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NORTH CAROLINA
|
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56-1001967
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(State or other jurisdiction of
|
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(I.R.S. Employer Identification No.)
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incorporation or other organization)
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1823 Eastchester Drive
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High Point, North Carolina
|
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27265-1402
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(Address of principal executive offices)
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(zip code)
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Large accelerated filer ☐
|
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Accelerated filer ☒
|
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Non-accelerated filer ☐
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Smaller Reporting Company ☐
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Page
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Part II - Other Information
|
||
II-3 |
Item 1: Financial Statements
|
||||||
CULP, INC.
|
||||||
FOR THE THREE AND SIX MONTHS ENDED OCTOBER 30, 2016 AND NOVEMBER 1, 2015
|
||||||
UNAUDITED
|
||||||
(Amounts in Thousands, Except for Per Share Data)
|
THREE MONTHS ENDED
|
||||||||
October 30,
|
November 1,
|
|||||||
2016
|
2015
|
|||||||
Net sales
|
$
|
75,343
|
76,956
|
|||||
Cost of sales
|
58,442
|
61,223
|
||||||
Gross profit
|
16,901
|
15,733
|
||||||
Selling, general and
|
||||||||
administrative expenses
|
9,602
|
9,433
|
||||||
Income from operations
|
7,299
|
6,300
|
||||||
Interest income
|
(15
|
)
|
(69
|
)
|
||||
Other expense
|
155
|
225
|
||||||
Income before income taxes
|
7,159
|
6,144
|
||||||
Income taxes
|
2,684
|
2,373
|
||||||
Net income
|
$
|
4,475
|
3,771
|
|||||
Net income per share, basic
|
$
|
0.36
|
0.31
|
|||||
Net income per share, diluted
|
0.36
|
0.30
|
||||||
Average shares outstanding, basic
|
12,308
|
12,343
|
||||||
Average shares outstanding, diluted
|
12,507
|
12,484
|
||||||
SIX MONTHS ENDED
|
||||||||
October 30, |
November 1,
|
|||||||
2016
|
2015
|
|||||||
Net sales
|
$
|
156,026
|
157,141
|
|||||
Cost of sales
|
120,705
|
125,206
|
||||||
Gross profit
|
35,321
|
31,935
|
||||||
Selling, general and
|
||||||||
administrative expenses
|
19,348
|
18,175
|
||||||
Income from operations
|
15,973
|
13,760
|
||||||
Interest income
|
(40
|
)
|
(112
|
)
|
||||
Other expense
|
307
|
320
|
||||||
Income before income taxes
|
15,706
|
13,552
|
||||||
Income taxes
|
5,917
|
5,081
|
||||||
Net income
|
$
|
9,789
|
8,471
|
|||||
Net income per share, basic
|
$
|
0.80
|
0.69
|
|||||
Net income per share, diluted
|
0.78
|
0.68
|
||||||
Average shares outstanding, basic
|
12,297
|
12,310
|
||||||
Average shares outstanding, diluted
|
12,495
|
12,481
|
||||||
See accompanying notes to consolidated financial statements.
|
CULP, INC.
|
|
FOR THE THREE AND SIX MONTHS ENDED OCTOBER 30, 2016 AND NOVEMBER 1, 2015
|
|
(UNAUDITED)
|
|
(AMOUNTS IN THOUSANDS) |
THREE MONTHS ENDED
|
||||||||
October 30,
|
November 1,
|
|||||||
2016
|
2015
|
|||||||
Net income
|
$
|
4,475
|
$
|
3,771
|
||||
Other comprehensive income (loss)
|
||||||||
Unrealized gains (losses) on investments
|
||||||||
Unrealized holding gains (losses) on investments
|
4
|
(29
|
)
|
|||||
Reclassification adjustment for realized loss included in net income
|
-
|
56
|
||||||
Total other comprehensive income
|
4
|
27
|
||||||
Comprehensive income
|
$
|
4,479
|
$
|
3,798
|
||||
SIX MONTHS ENDED
|
||||||||
October 30,
|
November 1,
|
|||||||
2016
|
2015
|
|||||||
Net income
|
$
|
9,789
|
$
|
8,471
|
||||
Other comprehensive gain (loss)
|
||||||||
Unrealized gains (losses) on investments
|
||||||||
Unrealized holding gains (losses) on investments
|
88
|
(118
|
)
|
|||||
Reclassification adjustment for realized loss included in net income
|
12
|
56
|
||||||
Total other comprehensive gain (loss)
|
100
|
(62
|
)
|
|||||
Comprehensive income
|
$
|
9,889
|
$
|
8,409
|
||||
See accompanying notes to consolidated financial statements.
|
CULP, INC.
|
CONSOLIDATED BALANCE SHEETS |
OCTOBER 30, 2016, NOVEMBER 1, 2015 AND MAY 1, 2016
|
UNAUDITED
|
(Amounts in Thousands)
|
October 30,
|
November 1,
|
* May 1,
|
|||||||||||
2016
|
2015
|
2016
|
|||||||||||
Current assets:
|
|||||||||||||
Cash and cash equivalents
|
$
|
13,910
|
31,176
|
37,787
|
|||||||||
Short-term investments
|
2,430
|
6,320
|
4,359
|
||||||||||
Accounts receivable, net
|
19,039
|
23,314
|
23,481
|
||||||||||
Inventories
|
45,954
|
46,479
|
46,531
|
||||||||||
Income taxes receivable
|
-
|
75
|
155
|
||||||||||
Other current assets
|
1,675
|
2,614
|
2,477
|
||||||||||
Total current assets
|
83,008
|
109,978
|
114,790
|
||||||||||
Property, plant and equipment, net
|
45,537
|
38,319
|
39,973
|
||||||||||
Goodwill
|
11,462
|
11,462
|
11,462
|
||||||||||
Deferred income taxes
|
581
|
3,415
|
2,319
|
||||||||||
Long-term investments - Held-To-Maturity
|
31,050
|
-
|
-
|
||||||||||
Long-term investments - Rabbi Trust
|
4,994
|
3,279
|
4,025
|
||||||||||
Other assets
|
2,495
|
2,494
|
2,573
|
||||||||||
Total assets
|
$
|
179,127
|
168,947
|
175,142
|
|||||||||
Current liabilities:
|
|||||||||||||
Accounts payable-trade
|
20,183
|
25,221
|
23,994
|
||||||||||
Accounts payable - capital expenditures
|
3,000
|
1,269
|
224
|
||||||||||
Accrued expenses
|
8,878
|
9,895
|
11,922
|
||||||||||
Income taxes payable - current
|
513
|
305
|
180
|
||||||||||
Total current liabilities
|
32,574
|
36,690
|
36,320
|
||||||||||
Income taxes payable - long-term
|
3,734
|
3,655
|
3,841
|
||||||||||
Deferred income taxes
|
1,699
|
1,206
|
1,483
|
||||||||||
Deferred compensation
|
5,171
|
4,421
|
4,686
|
||||||||||
Total liabilities
|
43,178
|
45,972
|
46,330
|
||||||||||
Commitments and Contingencies (Note 15)
|
|||||||||||||
Shareholders' equity
|
|||||||||||||
Preferred stock, $0.05 par value, authorized
|
|||||||||||||
10,000,000
|
|||||||||||||
Common stock, $0.05 par value, authorized
|
|||||||||||||
40,000,000 shares, issued and outstanding
|
|||||||||||||
12,311,756 at October 30, 2016; 12,350,265
|
|||||||||||||
at November 1, 2015; and 12,265,489 at
|
|||||||||||||
May 1, 2016
|
615
|
618
|
614
|
||||||||||
Capital contributed in excess of par value
|
45,349
|
44,708
|
43,795
|
||||||||||
Accumulated earnings
|
90,029
|
77,806
|
84,547
|
||||||||||
Accumulated other comprehensive loss
|
(44
|
)
|
(157
|
)
|
(144
|
)
|
|||||||
Total shareholders' equity
|
135,949
|
122,975
|
128,812
|
||||||||||
Total liabilities and shareholders' equity
|
$
|
179,127
|
168,947
|
175,142
|
|||||||||
* Derived from audited financial statements.
|
|||||||||||||
See accompanying notes to consolidated financial statements.
|
CULP, INC.
|
FOR THE SIX MONTHS ENDED OCTOBER 30, 2016 AND NOVEMBER 1, 2015
|
UNAUDITED
|
(Amounts in Thousands)
|
SIX MONTHS ENDED
|
||||||||
October 30,
|
November 1,
|
|||||||
2016
|
2015
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
9,789
|
8,471
|
|||||
Adjustments to reconcile net income to net cash
|
||||||||
provided by operating activities:
|
||||||||
Depreciation
|
3,511
|
3,184
|
||||||
Amortization of other assets
|
80
|
86
|
||||||
Stock-based compensation
|
1,657
|
1,339
|
||||||
Excess tax benefit related to stock-based compensation
|
(167
|
)
|
(838
|
)
|
||||
Deferred income taxes
|
2,121
|
2,816
|
||||||
Realized loss on sale of short-term investments
|
12
|
56
|
||||||
Loss (gain) on sale of equipment
|
9
|
(60
|
)
|
|||||
Foreign currency exchange gains
|
(53
|
)
|
(13
|
)
|
||||
Changes in assets and liabilities:
|
||||||||
Accounts receivable
|
4,142
|
4,892
|
||||||
Inventories
|
219
|
(4,135
|
)
|
|||||
Other current assets
|
751
|
(302
|
)
|
|||||
Other assets
|
-
|
8
|
||||||
Accounts payable - trade
|
(3,274
|
)
|
(2,921
|
)
|
||||
Accrued expenses and deferred compensation
|
(2,749
|
)
|
(1,547
|
)
|
||||
Income taxes
|
554
|
168
|
||||||
Net cash provided by operating activities
|
16,602
|
11,204
|
||||||
Cash flows from investing activities:
|
||||||||
Capital expenditures
|
(6,308
|
)
|
(5,255
|
)
|
||||
Proceeds from the sale of equipment
|
-
|
225
|
||||||
Proceeds from the sale of short-term investments
|
2,000
|
3,612
|
||||||
Purchase of short-term investments
|
(23
|
)
|
(46
|
)
|
||||
Purchase of long-term investments (Held-To-Maturity)
|
(31,050
|
)
|
-
|
|||||
Purchase of long-term investments (Rabbi Trust)
|
(929
|
)
|
(864
|
)
|
||||
Net cash used in investing activities
|
(36,310
|
)
|
(2,328
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Proceeds from line of credit
|
7,000
|
-
|
||||||
Payments on line of credit
|
(7,000
|
)
|
-
|
|||||
Payments on long-term debt
|
-
|
(2,200
|
)
|
|||||
Excess tax benefit related to stock-based compensation
|
167
|
838
|
||||||
Dividends paid
|
(4,307
|
)
|
(6,417
|
)
|
||||
Payments on debt issuance costs
|
(2
|
)
|
(43
|
)
|
||||
Proceeds from common stock issued
|
11
|
126
|
||||||
Net cash used in financing activities
|
(4,131
|
)
|
(7,696
|
)
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
(38
|
)
|
271
|
|||||
(Decrease) increase in cash and cash equivalents
|
(23,877
|
)
|
1,451
|
|||||
Cash and cash equivalents at beginning of period
|
37,787
|
29,725
|
||||||
Cash and cash equivalents at end of period
|
$
|
13,910
|
31,176
|
|||||
See accompanying notes to consolidated financial statements.
|
CULP, INC.
|
UNAUDITED
|
(Dollars in thousands, except share data)
|
Capital
|
Accumulated
|
|||||||||||||||||||||||
Contributed
|
Other
|
Total
|
||||||||||||||||||||||
Common Stock
|
in Excess
|
Accumulated
|
Comprehensive
|
Shareholders'
|
||||||||||||||||||||
Shares
|
Amount
|
of Par Value
|
Earnings
|
Loss
|
Equity
|
|||||||||||||||||||
Balance, May 3, 2015
|
12,219,121
|
$
|
611
|
43,159
|
75,752
|
(95
|
)
|
$
|
119,427
|
|||||||||||||||
Net income
|
-
|
-
|
-
|
16,935
|
-
|
16,935
|
||||||||||||||||||
Stock-based compensation
|
-
|
-
|
2,742
|
-
|
-
|
2,742
|
||||||||||||||||||
Unrealized loss on investments
|
-
|
-
|
-
|
-
|
(49
|
)
|
(49
|
)
|
||||||||||||||||
Excess tax benefit related to stock
|
||||||||||||||||||||||||
based compensation
|
-
|
-
|
841
|
-
|
-
|
841
|
||||||||||||||||||
Common stock repurchased
|
(100,776
|
)
|
(5
|
)
|
(2,392
|
)
|
-
|
-
|
(2,397
|
)
|
||||||||||||||
Common stock issued in connection
|
||||||||||||||||||||||||
with performance based units
|
115,855
|
6
|
(6
|
)
|
-
|
-
|
-
|
|||||||||||||||||
Fully vested common stock award
|
3,000
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Common stock issued in connection
|
.
|
|||||||||||||||||||||||
with exercise of stock options
|
54,500
|
3
|
197
|
-
|
-
|
200
|
||||||||||||||||||
Common stock surrendered for
|
||||||||||||||||||||||||
withholding taxes payable
|
(26,211
|
)
|
(1
|
)
|
(746
|
)
|
-
|
-
|
(747
|
)
|
||||||||||||||
Dividends paid
|
-
|
-
|
-
|
(8,140
|
)
|
-
|
(8,140
|
)
|
||||||||||||||||
Balance, May 1, 2016 *
|
12,265,489
|
614
|
43,795
|
84,547
|
(144
|
)
|
128,812
|
|||||||||||||||||
Net income
|
-
|
-
|
-
|
9,789
|
-
|
9,789
|
||||||||||||||||||
Stock-based compensation
|
-
|
-
|
1,657
|
-
|
-
|
1,657
|
||||||||||||||||||
Unrealized gain on investments
|
-
|
-
|
-
|
-
|
100
|
100
|
||||||||||||||||||
Excess tax benefit related to stock
|
||||||||||||||||||||||||
based compensation
|
-
|
-
|
167
|
-
|
-
|
167
|
||||||||||||||||||
Common stock issued in connection
|
||||||||||||||||||||||||
with performance based units
|
49,192
|
2
|
(2
|
)
|
-
|
-
|
-
|
|||||||||||||||||
Fully vested common stock award
|
4,800
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Common stock issued in connection
|
||||||||||||||||||||||||
with exercise of stock options
|
2,000
|
-
|
11
|
-
|
-
|
11
|
||||||||||||||||||
Common stock surrendered for
|
||||||||||||||||||||||||
withholding taxes payable
|
(9,725
|
)
|
(1
|
)
|
(279
|
)
|
-
|
-
|
(280
|
)
|
||||||||||||||
Dividends paid
|
-
|
-
|
-
|
(4,307
|
)
|
-
|
(4,307
|
)
|
||||||||||||||||
Balance, October 30, 2016
|
12,311,756
|
$
|
615
|
45,349
|
90,029
|
(44
|
)
|
$
|
135,949
|
|||||||||||||||
* Derived from audited financial statements.
|
||||||||||||||||||||||||
See accompanying notes to consolidated financial statements.
|
(dollars in thousands)
|
October 30, 2016 | November 1, 2015 | May 1, 2016 | |||||||||
Customers
|
$
|
20,580
|
$
|
25,045
|
$
|
25,531
|
||||||
Allowance for doubtful accounts
|
(420
|
)
|
(826
|
)
|
(1,088
|
)
|
||||||
Reserve for returns and allowances and discounts | (1,121 | ) | (905 | ) | (962 | ) | ||||||
$
|
19,039
|
$
|
23,314
|
$
|
23,481
|
Six months ended
|
||||||||
(dollars in thousands)
|
October 30, 2016
|
November 1, 2015
|
||||||
Beginning balance
|
$
|
(1,088
|
)
|
$
|
(851
|
)
|
||
Provision for bad debts
|
216
|
(81
|
)
|
|||||
Net write-offs, net of recoveries
|
452
|
106
|
||||||
Ending balance
|
$
|
(420
|
)
|
$
|
(826
|
)
|
Six months ended
|
||||||||
(dollars in thousands)
|
October 30, 2016
|
November 1, 2015
|
||||||
Beginning balance
|
$
|
(962
|
)
|
$
|
(738
|
)
|
||
Provision for returns, allowances
|
||||||||
and discounts
|
(1,620
|
)
|
(1,561
|
)
|
||||
Credits issued
|
1,461
|
1,394
|
||||||
Ending balance
|
$
|
(1,121
|
)
|
$
|
(905
|
)
|
(dollars in thousands)
|
October 30, 2016
|
November 1, 2015 | May 1, 2016 | |||||||||
Raw materials
|
$
|
6,128
|
$
|
6,272
|
$
|
5,462
|
||||||
Work-in-process
|
2,518
|
2,779
|
2,972
|
|||||||||
Finished goods
|
37,308
|
37,428
|
38,097
|
|||||||||
$
|
45,954
|
$
|
46,479
|
$
|
46,531
|
(dollars in thousands)
|
October 30, 2016
|
November 1, 2015
|
May 1, 2016
|
|||||||||
Cash surrender value – life insurance
|
$
|
358
|
$
|
339
|
$
|
357
|
||||||
Non-compete agreement, net
|
866
|
941
|
903
|
|||||||||
Customer relationships, net
|
689
|
740
|
715
|
|||||||||
Other
|
582
|
474
|
598
|
|||||||||
$
|
2,495
|
$
|
2,494
|
$
|
2,573
|
(dollars in thousands)
|
October 30, 2016
|
November 1, 2015
|
May 1, 2016 | |||||||||
Compensation, commissions and related benefits
|
$
|
7,111
|
$
|
6,657
|
$
|
10,011
|
||||||
Advertising rebates
|
734
|
2,536
|
870
|
|||||||||
Interest
|
5
|
-
|
-
|
|||||||||
Other accrued expenses
|
1,028
|
702
|
1,041
|
|||||||||
$
|
8,878
|
$
|
9,895
|
$
|
11,922
|
|
Fair value measurements at October 30, 2016 using:
|
|||||||||||||||
|
Quoted prices in
active markets
for identical
assets
|
Significant other
observable inputs
|
Significant
unobservable
inputs
|
|||||||||||||
(amounts in thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Assets:
|
||||||||||||||||
Cash and Cash Equivalents
|
$ |
23,940
|
N/A
|
N/A
|
$
|
23,940
|
||||||||||
U.S. Corporate Bonds
|
-
|
7,110
|
N/A
|
7,110
|
||||||||||||
Premier Money Market Fund
|
4,421
|
N/A
|
N/A
|
4,421
|
||||||||||||
Low Duration Bond Fund
|
1,075
|
N/A
|
N/A
|
1,075
|
||||||||||||
Intermediate Term Bond Fund
|
750
|
N/A
|
N/A
|
750
|
||||||||||||
Strategic Income Fund
|
605
|
N/A
|
N/A
|
605
|
||||||||||||
Large Blend Fund
|
319
|
N/A
|
N/A
|
319
|
||||||||||||
Growth Allocation Fund
|
102
|
N/A
|
N/A
|
102
|
||||||||||||
Other
|
152
|
N/A
|
N/A
|
152
|
|
Fair value measurements at November 1, 2015 using:
|
|||||||||||||||
|
Quoted prices in
active markets
for identical
assets
|
Significant other
observable inputs
|
Significant
unobservable
inputs
|
|||||||||||||
(amounts in thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Assets:
|
||||||||||||||||
Premier Money Market Fund
|
$
|
2,703
|
N/A
|
N/A
|
$
|
2,703
|
||||||||||
Intermediate Term Bond Fund
|
2,144
|
N/A
|
N/A
|
2,144
|
||||||||||||
Low Duration Bond Fund
|
2,098
|
N/A
|
N/A
|
2,098
|
||||||||||||
Limited Term Bond Fund
|
1,094
|
N/A
|
N/A
|
1,094
|
||||||||||||
Strategic Income Fund
|
984
|
N/A
|
N/A
|
984
|
||||||||||||
Large Blend Fund
|
279
|
N/A
|
N/A
|
279
|
||||||||||||
Growth Allocation Fund
|
125
|
N/A
|
N/A
|
125
|
||||||||||||
Mid Cap Value Fund
|
94
|
N/A
|
N/A
|
94
|
||||||||||||
Other
|
78
|
N/A
|
N/A
|
78
|
|
Fair value measurements at May 1, 2016 using:
|
|||||||||||||||
|
Quoted prices in
active markets
for identical
assets
|
Significant other
observable inputs
|
Significant
unobservable
inputs
|
|||||||||||||
(amounts in thousands)
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Assets:
|
||||||||||||||||
Premier Money Market Fund
|
$
|
3,404
|
N/A
|
N/A
|
$
|
3,404
|
||||||||||
Low Duration Bond Fund
|
1,604
|
N/A
|
N/A
|
1,604
|
||||||||||||
Intermediate Term Bond Fund
|
1,154
|
N/A
|
N/A
|
1,154
|
||||||||||||
Strategic Income Fund
|
999
|
N/A
|
N/A
|
999
|
||||||||||||
Limited Term Bond Fund
|
602
|
N/A
|
N/A
|
602
|
||||||||||||
Large Blend Fund
|
289
|
N/A
|
N/A
|
289
|
||||||||||||
Growth Allocation Fund
|
148
|
N/A
|
N/A
|
148
|
||||||||||||
Mid Cap Value Fund
|
102
|
N/A
|
N/A
|
102
|
||||||||||||
Other
|
82
|
N/A
|
N/A
|
82
|
Six months ended
|
||||||||
(dollars in thousands)
|
October 30, 2016
|
November 1, 2015
|
||||||
Interest
|
$
|
45
|
$
|
86
|
||||
Income taxes
|
3,238
|
2,088
|
Three months ended
|
||||||||
(amounts in thousands)
|
October 30, 2016
|
November 1, 2015
|
||||||
Weighted average common shares outstanding, basic
|
12,308
|
12,343
|
||||||
Dilutive effect of stock-based compensation
|
199
|
141
|
||||||
Weighted average common shares outstanding, diluted
|
12,507
|
12,484
|
Six months ended
|
||||||||
(amounts in thousands)
|
October 30, 2016
|
November 1, 2015
|
||||||
Weighted average common shares outstanding, basic
|
12,297
|
12,310
|
||||||
Dilutive effect of stock-based compensation
|
198
|
171
|
||||||
Weighted average common shares outstanding, diluted
|
12,495
|
12,481
|
Three months ended
|
||||||||
(dollars in thousands)
|
October 30, 2016
|
November 1, 2015
|
||||||
Net sales:
|
||||||||
Mattress Fabrics
|
$
|
45,527
|
$
|
45,436
|
||||
Upholstery Fabrics
|
29,816
|
31,520
|
||||||
$
|
75,343
|
$
|
76,956
|
|||||
Gross profit:
|
||||||||
Mattress Fabrics
|
$
|
10,756
|
$
|
9,456
|
||||
Upholstery Fabrics
|
6,145
|
6,277
|
||||||
$
|
16,901
|
$
|
15,733
|
|||||
Selling, general, and administrative expenses:
|
||||||||
Mattress Fabrics
|
$
|
3,296
|
$
|
2,989
|
||||
Upholstery Fabrics
|
3,652
|
3,813
|
||||||
Total segment selling, general, and
|
||||||||
administrative expenses
|
6,948
|
6,802
|
||||||
Unallocated corporate expenses
|
2,654
|
2,631
|
||||||
$
|
9,602
|
$
|
9,433
|
|||||
Income from operations:
|
||||||||
Mattress Fabrics
|
$
|
7,460
|
$
|
6,467
|
||||
Upholstery Fabrics
|
2,493
|
2,464
|
||||||
Total segment income from operations
|
9,953
|
8,931
|
||||||
Unallocated corporate expenses
|
(2,654
|
)
|
(2,631
|
)
|
||||
Total income from operations
|
7,299
|
6,300
|
||||||
Interest income
|
15
|
69
|
||||||
Other expense
|
(155
|
)
|
(225
|
)
|
||||
Income before income taxes
|
$
|
7,159
|
$
|
6,144
|
Six months ended | ||||||||
(dollars in thousands)
|
October 30, 2016
|
November 1, 2015
|
||||||
Net sales:
|
||||||||
Mattress Fabrics
|
$
|
96,057
|
$
|
93,245
|
||||
Upholstery Fabrics
|
59,969
|
63,896
|
||||||
$
|
156,026
|
$
|
157,141
|
|||||
Gross profit:
|
||||||||
Mattress Fabrics
|
$
|
22,657
|
$
|
19,381
|
||||
Upholstery Fabrics
|
12,664
|
12,554
|
||||||
$
|
35,321
|
$
|
31,935
|
|||||
Selling, general, and administrative expenses:
|
||||||||
Mattress Fabrics
|
$
|
6,795
|
$
|
5,912
|
||||
Upholstery Fabrics
|
7,185
|
7,409
|
||||||
Total segment selling, general, and
|
||||||||
administrative expenses
|
13,980
|
13,321
|
||||||
Unallocated corporate expenses
|
5,368
|
4,854
|
||||||
$
|
19,348
|
$
|
18,175
|
|||||
Income from operations:
|
||||||||
Mattress Fabrics
|
$
|
15,862
|
$
|
13,468
|
||||
Upholstery Fabrics
|
5,479
|
5,146
|
||||||
Total segment income from operations
|
21,341
|
18,614
|
||||||
Unallocated corporate expenses
|
(5,368
|
)
|
(4,854
|
)
|
||||
Total income from operations
|
15,973
|
13,760
|
||||||
Interest income
|
40
|
112
|
||||||
Other expense
|
(307
|
)
|
(320
|
)
|
||||
Income before income taxes
|
$
|
15,706
|
$
|
13,552
|
(dollars in thousands)
|
October 30, 2016 | November 1, 2015 | May 1, 2016 | |||||||||
Segment assets:
|
||||||||||||
Mattress Fabrics
|
||||||||||||
Current assets (1)
|
$
|
38,062
|
$
|
40,937
|
$
|
43,472
|
||||||
Non-compete agreement
|
866
|
941
|
903
|
|||||||||
Customer relationships
|
689
|
740
|
715
|
|||||||||
Goodwill
|
11,462
|
11,462
|
11,462
|
|||||||||
Property, plant and equipment (2)
|
43,228
|
36,050
|
37,480
|
|||||||||
Total mattress fabrics assets
|
94,307
|
90,130
|
94,032
|
|||||||||
Upholstery Fabrics
|
||||||||||||
Current assets (1)
|
26,931
|
28,856
|
26,540
|
|||||||||
Property, plant and equipment (3)
|
1,480
|
1,474
|
1,564
|
|||||||||
Total upholstery fabrics assets
|
28,411
|
30,330
|
28,104
|
|||||||||
Total segment assets
|
122,718
|
120,460
|
122,136
|
|||||||||
Non-segment assets:
|
||||||||||||
Cash and cash equivalents
|
13,910
|
31,176
|
37,787
|
|||||||||
Short-term investments
|
2,430
|
6,320
|
4,359
|
|||||||||
Deferred income taxes
|
581
|
3,415
|
2,319
|
|||||||||
Income taxes receivable
|
-
|
75
|
155
|
|||||||||
Other current assets
|
1,675
|
2,614
|
2,477
|
|||||||||
Property, plant and equipment (4)
|
829
|
795
|
929
|
|||||||||
Long-term investments (Held-to-Maturity)
|
31,050
|
-
|
-
|
|||||||||
Long-term investments (Rabbi Trust)
|
4,994
|
3,279
|
4,025
|
|||||||||
Other assets
|
940
|
813
|
955
|
|||||||||
Total assets
|
$
|
179,127
|
$
|
168,947
|
$
|
175,142
|
Six months ended
|
||||||||
(dollars in thousands)
|
October 30, 2016
|
November 1, 2015
|
||||||
Capital expenditures (5):
|
||||||||
Mattress Fabrics
|
$
|
8,857
|
$
|
5,138
|
||||
Upholstery Fabrics
|
165
|
254
|
||||||
Unallocated Corporate
|
62
|
143
|
||||||
Total capital expenditures
|
$
|
9,084
|
$
|
5,535
|
||||
Depreciation expense:
|
||||||||
Mattress Fabrics
|
$
|
3,101
|
$
|
2,783
|
||||
Upholstery Fabrics
|
410
|
401
|
||||||
Total depreciation expense
|
$
|
3,511
|
$
|
3,184
|
(1)
|
Current assets represent accounts receivable and inventory for the respective segment.
|
(2)
|
The $43.2 million at October 30, 2016, represents property, plant, and equipment of $28.5 million and $14.7 million located in the U.S. and Canada, respectively. The $36.1 million at November 1, 2015, represents property, plant, and equipment of $23.3 million and $12.8 million located in the U.S. and Canada, respectively. The $37.5 million at May 1, 2016, represents property, plant, and equipment of $24.8 million and $12.7 million located in the U.S. and Canada, respectively.
|
(3)
|
The $1.5 million at October 30, 2016, represents property, plant, and equipment of $890 and $590 located in the U.S. and China, respectively. The $1.5 million at November 1, 2015, represents property, plant, and equipment of $785 and $689 located in the U.S. and China, respectively. The $1.6 million at May 1, 2016, represents property, plant, and equipment of $893 and $671 located in the U.S. and China, respectively.
|
(4)
|
The $829, $795, and $929 at October 30, 2016, November 1, 2015 and May 1, 2016, respectively, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress and upholstery fabric segments. Property, plant, and equipment associated with corporate are located in the U.S.
|
(5)
|
Capital expenditure amounts are stated on the accrual basis. See Consolidated Statements of Cash Flows for capital expenditure amounts on a cash basis.
