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Segment Information (Tables)
 12 Months Ended
May 02, 2021
Segment Reporting [Abstract]  
Summary of Segment Information by Geographic Area International sales accounted for 27%, 26%, and 26% of net sales during fiscal 2021, 2020, and 2019, respectively, and are summarized by geographic area as follows:

(dollars in thousands)

 

2021

 

 

2020

 

 

2019

 

north america (excluding USA) (1)

 

$

32,925

 

 

$

27,637

 

 

$

29,247

 

far east and asia (2)

 

 

43,764

 

 

 

36,470

 

 

 

39,277

 

all other areas

 

 

5,558

 

 

 

2,986

 

 

 

3,712

 

 

 

$

82,247

 

 

$

67,093

 

 

$

72,236

 

 

(1)

Of this amount, $27.2 million, $21.7 million, and $22.5 million are attributable to shipments to Mexico in fiscal 2021, 2020, and 2019, respectively.

(2)

Of this amount $28.1 million, $21.4 million, and $29.8 million are attributable to shipments to China in fiscal 2021, 2020, and 2019, respectively.
Schedule of Operating Segments Information

Statements of operations for our current operating segments are as follows:

 

(dollars in thousands)

 

2021

 

 

2020

 

 

2019

 

net sales by segment:

 

 

 

 

 

 

 

 

 

 

 

 

upholstery fabrics

 

$

142,049

 

 

$

124,754

 

 

 

135,654

 

mattress fabrics

 

 

157,671

 

 

 

131,412

 

 

 

145,671

 

total net sales

 

$

299,720

 

 

$

256,166

 

 

 

281,325

 

gross profit from continuing operations by segment:

 

 

 

 

 

 

 

 

 

 

 

 

upholstery fabrics

 

$

25,968

 

 

$

24,220

 

 

 

25,373

 

mattress fabrics

 

 

23,864

 

 

 

16,278

 

 

 

22,904

 

total segment gross profit

 

 

49,832

 

 

 

40,498

 

 

 

48,277

 

other non-recurring charges (1)

 

 

—

 

 

 

—

 

 

 

(159

)

restructuring related charges (2)

 

 

—

 

 

 

—

 

 

 

(2,349

)

total gross profit from continuing operations

 

$

49,832

 

 

$

40,498

 

 

 

45,769

 

selling, general, and administrative expenses by segment:

 

 

 

 

 

 

 

 

 

 

 

 

upholstery fabrics

 

$

14,092

 

 

$

14,353

 

 

 

14,551

 

mattress fabrics

 

 

12,066

 

 

 

11,354

 

 

 

11,296

 

unallocated corporate

 

 

11,598

 

 

 

8,717

 

 

 

6,838

 

total segment selling, general, and administrative expenses

 

 

37,756

 

 

 

34,424

 

 

 

32,685

 

other non-recurring charges (3)

 

 

—

 

 

 

—

 

 

 

518

 

restructuring related charges (4)

 

 

—

 

 

 

—

 

 

 

40

 

total selling, general, and administrative expenses

 

$

37,756

 

 

$

34,424

 

 

 

33,243

 

income (loss) from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

upholstery fabrics

 

$

11,876

 

 

$

9,867

 

 

 

10,823

 

mattress fabrics

 

 

11,798

 

 

 

4,924

 

 

 

11,607

 

unallocated corporate expenses

 

 

(11,598

)

 

 

(8,717

)

 

 

(6,838

)

total segment income from continuing operations

 

 

12,076

 

 

 

6,074

 

 

 

15,592

 

asset impairments (7)

 

 

—

 

 

 

(13,712

)

 

 

—

 

other non-recurring charges (1) (3)

 

 

—

 

 

 

—

 

 

 

(678

)

restructuring credit and related charges (5) (6)

 

 

—

 

 

 

70

 

 

 

(1,563

)

total income (loss) from continuing operations

 

 

12,076

 

 

 

(7,568

)

 

 

13,351

 

interest expense

 

 

(51

)

 

 

(106

)

 

 

(35

)

interest income

 

 

244

 

 

 

897

 

 

 

789

 

gain on bargain purchase (8)

 

 

819

 

 

 

—

 

 

 

—

 

other expense

 

 

(2,208

)

 

 

(902

)

 

 

(1,383

)

income (loss) before income taxes from continuing operations

 

$

10,880

 

 

$

(7,679

)

 

 

12,722

 

 

(1)

The $159,000 represents employee termination benefits and other operational reorganization costs associated with our mattress fabrics segment.

