Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Apr. 28, 2019 | Oct. 28, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Apr. 28, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | FY | |
Entity Registrant Name | CULP INC | |
Entity Central Index Key | 0000723603 | |
Current Fiscal Year End Date | --04-28 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Trading Symbol | CULP | |
Entity Common Stock, Shares Outstanding | 12,391,160 | |
Entity Shell Company | false | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Common Stock | |
Entity Interactive Data Current | Yes | |
Entity Public Float | $ 245,263,535 | |
Entity Address, State or Province | NC |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 28, 2019 | Apr. 29, 2018 |
current assets: | ||
cash and cash equivalents | $ 40,008 | $ 21,228 |
short-term investments - available for sale | 2,451 | |
short-term investments - held to maturity | 5,001 | 25,759 |
accounts receivable, net | 23,751 | 26,307 |
inventories | 50,860 | 53,454 |
current income taxes receivable | 776 | |
other current assets | 2,849 | 2,870 |
total current assets | 123,245 | 132,069 |
property, plant and equipment, net | 48,389 | 51,794 |
goodwill | 27,222 | 13,569 |
intangible assets | 10,448 | 4,275 |
deferred income taxes | 457 | 1,458 |
long-term investments - held-to-maturity | 5,035 | |
long-term investments - rabbi trust | 7,081 | 7,326 |
noncurrent income taxes receivable | 733 | |
investment in unconsolidated joint venture | 1,508 | 1,501 |
other assets | 643 | 957 |
total assets | 219,726 | 217,984 |
current liabilities: | ||
accounts payable - trade | 24,377 | 27,237 |
accounts payable - capital expenditures | 78 | 1,776 |
deferred revenue | 399 | 809 |
accrued expenses | 9,192 | 9,325 |
accrued restructuring costs | 124 | |
income taxes payable | 1,022 | 1,437 |
total current liabilities | 35,192 | 40,584 |
accrued expenses - long-term | 333 | 763 |
subordinated loan payable | 675 | |
contingent consideration - earn-out obligation | 5,856 | |
income taxes payable - long-term | 3,249 | 3,758 |
deferred income taxes | 3,176 | 2,150 |
deferred compensation | 6,998 | 7,353 |
total liabilities | 55,479 | 54,608 |
commitments and contingencies (notes 13 and 15) | ||
shareholders' equity: | ||
preferred stock, $.05 par value, authorized 10,000,000 shares | ||
common stock, $.05 par value, authorized 40,000,000 shares, issued and outstanding 12,391,160 at April 28, 2019 and 12,450,276 at April 29, 2018 | 620 | 623 |
capital contributed in excess of par value | 43,694 | 48,203 |
accumulated earnings | 115,579 | 114,635 |
accumulated other comprehensive income (loss) | 40 | (85) |
total shareholders' equity attributable to Culp Inc. | 159,933 | 163,376 |
non-controlling interest | 4,314 | |
total equity | 164,247 | 163,376 |
total liabilities and equity | $ 219,726 | $ 217,984 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Apr. 28, 2019 | Apr. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.05 | $ 0.05 |
Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Common stock, par value | $ 0.05 | $ 0.05 |
Common stock, authorized shares | 40,000,000 | 40,000,000 |
Common stock, issued | 12,391,160 | 12,450,276 |
Common stock, outstanding | 12,391,160 | 12,450,276 |
CONSOLIDATED STATEMENTS OF NET
CONSOLIDATED STATEMENTS OF NET INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Income Statement [Abstract] | |||
net sales | $ 296,669 | $ 323,725 | $ 309,544 |
cost of sales | 246,471 | 259,092 | 240,309 |
gross profit | 50,198 | 64,633 | 69,235 |
selling, general and administrative expenses | 38,405 | 37,172 | 39,157 |
restructuring credit | (825) | ||
income from operations | 12,618 | 27,461 | 30,078 |
interest expense | 42 | 94 | 0 |
interest income | (766) | (534) | (299) |
other expense | 1,346 | 1,018 | 681 |
income before income taxes | 11,996 | 26,883 | 29,696 |
income tax expense (note 14) | 6,424 | 5,740 | 7,339 |
loss from investment in unconsolidated joint venture (note 9) | 114 | 266 | 23 |
net income | 5,458 | 20,877 | 22,334 |
Plus: net loss attributable to non-controlling interest | 218 | ||
net income attributable to Culp Inc. common shareholders | $ 5,676 | $ 20,877 | $ 22,334 |
net income attributable to Culp Inc. common shareholders per share-basic | $ 0.46 | $ 1.68 | $ 1.81 |
net income attributable to Culp Inc. common shareholders per share-diluted | $ 0.45 | $ 1.65 | $ 1.78 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
net income | $ 5,458 | $ 20,877 | $ 22,334 |
unrealized gain (loss) on foreign currency cash flow hedge, net of tax | |||
unrealized holding loss on foreign currency cash flow hedge | (9) | (55) | |
reclassification adjustment for realized loss on foreign currency cash flow hedge | 64 | ||
total unrealized gain (loss) on foreign currency cash flow hedge | 55 | (55) | |
unrealized gains (losses) on investments, net of tax | |||
unrealized holding (losses) gains on investments | (47) | (26) | 128 |
reclassification adjustment for realized loss included in net income | 117 | 12 | |
total unrealized gain (loss) on investments | 70 | (26) | 140 |
total other comprehensive income (loss) | 125 | (81) | 140 |
comprehensive income | 5,583 | 20,796 | 22,474 |
Plus: comprehensive loss attributable to non-controlling interest | 218 | ||
comprehensive income attributable to Culp Inc. common shareholders | $ 5,801 | $ 20,796 | $ 22,474 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Capital Contributed in Excess of Par Value | Accumulated Earnings | Accumulated Other Comprehensive (Loss) Income | Shareholders' equity attributable to Culp Inc. | Non-Controlling Interest |
Balance at May. 01, 2016 | $ 128,812 | $ 614 | $ 43,795 | $ 84,547 | $ (144) | $ 128,812 | |
Balance (in shares) at May. 01, 2016 | 12,265,489 | ||||||
net income | 22,334 | 22,334 | 22,334 | ||||
stock-based compensation | 3,358 | 3,358 | 3,358 | ||||
unrealized gain (loss) on investments | 140 | 140 | 140 | ||||
excess tax benefit related to stock-based compensation | 657 | 657 | 657 | ||||
fully vested common stock award | 4,800 | ||||||
common stock issued in connection with vesting of performance based restricted stock units | $ 2 | (2) | |||||
common stock issued in connection with vesting of performance based restricted stock units (in shares) | 49,192 | ||||||
common stock issued in connection with exercise of stock options | $ 588 | $ 3 | 585 | 588 | |||
common stock issued in connection with exercise of stock options (in shares) | 68,000 | 68,000 | |||||
common stock surrendered for withholding taxes payable | $ (979) | $ (1) | (978) | (979) | |||
common stock surrendered for withholding taxes payable (in shares) | (30,850) | ||||||
dividends paid | (6,280) | (6,280) | (6,280) | ||||
Balance at Apr. 30, 2017 | 148,630 | $ 618 | 47,415 | 100,601 | (4) | 148,630 | |
Balance (in shares) at Apr. 30, 2017 | 12,356,631 | ||||||
net income | 20,877 | 20,877 | 20,877 | ||||
stock-based compensation | 2,212 | 2,212 | 2,212 | ||||
unrealized gain (loss) on foreign currency cash flow hedge instrument | (55) | (55) | (55) | ||||
unrealized gain (loss) on investments | (26) | (26) | (26) | ||||
fully vested common stock award | 4,800 | ||||||
common stock issued in connection with vesting of performance based restricted stock units | $ 6 | (6) | |||||
common stock issued in connection with vesting of performance based restricted stock units (in shares) | 118,845 | ||||||
common stock issued in connection with exercise of stock options | $ 111 | $ 1 | 110 | 111 | |||
common stock issued in connection with exercise of stock options (in shares) | 15,600 | 15,600 | |||||
common stock issued in connection with vesting of time-based restricted stock units (in shares) | 1,200 | ||||||
common stock surrendered for withholding taxes payable | $ (1,530) | $ (2) | (1,528) | (1,530) | |||
common stock surrendered for withholding taxes payable (in shares) | (46,800) | ||||||
dividends paid | (6,843) | (6,843) | (6,843) | ||||
Balance at Apr. 29, 2018 | 163,376 | $ 623 | 48,203 | 114,635 | (85) | 163,376 | |
Balance (in shares) at Apr. 29, 2018 | 12,450,276 | ||||||
net income | 5,458 | 5,676 | 5,676 | $ (218) | |||
acquistion of subsidiary with non-controlling interest | 4,532 | 4,532 | |||||
stock-based compensation | 130 | 130 | 130 | ||||
unrealized gain (loss) on foreign currency cash flow hedge instrument | 55 | 55 | 55 | ||||
unrealized gain (loss) on investments | $ 70 | 70 | 70 | ||||
fully vested common stock award | 6,548 | ||||||
common stock issued in connection with vesting of performance based restricted stock units | $ 7 | (7) | |||||
common stock issued in connection with vesting of performance based restricted stock units (in shares) | 136,996 | ||||||
common stock issued in connection with exercise of stock options (in shares) | 0 | ||||||
common stock issued in connection with vesting of time-based restricted stock units (in shares) | 1,200 | ||||||
common stock surrendered for withholding taxes payable | $ (1,319) | $ (2) | (1,317) | (1,319) | |||
common stock surrendered for withholding taxes payable (in shares) | (43,037) | ||||||
common stock repurchased | (3,323) | $ (8) | (3,315) | (3,323) | |||
common stock repurchased (in shares) | (160,823) | ||||||
dividends paid | (4,732) | (4,732) | (4,732) | ||||
Balance at Apr. 28, 2019 | $ 164,247 | $ 620 | $ 43,694 | $ 115,579 | $ 40 | $ 159,933 | $ 4,314 |
Balance (in shares) at Apr. 28, 2019 | 12,391,160 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 5,458 | $ 20,877 | $ 22,334 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
depreciation | 8,117 | 7,672 | 7,085 |
amortization | 780 | 351 | 244 |
stock-based compensation | 130 | 2,212 | 3,358 |
deferred income taxes | 2,027 | (2,482) | 4,667 |
gain on sale of equipment | (1,452) | (131) | |
loss from investment in unconsolidated joint venture | 114 | 266 | 23 |
realized loss on sale of short-term investments | 94 | 12 | |
foreign currency exchange (gains) losses | (17) | 66 | 78 |
changes in assets and liabilities, net of effects of acquisition of assets: | |||
accounts receivable | 2,339 | (299) | (1,555) |
inventories | 3,841 | (24) | (5,437) |
other current assets | 41 | 226 | (495) |
other assets | (65) | (81) | 30 |
accounts payable-trade | (3,427) | (4,028) | 5,828 |
accrued expenses and deferred compensation | (1,492) | (1,562) | 992 |
deferred revenue | (410) | (94) | |
accrued restructuring costs | 124 | ||
income taxes | (2,329) | 4,373 | (2,966) |
net cash provided by operating activities | 13,873 | 27,473 | 34,067 |
cash flows from investing activities | |||
net cash paid for acquisition of assets | (12,096) | (4,541) | |
capital expenditures | (3,261) | (8,005) | (11,858) |
proceeds from the sale of equipment | 1,894 | 6 | 141 |
investment in unconsolidated joint venture | (120) | (661) | (1,129) |
purchase of short-term investments (available for sale) | (10) | (49) | (44) |
proceeds from the sale of short-term investments (available for sale) | 2,458 | 2,000 | |
proceeds from the sale of short-term investments (held to maturity) | 25,680 | ||
purchase of long-term investments (held-to-maturity) | (31,020) | ||
proceeds from the sale of long-term investments (rabbi trust) | 1,233 | 57 | |
purchase of long-term investments (rabbi trust) | (1,011) | (1,902) | (1,351) |
proceeds from life insurance policy | 394 | ||
payments on life insurance policy | (18) | (18) | |
net cash provided by (used in) investing activities | 15,161 | (15,113) | (43,279) |
cash flows from financing activities: | |||
proceeds from lines of credit | 12,000 | 19,000 | 9,000 |
payments on lines of credit | (12,000) | (19,000) | (9,000) |
payments on vendor-financed capital expenditures | (1,412) | (3,750) | (1,050) |
proceeds from subordinated loan payable | 675 | ||
debt issuance costs | (50) | (2) | |
repurchases of common stock | (3,323) | ||
dividends paid | (4,732) | (6,843) | (6,280) |
common stock surrendered for withholding taxes payable | (1,319) | (1,530) | (429) |
proceeds from common stock issued | 111 | 37 | |
net cash used in financing activities | (10,161) | (12,012) | (7,724) |
effect of exchange rate changes on cash and cash equivalents | (93) | 85 | (56) |
increase (decrease) in cash and cash equivalents | 18,780 | 433 | (16,992) |
cash and cash equivalents at beginning of year | 21,228 | 20,795 | 37,787 |
cash and cash equivalents at end of year | $ 40,008 | $ 21,228 | $ 20,795 |
GENERAL AND SUMMARY OF SIGNIFIC
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Apr. 28, 2019 | |
Accounting Policies [Abstract] | |
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business Our operations are classified into three The mattress fabrics segment manufactures, sources, and sells fabrics and mattress covers primarily to bedding manufacturers. We have wholly-owned mattress fabric operations located in Stokesdale, NC, High Point, NC, Quebec, Canada, and a fifty percent owned cut and sew mattress cover operation located in Haiti. The upholstery fabrics segment develops, manufactures, sources, and sells fabrics primarily to residential and commercial furniture manufacturers. We have wholly-owned upholstery fabric operations located in Shanghai, China, Burlington, NC, and a recently acquired business located in Knoxville, TN (see Note 2 for further details regarding our business combinations). Effective June 22, 2018, we acquired an 80% ownership interest in eLuxury (see Note 2 for further details), a company that offers bedding accessories and home goods directly to consumers and businesses through its e-commerce platform. eLuxury’s financial information is included in our home accessories segment, which is our new finished products business that manufactures, sources, and sells bedding accessories and home goods directly to consumers and businesses through global e-commerce and business-to-business sales channels. Basis of Presentation The consolidated financial statements of the company have been prepared in accordance with U.S. generally accepted accounting principles. Principles of Consolidation Overall The consolidated financial statements include the accounts of the company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The accounts of our subsidiaries located in Shanghai, China and Poznan, Poland are consolidated as of April 30, a calendar month end, which are required by the Chinese and Polish governments, respectively. No events occurred related to the difference between our fiscal year end on the Sunday closest to April 30 and our China and Polish subsidiaries year end of April 30 that materially affected the company’s financial position, results of operations, or cash flows for fiscal years 2019, 2018, and 2017. Investment in Unconsolidated Joint Venture Effective January 1, 2017, Culp International Holdings, Ltd. (Culp), a wholly-owned subsidiary of Culp, Inc., entered into a joint venture agreement, pursuant to which Culp owns fifty percent of CLASS International Holdings, Ltd (CLIH). Culp’s investment in CLIH will be accounted for under the equity method of accounting in accordance with ASC Topic 823 – Investments – Equity Method and Joint Ventures. The equity method of accounting is required for an investee entity (i.e. CLIH) that is not consolidated but over which the reporting entity (i.e. Culp Inc.) exercises significant influence. Whether or not a reporting entity exercises significant influence with respect to an investee depends on an evaluation of several factors including, representation on the investee’s board of directors, voting rights, and ownership level. Under the equity method of accounting, CLIH’s accounts are not reflected within our Consolidated Balance Sheets and Statements of Net Income. Our share of earnings and losses from CLIH will be reflected in the caption “Income (loss) from investment in unconsolidated joint venture” in the Consolidated Statements of Net Income. Our carrying value in CLIH is reflected in the caption “Investment in unconsolidated joint venture” in our Consolidated Balance Sheets. If our carrying value in CLIH is reduced to zero, no further losses will be recorded in our consolidated financial statements. However, if CLIH subsequently reports income, we will not record our share of such income until it equals the amount of its share of losses previously recognized. Non-Controlling Interest In connection with the acquisition of our 80% ownership interest in eLuxury, we entered into an Equity Purchase Agreement (Equity Agreement) that contains substantive profit-sharing arrangement provisions in which it explicitly states the ownership interests at the effective date of this business combination and the allocation of net income or loss between Culp Inc., the controlling interest, and the noncontrolling interest. The Equity Agreement states that at the effective date of this acquisition (June 22, 2018), we acquired an 80% ownership interest in eLuxury with the seller retaining a 20% noncontrolling interest. Additionally, the Equity Agreement states that eLuxury’s net income or loss will be allocated at a percentage of 70% and 30% to Culp Inc. and the noncontrolling interest, respectively. As result of the acquisition of our 80% controlling interest, we included all the accounts of eLuxury in our consolidated financial statements and have eliminated all significant intercompany balances and transactions. Net income (loss) attributable to the noncontrolling interest in eLuxury is excluded from total consolidated net income attributable to Culp, Inc. common shareholders. Fiscal Year Our fiscal year is the 52 or 53-week period ending on the Sunday closest to April 30. Fiscal 2019, 2018, and 2017 each included 52 weeks. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include demand deposit and money market accounts. We consider all highly liquid instruments with original maturities of three months or less to be cash equivalents. A summary of our cash and cash equivalents by geographic area follows: (dollars in thousands) April 28, 2019 April 29, 2018 United States $ 28,078 9,452 China 9,670 9,221 Canada 2,196 2,349 Cayman Islands 64 206 $ 40,008 21,228 Throughout the year, we have cash balances regarding our U.S. operations in excess of federally insured amounts on deposit with a financial institution. We have not experienced any losses in such accounts. Management believes we are not exposed to any significant credit risk related to cash and cash equivalents. Short-Term Investments (Available for Sale) As of April 29, 2018, our short-term investments consisted of bond funds that were classified as available-for-sale and had an accumulated unrealized loss totaling $91,000. On April 29, 2018, our short-term investments were recorded at its fair value of $2.5 million and the fair value of our short-term investments approximated its cost basis. A summary of our short-term investments by geographic area follows: (dollars in thousands) April 28, 2019 April 29, 2018 Canada $ — 1,366 United States — 1,085 $ — 2,451 Long-Term Investments (Rabbi Trust) We have 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 investments in a money market fund and various mutual funds that are classified as available for sale. Our long-term investments are classified as available for sale and were recorded at its fair value of $7.1 million and $7.3 million at April 28, 2019 and April 29, 2018 respectively. Our long-term investments had an accumulated unrealized gain totaling $40,000 and $61,000 at April 28, 2019, and April 29, 2018, respectively. The fair value of our long-term investments associated with our Rabbi Trust approximates its cost basis. Investments (Held-To-Maturity) Our investments classified as held-to-maturity consisted of investment grade U.S. corporate bonds with maturities that ranged from 2 to 2.5 At April 28, 2019, the amortized cost and fair value of our held-to-maturity investments were $5.0 million. At April 29, 2018, the amortized cost of our held-to-maturity investments were $30.8 million and the fair value was $30.6 million. Our U.S. corporate bonds were classified as level 2 as they were traded over the counter within a broker network and not on an active market. The fair value of our U.S. corporate bonds was determined based on a published source that provided an average bid price. The average bid price was based on various broker prices that were determined based on market conditions, interest rates, and the rating of the respective U.S. corporate bond. Accounts Receivable Substantially all of our accounts receivable are due from manufacturers in the bedding and furniture industries. We grant credit to customers and generally do not require collateral. We record an allowance for doubtful accounts that reflects estimates of probable credit losses. Management continuously performs credit evaluations of our customers, considering numerous inputs including financial position, past payment history, cash flows, management ability, historical loss experience and economic conditions and prospects. We do not have any off-balance sheet credit exposure related to our customers. Inventories We account for inventories at the lower of first-in, first-out (FIFO) cost or net realizable value. Management continually examines inventory to determine if there are indicators that the carrying value exceeds its net realizable value. Experience has shown that the most significant indicators of the need for inventory markdowns are the age of the inventory and the planned discontinuance of certain patterns. As a result, we provide inventory valuation write-downs based upon established percentages based on the age of the inventory that are continually evaluated as events and market conditions require. Our inventory aging categories are six, nine, twelve, and fifteen months. We also provide inventory valuation write-downs based on the planned discontinuance of certain products based on the current market values at that time as compared to their current carrying values. Property, Plant and Equipment Property, plant and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. Major renewals and betterments are capitalized. Maintenance, repairs and minor renewals are expensed as incurred. When properties or equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts. Amounts received on disposal less the book value of assets sold are charged or credited to income from operations. Management reviews long-lived assets, which consist principally of property, plant and equipment, for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recovered. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of the asset to future net undiscounted cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the excess of the carrying amount over the fair value of the asset. After the impairment loss is recognized, the adjusted carrying amount is the new accounting basis. Assets to be disposed of by sale are reported at the lower of the carrying value or fair value less cost to sell when the company has committed to a disposal plan and would be reported separately as assets held for sale in the Consolidated Balance Sheets. Advertising Costs Advertising costs are expensed as incurred. Advertising costs totaled $2.2 million in fiscal 2019 and pertained to our home accessories segment. No advertising costs were incurred during fiscal 2018 and 2017, respectively. Interest Costs Interest costs incurred were $42,000, $194,000, and $158,000 in fiscal years 2019, 2018, and 2017, respectively. We capitalize interest costs incurred on funds used to construct property, plant, and equipment. The capitalized interest is recorded as part of the asset to which it relates and is depreciated over the asset’s estimated useful life. No interest costs for the construction of qualifying fixed assets were capitalized during fiscal 2019. Interest costs of $100,000 and $158,000 were capitalized for the construction of qualifying fixed assets during fiscal 2018 and 2017, respectively. Foreign Currency Adjustments The United States dollar is the functional currency for the company’s Canadian and Chinese subsidiaries. All monetary foreign currency asset and liability accounts are remeasured into U.S. dollars at year-end exchange rates. Non-monetary asset and liabilities such as property, plant, and equipment are recorded at historical exchange rates. Foreign currency revenues and expenses are remeasured at average exchange rates in effect during the year, except for certain expenses related to balance sheet amounts remeasured at historical exchange rates. Exchange gains and losses from remeasurement of foreign currency denominated monetary assets and liabilities are recorded in the other expense line item in the Consolidated Statements of Net Income in the period in which they occur. A summary of our foreign currency exchange (losses) gains by geographic area follows: (dollars in thousands) 2019 2018 2017 China $ — (298 ) 111 Canada 2 (8 ) (120 ) Euro foreign exchange contract (64 ) — — $ (62 ) (306 ) (9 ) See Note 18 for additional details regarding our Euro foreign exchange contract. Goodwill In accordance with ASC Topic 350, Intangibles – Goodwill and Other, our operations are currently classified into four reporting units: mattress fabrics, upholstery fabrics, Read Window Products, LLC, and home accessories. We assess goodwill for impairment at the end of each fiscal year or between annual tests if we believe indicators of impairment exist. Such indicators could include, but are not limited to (1) a deterioration in general economic conditions, (2) deterioration in the environment of the industry and markets in which we operate, or (3) unanticipated competition. We first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we would conduct a two-step quantitative goodwill impairment test. The first step of the impairment test involves comparing the fair value of the applicable reporting unit with its carrying value. We estimate the fair values of our reporting units using a combination of the income or discounted cash flows approach and the market approach, which utilizes comparable companies’ data. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, management performs the second step of the goodwill impairment test. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit’s goodwill with the carrying value of that goodwill. The amount, by which the carrying value of the goodwill exceeds its implied fair value, if any, is recognized as an impairment loss. Our evaluation of goodwill completed as of April 28, 2019, resulted in no impairment losses. Income Taxes Deferred Income Taxes – Overall Income taxes are accounted for under the asset and liability method. Deferred income taxes are recognized for temporary differences between the financial statement carrying amounts and the tax basis of our assets and liabilities and operating loss and tax credit carryforwards at income tax rates expected to be in effect when such amounts are realized or settled. The effect on deferred income taxes of a change in tax rates is recognized in income tax expense (benefit) in the period that includes the enactment date. Deferred Income Taxes – Valuation Allowance We evaluate our deferred income taxes to determine if a valuation allowance is required. We 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 we operate in multiple jurisdictions, we assess the need for a valuation allowance on a jurisdiction-by-jurisdiction basis, considering the effects of local tax law. Deferred Income Taxes – Undistributed Earnings from Foreign Subsidiaries We assess whether the undistributed earnings from our foreign subsidiaries will be reinvested indefinitely or eventually distributed to our U.S. parent company. We are required to record a deferred tax liability for undistributed earnings from foreign subsidiaries that will not be reinvested indefinitely. 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. For fiscal 2019 and beyond, the 2017 Tax Cuts and Jobs Act allows a U.S. corporation a 100% dividend received deduction for earnings and profits received from a 10% owned foreign corporation. Therefore, a deferred tax liability will only be required for withholding taxes that are incurred by our foreign subsidiaries at the time earnings and profits are distributed. Uncertainty in Income Taxes We recognize the tax impact from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax impact recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. Penalties and interest related to uncertain tax positions are recorded as income tax expense. Significant judgment is required in the identification of uncertain tax positions and in the estimation of penalties and interest on uncertain tax positions. Revenue Recognition On April 30, 2018 (the beginning of fiscal 2019), we adopted ASU 2014-09 “Revenue from Contracts with Customers” (ASC Topic 606 or the “new standard”). ASC Topic 606 requires us to disclose significant judgments and changes in judgments in applying the new standard that significantly affect the determination of the amount and timing of revenue from contracts with customers. The application of the new standard did not materially affect our accounting policies followed in fiscal years 2018 and 2017 with regards to revenue recognition, determination of transaction prices, and revenue measurement. However, as required by ASC Topic 606, we recorded a significant reclassification adjustment from a contra account applied to accounts receivable to accrued expenses for estimated sales returns and allowances (see Note 4 to the consolidated financial statements for further details). See below for disclosure of our significant judgements and accounting policies or determining the amount and timing of revenue from contracts with customers. Revenue Recognition Revenue is recognized upon the transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We have determined that our customer purchase orders represent contracts. In addition to purchase orders, we also have supply contracts with certain customers that define standard terms and conditions. Our contracts generally include promises to sell either upholstery fabric, mattress fabric, or bedding accessories and home goods products, or to provide customized fabrication services, and installation services of our own products associated with customized window treatments. Revenue associated with sales of our products are recognized at the point-in-time when control of the promised goods has been transferred to the customer. The point-in-time when control transfers to the customer depends on the contractually agreed upon shipping terms, but typically occurs once the product has been shipped or once it has been delivered to a location specified by the customer. For certain warehousing arrangements, transfer of control to the customer is deemed to have occurred when the customer pulls the inventory for use in their production. Revenue associated with our customized fabrication services, which are performed on various types of window treatments, is recognized over time once the customized products are deemed to have no alternative use and for which we have an enforceable right to payment for the services performed. Revenue for our customized fabrication services is recognized over time using the output method based on units produced. Revenue associated with our installation services of own products is also recognized over time as the customer receives and consumes the benefits of the promised installation services. Revenue associated with our installation services is recognized over time using the output method based on units installed. Transaction Price The transaction price is typically allocated to performance obligations based upon stand-alone selling prices. We did not disclose the value of unsatisfied performance obligations as substantially all of any unsatisfied performance obligations as of April 28, 2019, will be satisfied within one year or less. Revenue Measurement Revenue is measured as the amount of consideration we expect to receive in exchange for the transfer of the promised products and services. The amount of consideration we expect to receive changes due to variable consideration are associated with allowances for sales returns, early payment discounts, and volume rebates that we offer to customers. The amount of variable consideration which is included in the transaction price is only included in net sales to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur in a future period. Our mattress fabrics and upholstery fabrics business segments only allow product returns to the extent that the products or services did not meet the contractually agreed upon specifications at the time of sale. Customers must receive authorization prior to returning products. Our home accessories business segment allows returns for any reason provided the product is returned within the stated time frame, generally 30 days, unless the product was customized in which case of a defect must be present in order to return the product. Estimates of allowances for sales returns are based on historical data, current potential product return issues, and known sales returns for which customers have been granted return authorization. Known sales returns for which customers have been granted permission to return products for a refund or credit, continue to be recorded as a contra account receivable. Estimates for potential future sales returns and related customer accommodations are recorded within accrued expenses. We record estimates for sales returns on a gross basis rather than a net basis and an estimate for a right of return asset is recorded in other current assets and cost of goods sold. Variable consideration associated with early payment cash discounts are estimated using current payment trends and historical data on a customer-by-customer basis. The variable consideration associated with volume rebates are based on the portion of the rebate earned relative to the total amount of rebates the customer is expected to earn over the rebate period as determined using historical data and projections. We evaluated the nature of our warranties related to our contracts with customers and determined that any such warranties are assurance-type warranties that cover only compliance with agreed upon specifications, and therefore are not considered separate performance obligations. Shipping and Handling Costs Revenue received for shipping and handling costs, which is immaterial for all periods presented, is included in net sales. Shipping costs, principally freight, that comprise payments to third-party shippers are classified as cost of sales. Handling costs represent finished goods warehousing costs incurred to store, move, and prepare products for shipment in the company’s various distribution facilities. Handling costs were $4.2 million, $4.6 million and $4.6 million in fiscal 2019, 2018, and 2017, respectively, and are included in selling, general and administrative expenses. Sales and Other Taxes Sales and other taxes collected from customers and remitted to governmental authorities are presented on a net basis and, as such, are excluded from revenues. Stock-Based Compensation Our equity incentive plans are described more fully in Note 16. ASC 718, “Compensation – Stock Compensation”, requires that all stock-based compensation be recognized as compensation expense in the financial statements and that such cost be measured at the grant date for awards issued to employees and the company’s board of directors. Equity awards issued to non-employees are measured at the earlier date of when the performance criteria are met or at the end of each reporting period. Compensation expense for time vested restricted stock awards are amortized on a straight-line basis over the remaining vesting periods. Compensation expense for performance based restricted stock units are recorded based on an assessment each reporting period of the probability if certain performance goals are to be met during the contingent vesting period. If performance goals are not probable of occurrence, no compensation expense was recognized. Previously recognized compensation cost on performance goals that were previously deemed probable and subsequently, were not or expected to be met, was reversed. Fair Value of Financial Instruments The accompanying consolidated financial statements include certain financial instruments, and the fair market value of such instruments may differ from amounts reflected on a historical basis. These financial instruments include our short-term and long-term investments. The fair value measurements of our financial instruments are described more fully in Note 17. The carrying amount of cash and cash equivalents, short-term investments, accounts receivable, other current assets, accounts payable and accrued expenses approximates fair value because of the short maturity of these financial instruments. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASC Topic 606. ASC Topic 606 was intended to enhance the comparability of revenue recognition practices and will be applied to all contracts with customers. Improved disclosures related to the nature, amount, timing, and uncertainty of revenue that is recognized are requirements under the amended guidance. The new revenue standard became effective at the beginning of our fiscal 2019, and therefore, we applied the new revenue guidance in our first quarter of fiscal 2019 interim financial statements. This guidance did not have a material impact on our results of operations and financial position but did have a material impact on the disclosures required in our notes to the consolidated financial statements, which are disclosed in Note 4. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , to address the diversity in how certain cash receipts and cash payments are presented in the statement of cash flows. This new guidance provides clarity around the cash flow classification for eight specific issues in an effort to reduce the current and potential future diversity in practice. This new standard, which is to be applied retrospectively, became effective at the beginning of our fiscal 2019, and therefore, we applied this new guidance in our first quarter of fiscal 2019 interim financial statements. During the first quarter of fiscal 2019, this new guidance did not impact our results of operations, balance sheet, or statement of cash flows. Currently, we do expect that this guidance will be applicable in determining how we classify certain contingent payments associated with our business combinations (see note 2) as either investing or financing activities. This guidance requires cash payments not made soon after the acquisition date of a business combination by an acquirer to settle a contingent consideration liability should be separated and classified as cash outflows from financing activities. In comparison, cash payments made soon after the acquisition date should be separated and classified as cash outflows from investing activities. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, to reduce the diversity in practice and complexity associated with accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Prior GAAP prohibited recognition of deferred income taxes for an intra-entity transfer until the asset had been sold to an outside party. The new pronouncement stipulates that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This new standard, which is required to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings, became effective at the beginning of our fiscal 2019. Therefore, we were required to apply this new guidance in our first quarter fiscal 2019 interim financial statements. This guidance did not impact our results of operations and financial position. Recently Issued Accounting Pronouncements Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which increases transparency and comparability among companies accounting for lease transactions. The most significant change of this update will require the recognition of lease assets and liabilities on the balance sheet for operating lease arrangements with lease terms greater than twelve months for lessees. This update will require a modified retrospective application which includes a number of optional practical expedients related to the identification and classification of leases commenced before the effective date. This ASU is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2018. The FASB recently issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements”, which allows entities to apply the transition provisions of the new standard at its adoption date instead of the earliest comparative period presented in the consolidated financial statements. This ASU allows entities to continue to use Topic 840, Leases , including its disclosure requirements, in the comparative years presented in the year the new leases standard is adopted. Entities that elect this option would still adopt the new leases standard using a modified retrospective transition method but would recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption rather than the earliest years presented. We are required to apply this guidance in our fiscal 2020 interim and annual financial statements. We expect this guidance upon adoption to increase our lease liability by approximately $7.2 million with a corresponding increase to recognize our right-of-use assets by approximately $7.2 million, with no material impact to our statements of net income. Additionally, Topic 842 is expected to significantly impact the extensiveness of our disclosures required in our notes to the consolidated financial statements. There are no other new accounting pronouncements that are expected to have a significant impact on our consolidated financial statements. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Apr. 28, 2019 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | 2. BUSINESS COMBINATIONS eLuxury, LLC (eLuxury) Overview Effective June 22, 2018, we entered into an Equity Purchase Agreement (Equity Agreement) in which we acquired an 80% ownership interest in eLuxury, a company that offers bedding accessories and home goods directly to consumers. eLuxury’s primary products include a line of mattress pads manufactured at eLuxury’s facility located in Evansville, Indiana. eLuxury also offers handmade platform beds, cotton bed sheets, as well as other bedding items. Their products are available on eLuxury’s own branded website, eLuxury.com , Amazon, and other leading online retailers for specialty home goods. This acquisition will provide a new sales channel for eLuxury’s bedding accessories and will expand our opportunity to participate in the e-commerce direct-to-consumer space. This business combination brings together eLuxury’s experience in e-commerce, online brand building, and direct-to-consumer shopping and fulfillment expertise with our global production, sourcing, and distribution capabilities. We also have an opportunity to market our new line of bedding accessories, and home products, as well as other finished products that we may develop, through this e-commerce platform. The estimated consideration given for the 80% ownership interest in eLuxury totaled $18.1 million, of which $12.5 million represents the estimated purchase price and $5.6 million represents the estimated fair value for contingent consideration associated with an earn-out obligation (see below for further details). Of the $12.5 million estimated purchase price, $11.6 million was paid at closing on June 22, 2018, $185,000 was paid in August 2018, and $749,000 is to be paid in September 2019, subject to certain conditions as defined in the Equity Agreement. Assets Acquired and Liabilities Assumed The following table presents the final allocation of the acquisition cost to the assets acquired and liabilities assumed based on their fair values. (dollars in thousands) Fair Value Goodwill $ 13,653 Tradename 6,549 Equipment 2,179 Inventory 1,804 Accounts receivable and other current assets 108 Accounts payable (1,336 ) Accrued expenses (295 ) Non-controlling interest in eLuxury (4,532 ) $ 18,130 We recorded the tradename at fair market value based on the relief from royalty method. This tradename was determined to have an indefinite useful life and, therefore, is not being amortized. Equipment will be depreciated on a straight-line basis over useful lives ranging from five to ten years. The goodwill related to this acquisition is attributable to eLuxury’s reputation with the products they offer and management’s experience in e-commerce, online brand building, and direct-to-consumer shopping and fulfillment expertise. Goodwill is deductible for income tax purposes over the statutory period of fifteen years. As mentioned above, the Equity Agreement contains a contingent consideration arrangement that requires us to pay the seller, who is also the owner of the noncontrolling interest, an earn-out payment based on a multiple of adjusted EBITDA, as defined in the Equity Agreement, for the twelve-month period ending August 31, 2021, less $12.0 million. We recorded a contingent liability at the acquisition date for this earn-out obligation at its fair value totaling $5.6 million based on the Black Scholes pricing model. Non-Controlling Interest The Equity Agreement contains substantive profit-sharing arrangement provisions in which it explicitly states the ownership interests at the effective date of this business combination and the allocation of net income or loss between Culp Inc., the controlling interest, and the noncontrolling interest. The Equity Agreement states that at the effective date of this acquisition (June 22, 2018), we acquired an 80% ownership interest in eLuxury with the seller retaining a 20% noncontrolling interest. Additionally, the Equity Agreement states that eLuxury’s net income or loss will be allocated at a percentage of 70% and 30% to Culp Inc. and the noncontrolling interest, respectively. Based on the terms of the Equity Agreement, we believe the related risks associated with the ownership interests are aligned and therefore, the total consideration of $18.1 million for the 80% controlling interest provides information for the equity value of eLuxury as a whole, and therefore, is useful in estimating fair value of the 20% noncontrolling interest. In order to determine the carrying value of our noncontrolling interest in eLuxury, we applied the Hypothetical-Liquidation-At-Book-Value method (HLBV). HLBV is an approach that is used in practice to determine the carrying value of a noncontrolling interest if it is consistent with an existing profit-sharing arrangement such as the Equity Agreement. Therefore, the carrying amount of the noncontrolling interest of $4.3 million represents the $4.5 million fair value determined at the acquisition date minus its allocation of net loss totaling $ 218 Other Acquisitions costs totaling $270,000 were in included in selling, general, and administrative expenses in our fiscal 2019 Consolidated Statement of Net Income. Actual revenue and net loss for the period June 22, 2018 through April 28, 2019 were included in our fiscal 2019 Consolidated Statement of Net Income and totaled $16.0 million and $726,000, respectively. Read Window Products, LLC (Read) Overview Effective April 1, 2018, we entered into an Asset Purchase Agreement (Asset Agreement) to acquire certain assets and assume certain liabilities of Read, a source of custom window treatments for the hospitality and commercial industries. Based in Knoxville, Tennessee, Read is a turn-key provider of window treatments that offers sourcing of upholstery fabrics and other products, measuring, and installation services of their own products. Read’s custom product line includes motorization, shades, upholstered drapery, upholstered headboards, and shower curtains. In addition, Read supplies soft goods such as decorative top sheets, coverlets, duvet covers, bed skirts, bolsters and pillows, for leading hospitality brands worldwide. The addition of window treatments and other soft goods to our product line allows us to be a more complete source of fabrics for the hospitality market. The purchase price for the net assets acquired was $5.7 million, of which $4.5 million was paid at closing on April 1, 2018, $375,000 was paid in May 2018, and $763,000 was paid in July in 2019. Assets Acquired and Liabilities Assumed The following table presents the final allocation of the acquisition cost to the assets acquired and liabilities assumed based on their fair values. (dollars in thousands) Fair Value Customer relationships $ 2,247 Goodwill 2,107 Inventory 1,128 Accounts receivable 897 Tradename 683 Property, plant & equipment 379 Other assets 35 Deferred revenue (903 ) Accounts payable (719 ) Accrued expenses (174 ) $ 5,680 We recorded customer relationships at fair market value based on a multi-period excess earnings valuation model. These customer relationships will be amortized on a straight-line basis over their nine-year useful life. We recorded the tradename at fair market based on the relief from royalty method. This tradename was determined to have an indefinite useful life and, therefore, is not being amortized. Equipment will be depreciated on a straight-line basis over useful lives ranging from three to ten years. The goodwill related to this acquisition is attributable to Read’s reputation with the products and services they provide and the collective experience of management with regards to its operations, customers, and industry. Goodwill is deductible for income tax purposes over the statutory period of fifteen years. The Asset Agreement contains a contingent consideration arrangement that requires us to pay a former shareholder of Read an earn-out payment based on adjusted EBITDA, as defined in the Asset Agreement, for calendar year 2018 in excess of fifty percent of a pre-established adjusted EBITDA. based on actual financial results in relation to the pre-established adjusted EBITDA target, a contingent payment is not required under the terms of the agreement, and therefore, no contingent liability has been recorded. Other Acquisition costs totaling $339,000 were included in selling, general, and administrative expenses in our fiscal 2018 Consolidated Statement of Net Income. Actual revenue and net income for the month of April 2018 were included in our Consolidated Statement of Net Income and totaled $880,000 and $5,000, respectively. Pro Forma Financial Information The following unaudited pro forma consolidated results of operations for the years ending April 28, 2019, April 29, 2018, and April 30, 2017, have been prepared as if the acquisitions of eLuxury had occurred on May 1, 2017 and Read had occurred on May 2, 2016. (dollars in thousands, except per share data April 28, 2019 April 29, 2018 April 30, 2017 Net Sales $ 299,599 $ 354,509 $ 321,398 Income from operations 12,616 26,948 30,441 Net income 5,432 20,299 22,552 Net loss - noncontrolling interest (226 ) (48 ) — Net income – Culp Inc. common shareholders 5,658 20,347 22,552 Net income per share (basic) – Culp Inc. common shareholders 0.45 1.64 1.83 Net income per share (diluted) – Culp Inc. common shareholders 0.45 1.61 1.80 The unaudited pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved had the acquisition been consummated as of that time, nor is it intended to be a projection of future results. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Apr. 28, 2019 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | 3. ACCOUNTS RECEIVABLE A summary of accounts receivable follows: (dollars in thousands) April 28, 2019 April 29, 2018 customers $ 24,370 28,097 allowance for doubtful accounts (393 ) (357 ) allowance for cash discounts (186 ) (245 ) reserve for returns and allowances and discounts (1) (40 ) (1,188 ) $ 23,751 26,307 (1) Due to the adoption of ASC Topic 606, Revenue from Contracts with Customers, certain balance sheet reclassifications were required regarding our allowance for sales returns and allowances for the current year’s presentation only. See Note 4 to the consolidated financial statements for required balance sheet disclosures associated with the adoption of ASC Topic 606. A summary of the activity in the allowance for doubtful accounts follows: (dollars in thousands) 2019 2018 2017 beginning balance $ (357 ) (414 ) (1,088 ) provision for bad debts (84 ) 57 222 write-offs, net of recoveries 48 — 452 ending balance $ (393 ) (357 ) (414 ) A summary of the activity in the allowance for returns and allowances and discounts follows: (dollars in thousands) 2019 2018 2017 beginning balance $ (1,433 ) (1,220 ) (962 ) adoption of ASC Topic 606 (1) 1,145 — — provision for returns and allowances and discounts (2,180 ) (3,295 ) (3,061 ) credits issued 2,242 3,082 2,803 ending balance $ (226 ) (1,433 ) (1,220 ) |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Apr. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 4. REVENUE FROM CONTRACTS WITH CUSTOMERS On April 30, 2018, we adopted ASC Topic 606 using the modified retrospective method. The modified retrospective method requires an adjustment to the opening balance of retained earnings for the cumulative effect of initially applying the new revenue standard. As permitted by the transition guidance, we elected to apply the new standard only to contracts that were not completed at the date of initial application, and therefore, we only evaluated those contracts that were in-process and not completed before April 30, 2018. The application of the new standard did not result in a material impact to the opening balance of retained earnings, and therefore no adjustment to retained earnings was recorded. The largest impact of applying the new standard are the required qualitative and quantitative disclosures and the presentation and classification related to estimates of allowances for sales returns. The cumulative effect of the classification changes related to our allowances for sales returns on our April 30, 2018, balance sheet are as follows: (dollars in thousands) Balance at April 29, 2018 Adjustments Due to ASC 606 Adoption (1) Balance at April 30, 2018 Balance Sheet Assets: Accounts Receivable $ 26,307 $ 1,145 $ 27,452 Other Current Assets 2,870 27 2,897 Liabilities: Accrued Expenses 9,325 1,172 10,497 (1) The adjustments associated with the adoption of the new standard are related to classifying allowances for estimated sales returns as a liability rather than as a contra account to accounts receivable on the consolidated balance sheet for the current year’s presentation only. As required under the new standard, we also recorded the estimated allowance for sales returns on a gross basis rather than a net basis by separately reflecting a return goods asset within other current assets rather than netting such amounts with the estimated sales returns liability. Currently, we expect the adoption of this new standard to be immaterial to our net income on an ongoing basis. The effect of adopting ASC 606 on our Consolidated Statements of Net Income for fiscal 2019, are as follows: (dollars in thousands) Fiscal 2019 Adjustments Due to ASC 606 Adoption (1) BalancesWithout ASC 606 Adoption Statements of Net Income Net Sales $ 296,669 $ (28 ) $ 296,641 Cost of Sales 246,471 (28 ) 246,443 The effect of adopting ASC 606 on our Consolidated Balance Sheets at April 28, 2019 is as follows: (dollars in thousands) April 28, 2019 Adjustments Due to ASC 606 Adoption (1) BalancesWithout ASC 606 Adoption Balance Sheet Assets: Accounts Receivable $ 23,751 $ (854 ) $ 22,897 Other Current Assets 2,849 (28 ) 2,821 Liabilities: Accrued Expenses $ 9,192 (882 ) $ 8,310 Nature of Performance Obligations Our operations are classified into three business segments: mattress fabrics, upholstery fabrics, and home accessories. The mattress fabrics segment manufactures, sources, and sells fabrics and mattress covers primarily to bedding manufacturers. The upholstery fabrics segment develops, manufactures, sources, and sells fabrics primarily to residential and commercial furniture manufacturers. Effective April 1, 2018, we acquired Read (see Note 2 for further details), a turn-key provider of window treatments that offers sourcing of upholstery fabrics and other products, measuring, and installation services of their own products for the hospitality and commercial industries. In addition, Read supplies soft goods such as decorative top sheets, coverlets, duvet covers, bed skirts, bolsters and pillows. The home accessories segment is our new finished products business that manufactures, sources, and sells bedding accessories and home goods directly to consumers and businesses through global e-commerce, business-to-business and other sales channels. Our primary performance obligations include the sale of mattress fabrics, upholstery fabrics, bedding and home accessories products, as well as the performance of customized fabrication and installation services of our own products associated with window treatments. Significant Judgments See Note 1 for disclosure of our accounting policies regarding our significant judgements associated with revenue recognition, determining our transaction prices, and revenue measurement. Contract Assets & Liabilities Certain contracts, primarily those for customized fabrication and installation services, require upfront customer deposits that result in a contract liability which is recorded on the Consolidated Balance Sheet as deferred revenue. If upfront deposits or prepayment are not required, customers may be granted credit terms which generally range from 15 – 45 days. Such terms are common within the industries in which we are associated and are not considered financing arrangements. There were no A summary of the activity of deferred revenue for fiscal 2019 follows: (dollars in thousands) Fiscal 2019 Balance as of April 29, 2018 $ 809 Revenue recognized on contract liabilities during the period (2,725 ) Payments received for services not yet rendered during the period 2,315 Balance as of April 28, 2019 $ 399 Disaggregation of Revenue The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for fiscal 2019: (dollars in thousands) Mattress Fabrics Upholstery Fabrics Home Accessories Total Products transferred at a point in time $ 145,059 $ 125,294 $ 15,956 $ 286,309 Services transferred over time — 10,360 — 10,360 Total Net Sales $ 145,059 $ 135,654 $ 15,956 $ 296,669 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Apr. 28, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 5. INVENTORIES A summary of inventories follows: (dollars in thousands) April 28, 2019 April 29, 2018 raw materials $ 5,617 6,024 work-in-process 2,289 3,264 finished goods 42,954 44,166 $ 50,860 53,454 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Apr. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | 6. PROPERTY, PLANT AND EQUIPMENT A summary of property, plant and equipment follows: (dollars in thousands) depreciable lives (in years) April 28, 2019 April 29, 2018 land and improvements 0-10 $ 838 963 buildings and improvements 7-40 30,712 31,022 leasehold improvements ** 2,180 1,993 machinery and equipment 3-12 72,641 72,924 office furniture and equipment 3-10 9,834 9,514 capital projects in progress 1,263 2,086 117,468 118,502 accumulated depreciation (69,079 ) (66,708 ) $ 48,389 51,794 ** Shorter of life of lease or useful life. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Apr. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 7. INTANGIBLE ASSETS A summary of intangible assets follows: (dollars in thousands) April 28, 2019 April 29, 2018 Tradenames $ 7,232 $ 683 Customer relationships, net 2,538 2,839 Non-compete agreement, net 678 753 $ 10,448 $ 4,275 Tradename A summary of the carrying amount of our tradenames from our recent acquisitions (see Note 2) follow: (dollars in thousands) April 28, 2019 April 29, 2018 Read $ 683 $ 683 eLuxury 6,549 — $ 7,232 $ 683 Our tradenames were recorded at their fair market values at the effective date of their acquisitions (see Note 2) and were based on the relief from royalty method. These tradenames were determined to have an indefinite useful life and therefore, are not being amortized. However, these tradenames will be assessed annually for impairment. Customer Relationships A summary of the change in the carrying amount of our customer relationships follows: (dollars in thousands) 2019 2018 2017 beginning balance $ 2,839 664 715 acquisition of assets (note 2) — 2,247 — amortization expense (301 ) (72 ) (51 ) loss on impairment — — — ending balance $ 2,538 2,839 664 In connection with our asset purchase agreement with Read (see note 2) on April 1, 2018, we purchased certain customer relationships. We recorded these customer relationships at fair market value totaling $2.2 million based on a multi-period excess earnings valuation model. These customer relationships will be amortized on a straight-line basis over their nine-year useful life. Additionally, we have customer relationships from a prior acquisition with a carrying amount of $562,000 at April 28, 2019. These customer relationships are being amortized on a straight-line basis over their seventeen-year useful life. The gross carrying amount of our customer relationships was $3.1 million at April 28, 2019 and April 29, 2018, respectively. Accumulated amortization for these customer relationships were $577,000 and $276,000 at April 28, 2019 and April 29, 2018, respectively. The remaining amortization expense for the next five fiscal years and thereafter follows: FY 2020 - $301,000; FY 2021 - $301,000; FY 2022 - $301,000; FY 2023 - $301,000; FY 2024 - $301,000; and Thereafter - $1,033,000. The weighted average amortization period for our customer relationships is 8.6 years as of April 28, 2019. Non-Compete Agreement A summary of the change in the carrying amount of our non-compete agreement follows: (dollars in thousands) 2019 2018 2017 beginning balance $ 753 828 903 amortization expense (75 ) (75 ) (75 ) loss on impairment — — — ending balance $ 678 753 828 We have a non-compete agreement from a prior acquisition that is being amortized on a straight-line basis over its fifteen-year useful life. The gross carrying amount of this non-compete agreement was $2.0 million at April 28, 2019 and April 29, 2018, respectively. Accumulated amortization for this non-compete agreement was $1.4 million and $1.3 million at April 28, 2019 and April 29, 2018, respectively. The remaining amortization expense for the next five years and thereafter follows: FY 2020 - $75,000; FY 2021 - $75,000; FY 2022 - $75,000; FY 2023 - $75,000; FY 2024 - $75,000, and Thereafter - $303,000. The weighted average amortization period for the non-compete agreement is 9.0 years as of April 28, 2019. |
