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Segment Information (Tables) | 9 Months Ended
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Feb. 02, 2020
Segment Reporting [Abstract] |
Schedule of Operating Segments Information | Financial information for the company’s operating segments follows:
|  | Three months ended |
|  | February 2, 2020 |  |  | January 27, 2019 |
Net sales: |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 33,105 |  |  | $ | 35,732 |
Upholstery Fabrics |  |  | 34,987 |  |  |  | 37,104 |
Home Accessories |  |  | 3,906 |  |  |  | 4,390 |
|  | $ | 71,998 |  |  | $ | 77,226 |
Gross profit: |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 4,614 |  |  | $ | 5,963 |
Upholstery Fabrics |  |  | 6,906 |  |  |  | 7,624 |
Home Accessories |  |  | 864 |  |  |  | 1,050 |
Total segment gross profit |  | $ | 12,384 |  |  | $ | 14,637 |
Restructuring related charges |  |  | — |  | (4) |  | (514 | )
|  | $ | 12,384 |  |  | $ | 14,123 |
Selling, general, and administrative expenses |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 2,836 |  |  | $ | 2,755 |
Upholstery Fabrics |  |  | 3,876 |  |  |  | 3,825 |
Home Accessories |  |  | 1,046 |  |  |  | 1,361 |
Unallocated corporate expenses |  |  | 2,194 |  |  |  | 1,628 |
Total segment selling, general, and administrative expenses |  | $ | 9,952 |  |  | $ | 9,569 |
Other non-recurring charges |  |  | — |  | (5) |  | 429 |
Restructuring related charges |  |  | — |  | (5) |  | 40 |
|  | $ | 9,952 |  |  | $ | 10,038 |
Income (loss) from operations: |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 1,777 |  |  | $ | 3,208 |
Upholstery Fabrics |  |  | 3,030 |  |  |  | 3,799 |
Home Accessories |  |  | (181 | ) |  |  | (311 | )
Unallocated corporate expenses |  |  | (2,194 | ) |  |  | (1,628 | )
Total segment income from operations |  |  | 2,432 |  |  |  | 5,068 |
Asset impairments | (1) |  | (13,639 | ) |  |  | — |
Reversal of contingent consideration - earn-out obligation | (2) |  | 6,081 |  |  |  | — |
Restructuring credit and restructuring related charges | (3) |  | 35 |  | (6) |  | (340 | )
Other non-recurring charges |  |  | — |  | (5) |  | (429 | )
Total (loss) income from operations |  |  | (5,091 | ) |  |  | 4,299 |
Interest expense |  |  | (8 | ) |  |  | — |
Interest income |  |  | 242 |  |  |  | 251 |
Other expense |  |  | (267 | ) |  |  | (288 | )
(Loss) income before income taxes |  | $ | (5,124 | ) |  | $ | 4,262 |
(1) | Our home accessories segment incurred asset impairment charges totaling $13.6 million, of which $11.2 million and $2.4 million pertained to this segment’s goodwill and tradename, respectively.
(2) | We recorded a reversal of $6.1 million that pertained to a contingent earn-out obligation associated with the purchase of our 80% ownership interest in eLuxury, LLC.
(3) | The $35 restructuring credit pertains to employee termination benefits associated with our closed Anderson, SC upholstery fabrics facility.
(4) | Cost of sales for the three-month period ending January 27, 2019, includes a $514 restructuring related charge for operating costs associated with our closed upholstery fabrics facility located in Anderson, SC.
(5) | Selling, general, and administrative expenses for the three-months ending January 27, 2019, includes a $469 non-recurring charge associated with the accelerated vesting of certain stock-based compensation agreements. Of this $469 non-recurring charge, $429 and $40 pertain to unallocated corporate expenses and a restructuring related charge, respectively, associated with our closed Anderson, SC upholstery fabrics plant facility.
(6) | The $340 represents restructuring related charges totaling $554 disclosed in notes 4 and 5 above, partially offset by a restructuring credit of $214. The $214 restructuring credit represents a $362 gain on the sale of the building and land associated with our Anderson, SC upholstery fabrics facility, partially offset by a charge of $148 for employee termination benefits.
