Document and Entity Information
Document and Entity Information | 6 Months Ended |
Nov. 01, 2015shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Nov. 1, 2015 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q2 |
Trading Symbol | CFI |
Entity Registrant Name | CULP INC |
Entity Central Index Key | 723,603 |
Current Fiscal Year End Date | --05-01 |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 12,350,265 |
CONSOLIDATED STATEMENTS OF NET
CONSOLIDATED STATEMENTS OF NET INCOME (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 01, 2015 | Nov. 02, 2014 | Nov. 01, 2015 | Nov. 02, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 76,956 | $ 73,991 | $ 157,141 | $ 150,051 |
Cost of sales | 61,223 | 61,713 | 125,206 | 125,058 |
Gross profit | 15,733 | 12,278 | 31,935 | 24,993 |
Selling, general and administrative expenses | 9,433 | 7,379 | 18,175 | 14,798 |
Income from operations | 6,300 | 4,899 | 13,760 | 10,195 |
Interest expense | 67 | |||
Interest income | (69) | (153) | (112) | (294) |
Other expense | 225 | 162 | 320 | 73 |
Income before income taxes | 6,144 | 4,890 | 13,552 | 10,349 |
Income taxes | 2,373 | 1,889 | 5,081 | 4,003 |
Net income | $ 3,771 | $ 3,001 | $ 8,471 | $ 6,346 |
Net income per share, basic | $ 0.31 | $ 0.25 | $ 0.69 | $ 0.52 |
Net income per share, diluted | $ 0.30 | $ 0.24 | $ 0.68 | $ 0.51 |
Average shares outstanding, basic | 12,343 | 12,218 | 12,310 | 12,215 |
Average shares outstanding, diluted | 12,484 | 12,401 | 12,481 | 12,403 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 01, 2015 | Nov. 02, 2014 | Nov. 01, 2015 | Nov. 02, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 3,771 | $ 3,001 | $ 8,471 | $ 6,346 |
Unrealized gains (losses) on investments | ||||
Unrealized holding losses on investments | (29) | (18) | (118) | (28) |
Reclassification adjustment for realized loss included in net income | 56 | 56 | ||
Total other comprehensive income (loss) | 27 | (18) | (62) | (28) |
Comprehensive income | $ 3,798 | $ 2,983 | $ 8,409 | $ 6,318 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Nov. 01, 2015 | May. 03, 2015 | [1] | Nov. 02, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 31,176 | $ 29,725 | $ 28,953 | |
Short-term investments | 6,320 | 10,004 | 6,318 | |
Accounts receivable, net | 23,314 | 28,749 | 25,045 | |
Inventories | 46,479 | 42,484 | 38,228 | |
Deferred income taxes | 7,754 | 4,790 | 6,191 | |
Income taxes receivable | 75 | 229 | ||
Other current assets | 2,614 | 2,440 | 2,303 | |
Total current assets | 117,732 | 118,421 | 107,038 | |
Property, plant and equipment, net | 38,319 | 36,078 | 33,204 | |
Goodwill | 11,462 | 11,462 | 11,462 | |
Deferred income taxes | 382 | 447 | 508 | |
Long-term investments | 3,279 | 2,415 | 1,911 | |
Other assets | 2,494 | 2,545 | 2,539 | |
Total assets | 173,668 | 171,368 | 156,662 | |
Current liabilities: | ||||
Current maturities of long-term debt | 2,200 | 2,200 | ||
Accounts payable-trade | 25,221 | 28,414 | 25,450 | |
Accounts payable - capital expenditures | 1,269 | 990 | 178 | |
Accrued expenses | 9,895 | 11,129 | 7,723 | |
Income taxes payable - current | 305 | 325 | 268 | |
Total current liabilities | 36,690 | 43,058 | 35,819 | |
Income taxes payable - long-term | 3,655 | 3,792 | 3,980 | |
Deferred income taxes | 5,927 | 1,050 | 1,395 | |
Deferred compensation | 4,421 | 4,041 | 3,794 | |
Total liabilities | $ 50,693 | $ 51,941 | $ 44,988 | |
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 12,350,265 at November 1, 2015; 12,218,521 at November 2, 2014; and 12,219,121 at May 3, 2015 | $ 618 | $ 611 | $ 611 | |
Capital contributed in excess of par value | 44,708 | 43,159 | 42,658 | |
Accumulated earnings | 77,806 | 75,752 | 68,493 | |
Accumulated other comprehensive loss | (157) | (95) | (88) | |
Total shareholders' equity | 122,975 | 119,427 | 111,674 | |
Total liabilities and shareholders' equity | $ 173,668 | $ 171,368 | $ 156,662 | |
[1] | Derived from audited financial statements. |
CONSOLIDATED BALANCE SHEETS (U5
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Nov. 01, 2015 | May. 03, 2015 | [1] | Nov. 02, 2014 |
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 | 12,350,265 | 12,219,121 | 12,218,521 | |
Common stock, outstanding | 12,350,265 | 12,219,121 | 12,218,521 | |
[1] | Derived from audited financial statements. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | ||
Nov. 01, 2015 | Nov. 02, 2014 | ||
Cash flows from operating activities: | |||
Net income | $ 8,471 | $ 6,346 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 3,184 | 2,812 | |
Amortization of other assets | 86 | 94 | |
Stock-based compensation | 1,339 | 291 | |
Excess tax benefit related to stock-based compensation | (838) | (108) | |
Deferred income taxes | 2,816 | 2,061 | |
Gain on sale of equipment | (60) | (35) | |
Realized loss on sale of short-term investments | 56 | ||
Foreign currency gains | (13) | (171) | |
Changes in assets and liabilities: | |||
Accounts receivable | 4,892 | 2,360 | |
Inventories | (4,135) | 2,467 | |
Other current assets | (302) | 34 | |
Other assets | 8 | (36) | |
Accounts payable - trade | (2,921) | (1,275) | |
Accrued expenses and deferred compensation | (1,547) | (324) | |
Income taxes | 168 | 22 | |
Net cash provided by operating activities | 11,204 | 14,538 | |
Cash flows from investing activities: | |||
Capital expenditures | (5,255) | (5,087) | |
Proceeds from the sale of equipment | 225 | 391 | |
Proceeds from the sale of life insurance policies | 320 | ||
Proceeds from the sale of short-term investments | 3,612 | 1,628 | |
Purchase of short-term investments | (46) | (1,675) | |
Purchase of long-term investments | (864) | (1,146) | |
Net cash used in investing activities | (2,328) | (5,569) | |
Cash flows from financing activities: | |||
Payments on line of credit | (538) | ||
Payments on long-term debt | (2,200) | (2,200) | |
Repurchase of common stock | (745) | ||
Dividends paid | (6,417) | (6,113) | |
Payments on debt issuance costs | (43) | ||
Proceeds from common stock issued | 126 | 89 | |
Excess tax benefit related to stock-based compensation | 838 | 108 | |
Net cash used in financing activities | (7,696) | (9,399) | |
Effect of exchange rate changes on cash and cash equivalents | 271 | 80 | |
Increase (decrease) in cash and cash equivalents | 1,451 | (350) | |
Cash and cash equivalents at beginning of period | 29,725 | [1] | 29,303 |
Cash and cash equivalents at end of period | $ 31,176 | $ 28,953 | |
[1] | Derived from audited financial statements. |
CONSOLIDATED STATEMENTS OF SHAR
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 Apr. 27, 2014 | $ 111,744 | $ 612 | $ 42,932 | $ 68,260 | $ (60) | |
Balance (in shares) at Apr. 27, 2014 | 12,250,030 | |||||
Net income | 6,346 | |||||
Unrealized loss on investments | (28) | |||||
Balance at Nov. 02, 2014 | 111,674 | |||||
Balance at Apr. 27, 2014 | 111,744 | $ 612 | 42,932 | 68,260 | (60) | |
Balance (in shares) at Apr. 27, 2014 | 12,250,030 | |||||
Net income | 15,071 | 15,071 | ||||
Stock-based compensation | 786 | 786 | ||||
Unrealized loss on investments | (35) | (35) | ||||
Excess tax benefit related to stock based compensation | 109 | 109 | ||||
Common stock repurchased | (745) | $ (2) | (743) | |||
Common stock repurchased (in shares) | (43,014) | |||||
Fully vested common stock award | 3,000 | |||||
Common stock issued in connection with exercise of stock options (in shares) | 10,100 | |||||
Common stock issued in connection with exercise of stock options | 94 | $ 1 | 93 | |||
Common stock surrendered for withholding taxes payable | (18) | (18) | ||||
Common stock surrendered for withholding taxes payable (in shares) | (995) | |||||
Dividends paid | (7,579) | (7,579) | ||||
Balance at May. 03, 2015 | [1] | 119,427 | $ 611 | 43,159 | 75,752 | (95) |
Balance (in shares) at May. 03, 2015 | [1] | 12,219,121 | ||||
Net income | 8,471 | 8,471 | ||||
Stock-based compensation | 1,339 | 1,339 | ||||
Unrealized loss on investments | (62) | (62) | ||||
Excess tax benefit related to stock based compensation | 838 | 838 | ||||
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) | 38,500 | |||||
Common stock issued in connection with exercise of stock options | 126 | $ 2 | 124 | |||
Common stock surrendered for withholding taxes payable | (747) | $ (1) | (746) | |||
Common stock surrendered for withholding taxes payable (in shares) | (26,211) | |||||
Dividends paid | (6,417) | (6,417) | ||||
Balance at Nov. 01, 2015 | $ 122,975 | $ 618 | $ 44,708 | $ 77,806 | $ (157) | |
Balance (in shares) at Nov. 01, 2015 | 12,350,265 | |||||
[1] | Derived from audited financial statements. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Nov. 01, 2015 | |
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 17, 2015 for the fiscal year ended May 3, 2015. The company’s six months ended November 1, 2015 and November 2, 2014, represent 26 and 27 week periods, respectively. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Nov. 01, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies As of November 1, 2015, 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 then ended May 3, 2015. Recently Adopted Accounting Pronouncements None Recently Issued Accounting Pronouncements 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 be effective in our fiscal 2017 first quarter. 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. Currently, we 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. We are currently assessing the impact that this guidance will have on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, which amends ASC Topic 606, Revenue from Contracts with Customers. Revenue from Contracts with Customers: Deferral of the Effective Date In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Nov. 01, 2015 | |
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 is intended to update and replace 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. Incentive Stock Option Awards We did not grant any incentive stock option awards through the second quarter of fiscal 2016. At November 1, 2015, options to purchase 99,600 shares of common stock were outstanding and exercisable, had a weighted average exercise price of $7.78 per share, and a weighted average contractual term of 2.0 years. At November 1, 2015, the aggregate intrinsic value for options outstanding and exercisable was $2.2 million. The aggregate intrinsic value for options exercised for the six months ending November 1, 2015 and November 2, 2014, was $1.0 million and $80,000, respectively. At November 1, 2015, there were no unvested incentive stock option awards. Therefore, there was no unrecognized compensation cost related to incentive stock option awards at November 1, 2015. No compensation expense was recorded on incentive stock options for the six months ended November 1, 2015 and November 2, 2014, respectively. Common Stock Awards 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. On October 1, 2014, 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 $17.95 per share, which represents the closing price of our common stock at the date of grant. We recorded $95,000 and $54,000 of compensation expense within selling, general, and administrative expense for these common stock awards for the six months ending November 1, 2015, and November 2, 2014, respectively. Time Vested Restricted Stock Awards We did not grant any time vested restricted stock awards through the second quarter of fiscal 2016. At November 1, 2015, there were no outstanding and unvested shares of time vested restricted stock. Therefore, there was no unrecognized compensation cost related to time vested restricted stock awards at November 1, 2015. No compensation expense was recorded on time vested restricted stock awards for the six months ended November 1, 2015. We recorded $4,000 within selling, general, and administrative expense for time vested restricted stock awards for the six months ended November 2, 2014. During the six month period ending November 2, 2014, 61,667 shares of time vested restricted stock vested and had a weighted average fair value of $257,000 or $4.17 per share. Performance Based Restricted Stock Units 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 November 1, 2015, this grant was unvested and was measured at $30.01 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 Grant 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 November 1, 2015, this grant was unvested and was measured at $30.01 per share, which represents the closing price of the company’s common stock at the end of the reporting period. The vesting of these awards is over the requisite service periods of 16 months and 28 months for performance based restricted stock units which could earn up to 12,000 and 16,000 shares of common stock, respectively. Fiscal 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. 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 six month period ending November 1, 2015, 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. As of November 1, 2015, our fiscal 2013 grant was fully vested. Overall We recorded compensation expense of $1.2 million and $233,000 within selling, general, and administrative expense for performance based restricted stock units for the six month periods ending November 1, 2015 and November 2, 2014, 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 November 1, 2015, the remaining unrecognized compensation cost related to the performance based restricted stock units was $4.9 million, which is expected to be recognized over a weighted average vesting period of 2.3 years. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Nov. 01, 2015 | |
Receivables [Abstract] | |
Accounts Receivable | 4. Accounts Receivable A summary of accounts receivable follows: (dollars in thousands) November 1, 2015 November 2, 2014 May 3, 2015 Customers $ 25,045 $ 26,082 $ 30,338 Allowance for doubtful accounts (826 ) (442 ) (851 ) Reserve for returns and allowances and discounts (905 ) (595 ) (738 ) $ 23,314 $ 25,045 $ 28,749 A summary of the activity in the allowance for doubtful accounts follows: Six months ended (dollars in thousands) November 1, 2015 November 2, 2014 Beginning balance $ (851 ) $ (573 ) Provision for bad debts (81 ) 57 Net write-offs, net of recoveries 106 74 Ending balance $ (826 ) $ (442 ) A summary of the activity in the allowance for returns and allowances and discounts accounts follows: Six months ended (dollars in thousands) November 1, 2015 November 2, 2014 Beginning balance $ (738 ) $ (479 ) Provision for returns, allowances and discounts (1,561 ) (1,334 ) Credits issued 1,394 1,218 Ending balance $ (905 ) $ (595 ) |
Inventories
Inventories | 6 Months Ended |
Nov. 01, 2015 | |
Inventory Disclosure [Abstract] | |
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: (dollars in thousands) November 1, 2015 November 2, 2014 May 3, 2015 Raw materials $ 6,272 $ 5,657 $ 5,374 Work-in-process 2,779 2,190 2,766 Finished goods 37,428 30,381 34,344 $ 46,479 $ 38,228 $ 42,484 |
Other Assets
Other Assets | 6 Months Ended |
Nov. 01, 2015 | |
Text Block [Abstract] | |
Other Assets | 6. Other Assets A summary of other assets follows: (dollars in thousands) November 1, 2015 November 2, 2014 May 3, 2015 Cash surrender value – life insurance $ 339 $ 320 $ 339 Non-compete agreement, net 941 1,017 979 Customer relationships, net 740 791 766 Other 474 411 461 $ 2,494 $ 2,539 $ 2,545 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 November 1, 2015, November 2, 2014 and May 3, 2015, respectively. At November 1, 2015 and May 3, 2015, accumulated amortization for our non-compete agreement was $1.1 million. At November 2, 2014 accumulated amortization for our non-compete agreement was $1.0 million. Amortization expense for our non-compete agreement was $38,000 for the six month periods ended November 1, 2015 and November 2, 2014. The remaining amortization expense for the next five fiscal years and thereafter follows: FY 2016 - - - - $75,000 and Thereafter - The weighted average amortization period for our non-compete agreement is 12.5 years as of November 1, 2015. 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 November 1, 2015, November 2, 2014, and May 3, 2015, respectively. Accumulated amortization for our customer relationships was $128,000, $77,000, and $102,000 at November 1, 2015, November 2, 2014, and May 3, 2015, respectively. Amortization expense for our customer relationships was $26,000 for the six months ending November 1, 2015 and November 2, 2014. The remaining amortization expense for the next five fiscal years and thereafter follows: FY 2016 - - - - - and Thereafter - The weighted average amortization period for our customer relationships is 14.5 years as of November 1, 2015. Cash Surrender Value – Life Insurance At November 1, 2015, November 2, 2014 and May 3, 2015 we had one life insurance contract with a death benefit of $1.4 million. Our cash surrender value – life insurance balances totaling $339,000, $320,000 and $339,000 at November 1, 2015, November 2, 2014, and May 3, 2015, respectively, are collectible upon death of the respective insured. On May 16, 2014, we entered into an agreement with a former employee and his irrevocable trust (the “Trust”) dated September 7, 1995. As a result of this agreement, a previous split dollar life insurance agreement in which we purchased a policy on the life of this former employee and his spouse, in which we retained ownership of the policy, paid premiums to support the policy, had the right to receive cash surrender value of the policy upon the second to die of the former employee and his spouse, with the Trust receiving the remainder of the policy’s death benefit ($2.5 million), was terminated. In connection with the termination of the previous split dollar life insurance agreement, we transferred the life insurance policy to the Trust and received cash proceeds in the amount of the cash surrender value policy totaling $320,000 during the second quarter of fiscal 2015. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Nov. 01, 2015 | |
Text Block [Abstract] | |
Accrued Expenses | 7. Accrued Expenses A summary of accrued expenses follows: (dollars in thousands) November 1, 2015 November 2, 2014 May 3, 2015 Compensation, commissions and related benefits $ 6,657 $ 4,969 $ 9,081 Advertising rebates 2,536 1,853 1,002 Interest - 38 37 Other accrued expenses 702 863 1,009 $ 9,895 $ 7,723 $ 11,129 |
Long-Term Debt and Lines of Cre
Long-Term Debt and Lines of Credit | 6 Months Ended |
