XML 59 R39.htm IDEA: XBRL DOCUMENT
v3.24.2

Income Taxes (Tables) | 12 Months Ended
--- | ---
Apr. 28, 2024
Income Tax Disclosure [Abstract] |
Schedule of Income Tax Expense Attributable to (Loss) Income from Operations | Income tax expense consists of:
(dollars in thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
current |  |  |  |  |  |  |  |  |
federal |  | $ | — |  |  |  | — |  |  |  | — |
state |  |  | — |  |  |  | 1 |  |  |  | 2 |
foreign |  |  | 2,584 |  |  |  | 3,053 |  |  |  | 2,156 |
uncertain income tax positions |  |  | 78 |  |  |  | 78 |  |  |  | 37 |
|  |  | 2,662 |  |  |  | 3,132 |  |  |  | 2,195 |
deferred |  |  |  |  |  |  |  |  |
federal |  |  | 1,342 |  |  |  | (1,591 | ) |  |  | 1,121 |
state |  |  | 63 |  |  |  | (66 | ) |  |  | 47 |
undistributed earnings – foreign subsidiaries |  |  | 627 |  |  |  | 628 |  |  |  | 76 |
U.S. federal & state carryforwards and credits |  |  | (4,734 | ) |  |  | (5,162 | ) |  |  | (971 | )
uncertain income tax positions |  |  | — |  |  |  | — |  |  |  | (380 | )
foreign |  |  | (240 | ) |  |  | (629 | ) |  |  | 615 |
valuation allowance |  |  | 3,329 |  |  |  | 6,818 |  |  |  | 183 |
|  |  | 387 |  |  |  | (2 | ) |  |  | 691 |
|  | $ | 3,049 |  |  |  | 3,130 |  |  |  | 2,886 |
Schedule of (Loss) Income before Income Taxes Related to Foreign and U.S. Operations | Loss before income taxes related to our foreign and U.S. operations consists of:
(dollars in thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
Foreign |  |  |  |  |  |  |  |  |
China |  | $ | 9,091 |  |  |  | 7,062 |  |  |  | 6,998 |
Canada |  |  | 902 |  |  |  | 1,516 |  |  |  | 1,302 |
Haiti |  |  | (2,127 | ) |  |  | (3,483 | ) |  |  | (980 | )
Vietnam |  |  | (22 | ) |  |  | — |  |  |  | — |
Total Foreign |  |  | 7,844 |  |  |  | 5,095 |  |  |  | 7,320 |
United States |  |  | (18,614 | ) |  |  | (33,485 | ) |  |  | (7,645 | )
|  | $ | (10,770 | ) |  |  | (28,390 | ) |  |  | (325 | )
Summary of Differences in Income Tax Expense at Federal Income Tax Rate and Effective Income Tax Rate | The following schedule summarizes the principal differences between the income tax expense at the federal income tax rate and the effective income tax rate reflected in the consolidated financial statements:
|  | 2024 |  |  | 2023 |  |  | 2022 |
U.S. federal income tax rate |  |  | 21.0 | % |  |  | 21.0 | % |  |  | 21.0 | %
valuation allowance |  |  | (30.9 | ) |  |  | (24.0 | ) |  |  | (56.3 | )
global intangible low taxed income tax (GILTI) (1) |  |  | — |  |  |  | — |  |  |  | (540.9 | )
foreign tax rate differential |  |  | (4.7 | ) |  |  | (4.0 | ) |  |  | (206.2 | )
income tax effects of Chinese foreign exchange gains and losses |  |  | (3.6 | ) |  |  | (0.9 | ) |  |  | (20.6 | )
withholding taxes associated with foreign tax jurisdictions |  |  | (6.5 | ) |  |  | (2.4 | ) |  |  | (172.8 | )
uncertain income tax positions |  |  | (0.7 | ) |  |  | (0.3 | ) |  |  | 105.4 |
U.S. state income taxes |  |  | 0.8 |  |  |  | 0.6 |  |  |  | 21.5 |
stock-based compensation |  |  | (1.8 | ) |  |  | (0.3 | ) |  |  | (3.3 | )
other (2) |  |  | (1.9 | ) |  |  | (0.7 | ) |  |  | (35.8 | )
consolidated effective income tax rate (3) (4) (5) |  |  | (28.3 | )% |  |  | (11.0 | )% |  |  | (888.0 | )%
(1) See the below section titled "GILTI" for further details for the GILTI tax incurred during fiscal 2022. (2) “Other” for all periods presented represents miscellaneous adjustments that pertain to U.S. permanent differences such as meals and entertainment and income tax provision to return adjustments. (3) Our negative consolidated effective income tax rates during fiscal 2024, 2023, and 2022, were caused by the mix of earnings between our U.S. operations and foreign subsidiaries, as our taxable income stems from our operations located in China and Canada, which have higher income tax rates than the U.S. In addition, we applied a full valuation allowance against our U.S. deferred income tax assets during fiscal 2024, 2023, and 2022, respectively. Consequently, an income tax benefit was not recognized for the pre-tax losses associated with our U.S. operations totaling $(18.6) million, $(33.5) million, and $(7.6) million that were incurred during fiscal 2024, 2023, and 2022, respectively. (4) During fiscal 2024, we incurred a significantly lower consolidated pre-tax loss of $(10.8) million, compared with a significantly higher pre-tax loss of $(28.4) million incurred during fiscal 2023. As a result, the principal differences between income tax expense at the U.S. federal income tax rate and the effective income tax rate reflected in the consolidated financial statements were more pronounced during fiscal 2024 compared with fiscal 2023. (5) During fiscal 2023, we incurred a significantly higher consolidated pre-tax loss totaling $(28.4) million, compared with a much lower consolidated pre-tax loss totaling $(325,000) during fiscal 2022. As a result, the principal differences between income tax expense at the U.S. federal income tax rate and the effective income tax rate reflected in the consolidated financial statements were more pronounced for fiscal 2022, compared with fiscal 2023.
