SEC Filing | La-Z-Boy Incorporated

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lzb-20210123

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 23, 2021

☐ 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 9, 2021
Common Stock, $1.00 Par Value						46,296,693

Table of Contents

LA-Z-BOY INCORPORATED

FORM 10-Q THIRD QUARTER OF FISCAL 2021

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	10
	Note 3. Cash and Restricted Cash	10
	Note 4. Inventories	11
	Note 5. Goodwill and Other Intangible Assets	11
	Note 6. Investments	12
	Note 7. Accrued Expenses	13
	Note 8. Product Warranties	13
	Note 9. Stock-Based Compensation	14
	Note 10. Accumulated Other Comprehensive Loss	15
	Note 11. Revenue Recognition	16
	Note 12. Segment Information	18
	Note 13. Income Taxes	19
	Note 14. Earnings per Share	19
	Note 15. Fair Value Measurements	20

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
	Cautionary Note Regarding Forward-Looking Statements	22
	Introduction	22
	Results of Operations	24
	Liquidity and Capital Resources	30
	Critical Accounting Policies	31
	Recent Accounting Pronouncements	32

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
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

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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)	1/23/21		1/25/20		1/23/21		1/25/20
Sales	$	470,196	$	475,856	$	1,214,774	$	1,336,701
Cost of sales	268,944		276,218		696,604		786,962
Gross profit	201,252		199,638		518,170		549,739
Selling, general and administrative expense	166,838		147,325		431,492		444,403
Operating income	34,414		52,313		86,678		105,336
Interest expense	(298)		(265)		(1,103)		(891)
Interest income	285		844		902		2,093


Other income (expense), net	6,532		(5,998)		7,995		(5,390)
Income before income taxes	40,933		46,894		94,472		101,148
Income tax expense	11,344		12,178		24,900		25,540
Net income	29,589		34,716		69,572		75,608
Net income attributable to noncontrolling interests	(357)		(204)		(607)		(434)
Net income attributable to La-Z-Boy Incorporated	$	29,232	$	34,512	$	68,965	$	75,174

Basic weighted average common shares	46,261		46,262		46,064		46,545
Basic net income attributable to La-Z-Boy Incorporated per share	$	0.63	$	0.75	$	1.50	$	1.61

Diluted weighted average common shares	46,818		46,584		46,407		46,867
Diluted net income attributable to La-Z-Boy Incorporated per share	$	0.62	$	0.74	$	1.49	$	1.60

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)	1/23/21		1/25/20		01/23/21		01/25/20
Net income	$	29,589	$	34,716	$	69,572	$	75,608
Other comprehensive income (loss)
Currency translation adjustment	2,286		(112)		5,751		2,028
Change in fair value of cash flow hedges, net of tax	—		—		—		10
Net unrealized gain (loss) on marketable securities, net of tax	(14)		16		(37)		170
Net pension amortization, net of tax	65		41		195		123
Total other comprehensive income (loss)	2,337		(55)		5,909		2,331
Total comprehensive income before allocation to noncontrolling interests	31,926		34,661		75,481		77,939
Comprehensive income attributable to noncontrolling interests	(719)		(42)		(1,546)		(1,118)
Comprehensive income attributable to La-Z-Boy Incorporated	$	31,207	$	34,619	$	73,935	$	76,821

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)	1/23/21		4/25/20
Current assets
Cash and equivalents	$	390,324	$	261,553
Restricted cash	2,703		1,975
Receivables, net of allowance of $5,000 at 1/23/21 and $7,541 at 4/25/20	129,256		99,351
Inventories, net	212,114		181,643
Other current assets	153,800		81,804
Total current assets	888,197		626,326
Property, plant and equipment, net	213,088		214,767
Goodwill	175,560		161,017
Other intangible assets, net	30,597		28,653
Deferred income taxes – long-term	15,635		20,839
Right of use lease assets	337,337		318,647
Other long-term assets, net	79,758		64,640
Total assets	$	1,740,172	$	1,434,889

Current liabilities
Accounts payable	$	96,388	$	55,511
Short-term borrowings	—		75,000

Lease liabilities, current	66,416		64,376
Accrued expenses and other current liabilities	388,043		155,282
Total current liabilities	550,847		350,169

Lease liabilities, long-term	289,406		270,162
Other long-term liabilities	111,901		98,252
Shareholders' equity
Preferred shares – 5,000 authorized; none issued	—		—
Common shares, $1.00 par value – 150,000 authorized; 46,316 outstanding at 1/23/21 and 45,857 outstanding at 4/25/20	46,316		45,857
Capital in excess of par value	333,975		318,215
Retained earnings	401,117		343,633
Accumulated other comprehensive loss	(1,982)		(6,952)
Total La-Z-Boy Incorporated shareholders' equity	779,426		700,753
Noncontrolling interests	8,592		15,553
Total equity	788,018		716,306
Total liabilities and equity	$	1,740,172	$	1,434,889

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)	1/23/21		1/25/20
Cash flows from operating activities
Net income	$	69,572	$	75,608
Adjustments to reconcile net income to cash provided by (used for) operating activities
(Gain)/loss on disposal of assets	133		(10,051)
Gain on sale of investments	(438)		(468)
Change in deferred taxes	5,189		1,238
Provision for doubtful accounts	(2,483)		210
Depreciation and amortization	24,620		23,035
Equity-based compensation expense	9,115		7,235


Change in receivables	(28,720)		(11,178)
Change in inventories	(26,419)		(62)
Change in right-of-use lease assets	48,864		48,972
Change in other assets	(1,193)		5,116
Change in payables	42,354		659
Change in lease liabilities	(48,963)		(48,534)
Change in other liabilities	158,200		27,979
Net cash provided by operating activities	249,831		119,759

Cash flows from investing activities
Proceeds from disposals of assets	252		11,242
Proceeds from insurance	—		1,080
Capital expenditures	(26,722)		(35,464)
Purchases of investments	(27,744)		(26,248)
Proceeds from sales of investments	26,317		24,688
Acquisitions	(7,783)		(6,412)
Net cash used for investing activities	(35,680)		(31,114)

Cash flows from financing activities

Payments on debt and finance lease liabilities	(75,020)		(135)
Stock issued for stock and employee benefit plans, net of shares withheld for taxes	6,259		828
Purchases of common stock	(875)		(35,346)
Dividends paid to shareholders	(9,700)		(18,641)
Dividends paid to minority interest joint venture partners (1)	(8,507)		—
Net cash used for financing activities	(87,843)		(53,294)

Effect of exchange rate changes on cash and equivalents	3,191		1,107
Change in cash, cash equivalents and restricted cash	129,499		36,458
Cash, cash equivalents and restricted cash at beginning of period	263,528		131,787
Cash, cash equivalents and restricted cash at end of period	$	393,027	$	168,245

Supplemental disclosure of non-cash investing activities
Capital expenditures included in payables	$	1,569	$	4,026

(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 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.

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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 27, 2019	$	46,955	$	313,168	$	325,847	$	(3,462)	$	14,468	$	696,976
Net income (loss)	—		—		18,069		—		(81)		17,988
Other comprehensive income	—		—		—		281		486		767
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax	126		126		(1,669)		—		—		(1,417)
Repurchases of 391 shares of common stock	(391)		(3,762)		(8,160)		—		—		(12,313)
Stock option and restricted stock expense	—		1,675		—		—		—		1,675
Cumulative effect adjustment for leases, net of tax (1)	—		—		574		—		—		574
Reclassification of certain income tax effects (2)	—		—		547		(547)		—		—
Dividends declared and paid ($0.13/share)	—		—		(6,112)		—		—		(6,112)

At July 27, 2019	$	46,690	$	311,207	$	329,096	$	(3,728)	$	14,873	$	698,138
Net income	—		—		22,593		—		311		22,904
Other comprehensive income	—		—		—		1,260		359		1,619
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax	84		1,908		(4)		—		—		1,988
Purchases of 335 shares of common stock	(335)		(1,908)		(8,611)		—		—		(10,854)
Stock option and restricted stock expense	—		3,032		—		—		—		3,032

Dividends declared and paid ($0.13/share)	—		—		(6,039)		—		—		(6,039)
Dividends declared not paid ($0.13/share)	—		—		(46)		—		—		(46)
At October 26, 2019	$	46,439	$	314,239	$	336,989	$	(2,468)	$	15,543	$	710,742
Net income	—		—		34,512		—		204		34,716
Other comprehensive income (loss)	—		—		—		107		(162)		(55)
Stock issued for stock and employee benefit plans, net of cancellations and withholding tax	14		281		(37)		—		—		258
Purchases of 378 shares of common stock	(378)		(284)		(11,520)		—		—		(12,182)
Stock option and restricted stock expense	—		2,528		—		—		—		2,528
Cumulative effect adjustment for investments, net of tax	—		—		—		—		—		—
Dividends declared and paid ($0.14/share)	—		—		(6,490)		—		—		(6,490)
Dividends declared not paid ($0.14/share)	—		—		(35)		—		—		(35)
At January 25, 2020	$	46,075	$	316,764	$	353,419	$	(2,361)	$	15,585	$	729,482

(1)Cumulative effect adjustment of deferred gains on prior sale/leaseback transactions as a result of adopting ASU 2016-02.

(2)Income tax effects of the Tax Cuts and Jobs Act are reclassified from Accumulated Other Comprehensive Income ("AOCI") to retained earnings due to the adoption of ASU 2018-02.

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 25, 2020, 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 2020 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 24, 2021.

At January 23, 2021, 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.

COVID-19

As part of our continued response to the impact of COVID-19, on June 4, 2020, we announced our business realignment plan, which included the reduction of the Company's global workforce by approximately 10% across our manufacturing, retail and corporate locations, including the closure of our Newton, Mississippi upholstery manufacturing facility. In the first nine months of fiscal 2021, we incurred expenses of $3.9 million associated with our business realignment plan, primarily due to severance costs and an impairment of the carrying value of the Newton manufacturing facility. Subsequent to the announcement of our business realignment plan in the first quarter of fiscal 2021, consumers have continued to allocate more discretionary spending to home furnishings and as a result, the demand for our products has outpaced our production capacity. In response, we have added manufacturing cells at our Mexico Cut-and-Sew Center, added weekend production shifts to our U.S plants, temporarily re-activated a portion of our Newton, Mississippi upholstery manufacturing facility, and have opened a leased upholstery plant, in San Luis Rio Colorado, Mexico.

During the fourth quarter of fiscal 2020, in response to economic conditions resulting from COVID-19, to strengthen our financial position and maintain liquidity, we proactively borrowed $75.0 million from our revolving credit facility. Given the positive trends in cash flows during the first six months of fiscal 2021, we repaid all of the $75.0 million borrowed under our line of credit in the first and second quarters of fiscal 2021.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. The CARES Act, among other things, includes provisions providing for refundable payroll tax credits, deferment of employer social security payments, lengthening net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. In the third quarter of fiscal 2021, the Company determined amounts that it is eligible to claim for employee retention payroll tax credits and recognized $5.2 million in non-operating income for wages and healthcare costs paid to employees during suspension of operations due to government orders which qualify under the provisions of the CARES Act. The Company continues to evaluate the impact that the CARES Act may have on its results of operations, financial condition and/or financial statement disclosures.

We continue to actively manage the impact of the COVID-19 crisis and there is uncertainty regarding the impact COVID-19 will have on our financial operations in the near and long term.

