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Home Accessories Segment - Discontinued Operation (Tables) | 9 Months Ended
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Jan. 31, 2021
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 February 2, 2020.
|  | February 2, |
(dollars in thousands) |  | 2020 |
ASSETS |  |  |  |
current assets: |  |  |  |
cash and cash equivalents |  | $ | 232 |
accounts receivable |  |  | 766 |
inventories |  |  | 3,566 |
other current assets |  |  | 174 |
total current assets - discontinued operation |  |  | 4,738 |
property, plant, and equipment |  |  | 1,728 |
goodwill |  |  | 2,442 |
intangible asset |  |  | 4,121 |
right of use asset |  |  | 950 |
total noncurrent assets - discontinued operation |  |  | 9,241 |
total assets |  | $ | 13,979 |
LIABILITIES AND NET ASSETS |  |  |  |
current liabilities: |  |  |  |
accounts payable |  | $ | 1,415 |
operating lease liability - current |  |  | 194 |
accrued expenses |  |  | 485 |
total current liabilities - discontinued operation |  |  | 2,094 |
loan payable - Culp Inc. |  |  | 1,800 |
subordinated loan payable - noncontrolling interest |  |  | 925 |
operating lease liability - long-term |  |  | 776 |
total noncurrent liabilities - discontinued operation |  |  | 3,501 |
total liabilities |  |  | 5,595 |
total net assets of discontinued operation |  | $ | 8,384 |
Summary of Net Loss from Discontinued Operation on Consolidated Consolidated Statements of Net Income (Loss) | 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 (Loss) for the three-month and nine-month periods ending February 2, 2020:
|  | Three Months Ended |
|  | February 2, |
(dollars in thousands) |  | 2020 |
net sales |  | $ | 3,906 |
cost of sales |  |  | (3,042 | )
gross profit |  |  | 864 |
selling, general and administrative expenses |  |  | (1,121 | )
asset impairments (1) |  |  | (13,639 | )
reversal of contingent consideration (2) |  |  | 6,081 |
interest expense (3) |  |  | (24 | )
other income |  |  | 15 |
loss before income taxes from discontinued operation |  |  | (7,824 | )
income tax benefit |  |  | 2,592 |
net loss from discontinued operation |  | $ | (5,232 | )
|  | Nine Months Ended |
|  | February 2, |
(dollars in thousands) |  | 2020 |
net sales |  | $ | 11,484 |
cost of sales |  |  | (9,090 | )
gross profit |  |  | 2,394 |
selling, general and administrative expenses |  |  | (3,686 | )
asset impairments (1) |  |  | (13,639 | )
reversal of contingent consideration (2) |  |  | 6,081 |
interest expense (3) |  |  | (71 | )
other income |  |  | 35 |
loss before income taxes from discontinued operation |  |  | (8,886 | )
income tax benefit |  |  | 2,984 |
net loss from discontinued operation |  | $ | (5,902 | )
(1) | During the three-month and nine-month periods ended February 2, 2020, we recorded asset impairment charges totaling $13.6 million, of which $11.2 million and $2.4 million pertained to goodwill and tradename, respectively. See Notes 7, 8, and 12 of the consolidated financial statements for further details of our assessments that resulted in the impairment of the goodwill and tradename associated with this discontinued operation.
(2) | See separate section below titled “Contingent Consideration” for further details.
(3) | Interest expense is directly attributable to our discontinued operation 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 Income 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 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 nine-month periods ending January 31, 2021, and February 2, 2020:
|  | Three Months Ended |
|  | January 31, |  |  | February 2, |
(dollars in thousands) |  | 2021 |  |  | 2020 |
net income from continuing operations |  | $ | 2,082 |  |  | $ | 1,025 |
net loss from continuing operations attributable to noncontrolling interest |  |  | — |  |  |  | — |
net income from continuing operations attributable to Culp, Inc. common shareholders |  | $ | 2,082 |  |  | $ | 1,025 |
net loss from discontinued operation |  | $ | — |  |  | $ | (5,232 | )
net loss from discontinued operation attributable to noncontrolling interest |  |  | — |  |  |  | 4,149 |
net loss from discontinued operation attributable to Culp, Inc. common shareholders |  | $ | — |  |  | $ | (1,083 | )
net income (loss) |  | $ | 2,082 |  |  | $ | (4,207 | )
net loss from noncontrolling interest associated with a discontinued operation |  |  | — |  |  |  | 4,149 |
net income (loss) attributable to Culp, Inc. common shareholders |  | $ | 2,082 |  |  | $ | (58 | )
|  | Nine Months Ended |
|  | January 31, |  |  | February 2, |
(dollars in thousands) |  | 2021 |  |  | 2020 |
net income from continuing operations |  | $ | 1,733 |  |  | $ | 5,061 |
net loss from continuing operations attributable to noncontrolling interest |  |  | — |  |  |  | — |
net income from continuing operations attributable to Culp, Inc. common shareholders |  | $ | 1,733 |  |  | $ | 5,061 |
net loss from discontinued operation |  | $ | — |  |  | $ | (5,902 | )
net loss from discontinued operation attributable to noncontrolling interest |  |  | — |  |  |  | 4,421 |
net loss from discontinued operation attributable to Culp, Inc. common shareholders |  | $ | — |  |  | $ | (1,481 | )
net income (loss) |  | $ | 1,733 |  |  | $ | (841 | )
net loss from noncontrolling interest associated with a discontinued operation |  |  | — |  |  |  | 4,421 |
net income attributable to Culp, Inc. common shareholders |  | $ | 1,733 |  |  | $ | 3,580 |

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