What changed in this filing

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Item 1. Financial Statements

2023-11-29 compared with 2023-08-22 · 117 added, 46 removed, 463 unchanged (26% of the section changed)

2 unchanged sentences

CONSOLIDATED STATEMENT OF INCOME

Quarter Ended

Quarter Ended Six Months Ended

(Unaudited, amounts in thousands, except per share data) 10/28/2023 10/29/2022 10/28/2023 10/29/2022

19 unchanged sentences

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Quarter Ended

Quarter Ended Six Months Ended

(Unaudited, amounts in thousands) 10/28/2023 10/29/2022 10/28/2023 10/29/2022

2 unchanged sentences

Currency translation adjustment ( 3,615 ) ( 3,353 ) ( 2,568 ) ( 5,513 )

Net unrealized gain on marketable securities, net of tax 220 86

Net unrealized gain (loss) on marketable securities, net of tax ( 87 ) ( 289 ) 133 ( 203 )

Net pension amortization, net of tax 24 37 47 73

44 unchanged sentences

CONSOLIDATED STATEMENT OF CASH FLOWS

Quarter Ended

Six Months Ended

(Unaudited, amounts in thousands) 10/28/2023 10/29/2022

26 unchanged sentences

Payments on debt and finance lease liabilities ( 206 ) ( 61 )

Holdback payments for acquisitions ( 5,000 ) ( 5,000 )

Stock issued for stock and employee benefit plans, net of shares withheld for taxes ( 1,859 ) ( 1,711 )

1 unchanged sentence

Dividends paid to shareholders ( 15,632 ) ( 14,161 )

Dividends paid to minority interest joint venture partners (1) ( 1,172 ) —

Net cash used for financing activities ( 43,883 ) ( 25,937 )

5 unchanged sentences

Capital expenditures included in payables $ 3,079 $ 4,251

(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.

20 unchanged sentences

At July 29, 2023 $ 43,110 $ 356,684 $ 557,666 $ ( 4,198 ) $ 10,668 $ 963,930

Net income — — 27,199 — 495 27,694

Other comprehensive income (loss) — — — ( 3,194 ) ( 484 ) ( 3,678 )

Stock issued for stock and employee benefit plans, net of cancellations and withholding tax 91 32 ( 4 ) — — 119

Repurchases of 326 shares of common stock

( 326 ) ( 118 ) ( 9,561 ) — — ( 10,005 )

Stock option and restricted stock expense — 4,811 — — — 4,811

Dividends declared and paid ($ 0.1815 /share) (1)

— — ( 7,780 ) — ( 1,172 ) ( 8,952 )

Dividends declared not paid ($ 0.1815 /share)

( 129 ) — — ( 129 )

At October 28, 2023 $ 42,875 $ 361,409 $ 567,391 $ ( 7,392 ) $ 9,507 $ 973,790

(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.

(Unaudited, amounts in thousands) Common

3 unchanged sentences

Comprehensive

Income (Loss) Non-Controlling

Loss Non-Controlling

Interests Total

1 unchanged sentence

Net income — — 38,488 — 452 38,940

Other comprehensive income (loss) — — — ( 1,519 ) ( 519 ) ( 2,038 )

Other comprehensive loss — — — ( 1,519 ) ( 519 ) ( 2,038 )

Stock issued for stock and employee benefit plans, net of cancellations and withholding tax 151 ( 194 ) ( 1,660 ) — — ( 1,703 )

7 unchanged sentences

At July 30, 2022 $ 43,036 $ 343,475 $ 456,067 $ ( 7,316 ) $ 8,830 $ 844,092

Net income — — 46,077 — 702 46,779

Other comprehensive loss — — — ( 3,201 ) ( 404 ) ( 3,605 )

Stock issued for stock and employee benefit plans, net of cancellations and withholding tax 100 ( 101 ) ( 7 ) — — ( 8 )

Stock option and restricted stock expense — 3,662 — — — 3,662

Dividends declared and paid ($ 0.165 /share)

— — ( 7,064 ) — — ( 7,064 )

Dividends declared not paid ($ 0.165 /share)

— — ( 70 ) — — ( 70 )

At October 29, 2022 $ 43,136 $ 347,036 $ 495,003 $ ( 10,517 ) $ 9,128 $ 883,786

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

7 unchanged sentences

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 27, 2024.