GOODWILL
GOODWILL | 12 Months Ended |
Apr. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | 8. GOODWILL A summary of the change in the carrying amount of goodwill follows: (dollars in thousands) 2019 2018 2017 beginning balance $ 13,569 11,462 11,462 acquisition of assets (note 2) 13,653 2,107 — loss on impairment — — — ending balance $ 27,222 13,569 11,462 |
INVESTMENT IN UNCONSOLIDATED JO
INVESTMENT IN UNCONSOLIDATED JOINT VENTURE | 12 Months Ended |
Apr. 28, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN UNCONSOLIDATED JOINT VENTURE | 9. INVESTMENT IN UNCONSOLIDATED JOINT VENTURE Culp International Holdings, Ltd. (Culp), a wholly-owned subsidiary of the company, entered into a joint venture agreement, pursuant to which Culp owns fifty percent of CLASS International Holdings, Ltd (CLIH). CLIH produces cut and sewn mattress covers, and its operations are located in a modern industrial park on the northeastern border of Haiti, which borders the Dominican Republic. CLIH commenced production in the second quarter of fiscal 2018 (October 2017) and complements our mattress fabric operations with a mirrored platform that enhances our ability to meet customer demand while adding a lower cost operation to our platform. CLIH incurred a net loss of $ 227 532 46 114 266 23 The following table summarizes information of assets, liabilities and members’ equity of our equity method investment in CLIH: (dollars in thousands) April 28, 2019 April 29, 2018 total assets $ 3,126 $ 3,130 total liabilities $ 111 $ 128 total members’ equity $ 3,015 $ 3,002 At April 28, 2019 and April 29, 2018, our investment in CLIH totaled $1.5 million, which represents the company’s fifty percent ownership in CLIH. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Apr. 28, 2019 | |
Text Block [Abstract] | |
ACCRUED EXPENSES | 10. ACCRUED EXPENSES A summary of accrued expenses follows: (dollars in thousands) April 28, 2019 April 29, 2018 compensation, commissions and related benefits $ 4,229 6,918 interest 4 20 other 5,292 3,150 $ 9,525 10,088 At April 28, 2019, we had accrued expenses totaling $9.5 million, of which $9.2 million and $333,000 were classified as current accrued expenses and long-term accrued expenses, respectively, in the accompanying Consolidated Balance Sheets. As of April 29, 2018, we had accrued expense totaling $10.1 million, of which $9.3 million and $763,000 were classified as current accrued expenses and long-term accrued expenses, respectively, in the accompanying Consolidated Balance Sheets. |
EXIT AND DISPOSAL ACTIVITY
EXIT AND DISPOSAL ACTIVITY | 12 Months Ended |
Apr. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
EXIT AND DISPOSAL ACTIVITY | 11. EXIT AND DISPOSAL ACTIVITY On June 12, 2018, our board of directors announced the closure of our upholstery fabrics manufacturing facility in Anderson, South Carolina. This closure was completed during the second quarter of fiscal 2019 and was due to a continued decline in demand for the products manufactured at this facility, reflecting a change in consumer style preferences. The following summarizes our restructuring credit and related charges totaling $1.6 million that were associated with the above exit and disposal activity: (dollars in thousands) 2019 Inventory markdowns $ 1,564 Other operating costs associated with a closed facility 824 Employee termination benefits 661 Gain on sale of property, plant, and equipment (1,486 ) $ 1,563 Of this total net charge, a charge of $2.3 million, a charge of $40,000 and a credit of $825,000 was recorded in cost of sales, selling, general, and administrative expenses, and restructuring credit, respectively, in the fiscal 2019 Consolidated Statement of Net Income. The following summarizes the activity in the restructuring accrual: (dollars in thousands) 2019 Accrual established in fiscal 2019 $ 451 Paid in fiscal 2019 (538 ) Adjustments in fiscal 2019 211 $ 124 The above restructuring accrual pertains to employee termination benefits that were associated with the above exit and disposal activity. |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 12 Months Ended |
Apr. 28, 2019 | |
Text Block [Abstract] | |
ASSETS HELD FOR SALE | 12. ASSETS HELD FOR SALE In connection with our exit and disposal activity noted above, property, plant, and equipment with a carrying value totaling $393,000 were classified as held for sale during our second quarter of fiscal 2019. We determined that the fair value of the property, plant, and equipment exceeded their carrying value and therefore, no impairment was recorded. During the second and third quarters of fiscal 2019, we received cash proceeds totaling $1.9 million for all property, plant, and equipment that were classified as held for sale and recorded a corresponding gain on sale totaling $1.5 million. As of April 28, 2019, there were no assets held for sale associated with the exit and disposal activity noted above. |
LINES OF CREDIT AND SUBORDINATE
LINES OF CREDIT AND SUBORDINATED LOAN PAYABLE | 12 Months Ended |
Apr. 28, 2019 | |
Debt Disclosure [Abstract] | |
LINES OF CREDIT AND SUBORDINATED LOAN PAYABLE | 13. LINES OF CREDIT AND SUBORDINATED LOAN PAYABLE Revolving Credit Agreement – United States At April 29, 2018, our Credit Agreement with Wells Fargo Bank, N.A. (“Wells Fargo”) provided for a revolving loan commitment of $30 million. Effective August 13, 2018, we entered into a Fifth Amendment to our Credit Agreement which reduced the amount of our line of credit from $30 million to $25 million, reduced the amount of the Unencumbered Liquid Assets maintenance covenant from $20 million to $15 million, and set the expiration date to August 15, 2020 Interest was charged at a interest rate of 3.93% and 3.36% at April 28, 2019 and April 29, 2018, respectively) as a variable spread over LIBOR Outstanding borrowings are secured by a pledge of 65% of the common stock of Culp International Holdings, Ltd. (our subsidiary located in the Cayman Islands), as required by the Credit Agreement. There were no borrowings outstanding under the Credit Agreement at April 28, 2019 and April 29, 2018, respectively. At April 28, 2019 and April 29, 2018, there were $250,000 in outstanding letters of credit (all of which related to workers compensation) provided by the Credit Agreement. Effective August 1, 2016, we entered into a Third Amendment to our Credit Agreement which allowed us to issue letters of credit not to exceed $7.5 million. On August 3, 2016, we issued a $5.0 million letter of credit, in addition to the $250,000 letter of credit noted above, for the construction of a new building associated with our mattress fabrics segment (see Note 15 for further details). The terms of this $5.0 million letter credit expired on May 15, 2018 Revolving Credit Agreement – China At April 28, 2019, we had an unsecured credit agreement associated with our operations in China that provides for a line of credit up to 40 million RMB ($5.9 million USD at April 28, 2019). This agreement has an interest rate determined by the Chinese government January 31, 2020 Subordinated Loan Payable On February 17, 2019, eLuxury entered into a subordinated credit agreement with the owner of its noncontrolling interest which provides a revolving loan commitment of $ 1.0 June 22, 2023 3.93 Overall Our loan agreements require, among other things, that we maintain compliance with certain financial covenants. As of April 28, 2019, we complied with these financial covenants. Interest paid during fiscal years 2019, 2018, and 2017 were $54,000, $181,000, and $114,000, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Apr. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 14. INCOME TAXES Income Tax Expense and Effective Income Tax Rate Total income tax expense was allocated as follows: (dollars in thousands) 2019 2018 2017 income from operations $ 6,424 5,740 7,339 shareholders’ equity, related to the tax benefit arising from stock based compensation — — (657 ) $ 6,424 5,740 6,682 Income tax expense attributable to income from operations consists of: (dollars in thousands) 2019 2018 2017 current federal $ (1,492 ) (1,367 ) 109 state 27 9 13 2017 Tax Cuts and Jobs Act (282 ) 4,854 — foreign 6,144 4,726 5,981 foreign – reversal of uncertain tax position — — (3,431 ) 4,397 8,222 2,672 deferred federal 3,123 4,295 404 state (96 ) 112 54 2017 Tax Cuts and Jobs Act (1) (268 ) (6,903 ) — undistributed earnings – foreign subsidiaries 3,735 (195 ) (101 ) U.S. operating loss carryforwards 74 — 3,630 foreign (85 ) 93 734 valuation allowance (1) (4,456 ) 116 (54 ) 2,027 (2,482 ) 4,667 $ 6,424 5,740 7,339 (1) The income tax benefit of $ 6,903 4,550 4.5 Income (loss) before income taxes related to our foreign and U.S. operations consists of: (dollars in thousands) 2019 2018 2017 Foreign China $ 9,899 11,036 13,650 Canada 5,488 5,985 4,918 Poland — — (19 ) Cayman Islands 280 339 154 Total Foreign 15,667 17,360 18,703 United States (3,671 ) 9,523 10,993 $ 11,996 26,883 29,696 The following schedule summarizes the principal differences between the income tax expense at the federal income tax rate and the effective income tax rate reflected in the consolidated financial statements: 2019 2018 2017 federal income tax rate 21.0 % 30.4 % 34.0 % undistributed earnings from foreign subsidiaries 37.2 — — valuation allowance (37.1 ) 0.4 (0.2 ) global intangible low taxed income tax (GILTI) 17.9 — — foreign tax rate differential 13.7 3.7 — tax effects of the 2017 Tax Cuts and Jobs Act (4.6 ) (7.6 ) — tax effects of Chinese foreign exchange gains(losses) 2.3 (2.8 ) 1.6 reversal of foreign uncertain income tax position — — (11.6 ) tax effects of stock-based compensation 0.6 (1.8 ) — other 2.6 (0.9 ) 0.9 53.6 % 21.4 % 24.7 % Deferred Income Taxes - Overall The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities consist of the following: (dollars in thousands) 2019 2018 deferred tax assets: accounts receivable $ 282 316 inventories 1,591 2,217 compensation 1,973 3,438 liabilities and other 284 117 foreign income tax credits - U.S. 1,252 5,720 property, plant and equipment (1) 193 226 loss carryforwards – U.S. 2,360 2,513 loss carryforwards – foreign — 76 valuation allowances (748 ) (5,204 ) total deferred tax assets 7,187 9,419 deferred tax liabilities: undistributed earnings on foreign subsidiaries (3,523 ) (4,256 ) unrecognized tax benefits – U.S. (380 ) (380 ) property, plant and equipment (2) (4,710 ) (4,352 ) goodwill (1,203 ) (1,046 ) other (90 ) (77 ) total deferred tax liabilities (9,906 ) (10,111 ) Net deferred liabilities $ (2,719 ) (692 ) (1) Pertains to the company’s operations located in China. (2) Pertains to the company’s operations located in the U.S. and Canada. At April 28, 2019, our U.S. federal net operating loss carryforwards totaled $6.9 million with related future income tax benefits of $1.6 million. U.S. federal net operating loss carryforwards that were generated prior to fiscal 2018 totaled $5.4 million and have expiration dates ranging from fiscal years 2028 through 2038. In accordance with the net operating loss carryforward generated in fiscal 2019 totaling $1.6 million does not expire. At April 28, 2019, our U.S. state net operating loss carryforwards totaled $22.2 million with related future income tax benefits of $ 797 2017 Tax Cuts and Jobs Act On December 22, 2017 (the “Enactment Date”), the Tax Cuts and Jobs Act (H.R.1) (the “Tax Act”) was signed into law. The Tax Act contains significant changes to corporate taxation, including (i) the reduction of the corporate income tax rate to 21%, (ii) the acceleration of expensing certain business assets, (iii) a one-time mandatory repatriation tax (the “Transition Tax”) related to the transition of U.S. international tax from a worldwide tax system to a territorial on the use of foreign tax credits to reduce the U.S. income tax liability, (v) the repeal of the domestic production activities deduction, (vi) additional limitations on the deductibility of interest expense and executive compensation, and (vii) the creation of the Global Intangible Low Taxed Income (“GILTI”) tax. The corporate income tax rate reduction was effective as of January 1, 2018. Since we have a fiscal year rather than a calendar year, we were subject to IRS rules relating to transitional income tax rates for fiscal 2018. As a result, our fiscal 2018 U.S. federal income tax rate was a blended income tax rate of 30.4% compared with a fully reduced U.S. federal income tax rate of 21.0% during fiscal 2019. The re-measurement of our U.S. deferred income tax balances to the new U.S. federal corporate income tax rate and the determination of the income tax effects of the Transition Tax on our accumulated earnings and profits associated with our foreign subsidiaries were components of the Tax Act that significantly affected our financial statements during fiscal 2019 and 2018. As of April 29, 2018, we had not yet completed our assessment of the effects of the Tax Act, however, we were able to determine reasonable estimates for the effects of the components specified above, and thus we reported provisional amounts for these items under guidance provided by SEC Staff Accounting Bulletin No. 118 (“SAB 118”). As a result, our estimates changed and revisions to these estimates were recorded during the measurement period allowed by SAB 118, which was not to extend beyond one year from the Enactment Date. The provisional estimates related to our U.S. deferred income tax balances and Transition Tax changed due to a variety of factors that included, (i) actual versus estimates of accumulated earnings and profits associated with our foreign subsidiaries, (ii) utilization of our foreign income tax credits, (iii) the election of whether or not to apply our existing U.S. federal net operating loss carryforwards against the Transition Tax, (iv) actual versus estimates regarding the reversal of U.S. deferred income taxes occurring in fiscal 2018 based on our blended U.S. federal income tax rate of 30.4% of 21.0% In order to determine the effects of the new U.S. federal corporate income tax rate on our U.S. deferred income tax balances during fiscal 2019 and 2018, ASC Topic 740 “Income Taxes” (ASC Topic 740), requires the re-measurement of our U.S. deferred income tax balances as of the Enactment Date of the Tax Act, based on income tax rates at which our U.S. deferred income tax balances are expected to reverse in the future. As a result, we recorded a provisional income tax charge of $2.2 million for the re-measurement of our U.S. net deferred income taxes during fiscal 2018. During the third quarter of fiscal 2019, we completed our assessment of the remeasurement of our U.S. deferred income tax balances in accordance with SAB 118 and recorded a final provisional income tax benefit of $ 268 The Transition Tax was based on our total post-1986 foreign earnings and profits (“E&P”) that were previously deferred from U.S. income tax and applicable income tax rates associated with E&P held in cash and other specified assets (the “aggregate foreign cash position”). Also, E&P was not permanently reinvested prior to the Tax Act. As a result, we recorded a provisional income tax benefit of $4.3 million for the income tax effects of the Transition Tax during fiscal 2018. This $4.3 million income tax benefit related to an income tax benefit of $18.0 million for the release of deferred income tax liabilities related to E&P, an income tax benefit of $11.7 million related to the reduction in our U.S. Federal income tax rate pursuant to the Tax Act on the effective settlement of an IRS exam related to E&P, partially offset by an income tax charge for the write-off and the establishment of a valuation allowance against our unused foreign tax credits totaling $25.4 million. During the third quarter of fiscal 2019, we completed our assessment of the income tax effects of the Transition Tax and recorded a final provisional income tax benefit of $ 282 GILTI In addition to the above components of the Tax Act, GILTI was effective during fiscal 2019. Our policy to account for GILTI is to expense this tax in the period incurred. As a result, we recorded an income tax charge of $2.1 million during fiscal 2019. On June 14, 2019, the U.S. Treasury released proposed regulations regarding the GILTI provisions of the U.S. income tax code. The proposed regulations contain a provision for an exclusion from treatment as GILTI if taxable income amounts are subject to a high rate of foreign income tax, as defined in the proposed regulations. If an entity were to qualify for the high-income tax exception, the high-taxed income earned that would be subject to GILTI and U.S. income tax, may be excluded from U.S. income tax. However, since these regulations are in proposed form, an entity is not allowed to record an income tax benefit under these provisions until these regulations have been finalized. Deferred Income Taxes – Valuation Allowance Summary 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 assessments at April 28, 2019 and April 29, 2018, valuation allowances against our deferred income taxes pertain to the following jurisdictions: (dollars in thousands) April 28, 2019 April 29, 2018 U.S. foreign income tax credits $ 82 4,550 U.S. state loss carryforwards and credits 666 578 Polish loss carryforwards — 76 $ 748 5,204 A summary of the change in the valuation allowances against our deferred income taxes follows: (dollars in thousands) 2019 2018 2017 beginning balance $ 5,204 536 590 write off of deferred income taxes (4,544 ) — — establishment of valuation allowance (1) — 4,550 — change in estimate (2) 88 118 (54 ) ending balance $ 748 5,204 536 (1) The establishment of this valuation allowance pertains to U.S. foreign tax credits that were not more-likely-than not to be realized as a result of the Tax Act. (2) Amounts pertain to a change in estimate of the recoverability of certain deferred income tax assets as of the end of the respective prior fiscal year. Deferred Income Taxes – Undistributed Earnings from Foreign Subsidiaries 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. During fiscal 2018, the Tax Act imposed a Transition Tax on our undistributed E&P associated with our foreign subsidiaries. The Tax Act required us to determine E&P as of November 2, 2017 and December 31, 2017 (the “Measurement Dates”), in which the greater E&P amount of the Measurement Dates is subject to the Transition Tax. As a result, we had E&P prior to participation exemption totaling $157.1 million subject to the Transition Tax and $43.2 million of foreign tax credits that could be used to reduce the Transition Tax subject to certain limitations as defined in the Tax Act. For fiscal 2019 and beyond, the Tax Act allows a U.S. corporation a 100% dividend received deduction for E&P received from a 10% owned foreign corporation. Therefore, a deferred tax liability will only be required for withholding taxes that are incurred by our foreign subsidiaries at the time E&P is distributed. As a result, we recorded a deferred tax liability for withholding taxes on undistributed E&P from our foreign subsidiaries totaling $3.5 million and $4.3 million at April 28, 2019 and April 29, 2018, respectively. Uncertainty in Income Taxes Overall In accordance with ASC Topic 740, an unrecognized income tax benefit for an uncertain income tax position can be recognized in the first interim period if the more-likely-than-not recognition threshold is met by the reporting period, or is effectively settled through examination, negotiation, or litigation, or the statute of limitations for the relevant taxing authority to examine and challenge the tax position has expired. If it is determined that any of the above conditions occur regarding our uncertain income tax positions, an adjustment to our unrecognized income tax benefit will be recorded at that time. The following table sets forth the change in the company’s unrecognized income tax benefit: (dollars in thousands) 2019 2018 2017 beginning balance $ 844 12,245 14,897 increases from prior period tax positions 135 350 854 decreases from prior period tax positions (1) (76 ) (11,751 ) (3,506 ) increases from current period tax positions — — — ending balance $ 903 844 12,245 (1) The $ 11.8 3.5 At April 28, 2019, we had $903,000 of total gross unrecognized tax benefits, of which $523,000 would favorably affect the income tax rate in future periods. At April 29, 2018, we had $844,000 of total gross unrecognized tax benefits, of which $464,000 would favorably affect the income tax rate in future periods. At April 28, 2019, we had $903,000 of total gross unrecognized tax benefits, of which $380,000 and $523,000 were classified as net non-current deferred income taxes and income taxes payable-long-term, respectively, in the accompanying Consolidated Balance Sheets. At April 29, 2018 we had $844,000 of total gross unrecognized tax benefits, of which $380,000 and $464,000 were classified as net non-current deferred income taxes and income taxes payable- long-term, respectively, in the accompanying Consolidated Balance Sheets. We elected to classify interest and penalties as part of income tax expense. At April 28, 2019 and April 29, 2018, the gross amount of interest and penalties due to unrecognized tax benefits was $97,000 and $40,000, respectively. Our gross unrecognized income tax benefit of $903,000 at April 28, 2019, relates to income tax positions for which significant change is currently not expected within the next year. This amount primarily relates to double taxation under applicable income tax treaties with foreign tax jurisdictions. United States federal income tax returns filed by us remain subject to examination for income tax years 2017 and subsequent. Canadian federal income tax returns filed by us remain subject to examination for income tax years 2015 and subsequent. Canadian provincial (Quebec) income tax returns filed by us remain subject to examination for income tax years 2016 and subsequent. Income tax returns associated with our operations located in China are subject to examination for income tax year 2014 and subsequent. Income Tax Exams Currently, we are not under examination for any open income tax years in any of our income tax paying jurisdictions located in the United States, China, and Canada. During the third quarter of fiscal 2017, Revenue Quebec commenced an examination of our Canadian provincial (Quebec) income tax returns for fiscal years 2013 through 2015. This examination was completed during the fourth quarter of fiscal 2018 with final adjustments totaling $4,000. During the fourth quarter of fiscal 2016, the Internal Revenue Service commenced and examination of our U.S. Federal income tax returns for fiscal years 2014 through 2016. This examination was effectively settled during the fourth quarter of fiscal 2018 with no Income Taxes Paid Income tax payments, net of income tax refunds, were $6.7 million, $4.0 million, and $5.5 million during fiscal years 2019, 2018, and 2017, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Apr. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 15. COMMITMENTS AND CONTINGENCIES Operating Leases- Overall We lease certain office, manufacturing and warehouse facilities and equipment under noncancellable operating leases. Lease terms related to real estate primarily range from one to six years with renewal options for additional periods ranging up to ten years. The leases generally require the company to pay real estate taxes, maintenance, insurance and other expenses. Rental expense for operating leases was $3.7 million in fiscal 2019, $3.0 million in fiscal 2018, and $2.9 million in fiscal 2017. Future minimum rental commitments for noncancellable operating leases are $3.0 million in fiscal 2020; $2.1 million in fiscal 2021; $1.2 million in fiscal 2022; $723,000 in fiscal 2023; $678,000 in fiscal 2024; and $346,000 thereafter. Management expects that in the normal course of business, these leases will be renewed or replaced by other operating leases. Operating Leases- Related Parties In connection with an asset purchase agreement with Read (see note 2) on April 1, 2018, we assumed the lease of the building where the operation is located. This lease is with an executive of Read. The lease agreement requires monthly payments of $18,000 per month for a term of 3 years, expiring on March 31, 2021 Additionally, we lease a plant facility associated with our mattress fabrics segment from a partnership owned by certain shareholders and officers of the company and their immediate families. Currently, this facility is being leased on a month to month basis at an amount of $13,100 per month. Rents paid to entities owned by certain shareholders and officers of the company and their immediate families totaled $158,000 in fiscal 2019 and $156,000 in fiscal 2018 and 2017, respectively. Other 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. Accounts Payable – Capital Expenditures At April 28, 2019, we had total amounts due regarding capital expenditures totaling $78,000, which pertained to outstanding vendor invoices, none of which were financed. At April 29, 2018, we had total amounts due regarding capital expenditures totaling $1.8 million, of which $1.4 million was financed and pertained to completed work for the construction of a new building (see below). The total $1.8 million amount was paid in full in fiscal 2019. Purchase Commitments - Capital Expenditures At April 28, 2019, we had open purchase commitments to acquire equipment for our mattress fabrics segment totaling $1.4 million. Mattress Fabrics Building Effective May 16, 2016, we entered into an agreement with a contractor to construct a new building located in North Carolina to expand our distribution capabilities and office space at a cost of $11.3 million. This agreement required an installment payment of $1.9 million that was made in April 2016, with additional installment payments of $4.3 million that were made in fiscal 2017, $3.7 million that were made in fiscal 2018, and a final installment payment of $1.4 million made in May 2018 (first quarter of fiscal 2019). Interest was charged on the required outstanding installment payments for services that were previously rendered at a rate of $2.25% plus the current 30-day LIBOR rate Also, we were required to issue a letter of a credit totaling $5.0 million with the contractor being the beneficiary. In addition to the interest that was charged on the outstanding installment payments noted above, there was a 0.1% unused fee calculated on the balance of the $5.0 million letter of credit less the amount outstanding per month (see note 13 for further details). This new building was placed into service July 2017 (our first quarter of fiscal 2018). |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Apr. 28, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | 16. STOCK-BASED COMPENSATION Equity Incentive Plan Description On September 16, 2015, our shareholders approved an equity incentive plan titled the Culp, Inc. 2015 Equity Incentive Plan (the “2015 Plan”). The 2015 Plan updated and replaced our 2007 Equity Incentive Plan (the “2007 Plan”) as the vehicle for granting new equity-based awards substantially similar to those authorized under the 2007 Plan. In general, the 2015 Plan authorizes the grant of stock options intended to qualify as incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, and other equity and cash related awards as determined by our Compensation Committee. An aggregate of 1,200,000 shares of common stock were authorized for issuance under the 2015 Plan, with certain sub-limits that would apply with respect to specific types of awards that may be issued as defined in the 2015 Plan. In connection with the approval of the 2015 Plan, no further awards will be granted under the 2007 Plan, but outstanding awards under the 2007 Plan will be settled in accordance with their terms. At April 28, 2019, there were 995,094 shares available for future equity-based grants under the company’s 2015 Plan. Stock Options Under our 2007 Plan, employees, outside directors, and others associated with the company were granted options to purchase shares of common stock at the fair market value on the date of grant. The following tables summarize stock option activity during fiscal 2019, 2018, and 2017: 2019 2018 2017 Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price outstanding at beginning of year — $ — 15,600 $ 7.14 83,600 $ 8.37 granted — — — — — — exercised — — (15,600 ) 7.14 (68,000 ) 8.65 canceled/expired — — — — — — outstanding at end of year — — — — 15,600 7.14 At April 28, 2019, there were no no No The aggregate intrinsic value for options exercised was $393,000 and $1.7 million during fiscal 2018 and 2017, respectively. Time-Based Restricted Stock Awards The following table summarizes the time-based restricted stock activity during fiscal years 2019, 2018, and 2017: 2019 Shares 2018 Shares 2017 Shares outstanding at beginning of year 1,200 1,200 — granted 10,000 1,200 1,200 vested (1,200 ) (1,200 ) — outstanding at end of year 10,000 1,200 1,200 The following table summarizes information related to our grants of time-based restricted stock awards associated with certain key members of management during fiscal years 2019, 2018 and 2017: Date of Grant Restricted Stock (1) Vesting August 2, 2018 10,000 $ 24.35 59 months July 13, 2017 1,200 $ 32.50 11 months June 14, 2016 1,200 $ 28.00 11 months (1) Price per share represents closing price of our common stock on the date the respective award was granted. The following table summarizes information related to our time-based restricted stock units that vested during the fiscal 2019, 2018, and 2017: Fiscal Year Common Stock Shares Vested (1) Weighted Average Fair Value (2) Price Per Share Fiscal 2019 1,200 $ 21 $ 17.36 Fiscal 2018 1,200 $ 37 $ 30.90 Fiscal 2017 — — — (1) Dollar amounts are in thousands. (2) Price per share represents closing price of our common stock on the Overall We recorded compensation expense of $43,000, $38,000 and $29,000 within selling, general, and administrative expense for time vested restricted stock units in fiscal 2019, 2018 and 2017, respectively. At April 28, 2019, the remaining unrecognized compensation cost related to our time vested restricted stock units were $206,000, which is expected to be recognized over a weighted average vesting period of 4.1 years. At April 28, 2019, our time vested restricted stock awards that were expected to vest had a fair value totaling $207,000. Performance Based Restricted Stock Units We have granted performance based restricted stock units to executives and other key members of management and a non-employee which could earn up to a certain number of shares of common stock if certain performance targets are met as defined in the related restricted stock unit agreements. Our performance based restricted stock units granted to executives and key members of management were measured based on the fair market value on the date of grant. Our performance based restricted stock units granted to a non-employee were measured based on the fair market value at the earlier date of when the performance criteria are met or the end of the reporting period. Executive Management (NEOs) On August 2, 2018 (fiscal 2019) and July 13, 2017 (fiscal 2018), we granted performance-based restricted stock units to NEOs which could earn up to a certain number of shares of common stock if certain performance targets are met over a three-fiscal year performance period as defined in the related restricted stock unit agreements. The number of shares of common stock that are earned based on the performance targets that have been achieved will be adjusted based on a market-based total shareholder return component as defined in the related restricted stock unit agreements. Compensation cost is measured based on the fair market value on the date of grant (August 2, 2018 and July 13, 2017). The fair market value per share was determined using the Monte Carlo simulation model for the market-based total shareholder return component and the closing price of our common stock for the performance-based components. The following table provides assumptions used to determine the fair market value of the market-based total shareholder return component using the Monte Carlo simulation model on the grant dates of August 2, 2018 and July 13, 2017: August 2, 2018 July 13, 2017 Closing price of our common stock $ 24.35 $ 32.50 Expected volatility of our common stock 33.5 % 31.0 % Expected volatility of peer companies 16.0 % 16.5 % Risk-free interest rate 2.74 % 1.56 % Dividend yield 1.35 % 1.66 % Correlation coefficient of peer companies 0.47 0.46 Fiscal 2017 On July 14, 2016, we granted performance-based restricted stock units to NEOs which could earn up to a certain number of shares of common stock if certain performance targets were met over a three-fiscal year performance period as defined in the related restricted stock unit agreements. These awards were measured based on the fair market value (closing price of our common stock) on the date of grant. No market-based total shareholder return component was included in these awards. Key Employees (non-NEOs) and a Non-Employee Fiscal 2019, 2018, and 2017 We granted performance-based restricted stock units which could earn up to a certain number of shares of common stock if certain performance targets are met over a three-fiscal year performance period as defined in the related restricted stock unit agreements. Our performance based restricted stock units granted to key employees (other than NEOs) were measured based on the fair market value (the closing price of our common stock) on the date of grant. Our performance based restricted stock units granted to a non-employee (fiscal 2017 only) were measured based on the fair market value (the closing price of our common stock) at the earlier date of when the performance criteria are met or the end of the reporting period. No market-based total shareholder return component was included in these awards. Overall The following table summarizes information related to our grants of performance based restricted stock units associated with NEOs and key employees that were unvested at April 28, 2019: Date of Grant (3) Restricted Stock Units Awarded Price Per Share Vesting Period August 2, 2018 (1) 86,599 $ 18.51 (4) 3 years August 2, 2018 (2) 47,800 $ 24.35 (6) 3 years July 13, 2017 (1) 78,195 $ 31.85 (5) 3 years July 13, 2017 (2) 44,000 $ 32.50 (6) 3 years July 14, 2016 (1) (2) 107,880 $ 28.00 (6) 3 years (1) Performance-based restricted stock units awarded to NEOs. (2) Performance-based restricted stock units awarded to key employees. (3) Amounts represent the maximum number of common stock shares that could be earned if certain performance targets are met as defined in the related restricted stock unit agreements. (4) Price per share represents the fair market value per share ($0.76 per $1 or a reduction of $5.84 to the closing price of the our common stock) determined using the Monte Carlo simulation model for the market-based total shareholder return component and the closing price of our common stock ($ 24.35 (5) Price per share represents the fair market value per share ($0.98 per $1 or a reduction of $0.65 to the closing price of the our common stock) determined using the Monte Carlo simulation model for the market-based total shareholder return component and the closing price of our common stock ($ 32.50 (6) Price per share represents the closing price of our common stock on the date of grant. The following table summarizes information related to our grants of performance-based restricted stock units associated with a non-employee that were unvested at April 28, 2019: Date of Grant (1) Restricted Stock Units Awarded Price Per Share Vesting Period July 14, 2016 11,549 $ 20.74 (2) 3 years (1) Amounts represent the maximum number of common stock shares that could be earned if certain performance targets are met as defined in the related restricted stock unit agreement. (2) The respective grant was unvested at the end of our reporting period. Accordingly, the price per share represents the closing price of our common stock on April 28, 2019, the end of our reporting period. The following table summarizes information related to our performance based restricted stock units that vested during the fiscal 2019, 2018, and 2017: Fiscal Year Common Stock Shares Vested (3) Weighted Average Fair Value Weighted Average Price Per Share Fiscal 2019 (1) 128,632 $ 3,754 $ 29.19 (4) Fiscal 2019 (2) 10,364 $ 320 $ 30.90 (4) Fiscal 2018 (1) 102,845 $ 3,342 $ 32.50 (4) Fiscal 2018 (2) 16,000 $ 520 $ 32.50 (4) Fiscal 2017 (1) 37,192 $ 1,066 $ 28.66 (4) Fiscal 2017 (2) 12,000 $ 344 $ 28.66 (4) (1) NEOs and key employees. (2) Non-employee (3) Dollar amounts are in thousands. (4) The weighted average price per share is derived from the closing prices of our common stock on the dates the respective performance based restricted stock units vested. Overall We recorded a (credit) or a charge to compensation expense totaling $ (53,000 At April 28, 2019, the remaining unrecognized compensation cost related to the performance based restricted stock units was $328,000, which is expected to be recognized over a weighted average vesting period of 1.9 years. At April 28, 2019, our performance based restricted stock units that are expected to vest had a fair value totaling $712,000. Common Stock Awards The following table summarizes information related to our grants of common stock to our outside directors during fiscal 2019, 2018, and 2017: Date of Grant Common Stock Awarded (1) Price Per Share Vesting Period April 1, 2019 2,948 $ 19.18 Immediate October 1, 2018 3,600 $ 23.45 Immediate October 2, 2017 4,800 $ 33.20 Immediate October 3, 2016 4,800 $ 29.80 Immediate (1) Price per share represents closing price of our common stock on the date of grant. We recorded $140,000, $159,000, and $143,000, of compensation expense within selling, general, and administrative expense for these common stock awards for fiscal 2019, 2018, and 2017, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Apr. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 17. 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 April 28, 2019 using: Quoted prices in Significant other Significant (amounts in thousands) Level 1 Level 2 Level 3 Total Assets: Premier Money Market Fund $ 6,639 N/A N/A $ 6,639 Growth Allocation Fund 203 N/A N/A 203 Moderate Allocation Fund 127 N/A N/A 127 Other 112 N/A N/A 112 Liabilities: None N/A N/A N/A N/A Fair value measurements at April 29, 2018 using: Quoted prices in active markets assets Significant other Significant unobservable inputs (amounts in thousands) Level 1 Level 2 Level 3 Total Assets: Premier Money Market Fund $ 6,492 N/A N/A $ 6,492 Low Duration Bond Fund 1,085 N/A N/A 1,085 Intermediate Term Bond Fund 747 N/A N/A 747 Strategic Income Fund 619 N/A N/A 619 Large Blend Fund 402 N/A N/A 402 Growth Allocation Fund 169 N/A N/A 169 Moderate Allocation Fund 113 N/A N/A 113 Other 150 N/A N/A 150 Liabilities: EURO Foreign Exchange Contract N/A $ 55 N/A $ 55 Our EURO foreign exchange contract was recorded at a fair value provided by our bank and was classified within level 2 of the fair value hierarchy. Most derivative contracts are not listed on an exchange and require the use of valuation models. In accordance with ASC Topic 820, we attempted to maximize the use of observable inputs used in the valuation models to determine the fair value of this contract. Derivative contracts valued based on valuation models with significant unobservable inputs and that are not actively traded, are classified within level 3 of the fair value hierarchy. 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. Nonrecurring Basis At April 28, 2019, we had no assets that were required to be measured at fair value on a nonrecurring basis other than the assets acquired from eLuxury (see note 2) that were acquired at fair value: Fair value measurements at April 28, 2019 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: Goodwill N/A N/A $ 13,653 $ 13,653 Tradename N/A N/A 6,549 6,549 Equipment N/A N/A 2,179 2,179 Inventory N/A N/A 1,804 1,804 Liabilities: Contingent Consideration – Earn-Out Obligation N/A N/A $ 5,856 $ 5,856 The tradename was recorded at fair market value using the royalty from relief method that used significant unobservable inputs and were classified as level 3. The contingent consideration – earn-out obligation was recorded at fair market value using Black Sholes pricing model. Additionally, we acquired certain current assets such as accounts receivable and prepaid expenses and assumed certain liabilities such as accounts payable and accrued expenses. Based on the nature of these items and their short maturity, the carrying amount of these items approximated their fair values. See note 2 for the final allocation of the a cquisition cost to the assets acquired and liabilities assumed based on their fair values. At April 29, 2018, we had no assets that were required to be measured at fair value on a nonrecurring basis other than the assets acquired from Read (see note 2) that were acquired at fair value: Fair value measurements at April 29, 2018 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: Customer Relationships N/A N/A $ 2,247 $ 2,247 Goodwill N/A N/A 2,107 2,107 Inventory N/A N/A 1,128 1,128 Tradename N/A N/A 683 683 Equipment N/A N/A 379 379 Liabilities: None N/A N/A N/A N/A These customer relationships were recorded at fair market value using a multi-period excess earnings valuation model that used significant unobservable inputs and were classified as level 3. The tradename was recorded at fair market value using the royalty from relief method that used significant unobservable inputs and were classified as level 3. Additionally, we acquired certain current assets such as accounts receivable and other assets and assumed certain liabilities such as deferred revenue, accounts payable and accrued expenses. Based on the nature of these items and their short maturity, the carrying amount of these items approximated their fair values. See note 2 for the allocation of the acquisition cost to the assets acquired and liabilities assumed based on their fair values. |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Apr. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | 18. DERIVATIVES During the fourth quarter of fiscal 2018, we entered into a EURO foreign exchange contract to mitigate the risk of foreign exchange rate fluctuations associated with certain capital expenditures. The contract effectively converts our EURO capital expenditures at a fixed EURO foreign exchange rate compared with the United States dollar of 1.263. This contract expired in August 2018. In accordance with the provisions of ASC Topic 815, Derivatives and Hedging, our EURO foreign exchange contract was designated as a cash flow hedge, with the fair value of these financial instruments recorded in accrued expenses and changes in fair value recorded in accumulated other comprehensive income (loss). ASC Topic 815 requires disclosure of gains and losses on derivative instruments in the following tabular format. (Amounts in Thousands) Fair Values of Derivative Instruments April 28, 2019 April 29, 2018 Derivatives designated as hedging instruments under ASC Topic 815 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Euro Foreign Exchange Contract N/A $ — Accrued Expense $ 55 Derivatives in ASC Topic 815 Net Investment Hedging Relationships Amt of Gain (Loss) (net of tax) Recognized in OCI on Derivative (Effective Portion) and recorded in Accrued Expenses at Fair Value Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain (loss) (net of tax) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) 2019 2018 2017 2019 2018 2017 2019 2018 2017 EURO Foreign Exchange Contract $ 55 $ (55 ) $ — Other Exp $ (64 ) $ — $ — $ — $ — $ — |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Apr. 28, 2019 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | 19. 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 are as follows: (in thousands) 2019 2018 2017 weighted-average common shares outstanding, basic 12,462 12,431 12,312 dilutive effect of stock-based compensation 86 202 206 weighted-average common shares outstanding, diluted 12,548 12,633 12,518 At April 28, 2019 and April 29, 2018, there were no options to purchase shares of our , options to purchase shares of our common stock were not included in the computation of diluted net income for fiscal 2019. All options to purchase shares of common stock were included in the computation of diluted net income for fiscal years 2018 and 2017, as the exercise price of the options was less than the average market price of common shares. |
BENEFIT PLANS
BENEFIT PLANS | 12 Months Ended |
Apr. 28, 2019 | |
Postemployment Benefits [Abstract] | |
BENEFIT PLANS | 20. BENEFIT PLANS Defined Contribution Plans The company has defined contribution plans which cover substantially all employees and provide for participant contributions on a pre-tax basis and matching contributions by the company for its U.S. and Canadian operations. Our contributions to the plan were $1.2 million, $1.1 million, and $924,000 during fiscal years 2019, 2018, and 2017, respectively. Deferred Compensation Plan We have a nonqualified deferred compensation plan (the “Plan”) covering officers and certain key members of management. The Plan provides for participant deferrals on a pre-tax basis that are subject to annual deferral limits by the IRS and non-elective contributions made by the company. Participant deferrals and non-elective contributions made by the company are immediately vested. Our contributions to the Plan were $189,000, $192,000 and $185,000 in fiscal years 2019, 2018, and 2017, respectively. Our nonqualified deferred compensation plan liability was $7.0 million and $7.4 million at April 28, 2019 and April 29, 2018, respectively. We have a Rabbi Trust (the “Trust”) to set aside funds for the participants of the Plan and enable the participants to direct their contributions to various investment options in the Plan. The investment options of the Plan consist of a money market fund and various mutual funds. The funds set aside in the Trust are subject to the claims of our general creditors in the event of the company’s insolvency as defined in the Plan. The investment assets of the Trust are recorded at their fair value of $7.1 million and $7.3 million at April 28, 2019 and April 29, 2018, respectively. The investment assets of the Trust are classified as available for sale and accordingly, changes in their fair values are recorded in other comprehensive income (loss). |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Apr. 28, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 21. SEGMENT INFORMATION Overall Our operations are classified into three Effective April 1, 2018, we acquired Read (see Note 2 for further details), a turn-key provider of window treatments that offers the sourcing of upholstery fabrics and other products, measuring, and installation services of their own products for the hospitality and commercial industries. Read’s financial information is aggregated with our upholstery fabrics segment. Effective June 22, 2018, we acquired an 80% ownership interest in eLuxury (see Note 2 for further details), a company that offers bedding accessories and home goods directly to consumers and businesses through its e-commerce platform. eLuxury’s financial information is included in our home accessories segment. Net Sales Geographic Concentration Net sales denominated in U.S. dollars accounted for 90%, 90% and 92% of total consolidated net sales in fiscal 2019, 2018, and 2017, respectively. International sales accounted for 24%, 23%, and 22% of net sales during fiscal 2019, 2018, and 2017, respectively, and are summarized by geographic area as follows: (dollars in thousands) 2019 2018 2017 north america (excluding USA) (1) $ 29,247 27,844 29,995 far east and asia (2) 39,277 40,671 34,695 all other areas 3,712 5,681 3,618 $ 72,236 74,196 68,308 (1) Of this amount, $22.5 million, $21.9 million, and $22.3 million are attributable to shipments to Mexico in fiscal 2019, 2018, and 2017, respectively. (2) Of this amount $29.8 million, $32.6 million, and $26.6 million are attributable to shipments to China in fiscal 2019, 2018, and 2017, respectively. Sales are attributed to individual countries based upon location that the company ships its products to for delivery to customers. Customer Concentration One One No customers within the mattress fabrics segment represented greater than 10% of consolidated net sales during fiscal 2019. One No customers within the home accessories segment represented greater than 10% of consolidated net sales during fiscal 2019. No customers within the home accessories segment accounted for greater than 10% of the consolidated net accounts receivable balance as of April 28, 2019. Employee Workforce Concentration The hourly employees at our manufacturing facility in Canada (approximately 11 Financial Information We evaluate the operating performance of our segments based upon income from operations before certain unallocated corporate expenses, restructuring expense (credit) and related charges, and other non-recurring items. Cost of sales in all of our segments include costs to manufacture, develop, 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 with being a public company, and other miscellaneous expenses. Segment assets include assets used in 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 their investment in an unconsolidated joint venture. During fiscal 2019, we elected to no longer include goodwill and intangible assets in segment assets, as these assets are not used by the Chief Operating Decision Maker to evaluate the respective segment’s operating performance, to allocate resources to the individual segments, or determine executive compensation. Statements of operations for the company’s operating segments are as follows: (dollars in thousands) 2019 2018 2017 net sales: upholstery fabrics $ 135,654 131,128 118,739 mattress fabrics 145,059 192,597 190,805 home accessories 15,956 — — $ 296,669 323,725 309,544 gross profit: upholstery fabrics $ 25,374 25,836 26,170 mattress fabrics 22,904 38,797 43,065 home accessories 4,428 — — total segment gross profit 52,706 64,633 69,235 other non-recurring charges (1) (159 ) — — restructuring related charges (2) (2,349 ) — — total gross profit $ 50,198 64,633 69,235 selling, general, and administrative expenses: upholstery fabrics $ 14,551 14,881 15,079 mattress fabrics 11,296 12,935 13,685 home accessories 5,163 — — unallocated corporate 6,837 9,356 10,393 total segment selling, general, and administrative expenses 37,847 37,172 39,157 other non-recurring charges (3) 518 — — restructuring related charges (4) 40 — — total selling, general, and administrative expenses $ 38,405 37,172 39,157 Income (loss) from operations: upholstery fabrics $ 10,823 10,956 11,091 mattress fabrics 11,608 25,861 29,380 home accessories (735 ) — — unallocated corporate expenses (6,837 ) (9,356 ) (10,393 ) total segment income from operations 14,859 27,461 30,078 other non-recurring charges (1) (3) (678 ) — — restructuring credit and related charges (5) (6) (1,563 ) — — total income from operations 12,618 27,461 30,078 interest expense (42 ) (94 ) — interest income 766 534 299 other expense (1,346 ) (1,018 ) (681 ) income before income taxes $ 11,996 26,883 29,696 (1) The $159 represents employee termination benefits and other operational reorganization costs associated with our mattress fabrics segment. (2) The $2.3 million represents a restructuring related charge of $1.6 million for inventory markdowns and $784 for other operating costs associated with our closed Anderson, SC upholstery fabrics plant facility. (3) The $518 represents a non-recurring charge of $429 for the accelerated vesting of certain stock-based compensation agreements associated with a key executive and was recorded in unallocated corporate expenses. Additionally, the $518 includes $89 for employee termination benefits and operational reorganizational costs associated with our mattress fabrics segment. (4) The $40 represents a restructuring related charge for the accelerated vesting for certain stock-based compensation agreements associated with an employee that was located at our closed Anderson, SC upholstery fabrics plant facility. (5) The $1.6 million represent charges and credits that were associated our closed Anderson, SC upholstery fabrics plant facility and include $1.6 million for inventory markdowns, $784 for other operating costs, $661 for employee termination benefits, and $40 for the accelerated vesting of certain stock-based compensation agreements associated an employee, partially offset by a $1.5 million gain on the sale of property, plant, and equipment. (6) Of this total net charge, a charge of $2.3 million, a charge of $40, and a credit of $825 were recorded in cost of sales, selling, general, and administrative expenses, and restructuring credit, respectively, in the fiscal 2019 Consolidated Statement of Net Income. Balance sheet information for the company’s operating segments follow: (dollars in thousands) April 28 2019 April 29, 2018 segment assets mattress fabrics accounts receivable $ 12,098 15,195 inventory 24,649 28,740 property, plant, and equipment 44,266 (1) 48,797 (2) investment in unconsolidated joint venture 1,508 1,501 total mattress fabrics assets 82,521 94,233 upholstery fabrics accounts receivable 11,274 11,112 inventory 22,915 24,714 property, plant, and equipment 1,795 (3) 2,445 (4) total upholstery fabrics assets 35,984 38,271 home accessories accounts receivable 379 — inventory 3,296 — property, plant, and equipment 1,910 (5) — total home accessories assets 5,585 — total segment assets 124,090 132,504 non-segment assets cash and cash equivalents 40,008 21,228 short-term investments – available for sale — 2,451 short-term investments – held-to-maturity 5,001 25,759 current income taxes receivable 776 — deferred income taxes 457 1,458 other current assets 2,849 2,870 property, plant, and equipment (6) 418 552 goodwill 27,222 13,569 intangible assets 10,448 4,275 long-term investments - held-to-maturity — 5,035 long-term investments - rabbi trust 7,081 7,326 noncurrent income taxes receivable 733 other assets 643 957 total assets $ 219,726 217,984 (dollars in thousands) 2019 2018 2017 capital expenditures (7): mattress fabrics $ 2,526 6,713 17,689 upholstery fabrics 382 488 822 home accessories 53 — — unallocated corporate 14 238 260 $ 2,975 7,439 18,771 depreciation expense mattress fabrics $ 7,008 6,850 6,245 upholstery fabrics 787 822 840 home accessories 322 — — total segment depreciation expense $ 8,117 7,672 7,085 (1) The $44.3 million at April 28, 2019, represents property, plant, and equipment located in the U.S. of $32.4 million and located in Canada of $11.9 million. (2) The $48.8 million at April 29, 2018, represents property, plant, and equipment located in the U.S. of $35.4 million and located in Canada of $13.4 million. (3) The $1.8 million at April 28, 2019, represents property, plant, and equipment located in the U.S. of $1.2 million and located in China of $591. (4) The $2.4 million at April 29, 2018, represents property, plant, and equipment located in the U.S. of $1.8 million and located in China of $661. (5) The $1.9 million at April 28, 2019, represents property, plant, and equipment located in the U.S. (6) The $418 and $552 at April 28, 2019, and April 29, 2018, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress fabrics, upholstery fabrics, and home accessories segments located in the U.S. (7) Capital expenditure amounts are stated on an accrual basis. See the Consolidated Statement of Cash Flows for capital expenditure amounts on a cash basis. |