Nov. 01, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Lines of Credit | 8. Long-Term Debt and Lines of Credit A summary of long-term debt follows: (dollars in thousands) November 1, 2015 November 2, 2014 May 3, 2015 Unsecured senior term notes $ - $ 2,200 $ 2,200 Current maturities of long-term debt - (2,200 ) (2,200 ) Long-term debt, less current maturities of long-term debt $ - $ - $ - Unsecured Senior Term Notes We entered into a note agreement dated August 11, 2008 that provided for the issuance of $11.0 million of unsecured senior term notes with a fixed interest rate of 8.01% and a term of seven years. Principal payments of $2.2 million per year were due on the notes beginning August 11, 2011. Any principal pre-payments would have been assessed a penalty as defined in the agreement. The agreement contained customary financial and other covenants as defined in the agreement. On August 11, 2015, we paid our last annual payment of $2.2 million and this agreement has been paid in full. Revolving Credit Agreement – United States As of May 3, 2015, we had an unsecured credit agreement with Wells Fargo Bank, N.A. (“Wells Fargo”) that provided for an unsecured revolving loan commitment of $10.0 million to be used to finance working capital and general corporate purposes. Any borrowings that are outstanding under the credit agreement with Culp Europe noted below will decrease the $10.0 million available. Interest is charged at a rate (applicable interest rate of 1.69%, 1.76%, and 1.78% at November 1, 2015, November 2, 2014, and May 3, 2015, respectively) equal to the one-month LIBOR rate plus a spread based on our ratio of debt to EBITDA as defined in the agreement. The Credit Agreement contained customary financial and other covenants as defined in the agreement and was set to expire on August 31, 2015. Effective July 10, 2015, we amended the Credit Agreement to extend the expiration date to August 31, 2017, and maintain an annual capital expenditure limit of $12 million. At November 1, 2015 and May 3, 2015 there was a $250,000 outstanding letter of credit (all of which related to workers compensation). At November 2, 2014, there was a $195,000 outstanding letter of credit (all of which related to workers compensation). At November 1, 2015, November 2, 2014, and May 3, 2015, there were no borrowings outstanding under the Credit Agreement. 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 RMB (approximately $6.3 million USD at November 1, 2015), expiring on February 9, 2016. This agreement has an interest rate determined by the Chinese government. There were no borrowings outstanding under the agreement as of November 1, 2015, November 2, 2014, and May 3, 2015. Revolving Credit Agreement – Europe In connection with the Wells Fargo credit agreement noted above, any outstanding borrowings associated with Culp Europe would decrease the $10 million available under the credit agreement and incur interest at the EURO LIBOR plus 2%. At November 1, 2015, no borrowings were outstanding under this agreement, as the outstanding balance was paid in full during the second quarter of fiscal 2015. Overall Our loan agreements require, among other things, that we maintain compliance with certain financial covenants. At November 1, 2015, the company was in compliance with these financial covenants. The fair value of the company’s long-term debt is estimated by discounting the future cash flows at rates currently offered to the company for similar debt instruments of comparable maturities. At November 2, 2014, the carrying value of the company’s long-term debt was $2.2 million and the fair value was $2.3 million. At May 3, 2015, the carrying value of the company’s long-term debt was $2.2 million and the fair value was $2.3 million. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Nov. 01, 2015 | |
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 and liabilities measured at fair value on a recurring basis: 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 November 2, 2014 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: Limited Term Bond Fund $ 2,576 N/A N/A $ 2,576 Low Duration Bond Fund 2,081 N/A N/A 2,081 Premier Money Market Fund 1,818 N/A N/A 1,818 Intermediate Term Bond Fund 1,661 N/A N/A 1,661 Other 93 N/A N/A 93 Fair value measurements at May 3, 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: Limited Term Bond Fund $ 3,107 N/A N/A $ 3,107 Premier Money Market Fund 2,285 N/A N/A 2,285 Intermediate Term Bond Fund 2,181 N/A N/A 2,181 Low Duration Bond Fund 2,096 N/A N/A 2,096 Strategic Income Fund 1,008 N/A N/A 1,008 Growth Allocation Fund 85 N/A N/A 85 Other 45 N/A N/A 45 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. Our short-term investments include short-term bond funds and deposit accounts that have a maturity of more than three months, are classified as available-for-sale, and their unrealized gains or losses are included in other comprehensive income (loss). Our short-term bond funds were recorded at their fair value of $6.3 million, $6.3 million and $10.0 million at November 1, 2015, November 2, 2014, and May 3, 2015, respectively. Our short-term bond funds had an accumulated unrealized loss totaling $171,000, $88,000, and $95,000 at November 1, 2015, November 2, 2014, and May 3, 2015, respectively. At November 1, 2015, November 2, 2014, and May 3, 2015, the fair value of our short-term bond funds approximated its cost basis. 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 its fair value of $3.3 million, $1.9 million, and $2.4 million at November 1, 2015, November 2, 2014, and May 3, 2015, respectively. Our long-term investments had an accumulated unrealized gain of $14,000 at November 1, 2015. At November 2, 2014 and May 3, 2015, our accumulated gains or losses regarding our long-term investments were immaterial. The fair value of our long-term investments approximates its cost basis. 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. |
Cash Flow Information
Cash Flow Information | 6 Months Ended |
Nov. 01, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow Information | 10. Cash Flow Information Interest and income taxes paid are as follows: Six months ended (dollars in thousands) November 1, 2015 November 2, 2014 Interest $ 86 $ 180 Net income tax payments, net 2,088 1,943 Interest costs charged to operations and incurred on our long-term debt and lines of credit were $49,000 and $148,000 for the six months ended November 1, 2015 and November 2, 2014, respectively. Interest costs of $49,000 and $81,000 for the construction of qualifying fixed assets were capitalized and will be amortized over the related assets’ useful lives for the six months ended November 1, 2015 and November 2, 2014, respectively. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Nov. 01, 2015 | |
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: Three months ended (amounts in thousands) November 1, 2015 November 2, 2014 Weighted average common shares outstanding, basic 12,343 12,218 Dilutive effect of stock-based compensation 141 183 Weighted average common shares outstanding, diluted 12,484 12,401 All options to purchase shares of common stock were included in the computation of diluted net income for the three months ended November 1, 2015 and November 2, 2014, as the exercise price of the options was less than the average market price of the common shares. Six months ended (amounts in thousands) November 1, 2015 November 2, 2014 Weighted average common shares outstanding, basic 12,310 12,215 Dilutive effect of stock-based compensation 171 188 Weighted average common shares outstanding, diluted 12,481 12,403 All options to purchase shares of common stock were included in the computation of diluted net income for the six months ended November 1, 2015 and November 2, 2014, as the exercise price of the options was less than the average market price of the common shares. |
Segment Information
Segment Information | 6 Months Ended |
Nov. 01, 2015 | |
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: Three months ended (dollars in thousands) November 1, 2015 November 2, 2014 Net sales: Mattress Fabrics $ 45,436 $ 43,038 Upholstery Fabrics 31,520 30,953 $ 76,956 $ 73,991 Gross profit: Mattress Fabrics $ 9,456 $ 7,324 Upholstery Fabrics 6,277 4,954 $ 15,733 $ 12,278 Selling, general, and administrative expenses: Mattress Fabrics $ 2,989 $ 2,592 Upholstery Fabrics 3,813 3,285 Total segment selling, general, and administrative expenses 6,802 5,877 Unallocated corporate expenses 2,631 1,502 $ 9,433 $ 7,379 Income from operations: Mattress Fabrics $ 6,467 $ 4,733 Upholstery Fabrics 2,464 1,668 Total segment income from operations 8,931 6,401 Unallocated corporate expenses (2,631 ) (1,502 ) Total income from operations 6,300 4,899 Interest income 69 153 Other expense (225 ) (162 ) Income before income taxes $ 6,144 $ 4,890 Financial information for the company’s operating segments follows: Six months ended (dollars in thousands) November 1, 2015 November 2, 2014 Net sales: Mattress Fabrics $ 93,245 $ 85,860 Upholstery Fabrics 63,896 64,191 $ 157,141 $ 150,051 Gross profit: Mattress Fabrics $ 19,381 $ 14,527 Upholstery Fabrics 12,554 10,466 $ 31,935 $ 24,993 Selling, general, and administrative expenses: Mattress Fabrics $ 5,912 $ 5,166 Upholstery Fabrics 7,409 6,737 Total segment selling, general, and administrative expenses 13,321 11,903 Unallocated corporate expenses 4,854 2,895 $ 18,175 $ 14,798 Income from operations: Mattress Fabrics $ 13,468 $ 9,361 Upholstery Fabrics 5,146 3,729 Total segment income from operations 18,614 13,090 Unallocated corporate expenses (4,854 ) (2,895 ) Total income from operations 13,760 10,195 Interest expense - (67 ) Interest income 112 294 Other expense (320 ) (73 ) Income before income taxes $ 13,552 $ 10,349 Balance sheet information for the company’s operating segments follow: (dollars in thousands) November 1, 2015 November 2, 2014 May 3, 2015 Segment assets: Mattress Fabrics Current assets (1) $ 40,937 $ 35,406 $ 41,328 Non-compete agreement 941 1,017 979 Customer relationships 740 791 766 Goodwill 11,462 11,462 11,462 Property, plant and equipment (2) 36,050 30,938 33,773 Total mattress fabrics assets 90,130 79,614 88,308 Upholstery Fabrics Current assets (1) 28,856 27,867 29,905 Property, plant and equipment (3) 1,474 1,578 1,467 Total upholstery fabrics assets 30,330 29,445 31,372 Total segment assets 120,460 109,059 119,680 Non-segment assets: Cash and cash equivalents 31,176 28,953 29,725 Short-term investments 6,320 6,318 10,004 Deferred income taxes 8,136 6,699 5,237 Income taxes receivable 75 - 229 Other current assets 2,614 2,303 2,440 Property, plant and equipment (4) 795 688 838 Long-term investments 3,279 1,911 2,415 Other assets 813 731 800 Total assets $ 173,668 $ 156,662 $ 171,368 Six months ended (dollars in thousands) November 1, 2015 November 2, 2014 Capital expenditures (5): Mattress Fabrics $ 5,138 $ 4,692 Upholstery Fabrics 254 258 Unallocated Corporate 143 38 Total capital expenditures $ 5,535 $ 4,988 Depreciation expense: Mattress Fabrics $ 2,783 $ 2,448 Upholstery Fabrics 401 364 Total depreciation expense $ 3,184 $ 2,812 (1) Current assets represent accounts receivable and inventory for the respective segment. (2) 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 $30.9 million at November 2, 2014, represents property, plant, and equipment of $22.2 million and $8.7 million located in the U.S. and Canada, respectively. The $33.8 million at May 3, 2015, represents property, plant, and equipment of $23.8 million and $10.0 million located in the U.S. and Canada, respectively. (3) 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 November 2, 2014, represents property, plant, and equipment of $977 and $601 located in the U.S. and China, respectively. The $1.5 million at May 3, 2015, represents property, plant, and equipment of $848 and $619 located in the U.S. and China, respectively. (4) The $795, $688, and $838 at November 1, 2015, November 2, 2014 and May 3, 2015, 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. |
Income Taxes
Income Taxes | 6 Months Ended |
Nov. 01, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes Effective Income Tax Rate We recorded income tax expense of $5.1 million, or 37.5% of income before income tax expense, for the six month period ended November 1, 2015, compared to income tax expense of $4.0 million or 38.7% of income before income tax expense, for the six month period ended November 2, 2014. Our effective income tax rates for the six month periods ended November 1, 2015 and November 2, 2014, 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 currencies in relation to the U.S. dollar. The following schedule summarizes the principal differences between income tax expense at the federal income tax rate and the effective income tax rate reflected in the consolidated financial statements: 2016 2015 federal income tax rate 34.0 % 34.0 % foreign tax rate differential (4.9 ) (5.6 ) undistributed earnings from foreign subsidiaries 4.5 3.7 increase in liability for uncertain tax positions 3.1 4.1 other 0.8 2.5 37.5 % 38.7 % 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 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 November 2, 2014, we recorded a partial valuation allowance of $1.1 million, of which $666,000 pertained to certain U.S. state net operating loss carryforwards and credits and $456,000 pertained to loss carryfowards associated with our Culp Europe operation located in Poland. Based on our assessment at May 3, 2015, we recorded a partial valuation allowance of $922,000, of which $561,000 pertained to certain U.S. state net operating loss carryforwards and credits and $361,000 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 November 1, 2015, November 2, 2014, and May 3, 2015, respectively. The recorded valuation allowance of $938,000 at November 1, 2015, 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 November 1, 2015, 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 November 1, 2015, the net 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 November 2, 2014, the net deferred tax liability associated with our undistributed earnings from our foreign subsidiaries totaled $2.2 million, which included U.S. income and foreign withholding taxes totaling $30.6 million, offset by U.S. foreign income tax credits of $28.4 million. At May 3, 2015, the net deferred tax liability associated with our undistributed earnings from our foreign subsidiaries totaled $1.7 million, which included U.S. income and foreign withholding taxes totaling $32.4 million, offset by U.S. foreign income tax credits of $30.7 million. We had accumulated earnings from our foreign subsidiaries totaling $93.2 million, $78.9 million, and $85.2 million at November 1, 2015, November 2, 2014, and May 3, 2015, respectively. Overall At November 1, 2015, the current deferred tax asset of $7.7 million represents $7.2 million and $516,000 from our operations located in the U.S. and China, respectively. At November 1, 2015, the non-current deferred tax asset of $382,000 pertains to our operations located in China. At November 1, 2015, the non-current deferred tax liability of $5.9 million represents $4.7 million and $1.2 million from our operations located in the U.S. and Canada, respectively. At November 2, 2014, the current deferred tax asset of $6.2 million represents $5.8 million and $428,000 from our operations located in the U.S. and China, respectively. At November 2, 2014, the non-current deferred tax asset of $508,000 pertained to our operations located in China. At November 2, 2014, the non-current deferred tax liability of $1.4 million represented $886,000 and $509,000 from our operations located in Canada and the U.S., respectively. At May 3, 2015, the current deferred tax asset of $4.8 million represents $4.4 million and $421,000 from our operations located in the U.S. and China, respectively. At May 3, 2015, the non-current deferred tax asset of $447,000 pertained to our operations located in China. At May 3, 2015, the non-current deferred tax liability of $1.1 million represents $896,000 and $154,000 from our operations located in Canada and the U.S., respectively. Uncertainty In Income Taxes At November 1, 2015, we had a $14.2 million total gross unrecognized tax benefit, of which $3.7 million represents the amount of gross unrecognized tax benefits that, if recognized, would favorably affect the income tax rate in future periods. At November 2, 2014, we had a $14.1 million total gross unrecognized tax benefit, of which $4.0 million represents the amount of gross unrecognized tax benefits that, if recognized, would favorably affect the income tax rate in future periods. At May 3, 2015, we had a $14.1 million total gross unrecognized tax benefit, of which $3.8 million represents the amount of gross unrecognized tax benefits that, if recognized, would favorably affect the income tax rate in future periods. At November 1, 2015, we had a $14.2 million total gross unrecognized tax benefit, of which $10.5 million and $3.7 million were classified as net non-current deferred income taxes and income taxes payable – long-term, respectively, in the accompanying consolidated balance sheets. At November 2, 2014, we had a $14.1 million total gross unrecognized tax benefit, of which $10.1 million and $4.0 million were classified as net non-current deferred income taxes and income taxes payable – long-term, respectively, in the accompanying consolidated balance sheets. At May 3, 2015, we had $14.1 million of total gross unrecognized tax benefit, of which $10.3 million and $3.8 million were classified as net non-current deferred income taxes and income taxes payable – long-term, respectively, in the accompanying consolidated balance sheets. We estimate that the amount of gross unrecognized tax benefits will increase by approximately $846,000 for fiscal 2016. This increase primarily relates to double taxation under applicable tax treaties with foreign tax jurisdictions. |
Statutory Reserves
Statutory Reserves | 6 Months Ended |
Nov. 01, 2015 | |
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 November 1, 2015, the company’s statutory surplus reserve was $5.0 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 $5.0 million to assist with debt repayment, capital expenditures, and other expenses of the company’s business. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Nov. 01, 2015 | |
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 At November 1, 2015, November 2, 2014, and May 3, 2015, we had open purchase commitments to acquire equipment for our mattress fabrics segment totaling $1.9 million, $3.0 million, and $2.3 million, respectively. |
Common Stock Repurchase Program
Common Stock Repurchase Program | 6 Months Ended |
Nov. 01, 2015 | |
Text Block [Abstract] | |
Common Stock Repurchase Program | 16. Common Stock Repurchase Program On February 25, 2014, 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 fiscal 2015, we purchased 43,014 shares of our common stock at a cost of $745,000, all of which were purchased in the first and second quarters. During the six months ended November 1, 2015, we did not purchase any shares of our common stock. At November 1, 2015, we had $4.3 million available for additional repurchases of our common stock. |
Dividend Program
Dividend Program | 6 Months Ended |
Nov. 01, 2015 | |
Text Block [Abstract] | |
Dividend Program | 17. Dividend Program On December 1, 2015, we announced that our board of directors approved a 17% increase in our quarterly cash dividend from $0.06 to $0.07 per share. This payment will be made on January 18, 2016 to shareholders of record as of January 4, 2016. 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 first and second quarter dividend payments of $0.06 per share. During the first half of fiscal 2015, dividend payments totaled $6.1 million, of which $4.9 million represented a special cash dividend payment in the first quarter of $0.40 per share, and $1.2 million represented first and second quarter dividend payments of $0.05 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 Polici25
Significant Accounting Policies (Policies) | 6 Months Ended |
Nov. 01, 2015 | |
