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Commitments and Contingencies
12 Months Ended
Apr. 30, 2023
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies
12.
COMMITMENTS AND CONTINGENCIES

Leases

Balance Sheet

The right of use assets and lease liabilities associated with our operating leases as of April 30, 2023, and May 1, 2022, are as follows:

 

(dollars in thousands)

 

April 30,
2023

 

 

May 1,
2022

 

Right of use assets

 

$

8,191

 

 

$

15,577

 

Operating lease liability - current

 

 

2,640

 

 

 

3,219

 

Operating lease liability – noncurrent

 

 

3,612

 

 

 

7,062

 

 

Supplemental Cash Flow Information

 

(dollars in thousands)

2023

 

 

2022

 

 

2021

 

Operating lease liability payments

$

2,497

 

 

$

2,954

 

 

$

2,634

 

Right of use assets exchanged for lease liabilities

 

731

 

 

 

3,762

 

 

 

8,014

 

 

Operating lease costs were $3.6 million, $3.9 million, and $2.9 million during fiscal 2023, 2022, and 2021, respectively. Short-term lease costs were $44,000, $68,000, and $55,000 during fiscal 2023, 2022, and 2021, respectively. Variable lease expense was immaterial for each of fiscal 2023, 2022, and 2021.

 

As of April 30, 2023, the weighted average remaining lease term and discount rate for our operating leases follows:

 

 

Weighted average lease term

 

3.87 years

 

Weighted average discount rate

 

 

3.58

%

 

As of May 1, 2022, the weighted average remaining lease term and discount rate for our operating leases follows:

 

Weighted average lease term

 

3.29 years

 

Weighted average discount rate

 

 

1.77

%

 

Other Information

Maturity of our operating lease liabilities for the next five fiscal years and thereafter follows:

 

(dollars in thousands)

 

Amount

 

2024

 

$

2,698

 

2025

 

 

1,890

 

2026

 

 

603

 

2027

 

 

343

 

2028

 

 

225

 

Thereafter

 

 

804

 

 

 

6,563

 

Less: interest

 

 

(311

)

Present value of lease liabilities

 

$

6,252

 

 

Related Party Lease – Mattress Fabrics Segment

On March 23, 2023, we terminated an agreement with a partnership owned by an immediate family member of an officer of the company, pursuant to which we leased a 63,522 square foot facility for our domestic mattress cover operation. Prior to the termination of the lease agreement, rent payments totaled $123,000, $148,000, and $151,000 in fiscal 2023, 2022, and 2021, respectively. In accordance with the termination of the lease agreement, we were reimbursed $67,000 for leasehold improvements we made to the leased property.

Litigation

The company is involved in legal proceedings and claims which have arisen in the ordinary course of business. Management has determined that these actions, when ultimately concluded and settled, will not have a material adverse effect on our financial position, results of operations, or cash flows.

Accounts Payable – Capital Expenditures

As of April 30, 2023, and May 1, 2022, we had total amounts due regarding capital expenditures totaling $56,000 and $473,000, respectively, which pertained to outstanding vendor invoices, none of which were financed.

Purchase Commitments - Capital Expenditures

As of April 30, 2023, we had open purchase commitments to acquire equipment for our U.S. and Canadian mattress fabrics operations totaling $629,000.