XML 36 R24.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Segment Information | 3 Months Ended
--- | ---
Jul. 29, 2018
Segment Reporting [Abstract] |
Segment Information | 17. Segment Information Our operations are classified into two business segments: mattress fabrics and upholstery fabrics. The mattress fabrics segment manufactures, sources, and primarily sells fabrics and mattress covers to bedding manufacturers. The upholstery fabrics segment manufactures, sources, develops, and sells fabrics primarily to residential and commercial furniture manufacturers. Effective April 1, 2018, we acquired Read (see Note 3 for further details), a turn key provider of window treatments offering measuring, sourcing, fabrication, and installation services for the hospitality and commercial furniture industries. Currently, our Chief Executive Officer (CODM) evaluates Read’s performance within our upholstery fabrics segment as they provide products and services in similar industries in which our upholstery fabrics segment operates and uses upholstery fabric products to service their customers. Effective June 22, 2018, we acquired eLuxury (see Note 3 for further details), an e-commerce company offering bedding accessories and other home goods directly to consumers. eLuxury’s primary products include a line of mattress pads, and also offer handmade platform beds, cotton bed sheets, and other bedding items. Currently, our CODM evaluates eLuxury’s performance within our mattress fabrics segment as they primarily provide bedding products and service the same industry. 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, develop, 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 associated with 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 and other intangible assets associated with prior acquisitions and the recent acquisition of eLuxury and our investment in an unconsolidated joint venture. The upholstery fabrics segment also includes in segment assets goodwill and other intangible assets associated with the acquisition of Read. Financial information for the company’s operating segments follows:
|  | Three months ended |
|  | July 29, 2018 |  |  | July 30, 2017 |
Net sales: |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 36,983 |  |  | $ | 48,429 |
Upholstery Fabrics |  |  | 34,490 |  |  |  | 31,104 |
|  | $ | 71,473 |  |  | $ | 79,533 |
Gross profit: |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 5,971 |  |  | $ | 9,760 |
Upholstery Fabrics |  |  | 6,153 |  |  |  | 6,705 |
|  | $ | 12,124 |  |  | $ | 16,465 |
Restructuring related charges (1) |  |  | (1,565 | ) |  |  | — |
|  | $ | 10,559 |  |  | $ | 16,465 |
Selling, general, and administrative expenses |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 3,148 |  |  | $ | 3,391 |
Upholstery Fabrics |  |  | 3,626 |  |  |  | 3,811 |
Total segment selling, general, and administrative expenses |  |  | 6,774 |  |  |  | 7,202 |
Unallocated corporate expenses |  |  | 1,259 |  |  |  | 2,299 |
|  | $ | 8,033 |  |  | $ | 9,501 |
Income from operations: |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 2,823 |  |  | $ | 6,368 |
Upholstery Fabrics |  |  | 2,527 |  |  |  | 2,895 |
Total segment income from operations |  |  | 5,350 |  |  |  | 9,263 |
Unallocated corporate expenses |  |  | (1,259 | ) |  |  | (2,299 | )
Restructuring expense and related charges (2) |  |  | (2,016 | ) |  |  | — |
Total income from operations |  |  | 2,075 |  |  |  | 6,964 |
Interest expense |  |  | (20 | ) |  |  | — |
Interest income |  |  | 150 |  |  |  | 131 |
Other expense |  |  | (257 | ) |  |  | (353 | )
Income before income taxes |  | $ | 1,948 |  |  | $ | 6,742 |
(1) | The $1.6 million represents a restructuring related charge for inventory markdowns associated with the closing of our upholstery fabrics operation located in Anderson, SC.
(2) | The $2.0 million represents the $1.6 million restructuring related charge noted above and a restructuring charge of $451 for employee termination benefits associated with the closing of our upholstery fabrics operation located in Anderson, SC.