STATUTORY RESERVES
STATUTORY RESERVES | 12 Months Ended |
Apr. 28, 2019 | |
Text Block [Abstract] | |
STATUTORY RESERVES | 22. STATUTORY RESERVES The company’s 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 April 28, 2019, the company’s statutory surplus reserve was $4.3 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. The company’s subsidiaries located in China can transfer funds to the parent company with the exception of the statutory surplus reserve of $4.3 million to assist with debt repayment, capital expenditures, and other expenses of the company’s business. |
COMMON STOCK REPURCHASE PROGRAM
COMMON STOCK REPURCHASE PROGRAM | 12 Months Ended |
Apr. 28, 2019 | |
Text Block [Abstract] | |
COMMON STOCK REPURCHASE PROGRAM | 23. COMMON STOCK REPURCHASE PROGRAM On June 15, 2016, we announced that our board of directors approved an authorization for us to acquire up to $5.0 million of our common stock. Under the common stock repurchase program, shares may be purchased from time to time in open market transactions, block trades, through plans established under the Securities Exchange Act Rule 10b5-1, or otherwise. The amount of shares purchased and the timing of such purchases will be based on working capital requirements, market and general business conditions, and other factors including alternative investment opportunities. During fiscal 2019, we purchased 160,823 shares of our common stock at a cost of $3.3 million. During fiscal 2018 and 2017, we did no At April 28, 2019, we had $1.7 million available for additional repurchases of our common stock. |
DIVIDEND PROGRAM
DIVIDEND PROGRAM | 12 Months Ended |
Apr. 28, 2019 | |
Text Block [Abstract] | |
DIVIDEND PROGRAM | 24. DIVIDEND PROGRAM On June 12, 2019, we announced that our board of directors approved a regular quarterly cash dividend payment of $0.10 per share. This payment will be made on or about July 16, 2019 July 5, 2019 During fiscal 2019, dividend payments totaled $4.7 million, all of which represented quarterly dividend payments ranging from $0.09 to $0.10 per share. During fiscal 2018, dividend payments totaled $6.8 million, of which $2.6 million represented a special cash dividend payment of $0.21 per share, and $4.2 million represented our regular quarterly cash dividend payments ranging from $0.08 to $0.09 per share. During fiscal 2017, dividend payments totaled $6.3 million, of which $2.6 million represented a special cash dividend payment in the first quarter of $0.21 per share, and $3.7 million represented our regular quarterly cash dividend payments ranging from $0.07 to $0.08 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. |
SELECTED QUARTERLY DATA (UNAUDI
SELECTED QUARTERLY DATA (UNAUDITED) | 12 Months Ended |
Apr. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY DATA (UNAUDITED) | (amounts in thousands except per share, ratios & other, stock data) fiscal 2019 4th quarter fiscal 2019 3rd quarter fiscal 2019 2nd quarter fiscal 2019 1st quarter fiscal 2018 4th quarter fiscal 2018 3rd quarter fiscal 2018 2nd quarter fiscal 2018 1st quarter INCOME STATEMENT DATA net sales $ 70,963 77,226 77,006 71,473 78,184 85,310 80,698 79,533 cost of sales 58,774 63,103 63,680 60,914 63,424 67,707 64,894 63,068 gross profit 12,189 14,123 13,326 10,559 14,760 17,603 15,804 16,465 selling, general and administrative expenses 10,230 10,038 10,103 8,033 8,296 9,959 9,415 9,501 restructuring (credit) expense — (214 ) (1,061 ) 451 — — — — income from operations 1,959 4,299 4,284 2,075 6,464 7,644 6,389 6,964 interest expense 4 — 18 20 26 31 37 — interest income (214 ) (251 ) (151 ) (150 ) (143 ) (132 ) (128 ) (131 ) other expense 658 288 142 257 115 229 321 353 income before income taxes 1,511 4,262 4,275 1,948 6,466 7,516 6,159 6,742 income taxes 3,017 1,225 1,276 906 (6,217 ) 8,208 2,108 1,640 loss (income) from investment in unconsolidated joint venture 5 (23 ) 55 77 17 56 75 118 net (loss) income (1,511 ) 3,060 2,944 965 12,666 (748 ) 3,976 4,984 net loss (income) attributable to non-controlling interest 143 94 (11 ) (8 ) — — — — net (loss) income attributable to Culp Inc. common shareholders $ (1,368 ) 3,154 2,933 957 12,666 (748 ) 3,976 4,984 depreciation $ 2,030 2,031 2,041 2,015 1,992 1,966 1,905 1,807 weighted average shares outstanding 12,384 12,438 12,515 12,510 12,450 12,436 12,440 12,399 weighted average shares outstanding, assuming dilution 12,384 12,465 12,551 12,600 12,611 12,436 12,580 12,590 PER SHARE DATA net (loss) income attributable to Culp Inc. common shareholders - basic $ (0.11 ) 0.25 0.23 0.08 1.02 (0.06 ) 0.32 0.40 net (loss) income attributable to Culp Inc. common shareholders - diluted (0.11 ) 0.25 0.23 0.08 1.00 (0.06 ) 0.32 0.40 dividends per share 0.10 0.10 0.09 0.09 0.09 0.09 0.08 0.29 book value 12.91 13.16 13.04 12.90 13.12 12.22 12.31 12.03 BALANCE SHEET DATA operating working capital (3) $ 49,757 52,573 50,193 51,648 49,939 47,760 46,620 42,608 property, plant and equipment, net 48,389 50,129 51,325 53,178 51,794 51,838 52,530 52,912 total assets 219,726 224,908 222,211 226,372 217,984 216,844 201,043 207,904 capital expenditures 295 835 590 1,255 1,568 1,274 1,529 3,068 dividends paid 1,239 1,240 1,126 1,127 1,121 1,119 995 3,608 subordinated loan payable and line of credit (1) 675 — — 4,000 — — — 5,000 shareholders’ equity attributable to Culp Inc. 159,933 162,775 162,918 161,490 163,376 152,182 153,080 149,677 capital employed (2) 125,311 130,155 129,853 134,095 114,817 109,165 109,373 108,222 RATIOS & OTHER DATA gross profit margin 17.2 % 18.3 % 17.3 % 14.8 % 18.9 % 20.6 % 19.6 % 20.7 % operating income margin 2.8 5.6 5.6 2.9 8.3 9.0 7.9 8.8 net (loss) income margin (2.1 ) 4.0 3.8 1.4 16.2 (0.9 ) 4.9 6.3 effective income tax rate 199.7 28.7 29.8 46.5 (96.1 ) 109.2 34.2 24.3 Debt-to-total capital employed ratio (1) (2) 0.5 0.0 0.0 3.0 0.0 0.0 0.0 4.6 operating working capital turnover (3) 5.8 6.0 6.3 6.6 7.1 7.4 7.4 7.4 days sales in receivables 30 30 28 29 30 28 27 25 inventory turnover 4.6 4.6 5.0 4.5 4.8 5.2 5.2 4.7 STOCK DATA stock price high $ 21.06 23.84 27.78 32.05 32.29 34.05 33.25 34.00 low 17.05 18.06 21.04 23.90 27.40 26.15 27.00 30.60 close 20.74 18.47 22.31 24.75 30.10 31.35 31.95 30.65 daily average trading volume (shares) 35.6 43.3 29.8 27.0 18.3 17.4 24.4 27.9 (1) Debt represents outstanding borrowings on our long-term subordinated loan payable and lines of credit. (2) Capital employed does not include cash and cash equivalents, short-term investments (available-for-sale), short-term investments (held-to-maturity), long-term investments (held-to-maturity), long-term investments (rabbi trust), lines of credit, subordinated loan payable, noncurrent deferred tax assets and liabilities, income taxes receivable and payable, and deferred compensation. (3) Operating working capital for this calculation is accounts receivable and inventories, offset by accounts payable-trade, accounts payable - capital expenditures, and deferred revenue. |
GENERAL AND SUMMARY OF SIGNIF_2
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Apr. 28, 2019 | |
Description of Business | Description of Business Our operations are classified into three The mattress fabrics segment manufactures, sources, and sells fabrics and mattress covers primarily to bedding manufacturers. We have wholly-owned mattress fabric operations located in Stokesdale, NC, High Point, NC, Quebec, Canada, and a fifty percent owned cut and sew mattress cover operation located in Haiti. The upholstery fabrics segment develops, manufactures, sources, and sells fabrics primarily to residential and commercial furniture manufacturers. We have wholly-owned upholstery fabric operations located in Shanghai, China, Burlington, NC, and a recently acquired business located in Knoxville, TN (see Note 2 for further details regarding our business combinations). Effective June 22, 2018, we acquired an 80% ownership interest in eLuxury (see Note 2 for further details), a company that offers bedding accessories and home goods directly to consumers and businesses through its e-commerce platform. eLuxury’s financial information is included in our home accessories segment, which is our new finished products business that manufactures, sources, and sells bedding accessories and home goods directly to consumers and businesses through global e-commerce and business-to-business sales channels. |
Basis of Presentation | Basis of Presentation The consolidated financial statements of the company have been prepared in accordance with U.S. generally accepted accounting principles. |
Principles of Consolidation | Principles of Consolidation Overall The consolidated financial statements include the accounts of the company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The accounts of our subsidiaries located in Shanghai, China and Poznan, Poland are consolidated as of April 30, a calendar month end, which are required by the Chinese and Polish governments, respectively. No events occurred related to the difference between our fiscal year end on the Sunday closest to April 30 and our China and Polish subsidiaries year end of April 30 that materially affected the company’s financial position, results of operations, or cash flows for fiscal years 2019, 2018, and 2017. Investment in Unconsolidated Joint Venture Effective January 1, 2017, Culp International Holdings, Ltd. (Culp), a wholly-owned subsidiary of Culp, Inc., entered into a joint venture agreement, pursuant to which Culp owns fifty percent of CLASS International Holdings, Ltd (CLIH). Culp’s investment in CLIH will be accounted for under the equity method of accounting in accordance with ASC Topic 823 – Investments – Equity Method and Joint Ventures. The equity method of accounting is required for an investee entity (i.e. CLIH) that is not consolidated but over which the reporting entity (i.e. Culp Inc.) exercises significant influence. Whether or not a reporting entity exercises significant influence with respect to an investee depends on an evaluation of several factors including, representation on the investee’s board of directors, voting rights, and ownership level. Under the equity method of accounting, CLIH’s accounts are not reflected within our Consolidated Balance Sheets and Statements of Net Income. Our share of earnings and losses from CLIH will be reflected in the caption “Income (loss) from investment in unconsolidated joint venture” in the Consolidated Statements of Net Income. Our carrying value in CLIH is reflected in the caption “Investment in unconsolidated joint venture” in our Consolidated Balance Sheets. If our carrying value in CLIH is reduced to zero, no further losses will be recorded in our consolidated financial statements. However, if CLIH subsequently reports income, we will not record our share of such income until it equals the amount of its share of losses previously recognized. Non-Controlling Interest In connection with the acquisition of our 80% ownership interest in eLuxury, we entered into an Equity Purchase Agreement (Equity Agreement) that contains substantive profit-sharing arrangement provisions in which it explicitly states the ownership interests at the effective date of this business combination and the allocation of net income or loss between Culp Inc., the controlling interest, and the noncontrolling interest. The Equity Agreement states that at the effective date of this acquisition (June 22, 2018), we acquired an 80% ownership interest in eLuxury with the seller retaining a 20% noncontrolling interest. Additionally, the Equity Agreement states that eLuxury’s net income or loss will be allocated at a percentage of 70% and 30% to Culp Inc. and the noncontrolling interest, respectively. As result of the acquisition of our 80% controlling interest, we included all the accounts of eLuxury in our consolidated financial statements and have eliminated all significant intercompany balances and transactions. Net income (loss) attributable to the noncontrolling interest in eLuxury is excluded from total consolidated net income attributable to Culp, Inc. common shareholders. |
Fiscal Year | Fiscal Year Our fiscal year is the 52 or 53-week period ending on the Sunday closest to April 30. Fiscal 2019, 2018, and 2017 each included 52 weeks. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include demand deposit and money market accounts. We consider all highly liquid instruments with original maturities of three months or less to be cash equivalents. A summary of our cash and cash equivalents by geographic area follows: (dollars in thousands) April 28, 2019 April 29, 2018 United States $ 28,078 9,452 China 9,670 9,221 Canada 2,196 2,349 Cayman Islands 64 206 $ 40,008 21,228 Throughout the year, we have cash balances regarding our U.S. operations in excess of federally insured amounts on deposit with a financial institution. We have not experienced any losses in such accounts. Management believes we are not exposed to any significant credit risk related to cash and cash equivalents. |
Accounts Receivable | Accounts Receivable Substantially all of our accounts receivable are due from manufacturers in the bedding and furniture industries. We grant credit to customers and generally do not require collateral. We record an allowance for doubtful accounts that reflects estimates of probable credit losses. Management continuously performs credit evaluations of our customers, considering numerous inputs including financial position, past payment history, cash flows, management ability, historical loss experience and economic conditions and prospects. We do not have any off-balance sheet credit exposure related to our customers. |
Inventories | Inventories We account for inventories at the lower of first-in, first-out (FIFO) cost or net realizable value. Management continually examines inventory to determine if there are indicators that the carrying value exceeds its net realizable value. Experience has shown that the most significant indicators of the need for inventory markdowns are the age of the inventory and the planned discontinuance of certain patterns. As a result, we provide inventory valuation write-downs based upon established percentages based on the age of the inventory that are continually evaluated as events and market conditions require. Our inventory aging categories are six, nine, twelve, and fifteen months. We also provide inventory valuation write-downs based on the planned discontinuance of certain products based on the current market values at that time as compared to their current carrying values. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost and depreciated over their estimated useful lives using the straight-line method. Major renewals and betterments are capitalized. Maintenance, repairs and minor renewals are expensed as incurred. When properties or equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts. Amounts received on disposal less the book value of assets sold are charged or credited to income from operations. Management reviews long-lived assets, which consist principally of property, plant and equipment, for impairment whenever events or changes in circumstances indicate that the carrying value of the asset may not be recovered. Recoverability of long-lived assets to be held and used is measured by a comparison of the carrying amount of the asset to future net undiscounted cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the excess of the carrying amount over the fair value of the asset. After the impairment loss is recognized, the adjusted carrying amount is the new accounting basis. Assets to be disposed of by sale are reported at the lower of the carrying value or fair value less cost to sell when the company has committed to a disposal plan and would be reported separately as assets held for sale in the Consolidated Balance Sheets. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred. Advertising costs totaled $2.2 million in fiscal 2019 and pertained to our home accessories segment. No advertising costs were incurred during fiscal 2018 and 2017, respectively. |
Interest Costs | Interest Costs Interest costs incurred were $42,000, $194,000, and $158,000 in fiscal years 2019, 2018, and 2017, respectively. We capitalize interest costs incurred on funds used to construct property, plant, and equipment. The capitalized interest is recorded as part of the asset to which it relates and is depreciated over the asset’s estimated useful life. No interest costs for the construction of qualifying fixed assets were capitalized during fiscal 2019. Interest costs of $100,000 and $158,000 were capitalized for the construction of qualifying fixed assets during fiscal 2018 and 2017, respectively. |
Foreign Currency Adjustments | Foreign Currency Adjustments The United States dollar is the functional currency for the company’s Canadian and Chinese subsidiaries. All monetary foreign currency asset and liability accounts are remeasured into U.S. dollars at year-end exchange rates. Non-monetary asset and liabilities such as property, plant, and equipment are recorded at historical exchange rates. Foreign currency revenues and expenses are remeasured at average exchange rates in effect during the year, except for certain expenses related to balance sheet amounts remeasured at historical exchange rates. Exchange gains and losses from remeasurement of foreign currency denominated monetary assets and liabilities are recorded in the other expense line item in the Consolidated Statements of Net Income in the period in which they occur. A summary of our foreign currency exchange (losses) gains by geographic area follows: (dollars in thousands) 2019 2018 2017 China $ — (298 ) 111 Canada 2 (8 ) (120 ) Euro foreign exchange contract (64 ) — — $ (62 ) (306 ) (9 ) See Note 18 for additional details regarding our Euro foreign exchange contract. |
Goodwill | Goodwill In accordance with ASC Topic 350, Intangibles – Goodwill and Other, our operations are currently classified into four reporting units: mattress fabrics, upholstery fabrics, Read Window Products, LLC, and home accessories. We assess goodwill for impairment at the end of each fiscal year or between annual tests if we believe indicators of impairment exist. Such indicators could include, but are not limited to (1) a deterioration in general economic conditions, (2) deterioration in the environment of the industry and markets in which we operate, or (3) unanticipated competition. We first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If we conclude that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we would conduct a two-step quantitative goodwill impairment test. The first step of the impairment test involves comparing the fair value of the applicable reporting unit with its carrying value. We estimate the fair values of our reporting units using a combination of the income or discounted cash flows approach and the market approach, which utilizes comparable companies’ data. If the carrying amount of a reporting unit exceeds the reporting unit’s fair value, management performs the second step of the goodwill impairment test. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit’s goodwill with the carrying value of that goodwill. The amount, by which the carrying value of the goodwill exceeds its implied fair value, if any, is recognized as an impairment loss. Our evaluation of goodwill completed as of April 28, 2019, resulted in no impairment losses. |
Income Taxes | Income Taxes Deferred Income Taxes – Overall Income taxes are accounted for under the asset and liability method. Deferred income taxes are recognized for temporary differences between the financial statement carrying amounts and the tax basis of our assets and liabilities and operating loss and tax credit carryforwards at income tax rates expected to be in effect when such amounts are realized or settled. The effect on deferred income taxes of a change in tax rates is recognized in income tax expense (benefit) in the period that includes the enactment date. Deferred Income Taxes – Valuation Allowance We evaluate our deferred income taxes to determine if a valuation allowance is required. We 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 we operate in multiple jurisdictions, we assess the need for a valuation allowance on a jurisdiction-by-jurisdiction basis, considering the effects of local tax law. Deferred Income Taxes – Undistributed Earnings from Foreign Subsidiaries We assess whether the undistributed earnings from our foreign subsidiaries will be reinvested indefinitely or eventually distributed to our U.S. parent company. We are required to record a deferred tax liability for undistributed earnings from foreign subsidiaries that will not be reinvested indefinitely. 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. For fiscal 2019 and beyond, the 2017 Tax Cuts and Jobs Act allows a U.S. corporation a 100% dividend received deduction for earnings and profits received from a 10% owned foreign corporation. Therefore, a deferred tax liability will only be required for withholding taxes that are incurred by our foreign subsidiaries at the time earnings and profits are distributed. Uncertainty in Income Taxes We recognize the tax impact from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax impact recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. Penalties and interest related to uncertain tax positions are recorded as income tax expense. Significant judgment is required in the identification of uncertain tax positions and in the estimation of penalties and interest on uncertain tax positions. |
Revenue Recognition | Revenue Recognition On April 30, 2018 (the beginning of fiscal 2019), we adopted ASU 2014-09 “Revenue from Contracts with Customers” (ASC Topic 606 or the “new standard”). ASC Topic 606 requires us to disclose significant judgments and changes in judgments in applying the new standard that significantly affect the determination of the amount and timing of revenue from contracts with customers. The application of the new standard did not materially affect our accounting policies followed in fiscal years 2018 and 2017 with regards to revenue recognition, determination of transaction prices, and revenue measurement. However, as required by ASC Topic 606, we recorded a significant reclassification adjustment from a contra account applied to accounts receivable to accrued expenses for estimated sales returns and allowances (see Note 4 to the consolidated financial statements for further details). See below for disclosure of our significant judgements and accounting policies or determining the amount and timing of revenue from contracts with customers. Revenue Recognition Revenue is recognized upon the transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We have determined that our customer purchase orders represent contracts. In addition to purchase orders, we also have supply contracts with certain customers that define standard terms and conditions. Our contracts generally include promises to sell either upholstery fabric, mattress fabric, or bedding accessories and home goods products, or to provide customized fabrication services, and installation services of our own products associated with customized window treatments. Revenue associated with sales of our products are recognized at the point-in-time when control of the promised goods has been transferred to the customer. The point-in-time when control transfers to the customer depends on the contractually agreed upon shipping terms, but typically occurs once the product has been shipped or once it has been delivered to a location specified by the customer. For certain warehousing arrangements, transfer of control to the customer is deemed to have occurred when the customer pulls the inventory for use in their production. Revenue associated with our customized fabrication services, which are performed on various types of window treatments, is recognized over time once the customized products are deemed to have no alternative use and for which we have an enforceable right to payment for the services performed. Revenue for our customized fabrication services is recognized over time using the output method based on units produced. Revenue associated with our installation services of own products is also recognized over time as the customer receives and consumes the benefits of the promised installation services. Revenue associated with our installation services is recognized over time using the output method based on units installed. Transaction Price The transaction price is typically allocated to performance obligations based upon stand-alone selling prices. We did not disclose the value of unsatisfied performance obligations as substantially all of any unsatisfied performance obligations as of April 28, 2019, will be satisfied within one year or less. Revenue Measurement Revenue is measured as the amount of consideration we expect to receive in exchange for the transfer of the promised products and services. The amount of consideration we expect to receive changes due to variable consideration are associated with allowances for sales returns, early payment discounts, and volume rebates that we offer to customers. The amount of variable consideration which is included in the transaction price is only included in net sales to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur in a future period. Our mattress fabrics and upholstery fabrics business segments only allow product returns to the extent that the products or services did not meet the contractually agreed upon specifications at the time of sale. Customers must receive authorization prior to returning products. Our home accessories business segment allows returns for any reason provided the product is returned within the stated time frame, generally 30 days, unless the product was customized in which case of a defect must be present in order to return the product. Estimates of allowances for sales returns are based on historical data, current potential product return issues, and known sales returns for which customers have been granted return authorization. Known sales returns for which customers have been granted permission to return products for a refund or credit, continue to be recorded as a contra account receivable. Estimates for potential future sales returns and related customer accommodations are recorded within accrued expenses. We record estimates for sales returns on a gross basis rather than a net basis and an estimate for a right of return asset is recorded in other current assets and cost of goods sold. Variable consideration associated with early payment cash discounts are estimated using current payment trends and historical data on a customer-by-customer basis. The variable consideration associated with volume rebates are based on the portion of the rebate earned relative to the total amount of rebates the customer is expected to earn over the rebate period as determined using historical data and projections. We evaluated the nature of our warranties related to our contracts with customers and determined that any such warranties are assurance-type warranties that cover only compliance with agreed upon specifications, and therefore are not considered separate performance obligations. |
Shipping and Handling Costs | Shipping and Handling Costs Revenue received for shipping and handling costs, which is immaterial for all periods presented, is included in net sales. Shipping costs, principally freight, that comprise payments to third-party shippers are classified as cost of sales. Handling costs represent finished goods warehousing costs incurred to store, move, and prepare products for shipment in the company’s various distribution facilities. Handling costs were $4.2 million, $4.6 million and $4.6 million in fiscal 2019, 2018, and 2017, respectively, and are included in selling, general and administrative expenses. |
Sales and Other Taxes | Sales and Other Taxes Sales and other taxes collected from customers and remitted to governmental authorities are presented on a net basis and, as such, are excluded from revenues. |