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities consist of the following:
(dollars in thousands) |  | 2024 |  |  | 2023 |
deferred tax assets: |  |  |  |  |  |
accounts receivable |  | $ | 195 |  |  |  | 297 |
inventories |  |  | 1,972 |  |  |  | 3,277 |
compensation |  |  | 2,152 |  |  |  | 2,676 |
liabilities and other |  |  | 8 |  |  |  | 5 |
intangible assets and goodwill |  |  | 349 |  |  |  | 395 |
property, plant, and equipment (1) |  |  | 171 |  |  |  | 179 |
operating lease liability |  |  | 693 |  |  |  | 781 |
foreign income tax credits - U.S. |  |  | 783 |  |  |  | 783 |
loss carryforwards – U.S. |  |  | 18,344 |  |  |  | 13,564 |
valuation allowance - U.S. |  |  | (22,004 | ) |  |  | (18,675 | )
total deferred tax assets |  |  | 2,663 |  |  |  | 3,282 |
deferred tax liabilities: |  |  |  |  |  |
undistributed earnings on foreign subsidiaries |  |  | (4,840 | ) |  |  | (4,213 | )
property, plant and equipment (2) |  |  | (2,694 | ) |  |  | (3,450 | )
right of use assets |  |  | (851 | ) |  |  | (964 | )
other |  |  | (139 | ) |  |  | (129 | )
total deferred tax liabilities |  |  | (8,524 | ) |  |  | (8,756 | )
Net deferred liabilities |  | $ | (5,861 | ) |  |  | (5,474 | )
(1) Pertains to the company’s operations located in China. (2) Pertains to the company’s operations located in the U.S. and Canada.
Summary of Valuation Allowances Against U.S. Net Deferred Income Tax Assets | Based on our assessments as of April 28, 2024, and April 30, 2023, valuation allowances against our U.S. net deferred income tax assets pertain to the following:
(dollars in thousands) |  | April 24, 2023 |  |  | April 30, 2023 |
U.S. federal and state net deferred income tax assets |  | $ | 19,674 |  |  | $ | 16,345 |
U.S. capital loss carryforward |  |  | 2,330 |  |  |  | 2,330 |
|  | $ | 22,004 |  |  | $ | 18,675 |
Summary of Change in Valuation Allowances Against U.S. Net Deferred Income Tax Assets | A summary of the change in the valuation allowances against our U.S. net deferred income tax assets follows:
(dollars in thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
beginning balance |  | $ | 18,675 |  |  |  | 11,857 |  |  |  | 11,674 |
change in valuation allowance associated with current year earnings |  |  | 3,318 |  |  |  | 7,252 |  |  |  | 1,640 |
change in estimate during current year (1) |  |  | 11 |  |  |  | (434 | ) |  |  | (1,457 | )
ending balance |  | $ | 22,004 |  |  |  | 18,675 |  |  |  | 11,857 |
(1) Amounts represent changes in our U.S.net deferred income tax asset balances during the current year that pertain to (i) income tax provision to return adjustments; (ii) changes in estimates of our U.S. effective income tax rate that pertain to U.S. state income tax rates and apportionment percentages, (iii) recognition of an uncertain income tax position due to expiration of statute of limitations; (iv) expiration of certain U.S. state loss carryforwards; and (v) other immaterial items.
Schedule of Unrecognized Tax Benefit | The following table sets forth the change in the company’s unrecognized income tax benefit:
(dollars in thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
beginning balance |  | $ | 1,179 |  |  |  | 1,101 |  |  |  | 1,444 |
increases from prior period tax positions |  |  | 197 |  |  |  | 175 |  |  |  | 114 |
decreases from prior period tax positions |  |  | (118 | ) |  |  | (97 | ) |  |  | (77 | )
lapse of applicable statute of limitations |  |  | — |  |  |  | — |  |  |  | (380 | )
ending balance |  | $ | 1,258 |  |  |  | 1,179 |  |  |  | 1,101 |
Summary of Income Taxes Paid (Refunded) | The following table sets forth income taxes paid (refunded) by jurisdiction:
(dollars in thousands) |  | 2024 |  |  | 2023 |  |  | 2022 |
United States federal - Transition Tax |  | $ | 499 |  |  | $ | 265 |  |  | $ | 266 |
China - Income Taxes |  |  | 2,317 |  |  |  | 1,831 |  |  |  | 2,036 |
China - Withholding Taxes Associated with Earnings and Profits Distribution to U.S. Parent |  |  | — |  |  |  | — |  |  |  | 487 |
Canada - Income Taxes |  |  | 468 |  |  |  | 228 |  |  |  | 311 |
|  | $ | 3,284 |  |  | $ | 2,324 |  |  | $ | 3,100 |

X
- Definition Schedule Of Reconciliation Of Valuation Allowance Table [Text Block] + References No definition available. + Details
Name: | culp_ScheduleOfReconciliationOfValuationAllowanceTableTextBlock
Namespace Prefix: | culp_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Summary of income taxes paid (refunded) by jurisdiction. + References No definition available. + Details
Name: | culp_SummaryOfIncomeTaxesPaidRefundedByJurisdictionTableTextBlock
Namespace Prefix: | culp_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-9 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12A -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12A Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 217 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-217 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-15A + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-2 + Details
Name: | us-gaap_SummaryOfValuationAllowanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration