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Revenue (Tables)
 3 Months Ended
Jul. 29, 2018
Revenue from Contract with Customer [Abstract]  
Summary of Adjustments Due to ASC 606 Adoption

The cumulative effect of the classification changes related to our allowances for sales returns on our April 30, 2018, balance sheet are as follows:

 

(dollars in thousands)

    Balance at
April 29, 2018		      Adjustments Due to
ASC 606 Adoption (1)		      Balance at
April 30, 2018		  

Balance Sheet

         

Assets:

         

Accounts Receivable

    $ 26,307      $ 1,145      $ 27,452  

Other Current Assets

      2,870        27        2,897  

Liabilities:

         

Accrued Expenses

      9,325        1,172        10,497  

 

(1)

The adjustments associated with the adoption of the new standard are related to classifying allowances for estimated sales returns as a liability rather than as a contra account to accounts receivable on the consolidated balance sheet for the current year’s presentation only. As required under the new standard, we also recorded the estimated allowance for sales returns on a gross basis rather than a net basis by separately reflecting a return goods asset within other current assets rather than netting it with the estimated sales returns liability.

Currently, we expect the adoption of this new standard to be immaterial to our net income on an ongoing basis. The effect of adopting ASC 606 on our Consolidated Statements of Net Income and Consolidated Balance Sheets for the three months ended July 29, 2018, are as follows:

 

(dollars in thousands)

    Three Months
Ended
July 29, 2018		      Adjustments Due to
ASC 606 Adoption (1)		      Balances Without
ASC 606 Adoption		  

Statements of Net Income

         

Net Sales

    $ 71,473      $ (40 )     $ 71,433  

Cost of Sales

      60,914        (40 )       60,874  

Balance Sheet

         

Assets:

         

Accounts Receivable

    $ 23,225      $ 1,123      $ 24,348  

Other Current Assets

      3,852        (40 )       3,812  

Liabilities:

         

Accrued Expenses

    $ 8,176        1,163      $ 9,339  

 

(1)

The adjustments associated with the adoption of the new standard are related to classifying allowances for estimated sales returns as a liability rather than as a contra account to accounts receivable on the consolidated balance sheet for the current year’s presentation only. As required under the new standard, we also recorded the estimated allowance for sales returns on a gross basis rather than a net basis by separately reflecting a return goods asset within other current assets rather than netting it with the estimated sales returns liability.
Summary of Activity for Deferred Revenue

A summary of the activity for deferred revenue follows:

 

(dollars in thousands)

    Three Months Ended
July 29, 2018		  

Balance as of April 29, 2018

    $ 809  

Revenue recognized on contract liabilities during the period

      (742 ) 

Payments received for services not yet rendered during the period

      567  
  

 

 

  

Balance as of July 29, 2018

    $ 634  
  

 

 

  
Summary of Disaggregation of Revenue

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the three-month period ending July 29, 2018.

Net Sales

 

(dollars in thousands)

    Mattress Fabrics      Upholstery Fabrics      Total  

Products transferred at a point in time

    $ 36,983      $ 31,821      $ 68,804  

Services transferred over time

      —          2,669        2,669  
  

 

 

     

 

 

     

 

 

  

Total Net Sales

    $ 36,983      $ 34,490      $ 71,473