SEGMENT INFORMATION (Tables)

12 Months Ended

May 01, 2016

Summary of Segment Information by Geographic Area

International sales accounted for 22%, 22% and 19% of net sales in 2016, 2015, and 2014, respectively, and are summarized by geographic area as follows:

(dollars in thousands)	2016		2015		2014
north america (excluding USA) (1)	$	31,667		30,758		15,556
far east and asia (2)		31,927		31,855		33,487
all other areas		4,336		4,720		6,041
	$	67,930		67,333		55,084

(1)	Of this amount, $24.2 million, $24.1 million, and $9.3 million are attributable to shipments to Mexico in fiscal 2016, 2015, and 2014, respectively.

(2)	Of this amount $23.1 million, $26.5 million, and $32.2 million are attributable to shipment to China in fiscal 2016, 2015, and 2014, respectively.

Schedule of Operating Segments Information

Statements of operations for the company’s operating segments are as follows:

(dollars in thousands)	2016			2015			2014
net sales:
upholstery fabrics	$	126,441			130,427			126,457
mattress fabrics		186,419			179,739			160,705
	$	312,860			310,166			287,162

gross profit:
upholstery fabrics	$	26,393			22,690			21,429
mattress fabrics		38,718			32,877			27,477
	$	65,111			55,567			48,906
(dollars in thousands)		2016			2015			2014
selling, general, and administrative expenses:
upholstery fabrics	$	15,094			14,562			13,393
mattress fabrics		12,223			11,206			9,962
unallocated corporate		9,456			7,010			5,302
total selling, general, and administrative expenses	$	36,773			32,778			28,657

Income from operations:
upholstery fabrics	$	11,298			8,128			8,036
mattress fabrics		26,496			21,671			17,515
total segment income from operations		37,794			29,799			25,551
unallocated corporate expenses		(9,456	)		(7,010	)		(5,302	)
total income from operations		28,338			22,789			20,249
interest expense		-			(64	)		(427	)
interest income		176			622			482
other expense		(616	)		(391	)		(1,261	)
income before income taxes	$	27,898			22,956			19,043

Balance sheet information for the company’s operating segments follow:

(dollars in thousands)	2016			2015			2014
segment assets
mattress fabrics
current assets (1)	$	43,472			41,328			36,229
non-compete agreements, net		903			979			1,041
customer relationships		715			766			817
goodwill		11,462			11,462			11,462
property, plant, and equipment		37,480	(2)		33,773	(3)		29,040	(4)
total mattress fabrics assets	$	94,032			88,308			78,589

upholstery fabrics
current assets (1)	$	26,540			29,905			31,854
property, plant, and equipment		1,564	(5)		1,467	(6)		1,573	(7)
total upholstery fabrics assets	$	28,104			31,372			33,427
total segment assets		122,136			119,680			112,016

non-segment assets
cash and cash equivalents		37,787			29,725			29,303
short-term investments		4,359			10,004			6,294
income taxes receivable		155			229			121
deferred income taxes		2,319			5,169			8,270
other current assets		2,477			2,440			2,344
property, plant, and equipment		929	(8)		838	(8)		763	(8)
long-term investments		4,025			2,415			765
other assets		955			800			1,059
total assets	$	175,142			171,300			160,935

capital expenditures (9):
mattress fabrics	$	9,666			10,454			4,380
upholstery fabrics		626			468			827
unallocated corporate		416			252			103
	$	10,708			11,174			5,310

depreciation expense
mattress fabrics	$	5,837			5,034			4,694
upholstery fabrics		834			739			618
total segment depreciation expense	$	6,671			5,773			5,312

(1)	Current assets represent accounts receivable and inventory.

(2)	The $37.5 million at May 1, 2016, represents property, plant, and equipment located in the U.S. of $24.8 million and located in Canada of $12.7 million.

(3)	The $33.8 million at May 3, 2015, represents property, plant, and equipment located in the U.S. of $23.8 million and located in Canada of $10.0 million.

(4)	The $29.0 million at April 27, 2014, represents property, plant, and equipment located in the U.S. of $20.6 million and located in Canada of $8.4 million.

(5)	The $1.6 million at May 1, 2016, represents property, plant, and equipment located in the U.S. of $893 and located in China of $671.

(6)	The $1.5 million at May 3, 2015, represents property, plant, and equipment located in the U.S. of $848 and located in China of $619.

(7)	The $1.6 million at April 27, 2014, represents property, plant, and equipment located in the U.S. of $957, China of $572, and located in Poland of $44.

(8)	The $929, $838, and $763 balance at May 1, 2016, May 3, 2015, and April 27, 2014, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress and upholstery fabric segments.

(9)	Capital expenditure amounts are stated on an accrual basis. See Consolidated Statement of Cash Flows for capital expenditure amounts on a cash basis.