|
2017
|
2016
|
|||||||
federal income tax rate
|
34.0
|
%
|
34.0
|
%
|
||||
U.S state income tax expense
|
0.6
|
0.7
|
||||||
tax effects of Chinese foreign exchange gains
|
1.6
|
2.3
|
||||||
increase in liability for uncertain tax positions
|
0.3
|
0.3
|
||||||
other
|
1.2
|
0.2
|
||||||
37.7
|
%
|
37.5
|
%
|
|||||
Three Months Ended
|
||||||||||||
(dollars in thousands)
|
October 30, 2016
|
November 1, 2015
|
Change
|
|||||||||
Net sales
|
$
|
75,343
|
$
|
76,956
|
(2.1)%
|
|
||||||
Gross profit
|
16,901
|
15,733
|
7.4%
|
|
||||||||
Gross profit margin
|
22.4
|
%
|
20.4
|
%
|
200bp
|
|
||||||
SG&A expenses
|
9,602
|
9,433
|
1.8%
|
|
||||||||
Income from operations
|
7,299
|
6,300
|
15.9%
|
|
||||||||
Operating margin
|
9.7
|
%
|
8.2
|
%
|
150bp
|
|
||||||
Income before income taxes
|
7,159
|
6,144
|
16.5%
|
|
||||||||
Income taxes
|
2,684
|
2,373
|
13.1%
|
|
||||||||
Net income
|
4,475
|
3,771
|
18.7%
|
|
Six Months Ended
|
||||||||||||
(dollars in thousands)
|
October 30, 2016
|
November 1, 2015
|
Change
|
|||||||||
Net sales
|
$
|
156,026
|
$
|
157,141
|
(0.7)%
|
|
||||||
Gross profit
|
35,321
|
31,935
|
10.6%
|
|
||||||||
Gross profit margin
|
22.6
|
%
|
20.3
|
%
|
230bp
|
|
||||||
SG&A expenses
|
19,348
|
18,175
|
6.5%
|
|
||||||||
Income from operations
|
15,973
|
13,760
|
16.1%
|
|
||||||||
Operating margin
|
10.2
|
%
|
8.8
|
%
|
140bp
|
|
||||||
Income before income taxes
|
15,706
|
13,552
|
15.9%
|
|
||||||||
Income taxes
|
5,917
|
5,081
|
16.5%
|
|
||||||||
Net income
|
9,789
|
8,471
|
15.6%
|
|
Three Months Ended
|
||||||||||||
(dollars in thousands)
|
October 30, 2016
|
November 1, 2015
|
Change
|
|||||||||
Net sales
|
$
|
45,527
|
$
|
45,346
|
0.2%
|
|
||||||
Gross profit
|
10,756
|
9,456
|
13.7%
|
|
||||||||
Gross profit margin
|
23.6
|
%
|
20.8
|
%
|
280bp
|
|
||||||
SG&A expenses
|
3,296
|
2,989
|
10.3%
|
|
||||||||
Income from operations
|
7,460
|
6,467
|
15.4%
|
|
||||||||
Operating margin
|
16.4
|
%
|
14.2
|
%
|
220bp
|
|
Six Months Ended
|
||||||||||||
(dollars in thousands)
|
October 30, 2016
|
November 1, 2015
|
Change
|
|||||||||
Net sales
|
$
|
96,057
|
$
|
93,245
|
3.0%
|
|
||||||
Gross profit
|
22,657
|
19,381
|
16.9%
|
|
||||||||
Gross profit margin
|
23.6
|
%
|
20.8
|
%
|
280bp
|
|
||||||
SG&A expenses
|
6,795
|
5,912
|
14.9%
|
|
||||||||
Income from operations
|
15,862
|
13,468
|
17.8%
|
|
||||||||
Operating margin
|
16.5
|
%
|
14.4
|
%
|
210bp
|
|
(dollars in thousands)
|
October 30, 2016
|
November 1, 2015
|
May 1, 2016
|
|||||||||
Accounts receivable and inventory
|
$
|
38,062
|
$
|
40,937
|
$
|
43,472
|
||||||
Property, plant & equipment
|
43,228
|
36,050
|
37,480
|
|||||||||
Goodwill
|
11,462
|
11,462
|
11,462
|
|||||||||
Non-compete agreement
|
866
|
941
|
903
|
|||||||||
Customer Relationships
|
689
|
740
|
715
|
Three Months Ended
|
||||||||||||||||||||
(dollars in thousands)
|
October 30,
2016
|
November 1,
2015
|
% Change
|
|||||||||||||||||
Non U.S. Produced
|
$
|
27,738
|
93
|
%
|
$
|
28,568
|
91
|
%
|
(2.9
|
)%
|
||||||||||
U.S. Produced
|
2,078
|
7
|
%
|
2,952
|
9
|
%
|
(29.6
|
)%
|
||||||||||||
Total
|
$
|
29,816
|
100
|
%
|
$
|
31,520
|
100
|
%
|
(5.4
|
)%
|
Six Months Ended
|
||||||||||||||||||||
(dollars in thousands)
|
October 30,
2016
|
November 1,
2015
|
% Change
|
|||||||||||||||||
Non U.S. Produced
|
$
|
55,583
|
93
|
%
|
$
|
58,522
|
92
|
%
|
(5.0
|
)%
|
||||||||||
U.S. Produced
|
4,386
|
7
|
%
|
5,374
|
8
|
%
|
(18.4
|
)%
|
||||||||||||
Total
|
$
|
59,969
|
100
|
%
|
$
|
63,896
|
100
|
%
|
(6.1
|
)%
|
Three Months Ended
|
||||||||||||
(dollars in thousands)
|
October 30, 2016
|
November 1, 2015
|
Change
|
|||||||||
Gross profit
|
$
|
6,145
|
$
|
6,277
|
(2.1
|
)%
|
||||||
Gross profit margin
|
20.6
|
%
|
19.9
|
%
|
70
|
bp
|
||||||
SG&A expenses
|
3,652
|
3,813
|
(4.2
|
)%
|
||||||||
Income from operations
|
2,493
|
2,464
|
1.2
|
%
|
||||||||
Operating margin
|
8.4
|
%
|
7.8
|
%
|
60
|
bp
|
Six Months Ended
|
||||||||||||
(dollars in thousands)
|
October 30, 2016
|
November 1, 2015
|
Change
|
|||||||||
Gross profit
|
$
|
12,664
|
$
|
12,554
|
0.9
|
%
|
||||||
Gross profit margin
|
21.1
|
%
|
19.6
|
%
|
150
|
bp
|
||||||
SG&A expenses
|
7,185
|
7,409
|
(3.0
|
)%
|
||||||||
Income from operations
|
5,479
|
5,146
|
6.5
|
%
|
||||||||
Operating margin
|
9.1
|
%
|
8.1
|
%
|
100
|
bp
|
(dollars in thousands)
|
October 30, 2016
|
November 1, 2015
|
May 1, 2016
|
|||||||||
Accounts receivable and inventory
|
$
|
26,931
|
$
|
28,856
|
$
|
26,540
|
||||||
Property, plant & equipment
|
1,480
|
1,474
|
1,564
|
Three Months Ended
|
||||||||||||
(dollars in thousands)
|
October 30, 2016
|
November 1, 2015
|
% Change
|
|||||||||
SG&A expenses
|
$
|
9,602
|
$
|
9,433
|
1.8
|
%
|
||||||
Interest expense
|
-
|
-
|
-
|
|||||||||
Interest income
|
15
|
69
|
(78.3
|
)%
|
||||||||
Other expense
|
155
|
225
|
(31.1
|
)%
|
Six Months Ended
|
||||||||||||
(dollars in thousands)
|
October 30, 2016
|
November 1, 2015
|
% Change
|
|||||||||
SG&A expenses
|
$
|
19,348
|
$
|
18,175
|
6.5
|
%
|
||||||
Interest expense
|
-
|
-
|
-
|
|||||||||
Interest income
|
40
|
112
|
(64.3
|
)%
|
||||||||
Other expense
|
307
|
320
|
(4.1
|
)%
|
|
2017
|
2016
|
||||||
federal income tax rate
|
34.0
|
%
|
34.0
|
%
|
||||
U.S state income tax expense
|
0.6
|
0.7
|
||||||
tax effects of Chinese foreign exchange gains
|
1.6
|
2.3
|
||||||
increase in liability for uncertain tax positions
|
0.3
|
0.3
|
||||||
other
|
1.2
|
0.2
|
||||||
|
37.7
|
%
|
37.5
|
%
|
(dollars in thousands)
|
October 30,
2016
|
November 1,
2015
|
May 1,
2016
|
|||||||||
Cayman Islands
|
$
|
36,100
|
$
|
8,591
|
$
|
25,762
|
||||||
China
|
6,766
|
18,690
|
8,454
|
|||||||||
Canada
|
4,513
|
8,856
|
6,844
|
|||||||||
United States
|
11
|
1,359
|
1,086
|
|||||||||
|
$
|
47,390
|
$
|
37,496
|
$
|
42,146
|
Period
|
(a)
Total
Number of
Shares
Purchased
|
(b)
Average
Price Paid
per Share
|
(c)
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
|
(d)
Approximate
Dollar Value of
Shares that May
Yet Be Purchased
Under the Plans or
Programs (1)
|
August 1, 2016 to
September 4, 2016
|
-
|
-
|
-
|
$ 5,000,000
|
September 5, 2016 to
October 2, 2016
|
-
|
-
|
-
|
$ 5,000,000
|
October 3, 2016 to
October 30, 2016
|
-
|
-
|
-
|
$ 5,000,000
|
Total
|
-
|
-
|
-
|
$ 5,000,000
|
(1)
|
On June 15, 2016, we announced that our board of directors increased the authorization for us to acquire up to $5.0 million of our common stock.
|
3(i) |
Articles of Incorporation of the company, as amended, were filed as Exhibit 3(i) to the company’s Form 10-Q for the quarter ended July 28, 2002, filed September 11, 2002 (Commission File No. 001-12597), and incorporated herein by reference.
|
3 (ii) |
Restated and Amended Bylaws of the company, as amended November 12, 2007, were filed as Exhibit 3.1 to the company’s Form 8-K dated November 12, 2007 (Commission File No. 001-12597), and incorporated herein by reference.
|
10.1 |
Written description of non-employee director compensation.
|
31.1 |
Certification of Chief Executive Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
|
31.2 |
Certification of Chief Financial Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
|
32.1 |
Certification of Chief Executive Officer Pursuant to Section 906 of Sarbanes-Oxley Act of 2002.
|
32.2 |
Certification of Chief Financial Officer Pursuant to Section 906 of Sarbanes-Oxley Act of 2002.
|
101.INS |
XBRL Instance Document
|
101.SCH |
XBRL Taxonomy Extension Schema Document
|
101.CAL |
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.LAB |
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE |
XBRL Taxonomy Extension Presentation Linkbase Document
|
101.DEF |
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
CULP, INC.
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
|
|
Date: December 9, 2016
|
By:
|
/s/ Kenneth R. Bowling
|
|
|
|
Kenneth R. Bowling
|
|
|
|
Vice President and Chief Financial Officer
|
|
|
|
(Authorized to sign on behalf of the registrant
|
|
|
|
and also signing as principal financial officer)
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Thomas B. Gallagher, Jr.
|
|
|
|
Thomas B. Gallagher, Jr.
|
|
|
|
Corporate Controller
|
|
|
|
(Authorized to sign on behalf of the registrant
|
|
|
|
and also signing as principal accounting officer)
|
|
10.1 |
Written description of non-employee director compensation.
|
31.1 |
Certification of Chief Executive Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
|
31.2 |
Certification of Chief Financial Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002.
|
32.1 |
Certification of Chief Executive Officer Pursuant to Section 906 of Sarbanes-Oxley Act of 2002.
|
32.2 |
Certification of Chief Financial Officer Pursuant to Section 906 of Sarbanes-Oxley Act of 2002.
|
101.INS |
XBRL Instance Document
|
101.SCH |
XBRL Taxonomy Extension Schema Document
|
101.CAL |
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.LAB |
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE |
XBRL Taxonomy Extension Presentation Linkbase Document
|
101.DEF |
XBRL Taxonomy Extension Definition Linkbase Document
|
1.
|
I have reviewed this Form 10-Q of Culp, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Franklin N. Saxon
|
|
|
Franklin N. Saxon
|
|
|
President and Chief Executive Officer
|
|
|
(Principal Executive Officer)
|
|
Date: December 9, 2016
|
|
|
1.
|
I have reviewed this Form 10-Q of Culp, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ Kenneth R. Bowling
|
|
|
Kenneth R. Bowling
|
|
|
Vice President and Chief Financial Officer
|
|
|
(Principal Financial Officer)
|
|
Date: December 9, 2016
|
|
|
Document and Entity Information |
6 Months Ended |
---|---|
Oct. 30, 2016
shares
| |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Oct. 30, 2016 |
Document Fiscal Year Focus | 2017 |
Document Fiscal Period Focus | Q2 |
Trading Symbol | CFI |
Entity Registrant Name | CULP INC |
Entity Central Index Key | 0000723603 |
Current Fiscal Year End Date | --04-30 |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 12,311,756 |
CONSOLIDATED STATEMENTS OF NET INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Nov. 01, 2015 |
Oct. 30, 2016 |
Nov. 01, 2015 |
|
Income Statement [Abstract] | ||||
Net sales | $ 75,343 | $ 76,956 | $ 156,026 | $ 157,141 |
Cost of sales | 58,442 | 61,223 | 120,705 | 125,206 |
Gross profit | 16,901 | 15,733 | 35,321 | 31,935 |
Selling, general and administrative expenses | 9,602 | 9,433 | 19,348 | 18,175 |
Income from operations | 7,299 | 6,300 | 15,973 | 13,760 |
Interest income | (15) | (69) | (40) | (112) |
Other expense | 155 | 225 | 307 | 320 |
Income before income taxes | 7,159 | 6,144 | 15,706 | 13,552 |
Income taxes | 2,684 | 2,373 | 5,917 | 5,081 |
Net income | $ 4,475 | $ 3,771 | $ 9,789 | $ 8,471 |
Net income per share, basic | $ 0.36 | $ 0.31 | $ 0.80 | $ 0.69 |
Net income per share, diluted | $ 0.36 | $ 0.30 | $ 0.78 | $ 0.68 |
Average shares outstanding, basic | 12,308 | 12,343 | 12,297 | 12,310 |
Average shares outstanding, diluted | 12,507 | 12,484 | 12,495 | 12,481 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Nov. 01, 2015 |
Oct. 30, 2016 |
Nov. 01, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 4,475 | $ 3,771 | $ 9,789 | $ 8,471 |
Unrealized gains (losses) on investments | ||||
Unrealized holding gains (losses) on investments | 4 | (29) | 88 | (118) |
Reclassification adjustment for realized loss included in net income | 56 | 12 | 56 | |
Total other comprehensive income (loss) | 4 | 27 | 100 | (62) |
Comprehensive income | $ 4,479 | $ 3,798 | $ 9,889 | $ 8,409 |
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares |
Oct. 30, 2016 |
May 01, 2016 |
[1] | Nov. 01, 2015 |
||
---|---|---|---|---|---|---|
Statement of Financial Position [Abstract] | ||||||
Preferred stock, par value | $ 0.05 | $ 0.05 | $ 0.05 | |||
Preferred stock, authorized shares | 10,000,000 | 10,000,000 | 10,000,000 | |||
Common stock, par value | $ 0.05 | $ 0.05 | $ 0.05 | |||
Common stock, authorized shares | 40,000,000 | 40,000,000 | 40,000,000 | |||
Common stock, issued | 12,311,756 | 12,265,489 | 12,350,265 | |||
Common stock, outstanding | 12,311,756 | 12,265,489 | 12,350,265 | |||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands |
6 Months Ended | ||||
---|---|---|---|---|---|
Oct. 30, 2016 |
Nov. 01, 2015 |
||||
Cash flows from operating activities: | |||||
Net income | $ 9,789 | $ 8,471 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation | 3,511 | 3,184 | |||
Amortization of other assets | 80 | 86 | |||
Stock-based compensation | 1,657 | 1,339 | |||
Excess tax benefit related to stock-based compensation | (167) | (838) | |||
Deferred income taxes | 2,121 | 2,816 | |||
Realized loss on sale of short-term investments | 12 | 56 | |||
Loss (gain) on sale of equipment | 9 | (60) | |||
Foreign currency exchange gains | (53) | (13) | |||
Changes in assets and liabilities: | |||||
Accounts receivable | 4,142 | 4,892 | |||
Inventories | 219 | (4,135) | |||
Other current assets | 751 | (302) | |||
Other assets | 8 | ||||
Accounts payable - trade | (3,274) | (2,921) | |||
Accrued expenses and deferred compensation | (2,749) | (1,547) | |||
Income taxes | 554 | 168 | |||
Net cash provided by operating activities | 16,602 | 11,204 | |||
Cash flows from investing activities: | |||||
Capital expenditures | (6,308) | (5,255) | |||
Proceeds from the sale of equipment | 225 | ||||
Proceeds from the sale of short-term investments | 2,000 | 3,612 | |||
Purchase of short-term investments | (23) | (46) | |||
Purchase of long-term investments (Held-To-Maturity) | (31,050) | ||||
Purchase of long-term investments (Rabbi Trust) | (929) | (864) | |||
Net cash used in investing activities | (36,310) | (2,328) | |||
Cash flows from financing activities: | |||||
Proceeds from line of credit | 7,000 | ||||
Payments on line of credit | (7,000) | ||||
Payments on long-term debt | (2,200) | ||||
Excess tax benefit related to stock-based compensation | 167 | 838 | |||
Dividends paid | (4,307) | (6,417) | |||
Payments on debt issuance costs | (2) | (43) | |||
Proceeds from common stock issued | 11 | 126 | |||
Net cash used in financing activities | (4,131) | (7,696) | |||
Effect of exchange rate changes on cash and cash equivalents | (38) | 271 | |||
(Decrease) increase in cash and cash equivalents | (23,877) | 1,451 | |||
Cash and cash equivalents at beginning of period | 37,787 | [1] | 29,725 | ||
Cash and cash equivalents at end of period | $ 13,910 | $ 31,176 | |||
|
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands |
Total |
Common Stock |
Capital Contributed in Excess of Par Value |
Accumulated Earnings |
Accumulated Other Comprehensive Loss |
|||
---|---|---|---|---|---|---|---|---|
Balance at May. 03, 2015 | $ 119,427 | $ 611 | $ 43,159 | $ 75,752 | $ (95) | |||
Balance (in shares) at May. 03, 2015 | 12,219,121 | |||||||
Net income | 8,471 | |||||||
Unrealized gain (loss) on investments | (62) | |||||||
Balance at Nov. 01, 2015 | 122,975 | |||||||
Balance at May. 03, 2015 | 119,427 | $ 611 | 43,159 | 75,752 | (95) | |||
Balance (in shares) at May. 03, 2015 | 12,219,121 | |||||||
Net income | 16,935 | 16,935 | ||||||
Stock-based compensation | 2,742 | 2,742 | ||||||
Unrealized gain (loss) on investments | (49) | (49) | ||||||
Excess tax benefit related to stock based compensation | 841 | 841 | ||||||
Common stock repurchased | (2,397) | $ (5) | (2,392) | |||||
Common stock repurchased (in shares) | (100,776) | |||||||
Common stock issued in connection with performance based units (in shares) | 115,855 | |||||||
Common stock issued in connection with performance based units | $ 6 | (6) | ||||||
Fully vested common stock award | 3,000 | |||||||
Common stock issued in connection with exercise of stock options (in shares) | 54,500 | |||||||
Common stock issued in connection with exercise of stock options | 200 | $ 3 | 197 | |||||
Common stock surrendered for withholding taxes payable | (747) | $ (1) | (746) | |||||
Common stock surrendered for withholding taxes payable (in shares) | (26,211) | |||||||
Dividends paid | (8,140) | (8,140) | ||||||
Balance at May. 01, 2016 | [1] | 128,812 | $ 614 | 43,795 | 84,547 | (144) | ||
Balance (in shares) at May. 01, 2016 | [1] | 12,265,489 | ||||||
Net income | 9,789 | 9,789 | ||||||
Stock-based compensation | 1,657 | 1,657 | ||||||
Unrealized gain (loss) on investments | 100 | 100 | ||||||
Excess tax benefit related to stock based compensation | 167 | 167 | ||||||
Common stock issued in connection with performance based units (in shares) | 49,192 | |||||||
Common stock issued in connection with performance based units | $ 2 | (2) | ||||||
Fully vested common stock award | 4,800 | |||||||
Common stock issued in connection with exercise of stock options (in shares) | 2,000 | |||||||
Common stock issued in connection with exercise of stock options | 11 | 11 | ||||||
Common stock surrendered for withholding taxes payable | (280) | $ (1) | (279) | |||||
Common stock surrendered for withholding taxes payable (in shares) | (9,725) | |||||||
Dividends paid | (4,307) | (4,307) | ||||||
Balance at Oct. 30, 2016 | $ 135,949 | $ 615 | $ 45,349 | $ 90,029 | $ (44) | |||
Balance (in shares) at Oct. 30, 2016 | 12,311,756 | |||||||
|
Basis of Presentation |
6 Months Ended |
---|---|
Oct. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation |
1. Basis of Presentation
The accompanying unaudited consolidated financial statements of
Culp, Inc. and subsidiaries (the "company") include all
adjustments, which are, in the opinion of management, necessary for
fair presentation of the results of operations and financial
position. All of these adjustments are of a normal recurring
nature. Results of operations for interim periods may not be
indicative of future results. The unaudited consolidated
financial statements should be read in conjunction with the audited
consolidated financial statements, which are included in the
company's annual report on Form 10-K filed with the Securities and
Exchange Commission on July 15, 2016, for the fiscal year ended May
1, 2016.
