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Intangible Assets | 6 Months Ended
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Nov. 01, 2020
Goodwill And Intangible Assets Disclosure [Abstract] |
Intangible Assets | 7. Intangible Assets A summary of intangible assets follows:
(dollars in thousands) |  | November 1, 2020 |  |  | November 3, 2019 |  |  |  | May 3, 2020 |
Tradenames |  | $ | 540 |  |  | $ | 7,232 |  |  |  | $ | 540 |
Customer relationships, net |  |  | 2,087 |  |  |  | 2,388 |  |  |  |  | 2,238 |
Non-compete agreement, net |  |  | 565 |  |  |  | 640 |  |  |  |  | 602 |
|  | $ | 3,192 |  |  | $ | 10,260 |  | (1) |  | $ | 3,380 |
(1) | As of November 3, 2019, intangible assets totaled $10.3 million, of which $3.7 million and $6.6 million were classified as (i) intangible assets and (ii) within noncurrent assets – discontinued operation, respectively, in the accompanying Consolidated Balance Sheets.
Tradenames Our tradename totaling $540,000 as of November 1, 2020, pertained to Read, a separate reporting unit within the upholstery fabrics segment. This tradename was determined to have an indefinite useful life at the time of its acquisition, and therefore, is not being amortized. However, we are required to assess this tradename annually or between annual tests if we believe indicators of impairment exist. Based on our assessment as of November 1, 2020, no indicators of impairment existed. However, during our annual assessment as of May 3, 2020, we performed a qualitative assessment in which we concluded that it was more-likely-than-not that the fair value of Read’s tradename was less than its carrying amount. This conclusion was based on impairment indicators that existed, such as our unfavorable financial performance during the fourth quarter of fiscal 2020 and the significant decline in the price per share of our common stock and market capitalization stemming from the COVID-19 global pandemic. Since we determined it was more-likely-than-not that the fair market value of Read’s tradename was less than its carrying amount, we performed a quantitative impairment test. Our quantitative impairment test involved determining the fair value of Read’s tradename and comparing the respective fair value of Read’s tradename with its carrying amount. Consequently, based on our quantitative impairment test, we recorded an asset impairment charge totaling $143,000 during the fourth quarter of fiscal 2020. As a result of our quantitative impairment test, we determined the fair value of our tradename was $540,000 using the relief from royalty method. This method used significant unobservable inputs and therefore, the fair value of our tradename was classified as level 3 within the fair value hierarchy. Refer to Note 11 of the consolidated financial statements for further information about our determination to classify this tradename as level 3 within the fair value hierarchy in accordance with Topic 820. Customer Relationships A summary of the change in the carrying amount of our customer relationships follows:
|  | Six months ended |
(dollars in thousands) |  | November 1, 2020 |  |  | November 3, 2019 |
Beginning balance |  | $ | 2,238 |  |  | $ | 2,538 |
Amortization expense |  |  | (151 | ) |  |  | (150 | )
Ending balance |  | $ | 2,087 |  |  | $ | 2,388 |
Our customer relationships are amortized on a straight-line basis over useful lives ranging from nine to seventeen years. The gross carrying amount of our customer relationships was $3.1 million as of November 1, 2020, November 3, 2019, and May 3, 2020, respectively. Accumulated amortization for these customer relationships was $1.0 million, $727,000, and $877,000 as of November 1, 2020, November 3, 2019, and May 3, 2020, respectively. The remaining amortization expense for the next five fiscal years and thereafter follows: FY 2021 - $151,000; FY 2022 - $301,000; FY 2023 - $301,000; FY 2024 - $301,000; FY 2025 - $301,000; and thereafter - $732,000. The weighted average amortization period for our customer relationships is 7.1 years as of November 1, 2020. Non-Compete Agreement A summary of the change in the carrying amount of our non-compete agreement follows:
|  | Six months ended |
(dollars in thousands) |  | November 1, 2020 |  |  | November 3, 2019 |
Beginning balance |  | $ | 602 |  |  | $ | 678 |
Amortization expense |  |  | (37 | ) |  |  | (38 | )
Ending balance |  | $ | 565 |  |  | $ | 640 |
Our non-compete agreement is amortized on a straight-line basis over the fifteen-year life of the agreement. The gross carrying amount of our non-compete agreement was $2.0 million as of November 1, 2020, November 3, 2019, and May 3, 2020, respectively. Accumulated amortization for our non-compete agreement was $1.5 million as of November 1, 2020, $1.4 million as of November 3, 2019, and $1.4 million as of May 3, 2020. The remaining amortization expense for the next five years and thereafter follows: FY 2021 - $37,000; FY 2022 - $76,000; FY 2023 - $76,000; FY 2024 - $76,000; FY 2025 - $76,000, and thereafter - $224,000. The weighted average amortization period for the non-compete agreement is 7.5 years as of November 1, 2020.

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- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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