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SEGMENT INFORMATION
 12 Months Ended
Apr. 30, 2017
Segment Reporting [Abstract]  
SEGMENT INFORMATION
16.
SEGMENT INFORMATION
 
The company’s operations are classified into two business segments: mattress fabrics and upholstery fabrics. The mattress fabrics segment manufacturers, sources, and sells fabrics and mattress covers to bedding manufacturers. The upholstery fabrics segment manufacturers, sources, and sells fabrics primarily to residential and commercial furniture manufacturers.
 

Net sales denominated in U.S. dollars accounted for 92%, 93% and 92% of total consolidated net sales in 2017, 2016, and 2015, respectively. International sales accounted for 22% of net sales in 2017, 2016, and 2015, respectively, and are summarized by geographic area as follows:

(dollars in thousands)
  
2017
    
2016
    
2015
  
north america (excluding USA) (1)
  
$
29,995
      
31,667
      
30,758
  
far east and asia (2)
    
34,695
      
31,927
      
31,855
  
all other areas
    
3,618
      
4,336
      
4,720
  
   
$
68,308
      
67,930
      
67,333
  
 
(1) Of this amount, $22.3 million, $24.2 million, and $24.1 million are attributable to shipments to Mexico in fiscal 2017, 2016, and 2015, respectively.
(2) Of this amount $26.6 million, $23.1 million, and $26.5 million are attributable to shipment to China in fiscal 2017, 2016, and 2015, respectively.

Sales are attributed to individual countries based upon location that the company ships its products to for delivery to customers.

The company evaluates the operating performance of its 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 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, an investment in an unconsolidated joint venture, a non-compete agreement and customer relationships associated with an acquisition.
 
Statements of operations for the company’s operating segments are as follows:

(dollars in thousands)   
   2017     2016    
2015
  
net sales:                        
upholstery fabrics   
   $ 118,739       126,441      
130,427
  
mattress fabrics   
     190,805       186,419      
179,739
  
  $ 309,544       312,860      
310,166
  

gross profit:                  
upholstery fabrics
  
$
26,170
      
26,393
      
22,690
  
mattress fabrics
    
43,065
      
38,718
      
32,877
  
   
$
69,235
      
65,111
      
55,567
  
 
 
(dollars in thousands)
  
2017
    
2016
    
2015
  
selling, general, and administrative expenses:
                  
upholstery fabrics
  
$
15,079
      
15,094
      
14,562
  
mattress fabrics
    
13,685
      
12,223
      
11,206
  
unallocated corporate
    
10,393
      
9,456
      
7,010
  
total selling, general, and administrative
                        
expenses
  
$
39,157
      
36,773
      
32,778
  

Income from operations:                  
upholstery fabrics
  
$
11,091
      
11,298
      
8,128
  
mattress fabrics
    
29,380
      
26,496
      
21,671
  
total segment income from operations
    
40,471
      
37,794
      
29,799
  
unallocated corporate expenses
    
(10,393
)
    
(9,456
)
    
(7,010
)
total income from operations
    
30,078
      
28,338
      
22,789
  
interest expense
    
-
      
-
      
(64
)
interest income
    
299
      
176
      
622
  
other expense
    
(681
)
    
(616
)
    
(391
)
income before income taxes
  
$
29,696
      
27,898
      
22,956
  
 
One customer within the upholstery fabrics segment represented 11% of consolidated net sales in fiscal 2017 and 13% of consolidated net sales in fiscal years 2016 and 2015. Two customers within the mattress fabrics segment represented 23%, 22%, and 20% of consolidated net sales in fiscal 2017, 2016, and 2015, respectively. No customers within the upholstery fabrics segment accounted for 10% or more of net accounts receivable as of April 30, 2017 and May 1, 2016, respectively. One customer within the mattress fabrics segment accounted for 18% and 16% of net accounts receivable balance as of April 30, 2017 and May 1, 2016, respectively.
 

 
Balance sheet information for the company’s operating segments follow:
 
(dollars in thousands)    2017     2016     2015  
segment assets                  
mattress fabrics
                  
current assets (1)
  
$
47,038
      
43,472
      
41,328
  
non-compete agreements, net
    
828
      
903
      
979
  
customer relationships
    
664
      
715
      
766
  
goodwill
    
11,462
      
11,462
      
11,462
  
investment in unconsolidated joint venture
    
1,106
      
-
      
-
  
property, plant, and equipment
    
48,916
(2)
    
37,480
(3)
    
33,773
(4)
total mattress fabrics assets
  
$
110,014
      
94,032
      
88,308
  
upholstery fabrics                        
current assets (1)
  
$
29,021
      
26,540
      
29,905
  
property, plant, and equipment
    
1,879
(5)
    
1,564
(6)
    
1,467
(7)
total upholstery fabrics assets
  
$
30,900
      
28,104
      
31,372
  
total segment assets
    
140,914
      
122,136
      
119,680
  
non-segment assets                        
cash and cash equivalents
    
20,795
      
37,787
      
29,725
  
short-term investments
    
2,443
      
4,359
      
10,004
  
income taxes receivable
    
-
      
155
      
229
  
deferred income taxes
    
419
      
2,319
      
5,169
  
other current assets
    
2,894
      
2,477
      
2,440
  
property, plant, and equipment
    
856
(8)
    
929
(8)
    
838
(8)
long-term investments - held-to-maturity
    
30,945
      
-
      
-
  
long-term investments - rabbi trust
    
5,466
      
4,025
      
2,415
  
other assets
    
902
      
955
      
800
  
total assets
  
$
205,634
      
175,142
      
171,300
  
capital expenditures (9):
                        
mattress fabrics
  
$
17,689
      
9,666
      
10,454
  
upholstery fabrics
    
822
      
626
      
468
  
unallocated corporate
    
260
      
416
      
252
  
   
$
18,771
      
10,708
      
11,174
  
depreciation expense                        
mattress fabrics
  
$
6,245
      
5,837
      
5,034
  
upholstery fabrics
    
840
      
834
      
739
  
total segment depreciation expense
  
$
7,085
      
6,671
      
5,773
  
 
(1) Current assets represent accounts receivable and inventory.
(2) The $48.9 million at April 30, 2017, represents property, plant, and equipment located in the U.S. of $34.0 million and located in Canada of $14.9 million.
(3) 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.
(4) 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.
(5) The $1.9 million at April 30, 2017, represents property, plant, and equipment located in the U.S. of $1.2 million and located in China of $655.
(6) 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.
(7) 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.
(8) The $856, $929, and $838 balance at April 30, 2017, May 1, 2016, and May 3, 2015, 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.