The company's six months ended October 30, 2016, and November 1,
2015, represent 26 week periods, respectively.
|
Significant Accounting Policies |
6 Months Ended |
---|---|
Oct. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies |
2. Significant Accounting Policies
As of October 30, 2016, there were no changes in the nature of our
significant accounting policies or the application of those
policies from those reported in our annual report on Form 10-K for
the year ended May 1, 2016.
Recently Adopted Accounting Pronouncements
In November 2015, the FASB issued ASU No. 2015-17,
Balance Sheet Classification of Deferred Taxes, an amendment
to FASB ASC Topic 740, which simplifies the presentation of
deferred income taxes on an entity's classified balance sheet.
Currently, entities that are required to issue a classified balance
sheet present a net current and net noncurrent deferred income tax
asset or liability for each tax jurisdiction. The amendments in
this ASU require entities to offset all deferred income tax assets
and liabilities for each tax jurisdiction and present a net
deferred income tax asset or liability as a single noncurrent
amount. The recognition and measurement guidance for deferred
income tax assets and liabilities are not affected by this
amendment. This amended guidance is effective for fiscal years and
interim periods within those fiscal years, beginning after December
15, 2016. Early adoption is permitted and the standard may be
applied either retrospectively or on a prospective basis to all
deferred income tax assets and liabilities.
We early adopted this amendment during the third quarter of fiscal
2016 on a retrospective basis. Accordingly, we reclassified our
current deferred income taxes to noncurrent on our November 1, 2015
Consolidated Balance Sheet, which increased noncurrent deferred
income taxes $3.0 million and decreased noncurrent deferred tax
liabilities $4.7 million.
In June 2014, the Financial Accounting Standards Board ("FASB")
amended its authoritative guidance on accounting for certain
share-based payment awards. The amended guidance requires that
share-based compensation awards with terms of a performance target
that affects vesting, and that could be achieved after the
requisite service period, be treated as a performance condition. As
such, the performance target should not be reflected in estimating
the grant-date fair value of the award and compensation cost should
be recognized in the period in which it becomes probable that the
performance target will be achieved. The guidance will permit an
entity to apply the amendments in the update either (a)
prospectively to all awards granted or modified after the effective
date or (b) retrospectively to all awards with performance targets
that are outstanding as of the beginning of the earliest annual
period presented in the consolidated financial statements and to
all new or modified awards thereafter.
This guidance was effective for the first quarter of fiscal 2017
and did not have any impact on our consolidated financial
statements as we currently do not have any share-based payment
awards with terms of a performance target that affects vesting and
could be achieved after the requisite service period.
Recently Issued Accounting Pronouncements
In May 2014, the FASB issued ASU No. 2014-09, which amends ASC
Topic 606,
Revenue from Contracts with Customers. The amendments in
this ASU are intended to enhance the comparability of revenue
recognition practices and will be applied to all contracts with
customers. Improved disclosures related to the nature, amount,
timing, and uncertainty of revenue that is recognized are
requirements under the amended guidance. In April 2015, the FASB
issued ASU 2015-24,
Revenue from Contracts with Customers: Deferral of the Effective
Date which proposed a deferral of the effective date by one
year, and on July 7, 2015, the FASB decided to delay the effective
date by one year. The deferral results in the new revenue standard
being effective for fiscal years, and interim periods within those
fiscal years, beginning after December 15, 2017. We are therefore
required to apply the new revenue guidance in our fiscal 2019
interim and annual financial statements. This ASU can be adopted
either retrospectively or as a cumulative-effect adjustment as of
the date of adoption. We are currently assessing the impact that
this guidance will have on our consolidated financial
statements.
In July 2015, the FASB issued ASU No. 2015-11,
Simplifying the Measurement of Inventory, which changed the
measurement principle for inventory from the lower of cost or
market to lower of cost and net realizable value. This ASU is
effective for fiscal years and interim periods within those fiscal
years, beginning after December 15, 2016. We are therefore required
to apply this guidance in our fiscal 2018 interim and annual
financial statements. We are currently assessing the impact that
this guidance will have on our consolidated financial
statements.
In February 2016, the FASB issued ASU No. 2016-02,
Leases (Topic 842), which increases transparency and
comparability among companies accounting for lease transactions.
The most significant change of this update will require the
recognition of lease assets and liabilities on the balance sheet
for operating lease arrangements with lease terms greater than
twelve months for lessees. This update will require a modified
retrospective application which includes a number of optional
practical expedients related to the identification and
classification of leases commenced before the effective date. This
ASU is effective for fiscal years and interim periods within those
fiscal years, beginning after December 15, 2018. We are therefore
required to apply this guidance in our fiscal 2020 interim and
annual financial statements. We are currently assessing the impact
that this guidance will have on our consolidated financial
statements.
In March 2016, the FASB issued ASU No. 2016-09, "Compensation -
Stock Compensation (Topic 718): Improvements to Employee
Shares-Based Payment Accounting." ASU 2016-09 is intended to
improve the accounting for share-based payment transactions as part
of the FASB's simplification initiative. ASU 2016-09 changes
several aspects of the accounting for share-based payment award
transactions, including: (1) accounting for income taxes; (2)
classification of excess tax benefits on the statement of cash
flows; (3) forfeitures; (4) minimum statutory tax withholding
requirements; and (5) classification of employee taxes paid on the
statement of cash flows when an employer withholds shares for
tax-withholding purposes. ASU 2016-09 is effective for fiscal years
beginning after December 15, 2016, and interim periods within those
years for public companies. We are therefore required to apply this
guidance in our fiscal 2018 interim and annual financial
statements. We are currently assessing the impact that ASU 2016-09
will have on its consolidated financial statements.
In August 2016, the FASB issued ASU No. 2016-15,
Statement of Cash Flows (Topic 230): Classification of Certain Cash
Receipts and Cash Payments, to address the diversity in how
certain cash receipts and cash payments are presented in the
statement of cash flows. This new guidance provides clarity around
the cash flow classification for eight specific issues in an effort
to reduce the current and potential future diversity in practice.
This standard, which is to be applied retrospectively, will be
effective for the first interim period within annual reporting
periods beginning after December 15, 2017, and early adoption is
permitted. We are therefore required to apply this new guidance in
our fiscal 2019 interim and annual financial statements. We are
currently assessing the impact that this guidance will have on our
consolidated financial statements.
In October 2016, the FASB issued ASU No. 2016-16, Income Taxes
(Topic 740):
Intra-Entity Transfers of Assets Than Inventory, to reduce
the diversity in practice and complexity associated with accounting
for the income tax consequences of intra-entity transfers of assets
other than inventory. Current GAAP prohibits recognition of
deferred income taxes for an intra-entity transfer until the asset
has been sold to an outside party. The new pronouncement stipulates
that an entity should recognize the income tax consequences of an
intra-entity transfer of an asset other than inventory when the
transfer occurs. This new guidance will be effective for annual
reporting periods beginning after December 15, 2017, including
interim periods within those annual reporting periods, with early
adoption permitted in the first interim period only. We are
therefore required to apply this new guidance in our fiscal 2019
interim and annual financial statements. The amendments are to
applied on a modified retrospective basis through a
cumulative-effect adjustment directly to retained earnings as of
the beginning of the period of adoption. We are currently assessing
the impact that this guidance will have on our consolidated
financial statements.
There are no other new accounting pronouncements that are expected
to have a significant impact on our consolidated financial
statements.
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Stock-Based Compensation |
6 Months Ended |
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Oct. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation |
3. Stock-Based Compensation
Equity Incentive Plan Description
On September 16, 2015, our shareholders approved an equity
incentive plan entitled the Culp, Inc. 2015 Equity Incentive Plan
(the "2015 Plan"). The 2015 Plan updated and replaced our 2007
Equity Incentive Plan (the "2007 Plan") as the vehicle for granting
new equity based awards substantially similar to those authorized
under the 2007 Plan. In general, the 2015 Plan authorizes the grant
of stock options intended to qualify as incentive stock options,
nonqualified stock options, stock appreciation rights, restricted
stock, restricted stock units, performance units, and other equity
and cash related awards as determined by our Compensation
Committee. An aggregate of 1,200,000 shares of common stock were
authorized for issuance under the 2015 Plan, with certain
sub-limits that would apply with respect to specific types of
awards that may be issued as defined in the 2015 Plan. In
connection with the approval of the 2015 Plan, no further awards
will be granted under the 2007 Plan, but outstanding awards under
the 2007 Plan will be settled in accordance with their terms.
At October 30, 2016, there were 980,486 shares available for future
equity based grants under our 2015 plan.
Incentive Stock Option Awards
We did not grant any incentive stock option awards through the
second quarter of fiscal 2017.
At October 30, 2016, options to purchase 81,600 shares of common
stock were outstanding and exercisable, had a weighted average
exercise price of $8.44 per share, and a weighted average
contractual term of 0.8 years. At October 30, 2016, the aggregate
intrinsic value for options outstanding and exercisable was $1.6
million.
The aggregate intrinsic value for options exercised for the six
months ending October 30, 2016 and November 1, 2015, was $43,000
and $1.0 million, respectively.
At October 30, 2016, there were no unvested incentive stock option
awards. Therefore, there was no unrecognized compensation cost
related to incentive stock option awards at October 30, 2016.
No compensation expense was recorded for incentive stock options
for the six months ended October 30, 2016 and November 1, 2015,
respectively.
Common Stock Awards
On October 3, 2016, we granted a total of 4,800 shares of common
stock to our outside directors. These shares of common stock vest
immediately and were measured at $29.80 per share, which represents
the closing price of our common stock at the date of grant.
On October 1, 2015, we granted a total of 3,000 shares of common
stock to our outside directors. These shares of common stock vest
immediately and were measured at $31.77 per share, which represents
the closing price of our common stock at the date of grant.
We recorded $143,000 and $95,000 within selling, general, and
administrative expense for these common stock awards for the six
months ending October 30, 2016, and November 1, 2015,
respectively.
Performance Based Restricted Stock Units
Fiscal 2017 Grant
On July 14, 2016, certain key members of management were granted
performance-based restricted stock units which could earn up to
107,880 shares of common stock if certain performance targets are
met as defined in the related restricted stock unit agreements.
These awards were valued based on the fair market value on the date
of grant. The fair value of these awards was $28 per share, which
represents the closing price of our common stock on the date of
grant. The vesting of these awards is over the requisite service
period of three years.
On July 14, 2016, a non-employee was granted performance-based
restricted stock units which could earn up to 11,549 shares of
common stock if certain performance targets are met as defined in
the related restricted stock unit agreement. The fair value of this
award is measured at the earlier date of when the performance
criteria are met or the end of the reporting period. At October 30,
2016, this grant was unvested and was measured at $28.15 per share,
which represents the closing price of our common stock at the end
of the reporting period. The vesting of this award is over the
requisite service period of three years.
Fiscal 2016 Grant
On July 15, 2015, certain key members of management were granted
performance-based restricted stock units which could earn up to
107,554 shares of common stock if certain performance targets are
met as defined in the related restricted stock unit agreements.
These awards were valued based on the fair market value on the date
of grant. The fair value of these awards was $32.23 per share,
which represents the closing price of our common stock on the date
of grant. The vesting of these awards is over the requisite service
period of three years.
On July 15, 2015, a non-employee was granted performance-based
restricted stock units which could earn up to 10,364 shares of
common stock if certain performance targets are met as defined in
the related restricted stock unit agreement. The fair value of this
award is measured at the earlier date of when the performance
criteria are met or the end of the reporting period. At October 30,
2016, this grant was unvested and was measured at $28.15 per share,
which represents the closing price of our common stock at the end
of the reporting period. The vesting of this award is over the
requisite service period of three years.
Fiscal 2015 Grants
On June 24, 2014, certain key members of management were granted
performance-based restricted stock units which could earn up to
102,845 shares of common stock if certain performance targets are
met as defined in the related restricted stock unit agreements.
These awards were valued based on the fair market value on the date
of grant. The fair value of these awards was $17.70 per share,
which represents the closing price of our common stock on the date
of grant. The vesting of these awards is over the requisite service
period of three years.
On March 3, 2015, a non-employee was granted performance-based
restricted stock units which could earn up to 28,000 shares of
common stock if certain performance targets are met as defined in
the related restricted stock unit agreements. The fair value of
this award is measured at the earlier date of when the performance
criteria are met or the end of the reporting period. At October 30,
2016, 16,000 restricted stock units associated with this grant were
unvested and were measured at $28.15 per share, which represents
the closing price of the company's common stock at the end of the
reporting period. The vesting of these 16,000 restricted stock
units vest over their requisite service period of 28 months.
During the first quarter of fiscal 2017, 12,000 shares of common
stock associated with the grant vested and had a weighted average
fair value of $345,000 or $28.77 per share.
2014 Grant
On June 25, 2013, certain key members of management were granted
performance-based restricted stock units which could earn up to
72,380 shares of common stock if certain performance targets are
met as defined in the related restricted stock unit agreements.
These awards were valued based on the fair market value on the date
of grant. The fair value of these awards was $17.12 per share,
which represents the closing price of our common stock on the date
of grant. The vesting of these awards is over the requisite service
period of three years.
During the first quarter of fiscal 2017, 37,192 shares of common stock associated with this grant vested and had a weighted average fair value of $637,000 or $17.12 per share. Our fiscal 2014 grant is fully vested.
Fiscal 2013 Grant
On July 11, 2012, certain key members of management were granted
performance based restricted stock units which could earn up to
120,000 shares of common stock if certain performance targets are
met as defined in the related restricted stock unit agreements.
These awards were valued based on the fair market value on the date
of grant. The fair value of these awards was $10.21 per share,
which represents the closing price of our common stock on the date
of grant. The vesting of these awards is over the requisite service
period of three years.
During the first quarter of fiscal 2016, 115,855 shares of common
stock associated with our fiscal 2013 grant vested and had a
weighted average fair value of $1.2 million or $10.21 per share.
Our fiscal 2013 grant is fully vested.
Overall
We recorded compensation expense of $1.5 million and $1.2 million
within selling, general, and administrative expense for our
performance based restricted stock unit awards for the six month
periods ending October 30, 2016 and November 1, 2015, respectively.
Compensation cost is recorded based on an assessment each reporting
period of the probability if certain performance goals will be met
during the vesting period. If performance goals are not probable of
occurrence, no compensation cost will be recognized and any
recognized compensation cost would be reversed.
As of October 30, 2016, the remaining unrecognized compensation
cost related to our performance based restricted stock unit awards
was $5.0 million, which is expected to be recognized over a
weighted average vesting period of 2.0 years.
Time Vested Restricted Stock Units
On July 14, 2016, an employee was granted 1,200 shares of time
vested restricted stock units. This award was valued based on the
fair market value on the date of grant. The fair value of this
award was $28 per share, which represents the closing price of our
common stock on the date of grant. The vesting of this award is
over the requisite service period of 11 months.
We recorded compensation expense of $11,000 within selling,
general, and administrative expense for our time vested restricted
stock unit awards for the six months ending October 30, 2016. There
were not any time vested restricted stock unit awards granted or
unvested during the six months ending November 1, 2015 and,
therefore, no compensation expense was recorded.
At October 30, 2016, the remaining unrecognized compensation cost
related to unvested time vested restricted stock awards was
$23,000, which is expected to be recognized over the next 7.5
months.
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Accounts Receivable |
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Accounts Receivable |
4. Accounts Receivable
A summary of accounts receivable follows:
A summary of the activity in the allowance for doubtful accounts
follows:
A summary of the activity in the allowance for returns and allowances and discounts accounts follows:
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Inventories |
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Inventories |
5. Inventories
Inventories are carried at the lower of cost or market. Cost
is determined using the FIFO (first-in, first-out) method.
A summary of inventories follows:
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Other Assets |
6. Other Assets
A summary of other assets follows:
Non-Compete Agreement
We recorded our non-compete agreement at its fair value based on a
discounted cash flow valuation model. Our non-compete agreement is
amortized on a straight-line basis over the fifteen year life of
the respective agreement.
The gross carrying amount of our non-compete agreement was $2.0
million at October 30, 2016, November 1, 2015 and May 1, 2016,
respectively. At October 30, 2016, November 1, 2015, and May 1,
2016, accumulated amortization for our non-compete agreement was
$1.2 million, $1.1 million, and $1.1 million, respectively.
Amortization expense for our non-compete agreement was $38,000 for
the six month periods ended October 30, 2016 and November 1, 2015.
The remaining amortization expense for the next five fiscal years
and thereafter follows: FY 2017 - $37,000; FY 2018 - $75,000; FY
2019- $75,000; FY 2020 - $75,000; FY 2021 - $75,000 and Thereafter
- $529,000.
The weighted average amortization period for our non-compete
agreement is 11.5 years as of October 30, 2016.
Customer Relationships
We recorded our customer relationships at their fair value based on
a multi-period excess earnings valuation model. Our customer
relationships are amortized on a straight-line basis over its
seventeen year useful life.
The gross carrying amount of our customer relationships was
$868,000 at October 30, 2016, November 1, 2015, and May 1, 2016,
respectively. Accumulated amortization for our customer
relationships was $179,000, $128,000, and $153,000 at October 30,
2016, November 1, 2015, and May 1, 2016, respectively.
Amortization expense for our customer relationships was $26,000 for
the six months ending October 30, 2016 and November 1, 2015. The
remaining amortization expense for the next five fiscal years and
thereafter follows: FY 2017 - $25,000; FY 2018 - $51,000; FY 2019 -
$51,000; FY 2020 - $51,000; FY 2021 - $51,000; and Thereafter -
$460,000.
The weighted average amortization period for our customer
relationships is 13.5 years as of October 30, 2016.
Cash Surrender Value – Life Insurance
At October 30, 2016, November 1, 2015, and May 1, 2016 we had one
life insurance contract with a death benefit of $1.4 million.
Our cash surrender value – life insurance balances totaling
$358,000, $339,000 and $357,000 at October 30, 2016, November 1,
2015, and May 1, 2016, respectively, are collectible upon death of
the respective insured.
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Accrued Expenses |
7. Accrued Expenses
A summary of accrued expenses follows:
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Lines of Credit |
6 Months Ended |
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Oct. 30, 2016 | |
Debt Disclosure [Abstract] | |
Lines of Credit |
8. Lines of Credit
Revolving Credit Agreement – United States
Our Credit Agreement with Wells Fargo Bank, N.A. ("Wells Fargo")
provides a revolving loan commitment of $30 million. Interest was
charged at a rate (applicable interest rate of 1.98% at October 30,
2016) as a variable spread over LIBOR based on our ratio of debt to
EBITDA. The Credit Agreement contains certain financial and other
covenants as defined in the agreement and is set to expire on
August 15, 2018.
The purpose of our revolving credit line is to support potential
short term cash needs in different jurisdictions within our global
operations, mitigate our risk associated with foreign currency
exchange rate fluctuations, and ultimately repatriate earnings and
profits from our foreign subsidiaries to the U.S. for various
strategic purposes.
Outstanding borrowings are secured by a pledge of 65% of the common
stock of Culp International Holdings Ltd. (our subsidiary located
in the Cayman Islands), as required by the Credit Agreement. There
were no borrowings outstanding under the Credit Agreement at
October 30, 2016, November 1, 2015, and May 1, 2016,
respectively.
At October 30, 2016, November 1, 2015, and May 1, 2016, there were
$250,000 in outstanding letters of credit (all of which related to
workers compensation) provided by the Credit Agreement.
Effective August 1, 2016, we entered into a Third Amendment to our
Credit Agreement that will allow us to issue letters of credit not
to exceed $7.5 million. On August 3, 2016, we issued a $5.0 million
letter of credit (all of which is currently outstanding and in
addition to the $250,000 letter of credit noted above) for the
construction of a new building associated with our mattress fabrics
segment (see Note 15 for further details). This $5.0 million letter
of credit will be automatically reduced in increments of $1.25
million on August 1, 2017, November 1, 2017, February 1, 2018, and
May 15, 2018, respectively.
Revolving Credit Agreement – China
We have an unsecured credit agreement associated with our
operations in China that provides for a line of credit of up to 40
million Chinese Yuan Renminbi (approximately $5.9 million USD at
October 30, 2016), that expires on March 8, 2017. This agreement
has an interest rate determined by the Chinese government and there
were no borrowings outstanding as of October 30, 2016, November 1,
2015, and May 1, 2016.
Overall
Our loan agreements require, among other things, that we maintain
compliance with certain financial covenants. At October 30, 2016,
the company was in compliance with these financial covenants.
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments |
9. Fair Value of Financial Instruments
ASC Topic 820 establishes a fair value hierarchy that distinguishes
between assumptions based on market data (observable inputs) and
the company's assumptions (unobservable inputs). Determining where
an asset or liability falls within that hierarchy depends on the
lowest level input that is significant to the fair value
measurement as a whole. An adjustment to the pricing method used
within either level 1 or level 2 inputs could generate a fair value
measurement that effectively falls in a lower level in the
hierarchy. The hierarchy consists of three broad levels as
follows:
Level 1 – Quoted market prices in active markets for
identical assets or liabilities;
Level 2 – Inputs other than level 1 inputs that are either
directly or indirectly observable, and
Level 3 – Unobservable inputs developed using the company's
estimates and assumptions, which reflect those that market
participants would use.
Recurring Basis
The following table presents information about assets measured at
fair value on a recurring basis:
The determination of where an asset or liability falls in the
hierarchy requires significant judgment. We evaluate our hierarchy
disclosures each quarter based on various factors and it is
possible that an asset or liability may be classified differently
from quarter to quarter. However, we expect that changes in
classifications between different levels will be rare.
Short-Term Investments
At October 30, 2016, November 1, 2015, and May 1, 2016, our
short-term investments totaled $2.4 million, $6.3 million, and $4.4
million, respectively, and consisted of short-term bond funds. Our
short-term bond funds are recorded at their fair value, are
classified as available-for-sale, and their unrealized gains or
losses are included in other comprehensive income (loss). Our
short-term bond investments had an accumulated unrealized loss
totaling $45,000, $171,000, and $100,000 at October 30, 2016,
November 1, 2015, and May 1, 2016, respectively. At October 30,
2016, November 1, 2015, and May 1, 2016, the fair value of our
short-term bond funds approximated its cost basis.
Long- Term Investments - Held-To-Maturity
During the second quarter of fiscal 2017, management decided to
invest approximately $31.0 million in investment grade U.S.
Corporate bonds with maturities primarily ranging from 2 to 2.5
years. The purpose of this investment was to earn a higher rate of
return on our excess cash located in the Cayman Islands. These
investments are classified as held-to-maturity as we have the
positive intent and ability to hold these investments until
maturity. Our held-to-maturity investments will be recorded as
either current or noncurrent on the Consolidated Balance Sheet,
based on contractual maturity date and stated at amortized
cost.
At October 30, 2016, our held-to-maturity investments totaling
$31.0 million consisted of invested cash and cash equivalents of
$23.9 million and U.S. Corporate bonds of $7.1 million. The $23.9
million in invested cash and cash equivalents were used to purchase
U.S. Corporate bonds during our third quarter of fiscal 2017 (all
U.S. Corporate bond purchases were completed by November 3, 2016).
The fair value of our held-to-maturity investments
approximates their cost basis.
Long-Term Investments - Rabbi Trust
Effective January 1, 2014, we established a Rabbi Trust to set
aside funds for participants of our deferred compensation plan (the
"Plan") and enable the participants to credit their contributions
to various investment options of the Plan. The investments
associated with the Rabbi Trust consist of a money market fund and
various mutual funds that are classified as available for
sale.
Our long-term investments are recorded at their fair value of $5.0
million, $3.3 million, and $4.0 million at October 30, 2016,
November 1, 2015, and May 1, 2016, respectively. Our long-term
investments had an accumulated unrealized gain of $1,000 and
$14,000 at October 1, 2016 and November 1, 2015, respectively, and
an accumulated realized loss of $44,000 at May 1, 2016. The fair
value of our long-term investments associated with our Rabbi Trust
approximates its cost basis.
Other
The carrying amount of cash and cash equivalents, accounts
receivable, other current assets, accounts payable, and accrued
expenses approximates fair value because of the short maturity of
these financial instruments.
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Cash Flow Information |
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Oct. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Cash Flow Information |
10. Cash Flow Information
Interest and income taxes paid are as follows:
Interest costs charged to operations were $45,000 and $49,000 for
the six months ended October 30, 2016 and November 1, 2015,
respectively.
Interest costs of $45,000 and $49,000 for the construction of
qualifying fixed assets were capitalized and will be amortized over
the related assets' useful lives for the six months ended October
30, 2016 and November 1, 2015, respectively.
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Net Income Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share |
11.
Net Income Per Share
Basic net income per share is computed using the weighted-average
number of shares outstanding during the period. Diluted net
income per share uses the weighted-average number of shares
outstanding during the period plus the dilutive effect of
stock-based compensation calculated using the treasury stock
method. Weighted average shares used in the computation of
basic and diluted net income per share follows:
All options to purchase shares of common stock were included in the
computation of diluted net income for the three months ended
October 30, 2016 and November 1, 2015, as the exercise price of the
options was less than the average market price of the common
shares.
All options to purchase shares of common stock were included in the
computation of diluted net income for the six months ended October
30, 2016 and November 1, 2015, as the exercise price of the options
was less than the average market price of the common shares.
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information |
12. Segment Information
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 to
bedding manufacturers. The upholstery fabrics segment
sources, manufactures, and sells fabrics primarily to residential
furniture manufacturers.
We evaluate the operating performance of our segments based upon
income from operations before certain unallocated corporate
expenses and other non-recurring items. Cost of sales in both
segments include costs to manufacture or source our products,
including costs such as raw material and finished goods purchases,
direct and indirect labor, overhead and incoming freight
charges. Unallocated corporate expenses primarily represent
compensation and benefits for certain executive officers, all costs
related to being a public company, and other miscellaneous
expenses. Segment assets include assets used in the
operations of each segment and primarily consist of accounts
receivable, inventories, and property, plant and equipment.
The mattress fabrics segment also includes in segment assets,
goodwill, a non-compete agreement, and customer relationships
associated with an acquisition.
Financial information for the company’s operating segments
follows:
Balance sheet information for the company’s operating
segments follows:
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes |
13. Income Taxes
Effective Income Tax Rate
We recorded income tax expense of $5.9 million, or 37.7% of income
before income taxes, for the six month period ended October 30,
2016, compared to income tax expense of $5.1 million, or 37.5% of
income before income taxes, for the six month period ended November
1, 2015. Our effective income tax rates for the six month periods
ended October 30, 2016, and November 1, 2015, were based upon the
estimated effective income tax rate applicable for the full year
after giving effect to any significant items related specifically
to interim periods. The effective income tax rate can be affected
over the fiscal year by the mix and timing of actual earnings from
our U.S. operations and foreign sources versus annual projections
and changes in foreign currency exchange rates in relation to the
U.S. dollar.
The following schedule summarizes the factors that are attributable
to the difference between income tax expense at the federal income
tax rate and the effective income tax rate reflected in the
consolidated financial statements:
Deferred Income Taxes
Valuation Allowance
In accordance with ASC Topic 740, we evaluate our deferred income
taxes to determine if a valuation allowance is required. ASC Topic
740 requires that companies assess whether a valuation allowance
should be established based on the consideration of all available
evidence using a "more-likely-than-not" standard, with significant
weight being given to evidence that can be objectively verified.
Since the company operates in multiple jurisdictions, we assess the
need for a valuation allowance on a jurisdiction-by-jurisdiction
basis, taking into account the effects of local tax law. Based on
our assessment at October 30, 2016, we recorded a partial valuation
allowance of $603,000, of which $519,000 pertained to certain U.S.
state net operating loss carryforwards and credits and $84,000
pertained to loss carryfowards associated with our Culp Europe
operation located in Poland. Based on our assessment at
November 1, 2015, we recorded a partial valuation allowance of
$938,000, of which $561,000 pertained to certain U.S. state net
operating loss carryforwards and credits and $377,000 pertained to
loss carryfowards associated with our Culp Europe operation located
in Poland. Based on our assessment at May 1, 2016, we
recorded a partial valuation allowance of $590,000, of which
$518,000 pertained to certain U.S. state net operating loss
carryforwards and credits and $72,000 pertained to loss
carryfowards associated with our Culp Europe operation located in
Poland.
No valuation allowance was recorded against our net deferred tax
assets associated with our operations located in China and Canada
at October 30, 2016, November 1, 2015, and May 1, 2016,
respectively.
The recorded valuation allowance of $603,000 at October 30, 2016,
has no effect on our operations, loan covenant compliance, or the
possible realization of certain U.S. state net operating loss
carryforwards and credits and our loss carryforwards associated
with our Culp Europe operation located in Poland. If it is
determined that it is more-likely-than-not that we will realize any
of these deferred tax assets, an income tax benefit will be
recognized at that time.
Undistributed Earnings
In accordance with ASC Topic 740, we assess whether the
undistributed earnings from our foreign subsidiaries will be
reinvested indefinitely or eventually distributed to our U.S.
parent company. ASC Topic 740 requires that a deferred tax
liability should be recorded for undistributed earnings from
foreign subsidiaries that will not be reinvested indefinitely.
Based on our assessment as of October 30, 2016, it is our intention
not to permanently invest our undistributed earnings from our
foreign subsidiaries. Also, we assess the recognition of U.S.
foreign income tax credits associated with foreign withholding and
income tax payments and whether it is more-likely-than-not that our
foreign income tax credits will not be realized. If it is
determined that any foreign income tax credits need to be
recognized or it is more-likely-than-not our foreign income tax
credits will not be realized, an adjustment to our provision for
income taxes will be recognized at that time.
At October 30, 2016, we had accumulated earnings and profits from
our foreign subsidiaries totaling $138.9 million. At the same date,
the deferred tax liability associated with our undistributed
earnings from our foreign subsidiaries totaled $657,000, which
included U.S. income and foreign withholding taxes totaling $41.4
million, offset by U.S. foreign income tax credits of $40.7
million.
At November 1, 2015, we had accumulated earnings and profits from
our foreign subsidiaries totaling $93.2 million. At the same date,
the deferred tax liability associated with our undistributed
earnings from our foreign subsidiaries totaled $2.4 million, which
included U.S. income and foreign withholding taxes totaling $35.7
million, offset by U.S. foreign income tax credits of $33.3
million.
At May 1, 2016, we had accumulated earnings and profits from our
foreign subsidiaries totaling $129.6 million. At the same date, the
deferred tax liability associated with our undistributed earnings
from our foreign subsidiaries totaled $604,000, which included U.S.
income and foreign withholding taxes totaling $38.5 million, offset
by U.S. foreign income tax credits of $37.9 million.
Overall
At October 30, 2016, our non-current deferred tax asset of $581,000
represents $109,000 and $472,000 from our operations located in the
U.S. and China, respectively. At November 1, 2015, our non-current
deferred tax asset of $3.4 million represents $2.5 million and
$898,000 from our operations located in the U.S. and China,
respectively. At May 1, 2016, our non-current deferred tax asset of
$2.3 million represents $1.7 million and $572,000 from our
operations located in the U.S. and China, respectively.
Our non-current deferred tax liability balances of $1.7 million,
$1.2 million, and $1.5 million at October 30, 2016, November 1,
2015, and May 1, 2016, respectively, pertain to our operations
located in Canada.
Uncertainty In Income Taxes
At October 30, 2016, we had a $15.1 million total gross
unrecognized income tax benefit, of which $11.4 million and $3.7
million were classified as non-current deferred income taxes and
income taxes payable – long-term, respectively, in the
accompanying consolidated balance sheets. At November 1, 2015, we
had a $14.2 million total gross unrecognized income tax benefit, of
which $10.5 million and $3.7 million were classified as non-current
deferred income taxes and income taxes payable – long-term,
respectively, in the accompanying consolidated balance sheets. At
May 1, 2016, we had $14.9 million of total gross unrecognized
income tax benefit, of which $11.1 million and $3.8 million were
classified as non-current deferred income taxes and income taxes
payable – long-term, respectively, in the accompanying
consolidated balance sheets.
At October 30, 2016, our $15.1 million total gross unrecognized
income tax benefit included $3.7 million that, if recognized, would
favorably affect the income tax rate in future periods. At November
1, 2015, our $14.2 million total gross unrecognized income tax
benefit, included $3.7 million that, if recognized, would favorably
affect the income tax rate in future periods. At May 1, 2016, our
$14.9 million total gross unrecognized income tax benefit included
$3.8 million that, if recognized, would favorably affect the income
tax rate in future periods.
Our gross unrecognized income tax benefit of $15.1 million at
October 30, 2016, relates to tax positions for which
significant change is reasonably possible in fiscal 2017. This
amount primarily relates to double taxation under applicable income
tax treaties with foreign tax jurisdictions. United States federal
and state income tax returns filed by us remain subject to
examination for income tax years 2005 and subsequent due to loss
carryforwards. Canadian federal returns remain subject to
examination for income tax years 2009 and subsequent, with the
statute of limitations for the 2009 income tax year expiring in
January 2017. Canadian provincial (Quebec) returns remain
subject to examination for income tax years 2009 and subsequent,
with the statute of limitations for the 2009 income tax year
expiring in April 2017. Income tax returns associated with our
operations located in China are subject to examination for income
tax year 2011 and subsequent.
Currently, the Internal Revenue Service is examining our U.S.
Federal income tax returns for fiscal 2014 and no adjustments have
been proposed at this time. We currently expect this examination to
be completed by the end of our fiscal year 2017 (April 30, 2017).
During the third quarter of fiscal 2017, Revenue Quebec commenced
an examination of our Canadian provincial (Quebec) income tax
returns for fiscal years 2013 through 2015. We currently expect
this examination to be completed by the end of our first quarter of
fiscal 2018 (July 30, 2017).
In accordance with ASC Topic 740, an unrecognized income tax
benefit for an uncertain income tax position can be recognized in
the first interim period if the more-likely-than-not recognition
threshold is met by the reporting period, or is effectively settled
through examination, negotiation, or litigation, or the statue of
limitations for the relevant taxing authority to examine and
challenge the tax position has expired. If it is determined that
any of the above conditions occur regarding our uncertain income
tax positions, an adjustment to our unrecognized income tax benefit
will be recorded at that time.
|
Statutory Reserves |
6 Months Ended |
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Oct. 30, 2016 | |
Text Block [Abstract] | |
Statutory Reserves |
14. Statutory Reserves
Our subsidiaries located in China are required to transfer 10% of
their net income, as determined in accordance with the
People’s Republic of China (PRC) accounting rules and
regulations, to a statutory surplus reserve fund until such reserve
balance reaches 50% of the company’s registered
capital.
The transfer to this reserve must be made before distributions of
any dividend to shareholders. As of October 30, 2016, the
company’s statutory surplus reserve was $4.6 million,
representing 10% of accumulated earnings and profits determined in
accordance with PRC accounting rules and regulations. The surplus
reserve fund is non-distributable other than during liquidation and
can be used to fund previous years’ losses, if any, and may
be utilized for business expansion or converted into share capital
by issuing new shares to existing shareholders in proportion to
their shareholding or by increasing the par value of the shares
currently held by them provided that the remaining reserve balance
after such issue is not less than 25% of the registered
capital.
Our subsidiaries located in China can transfer funds to the parent
company with the exception of the statutory surplus reserve of $4.6
million to assist with debt repayment, capital expenditures, and
other expenses of the company’s business.
|
Commitments and Contingencies |
6 Months Ended |
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Oct. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies |
15. Commitments and Contingencies
Litigation
The company is involved in legal proceedings and claims which have
arisen in the ordinary course of business. Management has
determined that it is not reasonably possible that these actions,
when ultimately concluded and settled, will have a material adverse
effect upon the financial position, results of operations, or cash
flows of the company.
Purchase Commitments
Overall
At October 30, 2016, November 1, 2015, and May 1, 2016, we had open
purchase commitments to acquire a building and equipment for our
mattress fabrics segment totaling $9.8 million, $1.9 million, and
$10.6 million, respectively. The $9.8 million and $10.6 million
open purchase commitments as of October 30, 2016
and May 1, 2016, include $6.1 million and $9.3 million associated
with the construction of a new building noted below.
Construction of New Building
Effective May 16, 2016, we entered into an agreement with a
contractor to construct a new building located in North Carolina
that will expand our distribution capabilities and office space at
a current estimated cost of $11.2 million. This agreement required
an installment payment of $1.9 million in April 2016 and requires
additional installment payments to be made in the following fiscal
years: Fiscal 2017- $4.3 million; Fiscal 2018- $3.8 million; and
Fiscal 2019- $1.2 million. Interest will be charged on the required
outstanding installment payments in excess of services that have
been rendered at a rate of $2.25% plus the current 30 day LIBOR
rate.
Also, we were required to issue a letter of a credit totaling $5.0
million with the contractor’s bank being the beneficiary. In
addition to the interest that will be charged on the outstanding
installment payments noted above, there will be a 0.1% unused fee
calculated on the balance of the $5.0 million letter of credit less
the amount outstanding per month (see Note 8 for further
details).
As of October 30, 2016, we have made payments totaling $5.1 million
for services rendered on the construction of this building. The
remaining $6.1 million on this commitment is required to be paid on
an installment basis over the next three fiscal years as follows:
Fiscal 2017 - $1.1 million; Fiscal 2018 - $3.8 million; and Fiscal
2019 - $1.2 million.
The construction of this new building is currently expected to be
completed in December 2016.
|
Common Stock Repurchase Program |
6 Months Ended |
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Oct. 30, 2016 | |
Text Block [Abstract] | |
Common Stock Repurchase Program |
16. Common Stock Repurchase Program
On June 15, 2016, we announced that our board of directors approved
an authorization for us to acquire up to $5.0 million of our common
stock. Under the common stock repurchase program, shares may be
purchased from time to time in open market transactions, block
trades, through plans established under the Securities Exchange Act
Rule 10b5-1, or otherwise. The amount of shares purchased and the
timing of such purchases will be based on working capital
requirements, market and general business conditions, and other
factors including alternative investment opportunities.
During the six months ended October 30, 2016, and November 1, 2015,
we did not purchase any shares of our common stock.
At October 30, 2016, we had $5.0 million available for additional
repurchases of our common stock.
|
Dividend Program |
6 Months Ended |
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Oct. 30, 2016 | |
Text Block [Abstract] | |
Dividend Program | 17. Dividend Program
On December 1, 2016, we announced that our board of directors
approved a 14% increase in our quarterly cash dividend from $0.07
to $0.08 per share. This payment will be made on January 17, 2017,
to shareholders of record as of January 3, 2017.
During the first half of fiscal 2017, dividend payments totaled
$4.3 million, of which $2.5 million represented a special cash
dividend payment of $0.21 per share, and $1.8 million represented
quarterly dividend payments of $0.07 per share.
During the first half of fiscal 2016, dividend payments totaled
$6.4 million, of which $5.0 million represented a special cash
dividend of $0.40 per share, and $1.4 million represented quarterly
dividend payments of $0.06 per share.
Future dividend payments are subject to board approval and may be
adjusted at the board's discretion as business needs or market
conditions change.
|
Significant Accounting Policies (Policies) |
6 Months Ended |
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Oct. 30, 2016 | |
Accounting Policies [Abstract] | |
Recently Adopted and Issued Accounting Pronouncements |
Recently Adopted Accounting Pronouncements
In November 2015, the FASB issued ASU No. 2015-17,
Balance Sheet Classification of Deferred Taxes, an amendment
to FASB ASC Topic 740, which simplifies the presentation of
deferred income taxes on an entity’s classified balance
sheet. Currently, entities that are required to issue a classified
balance sheet present a net current and net noncurrent deferred
income tax asset or liability for each tax jurisdiction. The
amendments in this ASU require entities to offset all deferred
income tax assets and liabilities for each tax jurisdiction and
present a net deferred income tax asset or liability as a single
noncurrent amount. The recognition and measurement guidance for
deferred income tax assets and liabilities are not affected by this
amendment. This amended guidance is effective for fiscal years and
interim periods within those fiscal years, beginning after December
15, 2016. Early adoption is permitted and the standard may be
applied either retrospectively or on a prospective basis to all
deferred income tax assets and liabilities.
We early adopted this amendment during the third quarter of fiscal
2016 on a retrospective basis. Accordingly, we reclassified our
current deferred income taxes to noncurrent on our November 1, 2015
Consolidated Balance Sheet, which increased noncurrent deferred
income taxes $3.0 million and decreased noncurrent deferred tax
liabilities $4.7 million.
In June 2014, the Financial Accounting Standards Board
(“FASB”) amended its authoritative guidance on
accounting for certain share-based payment awards. The amended
guidance requires that share-based compensation awards with terms
of a performance target that affects vesting, and that could be
achieved after the requisite service period, be treated as a
performance condition. As such, the performance target should not
be reflected in estimating the grant-date fair value of the award
and compensation cost should be recognized in the period in which
it becomes probable that the performance target will be achieved.
The guidance will permit an entity to apply the amendments in the
update either (a) prospectively to all awards granted or modified
after the effective date or (b) retrospectively to all awards with
performance targets that are outstanding as of the beginning of the
earliest annual period presented in the consolidated financial
statements and to all new or modified awards thereafter.
This guidance was effective for the first quarter of fiscal 2017
and did not have any impact on our consolidated financial
statements as we currently do not have any share-based payment
awards with terms of a performance target that affects vesting and
could be achieved after the requisite service period.
Recently Issued Accounting Pronouncements
In May 2014, the FASB issued ASU No. 2014-09, which amends ASC
Topic 606,
Revenue from Contracts with Customers. The amendments in
this ASU are intended to enhance the comparability of revenue
recognition practices and will be applied to all contracts with
customers. Improved disclosures related to the nature, amount,
timing, and uncertainty of revenue that is recognized are
requirements under the amended guidance. In April 2015, the FASB
issued ASU 2015-24,
Revenue from Contracts with Customers: Deferral of the Effective
Date which proposed a deferral of the effective date by one
year, and on July 7, 2015, the FASB decided to delay the effective
date by one year. The deferral results in the new revenue standard
being effective for fiscal years, and interim periods within those
fiscal years, beginning after December 15, 2017. We are therefore
required to apply the new revenue guidance in our fiscal 2019
interim and annual financial statements. This ASU can be adopted
either retrospectively or as a cumulative-effect adjustment as of
the date of adoption. We are currently assessing the impact that
this guidance will have on our consolidated financial
statements.
In July 2015, the FASB issued ASU No. 2015-11,
Simplifying the Measurement of Inventory, which changed the
measurement principle for inventory from the lower of cost or
market to lower of cost and net realizable value. This ASU is
effective for fiscal years and interim periods within those fiscal
years, beginning after December 15, 2016. We are therefore required
to apply this guidance in our fiscal 2018 interim and annual
financial statements. We are currently assessing the impact that
this guidance will have on our consolidated financial
statements.
In February 2016, the FASB issued ASU No. 2016-02,
Leases (Topic 842), which increases transparency and
comparability among companies accounting for lease transactions.
The most significant change of this update will require the
recognition of lease assets and liabilities on the balance sheet
for operating lease arrangements with lease terms greater than
twelve months for lessees. This update will require a modified
retrospective application which includes a number of optional
practical expedients related to the identification and
classification of leases commenced before the effective date. This
ASU is effective for fiscal years and interim periods within those
fiscal years, beginning after December 15, 2018. We are therefore
required to apply this guidance in our fiscal 2020 interim and
annual financial statements. We are currently assessing the impact
that this guidance will have on our consolidated financial
statements.
In March 2016, the FASB issued ASU No. 2016-09, "Compensation -
Stock Compensation (Topic 718): Improvements to Employee
Shares-Based Payment Accounting." ASU 2016-09 is intended to
improve the accounting for share-based payment transactions as part
of the FASB’s simplification initiative. ASU 2016-09 changes
several aspects of the accounting for share-based payment award
transactions, including: (1) accounting for income taxes; (2)
classification of excess tax benefits on the statement of cash
flows; (3) forfeitures; (4) minimum statutory tax withholding
requirements; and (5) classification of employee taxes paid on the
statement of cash flows when an employer withholds shares for
tax-withholding purposes. ASU 2016-09 is effective for fiscal years
beginning after December 15, 2016, and interim periods within those
years for public companies. We are therefore required to apply this
guidance in our fiscal 2018 interim and annual financial
statements. We are currently assessing the impact that ASU 2016-09
will have on its consolidated financial statements.
In August 2016, the FASB issued ASU No. 2016-15,
Statement of Cash Flows (Topic 230): Classification of Certain Cash
Receipts and Cash Payments, to address the diversity in how
certain cash receipts and cash payments are presented in the
statement of cash flows. This new guidance provides clarity around
the cash flow classification for eight specific issues in an effort
to reduce the current and potential future diversity in practice.
This standard, which is to be applied retrospectively, will be
effective for the first interim period within annual reporting
periods beginning after December 15, 2017, and early adoption is
permitted. We are therefore required to apply this new guidance in
our fiscal 2019 interim and annual financial statements. We are
currently assessing the impact that this guidance will have on our
consolidated financial statements.
In October 2016, the FASB issued ASU No. 2016-16, Income Taxes
(Topic 740):
Intra-Entity Transfers of Assets Than Inventory, to reduce
the diversity in practice and complexity associated with accounting
for the income tax consequences of intra-entity transfers of assets
other than inventory. Current GAAP prohibits recognition of
deferred income taxes for an intra-entity transfer until the asset
has been sold to an outside party. The new pronouncement stipulates
that an entity should recognize the income tax consequences of an
intra-entity transfer of an asset other than inventory when the
transfer occurs. This new guidance will be effective for annual
reporting periods beginning after December 15, 2017, including
interim periods within those annual reporting periods, with early
adoption permitted in the first interim period only. We are
therefore required to apply this new guidance in our fiscal 2019
interim and annual financial statements. The amendments are to
applied on a modified retrospective basis through a
cumulative-effect adjustment directly to retained earnings as of
the beginning of the period of adoption. We are currently assessing
the impact that this guidance will have on our consolidated
financial statements.
There are no other new accounting pronouncements that are expected
to have a significant impact on our consolidated financial
statements.
