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Segment Information
 9 Months Ended
Jan. 31, 2016
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)
  
January 31, 2016
    
February 1, 2015
  
Net sales:
            
Mattress Fabrics
   $ 44,277     $ 45,683  
Upholstery Fabrics
     34,189       35,586  
    $ 78,466     $ 81,269  
Gross profit:
                
Mattress Fabrics
   $ 8,751     $ 8,076  
Upholstery Fabrics
     7,812       6,326  
    $ 16,563     $ 14,402  
Selling, general, and administrative expenses:
                
Mattress Fabrics
   $ 2,953     $ 2,853  
Upholstery Fabrics
     3,963       3,781  
Total segment selling, general, and
                
administrative expenses
     6,916       6,634  
Unallocated corporate expenses
     2,421       1,741  
    $ 9,337     $ 8,375  
Income from operations:
                
Mattress Fabrics
   $ 5,798     $ 5,223  
Upholstery Fabrics
     3,849       2,545  
Total segment income from operations
     9,647       7,768  
Unallocated corporate expenses
     (2,421 )     (1,741 )
Total income from operations
     7,226       6,027  
Interest income
     38       202  
Other expense
     (85 )     (307 )
Income before income taxes
   $ 7,179     $ 5,922  
 
 
 
Financial information for the company’s operating segments follows:
 
 
       
   
Nine months ended
  
(dollars in thousands)
  
January 31, 2016
    
February 1, 2015
  
Net sales:
            
Mattress Fabrics
   $ 137,522     $ 131,543  
Upholstery Fabrics
     98,085       99,777  
    $ 235,607     $ 231,320  
                 
Gross profit:
                
Mattress Fabrics
   $ 28,133     $ 22,603  
Upholstery Fabrics
     20,365       16,792  
                 
    $ 48,498     $ 39,395  
                 
Selling, general, and administrative expenses:
                
Mattress Fabrics
   $ 8,865     $ 8,019  
Upholstery Fabrics
     11,372       10,518  
Total segment selling, general, and
                
administrative expenses
     20,237       18,537  
Unallocated corporate expenses
     7,275       4,636  
    $ 27,512     $ 23,173  
                 
Income from operations:
                
Mattress Fabrics
   $ 19,267     $ 14,584  
Upholstery Fabrics
     8,994       6,274  
Total segment income from operations
     28,261       20,858  
Unallocated corporate expenses
     (7,275 )     (4,636 )
Total income from operations
     20,986       16,222  
Interest expense
     -       (50 )
Interest income
     150       478  
Other expense
     (405 )     (380 )
Income before income taxes
   $ 20,731     $ 16,270  
 
Balance sheet information for the company’s operating segments follow:
 
 
                   
(dollars in thousands)
  
January 31, 2016
    
February 1, 2015
    
May 3, 2015
  
Segment assets:
                  
Mattress Fabrics
                  
Current assets (1)
   $ 44,309     $ 36,658     $ 41,328  
Non-compete agreement
     922       998       979  
Customer relationships
     728       779       766  
Goodwill
     11,462       11,462       11,462  
Property, plant and equipment (2)
     35,637       33,046       33,773  
Total mattress fabrics assets
     93,058       82,943       88,308  
Upholstery Fabrics
                        
Current assets (1)
     30,960       32,129       29,905  
Property, plant and equipment (3)
     1,590       1,522       1,467  
Total upholstery fabrics assets
     32,550       33,651       31,372  
Total segment assets
     125,608       116,594       119,680  
Non-segment assets:
                        
Cash and cash equivalents
     31,713       28,772       29,725  
Short-term investments
     4,259       8,384       10,004  
Deferred income taxes
     4,312       5,020       5,169  
Income taxes receivable
     23       104       229  
Other current assets
     2,331       2,992       2,440  
Property, plant and equipment (4)
     930       701       838  
Long-term investments
     3,590       2,063       2,415  
Other assets
     785       728       800  
Total assets
   $ 173,551     $ 165,358     $ 171,300  
 
       
   
Nine months ended
  
(dollars in thousands)
  
January 31, 2016
    
February 1, 2015
  
Capital expenditures (5):
            
Mattress Fabrics
   $ 6,215     $ 8,232  
Upholstery Fabrics
     481       390  
Unallocated Corporate
     381       62  
Total capital expenditures
   $ 7,077     $ 8,684  
Depreciation expense:
                
Mattress Fabrics
   $ 4,273     $ 3,692  
Upholstery Fabrics
     615       552  
Total depreciation expense
   $ 4,888     $ 4,244  
 
 
(1)
Current assets represent accounts receivable and inventory for the respective segment.

(2)
The $35.6 million at January 31, 2016, represents property, plant, and equipment of $23.0 million and $12.6 million located in the U.S. and Canada, respectively. The $33.0 million at February 1, 2015, represents property, plant, and equipment of $23.5 million and $9.5 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 $1.6 million at January 31, 2016, represents property, plant, and equipment of $860 and $730 located in the U.S. and China, respectively. The $1.5 million at February 1, 2015, represents property, plant, and equipment of $877 and $645 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 $930, $701, and $838 at January 31, 2016, February 1, 2015 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.