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Segment Information
 6 Months Ended
Nov. 01, 2015
Segment Reporting [Abstract]  
Segment Information
12.  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 sources, manufactures, 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, all costs related to being a public company, and other miscellaneous expenses. 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)
  
November 1, 2015
    
November 2, 2014
  
Net sales:
            
Mattress Fabrics
   $ 45,436     $ 43,038  
Upholstery Fabrics
     31,520       30,953  
    $ 76,956     $ 73,991  
                 
Gross profit:
                
Mattress Fabrics
   $ 9,456     $ 7,324  
Upholstery Fabrics
     6,277       4,954  
                 
    $ 15,733     $ 12,278  
                 
                 
Selling, general, and administrative expenses:
                
Mattress Fabrics
   $ 2,989     $ 2,592  
Upholstery Fabrics
     3,813       3,285  
Total segment selling, general, and
                
administrative expenses
     6,802       5,877  
Unallocated corporate expenses
     2,631       1,502  
    $ 9,433     $ 7,379  
                 
                 
Income from operations:
                
Mattress Fabrics
   $ 6,467     $ 4,733  
Upholstery Fabrics
     2,464       1,668  
Total segment income from operations
     8,931       6,401  
Unallocated corporate expenses
     (2,631 )     (1,502 )
Total income from operations
     6,300       4,899  
Interest income
     69       153  
Other expense
     (225 )     (162 )
Income before income taxes
   $ 6,144     $ 4,890  
 
Financial information for the company’s operating segments follows:

             
   
Six months ended
  
(dollars in thousands)
  
November 1, 2015
    
November 2, 2014
  
Net sales:
            
Mattress Fabrics
   $ 93,245     $ 85,860  
Upholstery Fabrics
     63,896       64,191  
    $ 157,141     $ 150,051  
                 
Gross profit:
                
Mattress Fabrics
   $ 19,381     $ 14,527  
Upholstery Fabrics
     12,554       10,466  
                 
    $ 31,935     $ 24,993  
                 
Selling, general, and administrative expenses:
                
Mattress Fabrics
   $ 5,912     $ 5,166  
Upholstery Fabrics
     7,409       6,737  
Total segment selling, general, and
                
administrative expenses
     13,321       11,903  
Unallocated corporate expenses
     4,854       2,895  
    $ 18,175     $ 14,798  
                 
Income from operations:
                
Mattress Fabrics
   $ 13,468     $ 9,361  
Upholstery Fabrics
     5,146       3,729  
Total segment income from operations
     18,614       13,090  
Unallocated corporate expenses
     (4,854 )     (2,895 )
Total income from operations
     13,760       10,195  
Interest expense
     -       (67 )
Interest income
     112       294  
Other expense
     (320 )     (73 )
Income before income taxes
   $ 13,552     $ 10,349  
 
Balance sheet information for the company’s operating segments follow:
 
                   
(dollars in thousands)
  
November 1, 2015
    
November 2, 2014
    
May 3, 2015
  
Segment assets:
                  
Mattress Fabrics
                  
Current assets (1)
   $ 40,937     $ 35,406     $ 41,328  
Non-compete agreement
     941       1,017       979  
Customer relationships
     740       791       766  
Goodwill
     11,462       11,462       11,462  
Property, plant and equipment (2)
     36,050       30,938       33,773  
Total mattress fabrics assets
     90,130       79,614       88,308  
Upholstery Fabrics
                        
Current assets (1)
     28,856       27,867       29,905  
Property, plant and equipment (3)
     1,474       1,578       1,467  
Total upholstery fabrics assets
     30,330       29,445       31,372  
Total segment assets
     120,460       109,059       119,680  
Non-segment assets:
                        
Cash and cash equivalents
     31,176       28,953       29,725  
Short-term investments
     6,320       6,318       10,004  
Deferred income taxes
     8,136       6,699       5,237  
Income taxes receivable
     75       -       229  
Other current assets
     2,614       2,303       2,440  
Property, plant and equipment (4)
     795       688       838  
Long-term investments
     3,279       1,911       2,415  
Other assets
     813       731       800  
Total assets
   $ 173,668     $ 156,662     $ 171,368  

             
   
Six months ended
  
(dollars in thousands)
  
November 1, 2015
    
November 2, 2014
  
Capital expenditures (5):
            
Mattress Fabrics
   $ 5,138     $ 4,692  
Upholstery Fabrics
     254       258  
Unallocated Corporate
     143       38  
Total capital expenditures
   $ 5,535     $ 4,988  
Depreciation expense:
                
Mattress Fabrics
   $ 2,783     $ 2,448  
Upholstery Fabrics
     401       364  
Total depreciation expense
   $ 3,184     $ 2,812  
 
 
(1)
Current assets represent accounts receivable and inventory for the respective segment.

(2)
The $36.1 million at November 1, 2015, represents property, plant, and equipment of $23.3 million and $12.8 million located in the U.S. and Canada, respectively. The $30.9 million at November 2, 2014, represents property, plant, and equipment of $22.2 million and $8.7 million located in the U.S. and Canada, respectively. The $33.8 million at May 3, 2015, represents property, plant, and equipment of $23.8 million and $10.0 million located in the U.S. and Canada, respectively.

(3)
The $1.5 million at November 1, 2015, represents property, plant, and equipment of $785 and $689 located in the U.S. and China, respectively. The $1.6 million at November 2, 2014, represents property, plant, and equipment of $977 and $601 located in the U.S. and China, respectively. The $1.5 million at May 3, 2015, represents property, plant, and equipment of $848 and $619 located in the U.S. and China, respectively.

(4)
The $795, $688, and $838 at November 1, 2015, November 2, 2014 and May 3, 2015, 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.