At July 29, 2023, we owned investments in two privately-held companies consisting of non-marketable preferred shares, warrants to purchase common shares, and convertible notes.

At October 28, 2023, we owned investments in two privately-held companies consisting of non-marketable preferred shares, warrants to purchase common shares, and convertible notes.

Each of these companies is a variable interest entity and 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.

7 unchanged sentences

ASU Description Adoption Date

ASU 2023-05 Business Combinations - Joint Venture Formations (Subtopic 805-60):

Recognition and Initial Measurement Fiscal 2025

ASU 2023-02 Investments - Equity Method and Joint Ventures (Topic 323):

6 unchanged sentences

This change had no impact to sales, income from operations, net income, earnings per share, retained earnings or other components of equity or net assets.

(Unaudited, amounts in thousands) For the Quarter Ended July 30, 2022

Previously Reported Effect of Change As Adjusted

(Unaudited, amounts in thousands) For the Quarter Ended October 29, 2022 For the Six Months Ended October 29, 2022

Previously Reported Effect of Change As Adjusted Previously Reported Effect of Change As Adjusted

Cost of sales $ 350,596 $ 11,252 $ 361,848 $ 713,227 $ 21,682 $ 734,909

1 unchanged sentence

Selling, general and administrative expense 198,853 ( 11,252 ) 187,601 387,670 ( 21,682 ) 365,988

Torreón Closure

During the third quarter of fiscal 2023, we made the decision to close our manufacturing facility in Torreón, Mexico as part of our initiative to drive improved efficiencies through optimized staffing levels within our plants.

As a result of this action, charges were recorded within the Wholesale segment in the third and fourth quarters of fiscal 2023, totaling $ 9.2 million in SG&A expense for the impairment of various assets, primarily long-lived assets, and $ 1.6 million in cost of sales, primarily related to severance.

During the first quarter of fiscal 2024, we terminated our lease on the Torreón facility and recognized a $ 1.2 million gain in SG&A expense within the Wholesale segment related to the settlement of our lease obligation on the previously impaired long-lived assets.

None of the below acquisitions were significant to our consolidated financial statements, and, therefore, pro-forma financial information is not presented.

5 unchanged sentences

For federal income tax purposes, we amortize and deduct these indefinite-lived intangible assets and goodwill, if any, over 15 years.

Lafayette, Louisiana Acquisition

On October 23, 2023, we completed our acquisition of the Lafayette Louisiana business that operates one independently owned La-Z-Boy Furniture Galleries ® store and one distribution center for $ 2.8 million, inclusive of and subject to further customary adjustments.

We paid total cash of $ 1.8 million during the second quarter of fiscal 2024 and the remaining consideration included forgiveness of accounts receivable and payments based on working capital adjustments.

As part of the acquisition, we recorded an indefinite-lived intangible asset of $ 0.7 million related to the reacquired rights described above.

We also recognized $ 2.1 million of goodwill in our Retail segment related primarily to synergies we expect from the integration of the acquired store and future benefits of these synergies.

Colorado Springs, Colorado Acquisition

On July 17, 2023, we completed our acquisition of the Colorado Springs, Colorado business that operates two independently owned La-Z-Boy Furniture Galleries ® stores and one distribution center for $ 6.0 million, subject to customary adjustments.

We paid total cash of $ 4.3 million in the first quarter of fiscal 2024 and the remaining consideration includes forgiveness of accounts receivable and payments based on working capital adjustments.

We paid total cash of $ 5.6 million during the first and second quarters of fiscal 2024 and the remaining consideration included forgiveness of accounts receivable and payments based on working capital adjustments.

As part of the acquisition, we recorded an indefinite-lived intangible asset of $ 2.1 million related to the reacquired rights described above.

1 unchanged sentence

Prior Year Acquisitions

Spokane, Washington Acquisition

On September 26, 2022, we completed our acquisition of the Spokane, Washington business that operates one independently owned La-Z-Boy Furniture Galleries ® store and one distribution center for $ 4.7 million, inclusive of customary adjustments.

We paid total cash of $ 4.0 million during the second quarter of fiscal 2023 and the remaining consideration included forgiveness of accounts receivable and payments based on working capital adjustments.

As part of the acquisition, we recorded an indefinite-lived intangible asset of $ 1.2 million related to the reacquired rights described above.

We also recognized

$ 3.0 million of goodwill in our Retail segment related primarily to synergies we expect from the integration of the acquired store and future benefits of these synergies.

Denver, Colorado Acquisition

On July 18, 2022, we completed our acquisition of the Denver, Colorado business that operates five independently owned La-Z-Boy Furniture Galleries ® stores and one distribution center for $ 10.1 million, subject to customary adjustments.

We paid total cash of $ 7.7 million in the first and second quarters of fiscal 2023 and the remaining consideration includes forgiveness of accounts receivable and payments based on working capital adjustments.

We paid total cash of $ 7.7 million during the first and second quarters of fiscal 2023 and the remaining consideration included forgiveness of accounts receivable and payments based on working capital adjustments.

As part of the acquisition, we recorded an indefinite-lived intangible asset of $ 4.3 million related to the reacquired rights described above.

31 unchanged sentences

Translation adjustment ( 725 ) ( 83 ) — ( 808 )

Balance at July 29, 2023 (1)

Balance at October 28, 2023 (1)

$ 19,477 $ 133,550 $ 55,446 $ 208,473

17 unchanged sentences

Translation adjustment — — ( 61 ) ( 64 ) ( 125 )

Balance at July 29, 2023 $ 1,155 $ 2,394 $ 36,106 $ 1,874 $ 41,529

Balance at October 28, 2023 $ 1,155 $ 2,195 $ 36,451 $ 1,714 $ 41,515

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.

24 unchanged sentences

The following table summarizes sales of marketable securities:

Quarter Ended

Quarter Ended Six Months Ended

(Unaudited, amounts in thousands) 10/28/2023 10/29/2022 10/28/2023 10/29/2022

6 unchanged sentences

Within two to five years 961

Within six to ten years —

Thereafter 3,248

Securities not due at a single maturity date 6,348

Total $ 13,714

6 unchanged sentences

We provide a limited lifetime warranty against defects on a majority of Joybird products, which are a part of our Corporate and Other results.

For all our manufacturer warranties, the warranty period begins when the consumer receives our product.

For all our manufacturer warranties, the

warranty period begins when the consumer receives our product.

We use considerable judgment in making our estimates, and we record differences between our actual and estimated costs when the differences are known.

A reconciliation of the changes in our product warranty liability is as follows:

Quarter Ended

Quarter Ended Six Months Ended

(Unaudited, amounts in thousands) 10/28/2023

10/29/2022 10/28/2023 (1)

Balance as of the beginning of the period $ 30,794 $ 27,516 $ 30,984 $ 27,036

2 unchanged sentences

Balance as of the end of the period $ 31,127 $ 28,357 $ 31,127 $ 28,357

(1) $ 20.0 million and $ 19.9 million is recorded in accrued expenses and other current liabilities as of July 29, 2023, and April 29, 2023, respectively, while the remainder is included in other long-term liabilities.

(1) $ 20.1 million and $ 19.9 million is recorded in accrued expenses and other current liabilities as of October 28, 2023, and April 29, 2023, respectively, while the remainder is included in other long-term liabilities.

We recorded accruals during the periods presented in the table above, primarily to reflect charges that relate to warranties issued during the respective periods.

1 unchanged sentence

The table below summarizes the total stock-based compensation expense we recognized for all outstanding grants in our consolidated statement of income:

Quarter Ended

Quarter Ended Six Months Ended

(Unaudited, amounts in thousands) 10/28/2023 10/29/2022 10/28/2023 10/29/2022

1 unchanged sentence

Liability-based awards expense (1)

( 35 ) 18 53 146

Total stock-based compensation expense $ 4,776 $ 3,680 $ 7,390 $ 5,225

2 unchanged sentences

Restricted Stock .

We granted 330,140 shares of restricted stock units to employees during the first quarter of fiscal 2024 and we also have restricted stock awards outstanding from previous grants.

During the first quarter of fiscal 2024, we granted 330,140 shares of restricted stock units to employees and we also have restricted stock awards outstanding from previous grants.

We issue restricted stock at no cost to the employees and account for restricted stock awards as equity-based awards because when they vest, they will be settled in common shares.

