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Segment Information | 6 Months Ended
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Oct. 31, 2021
Segment Reporting [Abstract] |
Segment Information | 12. Segment Information Overall Our operations are classified into two business segments: mattress fabrics and upholstery fabrics. The mattress fabrics segment manufactures, sources, and sells fabrics and mattress covers primarily to bedding manufacturers. The upholstery fabrics segment develops, manufactures, sources, and sells fabrics primarily to residential and commercial furniture manufacturers. In addition, this segment includes Read, which provides window treatments and sourcing of upholstery fabrics and other products, as well as measuring and installation services for Read’s products, to customers in the hospitality and commercial industries. Read also supplies soft goods such as decorative top sheets, coverlets, duvet covers, bed skirts, bolsters, and pillows. Financial Information We evaluate the operating performance of our business segments based upon income (loss) from operations before certain unallocated corporate expenses, asset impairments, restructuring credit (expense) and related charges, and other items that are not expected to occur on a regular basis. Cost of sales for each segment includes costs to develop, manufacture, or source our products, including costs such as raw material and finished goods purchases, direct and indirect labor, overhead, and incoming freight charges. Unallocated corporate expenses primarily represent compensation and benefits for certain executive officers and their support staff, all costs associated with being a public company, and other miscellaneous expenses. Segment assets include assets used in the operations of each segment and primarily consist of accounts receivable, inventories, property, plant, and equipment, and right of use assets. The mattress fabrics segment also included in segment assets its investment in an unconsolidated joint venture as of November 1, 2020. Intangible assets are not included in segment assets as these assets are not used by the Chief Operating Decision Maker to evaluate the respective segment’s operating performance, allocate resources to individual segments, or determine executive compensation. Statements of operations for our operating segments are as follows:
|  | Three months ended |
|  | October 31, 2021 |  |  | November 1, 2020 |
net sales by segment: |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 40,883 |  |  | $ | 40,030 |
upholstery fabrics |  |  | 33,678 |  |  |  | 36,821 |
net sales |  | $ | 74,561 |  |  | $ | 76,851 |
gross profit: |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 6,146 |  |  | $ | 7,584 |
upholstery fabrics |  |  | 4,581 |  |  |  | 6,677 |
gross profit |  | $ | 10,727 |  |  | $ | 14,261 |
selling, general, and administrative expenses by segment: |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 3,007 |  |  | $ | 3,202 |
upholstery fabrics |  |  | 3,553 |  |  |  | 3,390 |
unallocated corporate expenses |  |  | 2,527 |  |  |  | 3,151 |
selling, general, and administrative expenses |  | $ | 9,087 |  |  | $ | 9,743 |
income (loss) from operations by segment: |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 3,139 |  |  | $ | 4,382 |
upholstery fabrics |  |  | 1,028 |  |  |  | 3,287 |
unallocated corporate expenses |  |  | (2,527 | ) |  |  | (3,151 | )
income from operations |  |  | 1,640 |  |  |  | 4,518 |
interest income |  |  | 59 |  |  |  | 59 |
other expense |  |  | (404 | ) |  |  | (680 | )
income before income taxes |  | $ | 1,295 |  |  | $ | 3,897 |
|  | Six months ended |
|  | October 31, 2021 |  |  | November 1, 2020 |
net sales by segment: |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 83,941 |  |  | $ | 76,133 |
upholstery fabrics |  |  | 73,667 |  |  |  | 65,182 |
net sales |  | $ | 157,608 |  |  | $ | 141,315 |
gross profit by segment: |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 12,941 |  |  | $ | 12,191 |
upholstery fabrics |  |  | 10,285 |  |  |  | 11,971 |
gross profit |  | $ | 23,226 |  |  | $ | 24,162 |
selling, general, and administrative expenses by segment: |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 6,191 |  |  | $ | 5,964 |
upholstery fabrics |  |  | 6,990 |  |  |  | 6,570 |
unallocated corporate expenses |  |  | 5,087 |  |  |  | 5,227 |
selling, general, and administrative expenses |  | $ | 18,268 |  |  | $ | 17,761 |
income (loss) from operations by segment: |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 6,750 |  |  | $ | 6,227 |
upholstery fabrics |  |  | 3,295 |  |  |  | 5,401 |
unallocated corporate expenses |  |  | (5,087 | ) |  |  | (5,227 | )
income from operations |  |  | 4,958 |  |  |  | 6,401 |
interest expense |  |  | — |  |  |  | (51 | )
interest income |  |  | 132 |  |  |  | 117 |
other expense |  |  | (640 | ) |  |  | (1,046 | )
income before income taxes |  | $ | 4,450 |  |  | $ | 5,421 |
Balance sheet information for our operating segments follows:
(dollars in thousands) |  | October 31, 2021 |  |  | November 1, 2020 |  |  | May 2, 2021 |
Segment assets: |  |  |  |  |  |  |  |  |  |  |  |
Mattress Fabrics: |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  | $ | 16,639 |  |  | $ | 15,914 |  |  | $ | 20,427 |
Inventory |  |  | 34,498 |  |  |  | 24,200 |  |  |  | 30,047 |
Property, plant and equipment (1) |  |  | 40,243 |  |  |  | 38,818 |  |  |  | 41,264 |
Right of use assets (2) |  |  | 3,838 |  |  |  | 1,186 |  |  |  | 4,278 |
Investment in unconsolidated joint venture |  |  | — |  |  |  | 1,859 |  |  |  | — |
Total mattress fabrics assets |  |  | 95,218 |  |  |  | 81,977 |  |  |  | 96,016 |
Upholstery Fabrics: |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable |  |  | 15,677 |  |  |  | 17,046 |  |  |  | 17,299 |
Inventory |  |  | 29,283 |  |  |  | 23,526 |  |  |  | 25,870 |
Property, plant and equipment (3) |  |  | 2,110 |  |  |  | 2,014 |  |  |  | 1,925 |
Right of use assets (4) |  |  | 5,472 |  |  |  | 3,269 |  |  |  | 5,945 |
Total upholstery fabrics assets |  |  | 52,542 |  |  |  | 45,855 |  |  |  | 51,039 |
Total segment assets |  |  | 147,760 |  |  |  | 127,832 |  |  |  | 147,055 |
Non-segment assets: |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  | 16,956 |  |  |  | 45,288 |  |  |  | 37,009 |
Short-term investments - available for sale |  |  | 9,709 |  |  |  | 5,462 |  |  |  | 5,542 |
Short-term investments - held-to-maturity |  |  | 1,564 |  |  |  | 5,005 |  |  |  | 3,161 |
Current income taxes receivable |  |  | 613 |  |  |  | — |  |  |  | — |
Other current assets |  |  | 3,811 |  |  |  | 3,509 |  |  |  | 3,852 |
Deferred income taxes |  |  | 452 |  |  |  | 645 |  |  |  | 545 |
Property, plant and equipment (5) |  |  | 912 |  |  |  | 767 |  |  |  | 814 |
Right of use assets (6) |  |  | 4,339 |  |  |  | 1,710 |  |  |  | 1,507 |
Intangible assets |  |  | 2,816 |  |  |  | 3,192 |  |  |  | 3,004 |
Long-term investments - rabbi trust |  |  | 9,036 |  |  |  | 8,060 |  |  |  | 8,415 |
Long-term investments - held-to-maturity |  |  | 8,353 |  |  |  | 759 |  |  |  | 1,141 |
Other assets |  |  | 3,004 |  |  |  | 547 |  |  |  | 2,035 |
Total assets |  | $ | 209,325 |  |  | $ | 202,776 |  |  | $ | 214,080 |
|  | Six months ended |
(dollars in thousands) |  | October 31, 2021 |  |  | November 1, 2020 |
Capital expenditures (7): |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 2,030 |  |  | $ | 1,710 |
Upholstery Fabrics |  |  | 397 |  |  |  | 181 |
Unallocated Corporate |  |  | 1,302 |  |  |  | 111 |
Total capital expenditures |  | $ | 3,729 |  |  | $ | 2,002 |
Depreciation expense: |  |  |  |  |  |  |  |
Mattress Fabrics |  | $ | 3,071 |  |  | $ | 3,132 |
Upholstery Fabrics |  |  | 400 |  |  |  | 406 |
Total depreciation expense |  | $ | 3,471 |  |  | $ | 3,538 |
(1) | The $40.2 million as of October 31, 2021, represents property, plant, and equipment of $26.8 million, $12.6 million, and $836,000 located in the U.S., Canada, and Haiti, respectively. The $38.8 million as of November 1, 2020, represents property, plant, and equipment of $26.5 million and $12.3 million located in the U.S. and Canada, respectively. The $41.3 million as of May 2, 2021, represents property, plant, and equipment of $28.4 million, $12.0 million, and $855,000 located in the U.S., Canada, and Haiti, respectively.
(2) | The $3.8 million as of October 31, 2021, represents right of use assets of $2.2 million, $1.3 million, and $309,000 located in Haiti, the U.S., and Canada, respectively. The $1.2 million as of November 1, 2020, represents right of use assets of $696,000 and $490,000 located in the U.S. and Canada, respectively. The $4.3 million as of May 2, 2021, represents right of use assets of $2.4 million, $1.4 million, and $400,000 located in Haiti, the U.S., and Canada, respectively.
(3) | The $2.1 million as of October 31, 2021, represents property, plant, and equipment of $1.1 million, $798,000, and $242,000 located in the U.S., China, and Haiti, respectively. The $2.0 million as of November 1, 2020, represents property, plant, and equipment of $1.1 million and $904,000 located in the U.S. and China, respectively. The $1.9 million as of May 2, 2021, represents property, plant, and equipment of $1.1 million and $850,000 located in the U.S. and China, respectively.
(4) | The $5.5 million as of October 31, 202 1, represents right of use assets of $4.3 million and $1.2 million located in China and the U.S., respectively. The $3.3 million a s of November 1, 20 20, represents right of use assets of $2.7 million and $561,000 located in China and the U.S., respectively. The $5.9 million as of May 2, 202 1, represents right of use assets of $5.0 million and $952,000 located in China and the U.S., respectively.
(5) | The $912,000, $767,000, and $814,000 as of October 31, 2021, November 1, 2020, and May 2, 2021, respectively, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by our mattress fabrics and upholstery fabrics segments. Property, plant, and equipment associated with our corporate departments reside in the U.S.
(6) | The $4.3 million, $1.7 million, and $1.5 million as of October 31, 2021, November1, 2020, and May 2, 2021, respectively, represent right of use assets located in the U.S.
(7) | Capital expenditure amounts are stated on the accrual basis. See Consolidated Statements of Cash Flows for capital expenditure amounts on a cash basis.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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