(2)

The $2.3 million represents a restructuring related charge of $1.6 million for inventory markdowns and $784,000 for other operating costs associated with our closed Anderson, SC upholstery fabrics facility.

(3)

The $518,000 represents a non-recurring charge of $429,000 for the accelerated vesting of certain stock-based compensation agreements associated with a senior executive and was recorded in unallocated corporate expenses. Additionally, the $518,000 includes $89,000 for employee termination benefits and operational reorganizational costs associated with our mattress fabrics segment.

(4)

The $40,000 represents a restructuring related charge for the accelerated vesting for certain stock-based compensation agreements associated with an employee that was located at our closed Anderson, SC upholstery fabrics facility.

(5)

The $1.6 million represent charges and credits that were associated our closed Anderson, SC upholstery fabrics facility and include $1.6 million for inventory markdowns, $784,000 for other operating costs, $661,000 for employee termination benefits, and $40,000 for the accelerated vesting of certain stock-based compensation agreements associated an employee, partially offset by a $1.5 million gain on the sale of property, plant, and equipment.

(6)

Of this total net charge of $1.6 million, a charge of $2.3 million, a charge of $40,000 and a credit of $825,000 were recorded in cost of sales, selling, general, and administrative expenses, and restructuring credit, respectively, in the fiscal 2019 Consolidated Statement of Net Income.

(7)

During fiscal 2020, we incurred asset impairment charges totaling $13.7 million, of which $13.6 million and $143,000 pertained to goodwill associated with our mattress and upholstery fabric segments and a tradename associated Read, respectively. Of this $13.7 million, $11.5 million and $2.2 million pertained to the mattress fabrics segment and upholstery fabrics segment, respectively.

(8)

Effective February 1, 2021, we acquired the remaining fifty percent ownership interest in our former unconsolidated joint venture located in Haiti.  Pursuant to this transaction, we are now the sole owner with full control over this operation.  The gain on bargain purchase represents the net assets acquired from this transaction that were more than the $954,000 total purchase price.

Balance sheet information for our current operating segments follow:

 

(dollars in thousands)

 

May 2,

2021

 

 

 

May 3,

2020

 

 

segment assets

 

 

 

 

 

 

 

 

 

 

mattress fabrics

 

 

 

 

 

 

 

 

 

 

accounts receivable

 

$

20,427

 

 

 

$

12,212

 

 

inventory

 

 

30,047

 

 

 

 

26,620

 

 

property, plant, and equipment

 

 

41,264

 

(1)

 

 

40,682

 

(2)

right of use assets

 

 

4,278

 

(3)

 

 

362

 

(4)

investment in unconsolidated joint venture

 

 

—

 

 

 

 

1,602

 

 

total mattress fabrics assets

 

 

96,016

 

 

 

 

81,478

 

 

 

 

 

 

 

 

 

 

 

 

 

upholstery fabrics

 

 

 

 

 

 

 

 

 

 

accounts receivable

 

 

17,299

 

 

 

 

12,881

 

 

inventory

 

 

25,870

 

 

 

 

21,287

 

 

property, plant, and equipment

 

 

1,925

 

(5)

 

 

1,633

 

(6)

right of use assets

 

 

5,945

 

(7)

 

 

1,633

 

(8)

total upholstery fabrics assets

 

 

51,039

 

 

 

 

37,434

 

 

total segment assets

 

 

147,055

 

 

 

 

118,912

 

 

 

 

 

 

 

 

 

 

 

 

 

non-segment assets

 

 

 

 

