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Segment Information | 12 Months Ended
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Apr. 30, 2023
Segment Reporting [Abstract] |
Segment Information | 17. SEGMENT INFORMATION Overall Our operations are classified into two business segments: mattress fabrics and upholstery fabrics. Mattress Fabrics The mattress fabrics segment manufactures, sources, and sells fabrics and mattress covers primarily to bedding manufacturers. Upholstery Fabrics 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. Net Sales Geographic Concentration Net sales denominated in U.S. dollars accounted for 91%, 90%, and 91% of total consolidated net sales in fiscal 2023, 2022, and 2021, respectively. International sales accounted for 29%, 31%, and 27% of net sales during fiscal 2023, 2022, and 2021, respectively, and are summarized by geographic area as follows:
(dollars in thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
north america (excluding USA) (1) |  | $ | 29,756 |  |  | $ | 39,256 |  |  | $ | 32,925 |
far east and asia (2) |  |  | 31,339 |  |  |  | 43,015 |  |  |  | 43,764 |
all other areas |  |  | 8,032 |  |  |  | 8,114 |  |  |  | 5,558 |
|  | $ | 69,127 |  |  | $ | 90,385 |  |  | $ | 82,247 |
(1) Of this amount, $24.9 million, $33.5 million, and $27.2 million are attributable to shipments to Mexico in fiscal 2023, 2022, and 2021, respectively. (2) Of this amount $20.0 million, $26.9 million, and $28.1 million are attributable to shipments to China in fiscal 2023, 2022, and 2021, respectively. Sales attributed to individual countries are based upon the location that the company ships its products to for delivery to customers. Customer Concentration One customer within the upholstery fabrics segment represented 15%, 13%, and 13% of consolidated net sales during fiscal 2023, 2022, and 2021, respectively. No customers within the upholstery fabrics segment accounted for greater than 10% of the consolidated net accounts receivable balance as of April 30, 2023, or May 1, 2022. No customers within the mattress fabrics segment represented greater than 10% of consolidated net sales during fiscal 2023, 2022, or fiscal 2021. No customers within the mattress fabrics segment accounted for greater than 10% of the consolidated net accounts receivable balance as of April 30, 2023, or May 1, 2022. Employee Workforce Concentration The hourly employees associated with our manufacturing facility located in Canada (approximately 11% of our workforce) are represented by a local, unaffiliated union. The collective bargaining agreement for these employees expires on February 1, 2026. We are not aware of any efforts to organize any more of our employees, and we believe our relations with our employees are good. Financial Information We evaluate the operating performance of our business segments based upon (loss) income from operations before certain unallocated corporate expenses and other items that are not expected to occur on a regular basis, such as restructuring expense and restructuring related charges. Cost of sales in each of our business segments include 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 senior executives and their support staff, all costs associated with being a public company, amortization of intangible assets, and other miscellaneous expenses. Segment assets include assets used in the operations of each segment and consist of accounts receivable, inventories, property, plant, and equipment, and right of use assets. Statements of operations for our business segments are as follows:
(dollars in thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
net sales by segment: |  |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 110,995 |  |  | $ | 152,159 |  |  | $ | 157,671 |
upholstery fabrics |  |  | 123,939 |  |  |  | 142,680 |  |  |  | 142,049 |
net sales |  | $ | 234,934 |  |  | $ | 294,839 |  |  | $ | 299,720 |
