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Revenue from Contracts with Customers
9 Months Ended
Jan. 29, 2023
Revenue From Contract With Customer [Abstract]  
Revenue from Contracts with Customers

4. 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 for Read’s 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 in the Consolidated Balance Sheets as deferred revenue. Our terms are customary within the industries in which we operate and are not considered financing arrangements. There were no contract assets recognized as of January 29, 2023, January 30, 2022, and May 1, 2022.

A summary of the activity associated with deferred revenue follows:

 

 

 

Nine months ended

 

(dollars in thousands)

 

January 29, 2023

 

 

January 30, 2022

 

Beginning balance

 

$

520

 

 

$

540

 

Revenue recognized on contract liabilities

 

 

(3,496

)

 

 

(2,276

)

Payments received for services not yet rendered

 

 

4,406

 

 

 

2,254

 

Ending balance

 

$

1,430

 

 

$

518

 

 

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 29, 2023:

 

 

 

Mattress

 

 

Upholstery

 

 

 

 

(dollars in thousands)

 

Fabrics

 

 

Fabrics

 

 

Total

 

Products transferred at a point in time

 

$

24,697

 

 

$

25,575

 

 

$

50,272

 

Services transferred over time

 

 

 

 

 

2,251

 

 

 

2,251

 

Total Net Sales

 

$

24,697

 

 

$

27,826

 

 

$

52,523

 

 

 

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 29, 2023:

 

 

 

 

Mattress

 

 

Upholstery

 

 

 

 

(dollars in thousands)

 

Fabrics

 

 

Fabrics

 

 

Total

 

Products transferred at a point in time

 

$

80,299

 

 

$

86,981

 

 

$

167,280

 

Services transferred over time

 

 

 

 

 

6,228

 

 

 

6,228

 

Total Net Sales

 

$

80,299

 

 

$

93,209

 

 

$

173,508

 

 

 

 

 

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