Stock-Based Compensation | Stock-Based Compensation Our equity incentive plans are described more fully in Note 16. ASC 718, “Compensation – Stock Compensation”, requires that all stock-based compensation be recognized as compensation expense in the financial statements and that such cost be measured at the grant date for awards issued to employees and the company’s board of directors. Equity awards issued to non-employees are measured at the earlier date of when the performance criteria are met or at the end of each reporting period. Compensation expense for time vested restricted stock awards are amortized on a straight-line basis over the remaining vesting periods. Compensation expense for performance based restricted stock units are recorded based on an assessment each reporting period of the probability if certain performance goals are to be met during the contingent vesting period. If performance goals are not probable of occurrence, no compensation expense was recognized. Previously recognized compensation cost on performance goals that were previously deemed probable and subsequently, were not or expected to be met, was reversed. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The accompanying consolidated financial statements include certain financial instruments, and the fair market value of such instruments may differ from amounts reflected on a historical basis. These financial instruments include our short-term and long-term investments. The fair value measurements of our financial instruments are described more fully in Note 17. The carrying amount of cash and cash equivalents, short-term investments, accounts receivable, other current assets, accounts payable and accrued expenses approximates fair value because of the short maturity of these financial instruments. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASC Topic 606. ASC Topic 606 was intended to enhance the comparability of revenue recognition practices and will be applied to all contracts with customers. Improved disclosures related to the nature, amount, timing, and uncertainty of revenue that is recognized are requirements under the amended guidance. The new revenue standard became effective at the beginning of our fiscal 2019, and therefore, we applied the new revenue guidance in our first quarter of fiscal 2019 interim financial statements. This guidance did not have a material impact on our results of operations and financial position but did have a material impact on the disclosures required in our notes to the consolidated financial statements, which are disclosed in Note 4. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , to address the diversity in how certain cash receipts and cash payments are presented in the statement of cash flows. This new guidance provides clarity around the cash flow classification for eight specific issues in an effort to reduce the current and potential future diversity in practice. This new standard, which is to be applied retrospectively, became effective at the beginning of our fiscal 2019, and therefore, we applied this new guidance in our first quarter of fiscal 2019 interim financial statements. During the first quarter of fiscal 2019, this new guidance did not impact our results of operations, balance sheet, or statement of cash flows. Currently, we do expect that this guidance will be applicable in determining how we classify certain contingent payments associated with our business combinations (see note 2) as either investing or financing activities. This guidance requires cash payments not made soon after the acquisition date of a business combination by an acquirer to settle a contingent consideration liability should be separated and classified as cash outflows from financing activities. In comparison, cash payments made soon after the acquisition date should be separated and classified as cash outflows from investing activities. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, to reduce the diversity in practice and complexity associated with accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Prior GAAP prohibited recognition of deferred income taxes for an intra-entity transfer until the asset had been sold to an outside party. The new pronouncement stipulates that an entity should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This new standard, which is required to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings, became effective at the beginning of our fiscal 2019. Therefore, we were required to apply this new guidance in our first quarter fiscal 2019 interim financial statements. This guidance did not impact our results of operations and financial position. Recently Issued Accounting Pronouncements Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which increases transparency and comparability among companies accounting for lease transactions. The most significant change of this update will require the recognition of lease assets and liabilities on the balance sheet for operating lease arrangements with lease terms greater than twelve months for lessees. This update will require a modified retrospective application which includes a number of optional practical expedients related to the identification and classification of leases commenced before the effective date. This ASU is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2018. The FASB recently issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements”, which allows entities to apply the transition provisions of the new standard at its adoption date instead of the earliest comparative period presented in the consolidated financial statements. This ASU allows entities to continue to use Topic 840, Leases , including its disclosure requirements, in the comparative years presented in the year the new leases standard is adopted. Entities that elect this option would still adopt the new leases standard using a modified retrospective transition method but would recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption rather than the earliest years presented. We are required to apply this guidance in our fiscal 2020 interim and annual financial statements. We expect this guidance upon adoption to increase our lease liability by approximately $7.2 million with a corresponding increase to recognize our right-of-use assets by approximately $7.2 million, with no material impact to our statements of net income. Additionally, Topic 842 is expected to significantly impact the extensiveness of our disclosures required in our notes to the consolidated financial statements. There are no other new accounting pronouncements that are expected to have a significant impact on our consolidated financial statements. |
Investments (Held-To-Maturity) [Member] | |
Investments | Investments (Held-To-Maturity) Our investments classified as held-to-maturity consisted of investment grade U.S. corporate bonds with maturities that ranged from 2 to 2.5 At April 28, 2019, the amortized cost and fair value of our held-to-maturity investments were $5.0 million. At April 29, 2018, the amortized cost of our held-to-maturity investments were $30.8 million and the fair value was $30.6 million. Our U.S. corporate bonds were classified as level 2 as they were traded over the counter within a broker network and not on an active market. The fair value of our U.S. corporate bonds was determined based on a published source that provided an average bid price. The average bid price was based on various broker prices that were determined based on market conditions, interest rates, and the rating of the respective U.S. corporate bond. |
Short-term Investments [Member] | |
Investments | Short-Term Investments (Available for Sale) As of April 29, 2018, our short-term investments consisted of bond funds that were classified as available-for-sale and had an accumulated unrealized loss totaling $91,000. On April 29, 2018, our short-term investments were recorded at its fair value of $2.5 million and the fair value of our short-term investments approximated its cost basis. A summary of our short-term investments by geographic area follows: (dollars in thousands) April 28, 2019 April 29, 2018 Canada $ — 1,366 United States — 1,085 $ — 2,451 |
Long-term investments (Rabbi Trust) [Member] | |
Investments | Long-Term Investments (Rabbi Trust) We have 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 investments in a money market fund and various mutual funds that are classified as available for sale. Our long-term investments are classified as available for sale and were recorded at its fair value of $7.1 million and $7.3 million at April 28, 2019 and April 29, 2018 respectively. Our long-term investments had an accumulated unrealized gain totaling $40,000 and $61,000 at April 28, 2019, and April 29, 2018, respectively. The fair value of our long-term investments associated with our Rabbi Trust approximates its cost basis. |
GENERAL AND SUMMARY OF SIGNIF_3
GENERAL AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Apr. 28, 2019 | |
Accounting Policies [Abstract] | |
Summary of Cash and Cash Equivalents by Geographic Area | A summary of our cash and cash equivalents by geographic area follows: (dollars in thousands) April 28, 2019 April 29, 2018 United States $ 28,078 9,452 China 9,670 9,221 Canada 2,196 2,349 Cayman Islands 64 206 $ 40,008 21,228 |
Summary of Short-Term Investments by Geographic Area | A summary of our short-term investments by geographic area follows: (dollars in thousands) April 28, 2019 April 29, 2018 Canada $ — 1,366 United States — 1,085 $ — 2,451 |
Summary of Foreign Currency Exchange Gains (Losses) by Geographic Area | A summary of our foreign currency exchange (losses) gains by geographic area follows: (dollars in thousands) 2019 2018 2017 China $ — (298 ) 111 Canada 2 (8 ) (120 ) Euro foreign exchange contract (64 ) — — $ (62 ) (306 ) (9 ) |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Apr. 28, 2019 | |
Schedule of Unaudited Pro Forma Consolidated Results of Operations | The following unaudited pro forma consolidated results of operations for the years ending April 28, 2019, April 29, 2018, and April 30, 2017, have been prepared as if the acquisitions of eLuxury had occurred on May 1, 2017 and Read had occurred on May 2, 2016. (dollars in thousands, except per share data April 28, 2019 April 29, 2018 April 30, 2017 Net Sales $ 299,599 $ 354,509 $ 321,398 Income from operations 12,616 26,948 30,441 Net income 5,432 20,299 22,552 Net loss - noncontrolling interest (226 ) (48 ) — Net income – Culp Inc. common shareholders 5,658 20,347 22,552 Net income per share (basic) – Culp Inc. common shareholders 0.45 1.64 1.83 Net income per share (diluted) – Culp Inc. common shareholders 0.45 1.61 1.80 |
Read Window Products, LLC [Member] | |
Schedule of Allocation of Acquisition Cost to Assets Acquired and Liabilities Assumed | The following table presents the final allocation of the acquisition cost to the assets acquired and liabilities assumed based on their fair values. (dollars in thousands) Fair Value Customer relationships $ 2,247 Goodwill 2,107 Inventory 1,128 Accounts receivable 897 Tradename 683 Property, plant & equipment 379 Other assets 35 Deferred revenue (903 ) Accounts payable (719 ) Accrued expenses (174 ) $ 5,680 |
eLuxury [Member] | |
Schedule of Allocation of Acquisition Cost to Assets Acquired and Liabilities Assumed | The following table presents the final allocation of the acquisition cost to the assets acquired and liabilities assumed based on their fair values. (dollars in thousands) Fair Value Goodwill $ 13,653 Tradename 6,549 Equipment 2,179 Inventory 1,804 Accounts receivable and other current assets 108 Accounts payable (1,336 ) Accrued expenses (295 ) Non-controlling interest in eLuxury (4,532 ) $ 18,130 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Apr. 28, 2019 | |
Receivables [Abstract] | |
Summary of Accounts Receivable | A summary of accounts receivable follows: (dollars in thousands) April 28, 2019 April 29, 2018 customers $ 24,370 28,097 allowance for doubtful accounts (393 ) (357 ) allowance for cash discounts (186 ) (245 ) reserve for returns and allowances and discounts (1) (40 ) (1,188 ) $ 23,751 26,307 (1) Due to the adoption of ASC Topic 606, Revenue from Contracts with Customers, certain balance sheet reclassifications were required regarding our allowance for sales returns and allowances for the current year’s presentation only. See Note 4 to the consolidated financial statements for required balance sheet disclosures associated with the adoption of ASC Topic 606. |
Summary of the Activity in the Allowance for Doubtful Accounts | A summary of the activity in the allowance for doubtful accounts follows: (dollars in thousands) 2019 2018 2017 beginning balance $ (357 ) (414 ) (1,088 ) provision for bad debts (84 ) 57 222 write-offs, net of recoveries 48 — 452 ending balance $ (393 ) (357 ) (414 ) |
Summary of the Activity in the Allowance for Returns and Allowances and Discounts | A summary of the activity in the allowance for returns and allowances and discounts follows: (dollars in thousands) 2019 2018 2017 beginning balance $ (1,433 ) (1,220 ) (962 ) adoption of ASC Topic 606 (1) 1,145 — — provision for returns and allowances and discounts (2,180 ) (3,295 ) (3,061 ) credits issued 2,242 3,082 2,803 ending balance $ (226 ) (1,433 ) (1,220 ) |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Apr. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Adjustments Due to ASC 606 Adoption | The cumulative effect of the classification changes related to our allowances for sales returns on our April 30, 2018, balance sheet are as follows: (dollars in thousands) Balance at April 29, 2018 Adjustments Due to ASC 606 Adoption (1) Balance at April 30, 2018 Balance Sheet Assets: Accounts Receivable $ 26,307 $ 1,145 $ 27,452 Other Current Assets 2,870 27 2,897 Liabilities: Accrued Expenses 9,325 1,172 10,497 (1) The adjustments associated with the adoption of the new standard are related to classifying allowances for estimated sales returns as a liability rather than as a contra account to accounts receivable on the consolidated balance sheet for the current year’s presentation only. As required under the new standard, we also recorded the estimated allowance for sales returns on a gross basis rather than a net basis by separately reflecting a return goods asset within other current assets rather than netting such amounts with the estimated sales returns liability. Currently, we expect the adoption of this new standard to be immaterial to our net income on an ongoing basis. The effect of adopting ASC 606 on our Consolidated Statements of Net Income for fiscal 2019, are as follows: (dollars in thousands) Fiscal 2019 Adjustments Due to ASC 606 Adoption (1) BalancesWithout ASC 606 Adoption Statements of Net Income Net Sales $ 296,669 $ (28 ) $ 296,641 Cost of Sales 246,471 (28 ) 246,443 The effect of adopting ASC 606 on our Consolidated Balance Sheets at April 28, 2019 is as follows: (dollars in thousands) April 28, 2019 Adjustments Due to ASC 606 Adoption (1) BalancesWithout ASC 606 Adoption Balance Sheet Assets: Accounts Receivable $ 23,751 $ (854 ) $ 22,897 Other Current Assets 2,849 (28 ) 2,821 Liabilities: Accrued Expenses $ 9,192 (882 ) $ 8,310 |
Summary of Activity for Deferred Revenue | A summary of the activity of deferred revenue for fiscal 2019 follows: (dollars in thousands) Fiscal 2019 Balance as of April 29, 2018 $ 809 Revenue recognized on contract liabilities during the period (2,725 ) Payments received for services not yet rendered during the period 2,315 Balance as of April 28, 2019 $ 399 |
Summary of Disaggregation of Revenue | The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for fiscal 2019: (dollars in thousands) Mattress Fabrics Upholstery Fabrics Home Accessories Total Products transferred at a point in time $ 145,059 $ 125,294 $ 15,956 $ 286,309 Services transferred over time — 10,360 — 10,360 Total Net Sales $ 145,059 $ 135,654 $ 15,956 $ 296,669 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Apr. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | A summary of inventories follows: (dollars in thousands) April 28, 2019 April 29, 2018 raw materials $ 5,617 6,024 work-in-process 2,289 3,264 finished goods 42,954 44,166 $ 50,860 53,454 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Apr. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant, and Equipment | A summary of property, plant and equipment follows: (dollars in thousands) depreciable lives (in years) April 28, 2019 April 29, 2018 land and improvements 0-10 $ 838 963 buildings and improvements 7-40 30,712 31,022 leasehold improvements ** 2,180 1,993 machinery and equipment 3-12 72,641 72,924 office furniture and equipment 3-10 9,834 9,514 capital projects in progress 1,263 2,086 117,468 118,502 accumulated depreciation (69,079 ) (66,708 ) $ 48,389 51,794 ** Shorter of life of lease or useful life. |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Apr. 28, 2019 | |
Summary of Intangible Assets | A summary of intangible assets follows: (dollars in thousands) April 28, 2019 April 29, 2018 Tradenames $ 7,232 $ 683 Customer relationships, net 2,538 2,839 Non-compete agreement, net 678 753 $ 10,448 $ 4,275 |
Summary of Acquired Tradenames | A summary of the carrying amount of our tradenames from our recent acquisitions (see Note 2) follow: (dollars in thousands) April 28, 2019 April 29, 2018 Read $ 683 $ 683 eLuxury 6,549 — $ 7,232 $ 683 |
Customer Relationships [Member] | |
Summary of Change in Carrying Amount of Finite-Lived Intangible Assets | A summary of the change in the carrying amount of our customer relationships follows: (dollars in thousands) 2019 2018 2017 beginning balance $ 2,839 664 715 acquisition of assets (note 2) — 2,247 — amortization expense (301 ) (72 ) (51 ) loss on impairment — — — ending balance $ 2,538 2,839 664 |
Non-Compete Agreement [Member] | |
Summary of Change in Carrying Amount of Finite-Lived Intangible Assets | A summary of the change in the carrying amount of our non-compete agreement follows: (dollars in thousands) 2019 2018 2017 beginning balance $ 753 828 903 amortization expense (75 ) (75 ) (75 ) loss on impairment — — — ending balance $ 678 753 828 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Apr. 28, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Change in Carrying Amount of Goodwill | A summary of the change in the carrying amount of goodwill follows: (dollars in thousands) 2019 2018 2017 beginning balance $ 13,569 11,462 11,462 acquisition of assets (note 2) 13,653 2,107 — loss on impairment — — — ending balance $ 27,222 13,569 11,462 |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED JOINT VENTURE (Tables) | 12 Months Ended |
Apr. 28, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Equity Method Investment | The following table summarizes information of assets, liabilities and members’ equity of our equity method investment in CLIH: (dollars in thousands) April 28, 2019 April 29, 2018 total assets $ 3,126 $ 3,130 total liabilities $ 111 $ 128 total members’ equity $ 3,015 $ 3,002 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Apr. 28, 2019 | |
Text Block [Abstract] | |
Summary of Accrued Expenses | A summary of accrued expenses follows: (dollars in thousands) April 28, 2019 April 29, 2018 compensation, commissions and related benefits $ 4,229 6,918 interest 4 20 other 5,292 3,150 $ 9,525 10,088 |
Exit and Disposal Activity (Tab
Exit and Disposal Activity (Tables) | 12 Months Ended |
Apr. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Credit and Related Charges Associated with Exit and Disposal Activity | The following summarizes our restructuring credit and related charges totaling $1.6 million that were associated with the above exit and disposal activity: (dollars in thousands) 2019 Inventory markdowns $ 1,564 Other operating costs associated with a closed facility 824 Employee termination benefits 661 Gain on sale of property, plant, and equipment (1,486 ) $ 1,563 |
Summary of Activity in Restructuring Accrual | The following summarizes the activity in the restructuring accrual: (dollars in thousands) 2019 Accrual established in fiscal 2019 $ 451 Paid in fiscal 2019 (538 ) Adjustments in fiscal 2019 211 $ 124 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Apr. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Allocation of Income Tax Expense | Total income tax expense was allocated as follows: (dollars in thousands) 2019 2018 2017 income from operations $ 6,424 5,740 7,339 shareholders’ equity, related to the tax benefit arising from stock based compensation — — (657 ) $ 6,424 5,740 6,682 |
Schedule of Income Tax Expense Attributable to Income from Operations | Income tax expense attributable to income from operations consists of: (dollars in thousands) 2019 2018 2017 current federal $ (1,492 ) (1,367 ) 109 state 27 9 13 2017 Tax Cuts and Jobs Act (282 ) 4,854 — foreign 6,144 4,726 5,981 foreign – reversal of uncertain tax position — — (3,431 ) 4,397 8,222 2,672 deferred federal 3,123 4,295 404 state (96 ) 112 54 2017 Tax Cuts and Jobs Act (1) (268 ) (6,903 ) — undistributed earnings – foreign subsidiaries 3,735 (195 ) (101 ) U.S. operating loss carryforwards 74 — 3,630 foreign (85 ) 93 734 valuation allowance (1) (4,456 ) 116 (54 ) 2,027 (2,482 ) 4,667 $ 6,424 5,740 7,339 (1) The income tax benefit of $ 6,903 4,550 4.5 |
Schedule of Income (Loss) before Income Taxes Related to Foreign and U.S. Operations | Income (loss) before income taxes related to our foreign and U.S. operations consists of: (dollars in thousands) 2019 2018 2017 Foreign China $ 9,899 11,036 13,650 Canada 5,488 5,985 4,918 Poland — — (19 ) Cayman Islands 280 339 154 Total Foreign 15,667 17,360 18,703 United States (3,671 ) 9,523 10,993 $ 11,996 26,883 29,696 |
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 the income tax expense at the federal income tax rate and the effective income tax rate reflected in the consolidated financial statements: 2019 2018 2017 federal income tax rate 21.0 % 30.4 % 34.0 % undistributed earnings from foreign subsidiaries 37.2 — — valuation allowance (37.1 ) 0.4 (0.2 ) global intangible low taxed income tax (GILTI) 17.9 — — foreign tax rate differential 13.7 3.7 — tax effects of the 2017 Tax Cuts and Jobs Act (4.6 ) (7.6 ) — tax effects of Chinese foreign exchange gains(losses) 2.3 (2.8 ) 1.6 reversal of foreign uncertain income tax position — — (11.6 ) tax effects of stock-based compensation 0.6 (1.8 ) — other 2.6 (0.9 ) 0.9 53.6 % 21.4 % 24.7 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities consist of the following: (dollars in thousands) 2019 2018 deferred tax assets: accounts receivable $ 282 316 inventories 1,591 2,217 compensation 1,973 3,438 liabilities and other 284 117 foreign income tax credits - U.S. 1,252 5,720 property, plant and equipment (1) 193 226 loss carryforwards – U.S. 2,360 2,513 loss carryforwards – foreign — 76 valuation allowances (748 ) (5,204 ) total deferred tax assets 7,187 9,419 deferred tax liabilities: undistributed earnings on foreign subsidiaries (3,523 ) (4,256 ) unrecognized tax benefits – U.S. (380 ) (380 ) property, plant and equipment (2) (4,710 ) (4,352 ) goodwill (1,203 ) (1,046 ) other (90 ) (77 ) total deferred tax liabilities (9,906 ) (10,111 ) Net deferred liabilities $ (2,719 ) (692 ) (1) Pertains to the company’s operations located in China. (2) Pertains to the company’s operations located in the U.S. and Canada. |
Summary of Valuation Allowances Against Deferred Income Taxes | valuation allowances against our deferred income taxes pertain to the following jurisdictions: (dollars in thousands) April 28, 2019 April 29, 2018 U.S. foreign income tax credits $ 82 4,550 U.S. state loss carryforwards and credits 666 578 Polish loss carryforwards — 76 $ 748 5,204 |
Summary of Change in Valuation Allowances Against Deferred Income Taxes | A summary of the change in the valuation allowances against our deferred income taxes follows: (dollars in thousands) 2019 2018 2017 beginning balance $ 5,204 536 590 write off of deferred income taxes (4,544 ) — — establishment of valuation allowance (1) — 4,550 — change in estimate (2) 88 118 (54 ) ending balance $ 748 5,204 536 (1) The establishment of this valuation allowance pertains to U.S. foreign tax credits that were not more-likely-than not to be realized as a result of the Tax Act. (2) Amounts pertain to a change in estimate of the recoverability of certain deferred income tax assets as of the end of the respective prior fiscal year. |
Schedule of Unrecognized Tax Benefit | The following table sets forth the change in the company’s unrecognized income tax benefit: (dollars in thousands) 2019 2018 2017 beginning balance $ 844 12,245 14,897 increases from prior period tax positions 135 350 854 decreases from prior period tax positions (1) (76 ) (11,751 ) (3,506 ) increases from current period tax positions — — — ending balance $ 903 844 12,245 (1) The $ 11.8 3.5 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Apr. 28, 2019 | |
Summary of Stock Option Activity | The following tables summarize stock option activity during fiscal 2019, 2018, and 2017: 2019 2018 2017 Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price Shares Weighted- Average Exercise Price outstanding at beginning of year — $ — 15,600 $ 7.14 83,600 $ 8.37 granted — — — — — — exercised — — (15,600 ) 7.14 (68,000 ) 8.65 canceled/expired — — — — — — outstanding at end of year — — — — 15,600 7.14 |
Summary of Time Vested Restricted Stock Activity | The following table summarizes the time-based restricted stock activity during fiscal years 2019, 2018, and 2017: 2019 Shares 2018 Shares 2017 Shares outstanding at beginning of year 1,200 1,200 — granted 10,000 1,200 1,200 vested (1,200 ) (1,200 ) — outstanding at end of year 10,000 1,200 1,200 |
Summary of Assumptions Used to Determine Fair Value of Performance Based Restricted Stock Units | The following table provides assumptions used to determine the fair market value of the market-based total shareholder return component using the Monte Carlo simulation model on the grant dates of August 2, 2018 and July 13, 2017: August 2, 2018 July 13, 2017 Closing price of our common stock $ 24.35 $ 32.50 Expected volatility of our common stock 33.5 % 31.0 % Expected volatility of peer companies 16.0 % 16.5 % Risk-free interest rate 2.74 % 1.56 % Dividend yield 1.35 % 1.66 % Correlation coefficient of peer companies 0.47 0.46 |
Summary of Grants of Common Stock to Outside Directors | The following table summarizes information related to our grants of common stock to our outside directors during fiscal 2019, 2018, and 2017: Date of Grant Common Stock Awarded (1) Price Per Share Vesting Period April 1, 2019 2,948 $ 19.18 Immediate October 1, 2018 3,600 $ 23.45 Immediate October 2, 2017 4,800 $ 33.20 Immediate October 3, 2016 4,800 $ 29.80 Immediate (1) Price per share represents closing price of our common stock on the date of grant. |
NEOs and Key Employees [Member] | |
Summary of Grants of Performance Based Restricted Stock Units | The following table summarizes information related to our grants of performance based restricted stock units associated with NEOs and key employees that were unvested at April 28, 2019: Date of Grant (3) Restricted Stock Units Awarded Price Per Share Vesting Period August 2, 2018 (1) 86,599 $ 18.51 (4) 3 years August 2, 2018 (2) 47,800 $ 24.35 (6) 3 years July 13, 2017 (1) 78,195 $ 31.85 (5) 3 years July 13, 2017 (2) 44,000 $ 32.50 (6) 3 years July 14, 2016 (1) (2) 107,880 $ 28.00 (6) 3 years (1) Performance-based restricted stock units awarded to NEOs. (2) Performance-based restricted stock units awarded to key employees. (3) Amounts represent the maximum number of common stock shares that could be earned if certain performance targets are met as defined in the related restricted stock unit agreements. (4) Price per share represents the fair market value per share ($0.76 per $1 or a reduction of $5.84 to the closing price of the our common stock) determined using the Monte Carlo simulation model for the market-based total shareholder return component and the closing price of our common stock ($ 24.35 (5) Price per share represents the fair market value per share ($0.98 per $1 or a reduction of $0.65 to the closing price of the our common stock) determined using the Monte Carlo simulation model for the market-based total shareholder return component and the closing price of our common stock ($ 32.50 (6) Price per share represents the closing price of our common stock on the date of grant. |
Non-employee [Member] | |
Summary of Grants of Performance Based Restricted Stock Units | Date of Grant (1) Restricted Stock Units Awarded Price Per Share Vesting Period July 14, 2016 11,549 $ 20.74 (2) 3 years (1) Amounts represent the maximum number of common stock shares that could be earned if certain performance targets are met as defined in the related restricted stock unit agreement. (2) The respective grant was unvested at the end of our reporting period. Accordingly, the price per share represents the closing price of our common stock on April 28, 2019, the end of our reporting period. |
Time Vested Restricted Stock Awards [Member] | Management [Member] | |