Accounting Policies [Abstract] | |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements None Recently Issued Accounting Pronouncements 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 be effective in our fiscal 2017 first quarter. 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. Currently, we 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. We are currently assessing the impact that this guidance will have on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09, which amends ASC Topic 606, Revenue from Contracts with Customers. Revenue from Contracts with Customers: Deferral of the Effective Date In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Nov. 01, 2015 | |
Receivables [Abstract] | |
Summary of Accounts Receivable | A summary of accounts receivable follows: (dollars in thousands) November 1, 2015 November 2, 2014 May 3, 2015 Customers $ 25,045 $ 26,082 $ 30,338 Allowance for doubtful accounts (826 ) (442 ) (851 ) Reserve for returns and allowances and discounts (905 ) (595 ) (738 ) $ 23,314 $ 25,045 $ 28,749 |
Summary of the Activity in the Allowance for Doubtful Accounts | A summary of the activity in the allowance for doubtful accounts follows: Six months ended (dollars in thousands) November 1, 2015 November 2, 2014 Beginning balance $ (851 ) $ (573 ) Provision for bad debts (81 ) 57 Net write-offs, net of recoveries 106 74 Ending balance $ (826 ) $ (442 ) |
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: Six months ended (dollars in thousands) November 1, 2015 November 2, 2014 Beginning balance $ (738 ) $ (479 ) Provision for returns, allowances and discounts (1,561 ) (1,334 ) Credits issued 1,394 1,218 Ending balance $ (905 ) $ (595 ) |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Nov. 01, 2015 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | A summary of inventories follows: (dollars in thousands) November 1, 2015 November 2, 2014 May 3, 2015 Raw materials $ 6,272 $ 5,657 $ 5,374 Work-in-process 2,779 2,190 2,766 Finished goods 37,428 30,381 34,344 $ 46,479 $ 38,228 $ 42,484 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Nov. 01, 2015 | |
Text Block [Abstract] | |
Summary of Other Assets | A summary of other assets follows: (dollars in thousands) November 1, 2015 November 2, 2014 May 3, 2015 Cash surrender value – life insurance $ 339 $ 320 $ 339 Non-compete agreement, net 941 1,017 979 Customer relationships, net 740 791 766 Other 474 411 461 $ 2,494 $ 2,539 $ 2,545 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Nov. 01, 2015 | |
Text Block [Abstract] | |
Summary of Accrued Expenses | A summary of accrued expenses follows: (dollars in thousands) November 1, 2015 November 2, 2014 May 3, 2015 Compensation, commissions and related benefits $ 6,657 $ 4,969 $ 9,081 Advertising rebates 2,536 1,853 1,002 Interest - 38 37 Other accrued expenses 702 863 1,009 $ 9,895 $ 7,723 $ 11,129 |
Long-Term Debt and Lines of C30
Long-Term Debt and Lines of Credit (Tables) | 6 Months Ended |
Nov. 01, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | A summary of long-term debt follows: (dollars in thousands) November 1, 2015 November 2, 2014 May 3, 2015 Unsecured senior term notes $ - $ 2,200 $ 2,200 Current maturities of long-term debt - (2,200 ) (2,200 ) Long-term debt, less current maturities of long-term debt $ - $ - $ - |
Fair Value of Financial Instr31
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Nov. 01, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents information about assets and liabilities measured at fair value on a recurring basis: 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 November 2, 2014 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: Limited Term Bond Fund $ 2,576 N/A N/A $ 2,576 Low Duration Bond Fund 2,081 N/A N/A 2,081 Premier Money Market Fund 1,818 N/A N/A 1,818 Intermediate Term Bond Fund 1,661 N/A N/A 1,661 Other 93 N/A N/A 93 Fair value measurements at May 3, 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: Limited Term Bond Fund $ 3,107 N/A N/A $ 3,107 Premier Money Market Fund 2,285 N/A N/A 2,285 Intermediate Term Bond Fund 2,181 N/A N/A 2,181 Low Duration Bond Fund 2,096 N/A N/A 2,096 Strategic Income Fund 1,008 N/A N/A 1,008 Growth Allocation Fund 85 N/A N/A 85 Other 45 N/A N/A 45 |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 6 Months Ended |
Nov. 01, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Interest and Income Taxes Paid | Interest and income taxes paid are as follows: Six months ended (dollars in thousands) November 1, 2015 November 2, 2014 Interest $ 86 $ 180 Net income tax payments, net 2,088 1,943 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Nov. 01, 2015 | |
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: Three months ended (amounts in thousands) November 1, 2015 November 2, 2014 Weighted average common shares outstanding, basic 12,343 12,218 Dilutive effect of stock-based compensation 141 183 Weighted average common shares outstanding, diluted 12,484 12,401 Six months ended (amounts in thousands) November 1, 2015 November 2, 2014 Weighted average common shares outstanding, basic 12,310 12,215 Dilutive effect of stock-based compensation 171 188 Weighted average common shares outstanding, diluted 12,481 12,403 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Nov. 01, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segments Information | Financial information for the company’s operating segments follows: Three months ended (dollars in thousands) November 1, 2015 November 2, 2014 Net sales: Mattress Fabrics $ 45,436 $ 43,038 Upholstery Fabrics 31,520 30,953 $ 76,956 $ 73,991 Gross profit: Mattress Fabrics $ 9,456 $ 7,324 Upholstery Fabrics 6,277 4,954 $ 15,733 $ 12,278 Selling, general, and administrative expenses: Mattress Fabrics $ 2,989 $ 2,592 Upholstery Fabrics 3,813 3,285 Total segment selling, general, and administrative expenses 6,802 5,877 Unallocated corporate expenses 2,631 1,502 $ 9,433 $ 7,379 Income from operations: Mattress Fabrics $ 6,467 $ 4,733 Upholstery Fabrics 2,464 1,668 Total segment income from operations 8,931 6,401 Unallocated corporate expenses (2,631 ) (1,502 ) Total income from operations 6,300 4,899 Interest income 69 153 Other expense (225 ) (162 ) Income before income taxes $ 6,144 $ 4,890 Financial information for the company’s operating segments follows: Six months ended (dollars in thousands) November 1, 2015 November 2, 2014 Net sales: Mattress Fabrics $ 93,245 $ 85,860 Upholstery Fabrics 63,896 64,191 $ 157,141 $ 150,051 Gross profit: Mattress Fabrics $ 19,381 $ 14,527 Upholstery Fabrics 12,554 10,466 $ 31,935 $ 24,993 Selling, general, and administrative expenses: Mattress Fabrics $ 5,912 $ 5,166 Upholstery Fabrics 7,409 6,737 Total segment selling, general, and administrative expenses 13,321 11,903 Unallocated corporate expenses 4,854 2,895 $ 18,175 $ 14,798 Income from operations: Mattress Fabrics $ 13,468 $ 9,361 Upholstery Fabrics 5,146 3,729 Total segment income from operations 18,614 13,090 Unallocated corporate expenses (4,854 ) (2,895 ) Total income from operations 13,760 10,195 Interest expense - (67 ) Interest income 112 294 Other expense (320 ) (73 ) Income before income taxes $ 13,552 $ 10,349 Balance sheet information for the company’s operating segments follow: (dollars in thousands) November 1, 2015 November 2, 2014 May 3, 2015 Segment assets: Mattress Fabrics Current assets (1) $ 40,937 $ 35,406 $ 41,328 Non-compete agreement 941 1,017 979 Customer relationships 740 791 766 Goodwill 11,462 11,462 11,462 Property, plant and equipment (2) 36,050 30,938 33,773 Total mattress fabrics assets 90,130 79,614 88,308 Upholstery Fabrics Current assets (1) 28,856 27,867 29,905 Property, plant and equipment (3) 1,474 1,578 1,467 Total upholstery fabrics assets 30,330 29,445 31,372 Total segment assets 120,460 109,059 119,680 Non-segment assets: Cash and cash equivalents 31,176 28,953 29,725 Short-term investments 6,320 6,318 10,004 Deferred income taxes 8,136 6,699 5,237 Income taxes receivable 75 - 229 Other current assets 2,614 2,303 2,440 Property, plant and equipment (4) 795 688 838 Long-term investments 3,279 1,911 2,415 Other assets 813 731 800 Total assets $ 173,668 $ 156,662 $ 171,368 Six months ended (dollars in thousands) November 1, 2015 November 2, 2014 Capital expenditures (5): Mattress Fabrics $ 5,138 $ 4,692 Upholstery Fabrics 254 258 Unallocated Corporate 143 38 Total capital expenditures $ 5,535 $ 4,988 Depreciation expense: Mattress Fabrics $ 2,783 $ 2,448 Upholstery Fabrics 401 364 Total depreciation expense $ 3,184 $ 2,812 (1) Current assets represent accounts receivable and inventory for the respective segment. (2) 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 $30.9 million at November 2, 2014, represents property, plant, and equipment of $22.2 million and $8.7 million located in the U.S. and Canada, respectively. The $33.8 million at May 3, 2015, represents property, plant, and equipment of $23.8 million and $10.0 million located in the U.S. and Canada, respectively. (3) 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 November 2, 2014, represents property, plant, and equipment of $977 and $601 located in the U.S. and China, respectively. The $1.5 million at May 3, 2015, represents property, plant, and equipment of $848 and $619 located in the U.S. and China, respectively. (4) The $795, $688, and $838 at November 1, 2015, November 2, 2014 and May 3, 2015, respectively, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress and upholstery fabric segments. Property, plant, and equipment associated with corporate are located in the U.S. (5) Capital expenditure amounts are stated on the accrual basis. See Consolidated Statements of Cash Flows for capital expenditure amounts on a cash basis. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Nov. 01, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of Differences in Income Tax Expense at Federal Income Tax Rate and Effective Income Tax Rate | The following schedule summarizes the principal differences between income tax expense at the federal income tax rate and the effective income tax rate reflected in the consolidated financial statements: 2016 2015 federal income tax rate 34.0 % 34.0 % foreign tax rate differential (4.9 ) (5.6 ) undistributed earnings from foreign subsidiaries 4.5 3.7 increase in liability for uncertain tax positions 3.1 4.1 other 0.8 2.5 37.5 % 38.7 % |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Detail) - USD ($) | Oct. 01, 2015 | Jul. 15, 2015 | Mar. 03, 2015 | Oct. 01, 2014 | Jun. 24, 2014 | Jun. 25, 2013 | Jul. 11, 2012 | Nov. 01, 2015 | Nov. 02, 2014 | Sep. 16, 2015 |
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 | |||||||||
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 | |||||||||
Stock Options [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of options granted | 0 | |||||||||
Number of options to purchase common stock outstanding | 99,600 | |||||||||
Number of options exercisable | 99,600 | |||||||||
Weighted average exercise price for options outstanding | $ 7.78 | |||||||||
Weighted average exercise price for options exercisable | $ 7.78 | |||||||||
Weighted average contractual term for options outstanding | 2 years | |||||||||
Weighted average contractual term for options exercisable | 2 years | |||||||||
Aggregate intrinsic value for options outstanding | $ 2,200,000 | |||||||||
Aggregate intrinsic value for options exercisable | 2,200,000 | |||||||||
Aggregate intrinsic value for options exercised | $ 1,000,000 | $ 80,000 | ||||||||
Number of unvested stock option | 0 | |||||||||
Unrecognized stock based compensation cost | $ 0 | |||||||||
Share-based compensation expense | 0 | 0 | ||||||||
Common Stock Awards [Member] | Outside Director [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted | 3,000 | 3,000 | ||||||||
Vesting period | 0 days | 0 days | ||||||||
Closing price of common stock | $ 31.77 | $ 17.95 | ||||||||
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 | $ 95,000 | $ 54,000 | ||||||||
Time Vested Restricted Stock Awards [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted | 0 | |||||||||
Number of shares outstanding and unvested | 0 | |||||||||
Remaining unrecognized compensation cost | $ 0 | |||||||||
Number of shares vested | 61,667 | |||||||||
Weighted average fair value of vested shares | $ 257,000 | |||||||||
Weighted average fair value of vested shares, per share | $ 4.17 | |||||||||
Time Vested Restricted Stock Awards [Member] | Selling, general and administrative expenses [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based compensation expense | 0 | $ 4,000 | ||||||||
Performance Based Restricted Stock Units [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | 3 years | 3 years | 3 years | ||||||
Closing price of common stock | $ 32.23 | $ 17.70 | $ 17.12 | $ 10.21 | ||||||
Remaining unrecognized compensation cost | $ 4,900,000 | |||||||||
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 | |||||||||
Weighted average period over which unrecognized compensation cost is expected to be recognized | 2 years 3 months 18 days | |||||||||
Performance Based Restricted Stock Units [Member] | Non-employee [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | |||||||||
Closing price of common stock | $ 30.01 | |||||||||
Performance Based Restricted Stock Units [Member] | Maximum [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted | 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] | ||||||||||
Number of shares granted | 10,364 | 28,000 | ||||||||
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 | $ 1,200,000 | $ 233,000 | ||||||||
Performance Based Restricted Stock Units [Member] | First Requisite Service Period [Member] | Non-employee [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 16 months | |||||||||
Performance Based Restricted Stock Units [Member] | First Requisite Service Period [Member] | Maximum [Member] | Non-employee [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted | 12,000 | |||||||||
Performance Based Restricted Stock Units [Member] | Second Requisite Service Period [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] | Second Requisite Service Period [Member] | Maximum [Member] | Non-employee [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted | 16,000 |
Accounts Receivable (Detail)
Accounts Receivable (Detail) - USD ($) $ in Thousands | Nov. 01, 2015 | May. 03, 2015 | Nov. 02, 2014 | Apr. 27, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Customers | $ 25,045 | $ 30,338 | $ 26,082 | ||
Accounts receivable, net | 23,314 | 28,749 | [1] | 25,045 | |
Allowance for doubtful accounts [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Valuation allowance, balance | (826) | (851) | (442) | $ (573) | |
Reserve for returns and allowances and discounts [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Valuation allowance, balance | $ (905) | $ (738) | $ (595) | $ (479) | |
[1] | Derived from audited financial statements. |
Accounts Receivable - Allowance
Accounts Receivable - Allowance for Doubtful Accounts (Detail) - Allowance for doubtful accounts [Member] - USD ($) $ in Thousands | 6 Months Ended | |
Nov. 01, 2015 | Nov. 02, 2014 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Beginning balance | $ (851) | $ (573) |
Provision for bad debts | (81) | 57 |
Net write-offs, net of recoveries | 106 | 74 |
Ending balance | $ (826) | $ (442) |
Accounts Receivable - Allowan39
Accounts Receivable - Allowance for Returns and Allowances and Discounts (Detail) - Reserve for returns and allowances and discounts [Member] - USD ($) $ in Thousands | 6 Months Ended | |
Nov. 01, 2015 | Nov. 02, 2014 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Beginning balance | $ (738) | $ (479) |
Provision for returns, allowances and discounts | (1,561) | (1,334) |
Credits issued | 1,394 | 1,218 |
Ending balance | $ (905) | $ (595) |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Nov. 01, 2015 | May. 03, 2015 | Nov. 02, 2014 | |
Inventory Disclosure [Abstract] | ||||
Raw materials | $ 6,272 | $ 5,374 | $ 5,657 | |
Work-in-process | 2,779 | 2,766 | 2,190 | |
Finished goods | 37,428 | 34,344 | 30,381 | |
Inventories | $ 46,479 | $ 42,484 | [1] | $ 38,228 |
[1] | Derived from audited financial statements. |
Other Assets (Detail)
Other Assets (Detail) - USD ($) $ in Thousands | Nov. 01, 2015 | May. 03, 2015 | Nov. 02, 2014 | |
Other Assets, Noncurrent [Abstract] | ||||
Cash surrender value - life insurance | $ 339 | $ 339 | $ 320 | |
Non-compete agreement, net | 941 | 979 | 1,017 | |
Customer relationships, net | 740 | 766 | 791 | |
Other | 474 | 461 | 411 | |
Other assets | $ 2,494 | $ 2,545 | [1] | $ 2,539 |
[1] | Derived from audited financial statements. |
Other Assets - Narrative (Detai
Other Assets - Narrative (Detail) | 3 Months Ended | 6 Months Ended | |||
Nov. 02, 2014USD ($)Contract | Nov. 01, 2015USD ($)Contract | Nov. 02, 2014USD ($)Contract | May. 03, 2015USD ($)Contract | May. 16, 2014USD ($) | |
Other Assets [Line Items] | |||||
Gross carrying amount of non-compete agreement | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | |
Gross carrying amount of customer relationships | $ 868,000 | $ 868,000 | $ 868,000 | $ 868,000 | |
Number of life insurance contracts owned | Contract | 1 | 1 | 1 | 1 | |
Life insurance contracts, death benefits to insured | $ 1,400,000 | $ 1,400,000 | $ 1,400,000 | $ 1,400,000 | |
Life insurance contracts, cash surrender value | 320,000 | $ 339,000 | 320,000 | 339,000 | |
Death benefits to beneficiary of insured on terminated life insurance agreement | $ 2,500,000 | ||||
Collection of cash surrender value from termination of split dollar life insurance agreement | 320,000 | 320,000 | |||
Non-compete Agreement [Member] | |||||
Other Assets [Line Items] | |||||
Useful life | 15 years | ||||
Accumulated amortization | 1,000,000 | $ 1,100,000 | 1,000,000 | 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 | $ 604,000 | ||||
Weighted average remaining amortization period | 12 years 6 months | ||||
Customer Relationships [Member] | |||||
Other Assets [Line Items] | |||||
Useful life | 17 years | ||||
Accumulated amortization | $ 77,000 | $ 128,000 | 77,000 | $ 102,000 | |
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 | $ 511,000 | ||||
Weighted average remaining amortization period | 14 years 6 months |
Accrued Expenses (Detail)
Accrued Expenses (Detail) - USD ($) $ in Thousands | Nov. 01, 2015 | May. 03, 2015 | Nov. 02, 2014 | |
Payables and Accruals [Abstract] | ||||
Compensation, commissions and related benefits | $ 6,657 | $ 9,081 | $ 4,969 | |
Advertising rebates | 2,536 | 1,002 | 1,853 | |
Interest | 37 | 38 | ||
Other accrued expenses | 702 | 1,009 | 863 | |
Accrued expenses | $ 9,895 | $ 11,129 | [1] | $ 7,723 |
[1] | Derived from audited financial statements. |
Long-Term Debt and Lines of C44
Long-Term Debt and Lines of Credit (Detail) - USD ($) $ in Thousands | Nov. 01, 2015 | May. 03, 2015 | Nov. 02, 2014 | |
Debt Disclosure [Abstract] | ||||
Unsecured senior term notes | $ 2,200 | $ 2,200 | ||
Current maturities of long-term debt | (2,200) | [1] | (2,200) | |
Long-term debt, less current maturities of long-term debt | $ 0 | $ 0 | $ 0 | |
[1] | Derived from audited financial statements. |
Long-Term Debt and Lines of C45
Long-Term Debt and Lines of Credit - Long-Term Debt - Narrative (Detail) - USD ($) $ in Thousands | Aug. 11, 2015 | Nov. 01, 2015 | May. 03, 2015 | Nov. 02, 2014 | Aug. 11, 2008 |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 2,200 | $ 2,200 | |||