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Accounting pronouncements adopted in fiscal 2021

The following table summarizes Accounting Standards Updates ("ASUs") which were adopted in fiscal 2021, but did not have a material impact on our accounting policies or our consolidated financial statements and related disclosures.


ASU						Description
ASU 2016-13						Financial Instruments – Credit losses (Topic 326): Measurement of Credit Losses on Financial Instruments
ASU 2020-04						Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting

Accounting pronouncements not yet adopted

The following table summarizes 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 2018-14

Compensation – Retirement benefits – Defined Benefit Plans – General (Subtopic 715-20): Changes to the Disclosure Requirements for Defined Benefit Plans

Fiscal 2022

ASU 2019-12

Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

Fiscal 2022

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

Fiscal 2022

Note 2: Acquisitions

On September 14, 2020, we completed our asset acquisition of the Seattle, Washington business that operated six independently owned La-Z-Boy Furniture Galleries® stores and one warehouse for $13.5 million, subject to customary 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 less, with timing of payments dependent upon the achievement of sales thresholds defined in the purchase agreement. This acquisition is a core part of our strategy to grow our company-owned retail business and leverage our integrated retail model where we earn a combined profit on both the wholesale and retail sales.

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. 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 of acquisition as we have access to additional data.

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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)	1/23/21		1/25/20
Cash and cash equivalents	$	390,324	$	166,272
Restricted cash	2,703		1,973
Total cash, cash equivalents and restricted cash	$	393,027	$	168,245

Note 4: Inventories

A summary of inventories is as follows:


(Unaudited, amounts in thousands)	1/23/21		4/25/20
Raw materials	$	110,743	$	92,174
Work in process	20,839		14,064
Finished goods	101,977		96,850
FIFO inventories	233,559		203,088
Excess of FIFO over LIFO	(21,445)		(21,445)
Total inventories	$	212,114	$	181,643

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

Retail Segment

Retail

La-Z-Boy Furniture Galleries® stores

Corporate & Other

Joybird

The following is a roll-forward of goodwill for the nine months ended January 23, 2021:


(Unaudited, amounts in thousands)	Wholesale Segment		Retail Segment		Corporate and Other		Total Goodwill
Balance at April 25, 2020	$	11,630	$	93,941	$	55,446	$	161,017
Acquisitions	—		12,936		—		12,936
Translation adjustment	1,245		362		—		1,607
Balance at January 23, 2021	$	12,875	$	107,239	$	55,446	$	175,560

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

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The following is a roll-forward of our other intangible assets for the nine months ended January 23, 2021:


(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 25, 2020	$	1,155	$	5,003	$	19,996	$	2,499	$	28,653
Acquisitions	—		—		2,182		—		2,182
Amortization	—		(599)		—		(168)		(767)
Translation adjustment	—		—		271		258		529
Balance at January 23, 2021	$	1,155	$	4,404	$	22,449	$	2,589	$	30,597

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. Our short-term investments are included in other current assets and our long-term investments are included in other long-term assets on our consolidated balance sheet.

The following summarizes our investments:


(Unaudited, amounts in thousands)	1/23/21		4/25/20
Short-term investments:
Marketable securities	$	17,586	$	18,634
Held-to-maturity investments	2,643		3,337
Total short-term investments	20,229		21,971
Long-term investments:
Marketable securities	25,243		19,572
Cost basis investments	7,579		6,479
Total long-term investments	32,822		26,051
Total investments	$	53,051	$	48,022

Investments to enhance returns on cash	$	30,553	$	28,622
Investments to fund compensation/retirement plans	14,919		12,921
Other investments	7,579		6,479
Total investments	$	53,051	$	48,022

The following is a summary of the unrealized gains, unrealized losses, and fair value by investment type:


	1/23/21						4/25/20
(Unaudited, amounts in thousands)	Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Equity securities	$	2,671	$	—	$	15,492	$	1,011	$	(6,390)	$