Revenue from Contracts with Customers

9 Months Ended

Feb. 02, 2020

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. Read is included in the upholstery fabrics segment. 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 February 2, 2020, January 27, 2019, and April 28, 2019.

A summary of the activity of deferred revenue for the nine-month periods ended February 2, 2020, and January 27, 2019, follows:

	Nine months ended
(dollars in thousands)	February 2, 2020			January 27, 2019
Beginning balance	$	399		$	809
Revenue recognized on contract liabilities		(1,917	)		(2,171	)
Payments received for services not yet rendered		1,916			1,854
Ending balance	$	398		$	492

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 February 2, 2020:

(dollars in thousands)	Mattress Fabrics		Upholstery Fabrics		Home Accessories		Total
Products transferred at a point in time	$	33,105	$	32,044	$	3,906	$	69,055
Services transferred over time		—		2,943		—		2,943
Total Net Sales	$	33,105	$	34,987	$	3,906	$	71,998

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the nine-month period ending February 2, 2020:

(dollars in thousands)	Mattress Fabrics		Upholstery Fabrics		Home Accessories		Total
Products transferred at a point in time	$	107,250	$	92,835	$	11,485	$	211,570
Services transferred over time		—		7,895		—		7,895
Total Net Sales	$	107,250	$	100,730	$	11,485	$	219,465

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 January 27, 2019:

(dollars in thousands)	Mattress Fabrics		Upholstery Fabrics		Home Accessories		Total
Products transferred at a point in time	$	35,732	$	34,730	$	4,390	$	74,852
Services transferred over time		—		2,374		—		2,374
Total Net Sales	$	35,732	$	37,104	$	4,390	$	77,226

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the nine-month period ending January 27, 2019:

(dollars in thousands)	Mattress Fabrics		Upholstery Fabrics		Home Accessories		Total
Products transferred at a point in time	$	107,335	$	98,610	$	11,759	$	217,704
Services transferred over time		—		8,001		—		8,001
Total Net Sales	$	107,335	$	106,611	$	11,759	$	225,705