Balance sheet information for the company’s operating segments follows:
(dollars in thousands) |  | July 29, 2018 |  |  | July 30, 2017 |  |  | April 29, 2018 |
Segment assets: |  |  |  |  |  |  |  |  |  |  |  |
Mattress Fabrics |  |  |  |  |  |  |  |  |  |  |  |
Current assets (1) |  | $ | 45,085 |  |  | $ | 46,750 |  |  | $ | 43,935 |
Tradename |  |  | 6,549 |  |  |  | — |  |  |  | — |
Non-compete agreement |  |  | 734 |  |  |  | 809 |  |  |  | 753 |
Customer relationships |  |  | 600 |  |  |  | 651 |  |  |  | 613 |
Investment in unconsolidated joint venture |  |  | 1,525 |  |  |  | 1,477 |  |  |  | 1,501 |
Goodwill |  |  | 25,115 |  |  |  | 11,462 |  |  |  | 11,462 |
Property, plant and equipment (2) |  |  | 50,297 |  |  |  | 50,270 |  |  |  | 48,797 |
Total mattress fabrics assets |  |  | 129,905 |  |  |  | 111,419 |  |  |  | 107,061 |
Upholstery Fabrics |  |  |  |  |  |  |  |  |  |  |  |
Current assets (1) |  |  | 33,129 |  |  |  | 30,617 |  |  |  | 35,826 |
Goodwill |  |  | 2,107 |  |  |  | — |  |  |  | 2,107 |
Customer relationships |  |  | 2,164 |  |  |  | — |  |  |  | 2,226 |
Tradename |  |  | 683 |  |  |  | — |  |  |  | 683 |
Property, plant and equipment (3) |  |  | 2,370 |  |  |  | 1,857 |  |  |  | 2,445 |
Total upholstery fabrics assets |  |  | 40,453 |  |  |  | 32,474 |  |  |  | 43,287 |
Total segment assets |  |  | 170,358 |  |  |  | 143,893 |  |  |  | 150,348 |
Non-segment assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  | 8,593 |  |  |  | 18,322 |  |  |  | 21,228 |
Short-term investments (Available for Sale) |  |  | — |  |  |  | 2,469 |  |  |  | 2,451 |
Short-term investments (Held-to-Maturity) |  |  | 30,756 |  |  |  | — |  |  |  | 25,759 |
Deferred income taxes |  |  | 3,721 |  |  |  | 436 |  |  |  | 1,458 |
Other current assets |  |  | 3,852 |  |  |  | 3,441 |  |  |  | 2,870 |
Property, plant and equipment (4) |  |  | 511 |  |  |  | 785 |  |  |  | 552 |
Long-term investments (Held-to-Maturity) |  |  | — |  |  |  | 30,907 |  |  |  | 5,035 |
Long-term investments (Rabbi Trust) |  |  | 7,671 |  |  |  | 6,714 |  |  |  | 7,326 |
Other assets |  |  | 910 |  |  |  | 937 |  |  |  | 957 |
Total assets |  | $ | 226,372 |  |  | $ | 207,904 |  |  | $ | 217,984 |
|  | Three months ended |
(dollars in thousands) |  | July 29, 2018 |  |  | July 30, 2017 |
Capital expenditures (5): |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 1,198 |  |  | $ | 2,967 |
Upholstery Fabrics |  |  | 57 |  |  |  | 85 |
Unallocated Corporate |  |  | — |  |  |  | 16 |
Total capital expenditures |  | $ | 1,255 |  |  | $ | 3,068 |
Depreciation expense: |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 1,800 |  |  | $ | 1,612 |
Upholstery Fabrics |  |  | 215 |  |  |  | 195 |
Total depreciation expense |  | $ | 2,015 |  |  | $ | 1,807 |
(1) | Current assets represent accounts receivable and inventory for the respective segment.
(2) | The $50.3 million at July 29, 2018, represents property, plant, and equipment of $37.2 million and $13.1 million located in the U.S. and Canada, respectively. The $50.3 million at July 30, 2017, represents property, plant, and equipment of $35.8 million and $14.5 million located in the U.S. and Canada, respectively. The $48.8 million at April 29, 2018, represents property, plant, and equipment of $35.4 million and $13.4 million located in the U.S. and Canada, respectively.
(3) | The $2.4 million at July 29, 2018, represents property, plant, and equipment of $1.8 million and $616 located in the U.S. and China, respectively. The $1.9 million at July 30, 2017, represents property, plant, and equipment of $1.2 million and $684 located in the U.S. and China, respectively. The $2.4 million at April 29, 2018, represents property, plant, and equipment of $1.8 million and $661 located in the U.S. and China, respectively.
(4) | The $511, $785, and $552 at July 29, 2018, July 30, 2017 and April 29, 2018, 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.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration