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Investment in Unconsolidated Joint Venture | 3 Months Ended
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Aug. 02, 2020
Equity Method Investments And Joint Ventures [Abstract] |
Investment in Unconsolidated Joint Venture | 8. 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 in an 80,000 square foot facility located in a modern industrial park on the northeastern border of Haiti, which borders the Dominican Republic. CLIH 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. On December 20, 2019, CLIH entered into an agreement to construct an additional plant facility totaling 40,000 square feet, which is currently expected to be completed during the second quarter of fiscal 2021. This new plant facility will be near our existing operations and will provide additional capacity that will enhance our ability to produce sewn covers. This agreement requires payments totaling $1.2 million, of which $600,000 was paid in February 2020, $180,000 was paid May 2020, and the remaining balance of $420,000 is to be paid upon completion. CLIH reported net income totaling $134,000 and $26,000 for the three-month periods ending August 2, 2020, and August 4, 2019, respectively. Our equity interest in CLIH’s net income was $67,000 and $13,000 for the three-month periods ending August 2, 2020, and August 4, 2019, respectively. The following table summarizes information on assets, liabilities, and members’ equity of our equity method investment in CLIH:
(dollars in thousands) |  | August 2, 2020 |  |  | August 4, 2019 |  |  | May 3, 2020 |
Total assets |  | $ | 3,668 |  |  | $ | 3,161 |  |  | $ | 3,338 |
Total liabilities |  | $ | 149 |  |  | $ | 120 |  |  | $ | 133 |
Total members’ equity |  | $ | 3,519 |  |  | $ | 3,041 |  |  | $ | 3,205 |
As of August 2, 2020, August 4, 2019, and May 3, 2020, our investment in CLIH totaled $1.8 million, $1.5 million, and $1.6 million, respectively, which represents the company’s fifty percent ownership interest in CLIH.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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