Summary of Grants of Time-Based Restricted Stock Awards | The following table summarizes information related to our grants of time-based restricted stock awards associated with certain key members of management during fiscal years 2019, 2018 and 2017: Date of Grant Restricted Stock (1) Vesting August 2, 2018 10,000 $ 24.35 59 months July 13, 2017 1,200 $ 32.50 11 months June 14, 2016 1,200 $ 28.00 11 months (1) Price per share represents closing price of our common stock on the date the respective award was granted. |
Time Based Restricted Stock Units [Member] | |
Summary of Vested Restricted Stock Units | The following table summarizes information related to our time-based restricted stock units that vested during the fiscal 2019, 2018, and 2017: Fiscal Year Common Stock Shares Vested (1) Weighted Average Fair Value (2) Price Per Share Fiscal 2019 1,200 $ 21 $ 17.36 Fiscal 2018 1,200 $ 37 $ 30.90 Fiscal 2017 — — — (1) Dollar amounts are in thousands. (2) Price per share represents closing price of our common stock on the |
Performance Based Restricted Stock Unit [Member] | |
Summary of Vested Restricted Stock Units | The following table summarizes information related to our performance based restricted stock units that vested during the fiscal 2019, 2018, and 2017: Fiscal Year Common Stock Shares Vested (3) Weighted Average Fair Value Weighted Average Price Per Share Fiscal 2019 (1) 128,632 $ 3,754 $ 29.19 (4) Fiscal 2019 (2) 10,364 $ 320 $ 30.90 (4) Fiscal 2018 (1) 102,845 $ 3,342 $ 32.50 (4) Fiscal 2018 (2) 16,000 $ 520 $ 32.50 (4) Fiscal 2017 (1) 37,192 $ 1,066 $ 28.66 (4) Fiscal 2017 (2) 12,000 $ 344 $ 28.66 (4) (1) NEOs and key employees. (2) Non-employee (3) Dollar amounts are in thousands. (4) The weighted average price per share is derived from the closing prices of our common stock on the dates the respective performance based restricted stock units vested. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Apr. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets 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 April 28, 2019 using: Quoted prices in Significant other Significant (amounts in thousands) Level 1 Level 2 Level 3 Total Assets: Premier Money Market Fund $ 6,639 N/A N/A $ 6,639 Growth Allocation Fund 203 N/A N/A 203 Moderate Allocation Fund 127 N/A N/A 127 Other 112 N/A N/A 112 Liabilities: None N/A N/A N/A N/A Fair value measurements at April 29, 2018 using: Quoted prices in active markets assets Significant other Significant unobservable inputs (amounts in thousands) Level 1 Level 2 Level 3 Total Assets: Premier Money Market Fund $ 6,492 N/A N/A $ 6,492 Low Duration Bond Fund 1,085 N/A N/A 1,085 Intermediate Term Bond Fund 747 N/A N/A 747 Strategic Income Fund 619 N/A N/A 619 Large Blend Fund 402 N/A N/A 402 Growth Allocation Fund 169 N/A N/A 169 Moderate Allocation Fund 113 N/A N/A 113 Other 150 N/A N/A 150 Liabilities: EURO Foreign Exchange Contract N/A $ 55 N/A $ 55 |
Schedule of Assets Measured at Fair Value on a Nonrecurring Basis | At April 28, 2019, we had no assets that were required to be measured at fair value on a nonrecurring basis other than the assets acquired from eLuxury (see note 2) that were acquired at fair value: Fair value measurements at April 28, 2019 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: Goodwill N/A N/A $ 13,653 $ 13,653 Tradename N/A N/A 6,549 6,549 Equipment N/A N/A 2,179 2,179 Inventory N/A N/A 1,804 1,804 Liabilities: Contingent Consideration – Earn-Out Obligation N/A N/A $ 5,856 $ 5,856 At April 29, 2018, we had no assets that were required to be measured at fair value on a nonrecurring basis other than the assets acquired from Read (see note 2) that were acquired at fair value: Fair value measurements at April 29, 2018 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: Customer Relationships N/A N/A $ 2,247 $ 2,247 Goodwill N/A N/A 2,107 2,107 Inventory N/A N/A 1,128 1,128 Tradename N/A N/A 683 683 Equipment N/A N/A 379 379 Liabilities: None N/A N/A N/A N/A |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Apr. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Value of Derivative Instruments | ASC Topic 815 requires disclosure of gains and losses on derivative instruments in the following tabular format. (Amounts in Thousands) Fair Values of Derivative Instruments April 28, 2019 April 29, 2018 Derivatives designated as hedging instruments under ASC Topic 815 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Euro Foreign Exchange Contract N/A $ — Accrued Expense $ 55 |
Schedule of Gains and Losses on Derivative Instruments | Derivatives in ASC Topic 815 Net Investment Hedging Relationships Amt of Gain (Loss) (net of tax) Recognized in OCI on Derivative (Effective Portion) and recorded in Accrued Expenses at Fair Value Location of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) Location of Gain or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) Amount of Gain (loss) (net of tax) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) 2019 2018 2017 2019 2018 2017 2019 2018 2017 EURO Foreign Exchange Contract $ 55 $ (55 ) $ — Other Exp $ (64 ) $ — $ — $ — $ — $ — |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Apr. 28, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Weighted Average Shares Used in the Computation of Basic and Diluted Net (Loss) Income Per Share | Weighted average shares used in the computation of basic and diluted net income per share are as follows: (in thousands) 2019 2018 2017 weighted-average common shares outstanding, basic 12,462 12,431 12,312 dilutive effect of stock-based compensation 86 202 206 weighted-average common shares outstanding, diluted 12,548 12,633 12,518 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Apr. 28, 2019 | |
Segment Reporting [Abstract] | |
Summary of Segment Information by Geographic Area | International sales accounted for 24%, 23%, and 22% of net sales during fiscal 2019, 2018, and 2017, respectively, and are summarized by geographic area as follows: (dollars in thousands) 2019 2018 2017 north america (excluding USA) (1) $ 29,247 27,844 29,995 far east and asia (2) 39,277 40,671 34,695 all other areas 3,712 5,681 3,618 $ 72,236 74,196 68,308 (1) Of this amount, $22.5 million, $21.9 million, and $22.3 million are attributable to shipments to Mexico in fiscal 2019, 2018, and 2017, respectively. (2) Of this amount $29.8 million, $32.6 million, and $26.6 million are attributable to shipments to China in fiscal 2019, 2018, and 2017, respectively. |
Schedule of Operating Segments Information | Statements of operations for the company’s operating segments are as follows: (dollars in thousands) 2019 2018 2017 net sales: upholstery fabrics $ 135,654 131,128 118,739 mattress fabrics 145,059 192,597 190,805 home accessories 15,956 — — $ 296,669 323,725 309,544 gross profit: upholstery fabrics $ 25,374 25,836 26,170 mattress fabrics 22,904 38,797 43,065 home accessories 4,428 — — total segment gross profit 52,706 64,633 69,235 other non-recurring charges (1) (159 ) — — restructuring related charges (2) (2,349 ) — — total gross profit $ 50,198 64,633 69,235 selling, general, and administrative expenses: upholstery fabrics $ 14,551 14,881 15,079 mattress fabrics 11,296 12,935 13,685 home accessories 5,163 — — unallocated corporate 6,837 9,356 10,393 total segment selling, general, and administrative expenses 37,847 37,172 39,157 other non-recurring charges (3) 518 — — restructuring related charges (4) 40 — — total selling, general, and administrative expenses $ 38,405 37,172 39,157 Income (loss) from operations: upholstery fabrics $ 10,823 10,956 11,091 mattress fabrics 11,608 25,861 29,380 home accessories (735 ) — — unallocated corporate expenses (6,837 ) (9,356 ) (10,393 ) total segment income from operations 14,859 27,461 30,078 other non-recurring charges (1) (3) (678 ) — — restructuring credit and related charges (5) (6) (1,563 ) — — total income from operations 12,618 27,461 30,078 interest expense (42 ) (94 ) — interest income 766 534 299 other expense (1,346 ) (1,018 ) (681 ) income before income taxes $ 11,996 26,883 29,696 (1) The $159 represents employee termination benefits and other operational reorganization costs associated with our mattress fabrics segment. (2) The $2.3 million represents a restructuring related charge of $1.6 million for inventory markdowns and $784 for other operating costs associated with our closed Anderson, SC upholstery fabrics plant facility. (3) The $518 represents a non-recurring charge of $429 for the accelerated vesting of certain stock-based compensation agreements associated with a key executive and was recorded in unallocated corporate expenses. Additionally, the $518 includes $89 for employee termination benefits and operational reorganizational costs associated with our mattress fabrics segment. (4) The $40 represents a restructuring related charge for the accelerated vesting for certain stock-based compensation agreements associated with an employee that was located at our closed Anderson, SC upholstery fabrics plant facility. (5) The $1.6 million represent charges and credits that were associated our closed Anderson, SC upholstery fabrics plant facility and include $1.6 million for inventory markdowns, $784 for other operating costs, $661 for employee termination benefits, and $40 for the accelerated vesting of certain stock-based compensation agreements associated an employee, partially offset by a $1.5 million gain on the sale of property, plant, and equipment. (6) Of this total net charge, a charge of $2.3 million, a charge of $40, and a credit of $825 were recorded in cost of sales, selling, general, and administrative expenses, and restructuring credit, respectively, in the fiscal 2019 Consolidated Statement of Net Income. Balance sheet information for the company’s operating segments follow: (dollars in thousands) April 28 2019 April 29, 2018 segment assets mattress fabrics accounts receivable $ 12,098 15,195 inventory 24,649 28,740 property, plant, and equipment 44,266 (1) 48,797 (2) investment in unconsolidated joint venture 1,508 1,501 total mattress fabrics assets 82,521 94,233 upholstery fabrics accounts receivable 11,274 11,112 inventory 22,915 24,714 property, plant, and equipment 1,795 (3) 2,445 (4) total upholstery fabrics assets 35,984 38,271 home accessories accounts receivable 379 — inventory 3,296 — property, plant, and equipment 1,910 (5) — total home accessories assets 5,585 — total segment assets 124,090 132,504 non-segment assets cash and cash equivalents 40,008 21,228 short-term investments – available for sale — 2,451 short-term investments – held-to-maturity 5,001 25,759 current income taxes receivable 776 — deferred income taxes 457 1,458 other current assets 2,849 2,870 property, plant, and equipment (6) 418 552 goodwill 27,222 13,569 intangible assets 10,448 4,275 long-term investments - held-to-maturity — 5,035 long-term investments - rabbi trust 7,081 7,326 noncurrent income taxes receivable 733 other assets 643 957 total assets $ 219,726 217,984 (dollars in thousands) 2019 2018 2017 capital expenditures (7): mattress fabrics $ 2,526 6,713 17,689 upholstery fabrics 382 488 822 home accessories 53 — — unallocated corporate 14 238 260 $ 2,975 7,439 18,771 depreciation expense mattress fabrics $ 7,008 6,850 6,245 upholstery fabrics 787 822 840 home accessories 322 — — total segment depreciation expense $ 8,117 7,672 7,085 (1) The $44.3 million at April 28, 2019, represents property, plant, and equipment located in the U.S. of $32.4 million and located in Canada of $11.9 million. (2) The $48.8 million at April 29, 2018, represents property, plant, and equipment located in the U.S. of $35.4 million and located in Canada of $13.4 million. (3) The $1.8 million at April 28, 2019, represents property, plant, and equipment located in the U.S. of $1.2 million and located in China of $591. (4) The $2.4 million at April 29, 2018, represents property, plant, and equipment located in the U.S. of $1.8 million and located in China of $661. (5) The $1.9 million at April 28, 2019, represents property, plant, and equipment located in the U.S. (6) The $418 and $552 at April 28, 2019, and April 29, 2018, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress fabrics, upholstery fabrics, and home accessories segments located in the U.S. (7) Capital expenditure amounts are stated on an accrual basis. See the Consolidated Statement of Cash Flows for capital expenditure amounts on a cash basis. |
SELECTED QUARTERLY DATA (UNAU_2
SELECTED QUARTERLY DATA (UNAUDITED) (Tables) | 12 Months Ended |
Apr. 28, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Selected Quarterly Data | (amounts in thousands except per share, ratios & other, stock data) fiscal 2019 4th quarter fiscal 2019 3rd quarter fiscal 2019 2nd quarter fiscal 2019 1st quarter fiscal 2018 4th quarter fiscal 2018 3rd quarter fiscal 2018 2nd quarter fiscal 2018 1st quarter INCOME STATEMENT DATA net sales $ 70,963 77,226 77,006 71,473 78,184 85,310 80,698 79,533 cost of sales 58,774 63,103 63,680 60,914 63,424 67,707 64,894 63,068 gross profit 12,189 14,123 13,326 10,559 14,760 17,603 15,804 16,465 selling, general and administrative expenses 10,230 10,038 10,103 8,033 8,296 9,959 9,415 9,501 restructuring (credit) expense — (214 ) (1,061 ) 451 — — — — income from operations 1,959 4,299 4,284 2,075 6,464 7,644 6,389 6,964 interest expense 4 — 18 20 26 31 37 — interest income (214 ) (251 ) (151 ) (150 ) (143 ) (132 ) (128 ) (131 ) other expense 658 288 142 257 115 229 321 353 income before income taxes 1,511 4,262 4,275 1,948 6,466 7,516 6,159 6,742 income taxes 3,017 1,225 1,276 906 (6,217 ) 8,208 2,108 1,640 loss (income) from investment in unconsolidated joint venture 5 (23 ) 55 77 17 56 75 118 net (loss) income (1,511 ) 3,060 2,944 965 12,666 (748 ) 3,976 4,984 net loss (income) attributable to non-controlling interest 143 94 (11 ) (8 ) — — — — net (loss) income attributable to Culp Inc. common shareholders $ (1,368 ) 3,154 2,933 957 12,666 (748 ) 3,976 4,984 depreciation $ 2,030 2,031 2,041 2,015 1,992 1,966 1,905 1,807 weighted average shares outstanding 12,384 12,438 12,515 12,510 12,450 12,436 12,440 12,399 weighted average shares outstanding, assuming dilution 12,384 12,465 12,551 12,600 12,611 12,436 12,580 12,590 PER SHARE DATA net (loss) income attributable to Culp Inc. common shareholders - basic $ (0.11 ) 0.25 0.23 0.08 1.02 (0.06 ) 0.32 0.40 net (loss) income attributable to Culp Inc. common shareholders - diluted (0.11 ) 0.25 0.23 0.08 1.00 (0.06 ) 0.32 0.40 dividends per share 0.10 0.10 0.09 0.09 0.09 0.09 0.08 0.29 book value 12.91 13.16 13.04 12.90 13.12 12.22 12.31 12.03 BALANCE SHEET DATA operating working capital (3) $ 49,757 52,573 50,193 51,648 49,939 47,760 46,620 42,608 property, plant and equipment, net 48,389 50,129 51,325 53,178 51,794 51,838 52,530 52,912 total assets 219,726 224,908 222,211 226,372 217,984 216,844 201,043 207,904 capital expenditures 295 835 590 1,255 1,568 1,274 1,529 3,068 dividends paid 1,239 1,240 1,126 1,127 1,121 1,119 995 3,608 subordinated loan payable and line of credit (1) 675 — — 4,000 — — — 5,000 shareholders’ equity attributable to Culp Inc. 159,933 162,775 162,918 161,490 163,376 152,182 153,080 149,677 capital employed (2) 125,311 130,155 129,853 134,095 114,817 109,165 109,373 108,222 RATIOS & OTHER DATA gross profit margin 17.2 % 18.3 % 17.3 % 14.8 % 18.9 % 20.6 % 19.6 % 20.7 % operating income margin 2.8 5.6 5.6 2.9 8.3 9.0 7.9 8.8 net (loss) income margin (2.1 ) 4.0 3.8 1.4 16.2 (0.9 ) 4.9 6.3 effective income tax rate 199.7 28.7 29.8 46.5 (96.1 ) 109.2 34.2 24.3 Debt-to-total capital employed ratio (1) (2) 0.5 0.0 0.0 3.0 0.0 0.0 0.0 4.6 operating working capital turnover (3) 5.8 6.0 6.3 6.6 7.1 7.4 7.4 7.4 days sales in receivables 30 30 28 29 30 28 27 25 inventory turnover 4.6 4.6 5.0 4.5 4.8 5.2 5.2 4.7 STOCK DATA stock price high $ 21.06 23.84 27.78 32.05 32.29 34.05 33.25 34.00 low 17.05 18.06 21.04 23.90 27.40 26.15 27.00 30.60 close 20.74 18.47 22.31 24.75 30.10 31.35 31.95 30.65 daily average trading volume (shares) 35.6 43.3 29.8 27.0 18.3 17.4 24.4 27.9 (1) Debt represents outstanding borrowings on our long-term subordinated loan payable and lines of credit. (2) Capital employed does not include cash and cash equivalents, short-term investments (available-for-sale), short-term investments (held-to-maturity), long-term investments (held-to-maturity), long-term investments (rabbi trust), lines of credit, subordinated loan payable, noncurrent deferred tax assets and liabilities, income taxes receivable and payable, and deferred compensation. (3) Operating working capital for this calculation is accounts receivable and inventories, offset by accounts payable-trade, accounts payable - capital expenditures, and deferred revenue. |
General and Summary of Signif_4
General and Summary of Significant Accounting Policies (Detail) | Jun. 22, 2018 | Apr. 28, 2019USD ($) | Jan. 27, 2019USD ($) | Oct. 28, 2018USD ($) | Jul. 29, 2018USD ($) | Apr. 29, 2018USD ($) | Jan. 28, 2018USD ($) | Oct. 29, 2017USD ($) | Jul. 30, 2017USD ($) | Apr. 28, 2019USD ($)Segment | Apr. 29, 2018USD ($)Segment | Apr. 30, 2017USD ($) | Apr. 29, 2019USD ($) |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Number of Operating Segments | Segment | 3 | 2 | |||||||||||
Short-term Investments | $ 0 | $ 2,451,000 | $ 0 | $ 2,451,000 | |||||||||
Long-term investments (Rabbi Trust) | 7,081,000 | 7,326,000 | 7,081,000 | 7,326,000 | |||||||||
Amortized cost of held-to-maturity investments | 5,000,000 | 30,800,000 | 5,000,000 | 30,800,000 | |||||||||
Fair value of held-to-maturity investments | 5,000,000 | 30,600,000 | $ 5,000,000 | 30,600,000 | |||||||||
Inventory aging categories | inventory aging categories are six, nine, twelve, and fifteen months | ||||||||||||
Interest costs incurred on long-term debt and lines of credit | $ 42,000 | 194,000 | $ 158,000 | ||||||||||
Interest cost capitalized | 100,000 | 158,000 | |||||||||||
Handling costs | $ 58,774,000 | $ 63,103,000 | $ 63,680,000 | $ 60,914,000 | 63,424,000 | $ 67,707,000 | $ 64,894,000 | $ 63,068,000 | $ 246,471,000 | 259,092,000 | 240,309,000 | ||
Dividends received deduction percentage for earnings and profits received from foreign corporation | 100.00% | ||||||||||||
Dividends received deduction, foreign corporation ownership percentage | 10.00% | ||||||||||||
Advertising Expense | $ 2,200,000 | 0 | 0 | ||||||||||
Lease liability | $ 7,200,000 | ||||||||||||
Right-of-use assets | $ 7,200,000 | ||||||||||||
Shipping and Handling [Member] | |||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Handling costs | $ 4,200,000 | 4,600,000 | $ 4,600,000 | ||||||||||
eLuxury [Member] | |||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Majority ownership percentage acquired | 80.00% | ||||||||||||
Noncontrolling interest | 20.00% | ||||||||||||
eLuxury [Member] | Shareholders' equity attributable to Culp Inc. | |||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Net income (loss) allocation percentage | 70.00% | ||||||||||||
eLuxury [Member] | Noncontrolling Interest [Member] | |||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Net income (loss) allocation percentage | 30.00% | ||||||||||||
CLIH [Member] | |||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | |||||||||||
Maximum [Member] | Investments (Held-To-Maturity) [Member] | |||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Investment maturity period | 2 years 6 months | ||||||||||||
Minimum [Member] | Investments (Held-To-Maturity) [Member] | |||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Investment maturity period | 2 years | ||||||||||||
Short-term Investments [Member] | |||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Unrealized gain (loss) on investments | (91,000) | (91,000) | |||||||||||
Long-term investments (Rabbi Trust) [Member] | |||||||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Unrealized gain (loss) on investments | $ 40,000 | $ 61,000 | $ 40,000 | $ 61,000 |
Summary of Cash and Cash Equiva
Summary of Cash and Cash Equivalents by Geographic Area (Detail) - USD ($) $ in Thousands | Apr. 28, 2019 | Apr. 29, 2018 |
cash and cash equivalents | $ 40,008 | $ 21,228 |
United States [Member] | ||
cash and cash equivalents | 28,078 | 9,452 |
China [Member] | ||
cash and cash equivalents | 9,670 | 9,221 |
Canada [Member] | ||
cash and cash equivalents | 2,196 | 2,349 |
Cayman Islands [Member] | ||
cash and cash equivalents | $ 64 | $ 206 |
Summary of Short-Term Investmen
Summary of Short-Term Investments by Geographic Area (Detail) - USD ($) $ in Thousands | Apr. 28, 2019 | Apr. 29, 2018 |
Schedule of Investments [Line Items] | ||
Short-term investments | $ 0 | $ 2,451 |
Canada [Member] | ||
Schedule of Investments [Line Items] | ||
Short-term investments | 0 | 1,366 |
United States [Member] | ||
Schedule of Investments [Line Items] | ||
Short-term investments | $ 0 | $ 1,085 |
Summary of Foreign Currency Exc
Summary of Foreign Currency Exchange Gains (Losses) by Geographic Area (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Foreign Currency Exchange Gain And Loss [Line Items] | |||
Foreign currency exchange gains (losses) | $ (62) | $ (306) | $ (9) |
China [Member] | |||
Foreign Currency Exchange Gain And Loss [Line Items] | |||
Foreign currency exchange gains (losses) | (298) | 111 | |
Canada [Member] | |||
Foreign Currency Exchange Gain And Loss [Line Items] | |||
Foreign currency exchange gains (losses) | 2 | (8) | (120) |
Europe [Member] | |||
Foreign Currency Exchange Gain And Loss [Line Items] | |||
Foreign currency exchange gains (losses) | $ (64) |
Business Combinations (Detail)
Business Combinations (Detail) - USD ($) | Jun. 22, 2018 | Apr. 01, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | Aug. 31, 2018 | May 31, 2018 | Apr. 28, 2019 | Jan. 27, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 28, 2019 | Apr. 29, 2018 |
Business Acquisition [Line Items] | ||||||||||||
Contingent consideration-earn-out obligation | $ 5,856,000 | $ 5,856,000 | ||||||||||
Carrying amount of non-controlling interest | 4,314,000 | 4,314,000 | ||||||||||
net loss (income) attributable to non-controlling interest | 143,000 | $ 94,000 | $ (11,000) | $ (8,000) | 218,000 | |||||||
Net income (loss) | $ (726,000) | |||||||||||
Read Window Products, LLC [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase price | $ 5,700,000 | |||||||||||
Payment for acquisition | 4,500,000 | $ 375,000 | ||||||||||
Goodwill, statutory period deductible for income tax purposes | 15 years | |||||||||||
Contingent consideration arrangement, description | The Asset Agreement contains a contingent consideration arrangement that requires us to pay a former shareholder of Read an earn-out payment based on adjusted EBITDA, as defined in the Asset Agreement, for calendar year 2018 in excess of fifty percent of a pre-established adjusted EBITDA. | |||||||||||
Contingent consideration arrangement, basis for amount | based on actual financial results in relation to the pre-established adjusted EBITDA target, a contingent payment is not required under the terms of the agreement, and therefore, no contingent liability has been recorded. | |||||||||||
Revenue | 880,000 | |||||||||||
Net income (loss) | $ 5,000 | |||||||||||
eLuxury [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Purchase price | $ 12,500,000 | |||||||||||
Payment for acquisition | $ 11,600,000 | $ 185,000 | ||||||||||
Contingent consideration arrangement, description | the Equity Agreement contains a contingent consideration arrangement that requires us to pay the seller, who is also the owner of the noncontrolling interest, an earn-out payment based on a multiple of adjusted EBITDA, as defined in the Equity Agreement, for the twelve-month period ending August 31, 2021, less $12.0 million. | |||||||||||
Contingent consideration arrangement, basis for amount | We recorded a contingent liability at the acquisition date for this earn-out obligation at its fair value totaling $5.6 million based on the Black Scholes pricing model. | |||||||||||
Majority ownership percentage acquired | 80.00% | |||||||||||
Consideration for acquisition | $ 18,130,000 | |||||||||||
Contingent consideration-earn-out obligation | $ 5,600,000 | |||||||||||
Carrying amount of non-controlling interest | $ 4,500,000 | $ 4,500,000 | ||||||||||
Revenue | 16,000,000 | |||||||||||
Selling, General and Administrative Expenses [Member] | Read Window Products, LLC [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business acquisition costs | $ 339,000 | |||||||||||
Selling, General and Administrative Expenses [Member] | eLuxury [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business acquisition costs | $ 270,000 | |||||||||||
Customer Relationships [Member] | Read Window Products, LLC [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite-lived intangible assets, useful life | 9 years | |||||||||||
Minimum [Member] | Equipment [Member] | Read Window Products, LLC [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Property, plant and equipment, useful life | 3 years | |||||||||||
Maximum [Member] | Equipment [Member] | Read Window Products, LLC [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Property, plant and equipment, useful life | 10 years | |||||||||||
eLuxury [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Noncontrolling interest | 20.00% | |||||||||||
net loss (income) attributable to non-controlling interest | $ (218,000) | |||||||||||
eLuxury [Member] | Minimum [Member] | Equipment [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Property, plant and equipment, useful life | 5 years | |||||||||||
eLuxury [Member] | Maximum [Member] | Equipment [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Property, plant and equipment, useful life | 10 years | |||||||||||
Shareholders' equity attributable to Culp Inc. | eLuxury [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Net income (loss) allocation percentage | 70.00% | |||||||||||
Non-Controlling Interest | eLuxury [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Net income (loss) allocation percentage | 30.00% | |||||||||||
Scenario, Forecast [Member] | Read Window Products, LLC [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Payment for acquisition | $ 763,000 | |||||||||||
Scenario, Forecast [Member] | eLuxury [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Payment for acquisition | $ 749,000 |
Business Combinations - Schedul
Business Combinations - Schedule of Allocation of Acquisition Cost to Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Apr. 28, 2019 | Jun. 22, 2018 | Apr. 29, 2018 | Apr. 01, 2018 | Apr. 30, 2017 | May 01, 2016 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 27,222 | $ 13,569 | $ 11,462 | $ 11,462 | ||
Read Window Products, LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 2,107 | |||||
Inventory | 1,128 | |||||
Accounts receivable | 897 | |||||
Property, plant & equipment | 379 | |||||
Other assets | 35 | |||||
Deferred revenue | (903) | |||||
Accounts payable | (719) | |||||
Accrued expenses | (174) | |||||
Assets acquired and liabilities assumed, net | 5,680 | |||||
Read Window Products, LLC [Member] | Trade Names [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Tradename | 683 | |||||
Read Window Products, LLC [Member] | Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Customer relationships | $ 2,247 | |||||
eLuxury [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 13,653 | |||||
Inventory | 1,804 | |||||
Accounts receivable and other current assets | 108 | |||||
Accounts payable | (1,336) | |||||
Accrued expenses | (295) | |||||
Non-controlling interest in eLuxury | (4,532) | |||||
Assets acquired and liabilities assumed, net | 18,130 | |||||
eLuxury [Member] | Equipment [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Property, plant & equipment | 2,179 | |||||
eLuxury [Member] | Trade Names [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Tradename | $ 6,549 |
Business Combinations - Sched_2
Business Combinations - Schedule of Unaudited Pro Forma Consolidated Results of Operations (Detail) - Read Window Products, LLC and eLuxury [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Business Acquisition [Line Items] | |||
Net Sales | $ 299,599 | $ 354,509 | $ 321,398 |
Income from operations | 12,616 | 26,948 | 30,441 |
Net income | 5,432 | 20,299 | 22,552 |
Net loss - noncontrolling interest | (226) | (48) | 0 |
Net income – Culp Inc. common shareholders | $ 5,658 | $ 20,347 | $ 22,552 |
Net income per share (basic) – Culp Inc. common shareholders | $ 0.45 | $ 1.64 | $ 1.83 |
Net income per share (diluted) – Culp Inc. common shareholders | $ 0.45 | $ 1.61 | $ 1.80 |
Accounts Receivable (Detail)
Accounts Receivable (Detail) - USD ($) $ in Thousands | Apr. 28, 2019 | Apr. 30, 2018 | Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
customers | $ 24,370 | $ 28,097 | ||||
Accounts receivable, net | 23,751 | $ 27,452 | 26,307 | |||
allowance for doubtful accounts [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Valuation allowance, balance | (393) | (357) | $ (414) | $ (1,088) | ||
allowance for cash discounts [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Valuation allowance, balance | (186) | (245) | ||||
Allowance for sales returns and allowances [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Valuation allowance, balance | [1] | $ (40) | $ (1,188) | |||
