Financial information for the company’s operating segments follows:


	Three months ended
	October 28, 2018			October 29, 2017
Net sales:
Mattress Fabrics	$	41,989		$	48,601
Upholstery Fabrics		35,017			32,097

	$	77,006		$	80,698

Gross profit:
Mattress Fabrics	$	7,498		$	9,730
Upholstery Fabrics		6,257			6,074

Total segment gross profit	$	13,755		$	15,804
Other non-recurring charges (1)		(159	)		—
Restructuring related charges (2)		(270	)		—

	$	13,326		$	15,804

Selling, general, and administrative expenses
Mattress Fabrics	$	4,566		$	3,168
Upholstery Fabrics		3,535			3,700

Total segment selling, general, and administrative expenses		8,101			6,868
Other non-recurring charges (1)		89			—
Unallocated corporate expenses		1,913			2,547

	$	10,103		$	9,415

Income from operations:
Mattress Fabrics	$	2,932		$	6,562
Upholstery Fabrics		2,722			2,374

Total segment income from operations		5,654			8,936
Unallocated corporate expenses		(1,913	)		(2,547	)
Other non-recurring charges (1)		(248	)		—
Restructuring credit and related charges (3)		791			—

Total income from operations		4,284			6,389
Interest expense		(18	)		(37	)
Interest income		151			128
Other expense		(142	)		(321	)

Income before income taxes	$	4,275		$	6,159

(1)

During the three-month and six-month periods ending October 28, 2018, our mattress fabrics segment incurred non-recurring charges totaling $248 that pertained to employee termination benefits and other operational reorganization costs. Of the $248 total non-recurring charge, $159 and $89 were recorded in cost of sales and selling, general, and administrative expenses, respectively.

(2)	The $270 represents a restructuring related charge for other operating costs associated with our closed upholstery fabrics plant facility located in Anderson, SC.

(3)

The $791 pertains to a $1.1 million restructuring credit that represents a $1.1 million gain on the sale of equipment, partially offset by a restructuring charge of $63 for employee termination benefits and a restructuring related charge of $270 for other operating costs associated with our closed upholstery fabrics plant facility located in Anderson, SC.


	Six months ended
	October 28, 2018			October 29, 2017
Net sales:
Mattress Fabrics	$	78,972		$	97,030
Upholstery Fabrics		69,507			63,200

	$	148,479		$	160,230

Gross profit:
Mattress Fabrics	$	13,470		$	19,495
Upholstery Fabrics		12,410			12,773

Total segment gross profit	$	25,880		$	32,268
Other non-recurring charges (1)		(159	)		—
Restructuring related charges (4)		(1,836	)		—

	$	23,885		$	32,268

Selling, general, and administrative expenses
Mattress Fabrics	$	7,714		$	6,559
Upholstery Fabrics		7,161			7,511

Total segment selling, general, and administrative expenses		14,875			14,070
Other non-recurring charges (1)		89			—
Unallocated corporate expenses		3,172			4,846

	$	18,136		$	18,916

Income from operations:
Mattress Fabrics	$	5,755		$	12,936
Upholstery Fabrics		5,249			5,262

Total segment income from operations		11,004			18,198
Unallocated corporate expenses		(3,172	)		(4,846	)
Other non-recurring charges (1)		(248	)		—
Restructuring credit and related charges (5)		(1,225	)		—

Total income from operations		6,359			13,352
Interest expense		(38	)		(37	)
Interest income		301			259
Other expense		(399	)		(674	)

Income before income taxes	$	6,223		$	12,900

(4)	The $1.8 million represents restructuring related charges, of which $1.6 million pertains to inventory markdowns and $270 for other operating costs associated with our closed upholstery fabrics plant facility located in Anderson, SC.

(5)

The $1.2 million pertains to restructuring related charges totaling $1.8 million, partially offset by a restructuring credit of $610 associated with our closed upholstery fabrics plant facility located in Anderson, SC. The $1.8 million restructuring related charge represents $1.6 million for inventory markdowns and $270 for other operating costs. The $610 restructuring credit represents a $1.1 million gain on sale of equipment, partially offset by a charge for employee termination benefits totaling $513.

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


(dollars in thousands)	October 28, 2018		October 29, 2017		April 29, 2018
Segment assets:
Mattress Fabrics
Accounts receivable	$	10,740	$	13,645	$	15,195
Inventory		29,836		29,083		28,740
Property, plant and equipment (1)		48,825		49,965		48,797
Investment in unconsolidated joint venture		1,470		1,522		1,501

Total mattress fabrics assets		90,871		94,215		94,233

Upholstery Fabrics
Accounts receivable		13,622		10,575		11,112
Inventory		20,765		21,126		24,714
Property, plant and equipment (2)		2,048		2,063		2,445

Total upholstery fabrics assets		36,435		33,764		38,271

Total segment assets		127,306		127,979		132,504
Non-segment assets:
Cash and cash equivalents		14,768		15,739		21,228
Short-term investments (Available for Sale)		—		2,478		2,451
Short-term investments (Held-to-Maturity)		26,719		4,015		25,759
Assets held for sale		237		—		—
Other current assets		2,461		2,263		2,870
Deferred income taxes		3,614		491		1,458
Property, plant and equipment (3)		452		502		552
Goodwill		27,222		11,462		13,569
Intangible assets		10,636		1,428		4,275
Long-term investments (Held-to-Maturity)		—		26,853		5,035
Long-term investments (Rabbi Trust)		7,851		6,921		7,326
Other assets		945		912		957

Total assets	$	222,211	$	201,043	$	217,984


	Six months ended
(dollars in thousands)	October 28, 2018		October 29, 2017
Capital expenditures (4):
Mattress Fabrics	$	1,578	$	4,364
Upholstery Fabrics		267		203
Unallocated Corporate		—		30

Total capital expenditures	$	1,845	$	4,597

Depreciation expense:
Mattress Fabrics	$	3,644	$	3,310
Upholstery Fabrics		412		403

Total depreciation expense	$	4,056	$	3,713

(1)

The $48.8 million at October 28, 2018, represents property, plant, and equipment of $36.1 million and $12.7 million located in the U.S. and Canada, respectively. The $50.0 million at October 29, 2017, represents property, plant, and equipment of $35.8 million and $14.2 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.

(2)

The $2.0 million at October 28, 2018, represents property, plant, and equipment of $1.4 million and $636 located in the U.S. and China, respectively. The $2.1 million at October 29, 2017, represents property, plant, and equipment of $1.4 million and $722 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.

(3)

The $452, $502, and $552 at October 28, 2018, October 29, 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.

(4)	Capital expenditure amounts are stated on the accrual basis. See Consolidated Statements of Cash Flows for capital expenditure amounts on a cash basis.