Segment Information (Tables)

12 Months Ended

May 03, 2020

Segment Reporting [Abstract]

Summary of Segment Information by Geographic Area

International sales accounted for 26%, 26%, and 23% of net sales during fiscal 2020, 2019, and 2018, respectively, and are summarized by geographic area as follows:

(dollars in thousands)	2020		2019		2018
north america (excluding USA) (1)	$	27,637	$	29,247	$	27,844
far east and asia (2)		36,470		39,277		40,671
all other areas		2,986		3,712		5,681
	$	67,093	$	72,236	$	74,196

(1) Of this amount, $21.7 million, $22.5 million, and $21.9 million are attributable to shipments to Mexico in fiscal 2020, 2019, and 2018, respectively.

(2) Of this amount $21.4 million, $29.8 million, and $32.6 million are attributable to shipments to China in fiscal 2020, 2019, and 2018, respectively.

Schedule of Operating Segments Information

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

(dollars in thousands)	2020			2019			2018
net sales by segment:
upholstery fabrics	$	124,754			135,654			131,128
mattress fabrics		131,412			145,671			192,597
total net sales	$	256,166			281,325			323,725
gross profit from continuing operations by segment:
upholstery fabrics	$	24,220			25,373			25,836
mattress fabrics		16,278			22,904			38,797
total segment gross profit		40,498			48,277			64,633
other non-recurring charges (1)		—			(159	)		—
restructuring related charges (2)		—			(2,349	)		—
total gross profit from continuing operations	$	40,498			45,769			64,633
selling, general, and administrative expenses by segment:
upholstery fabrics	$	14,353			14,551			14,881
mattress fabrics		11,354			11,296			12,935
unallocated corporate		8,717			6,838			9,356
total segment selling, general, and administrative expenses		34,424			32,685			37,172
other non-recurring charges (3)		—			518			—
restructuring related charges (4)		—			40			—
total selling, general, and administrative expenses	$	34,424			33,243			37,172
income (loss) from continuing operations:
upholstery fabrics	$	9,867			10,823			10,956
mattress fabrics		4,924			11,607			25,861
unallocated corporate expenses		(8,717	)		(6,838	)		(9,356	)
total segment income from continuing operations		6,074			15,592			27,461
asset impairments (7)		(13,712	)		—			—
other non-recurring charges (1) (3)		—			(678	)		—
restructuring credit and related charges (5) (6)		70			(1,563	)		—
total (loss) income from continuing operations		(7,568	)		13,351			27,461
interest expense		(106	)		(35	)		(94	)
interest income		897			789			534
other expense		(902	)		(1,383	)		(1,018	)
(loss) income before income taxes from continuing operations	$	(7,679	)		12,722			26,883

(1) The $159 represents employee termination benefits and other operational reorganization costs associated with our mattress fabrics segment.

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

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

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

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

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

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

Balance sheet information for our current operating segments follow:

(dollars in thousands)	May 3, 2020			April 28, 2019
segment assets
mattress fabrics
accounts receivable	$	12,212		$	12,098
inventory		26,620			24,649
property, plant, and equipment		40,682	(1)		44,266	(2)
right of use asset		362	(3)		—
investment in unconsolidated joint venture		1,602			1,508
total mattress fabrics assets		81,478			82,521
upholstery fabrics
accounts receivable		12,881			11,274
inventory		21,287			22,915
property, plant, and equipment		1,633	(4)		1,795	(5)
right of use asset		1,633	(6)		—
total upholstery fabrics assets		37,434			35,984
total segment assets		118,912			118,505
non-segment assets
cash and cash equivalents		69,790			40,008
short-term investments – available for sale		923			—
short-term investments – held-to-maturity		4,271			5,001
current income taxes receivable		1,585			776
current assets held for sale - discontinued operation		—			3,707
deferred income taxes		793			457
other current assets		2,116			2,816
property, plant, and equipment (7)		832			419
right of use asset (8)		1,908			—
goodwill		—			13,569
intangible assets		3,380			3,899
long-term investments - held-to-maturity		2,076			—
long-term investments - rabbi trust		7,834			7,081
noncurrent income taxes receivable		—			733
long-term note receivable affiliated with discontinued operation		—			830
other assets		664			643
noncurrent assets held for sale - discontinued operation		—			22,112
total assets	$	215,084		$	220,556

(dollars in thousands)	2020		2019		2018
capital expenditures (9):
mattress fabrics	$	3,475	$	2,526	$	6,713
upholstery fabrics		348		382		488
discontinued operation		135		53		—
unallocated corporate		675		14		238
total capital expenditures	$	4,633	$	2,975	$	7,439
depreciation expense
mattress fabrics	$	6,712	$	7,008	$	6,850
upholstery fabrics		765		787		822
discontinued operation		350		322		—
total depreciation expense	$	7,827	$	8,117	$	7,672

(1) The $40.7 million at May 3, 2020, represents property, plant, and equipment located in the U.S. of $27.7 million and located in Canada of $13.0 million.

(2) The $44.3 million at April 28, 2019, represents property, plant, and equipment located in the U.S. of $32.4 million and located in Canada of $11.9 million.

(3) The $362 at May 3, 2020, represents right of use assets located in the U.S.

(4) The $1.6 million at May 3, 2020, represents property, plant, and equipment located in the U.S. of $1.2 million and located in China of $471.

(5) The $1.8 million at April 28, 2019, represents property, plant, and equipment located in the U.S. of $1.2 million and located in China of $591.

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

(7) The $832 and $419 at May 3, 2020, and April 28, 2019, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress fabrics and upholstery fabrics segments located in the U.S.

(8) The $1.9 million at May 3, 2020, represents right of use assets located in the U.S.

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