Unsecured senior term notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Issuance of unsecured senior term notes | $ 11,000 | ||||
Fixed interest rate | 8.01% | ||||
Term of the note agreement | 7 years | ||||
Required amount of principal payment installments | $ 2,200 | ||||
Required debt payment frequency | Annual | ||||
Date of first required principal payment | Aug. 11, 2011 | ||||
Last annual payment paid | $ 2,200 | ||||
Long-term debt, fair value | $ 2,300 | $ 2,300 |
Long-Term Debt and Lines of C46
Long-Term Debt and Lines of Credit - Lines of Credit - Narrative (Detail) | Jul. 10, 2015USD ($) | Nov. 01, 2015USD ($) | May. 03, 2015USD ($) | Nov. 01, 2015CNY (¥) | Nov. 02, 2014USD ($) |
United States [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 10,000,000 | $ 10,000,000 | |||
Interest rate description | Interest is charged at a rate equal to the one-month LIBOR rate plus a spread based on our ratio of debt to EBITDA as defined in the agreement. | ||||
Expiration date | Aug. 31, 2017 | Aug. 31, 2015 | |||
Reference rate on which the interest rate is based | One-month LIBOR rate | ||||
Applicable interest rate at end of period | 1.69% | 1.78% | 1.69% | 1.76% | |
Annual capital expenditures limit | $ 12,000,000 | ||||
Letter of credit, outstanding amount | $ 250,000 | $ 250,000 | $ 195,000 | ||
Outstanding amount | 0 | 0 | 0 | ||
China [Member] | Revolving credit agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 6,300,000 | ¥ 40,000,000 | |||
Interest rate description | This agreement has an interest rate determined by the Chinese government. | ||||
Expiration date | Feb. 9, 2016 | ||||
Outstanding amount | $ 0 | $ 0 | ¥ 0 | $ 0 | |
Europe [Member] | Revolving credit agreement [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate description | Incur interest at the EURO LIBOR plus 2% | ||||
Reference rate on which the interest rate is based | EURO LIBOR | ||||
Outstanding amount | $ 0 | ||||
Percent added to reference rate in effect from time to time to set the interest rate | 2.00% |
Fair Value of Financial Instr47
Fair Value of Financial Instruments - Recurring Basis (Detail) - USD ($) $ in Thousands | Nov. 01, 2015 | May. 03, 2015 | Nov. 02, 2014 |
Premier Money Market Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | $ 2,703 | $ 2,285 | $ 1,818 |
Intermediate Term Bond Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 2,144 | 2,181 | 1,661 |
Low Duration Bond Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 2,098 | 2,096 | 2,081 |
Limited Term Bond Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 1,094 | 3,107 | 2,576 |
Strategic Income Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 984 | 1,008 | |
Large Blend Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 279 | ||
Growth Allocation Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 125 | 85 | |
Mid Cap Value Fund [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 94 | ||
Other [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Assets measured at fair value on a recurring basis | 78 | 45 | 93 |
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 | 2,703 | 2,285 | 1,818 |
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 | 2,144 | 2,181 | 1,661 |
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 | 2,098 | 2,096 | 2,081 |
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 | 1,094 | 3,107 | 2,576 |
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 | 984 | 1,008 | |
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 | 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 | 125 | 85 | |
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 | 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 | $ 78 | $ 45 | $ 93 |
Fair Value of Financial Instr48
Fair Value of Financial Instruments - Narrative (Detail) - USD ($) | 6 Months Ended | |||
Nov. 01, 2015 | May. 03, 2015 | Nov. 02, 2014 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Long-term investments | $ 3,279,000 | $ 2,415,000 | [1] | $ 1,911,000 |
Minimum [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Short-term investments, maturity period | 3 months | |||
Short-term Investments [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Short-term bond funds | $ 6,300,000 | 10,000,000 | 6,300,000 | |
Unrealized gain (loss) on investments | (171,000) | $ (95,000) | $ (88,000) | |
Long-term Investments [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Unrealized gain (loss) on investments | $ 14,000 | |||
[1] | Derived from audited financial statements. |
Cash Flow Information - Interes
Cash Flow Information - Interest and Income Taxes Paid (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Nov. 01, 2015 | Nov. 02, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest | $ 86 | $ 180 |
Net income tax payments, net | $ 2,088 | $ 1,943 |
Cash Flow Information - Narrati
Cash Flow Information - Narrative (Detail) - USD ($) | 6 Months Ended | |
Nov. 01, 2015 | Nov. 02, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest costs incurred on long-term debt and lines of credit | $ 49,000 | $ 148,000 |
Interest cost capitalized | $ 49,000 | $ 81,000 |
Net Income Per Share - Weighted
Net Income Per Share - Weighted Average Shares (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 01, 2015 | Nov. 02, 2014 | Nov. 01, 2015 | Nov. 02, 2014 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares outstanding, basic | 12,343 | 12,218 | 12,310 | 12,215 |
Dilutive effect of stock-based compensation | 141 | 183 | 171 | 188 |
Weighted average common shares outstanding, diluted | 12,484 | 12,401 | 12,481 | 12,403 |
Segment Information - Narrative
Segment Information - Narrative (Detail) | 6 Months Ended |
Nov. 01, 2015Segment | |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
Segment Information - Financial
Segment Information - Financial Information for Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 01, 2015 | Nov. 02, 2014 | Nov. 01, 2015 | Nov. 02, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 76,956 | $ 73,991 | $ 157,141 | $ 150,051 |
Gross profit | 15,733 | 12,278 | 31,935 | 24,993 |
Selling, general, and administrative expenses | 9,433 | 7,379 | 18,175 | 14,798 |
Income from operations | 6,300 | 4,899 | 13,760 | 10,195 |
Interest expense | (67) | |||
Interest income | 69 | 153 | 112 | 294 |
Other expense | (225) | (162) | (320) | (73) |
Income before income taxes | 6,144 | 4,890 | 13,552 | 10,349 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Selling, general, and administrative expenses | 6,802 | 5,877 | 13,321 | 11,903 |
Income from operations | 8,931 | 6,401 | 18,614 | 13,090 |
Operating Segments [Member] | Mattress Fabrics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 45,436 | 43,038 | 93,245 | 85,860 |
Gross profit | 9,456 | 7,324 | 19,381 | 14,527 |
Selling, general, and administrative expenses | 2,989 | 2,592 | 5,912 | 5,166 |
Income from operations | 6,467 | 4,733 | 13,468 | 9,361 |
Operating Segments [Member] | Upholstery Fabrics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 31,520 | 30,953 | 63,896 | 64,191 |
Gross profit | 6,277 | 4,954 | 12,554 | 10,466 |
Selling, general, and administrative expenses | 3,813 | 3,285 | 7,409 | 6,737 |
Income from operations | 2,464 | 1,668 | 5,146 | 3,729 |
Unallocated corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Selling, general, and administrative expenses | 2,631 | 1,502 | 4,854 | 2,895 |
Income from operations | $ (2,631) | $ (1,502) | $ (4,854) | $ (2,895) |
Segment Information - Balance S
Segment Information - Balance Sheet Information by Operating Segments (Detail) - USD ($) $ in Thousands | Nov. 01, 2015 | May. 03, 2015 | Nov. 02, 2014 | Apr. 27, 2014 | ||
Segment Reporting Information [Line Items] | ||||||
Non-compete agreement | $ 941 | $ 979 | $ 1,017 | |||
Customer relationships | 740 | 766 | 791 | |||
Goodwill | 11,462 | 11,462 | [1] | 11,462 | ||
Property, plant and equipment | 38,319 | 36,078 | [1] | 33,204 | ||
Total assets | 173,668 | 171,368 | [1] | 156,662 | ||
Cash and cash equivalents | 31,176 | 29,725 | [1] | 28,953 | $ 29,303 | |
Short-term investments | 6,320 | 10,004 | [1] | 6,318 | ||
Income taxes receivable | 75 | 229 | [1] | |||
Other current assets | 2,614 | 2,440 | [1] | 2,303 | ||
Long-term investments | 3,279 | 2,415 | [1] | 1,911 | ||
Other assets | 2,494 | 2,545 | [1] | 2,539 | ||
Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total assets | 120,460 | 119,680 | 109,059 | |||
Unallocated corporate [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Property, plant and equipment | [2] | 795 | 838 | 688 | ||
Cash and cash equivalents | 31,176 | 29,725 | 28,953 | |||
Short-term investments | 6,320 | 10,004 | 6,318 | |||
Deferred income taxes | 8,136 | 5,237 | 6,699 | |||
Income taxes receivable | 75 | 229 | ||||
Other current assets | 2,614 | 2,440 | 2,303 | |||
Long-term investments | 3,279 | 2,415 | 1,911 | |||
Other assets | 813 | 800 | 731 | |||
Mattress Fabrics [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Current assets | [3] | 40,937 | 41,328 | 35,406 | ||
Non-compete agreement | 941 | 979 | 1,017 | |||
Customer relationships | 740 | 766 | 791 | |||
Goodwill | 11,462 | 11,462 | 11,462 | |||
Property, plant and equipment | [4] | 36,050 | 33,773 | 30,938 | ||
Total assets | 90,130 | 88,308 | 79,614 | |||
Upholstery Fabrics [Member] | Operating Segments [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Current assets | [3] | 28,856 | 29,905 | 27,867 | ||
Property, plant and equipment | [5] | 1,474 | 1,467 | 1,578 | ||
Total assets | $ 30,330 | $ 31,372 | $ 29,445 | |||
[1] | Derived from audited financial statements. | |||||