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Accounts Receivable (Tables) |
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Accounts Receivable |
A summary of accounts receivable follows:
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Summary of the Activity in the Allowance for Doubtful Accounts |
A summary of the activity in the allowance for doubtful accounts
follows:
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Summary of the Activity in the Allowance for Returns and Allowances and Discounts Accounts | A summary of the activity in the allowance for returns and
allowances and discounts accounts follows:
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Inventories (Tables) |
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Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Inventories |
A summary of inventories follows:
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Other Assets (Tables) |
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Summary of Other Assets |
A summary of other assets follows:
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Accrued Expenses (Tables) |
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Summary of Accrued Expenses |
A summary of accrued expenses follows:
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Fair Value of Financial Instruments (Tables) |
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Schedule of Assets Measured at Fair Value on a Recurring Basis |
The following table presents information about assets measured at
fair value on a recurring basis:
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Cash Flow Information (Tables) |
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Oct. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest and Income Taxes Paid |
Interest and income taxes paid are as follows:
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Net Income Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted Average Shares Used in the Computation of Basic and Diluted Net Income Per Share |
Weighted average shares used in the computation of basic and
diluted net income per share follows:
|
Segment Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Operating Segments Information |
Financial information for the company’s operating segments
follows:
Balance sheet information for the company’s operating
segments follows:
|
Income Taxes (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Differences in Income Tax Expense at Federal Income Tax Rate and Effective Income Tax Rate |
The following schedule summarizes the factors that are attributable
to the difference between income tax expense at the federal income
tax rate and the effective income tax rate reflected in the
consolidated financial statements:
|
Significant Accounting Policies (Detail) - Accounting Standards Update 2015-17 [Member] $ in Millions |
Nov. 01, 2015
USD ($)
|
---|---|
Summary Of Significant Accounting Policies [Line Items] | |
Increased noncurrent deferred income taxes | $ 3.0 |
Decreased noncurrent deferred tax liabilities | $ 4.7 |
Stock-Based Compensation - Narrative (Detail) - USD ($) |
3 Months Ended | 6 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 03, 2016 |
Jul. 14, 2016 |
Oct. 01, 2015 |
Jul. 15, 2015 |
Mar. 03, 2015 |
Jun. 24, 2014 |
Jun. 25, 2013 |
Jul. 11, 2012 |
Oct. 30, 2016 |
Jul. 31, 2016 |
Aug. 02, 2015 |
Oct. 30, 2016 |
Nov. 01, 2015 |
Sep. 16, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of options granted | 0 | 0 | ||||||||||||
2015 Equity Incentive Plan [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of common stock authorized for issuance | 1,200,000 | |||||||||||||
Number of shares available for future equity based grants | 980,486 | 980,486 | ||||||||||||
2007 Equity Incentive Plan [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares available for future equity based grants | 0 | |||||||||||||
Performance Based Restricted Stock Units [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Remaining unrecognized compensation cost | $ 5,000,000 | $ 5,000,000 | ||||||||||||
Weighted average period over which unrecognized compensation cost is expected to be recognized | 2 years | |||||||||||||
Performance Based Restricted Stock Units [Member] | Selling, General and Administrative Expenses [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based compensation expense | $ 1,500,000 | $ 1,200,000 | ||||||||||||
Performance Based Restricted Stock Units [Member] | Employee [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Vesting period | 3 years | 3 years | 3 years | 3 years | 3 years | |||||||||
Closing price of common stock | $ 28 | $ 32.23 | $ 17.70 | $ 17.12 | $ 10.21 | |||||||||
Performance Based Restricted Stock Units [Member] | Non-employee [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Vesting period | 3 years | 3 years | ||||||||||||
Closing price of common stock | $ 28.15 | |||||||||||||
Number of shares unvested | 16,000 | |||||||||||||
Performance Based Restricted Stock Units [Member] | Requisite Service Period for 16,000 Restricted Stock Units [Member] | Non-employee [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Vesting period | 28 months | |||||||||||||
Performance Based Restricted Stock Units [Member] | Fiscal Year 2015 [Member] | Non-employee [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares vested | 12,000 | |||||||||||||
Weighted average fair value of vested shares | $ 345,000 | |||||||||||||
Weighted average fair value of vested shares, per share | $ 28.77 | |||||||||||||
Performance Based Restricted Stock Units [Member] | Fiscal Year 2014 [Member] | Employee [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares vested | 37,192 | |||||||||||||
Weighted average fair value of vested shares | $ 637,000 | |||||||||||||
Weighted average fair value of vested shares, per share | $ 17.12 | |||||||||||||
Performance Based Restricted Stock Units [Member] | Fiscal Year 2013 [Member] | Employee [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of shares vested | 115,855 | |||||||||||||
Weighted average fair value of vested shares | $ 1,200,000 | |||||||||||||
Weighted average fair value of vested shares, per share | $ 10.21 | |||||||||||||
Performance Based Restricted Stock Units [Member] | Maximum [Member] | Employee [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Maximum number of shares granted | 107,880 | 107,554 | 102,845 | 72,380 | 120,000 | |||||||||
Performance Based Restricted Stock Units [Member] | Maximum [Member] | Non-employee [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Maximum number of shares granted | 11,549 | 10,364 | 28,000 | |||||||||||
Incentive Stock Option Awards [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Number of options to purchase common stock outstanding | 81,600 | 81,600 | ||||||||||||
Number of options exercisable | 81,600 | 81,600 | ||||||||||||
Weighted average exercise price for options outstanding | $ 8.44 | $ 8.44 | ||||||||||||
Weighted average exercise price for options exercisable | $ 8.44 | $ 8.44 | ||||||||||||
Weighted average contractual term for options outstanding | 9 months 18 days | |||||||||||||
Weighted average contractual term for options exercisable | 9 months 18 days | |||||||||||||
Aggregate intrinsic value for options outstanding | $ 1,600,000 | $ 1,600,000 | ||||||||||||
Aggregate intrinsic value for options exercisable | $ 1,600,000 | 1,600,000 | ||||||||||||
Aggregate intrinsic value for options exercised | $ 43,000 | 1,000,000 | ||||||||||||
Number of unvested stock option | 0 | 0 | ||||||||||||
Unrecognized stock based compensation cost | $ 0 | $ 0 | ||||||||||||
Share-based compensation expense | 0 | 0 | ||||||||||||
Common Stock Awards [Member] | Selling, General and Administrative Expenses [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based compensation expense | $ 143,000 | 95,000 | ||||||||||||
Common Stock Awards [Member] | Outside Directors [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Maximum number of shares granted | 4,800 | 3,000 | ||||||||||||
Vesting period | 0 days | 0 days | ||||||||||||
Closing price of common stock | $ 29.80 | $ 31.77 | ||||||||||||
Time Vested Restricted Stock Units [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based compensation expense | $ 0 | |||||||||||||
Vesting period | 7 months 15 days | |||||||||||||
Unrecognized stock based compensation cost | $ 23,000 | $ 23,000 | ||||||||||||
Time Vested Restricted Stock Units [Member] | Selling, General and Administrative Expenses [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share-based compensation expense | $ 11,000 | |||||||||||||
Time Vested Restricted Stock Units [Member] | Employee [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Maximum number of shares granted | 1,200 | 0 | ||||||||||||
Vesting period | 11 months | |||||||||||||
Closing price of common stock | $ 28 |
Accounts Receivable (Detail) - USD ($) $ in Thousands |
Oct. 30, 2016 |
May 01, 2016 |
Nov. 01, 2015 |
May 03, 2015 |
|||
---|---|---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Customers | $ 20,580 | $ 25,531 | $ 25,045 | ||||
Accounts receivable, net | 19,039 | 23,481 | [1] | 23,314 | |||
Allowance for doubtful accounts [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Valuation allowance, balance | (420) | (1,088) | (826) | $ (851) | |||
Reserve for returns and allowances and discounts [Member] | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Valuation allowance, balance | $ (1,121) | $ (962) | $ (905) | $ (738) | |||
|
Accounts Receivable - Allowance for Doubtful Accounts (Detail) - Allowance for doubtful accounts [Member] - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Oct. 30, 2016 |
Nov. 01, 2015 |
|
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Beginning balance | $ (1,088) | $ (851) |
Provision for bad debts | 216 | (81) |
Net write-offs, net of recoveries | 452 | 106 |
Ending balance | $ (420) | $ (826) |
Accounts Receivable - Allowance for Returns and Allowances and Discounts Accounts (Detail) - Reserve for returns and allowances and discounts [Member] - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Oct. 30, 2016 |
Nov. 01, 2015 |
|
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Beginning balance | $ (962) | $ (738) |
Provision for returns, allowances and discounts | (1,620) | (1,561) |
Credits issued | 1,461 | 1,394 |
Ending balance | $ (1,121) | $ (905) |
Inventories (Detail) - USD ($) $ in Thousands |
Oct. 30, 2016 |
May 01, 2016 |
Nov. 01, 2015 |
|||
---|---|---|---|---|---|---|
Inventory Disclosure [Abstract] | ||||||
Raw materials | $ 6,128 | $ 5,462 | $ 6,272 | |||
Work-in-process | 2,518 | 2,972 | 2,779 | |||
Finished goods | 37,308 | 38,097 | 37,428 | |||
Inventories | $ 45,954 | $ 46,531 | [1] | $ 46,479 | ||
|
Other Assets (Detail) - USD ($) $ in Thousands |
Oct. 30, 2016 |
May 01, 2016 |
Nov. 01, 2015 |
|||
---|---|---|---|---|---|---|
Other Assets, Noncurrent [Abstract] | ||||||
Cash surrender value - life insurance | $ 358 | $ 357 | $ 339 | |||
Non-compete agreement, net | 866 | 903 | 941 | |||
Customer relationships, net | 689 | 715 | 740 | |||
Other | 582 | 598 | 474 | |||
Other assets | $ 2,495 | $ 2,573 | [1] | $ 2,494 | ||
|
Other Assets - Narrative (Detail) |
6 Months Ended | ||
---|---|---|---|
Oct. 30, 2016
USD ($)
Contract
|
Nov. 01, 2015
USD ($)
Contract
|
May 01, 2016
USD ($)
Contract
|
|
Other Assets [Line Items] | |||
Gross carrying amount of non-compete agreement | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 |
Gross carrying amount of customer relationships | $ 868,000 | $ 868,000 | $ 868,000 |
Number of life insurance contracts owned | Contract | 1 | 1 | 1 |
Life insurance contracts, death benefits to insured | $ 1,400,000 | $ 1,400,000 | $ 1,400,000 |
Life insurance contracts, cash surrender value | $ 358,000 | 339,000 | 357,000 |
Non-compete Agreement [Member] | |||
Other Assets [Line Items] | |||
Useful life | 15 years | ||
Accumulated amortization | $ 1,200,000 | 1,100,000 | 1,100,000 |
Amortization expense | 38,000 | 38,000 | |
Remaining amortization expense for the fiscal year | 37,000 | ||
Remaining amortization expense for the second fiscal year | 75,000 | ||
Remaining amortization expense for the third fiscal year | 75,000 | ||
Remaining amortization expense for the fourth fiscal year | 75,000 | ||
Remaining amortization expense for the fifth fiscal year | 75,000 | ||
Remaining amortization expense for the fiscal year thereafter | $ 529,000 | ||
Weighted average remaining amortization period | 11 years 6 months | ||
Customer Relationships [Member] | |||
Other Assets [Line Items] | |||
Useful life | 17 years | ||
Accumulated amortization | $ 179,000 | 128,000 | $ 153,000 |
Amortization expense | 26,000 | $ 26,000 | |
Remaining amortization expense for the fiscal year | 25,000 | ||
Remaining amortization expense for the second fiscal year | 51,000 | ||
Remaining amortization expense for the third fiscal year | 51,000 | ||
Remaining amortization expense for the fourth fiscal year | 51,000 | ||
Remaining amortization expense for the fifth fiscal year | 51,000 | ||
Remaining amortization expense for the fiscal year thereafter | $ 460,000 | ||
Weighted average remaining amortization period | 13 years 6 months |
Accrued Expenses (Detail) - USD ($) $ in Thousands |
Oct. 30, 2016 |
May 01, 2016 |
Nov. 01, 2015 |
|||
---|---|---|---|---|---|---|
Payables and Accruals [Abstract] | ||||||
Compensation, commissions and related benefits | $ 7,111 | $ 10,011 | $ 6,657 | |||
Advertising rebates | 734 | 870 | 2,536 | |||
Interest | 5 | |||||
Other accrued expenses | 1,028 | 1,041 | 702 | |||
Accrued expenses | $ 8,878 | $ 11,922 | [1] | $ 9,895 | ||
|
Lines of Credit - Narrative (Detail) |
6 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016
USD ($)
|
May 15, 2018
USD ($)
|
Feb. 01, 2018
USD ($)
|
Nov. 01, 2017
USD ($)
|
Aug. 01, 2017
USD ($)
|
Oct. 30, 2016
CNY (¥)
|
Aug. 03, 2016
USD ($)
|
Aug. 01, 2016
USD ($)
|
May 01, 2016
USD ($)
|
Nov. 01, 2015
USD ($)
|
|
United States [Member] | Revolving Credit Facility [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Maximum borrowing capacity | $ 30,000,000 | |||||||||
Interest rate description | Interest was charged at a rate as a variable spread over LIBOR based on our ratio of debt to EBITDA. | |||||||||
Applicable interest rate at end of period | 1.98% | 1.98% | ||||||||
Expiration date | Aug. 15, 2018 | |||||||||
Reference rate on which the interest rate is based | LIBOR | |||||||||
Percentage of common stock in subsidiary pledge as collateral | 65.00% | |||||||||
Outstanding amount | $ 0 | $ 0 | $ 0 | |||||||
Letters of credit, outstanding amount | 250,000 | 250,000 | 250,000 | |||||||
China [Member] | Revolving credit agreement [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Maximum borrowing capacity | $ 5,900,000 | ¥ 40,000,000 | ||||||||
Interest rate description | This agreement has an interest rate determined by the Chinese government | |||||||||
Expiration date | Mar. 08, 2017 | |||||||||
Outstanding amount | $ 0 | ¥ 0 | $ 0 | $ 0 | ||||||
Third Amendment to Credit Agreement [Member] | United States [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Maximum amount of letters of credit | $ 7,500,000 | |||||||||
Letters of credit outstanding, additional amount | $ 5,000,000 | |||||||||
Third Amendment to Credit Agreement [Member] | United States [Member] | Scenario, Forecast [Member] | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Amount of the required periodic reduction applied to principal | $ 1,250,000 | $ 1,250,000 | $ 1,250,000 | $ 1,250,000 |
Fair Value of Financial Instruments - Recurring Basis (Detail) - USD ($) $ in Thousands |
Oct. 30, 2016 |
May 01, 2016 |
Nov. 01, 2015 |
---|---|---|---|
Cash and Cash Equivalents [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | $ 23,940 | ||
U.S. Corporate Bonds [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 7,110 | ||
Premier Money Market Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 4,421 | $ 3,404 | $ 2,703 |
Low Duration Bond Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 1,075 | 1,604 | 2,098 |
Intermediate Term Bond Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 750 | 1,154 | 2,144 |
Strategic Income Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 605 | 999 | 984 |
Limited Term Bond Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 602 | 1,094 | |
Large Blend Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 319 | 289 | 279 |
Growth Allocation Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 102 | 148 | 125 |
Mid Cap Value Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 102 | 94 | |
Other [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 152 | 82 | 78 |
Quoted prices in active markets for identical assets - Level 1 [Member] | Cash and Cash Equivalents [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 23,940 | ||
Quoted prices in active markets for identical assets - Level 1 [Member] | Premier Money Market Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 4,421 | 3,404 | 2,703 |
Quoted prices in active markets for identical assets - Level 1 [Member] | Low Duration Bond Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 1,075 | 1,604 | 2,098 |
Quoted prices in active markets for identical assets - Level 1 [Member] | Intermediate Term Bond Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 750 | 1,154 | 2,144 |
Quoted prices in active markets for identical assets - Level 1 [Member] | Strategic Income Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 605 | 999 | 984 |
Quoted prices in active markets for identical assets - Level 1 [Member] | Limited Term Bond Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 602 | 1,094 | |
Quoted prices in active markets for identical assets - Level 1 [Member] | Large Blend Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 319 | 289 | 279 |
