Home Accessories Segment – Discontinued Operation (Tables)

6 Months Ended

Nov. 01, 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 November 3, 2019.

	November 3
(dollars in thousands)	2019
ASSETS
current assets:
cash and cash equivalents	$	228
accounts receivable		632
inventories		3,785
other current assets		115
total current assets - discontinued operation		4,760
property, plant, and equipment		1,752
goodwill		13,653
intangible asset		6,549
right of use asset		996
total noncurrent assets - discontinued operation		22,950
total assets	$	27,710
LIABILITIES AND NET ASSETS
current liabilities:
accounts payable	$	1,063
operating lease liability - current		192
accrued expenses		652
total current liabilities - discontinued operation		1,907
loan payable - Culp Inc.		1,800
subordinated loan payable - noncontrolling interest		925
operating lease liability - long-term		825
total noncurrent liabilities - discontinued operation		3,550
total liabilities		5,457
total net assets of discontinued operation	$	22,253

Summary of Net Loss from Discontinued Operation on Consolidated 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-month and six-month periods ending November 3, 2019:

	Three Months Ended
	November 3,
(dollars in thousands)	2019
net sales	$	3,276
cost of sales		(2,699	)
gross profit		577
selling, general and administrative expenses		(1,003	)
interest expense (1)		(27	)
other income		12
loss before income taxes from discontinued operation		(441	)
income tax benefit		381
net loss from discontinued operation	$	(60	)

	Six Months Ended
	November 3,
(dollars in thousands)	2019
net sales	$	7,578
cost of sales		(6,048	)
gross profit		1,530
selling, general and administrative expenses		(2,565	)
interest expense (1)		(47	)
other income		20
loss before income taxes from discontinued operation		(1,062	)
income tax benefit		392
net loss from discontinued operation	$	(670	)

(1)	Interest expense is directly attributable to our discontinued operation as it pertains to the 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 Income (Loss) from Continuing Operations, Net Loss from Discontinued Operation, and Net Income (Loss) Attributable to Common Shareholders and Noncontrolling Interest

The following is a summary of net income (loss) from continuing operations, net loss from discontinued operation, and net income (loss) attributable to Culp, Inc. common shareholders and the noncontrolling interest associated with our discontinued operation for the three-month and six-month periods ending November 1, 2020, and November 3, 2019:

	Three Months Ended
	November 1,		November 3,
(dollars in thousands)	2020		2019
net income from continuing operations	$	2,384	$	2,252
net loss from continuing operations attributable to noncontrolling interest		—		—
net income from continuing operations attributable to Culp, Inc. common shareholders	$	2,384	$	2,252
net loss from discontinued operation	$	—	$	(60	)
net loss from discontinued operation attributable to noncontrolling interest		—		108
net income from discontinued operation attributable to Culp, Inc. common shareholders	$	—	$	48
net income	$	2,384	$	2,192
net loss from noncontrolling interest associated with a discontinued operation		—		108
net income attributable to Culp, Inc. common shareholders	$	2,384	$	2,300

	Six Months Ended
	November 1,			November 3,
(dollars in thousands)	2020			2019
net (loss) income from continuing operations	$	(349	)	$	4,036
net loss from continuing operations attributable to noncontrolling interest		—			—
net (loss) income from continuing operations attributable to Culp, Inc. common shareholders	$	(349	)	$	4,036
net loss from discontinued operation	$	—		$	(670	)
net loss from discontinued operation attributable to noncontrolling interest		—			272
net loss from discontinued operation attributable to Culp, Inc. common shareholders	$	—		$	(398	)
net (loss) income	$	(349	)	$	3,366
net loss from noncontrolling interest associated with a discontinued operation		—			272
net (loss) income attributable to Culp, Inc. common shareholders	$	(349	)	$	3,638