We recognize compensation expense for restricted stock over the vesting period equal to the fair value on the date our Compensation and Talent Oversight Committee of our board of directors approved the awards.

Restricted stock awards vest at 25 % per year, beginning one year from the grant date for a term of four years , with continued vesting upon retirement with respect to the fiscal 2023 and 2024 grants.

We accelerate the expense for restricted stock granted to retirement-eligible employees over the vesting period, with expense recognized from the grant date through their retirement eligibility date or over the ten months following the grant date, whichever period is longer.

We have elected to recognize forfeitures as an adjustment to compensation expense in the same period as the forfeitures occur.

The weighted-average fair value of the restricted stock that was awarded in the first quarter of fiscal 2024 was $ 27.66 per share, the market value of our common shares on the date of grant.

The weighted-average fair value of the restricted stock that was awarded in the first six months of fiscal 2024 was $ 27.66 per share, the market value of our common shares on the date of grant.

Restricted Stock Units Issued to Directors.

During the first six months of fiscal 2024, we granted 35,736 restricted stock units to our non-employee directors.

Restricted stock units granted to our non-employee directors are offered at no cost to the directors and restricted stock units granted following August 2022 vest on the earlier of the date a director ceases to be a member of the board (for any reason other than the termination of service for cause) or the-one year anniversary of the grant date.

We account for these restricted stock units as equity-based awards because when they vest, they will be settled in shares of our common stock.

We measure and recognize compensation expense for these awards based on the market price of our common shares on the date of grant.

The weighted-average fair value of the restricted stock units granted to our non-employee directors in the first six months of fiscal 2024 was $ 30.80 per share.

Performance Shares.

1 unchanged sentence

Payouts of these grants depend on our financial performance ( 50 %) and a market-based condition based on the total return our shareholders receive on their investment in our stock relative to returns earned through investments in other public companies ( 50 %).

The performance share opportunity ranges from 50 % of the employee’s target award if minimum performance requirements are met to a maximum of 200 % of the target award based on the attainment of certain financial and shareholder-return goals over a specific performance period, which is generally three fiscal years.

The performance share opportunity ranges from 50 % of the employee’s target award if minimum performance requirements are met to a maximum of 200 % of the

target award based on the attainment of certain financial and shareholder-return goals over a specific performance period, which is generally three fiscal years.

We account for performance-based shares as equity-based awards because when they vest, they will be settled in common shares.

13 unchanged sentences

We accelerate the expense for options granted to retirement eligible employees over the vesting period, with expense recognized from the grant date through their retirement eligibility date or over the ten months following the grant date, whichever period is longer.

We have elected to recognize forfeitures as an adjustment to compensation expense in the same period as the forfeitures

We have elected to recognize forfeitures as an adjustment to compensation expense in the same period as the forfeitures occur.

Granted options outstanding under the former long-term equity award plan remain in effect and have a term of 10 years.

1 unchanged sentence

Accumulated Other Comprehensive Income (Loss)

Activity in accumulated other comprehensive income (loss) for the quarters ended July 29, 2023, and July 30, 2022, is as follows:

Activity in accumulated other comprehensive income (loss) for the quarters ended October 28, 2023, and October 29, 2022, is as follows:

(Unaudited, amounts in thousands) Translation adjustment Unrealized gain (loss) on marketable securities Net pension amortization and net actuarial loss Accumulated other comprehensive income (loss)

Balance at April 29, 2023 $ ( 2,652 ) $ ( 145 ) $ ( 2,731 ) $ ( 5,528 )

Balance at July 29, 2023 $ ( 1,565 ) $ 75 $ ( 2,708 ) $ ( 4,198 )

Changes before reclassifications ( 3,131 ) ( 139 ) — ( 3,270 )

2 unchanged sentences

Other comprehensive income (loss) attributable to La-Z-Boy Incorporated ( 3,131 ) ( 87 ) 24 ( 3,194 )

Balance at October 28, 2023 $ ( 4,696 ) $ ( 12 ) $ ( 2,684 ) $ ( 7,392 )

Balance at July 30, 2022 $ ( 3,602 ) $ ( 212 ) $ ( 3,502 ) $ ( 7,316 )

Changes before reclassifications ( 2,949 ) ( 445 ) — ( 3,394 )

Amounts reclassified to net income — 62 48 110

Tax effect — 94 ( 11 ) 83

Other comprehensive income (loss) attributable to La-Z-Boy Incorporated ( 2,949 ) ( 289 ) 37 ( 3,201 )

Balance at October 29, 2022 $ ( 6,551 ) $ ( 501 ) $ ( 3,465 ) $ ( 10,517 )

Activity in accumulated other comprehensive income (loss) for the six months ended October 28, 2023 and October 29, 2022, is as follows:

(Unaudited, amounts in thousands) Translation adjustment Unrealized gain (loss) on marketable securities Net pension amortization and net actuarial loss Accumulated other comprehensive income (loss)

Balance at April 29, 2023 $ ( 2,652 ) $ ( 145 ) $ ( 2,731 ) $ ( 5,528 )

3 unchanged sentences

Other comprehensive income (loss) attributable to La-Z-Boy Incorporated ( 2,044 ) 133 47 ( 1,864 )

Balance at July 30, 2022 $ ( 3,602 ) $ ( 212 ) $ ( 3,502 ) $ ( 7,316 )

Balance at October 28, 2023 $ ( 4,696 ) $ ( 12 ) $ ( 2,684 ) $ ( 7,392 )

Balance at April 30, 2022 $ ( 1,961 ) $ ( 298 ) $ ( 3,538 ) $ ( 5,797 )

Changes before reclassifications ( 4,590 ) ( 390 ) — ( 4,980 )

Amounts reclassified to net income — 121 96 217

Tax effect — 66 ( 23 ) 43

Other comprehensive income (loss) attributable to La-Z-Boy Incorporated ( 4,590 ) ( 203 ) 73 ( 4,720 )

Balance at October 29, 2022 $ ( 6,551 ) $ ( 501 ) $ ( 3,465 ) $ ( 10,517 )

We reclassified both the unrealized gain (loss) on marketable securities and the net pension amortization from accumulated other comprehensive loss to net income through other income (expense), net.

The components of noncontrolling interest were as follows:

Quarter Ended

Quarter Ended Six Months Ended

(Unaudited, amounts in thousands) 10/28/2023 10/29/2022 10/28/2023 10/29/2022

1 unchanged sentence

Net income 495 702 942 1,154

Other comprehensive income (loss) ( 40 ) ( 519 )

Other comprehensive loss ( 484 ) ( 404 ) ( 524 ) ( 923 )

Dividends distributed to joint venture minority partners ( 1,172 ) — ( 1,172 ) —

Balance as of the end of the period $ 9,507 $ 9,128 $ 9,507 $ 9,128

11 unchanged sentences

The following table presents our revenue disaggregated by product category and by segment or unit:

Quarter Ended July 29, 2023 Quarter Ended July 30, 2022

Quarter Ended October 28, 2023 Quarter Ended October 29, 2022

(Unaudited, amounts in thousands) Wholesale Retail Corporate

8 unchanged sentences

Consolidated Net Sales $ 511,435 $ 611,332

Six Months Ended October 28, 2023 Six Months Ended October 29, 2022

(Unaudited, amounts in thousands) Wholesale Retail Corporate

and Other Total Wholesale Retail Corporate

and Other Total

Upholstered Furniture $ 598,189 $ 343,703 $ 89,430 $ 1,031,322 $ 668,475 $ 404,030 $ 97,680 $ 1,170,185

Casegoods Furniture 40,728 24,775 8,956 74,459 58,551 27,873 14,269 100,693

Delivery 83,698 17,112 3,657 104,467 112,775 16,188 4,003 132,966

Other (1) ( 24,173 ) 36,962 ( 25,750 ) ( 12,961 ) 48,248 40,082 ( 23,585 ) 64,745

Total $ 698,442 $ 422,552 $ 76,293 $ 1,197,287 $ 888,049 $ 488,173 $ 92,367 $ 1,468,589

Eliminations ( 204,201 ) ( 253,166 )

Consolidated Net Sales $ 993,086 $ 1,215,423

(1) Primarily includes discounts and allowances, revenue for advertising, royalties, parts, accessories, after-treatment products, surcharges, rebates and other sales incentives.

