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Investment in Unconsolidated Joint Venture
9 Months Ended
Feb. 02, 2020
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 in the second quarter of fiscal 2018 and complements our mattress fabric operations with a reactive platform that enhances our ability to meet customer demand while adding a lower cost operation to our platform.

CLIH reported a net loss of $120,000 and $218,000 for the nine-month periods ending February 2, 2020, and January 27, 2019, respectively. Our equity interest in CLIH’s net loss for the nine-month periods ending February 2, 2020 and January 27, 2019 was $60,000 and $109,000, respectively.

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

 

(dollars in thousands)

 

February 2,

2020

 

 

January 27,

2019

 

 

April 28,

2019

 

Total assets

 

$

3,502

 

 

$

3,255

 

 

$

3,126

 

Total liabilities

 

$

167

 

 

$

230

 

 

$

111

 

Total members’ equity

 

$

3,335

 

 

$

3,025

 

 

$

3,015

 

 

At February 2, 2020, January 27, 2019, and April 28, 2019, our equity interest in CLIH totaled $1.7 million, $1.5 million, and $1.5 million, respectively.