[2] | The $795, $688, and $838 at November 1, 2015, November 2, 2014 and May 3, 2015, 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. | |||||
[3] | Current assets represent accounts receivable and inventory for the respective segment. | |||||
[4] | 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 $30.9 million at November 2, 2014, represents property, plant, and equipment of $22.2 million and $8.7 million located in the U.S. and Canada, respectively. The $33.8 million at May 3, 2015, represents property, plant, and equipment of $23.8 million and $10.0 million located in the U.S. and Canada, respectively. | |||||
[5] | 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 November 2, 2014, represents property, plant, and equipment of $977 and $601 located in the U.S. and China, respectively. The $1.5 million at May 3, 2015, represents property, plant, and equipment of $848 and $619 located in the U.S. and China, respectively. |
Segment Information - Capital E
Segment Information - Capital Expenditures and Depreciation Expense By Operating Segments (Detail) - USD ($) $ in Thousands | 6 Months Ended | ||
Nov. 01, 2015 | Nov. 02, 2014 | ||
Segment Reporting Information [Line Items] | |||
Capital expenditures | [1] | $ 5,535 | $ 4,988 |
Depreciation expense | 3,184 | 2,812 | |
Operating Segments [Member] | Mattress Fabrics [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 5,138 | 4,692 | |
Depreciation expense | 2,783 | 2,448 | |
Operating Segments [Member] | Upholstery Fabrics [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 254 | 258 | |
Depreciation expense | 401 | 364 | |
Unallocated corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | $ 143 | $ 38 | |
[1] | Capital expenditure amounts are stated on the accrual basis. See Consolidated Statements of Cash Flows for capital expenditure amounts on a cash basis. |
Segment Information - Balance56
Segment Information - Balance Sheet Information by Operating Segments (Parenthetical) (Detail) - USD ($) $ in Thousands | Nov. 01, 2015 | May. 03, 2015 | Nov. 02, 2014 | ||
Segment Reporting Information [Line Items] | |||||
Property, plant and equipment | $ 38,319 | $ 36,078 | [1] | $ 33,204 | |
Unallocated corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Property, plant and equipment | [2] | 795 | 838 | 688 | |
United States [Member] | Unallocated corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Property, plant and equipment | 795 | 838 | 688 | ||
Mattress Fabrics [Member] | United States [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Property, plant and equipment | 23,300 | 23,800 | 22,200 | ||
Mattress Fabrics [Member] | Canada [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Property, plant and equipment | 12,800 | 10,000 | 8,700 | ||
Upholstery Fabrics [Member] | United States [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Property, plant and equipment | 785 | 848 | 977 | ||
Upholstery Fabrics [Member] | China [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Property, plant and equipment | $ 689 | $ 619 | $ 601 | ||
[1] | Derived from audited financial statements. | ||||
[2] | The $795, $688, and $838 at November 1, 2015, November 2, 2014 and May 3, 2015, respectively, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress and upholstery fabric segments. Property, plant, and equipment associated with corporate are located in the U.S. |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate - Narrative (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 01, 2015 | Nov. 02, 2014 | Nov. 01, 2015 | Nov. 02, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income taxes | $ 2,373 | $ 1,889 | $ 5,081 | $ 4,003 |
Effective income tax rate | 37.50% | 38.70% |
Income Taxes - Differences Betw
Income Taxes - Differences Between Income Tax Expense at Federal Income Tax Rate and Effective Income Tax Rate (Detail) | 6 Months Ended | |
Nov. 01, 2015 | Nov. 02, 2014 | |
Income Tax Disclosure [Abstract] | ||
federal income tax rate | 34.00% | 34.00% |
foreign tax rate differential | (4.90%) | (5.60%) |
undistributed earnings from foreign subsidiaries | 4.50% | 3.70% |
increase in liability for uncertain tax positions | 3.10% | 4.10% |
other | 0.80% | 2.50% |
Effective income tax rate | 37.50% | 38.70% |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes - Valuation Allowance - Narrative (Detail) - USD ($) | Nov. 01, 2015 | May. 03, 2015 | Nov. 02, 2014 |
U.S. Tax Authorities and Poland Tax Authorities [Member] | Valuation Allowance, Operating Loss Carryforwards [Member] | |||
Income Taxes [Line Items] | |||
Valuation allowance | $ 938,000 | $ 922,000 | $ 1,100,000 |
U.S. State Tax [Member] | Valuation Allowance, Operating Loss Carryforwards [Member] | |||
Income Taxes [Line Items] | |||
Valuation allowance | 561,000 | 561,000 | 666,000 |
Poland [Member] | Valuation Allowance, Operating Loss Carryforwards [Member] | Culp Europe [Member] | |||
Income Taxes [Line Items] | |||
Valuation allowance | 377,000 | 361,000 | 456,000 |
Canada and China [Member] | |||
Income Taxes [Line Items] | |||
Valuation allowance | $ 0 | $ 0 | $ 0 |
Income Taxes - Deferred Incom60
Income Taxes - Deferred Income Taxes - Undistributed Earnings - Narrative (Detail) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Nov. 01, 2015 | Nov. 02, 2014 | May. 03, 2015 | |
Income Tax Disclosure [Abstract] | |||
Deferred tax liability, undistributed earnings from foreign subsidiaries | $ 2.4 | $ 2.2 | $ 1.7 |
U.S. income and foreign withholding taxes | 35.7 | 30.6 | 32.4 |
U.S. foreign income tax credits | 33.3 | 28.4 | 30.7 |
Undistributed earnings from our foreign subsidiaries that will not be reinvested indefinitely | $ 93.2 | $ 78.9 | $ 85.2 |
Income Taxes - Deferred Incom61
Income Taxes - Deferred Income Taxes - Narrative (Detail) - USD ($) $ in Thousands | Nov. 01, 2015 | May. 03, 2015 | Nov. 02, 2014 | |
Income Taxes [Line Items] | ||||
Current deferred tax asset | $ 7,754 | $ 4,790 | [1] | $ 6,191 |
Non-current deferred tax asset | 382 | 447 | [1] | 508 |
Non-current deferred tax liability | 5,927 | 1,050 | [1] | 1,395 |
U.S. Tax Authorities [Member] | ||||
Income Taxes [Line Items] | ||||
Current deferred tax asset | 7,200 | 4,400 | 5,800 | |
Non-current deferred tax liability | 4,700 | 154 | 509 | |
China [Member] | ||||
Income Taxes [Line Items] | ||||
Current deferred tax asset | 516 | 421 | 428 | |
Non-current deferred tax asset | 382 | 447 | 508 | |
Canada [Member] | ||||
Income Taxes [Line Items] | ||||
Non-current deferred tax liability | $ 1,200 | $ 896 | $ 886 | |
[1] | Derived from audited financial statements. |
Income Taxes - Uncertainty in I
Income Taxes - Uncertainty in Income Taxes - Narrative (Detail) - USD ($) | Nov. 01, 2015 | May. 03, 2015 | Nov. 02, 2014 |
Income Taxes [Line Items] | |||
Unrecognized tax benefits | $ 14,200,000 | $ 14,100,000 | $ 14,100,000 |
Unrecognized tax benefits that would favorably impact effective income tax rate if recognized | 3,700,000 | 3,800,000 | 4,000,000 |
Expected increase in unrecognized tax benefits related to double taxation under applicable tax treaties with foreign tax jurisdictions | 846,000 | ||
Net Non-current Deferred Income Taxes [Member] | |||
Income Taxes [Line Items] | |||
Unrecognized tax benefits | 10,500,000 | 10,300,000 | 10,100,000 |
Income Taxes Payable - Long-Term [Member] | |||
Income Taxes [Line Items] | |||
Unrecognized tax benefits | $ 3,700,000 | $ 3,800,000 | $ 4,000,000 |
Statutory Reserves (Detail)
Statutory Reserves (Detail) - Subsidiaries [Member] - China [Member] $ in Millions | 6 Months Ended |
Nov. 01, 2015USD ($) | |
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 | $ 5 |
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 (
Commitments and Contingencies (Detail) - USD ($) | Nov. 01, 2015 | May. 03, 2015 | Nov. 02, 2014 |
Mattress Fabrics [Member] | Capital Addition Purchase Commitments [Member] | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Open purchase commitments | $ 1,900,000 | $ 2,300,000 | $ 3,000,000 |
Common Stock Repurchase Progr65
Common Stock Repurchase Program (Detail) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Nov. 01, 2015 | Nov. 02, 2014 | May. 03, 2015 | Feb. 25, 2014 | |
Stockholders Equity Note [Line Items] | ||||
Cost of common stock repurchased | $ 745,000 | |||
Common Stock | ||||
Stockholders Equity Note [Line Items] | ||||
Common stock repurchased | 43,014 | |||
Cost of common stock repurchased | $ 2,000 | |||
Common Stock Repurchase Program February 25, 2014 [Member] | Common Stock | ||||
Stockholders Equity Note [Line Items] | ||||
Authorization amount for repurchase of common stock | $ 5,000,000 | |||
Common stock repurchased | 0 | 43,014 | ||
Cost of common stock repurchased | $ 745,000 | |||
Remaining authorized repurchase amount | $ 4,300,000 |
Dividend Program (Detail)
Dividend Program (Detail) - USD ($) $ / shares in Units, $ in Thousands | Dec. 01, 2015 | Aug. 03, 2014 | Nov. 01, 2015 | Nov. 02, 2014 |
Dividends [Line Items] | ||||
Cash dividends paid | $ 6,417 | $ 6,113 | ||
Quarterly Dividend [Member] | ||||
Dividends [Line Items] | ||||
Cash dividend payment, per share | $ 0.06 | $ 0.05 | ||
Cash dividends paid | $ 1,400 | $ 1,200 | ||
Special Dividend [Member] | ||||
Dividends [Line Items] | ||||
Cash dividend payment, per share | $ 0.40 | $ 0.40 | ||
Cash dividends paid | $ 4,900 | $ 5,000 | ||
Subsequent Event [Member] | Quarterly Dividend [Member] | ||||
Dividends [Line Items] | ||||
Cash dividend declared, per share | $ 0.07 | |||
Date of payment to shareholders entitled to dividends | Jan. 18, 2016 | |||
Date of record of shareholders entitled to dividends | Jan. 4, 2016 | |||
Percentage increase in quarterly cash dividend | 17.00% |