Revenue from Contracts with Customers

6 Months Ended

Nov. 03, 2019

Revenue from Contract with Customer [Abstract]

5. Revenue from Contracts with Customers

Nature of Performance Obligations

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. Effective April 1, 2018, we acquired Read Window Products LLC (Read), a

turn-key

provider of window treatments that offers sourcing of upholstery fabrics and other products, measuring, and installation services of their own products for the hospitality and commercial industries. In addition, Read supplies soft goods such as decorative top sheets, coverlets, duvet covers, bed skirts, bolsters, and pillows. 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.

Our primary performance obligations include the sale of mattress fabrics, upholstery fabrics, and bedding and home accessories products, as well as the performance of customized fabrication and installation services of our own products associated with window treatments.

Contract Assets & Liabilities

Certain contracts, primarily those for customized fabrication and installation services, require upfront customer deposits that result in a contract liability which is recorded on the Consolidated Balance Sheets as deferred revenue. If upfront deposits or prepayments are not required, customers may be granted credit terms which generally range from 15 – 45 days. Such terms are common within the industries in which we operate and are not considered financing arrangements. There were no contract assets recognized as of November 3, 2019, October 28, 2018, and April 28, 2019.

A summary of the activity of deferred revenue for the

six-month

periods ended November 3, 2019, and October 28, 2018, follows:


	Six months ended
(dollars in thousands)	November 3, 2019			October 28, 2018
Beginning balance	$	399		$	809
Revenue recognized on contract liabilities		(1,536	)		(1,534	)
Payments received for services not yet rendered		1,512			1,374

Ending balance	$	375		$	649

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 November 3, 2019:


	Mattress		Upholstery		Home
(dollars in thousands)	Fabrics		Fabrics		Accessories		Total
Products transferred at a point in time	$	35,459	$	30,964	$	3,276	$	69,699

Services transferred over time		—		2,920		—		2,920

Total Net Sales	$	35,459	$	33,884	$	3,276	$	72,619

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the

six-month

period ending November 3, 2019:


	Mattress		Upholstery		Home
(dollars in thousands)	Fabrics		Fabrics		Accessories		Total
Products transferred at a point in time	$	74,145	$	60,792	$	7,577	$	142,514

Services transferred over time		—		4,952		—		4,952

Total Net Sales	$	74,145	$	65,744	$	7,577	$	147,466

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 October 28, 2018:


	Mattress		Upholstery		Home
(dollars in thousands)	Fabrics		Fabrics		Accessories		Total
Products transferred at a point in time	$	37,205	$	31,877	$	4,784	$	73,866

Services transferred over time		—		3,140		—		3,140

Total Net Sales	$	37,205	$	35,017	$	4,784	$	77,006

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the

six-month

period ending October 28, 2018:


	Mattress		Upholstery		Home
(dollars in thousands)	Fabrics		Fabrics		Accessories		Total
Products transferred at a point in time	$	71,603	$	63,878	$	7,369	$	142,850

Services transferred over time		—		5,629		—		5,629

Total Net Sales	$	71,603	$	69,507	$	7,369	$	148,479