gross (loss) profit: |  |  |  |  |  |  |  |  |
mattress fabrics |  | $ | (6,739 | ) |  | $ | 16,458 |  |  | $ | 23,864 |
upholstery fabrics |  |  | 17,733 |  |  |  | 19,635 |  |  |  | 25,968 |
total segment gross profit |  |  | 10,994 |  |  |  | 36,093 |  |  |  | 49,832 |
restructuring related charge (2) |  |  | (98 | ) |  |  | — |  |  |  | — |
gross profit |  | $ | 10,896 |  |  | $ | 36,093 |  |  | $ | 49,832 |
selling, general, and administrative expenses by segment: |  |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 11,942 |  |  | $ | 12,246 |  |  | $ | 12,066 |
upholstery fabrics |  |  | 15,739 |  |  |  | 14,009 |  |  |  | 14,092 |
unallocated corporate |  |  | 10,297 |  |  |  | 9,160 |  |  |  | 11,598 |
selling, general, and administrative expenses |  | $ | 37,978 |  |  | $ | 35,415 |  |  | $ | 37,756 |
(loss) income from operations by segment: |  |  |  |  |  |  |  |  |
mattress fabrics |  | $ | (18,681 | ) |  | $ | 4,212 |  |  | $ | 11,798 |
upholstery fabrics |  |  | 1,994 |  |  |  | 5,626 |  |  |  | 11,876 |
unallocated corporate expenses |  |  | (10,297 | ) |  |  | (9,160 | ) |  |  | (11,598 | )
total segment (loss) income from operations |  |  | (26,984 | ) |  |  | 678 |  |  |  | 12,076 |
restructuring expense (1) |  |  | (1,396 | ) |  |  | — |  |  |  | — |
restructuring related charge (2) |  |  | (98 | ) |  |  | — |  |  |  | — |
(loss) income from operations |  | $ | (28,478 | ) |  | $ | 678 |  |  | $ | 12,076 |
interest expense |  |  | — |  |  |  | (17 | ) |  |  | (51 | )
interest income |  |  | 531 |  |  |  | 373 |  |  |  | 244 |
other expense |  |  | (443 | ) |  |  | (1,359 | ) |  |  | (2,208 | )
gain on bargain purchase (3) |  |  | — |  |  |  | — |  |  |  | 819 |
(loss) income before income taxes |  | $ | (28,390 | ) |  | $ | (325 | ) |  | $ | 10,880 |
(1) Restructuring expense totaling $1.4 million for fiscal 2023 relates to both our restructuring activities for our cut and sew upholstery fabrics operations (i) located in Shanghai, China, which occurred during the second quarter of fiscal 2023, and (ii) located in Ouanaminthe, Haiti, which occurred during the third and fourth quarters of fiscal 2023. Restructuring expense represents employee termination benefits of $507,000, lease termination costs of $481,000, impairment losses totaling $357,000 that relate to leasehold improvements and equipment, and $51,000 for other associated costs. (2) Cost of sales for fiscal 2023 includes a restructuring related charge totaling $98,000, which pertained to a loss on disposal and markdowns of inventory related to the exit of our cut and sew upholstery fabrics operation located in Shanghai, China. (3) Effective February 1, 2021, we acquired the remaining fifty percent ownership interest in our former unconsolidated joint venture located in Haiti. Pursuant to this transaction, we are now the sole owner with full control over this operation. The gain on bargain purchase represents the net assets acquired from this transaction that exceeded the fair value of our previously held 50% ownership interest of $1.7 million and the $954,000 total purchase price for the remaining 50% ownership interest. Balance sheet information for our business segments follow:
(dollars in thousands) |  | April 30, 2023 |  |  |  | May 1, 2022 |  |
segment assets |  |  |  |  |  |  |  |
mattress fabrics |  |  |  |  |  |  |  |
accounts receivable |  | $ | 12,396 |  |  |  | $ | 9,865 |  |
inventory |  |  | 25,674 |  |  |  |  | 39,028 |  |
property, plant, and equipment |  |  | 33,749 |  | (1) |  |  | 38,731 |  | (2)
right of use assets |  |  | 2,308 |  | (3) |  |  | 3,469 |  | (4)
total mattress fabrics assets |  |  | 74,127 |  |  |  |  | 91,093 |  |
upholstery fabrics |  |  |  |  |  |  |  |
accounts receivable |  |  | 12,382 |  |  |  |  | 12,361 |  |
inventory |  |  | 19,406 |  |  |  |  | 27,529 |  |
property, plant, and equipment |  |  | 1,671 |  | (5) |  |  | 2,030 |  | (6)
