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Intangible Assets | 3 Months Ended
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Jul. 28, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets | 6. Intangible Assets A summary of intangible assets follows:
(dollars in thousands) |  | July 28, 2024 |  |  | July 30, 2023 |  |  | April 28, 2024 |
Tradename |  | $ | 540 |  |  | $ | 540 |  |  | $ | 540 |
Customer relationships, net |  |  | 960 |  |  |  | 1,260 |  |  |  | 1,035 |
Non-compete agreement, net |  |  | 282 |  |  |  | 358 |  |  |  | 301 |
|  | $ | 1,782 |  |  | $ | 2,158 |  |  | $ | 1,876 |
Tradename Our tradename pertains to Read, a separate reporting unit within the upholstery fabrics segment. This tradename was determined to have an indefinite useful life at the time of its acquisition, and therefore is not being amortized. However, we are required to assess this tradename annually or between annual tests if we believe indicators of impairment exist. Based on our assessment as of July 28, 2024, no indicators of impairment existed, and therefore we did no t record any asset impairment charges associated with our tradename during the first quarter of fiscal 2025. Customer Relationships A summary of the change in the carrying amount of our customer relationships follows:
|  | Three months ended |
(dollars in thousands) |  | July 28, 2024 |  |  | July 30, 2023 |
Beginning balance |  | $ | 1,035 |  |  | $ | 1,335 |
Amortization expense |  |  | (75 | ) |  |  | (75 | )
Ending balance |  | $ | 960 |  |  | $ | 1,260 |
Our customer relationships are amortized on a straight-line basis over useful lives ranging from nine to seventeen years. The gross carrying amount of our customer relationships was $3.1 million as of July 28, 2024, July 30, 2023, and April 28, 2024, respectively. Accumulated amortization for these customer relationships was $2.1 million, $1.9 million, and $2.1 million as of July 28, 2024, July 30, 2023, and April 28, 2024, respectively. The remaining amortization expense for the next five fiscal years and thereafter are as follows: FY 2025 - $226,000; FY 2026 - $301,000; FY 2027 - $280,000; FY 2028 - $51,000; FY 2029 - $51,000; and thereafter - $51,000. The weighted average amortization period for our customer relationships was 3.6 years as of July 28, 2024. Non-Compete Agreement A summary of the change in the carrying amount of our non-compete agreement follows:
|  | Three months ended |
(dollars in thousands) |  | July 28, 2024 |  |  | July 30, 2023 |
Beginning balance |  | $ | 301 |  |  | $ | 377 |
Amortization expense |  |  | (19 | ) |  |  | (19 | )
Ending balance |  | $ | 282 |  |  | $ | 358 |
Our non-compete agreement is associated with a prior acquisition by our mattress fabrics segment and is amortized on a straight-line basis over the fifteen-year life of the agreement. The gross carrying amount of our non-compete agreement was $2.0 million as of July 28, 2024, July 30, 2023, and April 28, 2024, respectively. Accumulated amortization for our non-compete agreement was $1.8 million, $1.7 million, and $1.7 million as of July 28, 2024, July 30, 2023, and April 28, 2024, respectively. The remaining amortization expense for the next five years and thereafter follows: FY 2025 - $57,000; FY 2026 - $76,000; FY 2027 - $76,000; FY 2028 - $73,000. The weighted average amortization period for the non-compete agreement was 3.8 years as of July 28, 2024. Impairment of Definite Lived Assets - Mattress Fabrics Segment As of July 28, 2024, management reviewed the long-lived assets associated with our mattress fabrics segment, which consisted of property, plant, and equipment, right of use assets, and definite-lived intangible assets (collectively known as the "Mattress Asset Group"), for impairment, as events and changes in circumstances occurred that indicated the carrying amount of the Mattress Asset Group may not be recoverable. The mattress fabrics segment experienced a significant cumulative operating loss totaling $28.8 million commencing in the second quarter of fiscal 2023, and continuing through the first quarter of fiscal 2025. We believe this significant cumulative operating loss stemmed from a decline in consumer discretionary spending on mattress products, which we believe was driven by the following factors: (i) inflationary effects of commodities such as gas, food, and other necessities; (ii) a significant increase in interest rates; (iii) the pulling forward of demand for home goods products during the early years of the COVID-19 pandemic, which demand has now shifted to travel, leisure, and other services; and (iv) excess inventory held by customers due to the decline in consumer demand. Based on the above evidence, we were required to determine the recoverability of the Mattress Asset Group, which is classified as held and used, by comparing the carrying amount of the Mattress Asset Group to the sum of the future undiscounted cash flows expected to result from its use and eventual disposition. If the carrying amount of an asset group exceeds its estimated future cash flows, an impairment charge is recognized for the excess of the carrying amount over the fair value of the asset group. The carrying amount of the Mattress Asset Group totaled $30.0 million, which represents property, plant, and equipment of $28.8 million, right of use assets of $568,000, customer relationships of $294,000, and a non-compete agreement of $282,000. The total carrying amount of the Mattress Asset Group did not exceed the sum of its future undiscounted cash flows from its use and disposition. As a result, we determined there was no impairment associated with the Mattress Asset Group as of July 28, 2024.

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