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Revenue from Contracts with Customers
 6 Months Ended
Oct. 31, 2021
Revenue From Contract With Customer [Abstract]  
Revenue from Contracts with Customers

5. Revenue from Contracts with Customers

Nature of Performance Obligations

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, the upholstery fabrics segment includes Read Window Products LLC (“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.  

Our primary performance obligations include the sale of mattress fabrics and upholstery fabrics, as well as the performance of customized fabrication and installation services of our own products associated with window treatments.

Contract Assets & Liabilities

Certain contracts, primarily those for customized fabrication and installation services associated with Read, require upfront customer deposits that result in a contract liability which is recorded on the Consolidated Balance Sheets as deferred revenue. If upfront deposits or prepayments are not required, customers may be granted credit terms which generally range from 15 - 60 days.  For a limited time, extended terms were granted to certain customers in response to the challenging business conditions resulting from the COVID-19 global pandemic. Our customary terms, as well as any limited extended terms, are common within the industries in which we operate and are not considered financing arrangements. There were no contract assets recognized as of October 31, 2021, November 1, 2020, and May 2, 2021.

 

A summary of the activity associated with deferred revenue follows:

 

 

 

Six months ended

 

(dollars in thousands)

 

October 31, 2021

 

 

November 1, 2020

 

Beginning balance

 

$

540

 

 

$

502

 

Revenue recognized on contract liabilities

 

 

(1,445

)

 

 

(1,197

)

Payments received for services not yet rendered

 

 

1,584

 

 

 

1,070

 

Ending balance

 

$

679

 

 

$

375

 

 

Disaggregation of Revenue

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the three-month period ending October 31, 2021:

 

 

 

Mattress

 

 

Upholstery

 

 

 

 

 

(dollars in thousands)

 

Fabrics

 

 

Fabrics

 

 

Total

 

Products transferred at a point in time

 

$

40,883

 

 

$

31,415

 

 

$

72,298

 

Services transferred over time

 

 

—

 

 

 

2,263

 

 

 

2,263

 

Total Net Sales

 

$

40,883

 

 

$

33,678

 

 

$

74,561

 

 

 

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the six-month period ending October 31, 2021:

 

 

 

 

Mattress

 

 

Upholstery

 

 

 

 

 

(dollars in thousands)

 

Fabrics

 

 

Fabrics

 

 

Total

 

Products transferred at a point in time

 

$

83,941

 

 

$

69,705

 

 

$

153,646

 

Services transferred over time

 

 

—

 

 

 

3,962

 

 

 

3,962

 

Total Net Sales

 

$

83,941

 

 

$

73,667

 

 

$

157,608

 

 

 

 

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the three-month period ending November 1, 2020:

 

 

 

 

Mattress

 

 

Upholstery

 

 

 

 

 

(dollars in thousands)

 

Fabrics

 

 

Fabrics

 

 

Total

 

Products transferred at a point in time

 

$

40,030

 

 

$

34,666

 

 

$

74,696

 

Services transferred over time

 

 

—

 

 

 

2,155

 

 

 

2,155

 

Total Net Sales

 

$

40,030

 

 

$

36,821

 

 

$

76,851

 

 

 

 

 

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the six-month period ending November 1, 2020:

 

 

 

Mattress

 

 

Upholstery

 

 

 

 

 

(dollars in thousands)

 

Fabrics

 

 

Fabrics

 

 

Total

 

Products transferred at a point in time

 

$

76,133

 

 

$

60,727

 

 

$

136,860

 

Services transferred over time

 

 

—

 

 

 

4,455

 

 

 

4,455

 

Total Net Sales

 

$

76,133

 

 

$

65,182

 

 

$

141,315