XML 33 R22.htm IDEA: XBRL DOCUMENT
v3.21.2

Leases | 6 Months Ended
--- | ---
Oct. 31, 2021
Assets And Liabilities Lessee [Abstract] |
Leases | 15. Leases Overview We lease manufacturing facilities, showroom and office space, distribution centers, and equipment under operating lease arrangements. Our operating leases have remaining noncancellable lease terms of one to ten years, with renewal options for additional periods ranging up to twelve years. Balance Sheet The right of use assets and lease liabilities associated with our operating leases as of October 31, 2021, November 1, 2020, and May 2, 2021, are as follows:
(dollars in thousands) |  | October 31, 2021 |  |  | November 1, 2020 |  |  | May 2, 2021 |
Right of use assets |  | $ | 13,649 |  |  | $ | 6,165 |  |  | $ | 11,730 |
Operating lease liability - current |  |  | 2,878 |  |  |  | 2,316 |  |  |  | 2,736 |
Operating lease liability – noncurrent |  |  | 7,914 |  |  |  | 4,008 |  |  |  | 6,821 |
Supplemental Cash Flow Information
|  | Six Months Ended |  |  | Six Months Ended |
(dollars in thousands) |  | October 31, 2021 |  |  | November 1, 2020 |
Operating lease liability payments |  | $ | 1,436 |  |  | $ | 1,232 |
Right of use assets exchanged for lease liabilities |  |  | 2,614 |  |  |  | 3,618 |
Operating lease expense for the three-month periods ended October 31, 2021, and November 1, 2020, was $905,000 and $696,000, respectively. Operating lease expense for the six-month periods ended October 31, 2021, and November 1, 2020, was $1.8 million and $1.4 million, respectively. Short-term lease and variable lease expenses were immaterial for the three-month and six-month periods ended October 31, 2021, and November 1, 2020. Other Information Maturity of our operating lease liabilities for the remainder of fiscal 2022, the subsequent next four fiscal years, and thereafter follows:
(dollars in thousands) |  |  |  |
2022 |  | $ | 1,449 |
2023 |  |  | 2,991 |
2024 |  |  | 2,689 |
2025 |  |  | 1,753 |
2026 |  |  | 493 |
Thereafter |  |  | 1,868 |
|  | $ | 11,243 |
Less: interest |  |  | (451 | )
Present value of lease liabilities |  | $ | 10,792 |
As of October 31, 2021, the weighted average remaining lease term and discount rate for our operating leases follows:
|  | October 31, 2021 |
Weighted average lease term |  | 4.9 years |
Weighted average discount rate |  |  | 1.92 | %
As of November 1, 2020, the weighted average remaining lease term and discount rate for our operating leases follows:
|  | November 1, 2020 |
Weighted average lease term |  | 3.3 years |
Weighted average discount rate |  |  | 2.51 | %
Lease Contracts Culp Upholstery Fabrics – Haiti, Ltd. Effective April 9, 2021, we entered into an agreement to lease a 90,000 square foot facility located in a modern industrial park on the northeastern border of Haiti. This facility will be dedicated to the production of cut and sewn upholstery kits and is expected to be operational during the third quarter of fiscal 2022. The lease agreement has an initial non-cancelable lease term of eight years, which will commence after the construction of the facility has been completed, and at such time we will have control of the facility based on the terms of the lease. The rent payments for the initial term of the lease total $2.8 million and will be paid in advance of commencement of the lease. Of the $2.8 million rent payments, $1.4 million was paid during April 2021, $558,000 was paid during July 2021, $418,500 was paid during August 2021, and the remaining $418,500 is expected to be paid during the third quarter of fiscal 2022 within 30 days after commencement of the lease as defined in the agreement. As of October 31, 2021, $2.4 million was paid in advance of the commencement of the lease and was classified as other assets in the accompanying Consolidated Balance Sheets. The initial non-cancelable term of the lease can be subsequently renewed and extended for successive eight-year periods by written communication as defined in the lease agreement. High Point, NC – Design and Innovation Campus Effective May 7, 2021, we entered into an agreement to lease showroom and office space encompassing 21,000 square feet located in downtown High Point, NC. This facility will be used to advance synergies between our upholstery fabrics and mattress fabrics business segments by bringing our creative talent together to collaborate, develop new products through shared innovation and technology, and meet with new and existing customers. The lease agreement commenced during the second quarter of fiscal 2022, has an initial non-cancelable lease term of ten years, and requires lease payments totaling $2.2 million to be paid in monthly installments beginning November 1, 2021. In addition to the required lease payments, we invested $995,000 in certain leasehold improvements that were determined to be lessor owned assets in accordance with ASC Topic 842, Leases and therefore, are classified as a right of use asset in the accompanying Consolidated Balance Sheets. The initial noncancellable term of the lease can be subsequently renewed and extended up to four additional periods of three years each by written communication as defined in the lease agreement.

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

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration