572
Adjustments to reconcile net income to cash provided by operating activities
(Gain)/loss on disposal of assets	(3,149)		133
Gain on sale of investments	(340)		(438)
Provision for doubtful accounts	(1,070)		(2,483)
Depreciation and amortization	27,146		24,620
Amortization of right-of-use lease assets	53,949		48,864
Equity-based compensation expense	8,887		9,115
Change in deferred taxes	214		5,189


Change in receivables	(20,317)		(28,720)
Change in inventories	(83,109)		(26,419)
Change in other assets	(22,486)		(1,193)
Change in payables	23,690		42,354
Change in lease liabilities	(54,400)		(48,963)
Change in other liabilities	21,471		158,200
Net cash provided by operating activities	45,192		249,831

Cash flows from investing activities
Proceeds from disposals of assets	3,999		252

Capital expenditures	(58,585)		(26,722)
Purchases of investments	(28,058)		(27,744)
Proceeds from sales of investments	30,457		26,317
Acquisitions	(24,849)		(2,000)
Net cash used for investing activities	(77,036)		(29,897)

Cash flows from financing activities

Payments on debt and finance lease liabilities	(91)		(75,020)
Holdback payments for acquisition purchases	(23,000)		(5,783)
Stock issued for stock and employee benefit plans, net of shares withheld for taxes	(1,670)		6,259
Repurchases of common stock	(75,646)		(875)
Dividends paid to shareholders	(20,621)		(9,700)
Dividends paid to minority interest joint venture partners (1)	(1,260)		(8,507)
Net cash used for financing activities	(122,288)		(93,626)

Effect of exchange rate changes on cash and equivalents	(593)		3,191
Change in cash, cash equivalents and restricted cash	(154,725)		129,499
Cash, cash equivalents and restricted cash at beginning of period	394,703		263,528
Cash, cash equivalents and restricted cash at end of period	$	239,978	$	393,027

Supplemental disclosure of non-cash investing activities
Capital expenditures included in payables	$	4,564	$	1,569

(1)Includes dividends paid to joint venture minority partners resulting from the repatriation of dividends from our foreign earnings that we no longer consider permanently reinvested.

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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LA-Z-BOY INCORPORATED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


(Unaudited, amounts in thousands)	Common Shares		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Loss		Non-Controlling Interests		Total
At April 24, 2021	$	45,361	$	330,648	$	399,010	$	(1,521)	$	8,648	$	782,146
Net income	—		—		24,566		—		700		25,266
Other comprehensive loss	—		—		—		(302)		(430)		(732)
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax	181		291		(2,700)		—		—		(2,228)
Repurchases of 919 shares of common stock	(919)		(530)		(34,191)		—		—		(35,640)
Stock option and restricted stock expense	—		2,460		—		—		—		2,460
Dividends declared and paid ($0.15/share)	—		—		(6,777)		—		—		(6,777)
Dividends declared not paid ($0.15/share)	—		—		(46)		—		—		(46)
At July 24, 2021	$	44,623	$	332,869	$	379,862	$	(1,823)	$	8,918	$	764,449
Net income	—		—		39,516		—		842		40,358
Other comprehensive loss	—		—		—		(330)		(120)		(450)
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax	11		353		(6)		—		—		358
Repurchases of 434 shares of common stock	(434)		(196)		(14,370)		—		—		(15,000)
Stock option and restricted stock expense	—		3,894		—		—		—		3,894


Dividends declared and paid ($0.15/share) (1)	—		—		(6,621)		—		(1,260)		(7,881)
Dividends declared not paid ($0.15/share)	—		—		(46)		—		—		(46)
At October 23, 2021	$	44,200	$	336,920	$	398,335	$	(2,153)	$	8,380	$	785,682
Net income	—		—		28,467		—		615		29,082
Other comprehensive income (loss)	—		—		—		(836)		101		(735)
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax	8		204		(12)		—		—		200
Repurchases of 703 shares of common stock	(703)		(363)		(23,940)		—		—		(25,006)
Stock option and restricted stock expense	—		2,533				—		—		2,533


Dividends declared and paid ($0.165/share)	—		—		(7,223)		—		—		(7,223)
Dividends declared not paid ($0.165/share)	—		—		(50)		—		—		(50)
At January 22, 2022	$	43,505	$	339,294	$	395,577	$	(2,989)	$	9,096	$	784,483

(1)Non-controlling interests include dividends paid to joint venture minority partners resulting from the repatriation of dividends from our foreign earnings that we no longer consider permanently reinvested.