16 unchanged sentences

$ 128,427 $ 150,705

(1) During the quarter ended July 29, 2023, we recognized revenue of $ 126.0 million related to our contract liability balance at April 29, 2023.

(1) During the six months ended October 28, 2023, we recognized revenue of $ 137.4 million related to our contract liability balance at April 29, 2023.

Segment Information

4 unchanged sentences

American Drew ® , Hammary ® and Kincaid ® .

The Wholesale segment also includes our international wholesale and manufacturing

The Wholesale segment also includes our international wholesale and manufacturing businesses.

We aggregate these operating segments into one reportable segment because they are economically similar and meet the other aggregation criteria for determining reportable segments.

10 unchanged sentences

The following table presents sales and operating income (loss) by segment:

Quarter Ended

Quarter Ended Six Months Ended

(Unaudited, amounts in thousands) 10/28/2023 10/29/2022 10/28/2023 10/29/2022

19 unchanged sentences

Income before income taxes $ 37,657 $ 63,085 $ 75,673 $ 116,088

Our effective tax rate was 26.5 % for both the quarter ended July 29, 2023 and the quarter ended July 30, 2022.

Our effective tax rate was 26.5 % for both the second quarter and first six months ended October 28, 2023 compared with 25.8 % and 26.2 % for the second quarter and first six months ended October 29, 2022, respectively.

Our effective tax rate varies from the 21 % federal statutory rate primarily due to state taxes.

1 unchanged sentence

The following is a reconciliation of the numerators and denominators we used in our computations of basic and diluted earnings per share:

Quarter Ended

Quarter Ended Six Months Ended

(Unaudited, amounts in thousands, except per share data) 10/28/2023 10/29/2022 10/28/2023 10/29/2022

5 unchanged sentences

Diluted weighted average common shares outstanding (1)

43,401 43,182 43,479 43,174

Earnings per Share:

1 unchanged sentence

Diluted $ 0.63 $ 1.07 $ 1.26 $ 1.96

(1) Diluted earnings per share was computed using the treasury stock method.

The values for contingent common shares set forth above reflect the dilutive effect of common shares that we would have issued to employees under the terms of performance-based share awards if the relevant performance period for the award had been the reporting period.

We exclude the effect of options from our diluted share calculation when the weighted average exercise price of the options is higher than the average market price, since including the options' effect would be anti-dilutive.

For the quarters ended July 29, 2023 and July 30, 2022, we excluded options to purchase 0.7 million shares and 1.5 million shares from the diluted share calculation, respectively.

For the second quarter and six months ended October 28, 2023, we excluded options to purchase 0.5 million shares and 0.7 million shares, respectively, from the diluted share calculation.

For the second quarter and six months ended October 29, 2022, we excluded options to purchase 1.5 million shares from the diluted share calculation.

Fair Value Measurements

8 unchanged sentences

We measure non-financial assets such as other intangible assets, goodwill, and other long-lived assets at fair value when there is an indicator of impairment, and we record them at fair value only when we recognize an impairment loss.

The following table presents the fair value hierarchy for those assets and liabilities we measured at fair value on a recurring basis at July 29, 2023 and April 29, 2023.

The following table presents the fair value hierarchy for those assets and liabilities we measured at fair value on a recurring basis at October 28, 2023 and April 29, 2023.

There were no transfers into or out of Level 1, Level 2, or Level 3 for any of the periods presented.

At July 29, 2023

At October 28, 2023

Fair Value Measurements

10 unchanged sentences

(1) Certain marketable securities investments are measured at fair value using net asset value per share under the practical expedient methodology.

At July 29, 2023 and April 29, 2023, we held marketable securities intended to enhance returns on our cash and to fund future obligations of our non-qualified defined benefit retirement plan, our executive deferred compensation plan and our performance compensation retirement plan.

At October 28, 2023 and April 29, 2023, we held marketable securities intended to enhance returns on our cash and to fund future obligations of our non-qualified defined benefit retirement plan, our executive deferred compensation plan and our performance compensation retirement plan.

The fair value measurements for our Level 1 and Level 2 securities are based on quoted prices in active markets, as well as through broker quotes and independent valuation providers, multiplied by the number of shares owned exclusive of any transaction costs.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements