XML 34 R21.htm IDEA: XBRL DOCUMENT
v3.20.2

Segment Information | 3 Months Ended
--- | ---
Aug. 02, 2020
Segment Reporting [Abstract] |
Segment Information | 14. Segment Information Overall Continuing Operations Our continuing operations are classified into two business segments: mattress fabrics and upholstery fabrics. Mattress Fabrics The mattress fabrics segment manufactures, sources, and sells fabrics and mattress covers primarily to bedding manufacturers. Upholstery Fabrics The upholstery fabrics segment develops, manufactures, sources, and sells fabrics primarily to residential and commercial furniture manufacturers. Additionally, the segment includes Read, a wholly-owned subsidiary, which is a turn-key provider of window treatments and sourcing of upholstery fabrics and other products, as well as measuring, and installation services of Read’s own products for the hospitality and commercial industries. Read also supplies soft goods such as decorative top sheets, coverlets, duvet covers, bed skirts, bolsters, and pillows. Discontinued Operation – Home Accessories Segment As disclosed in Note 3 of the consolidated financial statements, we sold our entire ownership interest in eLuxury on March 31, 2020, and consequently our home accessories segment was eliminated at such time. Thus, the results of operations associated with our home accessories segment were excluded from our continuing operations and presented as a discontinued operation in our consolidated financial statements. Our former home accessories segment was our finished products business that manufactured, sourced, and sold bedding accessories and home goods directly to consumers and businesses through global e-commerce, business-to-business, and other sales channels. See Note 3 of the consolidated financial statements for detailed financial information of our former home accessories segment. As disclosed in Note 3, a reconciliation is provided that has detailed balance sheet information as of August 4, 2019, that is reconciled to captions titled “current assets – discontinued operation”, “noncurrent assets – discontinued operation”, current liabilities – discontinued operation”, and “noncurrent liabilities – discontinued operation” presented in the Consolidated Balance Sheet as of August 4, 2019. Also, a reconciliation is provided that pertains to detailed income statement information disclosed in Note 3 and is reconciled to net loss from discontinued operation presented in the Consolidated Statements of Net Income for the three-month period ending August 4, 2019. Financial Information We evaluate the operating performance of our current business segments based upon income (loss) from continuing operations before certain unallocated corporate expenses, asset impairments, restructuring credit (expense) and restructuring related charges, and other non-recurring items. Cost of sales for each segment includes costs to develop, manufacture, or source our products, including costs such as raw material and finished goods purchases, direct and indirect labor, overhead, and incoming freight charges. Unallocated corporate expenses primarily represent compensation and benefits for certain executive officers and their staff, all costs associated with being a public company, and other miscellaneous expenses. Segment assets include assets used in the operations of each segment and primarily consist of accounts receivable, inventories, property, plant, and equipment, and right of use assets. The mattress fabrics segment also includes in segment assets its investment in an unconsolidated joint venture. Goodwill and intangible assets are not included in segment assets, as these assets are not used by the Chief Operating Decision Maker to evaluate the respective segment’s operating performance, allocate resources to the individual segments, or determine executive compensation. Statements of operations for our current operating segments are as follows:
|  | Three months ended |
|  | August 2, 2020 |  |  | August 4, 2019 |
net sales by segment: |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 36,103 |  |  | $ | 38,859 |
upholstery fabrics |  |  | 28,361 |  |  |  | 31,860 |
net sales |  | $ | 64,464 |  |  | $ | 70,719 |
gross profit from continuing operations by segment: |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 4,608 |  |  | $ | 5,691 |
upholstery fabrics |  |  | 5,293 |  |  |  | 6,721 |
gross profit from continuing operations |  | $ | 9,901 |  |  | $ | 12,412 |
selling, general, and administrative expenses by segment: |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 2,763 |  |  | $ | 3,071 |
upholstery fabrics |  |  | 3,180 |  |  |  | 3,846 |
unallocated corporate expenses |  |  | 2,075 |  |  |  | 2,232 |
selling, general, and administrative expenses |  | $ | 8,018 |  |  | $ | 9,149 |
income (loss) from continuing operations by segment: |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 1,845 |  |  | $ | 2,620 |
upholstery fabrics |  |  | 2,113 |  |  |  | 2,875 |
unallocated corporate expenses |  |  | (2,075 | ) |  |  | (2,232 | )
subtotal |  |  | 1,883 |  |  |  | 3,263 |
restructuring credit |  |  | — |  |  |  | 35 |
total income from continuing operations |  | $ | 1,883 |  |  | $ | 3,298 |
interest expense |  |  | (51 | ) |  |  | — |
interest income |  |  | 58 |  |  |  | 260 |
other expense |  |  | (366 | ) |  |  | (95 | )
income before income taxes from continuing operations |  | $ | 1,524 |  |  | $ | 3,463 |
Balance sheet information for our current operating segments follows:
(dollars in thousands) |  | August 2, 2020 |  |  | August 4, 2019 |  |  | May 3, 2020 |
Segment assets: |  |  |  |  |  |  |  |  |  |  |  |
Mattress Fabrics |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  | $ | 15,585 |  |  | $ | 12,632 |  |  | $ | 12,212 |
Inventory |  |  | 20,070 |  |  |  | 24,410 |  |  |  | 26,620 |
Property, plant and equipment (1) |  |  | 39,597 |  |  |  | 43,211 |  |  |  | 40,682 |
Right of use assets (2) |  |  | 832 |  |  |  | 235 |  |  |  | 362 |
Investment in unconsolidated joint venture |  |  | 1,759 |  |  |  | 1,520 |  |  |  | 1,602 |
Total mattress fabrics assets |  |  | 77,843 |  |  |  | 82,008 |  |  |  | 81,478 |
Upholstery Fabrics |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  |  | 14,308 |  |  |  | 11,029 |  |  |  | 12,881 |
Inventory |  |  | 20,332 |  |  |  | 23,183 |  |  |  | 21,287 |
Property, plant and equipment (3) |  |  | 1,634 |  |  |  | 1,856 |  |  |  | 1,633 |
Right of use assets (4) |  |  | 3,802 |  |  |  | 3,054 |  |  |  | 1,633 |
Total upholstery fabrics assets |  |  | 40,076 |  |  |  | 39,122 |  |  |  | 37,434 |
Total segment assets |  |  | 117,919 |  |  |  | 121,130 |  |  |  | 118,912 |
Non-segment assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  | 39,986 |  |  |  | 44,236 |  |  |  | 69,790 |
Short-term investments - available for sale |  |  | 983 |  |  |  | — |  |  |  | 923 |
Short-term investments - held-to-maturity |  |  | 5,092 |  |  |  | — |  |  |  | 4,271 |
Current income taxes receivable |  |  | 782 |  |  |  | 776 |  |  |  | 1,585 |
Current assets - discontinued operation |  |  | — |  |  |  | 3,557 |  |  |  | — |
Other current assets |  |  | 3,547 |  |  |  | 2,617 |  |  |  | 2,116 |
Deferred income taxes |  |  | 593 |  |  |  | 486 |  |  |  | 793 |
Property, plant and equipment (5) |  |  | 820 |  |  |  | 408 |  |  |  | 832 |
Right of use assets (6) |  |  | 1,809 |  |  |  | 2,199 |  |  |  | 1,908 |
Goodwill |  |  | — |  |  |  | 13,569 |  |  |  | — |
Intangible assets |  |  | 3,286 |  |  |  | 3,805 |  |  |  | 3,380 |
Long-term investments - rabbi trust |  |  | 7,916 |  |  |  | 7,347 |  |  |  | 7,834 |
Long-term investments - held-to-maturity |  |  | 1,314 |  |  |  | — |  |  |  | 2,076 |
Noncurrent income taxes receivable |  |  | — |  |  |  | 733 |  |  |  | — |
Other assets |  |  | 540 |  |  |  | 526 |  |  |  | 664 |
Long-term note receivable affiliated with discontinued operation |  |  | — |  |  |  | 1,800 |  |  |  | — |
Noncurrent assets - discontinued operation |  |  | — |  |  |  | 23,058 |  |  |  | — |
Total assets |  | $ | 184,587 |  |  | $ | 226,247 |  |  | $ | 215,084 |
|  | Three months ended |
(dollars in thousands) |  | August 2, 2020 |  |  | August 4, 2019 |
Capital expenditures (7): |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 545 |  |  | $ | 669 |
Upholstery Fabrics |  |  | 113 |  |  |  | 184 |
Unallocated Corporate |  |  | 68 |  |  |  | 56 |
Total capital expenditures |  | $ | 726 |  |  | $ | 909 |
Depreciation expense: |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 1,631 |  |  | $ | 1,620 |
Upholstery Fabrics |  |  | 191 |  |  |  | 190 |
Discontinued Operation |  |  | — |  |  |  | 95 |
Total depreciation expense |  | $ | 1,822 |  |  | $ | 1,905 |
(1) | The $39.6 million as of August 2, 2020, represents property, plant, and equipment of $27.0 million and $12.6 million located in the U.S. and Canada, respectively. The $43.2 million as of August 4, 2019, represents property, plant, and equipment of $31.2 million and $12.0 million located in the U.S. and Canada, respectively. The $40.7 million as of May 3, 2020, represents property, plant, and equipment of $27.7 million and $13.0 million located in the U.S. and Canada, respectively.
(2) | The $832 as of August 2, 2020 represents right of use assets of $297 and $535 located in the U.S. and Canada, respectively. The $235 as of August 4, 2019, and the $362 as of May 3, 2020, represents right of use assets located in the U.S.
(3) | The $1.6 million as of August 2, 2020, represents property, plant, and equipment of $1.2 million and $456 located in the U.S. and China, respectively. The $1.9 million as of August 4, 2019, represents property, plant, and equipment of $1.3 million and $548 located in the U.S. and China, respectively. The $1.6 million as of May 3, 2020, represents property, plant, and equipment of $1.2 million and $471 located in the U.S. and China, respectively.
(4) | The $3.8 million as of August 2, 2020, represents right of use assets of $3.1 million and $710 located in China and the U.S., respectively. The $3.1 million a s of August 4, 2019, represents right of use assets of $1.8 million and $1.3 million located in China and the U.S., respectively. The $1.6 million as of May 3, 2020, represents right of use assets of $857 and $776 located in the U.S. and China, respectively.
(5) | The $820, $408, and $832 as of August 2, 2020, August 4, 2019, and May 3, 2020, respectively, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by our mattress fabrics and upholstery fabrics segments. Property, plant, and equipment associated with our corporate departments reside in the U.S.
(6) | The $1.8 million, $2.2 million, and $1.9 million as of August 2, 2020, August 4, 2019, and May 3, 2020, respectively, represents right of use assets located in the U.S
(7) | Capital expenditure amounts are stated on the accrual basis. See Consolidated Statements of Cash Flows for capital expenditure amounts on a cash basis.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration