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Segment Information | 3 Months Ended
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Aug. 04, 2019
Segment Reporting [Abstract] |
Segment Information | 16. Segment Information Our operations are classified into three business segments: mattress fabrics, upholstery fabrics, and home accessories. The mattress fabrics segment manufactures, sources, and sells fabrics and mattress covers primarily to bedding manufacturers. The upholstery fabrics segment develops, manufactures, sources, and sells fabrics primarily to residential and commercial furniture manufacturers. The home accessories segment is our finished products business that manufactures, sources, and sells bedding accessories and home goods directly to consumers and businesses through global e-commerce and business-to-business sales channels. We evaluate the operating performance of our segments based upon income from operations before certain unallocated corporate expenses, restructuring (credit) expense and restructuring related charges, and other non-recurring items. Cost of sales for all segments include costs to develop, 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 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, property, plant and equipment, and right of use assets (see note 19 for further details). The mattress fabrics segment also includes in segment assets their assets held for sale and investment in an unconsolidated joint venture. Goodwill and intangible assets are not included in segment assets, as these assets are not used by the Chief Operating Decision Maker to evaluate the respective segment’s operating performance, to allocate resources to the individual segments, or determine executive compensation. Financial information for the company’s operating segments follows:
|  | Three months ended |
|  | August 4, 2019 |  |  | July 29, 2018 |
Net sales: |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 38,685 |  |  | $ | 34,398 |
Upholstery Fabrics |  |  | 31,860 |  |  |  | 34,490 |
Home Accessories |  |  | 4,302 |  |  |  | 2,585 |
|  | $ | 74,847 |  |  | $ | 71,473 |
Gross profit: |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 5,691 |  |  | $ | 5,302 |
Upholstery Fabrics |  |  | 6,721 |  |  |  | 6,153 |
Home Accessories |  |  | 953 |  |  |  | 669 |
Total segment gross profit |  | $ | 13,365 |  |  | $ | 12,124 |
Restructuring related charges (2) |  |  | — |  |  |  | (1,565 | )
|  | $ | 13,365 |  |  | $ | 10,559 |
Selling, general, and administrative expenses |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 3,071 |  |  | $ | 2,512 |
Upholstery Fabrics |  |  | 3,846 |  |  |  | 3,626 |
Home Accessories |  |  | 1,488 |  |  |  | 636 |
Unallocated corporate expenses |  |  | 2,306 |  |  |  | 1,259 |
|  | $ | 10,711 |  |  | $ | 8,033 |
Income (loss) from operations: |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 2,620 |  |  | $ | 2,790 |
Upholstery Fabrics |  |  | 2,875 |  |  |  | 2,527 |
Home Accessories |  |  | (535 | ) |  |  | 33 |
Unallocated corporate expenses |  |  | (2,306 | ) |  |  | (1,259 | )
Total segment income from operations |  |  | 2,654 |  |  |  | 4,091 |
Restructuring credit (expense) and restructuring related charges (1) (2) |  |  | 35 |  |  |  | (2,016 | )
Total income from operations |  |  | 2,689 |  |  |  | 2,075 |
Interest expense |  |  | (9 | ) |  |  | (20 | )
Interest income |  |  | 249 |  |  |  | 150 |
Other expense |  |  | (87 | ) |  |  | (257 | )
Income before income taxes |  | $ | 2,842 |  |  | $ | 1,948 |
(1) | The $35 restructuring credit represents employee termination benefits associated with the closure of our upholstery fabrics plant facility located in Anderson, SC (see note 11 for further details). The $35 restructuring credit was recorded to restructuring credit in the Consolidated Statements of Net Income for the three-month period ending August 4, 2019.
(2) | The total charge of $2.0 million, represents a restructuring related charge of $1.6 million for inventory markdowns and a $451 restructuring charge for employee termination benefits associated with the closure of our upholstery fabrics plant facility in Anderson, SC. The $1.6 million restructuring related charge and the $451 restructuring charge were recorded to cost of sales and restructuring expense in the Consolidated Statements of Net Income for the three-month period ending July 29, 2018.
