XML 30 R17.htm IDEA: XBRL DOCUMENT
v3.20.4

Investment in Unconsolidated Joint Venture | 9 Months Ended
--- | ---
Jan. 31, 2021
Equity Method Investments And Joint Ventures [Abstract] |
Investment in Unconsolidated Joint Venture | 9. Investment in Unconsolidated Joint Venture Effective January 1, 2017, Culp International Holdings, Ltd. (“Culp International”), a wholly-owned subsidiary of the company, entered into a joint venture agreement pursuant to which Culp International owned fifty percent of Class International Holdings, Ltd. (“CIH”). CIH 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. CIH 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, CIH entered into an agreement to construct an additional plant facility totaling 40,000 square feet, which was completed during September 2020. This new plant facility is near our existing operations and provides additional capacity that enhances our ability to produce sewn covers. This agreement required payments totaling $1.2 million, of which $600,000 was paid in February 2020, $180,000 was paid in May 2020, and $420,000 was paid in September 2020. CIH reported net income totaling $62,000 for the nine-month period ending January 31, 2021, and a net loss of $120,000 for the nine-month period ending February 2, 2020. Our equity interest in CIH’s net income was $31,000 for the nine-month period ending January 31, 2021. Our equity interest in CIH’s net loss was $59,000 for the nine-month period ending February 2, 2020. The following table summarizes information on assets, liabilities, and members’ equity of our equity method investment in CIH:
(dollars in thousands) |  | January 31, 2021 |  |  | February 2, 2020 |  |  | May 3, 2020 |
Total assets |  | $ | 3,652 |  |  | $ | 3,502 |  |  | $ | 3,338 |
Total liabilities |  | $ | 205 |  |  | $ | 167 |  |  | $ | 133 |
Total members’ equity |  | $ | 3,447 |  |  | $ | 3,335 |  |  | $ | 3,205 |
As of January 31, 2021, February 2, 2020, and May 3, 2020, our investment in CIH totaled $1.7 million, $1.7 million, and $1.6 million, respectively, which represents the company’s fifty percent ownership interest in CIH. Ownership Interest Change Effective February 1, 2021, Culp International entered into a Share Purchase Agreement in which Culp International acquired the remaining fifty percent ownership interest in CIH. The purchase price for the remaining fifty percent interest in CIH was $948,000, subject to certain working capital adjustments as defined in the Share Purchase Agreement. Pursuant to this transaction, Culp International is now the sole owner with full control over this Haiti operation. We believe having sole ownership of this operation increases our flexibility and enhances our capacity to meet the growing customer demand for cut and sewn mattress covers. Additionally, CIH entered into a supply agreement with its former joint venture partner to provide cut and sewn mattress covers pursuant to terms under this agreement.

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

X
- 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
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration