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Segment Information
 3 Months Ended
Aug. 03, 2014
Segment Reporting [Abstract]  
Segment Information
13. Segment Information

Our operations are classified into two business segments: mattress fabrics and upholstery fabrics. The mattress fabrics segment manufactures, sources, and sells fabrics and mattress covers to bedding manufacturers. The upholstery fabrics segment manufactures, sources, and sells fabrics primarily to residential furniture manufacturers.

We evaluate the operating performance of our segments based upon income from operations before certain unallocated corporate expenses and other non-recurring items. Cost of sales in both segments include costs to manufacture or source our products, including costs such as raw material and finished goods purchases, direct and indirect labor, overhead and incoming freight charges. Unallocated corporate expenses primarily represent compensation and benefits for certain executive officers and all costs related to being a public company. Segment assets include assets used in the operations of each segment and primarily consist of accounts receivable, inventories, and property, plant and equipment. The mattress fabrics segment also includes in segment assets, goodwill, a non-compete agreement, and customer relationships associated with an acquisition.

Financial information for the company’s operating segments follows:
 
Three months ended
(dollars in thousands)
August 3, 2014
 July 28, 2013
Net sales:
Mattress Fabrics
 $ 42,822 $ 38,164
Upholstery Fabrics
 33,238 31,977
$ 76,060 $ 70,141
Gross profit:
Mattress Fabrics
 $ 7,202 $ 7,392
Upholstery Fabrics
 5,513 5,682
$ 12,715 $ 13,074
Selling, general, and administrative expenses:
Mattress Fabrics
 $ 2,574 $ 2,374
Upholstery Fabrics
 3,452 3,266
Total segment selling, general, and
administrative expenses
 6,026 5,640
Unallocated corporate expenses
 1,393 1,460
$ 7,419 $ 7,100
Income from operations:
Mattress Fabrics
 $ 4,629 $ 5,018
Upholstery Fabrics
 2,060 2,416
Total segment income from operations
 6,689 7,434
Unallocated corporate expenses
 (1,393 ) (1,460 )
Total income from operations
 5,296 5,974
Interest expense
 (68 ) (140 )
Interest income
 142 92
Other income (expense)
 89 (391 )
Income before income taxes
 $ 5,459 $ 5,535
 
Balance sheet information for the company’s operating segments follow:
 
(dollars in thousands)
August 3, 2014
July 28, 2013
April 27, 2014
Segment assets:
Mattress Fabrics
Current assets (1)
 $ 37,970 $ 35,718 $ 36,229
Non-compete agreement
 1,035 1,061 1,041
Customer relationships
 804 855 817
Goodwill
 11,462 11,462 11,462
Property, plant and equipment (2)
 29,604 28,552 29,040
Total mattress fabrics assets
 80,875 77,648 78,589
Upholstery Fabrics
Current assets (1)
 27,957 30,545 31,854
Property, plant and equipment (3)
 1,580 1,549 1,573
Total upholstery fabrics assets
 29,537 32,094 33,427
Total segment assets
 110,412 109,742 112,016
Non-segment assets:
Cash and cash equivalents
 24,665 21,423 29,303
Short-term investments
 6,311 6,174 6,294
Deferred income taxes
 7,176 8,398 8,270
Income taxes receivable
 136 292 121
Other current assets
 2,308 3,408 2,344
Property, plant and equipment (4)
 707 707 763
Long-term investments
 1,749 - 765
Other assets
 748 957 1,059
Total assets
 $ 154,212 $ 151,101 $ 160,935

 

 
Three months ended
(dollars in thousands)
August 3, 2014
July 28, 2013
Capital expenditures (5):
Mattress Fabrics
 $ 2,129 $ 263
Upholstery Fabrics
 112 390
Unallocated Corporate
 19 5
Total capital expenditures
 $ 2,260 $ 658
Depreciation expense:
Mattress Fabrics
 $ 1,219 $ 1,149
    Upholstery Fabrics 180 156
Total depreciation expense
 $ 1,399 $ 1,305
 
(1)
 
Current assets represent accounts receivable and inventory for the respective segment.

(2)
The $29.6 million at August 3, 2014, represents property, plant, and equipment of $21.2 million and $8.4 million located in the U.S. and Canada, respectively. The $28.6 million at July 28, 2013, represents property, plant, and equipment of $20.7 million and $7.9 million located in the U.S. and Canada, respectively. The $29.0 million at April 27, 2014, represents property, plant, and equipment of $20.6 million and $8.4 million located in the U.S. and Canada, respectively.

(3)
The $1.6 million at August 3, 2014, represents property, plant, and equipment located in the U.S. of $911, located in China of $627, and located in Poland of $42. The $1.5 million at July 28, 2013, represents property, plant, and equipment located in the U.S. of $1.1 million, located in China of $371, and located in Poland of $53. The $1.6 million at April 27, 2014, represents property, plant, and equipment located in the U.S. of $957, located in China of $572, and located in Poland of $44.

(4)
The $707, $707, and $763 at August 3, 2014, July 28, 2013 and April 27, 2014, respectively, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress and upholstery fabric segments. Property, plant, and equipment associated with corporate are located in the U.S.

(5)
Capital expenditure amounts are stated on the accrual basis. See Consolidated Statements of Cash Flows for capital expenditure amounts on a cash basis.