right of use assets |  |  | 2,618 |  | (7) |  |  | 8,124 |  | (8)
total upholstery fabrics assets |  |  | 36,077 |  |  |  |  | 50,044 |  |
total segment assets |  |  | 110,204 |  |  |  |  | 141,137 |  |
non-segment assets |  |  |  |  |  |  |  |
cash and cash equivalents |  |  | 20,964 |  |  |  |  | 14,550 |  |
short-term investments – rabbi trust |  |  | 1,404 |  |  |  |  | — |  |
short-term note receivable |  |  | 219 |  |  |  |  | — |  |
current income taxes receivable |  |  | — |  |  |  |  | 857 |  |
other current assets |  |  | 3,071 |  |  |  |  | 2,986 |  |
long-term note receivable |  |  | 1,726 |  |  |  |  | — |  |
deferred income taxes |  |  | 480 |  |  |  |  | 528 |  |
property, plant, and equipment (9) |  |  | 691 |  |  |  |  | 941 |  |
right of use assets (10) |  |  | 3,265 |  |  |  |  | 3,984 |  |
intangible assets |  |  | 2,252 |  |  |  |  | 2,628 |  |
long-term investments - rabbi trust |  |  | 7,067 |  |  |  |  | 9,357 |  |
other assets |  |  | 840 |  |  |  |  | 595 |  |
total assets |  | $ | 152,183 |  |  |  | $ | 177,563 |  |
Capital expenditures and depreciation expense information for our business segments follow:
(dollars in thousands) |  | 2023 |  |  | 2022 |  |  | 2021 |
capital expenditures (11): |  |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 1,125 |  |  | $ | 3,383 |  |  | $ | 6,226 |
upholstery fabrics |  |  | 467 |  |  |  | 1,032 |  |  |  | 347 |
unallocated corporate |  |  | 97 |  |  |  | 1,406 |  |  |  | 332 |
total capital expenditures |  | $ | 1,689 |  |  | $ | 5,821 |  |  | $ | 6,905 |
depreciation expense |  |  |  |  |  |  |  |  |
mattress fabrics |  | $ | 6,050 |  |  | $ | 6,200 |  |  | $ | 6,014 |
upholstery fabrics |  |  | 795 |  |  |  | 794 |  |  |  | 832 |
total depreciation expense |  | $ | 6,845 |  |  | $ | 6,994 |  |  | $ | 6,846 |
(1) The $33.7 million as of April 30, 2023, represents property, plant, and equipment of $22.7 million, $10.4 million, and $608,000 located in the U.S., Canada, and Haiti, respectively. (2) The $38.7 million as of May 1, 2022, represents property, plant, and equipment of $25.6 million, $12.4 million, and $757,000 located in the U.S., Canada, and Haiti, respectively. (3) The $2.3 million as of April 30, 2023, represents right of use assets of $1.5 million and $776,000 located in Haiti and Canada, respectively. (4) The $3.5 million as of May 1, 2022, represents right of use assets of $2.0 million, $1.2 million, and $291,000 located in Haiti, the U.S., and Canada, respectively. (5) The $1.7 million as of April 30, 2023, represents property, plant, and equipment of $974,000, $592,000, and $105,000 located in the U.S., Haiti, and China, respectively (6) The $2.0 million as of May 1, 2022, represents property, plant, and equipment of $1.0 million, $756,000, and $255,000 located in the U.S., Haiti, and China, respectively. (7) The $2.6 million as of April 30, 2023, represents right of use assets of $1.5 million and $1.1 million located in China and the U.S., respectively. (8) The $8.1 million as of May 1, 2022, represents right of use assets of $3.7 million, $2.6 million, and $1.8 million located in China, Haiti, and the U.S., respectively. (9) The $691,000 as of April 30, 2023, and $941,000 as of May 1, 2022, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress fabrics and upholstery fabrics segments located in the U.S. (10) The $3.3 million as of April 30, 2023, and $4.0 million as of May 1, 2022, represent right of use assets located in the U.S. associated with unallocated corporate departments and corporate departments shared by both the mattress fabrics and upholstery fabrics segments located in the U.S. (11) Capital expenditure amounts are stated on an accrual basis. See the Consolidated Statement 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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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