|  | Nine months ended |
|  | February 2, 2020 |  |  | January 27, 2019 |
Net sales: |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 107,250 |  |  | $ | 107,335 |
Upholstery Fabrics |  |  | 100,730 |  |  |  | 106,611 |
Home Accessories |  |  | 11,485 |  |  |  | 11,759 |
|  | $ | 219,465 |  |  | $ | 225,705 |
Gross profit: |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 16,553 |  |  | $ | 17,050 |
Upholstery Fabrics |  |  | 20,905 |  |  |  | 20,031 |
Home Accessories |  |  | 2,395 |  |  |  | 3,435 |
Total segment gross profit |  | $ | 39,853 |  |  | $ | 40,516 |
Other non-recurring charges |  |  | — |  | (8) |  | (159 | )
Restructuring related charges |  |  | — |  | (9) |  | (2,349 | )
|  | $ | 39,853 |  |  | $ | 38,008 |
Selling, general, and administrative expenses |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 8,860 |  |  | $ | 8,141 |
Upholstery Fabrics |  |  | 11,528 |  |  |  | 10,985 |
Home Accessories |  |  | 3,462 |  |  |  | 3,690 |
Unallocated corporate expenses |  |  | 6,933 |  |  |  | 4,800 |
Total segment selling, general, and administrative expenses |  | $ | 30,783 |  |  | $ | 27,616 |
Other non-recurring charges |  |  | — |  | (10) |  | 518 |
Restructuring related charges |  |  | — |  | (5) |  | 40 |
|  | $ | 30,783 |  |  | $ | 28,174 |
Income (loss) from operations: |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 7,693 |  |  | $ | 8,910 |
Upholstery Fabrics |  |  | 9,378 |  |  |  | 9,044 |
Home Accessories |  |  | (1,068 | ) |  |  | (254 | )
Unallocated corporate expenses |  |  | (6,933 | ) |  |  | (4,800 | )
Total segment income from operations |  |  | 9,070 |  |  |  | 12,900 |
Asset impairments | (1) |  | (13,639 | ) |  |  | — |
Reversal of contingent consideration - earn-out obligation | (2) |  | 6,081 |  |  |  | — |
Restructuring credit and restructuring related charges | (7) |  | 70 |  | (11) |  | (1,563 | )
Other non-recurring charges |  |  | — |  | (12) |  | (678 | )
Total income from operations |  |  | 1,582 |  |  |  | 10,659 |
Interest expense |  |  | (47 | ) |  |  | (38 | )
Interest income |  |  | 732 |  |  |  | 552 |
Other expense |  |  | (441 | ) |  |  | (688 | )
Income before income taxes |  | $ | 1,826 |  |  | $ | 10,485 |
(7) | The $70 restructuring credit pertains to employee termination benefits associated with our closed Anderson, SC upholstery fabrics facility.
(8) | The $159 represents a non-recurring charge regarding employee termination benefits and other operational reorganization costs associated with our mattress fabrics segment.
(9) | The $2.4 million consists of restructuring related charges of $1.6 million for inventory markdowns and $784 for other operating costs associated with our closed upholstery fabrics facility located in Anderson, SC.
(10) | The $518 represents non-recurring charges of $429 for the accelerated vesting of a stock-based compensation agreement associated with unallocated corporate expenses and $89 for employee termination benefits and operational reorganization costs associated with our mattress fabrics segment.
(11) | The $1.6 million represents related charges disclosed in note 9 above and $40 associated with the accelerated vesting of a stock-based compensation agreement, partially offset by a restructuring credit of $825. The $825 restructuring credit represents a $1.5 million gain on the sale of property, plant, and equipment associated with our Anderson, SC upholstery fabrics facility, partially offset by a charge of $661 for employee termination benefits.
(12) | The $678 represents non-recurring charges of $429 for the accelerated vesting of a stock-based compensation agreement and $249 regarding employee termination benefits and other operational reorganization costs associated with our mattress fabrics segment.
