Investment in Unconsolidated Joint Venture

9 Months Ended

Jan. 27, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Joint Venture

9. Investment in Unconsolidated Joint Venture

Culp International Holdings, Ltd., (Culp International) a wholly-owned subsidiary of the company, entered into a joint venture agreement, pursuant to which Culp International owns fifty percent of Class International Holdings, Ltd. (CLIH). CLIH produces cut and sewn mattress covers, and its operations are located in a modern industrial park in northeastern Haiti, which borders the Dominican Republic. CLIH commenced production during the second quarter of fiscal 2018 (October 2017) and complements our mattress fabric operations with a mirrored platform that enhances our ability to meet customer demand while adding a lower cost operation to our platform.

CLIH incurred a net loss totaling $218,000 and $498,000 for the nine-month periods ending January 27, 2019 and January 28, 2018, respectively. CLIH’s net loss through the third quarter of fiscal 2018 included a significant amount of initial start-up operating expenses. Our equity interests in these net losses were $109,000 and $249,000 for the nine-month periods ending January 27, 2019 and January 28, 2018, respectively.

The following table summarizes information on assets, liabilities and members’ equity of our equity method investment in CLIH:


(dollars in thousands)	January 27, 2019		January 28, 2018		April 29, 2018
Total assets	$	3,255	$	3,186	$	3,130
Total liabilities	$	230	$	150	$	128
Total members’ equity	$	3,025	$	3,036	$	3,002

At January 27, 2019, January 28, 2018, and April 29, 2018, our investment in CLIH totaled $1.5 million, which represents the company’s fifty percent ownership interest in CLIH.