Balance sheet information for the company’s operating segments follows:
(dollars in thousands) |  | August 4, 2019 |  |  | July 29, 2018 |  |  | April 28, 2019 |
Segment assets: |  |  |  |  |  |  |  |  |  |  |  |
Mattress Fabrics |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  | $ | 12,632 |  |  | $ | 11,408 |  |  | $ | 12,098 |
Inventory |  |  | 24,410 |  |  |  | 31,506 |  |  |  | 24,649 |
Assets held for sale |  |  | 100 |  |  |  | — |  |  |  | — |
Property, plant and equipment (1) |  |  | 43,211 |  |  |  | 48,156 |  |  |  | 44,266 |
Right of use assets (2) |  |  | 235 |  |  |  | — |  |  |  | — |
Investment in unconsolidated joint venture |  |  | 1,520 |  |  |  | 1,525 |  |  |  | 1,508 |
Total mattress fabrics assets |  |  | 82,108 |  |  |  | 92,595 |  |  |  | 82,521 |
Upholstery Fabrics |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  |  | 11,029 |  |  |  | 11,345 |  |  |  | 11,274 |
Inventory |  |  | 23,183 |  |  |  | 21,784 |  |  |  | 22,915 |
Property, plant and equipment (3) |  |  | 1,856 |  |  |  | 2,370 |  |  |  | 1,795 |
Right of use assets (4) |  |  | 3,054 |  |  |  | — |  |  |  | — |
Total upholstery fabrics assets |  |  | 39,122 |  |  |  | 35,499 |  |  |  | 35,984 |
Home Accessories |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  |  | 429 |  |  |  | 472 |  |  |  | 379 |
Inventory |  |  | 3,067 |  |  |  | 1,699 |  |  |  | 3,296 |
Property, plant and equipment (5) |  |  | 1,815 |  |  |  | 2,141 |  |  |  | 1,910 |
Right of use assets (6) |  |  | 1,042 |  |  |  | — |  |  |  | — |
Total home accessories assets |  |  | 6,353 |  |  |  | 4,312 |  |  |  | 5,585 |
Total segment assets |  |  | 127,583 |  |  |  | 132,406 |  |  |  | 124,090 |
Non-segment assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  | 44,236 |  |  |  | 8,593 |  |  |  | 40,008 |
Short-term investments (Held-to-Maturity) |  |  | — |  |  |  | 30,756 |  |  |  | 5,001 |
Current income taxes receivable |  |  | 776 |  |  |  | — |  |  |  | 776 |
Other current assets |  |  | 2,578 |  |  |  | 3,852 |  |  |  | 2,849 |
Deferred income taxes |  |  | 486 |  |  |  | 3,721 |  |  |  | 457 |
Property, plant and equipment (7) |  |  | 407 |  |  |  | 511 |  |  |  | 418 |
Right of use assets (8) |  |  | 2,199 |  |  |  | — |  |  |  | — |
Goodwill |  |  | 27,222 |  |  |  | 27,222 |  |  |  | 27,222 |
Intangible assets |  |  | 10,354 |  |  |  | 10,730 |  |  |  | 10,448 |
Long-term investments (Rabbi Trust) |  |  | 7,347 |  |  |  | 7,671 |  |  |  | 7,081 |
Noncurrent income taxes receivable |  |  | 733 |  |  |  | — |  |  |  | 733 |
Other assets |  |  | 526 |  |  |  | 910 |  |  |  | 643 |
Total assets |  | $ | 224,447 |  |  | $ | 226,372 |  |  | $ | 219,726 |
|  | Three months ended |
(dollars in thousands) |  | August 4, 2019 |  |  | July 29, 2018 |
Capital expenditures (9): |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 669 |  |  | $ | 1,198 |
Upholstery Fabrics |  |  | 184 |  |  |  | 57 |
Home Accessories |  |  | — |  |  |  | — |
Unallocated Corporate |  |  | 56 |  |  |  | — |
Total capital expenditures |  | $ | 909 |  |  | $ | 1,255 |
Depreciation expense: |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 1,620 |  |  | $ | 1,762 |
Upholstery Fabrics |  |  | 190 |  |  |  | 215 |
Home Accessories |  |  | 95 |  |  |  | 38 |
Total depreciation expense |  | $ | 1,905 |  |  | $ | 2,015 |
(1) | The $43.2 million at August 4, 2019, represents property, plant, and equipment of $31.2 million and $12.0 million located in the U.S. and Canada, respectively. The $48.2 million at July 29, 2018, represents property, plant, and equipment of $35.1 million and $13.1 million located in the U.S. and Canada, respectively. The $44.3 million at April 28, 2019, represents property, plant, and equipment of $32.4 million and $11.9 million located in the U.S. and Canada, respectively.
(2) | The $235 at August 4, 2019, represents right of use assets located in the U.S.
(3) | The $1.9 million at August 4, 2019, represents property, plant, and equipment of $1.3 million and $548 located in the U.S. and China, respectively. 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 $1.8 million at April 28, 2019, represents property, plant, and equipment of $1.2 million and $591 located in the U.S. and China, respectively.
(4) | The $3.1 million at August 4, 2019, represents right of use assets of $1.8 million and $1.3 million located in China and the U.S., respectively
(5) | The $1.8 million at August 4, 2019, $2.1 million at July 29, 2018, and $1.9 million at April 28, 2019, represents property, plant and equipment located in the U.S.
(6) | The $1.0 million at August 4, 2019, represents right of use assets located in the U.S.
(7) | The $407, $511, and $418 at August 4, 2019, July 29, 2018, and April 28, 2019, respectively, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by our mattress fabrics, upholstery fabrics, and home accessories segments. Property, plant, and equipment associated with our corporate departments reside in the U.S.
(8) | The $2.2 million at August 4, 2019, represents right of use assets located in the U.S.
(9) | Capital expenditure amounts are stated on the accrual basis. See Consolidated Statements of Cash Flows for capital expenditure amounts on a cash basis.

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- 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
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