"The values of our casegoods businesses have been negatively impacted by the onslaught of import competition primarily from China..."
La-Z-Boy Incorporated president and CEO Kurt L. Darrow

La-Z-Boy Incorporated (LZB) announced today that it will take a pre-tax charge of $71.9 million, $55.9 million net of tax, or $1.04 per diluted share to reflect the impairment of certain intangible assets in its fiscal 2004 fourth quarter ending April 24, 2004. The vast majority of this charge relates to the casegoods segment of its business and is a result of the writedown of both trade names and goodwill associated with prior acquisitions.

La-Z-Boy Incorporated president and CEO Kurt L. Darrow said, "The values of our casegoods businesses have been negatively impacted by the onslaught of import competition primarily from China and the severe downturn in the hospitality industry since September 11, 2001." Under FASB Statement of Accounting Financial Standards 142 "Goodwill and Other Intangible Assets", companies are annually required to assess the value of goodwill and identifiable intangible assets. La-Z-Boy performs that assessment in the fourth quarter each year. This charge is non-cash and will not negatively impact any of our debt covenants.