 

 

 

 

 

 

cash and cash equivalents

 

 

37,009

 

 

 

 

69,790

 

 

short-term investments – available for sale

 

 

5,542

 

 

 

 

923

 

 

short-term investments – held-to-maturity

 

 

3,161

 

 

 

 

4,271

 

 

current income taxes receivable

 

 

—

 

 

 

 

1,585

 

 

deferred income taxes

 

 

545

 

 

 

 

793

 

 

other current assets

 

 

3,852

 

 

 

 

2,116

 

 

property, plant, and equipment (9)

 

 

814

 

 

 

 

832

 

 

right of use assets (10)

 

 

1,507

 

 

 

 

1,908

 

 

intangible assets

 

 

3,004

 

 

 

 

3,380

 

 

long-term investments - held-to-maturity

 

 

1,141

 

 

 

 

2,076

 

 

long-term investments - rabbi trust

 

 

8,415

 

 

 

 

7,834

 

 

other assets

 

 

2,035

 

 

 

 

664

 

 

total assets

 

$

214,080

 

 

 

$

215,084

 

 

 

(dollars in thousands)

 

2021

 

 

2020

 

 

2019

 

capital expenditures (11):

 

 

 

 

 

 

 

 

 

 

 

 

mattress fabrics

 

$

6,226

 

 

$

3,475

 

 

$

2,526

 

upholstery fabrics

 

 

347

 

 

 

348

 

 

 

382

 

discontinued operation

 

 

—

 

 

 

135

 

 

 

53

 

unallocated corporate

 

 

332

 

 

 

675

 

 

 

14

 

total capital expenditures

 

$

6,905

 

 

$

4,633

 

 

$

2,975

 

 

 

 

 

 

 

 

 

 

 

 

 

 

depreciation expense

 

 

 

 

 

 

 

 

 

 

 

 

mattress fabrics

 

$

6,014

 

 

$

6,712

 

 

$

7,008

 

upholstery fabrics

 

 

832

 

 

 

765

 

 

 

787

 

discontinued operation

 

 

—

 

 

 

350

 

 

 

322

 

total depreciation expense

 

$

6,846

 

 

$

7,827

 

 

$

8,117

 

 

(1)

The $41.3 million as of May 2, 2021, represents property, plant, and equipment of $28.4 million, $12.0 million, and $855,000 located in the U.S., Canada, and Haiti, respectively.  

 

(2)

The $40.7 million as of May 3, 2020, represents property, plant, and equipment of $27.7 million and $13.0 million located in the U.S. and Canada, respectively.  

 

(3)

The $4.3 million as of May 2, 2021, represents right of use assets of $2.4 million, $1.4 million, and $400,000 located in Haiti, the U.S., and Canada, respectively.

 

 

(4)

The $362,000 as of May 3, 2020, represents right of use assets located in the U.S.

 

(5)

The $1.9 million as of May 2, 2021, represents property, plant, and equipment of $1.1 million and $850,000 located in the U.S. and China, respectively.  

 

(6)

The $1.6 million as of May 3, 2020, represents property, plant, and equipment of $1.2 million and $471,000 located in the U.S. and China, respectively.

 

(7)

The $5.9 million as of May 2, 2021, represents right of use assets of $5.0 million and $952,000 located in China and the U.S., respectively.

 

(8)

The $1.6 million as of May 3, 2020, represents right of use assets of $857,000 and $776,000 located in the U.S. and China, respectively.

 

(9)

The $814,000 as of May 2, 2021, and $832,000 as of May 3, 2020, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress fabrics and upholstery fabrics segments located in the U.S.

 

(10)

The $1.5 million as of May 2, 2021, and $1.9 million as of May 3, 2020, represents right of use assets located in the U.S. associated with unallocated corporate departments and corporate departments shared by both the mattress fabrics and upholstery fabrics segments located in the U.S.  

 

(11)

Capital expenditure amounts are stated on an accrual basis. See the Consolidated Statement of Cash Flows for capital expenditure    amounts on a cash basis.