La-Z-Boy Incorporated is a manufacturer, marketer, and retailer of upholstery products and a marketer of imported and manufactured wood furniture products. The following excerpt is taken from the income statement included in La-Z-Boy€™s 2009 annual report. All dollar amounts are in thousands.

1. What line items shown in the excerpts from La-Z-Boy€™s income statement do you consider to be unusual or nonrecurring items? Defend your response.
2. Adjust operating income (loss) as reported to €œrecurring operating income€ in each of the 3 years represented.
3. Comment on the trends in sales and operatingincome.

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Fiscal Year Ended 4/25/2009 $1,226,674 887,907 338,767 375,011 2,642 7,503 47,677 4/26/2008 $1,450,941 1,056,713 394,228 399,470 3,078 4/28/2007 $1,621,460 1,193,105 428,355 388,738 7,662 Sales Total cost of sales Gross profit Selling, general, and administrative Restructuring Write-down of long-lived assets Write-down of Intangibles 8,426 Operating income (loss) $(94,066) 16,746) 31,955