Home Accessories Segment – Discontinued Operation (Tables)

3 Months Ended

Aug. 02, 2020

Discontinued Operations And Disposal Groups [Abstract]

Summary of Disposal of Discontinued Operation on Consolidated Balance Sheet

The following is a summary of the assets and liabilities of the disposal group that are presented separately as a discontinued operation on the Consolidated Balance Sheet as of August 4, 2019.

	August 4,
(dollars in thousands)	2019
ASSETS
current assets:
cash and cash equivalents	$	—
accounts receivable		429
inventories		3,067
other current assets		61
total current assets - discontinued operation		3,557
property, plant, and equipment		1,814
goodwill		13,653
intangible asset		6,549
right of use asset		1,042
total noncurrent assets - discontinued operation		23,058
total assets	$	26,615
LIABILITIES AND NET ASSETS
current liabilities:
accounts payable	$	783
operating lease liability - current		186
accrued expenses		462
total current liabilities - discontinued operation		1,431
loan payable - Culp Inc.		1,800
subordinated loan payable - noncontrolling interest		925
operating lease liability - long-term		874
total noncurrent liabilities - discontinued operation		3,599
total liabilities		5,030
total net assets of discontinued operation	$	21,585

Summary of Loss Before Income Tax from Discontinued Operation on Consolidated Statements of Net Income

The following is a summary of the major classes of financial statement line items constituting loss before income taxes from discontinued operation that are presented in the Consolidated Statements of Net Income for the three-months ending August 4, 2019:

	August 4,
(dollars in thousands)	2019
net sales	$	4,302
cost of sales		(3,349	)
gross profit		953
selling, general and administrative expenses		(1,562	)
interest expense (1)		(20	)
other income		8
loss before income taxes from discontinued operation		(621	)
income tax benefit		11
net loss from discontinued operation	$	(610	)

(1)	Interest expense is directly attributable to our discontinued operations as it pertains to loans payable assumed by the buyer, (the former noncontrolling interest holder) or required to be paid to Culp Inc. based on the terms of the sale agreement.

Summary of Net (Loss) Income from Continuing Operations, Net Loss from Discontinued Operation, and Net (Loss) Income Attributable to Common Shareholders and Noncontrolling Interest

The following is a summary of net (loss) income from continuing operations, net loss from discontinued operation, and net (loss) income attributable to Culp Inc. common shareholders and the noncontrolling interest associated with our discontinued operation for the three-months ending August 2, 2020, and August 4, 2019:

	August 2,			August 4,
(dollars in thousands)	2020			2019
net (loss) income from continuing operations	$	(2,733	)	$	1,784
net (loss) income from continuing operations attributable to noncontrolling interest		—			—
net (loss) income from continuing operations attributable to Culp Inc. common shareholders	$	(2,733	)	$	1,784
net loss from discontinued operation	$	-		$	(610	)
net loss from discontinued operation attributable to noncontrolling interest		—			164
net loss from discontinued operation attributable to Culp Inc. common shareholders	$	-		$	(446	)
net loss (income)	$	(2,733	)	$	1,174
net loss from noncontrolling interest associated with a discontinued operation		—			164
net (loss) income attributable to Culp Inc. common shareholders	$	(2,733	)	$	1,338