Quoted prices in active markets for identical assets - Level 1 [Member] | Growth Allocation Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 102 | 148 | 125 |
Quoted prices in active markets for identical assets - Level 1 [Member] | Mid Cap Value Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 102 | 94 | |
Quoted prices in active markets for identical assets - Level 1 [Member] | Other [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 152 | $ 82 | $ 78 |
Significant other observable inputs - Level 2 [Member] | U.S. Corporate Bonds [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | $ 7,110 |
Fair Value of Financial Instruments - Narrative (Detail) - USD ($) |
3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Nov. 03, 2016 |
Oct. 30, 2016 |
May 01, 2016 |
Nov. 01, 2015 |
||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Short-term investments | $ 2,430,000 | $ 4,359,000 | [1] | $ 6,320,000 | |||
Held to maturity investments | 31,050,000 | ||||||
Long-term investments (Rabbi Trust) | $ 4,994,000 | 4,025,000 | [1] | 3,279,000 | |||
Minimum [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Long-term investments, maturity period | 2 years | ||||||
Maximum [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Long-term investments, maturity period | 2 years 6 months | ||||||
Subsequent Event [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Purchases of U.S. Corporate bonds | $ 23,900,000 | ||||||
Short-term Investments [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Accumulated unrealized gain (loss) on long-term investments | $ (45,000) | (100,000) | (171,000) | ||||
Cash and Cash Equivalents [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Held to maturity investments | 23,900,000 | ||||||
U.S. Corporate Bonds [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Held to maturity investments | 7,100,000 | ||||||
Long-term investments (Rabbi Trust) [Member] | |||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||
Accumulated unrealized gain (loss) on long-term investments | $ 1,000 | $ 14,000 | |||||
Accumulated realized loss on long-term investments | $ 44,000 | ||||||
|
Cash Flow Information - Interest and Income Taxes Paid (Detail) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Oct. 30, 2016 |
Nov. 01, 2015 |
|
Supplemental Cash Flow Elements [Abstract] | ||
Interest | $ 45 | $ 86 |
Income taxes | $ 3,238 | $ 2,088 |
Cash Flow Information - Narrative (Detail) - USD ($) |
6 Months Ended | |
---|---|---|
Oct. 30, 2016 |
Nov. 01, 2015 |
|
Supplemental Cash Flow Elements [Abstract] | ||
Interest costs | $ 45,000 | $ 49,000 |
Interest cost capitalized | $ 45,000 | $ 49,000 |
Net Income Per Share - Weighted Average Shares (Detail) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Nov. 01, 2015 |
Oct. 30, 2016 |
Nov. 01, 2015 |
|
Earnings Per Share [Abstract] | ||||
Weighted average common shares outstanding, basic | 12,308 | 12,343 | 12,297 | 12,310 |
Dilutive effect of stock-based compensation | 199 | 141 | 198 | 171 |
Weighted average common shares outstanding, diluted | 12,507 | 12,484 | 12,495 | 12,481 |
Segment Information - Narrative (Detail) |
6 Months Ended |
---|---|
Oct. 30, 2016
Segment
| |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
Segment Information - Financial Information for Operating Segments (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Nov. 01, 2015 |
Oct. 30, 2016 |
Nov. 01, 2015 |
|
Segment Reporting Information [Line Items] | ||||
Net sales | $ 75,343 | $ 76,956 | $ 156,026 | $ 157,141 |
Gross profit | 16,901 | 15,733 | 35,321 | 31,935 |
Selling, general, and administrative expenses | 9,602 | 9,433 | 19,348 | 18,175 |
income from operations | 7,299 | 6,300 | 15,973 | 13,760 |
Interest income | 15 | 69 | 40 | 112 |
Other expense | (155) | (225) | (307) | (320) |
Income before income taxes | 7,159 | 6,144 | 15,706 | 13,552 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Selling, general, and administrative expenses | 6,948 | 6,802 | 13,980 | 13,321 |
income from operations | 9,953 | 8,931 | 21,341 | 18,614 |
Operating Segments [Member] | Mattress Fabrics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 45,527 | 45,436 | 96,057 | 93,245 |
Gross profit | 10,756 | 9,456 | 22,657 | 19,381 |
Selling, general, and administrative expenses | 3,296 | 2,989 | 6,795 | 5,912 |
income from operations | 7,460 | 6,467 | 15,862 | 13,468 |
Operating Segments [Member] | Upholstery Fabrics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 29,816 | 31,520 | 59,969 | 63,896 |
Gross profit | 6,145 | 6,277 | 12,664 | 12,554 |
Selling, general, and administrative expenses | 3,652 | 3,813 | 7,185 | 7,409 |
income from operations | 2,493 | 2,464 | 5,479 | 5,146 |
Unallocated corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Selling, general, and administrative expenses | 2,654 | 2,631 | 5,368 | 4,854 |
income from operations | $ (2,654) | $ (2,631) | $ (5,368) | $ (4,854) |
Segment Information - Balance Sheet Information by Operating Segments (Detail) - USD ($) $ in Thousands |
6 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 30, 2016 |
Nov. 01, 2015 |
May 01, 2016 |
May 03, 2015 |
|||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Non-compete agreement | $ 866 | $ 941 | $ 903 | |||||||||||||||
Customer relationships | 689 | 740 | 715 | |||||||||||||||
Goodwill | 11,462 | 11,462 | 11,462 | [1] | ||||||||||||||
Property, plant and equipment | 45,537 | 38,319 | 39,973 | [1] | ||||||||||||||
Total assets | 179,127 | 168,947 | 175,142 | [1] | ||||||||||||||
Cash and cash equivalents | 13,910 | 31,176 | 37,787 | [1] | $ 29,725 | |||||||||||||
Short-term investments | 2,430 | 6,320 | 4,359 | [1] | ||||||||||||||
Deferred income taxes | 581 | 3,415 | 2,319 | [1] | ||||||||||||||
Income taxes receivable | 75 | 155 | [1] | |||||||||||||||
Other current assets | 1,675 | 2,614 | 2,477 | [1] | ||||||||||||||
Long-term investments (Held-to-Maturity) | 31,050 | |||||||||||||||||
Long-term investments (Rabbi Trust) | 4,994 | 3,279 | 4,025 | [1] | ||||||||||||||
Other assets | 2,495 | 2,494 | 2,573 | [1] | ||||||||||||||
Capital expenditures | [2] | 9,084 | 5,535 | |||||||||||||||
Depreciation expense | 3,511 | 3,184 | ||||||||||||||||
Unallocated corporate [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Property, plant and equipment | [3] | 829 | 795 | 929 | ||||||||||||||
Cash and cash equivalents | 13,910 | 31,176 | 37,787 | |||||||||||||||
Short-term investments | 2,430 | 6,320 | 4,359 | |||||||||||||||
Deferred income taxes | 581 | 3,415 | 2,319 | |||||||||||||||
Income taxes receivable | 75 | 155 | ||||||||||||||||
Other current assets | 1,675 | 2,614 | 2,477 | |||||||||||||||
Long-term investments (Held-to-Maturity) | 31,050 | |||||||||||||||||
Long-term investments (Rabbi Trust) | 4,994 | 3,279 | 4,025 | |||||||||||||||
Other assets | 940 | 813 | 955 | |||||||||||||||
Capital expenditures | 62 | 143 | ||||||||||||||||
Operating Segments [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Total assets | 122,718 | 120,460 | 122,136 | |||||||||||||||
Operating Segments [Member] | Mattress Fabrics [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Current assets | [4] | 38,062 | 40,937 | 43,472 | ||||||||||||||
Non-compete agreement | 866 | 941 | 903 | |||||||||||||||
Customer relationships | 689 | 740 | 715 | |||||||||||||||
Goodwill | 11,462 | 11,462 | 11,462 | |||||||||||||||
Property, plant and equipment | [5] | 43,228 | 36,050 | 37,480 | ||||||||||||||
Total assets | 94,307 | 90,130 | 94,032 | |||||||||||||||
Capital expenditures | 8,857 | 5,138 | ||||||||||||||||
Depreciation expense | 3,101 | 2,783 | ||||||||||||||||
Operating Segments [Member] | Upholstery Fabrics [Member] | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Current assets | [4] | 26,931 | 28,856 | 26,540 | ||||||||||||||
Property, plant and equipment | [6] | 1,480 | 1,474 | 1,564 | ||||||||||||||
Total assets | 28,411 | 30,330 | $ 28,104 | |||||||||||||||
Capital expenditures | 165 | 254 | ||||||||||||||||
Depreciation expense | $ 410 | $ 401 | ||||||||||||||||
|
Segment Information - Balance Sheet Information by Operating Segments (Parenthetical) (Detail) - USD ($) $ in Thousands |
Oct. 30, 2016 |
May 01, 2016 |
Nov. 01, 2015 |
|||||
---|---|---|---|---|---|---|---|---|
Segment Reporting Information [Line Items] | ||||||||
Property, plant and equipment | $ 45,537 | $ 39,973 | [1] | $ 38,319 | ||||
United States [Member] | Mattress Fabrics [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Property, plant and equipment | 28,500 | 24,800 | 23,300 | |||||
United States [Member] | Upholstery Fabrics [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Property, plant and equipment | 890 | 893 | 785 | |||||
Canada [Member] | Mattress Fabrics [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Property, plant and equipment | 14,700 | 12,700 | 12,800 | |||||
China [Member] | Upholstery Fabrics [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Property, plant and equipment | 590 | 671 | 689 | |||||
Unallocated corporate [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Property, plant and equipment | [2] | $ 829 | $ 929 | $ 795 | ||||
|
Income Taxes - Effective Income Tax Rate - Narrative (Detail) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Nov. 01, 2015 |
Oct. 30, 2016 |
Nov. 01, 2015 |
|
Income Tax Disclosure [Abstract] | ||||
Income taxes | $ 2,684 | $ 2,373 | $ 5,917 | $ 5,081 |
Effective income tax rate | 37.70% | 37.50% |
Income Taxes - Differences Between Income Tax Expense at Federal Income Tax Rate and Effective Income Tax Rate (Detail) |
6 Months Ended | |
---|---|---|
Oct. 30, 2016 |
Nov. 01, 2015 |
|
Income Tax Disclosure [Abstract] | ||
federal income tax rate | 34.00% | 34.00% |
U.S state income tax expense | 0.60% | 0.70% |
tax effects of Chinese foreign exchange gains | 1.60% | 2.30% |
increase in liability for uncertain tax positions | 0.30% | 0.30% |
other | 1.20% | 0.20% |
Effective income tax rate | 37.70% | 37.50% |
Income Taxes - Deferred Income Taxes - Valuation Allowance - Narrative (Detail) - USD ($) |
Oct. 30, 2016 |
May 01, 2016 |
Nov. 01, 2015 |
---|---|---|---|
U.S. Tax Authorities and Poland Tax Authorities [Member] | Valuation Allowance, Operating Loss Carryforwards [Member] | |||
Income Taxes [Line Items] | |||
Valuation allowance | $ 603,000 | $ 590,000 | $ 938,000 |
U.S. State Tax [Member] | Valuation Allowance, Operating Loss Carryforwards [Member] | |||
Income Taxes [Line Items] | |||
Valuation allowance | 519,000 | 518,000 | 561,000 |
Poland [Member] | Valuation Allowance, Operating Loss Carryforwards [Member] | Culp Europe [Member] | |||
Income Taxes [Line Items] | |||
Valuation allowance | 84,000 | 72,000 | 377,000 |
Canada and China [Member] | |||
Income Taxes [Line Items] | |||
Valuation allowance | $ 0 | $ 0 | $ 0 |
Income Taxes - Deferred Income Taxes - Undistributed Earnings - Narrative (Detail) - USD ($) |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Oct. 30, 2016 |
Nov. 01, 2015 |
May 01, 2016 |
|
Income Tax Disclosure [Abstract] | |||
Undistributed earnings from our foreign subsidiaries that will not be reinvested indefinitely | $ 138,900,000 | $ 93,200,000 | $ 129,600,000 |
Deferred tax liability, undistributed earnings from foreign subsidiaries | 657,000 | 2,400,000 | 604,000 |
U.S. income and foreign withholding taxes | 41,400,000 | 35,700,000 | 38,500,000 |
U.S. foreign income tax credits | $ 40,700,000 | $ 33,300,000 | $ 37,900,000 |
Income Taxes - Deferred Income Taxes - Narrative (Detail) - USD ($) $ in Thousands |
Oct. 30, 2016 |
May 01, 2016 |
Nov. 01, 2015 |
|||
---|---|---|---|---|---|---|
Income Taxes [Line Items] | ||||||
Non-current deferred tax asset | $ 581 | $ 2,319 | [1] | $ 3,415 | ||
Non-current deferred tax liability | 1,699 | 1,483 | [1] | 1,206 | ||
U.S. Tax Authorities [Member] | ||||||
Income Taxes [Line Items] | ||||||
Non-current deferred tax asset | 109 | 1,700 | 2,500 | |||
China [Member] | ||||||
Income Taxes [Line Items] | ||||||
Non-current deferred tax asset | 472 | 572 | 898 | |||
Canada [Member] | ||||||
Income Taxes [Line Items] | ||||||
Non-current deferred tax liability | $ 1,700 | $ 1,500 | $ 1,200 | |||
|
Income Taxes - Uncertainty in Income Taxes - Narrative (Detail) - USD ($) $ in Millions |
1 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 09, 2016 |
Oct. 30, 2016 |
May 01, 2016 |
Nov. 01, 2015 |
|
Income Taxes [Line Items] | ||||
Unrecognized tax benefits | $ 15.1 | $ 14.9 | $ 14.2 | |
Unrecognized tax benefits that would favorably impact effective income tax rate if recognized | 3.7 | 3.8 | 3.7 | |
Unrecognized tax benefits for which significant change is reasonably possible | $ 15.1 | |||
Canadian Federal Returns [Member] | ||||
Income Taxes [Line Items] | ||||
Statute of limitations for 2009 income tax, expiration month and year | 2017-01 | |||
Canadian Federal Returns [Member] | Minimum [Member] | ||||
Income Taxes [Line Items] | ||||
Income tax returns, years subject to examination | 2009 | |||
Canadian Provincial (Quebec) Returns [Member] | ||||
Income Taxes [Line Items] | ||||
Statute of limitations for 2009 income tax, expiration month and year | 2017-04 | |||
Canadian Provincial (Quebec) Returns [Member] | Minimum [Member] | ||||
Income Taxes [Line Items] | ||||
Income tax returns, years subject to examination | 2009 | |||
China Income Tax Returns [Member] | Minimum [Member] | ||||
Income Taxes [Line Items] | ||||
Income tax returns, years subject to examination | 2011 | |||
Internal Revenue Service (IRS) [Member] | ||||
Income Taxes [Line Items] | ||||
Income tax examination, year under examination | 2014 | |||
Subsequent Event [Member] | Canadian Provincial (Quebec) Returns [Member] | Minimum [Member] | ||||
Income Taxes [Line Items] | ||||
Income tax examination, year under examination | 2013 | |||
Subsequent Event [Member] | Canadian Provincial (Quebec) Returns [Member] | Maximum [Member] | ||||
Income Taxes [Line Items] | ||||
Income tax examination, year under examination | 2015 | |||
United States Federal and State Income Tax [Member] | Minimum [Member] | ||||
Income Taxes [Line Items] | ||||
Income tax returns, years subject to examination | 2005 | |||
Non-current Deferred Income Taxes [Member] | ||||
Income Taxes [Line Items] | ||||
Unrecognized tax benefits | $ 11.4 | 11.1 | 10.5 | |
Income Taxes Payable - Long-Term [Member] | ||||
Income Taxes [Line Items] | ||||
Unrecognized tax benefits | $ 3.7 | $ 3.8 | $ 3.7 |
Statutory Reserves (Detail) - Subsidiaries [Member] - China [Member] $ in Millions |
6 Months Ended |
---|---|
Oct. 30, 2016
USD ($)
| |
Statutory Reserve [Line Items] | |
Percentage of net income required to be transferred to a statutory surplus reserve fund | 10.00% |
Maximum required percentage of statutory surplus reserve fund to registered capital | 50.00% |
Statutory surplus reserve fund balance | $ 4.6 |
Percentage of accumulated earnings and profits determined in accordance with PRC accounting rules and regulations | 10.00% |
Minimum threshold percentage for statutory surplus reserve fund as percentage of registered capital, below which certain capital transactions are prohibited | 25.00% |
Commitments and Contingencies (Detail) - Mattress Fabrics [Member] - Capital Addition Purchase Commitments [Member] - USD ($) |
6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
May 16, 2016 |
Oct. 30, 2016 |
May 01, 2016 |
Nov. 01, 2015 |
|
Commitments and Contingencies Disclosure [Line Items] | ||||
Open purchase commitments | $ 9,800,000 | $ 10,600,000 | $ 1,900,000 | |
Buildings and Improvements [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Open purchase commitments | 6,100,000 | $ 9,300,000 | ||
Contractual obligation | $ 11,200,000 | 6,100,000 | ||
Payments on construction of the building | 1,900,000 | 5,100,000 | ||
Contractual obligation due in fiscal 2017 | 4,300,000 | 1,100,000 | ||
Contractual obligation due in fiscal 2018 | 3,800,000 | 3,800,000 | ||
Contractual obligation due in fiscal 2019 | 1,200,000 | $ 1,200,000 | ||
Buildings and Improvements [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Percentage rate added to variable rate | 2.25% | |||
Variable interest rate | 30 day LIBOR rate | |||
Buildings and Improvements [Member] | Letter of Credit [Member] | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Letter of credit | $ 5,000,000 | |||
Unused fee calculated on letter of credit | 0.10% |
Common Stock Repurchase Program (Detail) - Common Stock - USD ($) |
6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Oct. 30, 2016 |
Nov. 01, 2015 |
May 01, 2016 |
Jun. 15, 2016 |
|
Stockholders Equity Note [Line Items] | ||||
Common stock repurchased | 100,776 | |||
Common Stock Repurchase Program June 15, 2016 [Member] | ||||
Stockholders Equity Note [Line Items] | ||||
Authorization amount for repurchase of common stock | $ 5,000,000 | |||
Common stock repurchased | 0 | 0 | ||
Remaining authorized repurchase amount | $ 5,000,000 |
Dividend Program (Detail) - USD ($) $ / shares in Units, $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Dec. 01, 2016 |
Oct. 30, 2016 |
Nov. 01, 2015 |
|
Dividends [Line Items] | |||
Cash dividends paid | $ 4,307 | $ 6,417 | |
Special Dividend [Member] | |||
Dividends [Line Items] | |||
Cash dividends paid | $ 2,500 | $ 5,000 | |
Cash dividend payment, per share | $ 0.21 | $ 0.40 | |
Quarterly Dividend [Member] | |||
Dividends [Line Items] | |||
Cash dividends paid | $ 1,800 | $ 1,400 | |
Cash dividend payment, per share | $ 0.07 | $ 0.06 | |
Subsequent Event [Member] | Quarterly Dividend [Member] | |||
Dividends [Line Items] | |||
Increase in cash dividend, percentage | 14.00% | ||
Cash dividend declared, per share | $ 0.08 | ||
Cash dividend declared, payment date | Jan. 17, 2017 | ||
Cash dividend declared, date of record | Jan. 03, 2017 |
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