Revenue from Contracts with Customers

9 Months Ended

Jan. 30, 2022

Revenue From Contract With Customer [Abstract]

Revenue from Contracts with Customers

5. Revenue from Contracts with Customers

Nature of Performance Obligations

Our operations are classified into two business segments: mattress fabrics and upholstery fabrics. The mattress fabrics segment manufactures, sources, and sells fabrics and mattress covers primarily to bedding manufacturers. The upholstery fabrics segment develops, manufactures, sources, and sells fabrics primarily to residential and commercial furniture manufacturers. In addition, the upholstery fabrics segment includes Read Window Products LLC (“Read”), which provides window treatments and sourcing of upholstery fabrics and other products, as well as measuring and installation services for Read’s products, to customers in the hospitality and commercial industries. Read also supplies soft goods such as decorative top sheets, coverlets, duvet covers, bed skirts, bolsters, and pillows.

Our primary performance obligations include the sale of mattress fabrics and upholstery fabrics, as well as the performance of customized fabrication and installation services of our own products associated with window treatments.

Contract Assets & Liabilities

Certain contracts, primarily those for customized fabrication and installation services associated with Read, require upfront customer deposits that result in a contract liability which is recorded on the Consolidated Balance Sheets as deferred revenue. If upfront deposits or prepayments are not required, customers may be granted credit terms which range from 15-60 days. Our customary terms are common within the industries in which we operate and are not considered financing arrangements. There were no contract assets recognized as of January 30, 2022, January 31, 2021, and May 2, 2021.

A summary of the activity associated with deferred revenue follows:

	Nine months ended
(dollars in thousands)	January 30, 2022			January 31, 2021
Beginning balance	$	540		$	502
Revenue recognized on contract liabilities		(2,276	)		(1,893	)
Payments received for services not yet rendered		2,254			1,619
Ending balance	$	518		$	228

Disaggregation of Revenue

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the three-month period ending January 30, 2022:

	Mattress		Upholstery
(dollars in thousands)	Fabrics		Fabrics		Total
Products transferred at a point in time	$	38,439	$	39,400	$	77,839
Services transferred over time		—		2,452		2,452
Total Net Sales	$	38,439	$	41,852	$	80,291

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the nine-month period ending January 30, 2022:

	Mattress		Upholstery
(dollars in thousands)	Fabrics		Fabrics		Total
Products transferred at a point in time	$	122,380	$	109,105	$	231,485
Services transferred over time		—		6,414		6,414
Total Net Sales	$	122,380	$	115,519	$	237,899

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the three-month period ending January 31, 2021:

	Mattress		Upholstery
(dollars in thousands)	Fabrics		Fabrics		Total
Products transferred at a point in time	$	38,600	$	38,762	$	77,362
Services transferred over time		—		1,979		1,979
Total Net Sales	$	38,600	$	40,741	$	79,341

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the nine-month period ending January 31, 2021:

	Mattress		Upholstery
(dollars in thousands)	Fabrics		Fabrics		Total
Products transferred at a point in time	$	114,733	$	99,489	$	214,222
Services transferred over time		—		6,434		6,434
Total Net Sales	$	114,733	$	105,923	$	220,656