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(Unaudited, amounts in thousands)	Common Shares		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Non-Controlling Interests		Total
At April 25, 2020	$	45,857	$	318,215	$	343,633	$	(6,952)	$	15,553	$	716,306
Net income (loss)	—		—		4,798		—		(119)		4,679
Other comprehensive income	—		—		—		1,720		498		2,218
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax	132		(195)		(1,686)		—		—		(1,749)

Stock option and restricted stock expense	—		2,047		—		—		—		2,047
Dividends declared and paid (1)	—		—		5		—		(8,507)		(8,502)

At July 25, 2020	$	45,989	$	320,067	$	346,750	$	(5,232)	$	7,425	$	714,999
Net income	—		—		34,935		—		369		35,304
Other comprehensive income	—		—		—		1,275		79		1,354
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax	124		1,995		(6)		—		—		2,113

Stock option and restricted stock expense	—		4,120		—		—		—		4,120

Dividends declared and paid ($0.07/share)	—		—		(3,221)		—		—		(3,221)
Dividends declared not paid ($0.07/share)	—		—		(20)		—		—		(20)
At October 24, 2020	$	46,113	$	326,182	$	378,438	$	(3,957)	$	7,873	$	754,649
Net income	—		—		29,232		—		357		29,589
Other comprehensive income	—		—		—		1,975		362		2,337
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax	225		5,698		(28)		—		—		5,895
Purchases of 22 shares of common stock	(22)		(853)		—		—		—		(875)
Stock option and restricted stock expense	—		2,948		—		—		—		2,948

Dividends declared and paid ($0.14/share)	—		—		(6,484)		—		—		(6,484)
Dividends declared not paid ($0.14/share)	—		—		(41)		—		—		(41)
At January 23, 2021	$	46,316	$	333,975	$	401,117	$	(1,982)	$	8,592	$	788,018

(1)No dividends to shareholders were declared or paid during the first quarter of fiscal 2021; amount includes dividends forfeited from restricted stock awards previously granted. Non-controlling interests include dividends paid to joint venture minority partners resulting from the repatriation of dividends from our foreign earnings that we no longer consider permanently reinvested.

The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.

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LA-Z-BOY INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1: Basis of Presentation

The accompanying consolidated financial statements include the consolidated accounts of La-Z-Boy Incorporated and our majority-owned subsidiaries (collectively, the "Company"). We derived the April 24, 2021 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 2021 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), 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 30, 2022.

At January 22, 2022, we owned preferred shares and warrants to purchase common shares of two privately-held companies, both of which are variable interest entities. We have not consolidated their results in our financial statements because we do not have the power to direct those activities that most significantly impact their economic performance and, therefore, are not the primary beneficiary.

Accounting pronouncements adopted in fiscal 2022

The following table summarizes Accounting Standards Updates ("ASUs") which were adopted in fiscal 2022, but did not have a material impact on our accounting policies or our consolidated financial statements and related disclosures.


ASU						Description
ASU 2018-14						Compensation – Retirement benefits – Defined Benefit Plans – General (Subtopic 715-20): Changes to the Disclosure Requirements for Defined Benefit Plans
ASU 2019-12						Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes
ASU 2020-01						Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815
ASU 2021-10						Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance

Accounting pronouncements not yet adopted

The following table summarizes additional accounting pronouncements which we have not yet adopted, but we believe will not have a material impact on our accounting policies or our consolidated financial statements and related disclosures.

ASU

Description

Adoption Date

ASU 2021-08

Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities From Contracts With Customers

Fiscal 2024

Note 2: Acquisitions

Alabama and Chattanooga, Tennessee acquisition

On December 6, 2021, we completed our acquisition of the Alabama and Chattanooga, Tennessee businesses that operate four independently owned La-Z-Boy Furniture Galleries® stores in Alabama and one in Chattanooga, Tennessee, for $8.3 million, subject to customary purchase price adjustments. In the third quarter of fiscal 2022, we paid $8.0 million of cash for the purchase of the Alabama and Chattanooga, Tennessee stores and assets. This acquisition reflects a core component of our strategic priorities, which is 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 sales) in suitable geographic markets, alongside the existing La-Z-Boy Furniture Galleries® network.

