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Segment Information (Tables) | 9 Months Ended
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Jan. 29, 2023
Segment Reporting [Abstract] |
Schedule of Operating Segments Information | Statements of operations for our operating segments are as follows:
|  | Three months ended |
|  | January 29, 2023 |  |  | January 30, 2022 |
net sales by segment: |  |  |  |  |  |
mattress fabrics |  | $ | 24,697 |  |  | $ | 38,439 |
upholstery fabrics |  |  | 27,826 |  |  |  | 41,852 |
net sales |  | $ | 52,523 |  |  | $ | 80,291 |
gross (loss) profit: |  |  |  |  |  |
mattress fabrics |  | $ | (1,237 | ) |  | $ | 3,164 |
upholstery fabrics |  |  | 3,330 |  |  |  | 5,946 |
gross profit |  | $ | 2,093 |  |  | $ | 9,110 |
selling, general, and administrative expenses by segment: |  |  |  |  |  |
mattress fabrics |  | $ | 2,992 |  |  | $ | 2,800 |
upholstery fabrics |  |  | 3,750 |  |  |  | 3,500 |
unallocated corporate expenses |  |  | 2,423 |  |  |  | 1,707 |
selling, general, and administrative expenses |  | $ | 9,165 |  |  | $ | 8,007 |
(loss) income from operations by segment: |  |  |  |  |  |
mattress fabrics |  | $ | (4,229 | ) |  | $ | 364 |
upholstery fabrics |  |  | (420 | ) |  |  | 2,446 |
unallocated corporate expenses |  |  | (2,423 | ) |  |  | (1,707 | )
total segment (loss) income from operations |  | $ | (7,072 | ) |  | $ | 1,103 |
restructuring expense (1) |  |  | (711 | ) |  |  | — |
(loss) income from operations |  | $ | (7,783 | ) |  | $ | 1,103 |
interest income |  |  | 196 |  |  |  | 214 |
other expense |  |  | (1,095 | ) |  |  | (322 | )
(loss) income before income taxes |  | $ | (8,682 | ) |  | $ | 995 |
(1) Restructuring expense of $711,000 for the three months ending January 29, 2023, represents lease termination costs of $434,000 and an impairment loss regarding leasehold improvements totaling $277,000 that related to the consolidation of certain leased facilities located in Ouanaminthe, Haiti.
|  | Nine months ended |
|  | January 29, 2023 |  |  | January 30, 2022 |
net sales by segment: |  |  |  |  |  |
mattress fabrics |  | $ | 80,299 |  |  | $ | 122,380 |
upholstery fabrics |  |  | 93,209 |  |  |  | 115,519 |
net sales |  | $ | 173,508 |  |  | $ | 237,899 |
gross (loss) profit: |  |  |  |  |  |
mattress fabrics |  | $ | (7,330 | ) |  | $ | 16,106 |
upholstery fabrics |  |  | 11,436 |  |  |  | 16,230 |
total segment gross profit |  | $ | 4,106 |  |  | $ | 32,336 |
restructuring related charge (1) |  |  | (98 | ) |  |  | — |
gross profit |  | $ | 4,008 |  |  | $ | 32,336 |
selling, general, and administrative expenses by segment: |  |  |  |  |  |
mattress fabrics |  | $ | 8,821 |  |  | $ | 8,991 |
upholstery fabrics |  |  | 11,053 |  |  |  | 10,491 |
unallocated corporate expenses |  |  | 7,259 |  |  |  | 6,793 |
selling, general, and administrative expenses |  | $ | 27,133 |  |  | $ | 26,275 |
(loss) income from operations by segment: |  |  |  |  |  |
mattress fabrics |  | $ | (16,151 | ) |  | $ | 7,115 |
upholstery fabrics |  |  | 383 |  |  |  | 5,739 |
unallocated corporate expenses |  |  | (7,259 | ) |  |  | (6,793 | )
total segment (loss) income from operations |  | $ | (23,027 | ) |  | $ | 6,061 |
restructuring expense (2) |  |  | (1,326 | ) |  |  | — |
restructuring related charge (1) |  |  | (98 | ) |  |  | — |
(loss) income from operations |  | $ | (24,451 | ) |  | $ | 6,061 |
interest income |  |  | 292 |  |  |  | 347 |
other expense |  |  | (348 | ) |  |  | (963 | )
(loss) income before income taxes |  | $ | (24,507 | ) |  | $ | 5,445 |
(1) Restructuring related charge of $98,000 for the nine months ended January 29, 2023, represents a loss on disposal and markdowns of inventory related to the exit of our cut and sew upholstery fabrics operation located in Shanghai, China, which occurred during the second quarter of fiscal 2023. This $98,000 restructuring related charge was recorded in cost of sales in the Consolidated Statements of Net Loss for the nine months ending January 29, 2023. (2) Restructuring expense of $1.3 million for the nine months ending January 29, 2023, relates to both our restructuring activities for our cut and sew upholstery fabrics operations located in Shanghai, China, which occurred during the second quarter of fiscal 2023, and located in Ouanaminthe, Haiti, which occurred during the third quarter of fiscal 2023. Restructuring expense consists of lease termination costs of $481,000, employee termination benefits of $468,000, impairment losses totaling $357,000 that relate to leasehold improvements and equipment, and $20,000 for other associated costs. Balance sheet information for our operating segments follows:
(dollars in thousands) |  | January 29, 2023 |  |  | January 30, 2022 |  |  | May 1, 2022 |
Segment assets: |  |  |  |  |  |  |  |  |
Mattress Fabrics: |  |  |  |  |  |  |  |  |
Accounts receivable |  | $ | 8,314 |  |  | $ | 17,617 |  |  | $ | 9,865 |
Inventory |  |  | 28,757 |  |  |  | 39,544 |  |  |  | 39,028 |
Property, plant and equipment (1) |  |  | 34,661 |  |  |  | 39,913 |  |  |  | 38,731 |
Right of use assets (2) |  |  | 2,476 |  |  |  | 3,706 |  |  |  | 3,469 |
Total mattress fabrics assets |  |  | 74,208 |  |  |  | 100,780 |  |  |  | 91,093 |
Upholstery Fabrics: |  |  |  |  |  |  |  |  |
Accounts receivable |  |  | 12,927 |  |  |  | 21,381 |  |  |  | 12,361 |
Inventory |  |  | 18,870 |  |  |  | 33,589 |  |  |  | 27,529 |
Property, plant and equipment (3) |  |  | 1,794 |  |  |  | 2,018 |  |  |  | 2,030 |
Right of use assets (4) |  |  | 2,995 |  |  |  | 8,727 |  |  |  | 8,124 |
Assets held for sale (5) |  |  | 1,950 |  |  |  | — |  |  |  | — |
Total upholstery fabrics assets |  |  | 38,536 |  |  |  | 65,715 |  |  |  | 50,044 |
Total segment assets |  |  | 112,744 |  |  |  | 166,495 |  |  |  | 141,137 |
Non-segment assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  |  | 16,725 |  |  |  | 11,780 |  |  |  | 14,550 |
Short-term investments - available for sale |  |  | — |  |  |  | 438 |  |  |  | — |
Short-term investments - held-to-maturity |  |  | — |  |  |  | 1,315 |  |  |  | — |
Short-term investments - rabbi trust |  |  | 2,420 |  |  |  | — |  |  |  | — |
Current income taxes receivable |  |  | 238 |  |  |  | 367 |  |  |  | 857 |
Other current assets |  |  | 2,839 |  |  |  | 4,419 |  |  |  | 2,986 |
Deferred income taxes |  |  | 463 |  |  |  | 500 |  |  |  | 528 |
Property, plant and equipment (6) |  |  | 737 |  |  |  | 847 |  |  |  | 941 |
Right of use assets (7) |  |  | 3,442 |  |  |  | 4,162 |  |  |  | 3,984 |
Intangible assets |  |  | 2,346 |  |  |  | 2,722 |  |  |  | 2,628 |
Long-term investments - rabbi trust |  |  | 7,725 |  |  |  | 9,223 |  |  |  | 9,357 |
Long-term investments - held-to-maturity |  |  | — |  |  |  | 8,677 |  |  |  | — |
Other assets |  |  | 919 |  |  |  | 622 |  |  |  | 595 |
Total assets |  | $ | 150,598 |  |  | $ | 211,567 |  |  | $ | 177,563 |
|  | Nine months ended |
(dollars in thousands) |  | January 29, 2023 |  |  | January 30, 2022 |
Capital expenditures (8): |  |  |  |  |  |
Mattress Fabrics |  | $ | 612 |  |  | $ | 2,828 |
Upholstery Fabrics |  |  | 465 |  |  |  | 815 |
Unallocated Corporate |  |  | 75 |  |  |  | 1,330 |
Total capital expenditures |  | $ | 1,152 |  |  | $ | 4,973 |
Depreciation expense: |  |  |  |  |  |
Mattress Fabrics |  | $ | 4,624 |  |  | $ | 4,613 |
Upholstery Fabrics |  |  | 604 |  |  |  | 590 |
Total depreciation expense |  | $ | 5,228 |  |  | $ | 5,203 |
(1) The $34.7 million as of January 29, 2023, represents property, plant, and equipment of $23.1 million, $10.9 million, and $651,000 located in the U.S., Canada, and Haiti, respectively. The $39.9 million as of January 30, 2022, represents property, plant, and equipment of $26.6 million, $12.5 million, and $796,000 located in the U.S., Canada, and Haiti, respectively. 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. (2) The $2.5 million as of January 29, 2023, represents right of use assets of $1.6 million and $833,000 located in Haiti and Canada, respectively. The $3.7 million as of January 30, 2022, represents right of use assets of $2.1 million, $1.3 million, and $352,000 located in Haiti, the U.S., and Canada, respectively. 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. (3) The $1.8 million as of January 29, 2023, represents property, plant, and equipment of $1.0 million, $630,000, and $121,000 located in the U.S., Haiti, and China, respectively. The $2.0 million as of January 30, 2022, represents property, plant, and equipment of $1.1 million, $585,000, and $344,000 located in the U.S., Haiti, and China, respectively. 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. (4) The $3.0 million as of January 29, 2023, represents right of use assets of $1.7 million and $1.3 million located in China and the U.S., respectively. The $8.7 million as of January 30, 2022, represents right of use assets of $4.1 million, $2.7 million, and $1.9 million located in China, Haiti, and the U.S., respectively. 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. (5) The $2.0 million as of January 29, 2023, represents a right of use asset classified as held for sale located in Haiti. (6) The $737,000, $847,000, and $941,000 as of January 29, 2023, January 30, 2022, and May 1, 2022, 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. (7) The $3.4 million, $4.2 million, and $4.0 million as of January 29, 2023, January 30, 2022, and May 1, 2022, respectively, represent right of use assets located in the U.S. (8) 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 Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -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 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599 + Details
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