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Revenue from Contracts with Customers
 12 Months Ended
Apr. 30, 2023
Revenue From Contract With Customer [Abstract]  
Revenue from Contracts with Customers
4.
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, 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 for Read’s products associated with window treatments.

Significant Judgments

See Note 1 of the consolidated financial statements for disclosure of our accounting policies regarding our significant judgments associated with revenue recognition, determining our transaction prices, and revenue measurement.

Contract Assets & Liabilities

Certain contracts relating to 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 terms which generally range from 15-60 days. Our terms are customary within the industries in which we operate and are not considered financing arrangements.

During the fourth quarter of fiscal 2023, we entered into a contract with an upholstery fabrics customer that required the customer to pay us an upfront license fee payment totaling $250,000 to use a certain trademark for a period of three years commencing in fiscal 2024 and extending through fiscal 2026.

There were no contract assets recognized as of April 30, 2023, or May 1, 2022.

A summary of the activity of deferred revenue follows:

 

(dollars in thousands)

 

Fiscal 2023

 

 

Fiscal 2022

 

 

Fiscal 2021

 

Beginning Balance

 

$

520

 

 

$

540

 

 

$

502

 

Revenue recognized on contract liabilities

 

 

(4,885

)

 

 

(3,434

)

 

 

(2,459

)

Payments received for services not yet rendered

 

 

5,557

 

 

 

3,414

 

 

 

2,497

 

Ending Balance

 

$

1,192

 

 

$

520

 

 

$

540

 

 

As of April 30, 2023, total deferred revenue of $1.2 million pertained to (i) upfront customer deposits associated with customized fabrication and installation services related to Read totaling $942,000 and (ii) an upfront license fee paid to us for the licensing of a certain trademark to be used by an upholstery fabrics customer totaling $250,000. As of May 1, 2022, the entire deferred revenue amount of $520,000 represented upfront customer deposits associated with customized fabrication and installation services related to Read.

 

Disaggregation of Revenue

The following table presents our disaggregated revenue related to operations by segment, timing of revenue recognition, and product sales versus services rendered for fiscal 2023:

 

(dollars in thousands)

 

Mattress
Fabrics

 

 

Upholstery
Fabrics

 

 

Total

 

Products transferred at a point in time

 

$

110,995

 

 

$

114,996

 

 

$

225,991

 

Services transferred over time

 

 

—

 

 

 

8,943

 

 

 

8,943

 

Total Net Sales

 

$

110,995

 

 

$

123,939

 

 

$

234,934

 

 

 

The following table presents our disaggregated revenue related to operations by segment, timing of revenue recognition, and product sales versus services rendered for fiscal 2022:

 

(dollars in thousands)

 

Mattress
Fabrics

 

 

Upholstery
Fabrics

 

 

Total

 

Products transferred at a point in time

 

$

152,159

 

 

$

133,622

 

 

$

285,781

 

Services transferred over time

 

 

—

 

 

 

9,058

 

 

 

9,058

 

Total Net Sales

 

$

152,159

 

 

$

142,680

 

 

$

294,839

 

 

The following table presents our disaggregated revenue related to operations by segment, timing of revenue recognition, and product sales versus services rendered for fiscal 2021:

 

(dollars in thousands)

 

Mattress
Fabrics

 

 

Upholstery
Fabrics

 

 

Total

 

Products transferred at a point in time

 

$

157,671

 

 

$

133,501

 

 

$

291,172

 

Services transferred over time

 

 

—

 

 

 

8,548

 

 

 

8,548

 

Total Net Sales

 

$

157,671

 

 

$

142,049

 

 

$

299,720