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reacquired these rights when we consummated the transaction. The reacquired rights are indefinite-lived because our Retailer Agreements are perpetual agreements that have no specific expiration date and no renewal options. 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 $4.1 million related to these reacquired rights. We also recognized $7.4 million of goodwill in our Retail segment 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.

The acquisition of the Alabama and Chattanooga, Tennessee businesses was not significant to our consolidated financial statements and, therefore, pro-forma financial information is not presented. All of our provisional purchase accounting estimates for this acquisition are based on the information and data available to us as of the time of the issuance of these financial statements and, in accordance with Accounting Standard Codification Topic 805-10-25-15, are subject to change within the first 12 months following the acquisition as we gain additional data.

Furnico (La-Z-Boy United Kingdom Manufacturing) acquisition

On October 25, 2021, we completed the acquisition of Furnico Furniture Ltd ("Furnico"), an upholstery manufacturing business in the U.K for approximately $11.8 million, subject to customary purchase price adjustments and in the third quarter of fiscal 2022, we paid $12.4 million of cash for the purchase of the Furnico business. Furnico produces La-Z-Boy branded product for the La-Z-Boy U.K. business and also operates a wholesale business, selling white label products to key U.K. retailers. With this acquisition, we expect to realize production synergies, cost savings through materials procurement, and increases in production capacity to support growth in the La-Z-Boy U.K business.

We recognized $7.9 million of goodwill in our Wholesale segment related primarily to synergies we expect from the integration of the acquired business and future benefits of these synergies. The goodwill asset for Furnico is not deductible for federal income tax purposes.

The acquisition of the Furnico business was not significant to our consolidated financial statements and, therefore, pro-forma financial information is not presented. All of our provisional purchase accounting estimates for this acquisition are based on the information and data available to us as of the time of the issuance of these financial statements and, in accordance with Accounting Standard Codification Topic 805-10-25-15, are subject to change within the first 12 months following the acquisition as we gain additional data.

Long Island, New York acquisition

On August 16, 2021, we completed our acquisition of the Long Island, New York business that operates three independently owned La-Z-Boy Furniture Galleries® stores for $4.5 million, subject to customary adjustments. In the second quarter of fiscal 2022, we paid $4.4 million of cash for the purchase of the Long Island, New York stores and assets. This acquisition reflects a core component of our strategic priorities, which is 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 sales) in suitable geographic markets, alongside the existing La-Z-Boy Furniture Galleries® network.

Prior to this acquisition, we licensed to the counterparty the exclusive right to own and operate La-Z-Boy Furniture Galleries® stores (and to use the associated trademarks and trade name) in the Long Island, New York market, and we reacquired these rights when we consummated the transaction. The reacquired rights are indefinite-lived because our Retailer Agreements are perpetual agreements that have no specific expiration date and no renewal options. 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 $0.8 million related to these reacquired rights. We also recognized $4.4 million of goodwill in our Retail segment 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.

The acquisition of the Long Island, New York business was not significant to our consolidated financial statements, and, therefore, pro-forma financial information is not presented. All of our provisional purchase accounting estimates for this acquisition are based on the information and data available to us as of the time of the issuance of these financial statements, and in accordance with Accounting Standard Codification Topic 805-10-25-15, are subject to change within the first 12 months following the acquisition as we gain additional data.

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Prior Year Acquisitions

On September 14, 2020, we completed our acquisition of the Seattle, Washington business that operates six independently owned La-Z-Boy Furniture Galleries® stores and one warehouse for $13.5 million, subject to customary purchase price adjustments. In the second quarter of fiscal 2021, a $2.0 million cash payment was made for the purchase with future guaranteed payments of $9.4 million to be paid over 36 months or fewer, with timing of payments dependent upon the achievement of sales thresholds defined in the purchase agreement. This acquisition reflects a core component of our strategic priorities, which is 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 sales) in suitable geographic markets, alongside the existing La-Z-Boy Furniture Galleries® network.

Prior to this acquisition, we licensed to the counterparty the exclusive right to own and operate La-Z-Boy Furniture Galleries® stores (and to use the associated trademarks and trade name) in the Seattle, Washington market, and we reacquired these rights when we consummated the transaction. The reacquired rights are indefinite-lived because our Retailer Agreements are perpetual agreements that have no specific expiration date and no renewal options. 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 $2.2 million related to these reacquired rights. We also recognized $12.9 million of goodwill in our Retail segment 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.

The acquisition of the Seattle, Washington business was not significant to our consolidated financial statements, and, therefore, pro-forma financial information is not presented.

Comparability

During fiscal 2021, we determined that holdback payments for acquisition purchases of $5.8 million included in net cash used by investing activities should have been included in net cash used by financing activities for the first nine months of fiscal 2021. Although the amount impacting payments for acquisitions was not material to the fiscal 2021 consolidated financial statements, the classification of these amounts has been corrected by revising the consolidated statements of cash flows for the nine months ended January 23, 2021.

Note 3: Cash and Restricted Cash

We have restricted cash on deposit with a bank as collateral for certain letters of credit. All 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)	1/22/2022		1/23/2021
Cash and cash equivalents	$	236,712	$	390,324
Restricted cash	3,266		2,703
Total cash, cash equivalents and restricted cash	$	239,978	$	393,027

Note 4: Inventories

A summary of inventories is as follows:


(Unaudited, amounts in thousands)	1/22/2022		4/24/2021
Raw materials	$	175,372	$	112,371
Work in process	40,243		24,791
Finished goods	150,186		121,182
FIFO inventories	365,801		258,344
Excess of FIFO over LIFO	(50,206)		(32,207)
Total inventories (1)	$	315,595	$	226,137

(1)Increased balance to ensure input material availability to support increased sales demand and manufacturing capacity

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Note 5: Goodwill and Other Intangible Assets

We have goodwill on our consolidated balance sheet as follows:

Reportable Segment/Unit

Reporting Unit

Related Acquisition

Wholesale Segment

La-Z-Boy United Kingdom

Wholesale business in the United Kingdom and Ireland

Wholesale Segment

La-Z-Boy United Kingdom Manufacturing

La-Z-Boy United Kingdom Manufacturing (Furnico)

Retail Segment

Retail

La-Z-Boy Furniture Galleries® stores

Corporate & Other

Joybird

The following table summarizes changes in the carrying amount of our goodwill by reportable segment:


(Unaudited, amounts in thousands)	Wholesale Segment		Retail Segment		Corporate and Other		Total Goodwill
Balance at April 24, 2021	$	13,052	$	107,316	$	55,446	$	175,814
Acquisitions	7,926		11,748		—		19,674
Translation adjustment	(445)		(33)		—		(478)
Balance at January 22, 2022	$	20,533	$	119,031	$	55,446	$	195,010

We have intangible assets on our consolidated balance sheet as follows:

Reportable Segment/Unit

Intangible Asset

Useful Life

Wholesale Segment

Primarily acquired customer relationships from our acquisition of the wholesale business in the United Kingdom and Ireland

Amortizable over useful lives that do not exceed 15 years

Wholesale Segment

American Drew® trade name

Indefinite-lived

Retail Segment

Reacquired rights to own and operate La-Z-Boy Furniture Galleries® stores

Indefinite-lived

Corporate & Other

Joybird® trade name

Amortizable over eight-year useful life

The following summarizes changes in our intangible assets:


(Unaudited, amounts in thousands)	Indefinite- Lived Trade Names		Finite- Lived Trade Name		Indefinite- Lived Reacquired Rights		Other Intangible Assets		Total Other Intangible Assets
Balance at April 24, 2021	$	1,155	$	4,205	$	22,507	$	2,564	$	30,431
Acquisitions	—		—		4,896		—		4,896
Amortization	—		(599)		—		(178)		(777)
Translation adjustment	—		—		(25)		(56)		(81)
Balance at January 22, 2022	$	1,155	$	3,606	$	27,378	$	2,330	$	34,469

We test indefinite-lived intangibles and goodwill for impairment on an annual basis in the fourth quarter of each fiscal year, and more frequently if events or changes in circumstances indicate that an asset might be impaired. We test amortizable intangible assets for impairment if events or changes in circumstances indicate that the assets might be impaired.

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 start-up companies (refer to Note 16, Fair Value Measurements). 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.

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The following summarizes our investments:


(Unaudited, amounts in thousands)	1/22/2022		4/24/2021
Short-term investments:
Marketable securities	$	14,835	$	18,037
Held-to-maturity investments	1,391		2,532
Total short-term investments	16,226		20,569
Long-term investments:
Marketable securities	28,864		27,256
Cost basis investments	7,579		7,579
Total long-term investments	36,443		34,835
Total investments	$	52,669	$	55,404