XML 49 R42.htm IDEA: XBRL DOCUMENT
v3.25.2

Income Taxes (Tables) | 3 Months Ended
--- | ---
Aug. 03, 2025
Income Tax Disclosure [Abstract] |
Summary of Differences in Income Tax Expense at U.S. Federal Income Tax Rate and Effective Income Tax Rate | The following schedule summarizes 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 for the three-month periods ended August 3, 2025, and July 28, 2024:
|  | August 3, |  |  | July 28, |
|  | 2025 |  |  | 2024 |
U.S. federal income tax rate |  |  | 21.0 | % |  |  | 21.0 | %
U.S. valuation allowance |  |  | 60.4 |  |  |  | (23.5 | )
Withholding taxes associated with foreign jurisdictions |  |  | 13.4 |  |  |  | (1.0 | )
Foreign income tax rate differential |  |  | 12.7 |  |  |  | 0.7 |
global intangible low tax income tax (GILTI) |  |  | 12.6 |  |  |  | — |
Tax effects of local currency foreign exchange loss |  |  | (1.0 | ) |  |  | (0.4 | )
Uncertain income tax positions |  |  | 0.6 |  |  |  | 1.2 |
Stock-based compensation |  |  | 0.6 |  |  |  | (0.9 | )
Other (1) |  |  | — |  |  |  | (0.5 | )
Consolidated effective income tax rate (2) (3) |  |  | 120.3 | % |  | (3.4)% |
(1) "Other" for all periods presented represents miscellaneous adjustments that pertain to U.S. permanent differences such as meals and entertainment, income tax provision to return adjustments, and other and miscellaneous items. (2) Our consolidated effective income tax rates were adversely affected by the mix of earnings between our U.S. operations and foreign subsidiaries, as our taxable income stemmed from our operations located in China and a gain from the sale of Property located in Canada during the first quarter of fiscal 2026 (see Notes 8 and 10 of the consolidated financial statements for further details), which jurisdictions 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 the first quarters of fiscal 2026 and 2025, respectively. Consequently, an income ta x benefit was not recognized for pre-tax losses associated with our U.S. operations totaling ($3.3) million and ($7.0) million that were incurred during the first quarters of fiscal 2026 and 2025, respectively. Lastly, our consolidated effective income tax rates were also adversely affected by pre-tax losses associated with our Haitian operations, which are not subject to income tax. Our Haitian operations are located in an economic zone that permits a 0% income tax rate for the first fifteen years of operations, for which we have seven years remaining. As a result of the 0% income tax rate , an income tax benefit was not recognized for the pre-tax losses associated with our Haitian operations totaling $(362,000) and $(633,000) that were incurred during the first quarters of fiscal 2026 and 2025, respectively. (3) During the first quarter of fiscal 2026, we earned a lower consolidated pre-tax income totaling $1.1 million, compared with a significantly higher consolidated pre-tax loss of $(7.0) million. As a result, we reported a positive effective income tax rate during the first quarter of fiscal 2026, compared with a negative effective income tax rate during the first quarter of fiscal 2025. Accordingly, the principal differences between our 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 the first quarter of fiscal 2026, compared with the first quarter of fiscal 2025.
Summary of Valuation Allowances Against Net Deferred Income Tax Assets | Based on our assessments as of August 3, 2025, July 28, 2024, and April 27, 2025, valuation allowances against our net deferred income tax assets pertain to the following:
(dollars in thousands) |  | August 3, 2025 |  |  | July 28, 2024 |  |  | April 27, 2025 |
U.S. federal and state net deferred income tax assets |  | $ | 24,661 |  |  | $ | 21,326 |  |  | $ | 23,973 |
U.S. capital loss carryforward |  |  | 2,330 |  |  |  | 2,330 |  |  |  | 2,330 |
|  | $ | 26,991 |  |  | $ | 23,656 |  |  | $ | 26,303 |
Summary of Taxes Paid | The following table sets forth taxes paid by jurisdiction:
|  | Three Months |  |  | Three Months |
|  | Ended |  |  | Ended |
|  | August 3, |  |  | July 28, |
(dollars in thousands) |  | 2025 |  |  | 2024 |
China Income Taxes, Net of Refunds |  |  | 46 |  |  |  | 561 |
Canada - Income Taxes, Net of Refunds |  |  | — |  |  |  | — |
|  | $ | 46 |  |  | $ | 561 |

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 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 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