Balance sheet information for the company’s operating segments follows:
(dollars in thousands) |  | February 2, 2020 |  |  | January 27, 2019 |  |  | April 28, 2019 |
Segment assets: |  |  |  |  |  |  |  |  |  |  |  |
Mattress Fabrics |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  | $ | 12,940 |  |  | $ | 12,373 |  |  | $ | 12,098 |
Inventory |  |  | 29,753 |  |  |  | 26,243 |  |  |  | 24,649 |
Assets held for sale |  |  | 67 |  |  |  | — |  |  |  | — |
Property, plant and equipment (1) |  |  | 42,368 |  |  |  | 45,845 |  |  |  | 44,266 |
Right of use assets (2) |  |  | 426 |  |  |  | — |  |  |  | — |
Investment in unconsolidated joint venture |  |  | 1,668 |  |  |  | 1,512 |  |  |  | 1,508 |
Total mattress fabrics assets |  |  | 87,222 |  |  |  | 85,973 |  |  |  | 82,521 |
Upholstery Fabrics |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  |  | 12,908 |  |  |  | 13,367 |  |  |  | 11,274 |
Inventory |  |  | 24,256 |  |  |  | 26,067 |  |  |  | 22,915 |
Property, plant and equipment (3) |  |  | 1,675 |  |  |  | 1,957 |  |  |  | 1,795 |
Right of use assets (4) |  |  | 2,143 |  |  |  | — |  |  |  | — |
Total upholstery fabrics assets |  |  | 40,982 |  |  |  | 41,391 |  |  |  | 35,984 |
Home Accessories |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  |  | 766 |  |  |  | 402 |  |  |  | 379 |
Inventory |  |  | 3,566 |  |  |  | 3,105 |  |  |  | 3,296 |
Property, plant and equipment (5) |  |  | 1,728 |  |  |  | 1,985 |  |  |  | 1,910 |
Right of use assets (6) |  |  | 949 |  |  |  | — |  |  |  | — |
Total home accessories assets |  |  | 7,009 |  |  |  | 5,492 |  |  |  | 5,585 |
Total segment assets |  |  | 135,213 |  |  |  | 132,856 |  |  |  | 124,090 |
Non-segment assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  | 21,872 |  |  |  | 26,418 |  |  |  | 40,008 |
Short-term investments (Held-to-Maturity) |  |  | 3,171 |  |  |  | 13,544 |  |  |  | 5,001 |
Short-term investments (Available for Sale) |  |  | 7,580 |  |  |  | — |  |  |  | — |
Current income taxes receivable |  |  | 776 |  |  |  | — |  |  |  | 776 |
Other current assets |  |  | 3,219 |  |  |  | 2,954 |  |  |  | 2,849 |
Deferred income taxes |  |  | 920 |  |  |  | 3,224 |  |  |  | 457 |
Property, plant and equipment (7) |  |  | 609 |  |  |  | 342 |  |  |  | 418 |
Right of use assets (8) |  |  | 2,006 |  |  |  | — |  |  |  | — |
Goodwill |  |  | 16,011 |  |  |  | 27,222 |  |  |  | 27,222 |
Intangible assets |  |  | 7,738 |  |  |  | 10,542 |  |  |  | 10,448 |
Long-term investments (Rabbi Trust) |  |  | 7,804 |  |  |  | 6,834 |  |  |  | 7,081 |
Long-term investments (Held-to-Maturity) |  |  | 2,224 |  |  |  | — |  |  |  | — |
Noncurrent income taxes receivable |  |  | 733 |  |  |  | — |  |  |  | 733 |
Other assets |  |  | 464 |  |  |  | 972 |  |  |  | 643 |
Total assets |  | $ | 210,340 |  |  | $ | 224,908 |  |  | $ | 219,726 |
|  | Nine months ended |
(dollars in thousands) |  | February 2, 2020 |  |  | January 27, 2019 |
Capital expenditures (9): |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 3,416 |  |  | $ | 2,342 |
Upholstery Fabrics |  |  | 253 |  |  |  | 294 |
Home Accessories |  |  | 104 |  |  |  | 33 |
Unallocated Corporate |  |  | 398 |  |  |  | 11 |
Total capital expenditures |  | $ | 4,171 |  |  | $ | 2,680 |
Depreciation expense: |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 5,017 |  |  | $ | 5,265 |
Upholstery Fabrics |  |  | 577 |  |  |  | 595 |
Home Accessories |  |  | 286 |  |  |  | 227 |
Total depreciation expense |  | $ | 5,880 |  |  | $ | 6,087 |
(1) | The $42.4 million at February 2, 2020, represents property, plant, and equipment of $28.7 million and $13.7 million located in the U.S. and Canada, respectively. The $45.8 million at January 27, 2019, represents property, plant, and equipment of $33.5 million and $12.3 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 $426 at February 2, 2020, represents right of use assets located in the U.S.
(3) | The $1.7 million at February 2, 2020, represents property, plant, and equipment of $1.2 million and $469 located in the U.S. and China, respectively. The $2.0 million at January 27, 2019, represents property, plant, and equipment of $1.3 million and $615 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 $2.1 million at February 2, 2020, represents right of use assets of $1.1 million and $1.0 million located in China and the U.S., respectively
(5) | The $1.7 million at February 2, 2020, $2.0 million at January 27, 2019, and $1.9 million at April 28, 2019, represents property, plant and equipment located in the U.S.
(6) | The $949 million at February 2, 2020, represents right of use assets located in the U.S.
(7) | The $609, $342, and $418 at February 2, 2020, January 27, 2019, 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 $2.0 million at February 2, 2020, 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 Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=108376223&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8721-108599 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8906-108599 + Details
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