[1] | Due to the adoption of ASC Topic 606, Revenue from Contracts with Customers, certain balance sheet reclassifications were required regarding our allowance for sales returns and allowances for the current year’s presentation only. See Note 4 to the consolidated financial statements for required balance sheet disclosures associated with the adoption of ASC Topic 606. |
Accounts Receivable - Allowance
Accounts Receivable - Allowance for Doubtful Accounts (Detail) - Allowance for doubtful accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning balance | $ (357) | $ (414) | $ (1,088) |
Provision for bad debts | (84) | 57 | 222 |
Net write-offs, net of recoveries | 48 | 452 | |
Ending balance | $ (393) | $ (357) | $ (414) |
Accounts Receivable - Allowan_2
Accounts Receivable - Allowance for Returns and Allowances and Discounts (Detail) - Reserve for returns and allowances and discounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning balance | $ (1,433) | $ (1,220) | $ (962) |
provision for returns and allowances and discounts | (2,180) | (3,295) | (3,061) |
credits issued | 2,242 | 3,082 | 2,803 |
Ending balance | (226) | $ (1,433) | $ (1,220) |
Adjustments Due to ASC 606 Adoption [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Adoption of ASC Topic 606 | $ 1,145 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Effect of adopting ASC 606 (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Apr. 28, 2019 | Jan. 27, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | ||
Assets: | |||||||||||||
Accounts Receivable | $ 23,751 | $ 26,307 | $ 23,751 | $ 26,307 | $ 27,452 | ||||||||
Other current assets | 2,849 | 2,870 | 2,849 | 2,870 | 2,897 | ||||||||
Liabilities: | |||||||||||||
Accrued expenses | 9,192 | 9,325 | 9,192 | 9,325 | 10,497 | ||||||||
Statements of Net Income | |||||||||||||
Net Sales | 70,963 | $ 77,226 | $ 77,006 | $ 71,473 | 78,184 | $ 85,310 | $ 80,698 | $ 79,533 | 296,669 | 323,725 | $ 309,544 | ||
Cost of sales | 58,774 | $ 63,103 | $ 63,680 | $ 60,914 | $ 63,424 | $ 67,707 | $ 64,894 | $ 63,068 | 246,471 | $ 259,092 | $ 240,309 | ||
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||||||||||
Assets: | |||||||||||||
Accounts Receivable | 22,897 | 22,897 | |||||||||||
Other current assets | 2,821 | 2,821 | |||||||||||
Liabilities: | |||||||||||||
Accrued expenses | 8,310 | 8,310 | |||||||||||
Statements of Net Income | |||||||||||||
Net Sales | 296,641 | ||||||||||||
Cost of sales | 246,443 | ||||||||||||
Accounting Standards Update 2014-09 [Member] | Adjustments Due to ASC 606 Adoption [Member] | |||||||||||||
Assets: | |||||||||||||
Accounts Receivable | (854) | (854) | 1,145 | [1] | |||||||||
Other current assets | (28) | (28) | 27 | [1] | |||||||||
Liabilities: | |||||||||||||
Accrued expenses | $ (882) | (882) | $ 1,172 | [1] | |||||||||
Statements of Net Income | |||||||||||||
Net Sales | (28) | ||||||||||||
Cost of sales | $ (28) | ||||||||||||
[1] | The adjustments associated with the adoption of the new standard are related to classifying allowances for estimated sales returns as a liability rather than as a contra account to accounts receivable on the consolidated balance sheet for the current year’s presentation only. As required under the new standard, we also recorded the estimated allowance for sales returns on a gross basis rather than a net basis by separately reflecting a return goods asset within other current assets rather than netting such amounts with the estimated sales returns liability. |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Narrative (Detail) | 12 Months Ended |
Apr. 28, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | |
Contract assets recognized | $ 0 |
Home Accessories [Member] | |
Disaggregation of Revenue [Line Items] | |
Sales return period | 30 days |
Minimum [Member] | |
Disaggregation of Revenue [Line Items] | |
Contract with customers credit period | 15 days |
Maximum [Member] | |
Disaggregation of Revenue [Line Items] | |
Contract with customers credit period | 45 days |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Summary of the activity for deferred revenue (Detail) $ in Thousands | 12 Months Ended |
Apr. 28, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Beginning balance | $ 809 |
Revenue recognized on contract liabilities during the period | (2,725) |
Payments received for services not yet rendered during the period | 2,315 |
Ending balance | $ 399 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Disaggregation of Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 28, 2019 | Jan. 27, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net Sales | $ 70,963 | $ 77,226 | $ 77,006 | $ 71,473 | $ 78,184 | $ 85,310 | $ 80,698 | $ 79,533 | $ 296,669 | $ 323,725 | $ 309,544 |
Transferred at Point in Time [Member] | Product [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net Sales | 286,309 | ||||||||||
Transferred over Time [Member] | Services [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net Sales | 10,360 | ||||||||||
Mattress Fabrics [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net Sales | 145,059 | 192,597 | 190,805 | ||||||||
Mattress Fabrics [Member] | Transferred at Point in Time [Member] | Product [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net Sales | 145,059 | ||||||||||
Mattress Fabrics [Member] | Transferred over Time [Member] | Services [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net Sales | 0 | ||||||||||
Upholstery Fabrics [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net Sales | 135,654 | $ 131,128 | $ 118,739 | ||||||||
Upholstery Fabrics [Member] | Transferred at Point in Time [Member] | Product [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net Sales | 125,294 | ||||||||||
Upholstery Fabrics [Member] | Transferred over Time [Member] | Services [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net Sales | 10,360 | ||||||||||
Home Accessories [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net Sales | 15,956 | ||||||||||
Home Accessories [Member] | Transferred at Point in Time [Member] | Product [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net Sales | 15,956 | ||||||||||
Home Accessories [Member] | Transferred over Time [Member] | Services [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total Net Sales | $ 0 |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Apr. 28, 2019 | Apr. 29, 2018 |
Inventory Disclosure [Abstract] | ||
raw materials | $ 5,617 | $ 6,024 |
work-in-process | 2,289 | 3,264 |
finished goods | 42,954 | 44,166 |
Inventories | $ 50,860 | $ 53,454 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||||
Apr. 28, 2019 | Jan. 27, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | |
Property, Plant and Equipment [Line Items] | ||||||||
land and improvements | $ 838 | $ 963 | ||||||
buildings and improvements | 30,712 | 31,022 | ||||||
leasehold improvements | 2,180 | 1,993 | ||||||
machinery and equipment | 72,641 | 72,924 | ||||||
office furniture and equipment | 9,834 | 9,514 | ||||||
capital projects in progress | 1,263 | 2,086 | ||||||
property, plant and equipment, gross | 117,468 | 118,502 | ||||||
accumulated depreciation | (69,079) | (66,708) | ||||||
property, plant and equipment, net | $ 48,389 | $ 50,129 | $ 51,325 | $ 53,178 | $ 51,794 | $ 51,838 | $ 52,530 | $ 52,912 |
Land and Land Improvements [Member] | Maximum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
depreciable lives | 10 years | |||||||
Land and Land Improvements [Member] | Minimum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
depreciable lives | 0 years | |||||||
Building and Building Improvements [Member] | Maximum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
depreciable lives | 40 years | |||||||
Building and Building Improvements [Member] | Minimum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
depreciable lives | 7 years | |||||||
Leasehold Improvements [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
depreciable lives | Shorter of life of lease or useful life. | |||||||
Machinery and Equipment [Member] | Maximum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
depreciable lives | 12 years | |||||||
Machinery and Equipment [Member] | Minimum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
depreciable lives | 3 years | |||||||
office furniture and equipment [Member] | Maximum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
depreciable lives | 10 years | |||||||
office furniture and equipment [Member] | Minimum [Member] | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
depreciable lives | 3 years |
Intangible Asset - Summary of I
Intangible Asset - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 |
Intangible Assets [Line Items] | ||||
Tradenames | $ 7,232 | $ 683 | ||
Intangible assets | 10,448 | 4,275 | ||
Customer Relationships [Member] | ||||
Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, net | 2,538 | 2,839 | $ 664 | $ 715 |
Non-Compete Agreement [Member] | ||||
Intangible Assets [Line Items] | ||||
Finite-lived intangible assets, net | $ 678 | $ 753 | $ 828 | $ 903 |
Intangible Asset - Tradenames (
Intangible Asset - Tradenames (Detail) - USD ($) $ in Thousands | Apr. 28, 2019 | Apr. 29, 2018 |
Indefinite-lived Intangible Assets [Line Items] | ||
Tradenames | $ 7,232 | $ 683 |
Read Window Products, LLC [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Tradenames | 683 | $ 683 |
eLuxury [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Tradenames | $ 6,549 |
Intangible Assets - Summary of
Intangible Assets - Summary of Change in Carrying Amount of Finite-Lived Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Beginning balance | $ 2,839 | $ 664 | $ 715 |
acquisition of assets (note 2) | 2,247 | ||
Amortization expense | (301) | (72) | (51) |
Ending balance | 2,538 | 2,839 | 664 |
Non-Compete Agreement [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Beginning balance | 753 | 828 | 903 |
Amortization expense | (75) | (75) | (75) |
Ending balance | $ 678 | $ 753 | $ 828 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Detail) - USD ($) | 12 Months Ended | ||||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 01, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Intangible Assets [Line Items] | |||||
Gross carrying amount of customer relationships | $ 3,100,000 | $ 3,100,000 | |||
Gross carrying amount of non-compete agreement | 2,000,000 | 2,000,000 | |||
Customer Relationships [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, net | 2,538,000 | 2,839,000 | $ 664,000 | $ 715,000 | |
Accumulated amortization | 577,000 | 276,000 | |||
Remaining amortization expense for the fiscal year | 301,000 | ||||
Remaining amortization expense for the second fiscal year | 301,000 | ||||
Remaining amortization expense for the third fiscal year | 301,000 | ||||
Remaining amortization expense for the fourth fiscal year | 301,000 | ||||
Remaining amortization expense for the fifth fiscal year | 301,000 | ||||
Remaining amortization expense for the fiscal year thereafter | $ 1,033,000 | ||||
Weighted average remaining amortization period | 8 years 7 months 6 days | ||||
Customer Relationships [Member] | Read Window Products, LLC [Member] | |||||
Intangible Assets [Line Items] | |||||
Fair market value of customer relationship | $ 2,247,000 | ||||
Customer Relationships [Member] | Prior Acquisition [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, net | $ 562,000 | ||||
Non-Compete Agreement [Member] | |||||
Intangible Assets [Line Items] | |||||
Finite-lived intangible assets, net | 678,000 | 753,000 | $ 828,000 | $ 903,000 | |
Accumulated amortization | 1,400,000 | $ 1,300,000 | |||
Remaining amortization expense for the fiscal year | 75,000 | ||||
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 | $ 303,000 | ||||
Weighted average remaining amortization period | 9 years |
Goodwill (Detail)
Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Beginning balance | $ 13,569 | $ 11,462 | $ 11,462 |
acquisition of assets (note 2) | 13,653 | 2,107 | 0 |
Loss on impairment | 0 | 0 | 0 |
ending balance | $ 27,222 | $ 13,569 | $ 11,462 |
Investment in Unconsolidated _3
Investment in Unconsolidated Joint Venture - Narrative (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 28, 2019 | Jan. 27, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||||||||
Income (loss) from investment in unconsolidated joint venture | $ 5 | $ (23) | $ 55 | $ 77 | $ 17 | $ 56 | $ 75 | $ 118 | $ (114) | $ (266) | $ (23) |
Investment in unconsolidated joint venture | $ 1,508 | 1,501 | $ 1,508 | 1,501 | |||||||
CLIH [Member] | |||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | |||||||||
Unconsolidated joint venture, net loss | $ (227) | (532) | $ (46) | ||||||||
Investment in unconsolidated joint venture | $ 1,500 | $ 1,500 | $ 1,500 | $ 1,500 |
Investment in Unconsolidated _4
Investment in Unconsolidated Joint Venture - Summary of Equity Method Investment (Detail) - CLIH [Member] - USD ($) $ in Thousands | Apr. 28, 2019 | Apr. 29, 2018 |
Schedule of Equity Method Investments [Line Items] | ||
Total assets | $ 3,126 | $ 3,130 |
Total liabilities | 111 | 128 |
Total members' equity | $ 3,015 | $ 3,002 |
Accrued Expenses (Detail)
Accrued Expenses (Detail) - USD ($) $ in Thousands | Apr. 28, 2019 | Apr. 29, 2018 |
Payables and Accruals [Abstract] | ||
Compensation, commissions and related benefits | $ 4,229 | $ 6,918 |
Interest | 4 | 20 |
Other | 5,292 | 3,150 |
Accrued expenses | $ 9,525 | $ 10,088 |
Accrued Expenses - Narrative (D
Accrued Expenses - Narrative (Detail) - USD ($) $ in Thousands | Apr. 28, 2019 | Apr. 30, 2018 | Apr. 29, 2018 |
Payables and Accruals [Abstract] | |||
Accrued expenses | $ 9,525 | $ 10,088 | |
Current accrued expenses | 9,192 | $ 10,497 | 9,325 |
Long-term accrued expenses | $ 333 | $ 763 |
Exit and Disposal Activity - Na
Exit and Disposal Activity - Narrative (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jan. 27, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 28, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Description of exit and disposal activities | On June 12, 2018, our board of directors announced the closure of our upholstery fabrics manufacturing facility in Anderson, South Carolina. This closure was completed during the second quarter of fiscal 2019 and was due to a continued decline in demand for the products manufactured at this facility, reflecting a change in consumer style preferences. | |||
Restructuring credit and related charges | $ 1,563 | |||
restructuring (credit) expense | $ (214) | $ (1,061) | $ 451 | |
Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring related charges | 40 | |||
Upholstery Fabrics [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
restructuring (credit) expense | 825 | |||
Upholstery Fabrics [Member] | Cost of Sales [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring related charges | 2,300 | |||
Upholstery Fabrics [Member] | Selling, General and Administrative Expenses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring related charges | $ 40 |
Exit and Disposal Activity - Su
Exit and Disposal Activity - Summary of Restructuring Credit and Related Charges Associated with Exit and Disposal Activity (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jan. 27, 2019 | Apr. 28, 2019 | Apr. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Inventory markdowns | $ 1,564 | ||
Employee termination benefits | 661 | ||
Gain on sale of property, plant, and equipment | (1,452) | $ (131) | |
Restructuring credit and related charges | 1,563 | ||
Upholstery Fabrics [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Other operating costs associated with a closed facility | 824 | ||
Gain on sale of property, plant, and equipment | $ (1,500) | $ (1,486) |
Exit and Disposal Activity - _2
Exit and Disposal Activity - Summary of Activity in Restructuring Accrual (Detail) $ in Thousands | 12 Months Ended |
Apr. 28, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring accrual, ending balance | $ 124 |
Upholstery Fabrics [Member] | Employee Termination Benefits [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Accrual established in fiscal 2019 | 451 |
Paid in fiscal 2019 | (538) |
Adjustments in fiscal 2019 | 211 |
Restructuring accrual, ending balance | $ 124 |
Assets Held for Sale (Detail)
Assets Held for Sale (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Oct. 28, 2018 | Jan. 27, 2019 | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Long Lived Assets Held-for-sale [Line Items] | |||||
Proceeds from the sale of property, plant, and equipment | $ 1,894,000 | $ 6,000 | $ 141,000 | ||
Gain on sale of property, plant, and equipment | 1,452,000 | $ 131,000 | |||
Upholstery Fabrics [Member] | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Property, plant, and equipment classified as held for sale | $ 393,000 | ||||
Impairment of assets held for sale | $ 0 | ||||
Proceeds from the sale of property, plant, and equipment | $ 1,900,000 | ||||
Gain on sale of property, plant, and equipment | $ 1,500,000 | 1,486,000 | |||
Upholstery Fabrics [Member] | Property, Plant and Equipment [Member] | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Assets held for sale | $ 0 |
Lines of credit and subordina_2
Lines of credit and subordinated loan payable - Narrative (Detail) | Aug. 13, 2018USD ($) | Apr. 28, 2019USD ($) | Apr. 29, 2018USD ($) | Apr. 30, 2017USD ($) | Apr. 28, 2019CNY (¥) | Feb. 17, 2019USD ($) | Aug. 12, 2018USD ($) | Aug. 03, 2016USD ($) | Aug. 01, 2016USD ($) |
Line of Credit Facility [Line Items] | |||||||||
Interest paid during the year | $ 54,000 | $ 181,000 | $ 114,000 | ||||||
subordinated loan outstanding amount | 675,000 | ||||||||
Revolving Credit Facility [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
subordinated loan outstanding amount | $ 675,000 | ||||||||
Revolving Credit Facility [Member] | Subordinated Debt [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum borrowing capacity | $ 1,000,000 | ||||||||
Expiration date | Jun. 22, 2023 | ||||||||
Applicable interest rate at end of period | 3.93% | 3.93% | |||||||
subordinated loan commitment initiation date | Feb. 17, 2019 | ||||||||
Revolving Credit Facility [Member] | Third Amendment to Credit Agreement [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum amount of letters of credit | $ 7,500,000 | ||||||||
United States [Member] | Revolving Credit Facility [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum borrowing capacity | $ 25,000,000 | 30,000,000 | $ 30,000,000 | ||||||
Unencumbered Liquid Assets maintenance covenant | 15,000,000 | $ 20,000,000 | |||||||
Maximum amount of letters of credit | 1,000,000 | ||||||||
Letters of credit, outstanding amount | $ 250,000 | $ 250,000 | $ 250,000 | ||||||
Expiration date | Aug. 15, 2020 | ||||||||
Interest rate description | Interest was charged at a rate as a variable spread over LIBOR based on our ratio of debt to EBITDA. | ||||||||
Applicable interest rate at end of period | 3.93% | 3.36% | 3.93% | ||||||
Reference rate on which the interest rate is based | LIBOR | ||||||||
Percentage of common stock in subsidiary pledge as collateral | 65.00% | ||||||||
Outstanding amount | $ 0 | $ 0 | |||||||
United States [Member] | Revolving Credit Facility [Member] | Third Amendment to Credit Agreement [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Letters of credit, outstanding amount | $ 250,000 | ||||||||
Letters of credit outstanding, additional amount | $ 5,000,000 | ||||||||
Letter of credit expiration date | May 15, 2018 | ||||||||
China [Member] | Revolving credit agreement [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum borrowing capacity | $ 5,900,000 | ¥ 40,000,000 | |||||||
Interest rate description | This agreement has an interest rate determined by the Chinese government | ||||||||
Outstanding amount | $ 0 | ¥ 0 |
Income Taxes - Allocation of In
Income Taxes - Allocation of Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 28, 2019 | Jan. 27, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
income from operations | $ 3,017 | $ 1,225 | $ 1,276 | $ 906 | $ (6,217) | $ 8,208 | $ 2,108 | $ 1,640 | $ 6,424 | $ 5,740 | $ 7,339 |
shareholders' equity, related to the tax benefit arising from stock based compensation | (657) | ||||||||||
income tax expense (benefit), including tax effect from exercise of stock options and vesting of other stock-based compensation awards | $ 6,424 | $ 5,740 | $ 6,682 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 28, 2019 | Jan. 27, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | ||
current | ||||||||||||
federal | $ (1,492) | $ (1,367) | $ 109 | |||||||||
state | 27 | 9 | 13 | |||||||||
2017 Tax Cuts and Jobs Act | (282) | 4,854 | ||||||||||
foreign | 6,144 | 4,726 | 5,981 | |||||||||
foreign – reversal of uncertain tax position | (3,431) | |||||||||||
current income tax expense | 4,397 | 8,222 | 2,672 | |||||||||
deferred | ||||||||||||
federal | 3,123 | 4,295 | 404 | |||||||||
state | (96) | 112 | 54 | |||||||||
2017 Tax Cuts and Jobs Act | [1] | (268) | (6,903) | |||||||||
undistributed earnings – foreign subsidiaries | 3,735 | (195) | (101) | |||||||||
U.S. operating loss carryforwards | 74 | 3,630 | ||||||||||
foreign | (85) | 93 | 734 | |||||||||
valuation allowance | [1] | (4,456) | 116 | (54) | ||||||||
deferred income tax expense | 2,027 | (2,482) | 4,667 | |||||||||
income tax expense | $ 3,017 | $ 1,225 | $ 1,276 | $ 906 | $ (6,217) | $ 8,208 | $ 2,108 | $ 1,640 | $ 6,424 | $ 5,740 | $ 7,339 | |
[1] | The income tax benefit of $6,903 recorded during fiscal 2018 included a charge of $4,550 for the establishment of a valuation allowance against U.S. foreign tax credits that were not more-likely-than not to be realized as a result of the 2017 Tax Cuts and Jobs Act. During fiscal 2019, we recorded an income tax charge of $4.5 million for the write-off of certain U.S. foreign tax credits, and in turn, we recorded an income tax benefit of $4.5 million for the reduction in our valuation allowance. The $4.5 million income charge for the write-off of certain U.S. foreign tax credits is included in the undistributed earnings - foreign subsidiaries income tax expense amount of $3.8 million. |
Income Taxes - Income Tax Exp_2
Income Taxes - Income Tax Expense (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | ||
Income Tax Disclosure [Abstract] | ||||
2017 Tax Cuts and Jobs Act income tax benefit | [1] | $ (268) | $ (6,903) | |
establishment of valuation allowance | [2] | 4,550 | ||
income tax benefit | [1] | (4,456) | $ 116 | $ (54) |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 4,500 | |||
Effective Income Tax Rate Reconciliation, Tax Credit, Foreign, Amount | 4,500 | |||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | $ 3,800 | |||
[1] | The income tax benefit of $6,903 recorded during fiscal 2018 included a charge of $4,550 for the establishment of a valuation allowance against U.S. foreign tax credits that were not more-likely-than not to be realized as a result of the 2017 Tax Cuts and Jobs Act. During fiscal 2019, we recorded an income tax charge of $4.5 million for the write-off of certain U.S. foreign tax credits, and in turn, we recorded an income tax benefit of $4.5 million for the reduction in our valuation allowance. The $4.5 million income charge for the write-off of certain U.S. foreign tax credits is included in the undistributed earnings - foreign subsidiaries income tax expense amount of $3.8 million. | |||
[2] | The establishment of this valuation allowance pertains to U.S. foreign tax credits that were not more-likely-than not to be realized as a result of the Tax Act. |
Income Taxes - Income (Loss) be
Income Taxes - Income (Loss) before Income Taxes Related to Foreign and U.S. Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 28, 2019 | Jan. 27, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Income Taxes [Line Items] | |||||||||||
income (loss) before income taxes, foreign | $ 15,667 | $ 17,360 | $ 18,703 | ||||||||
income before income taxes | $ 1,511 | $ 4,262 | $ 4,275 | $ 1,948 | $ 6,466 | $ 7,516 | $ 6,159 | $ 6,742 | 11,996 | 26,883 | 29,696 |
China [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
income (loss) before income taxes, foreign | 9,899 | 11,036 | 13,650 | ||||||||
Canada [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
income (loss) before income taxes, foreign | 5,488 | 5,985 | 4,918 | ||||||||
Poland [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
income (loss) before income taxes, foreign | (19) | ||||||||||
United States [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
income (loss) before income taxes, domestic | (3,671) | 9,523 | 10,993 | ||||||||
Cayman Islands [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
income (loss) before income taxes, foreign | $ 280 | $ 339 | $ 154 |
Income Taxes - Differences Betw
Income Taxes - Differences Between Income Tax Expense at Federal Income Tax Rate and Effective Income Tax Rate (Detail) | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 28, 2019 | Jan. 27, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
federal income tax rate | 21.00% | 30.40% | 34.00% | ||||||||
undistributed earnings from foreign subsidiaries | 37.20% | ||||||||||
valuation allowance | (37.10%) | 0.40% | (0.20%) | ||||||||
global intangible low taxed income tax (GILTI) | 17.90% | ||||||||||
foreign tax rate differential | 13.70% | 3.70% | |||||||||
tax effects of the 2017 Tax Cuts and Jobs Act | (4.60%) | (7.60%) | |||||||||
tax effects of Chinese foreign exchange gains(losses) | 2.30% | (2.80%) | 1.60% | ||||||||
reversal of foreign uncertain income tax position | (11.60%) | ||||||||||
tax effects of stock-based compensation | 0.60% | (1.80%) | |||||||||
other | 2.60% | (0.90%) | 0.90% | ||||||||
Effective income tax rate | 199.70% | 28.70% | 29.80% | 46.50% | (96.10%) | 109.20% | 34.20% | 24.30% | 53.60% | 21.40% | 24.70% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
deferred tax assets: | |||||
accounts receivable | $ 282 | $ 316 | |||
inventories | 1,591 | 2,217 | |||
compensation | 1,973 | 3,438 | |||
liabilities and other | 284 | 117 | |||
foreign income tax credits - U.S. | 1,252 | 5,720 | |||
property, plant and equipment | [1] | 193 | 226 | ||
loss carryforwards – U.S. | 2,360 | 2,513 | |||
loss carryforwards – foreign | 76 | ||||
valuation allowances | (748) | (5,204) | $ (536) | $ (590) | |
total deferred tax assets | 7,187 | 9,419 | |||
deferred tax liabilities: | |||||
undistributed earnings on foreign subsidiaries | (3,523) | (4,256) | |||
unrecognized tax benefits – U.S. | (380) | (380) | |||
property, plant and equipment | [2] | (4,710) | (4,352) | ||
goodwill | (1,203) | (1,046) | |||
other | (90) | (77) | |||
total deferred tax liabilities | (9,906) | (10,111) | |||
net deferred liabilities | $ (2,719) | $ (692) | |||
[1] | Pertains to the company’s operations located in China. | ||||
[2] | Pertains to the company’s operations located in the U.S. and Canada. |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes - Narrative (Detail) $ in Thousands | 12 Months Ended |
Apr. 28, 2019USD ($) | |
Income Taxes [Line Items] | |
U.S. foreign income tax credits, expiration period | 10 years |
Effective Income Tax Rate Reconciliation, Tax Credit, Foreign, Amount | $ 4,500 |
U.S. Federal Tax Authorities [Member] | |
Income Taxes [Line Items] | |
Operating Loss Carryforwards | 6,900 |
Operating loss carryforwards, related future tax benefits | $ 1,600 |
U.S. Federal Tax Authorities [Member] | Earliest Tax Year [Member] | |
Income Taxes [Line Items] | |
Operating Loss Carry forwards Expiration Year | 2028 |
U.S. Federal Tax Authorities [Member] | Latest Tax Year [Member] | |
Income Taxes [Line Items] | |
Operating Loss Carry forwards Expiration Year | 2038 |
State and Local Jurisdiction [Member] | |
Income Taxes [Line Items] | |
Operating Loss Carryforwards | $ 22,200 |
Operating loss carryforwards, related future tax benefits | $ 797 |
Income Taxes - 2017 Tax Cuts an
Income Taxes - 2017 Tax Cuts and Jobs Act - Narrative (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Income Taxes [Line Items] | |||
Federal statutory income tax rate | 21.00% | 30.40% | 34.00% |
Provisional income tax (benefit) expense Transition Tax | $ (282) | $ (4,300) | |
Provisional income tax (benefit) expense for re-measurement of U.S. deferred income taxes | (268) | 2,200 | |
Provisional benefit for release of deferred income tax liabilities related to earnings and profits not permanently reinvested | 18,000 | ||
Provisional benefit for reduction in U.S. Federal income tax rate pursuant to the Tax Act on effective settlement of IRS exam | 11,700 | ||
Provisional charge for write-off and establishment of valuation allowance against unused foreign tax credits | 25,400 | ||
Two Thousand Seventeen Tax Cuts and Jobs Act [Member] | Foreign Earnings And Profits [Member] | |||
Income Taxes [Line Items] | |||
Provisional income tax benefits associated with Transition Tax | $ 4,300 | ||
GILTI [Member] | |||
Income Taxes [Line Items] | |||
Income tax charge of during period | $ 2,100 |
Income Taxes - Summary of Valua
Income Taxes - Summary of Valuation Allowances Against Deferred Income Taxes (Detail) - USD ($) $ in Thousands | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 |
Valuation Allowance [Line Items] | ||||
Valuation allowance | $ 748 | $ 5,204 | $ 536 | $ 590 |
U.S. State Tax [Member] | Loss Carryforwards and Credits [Member] | ||||
Valuation Allowance [Line Items] | ||||
Valuation allowance | 666 | 578 | ||
Internal Revenue Service (IRS) [Member] | Income Tax Credits [Member] | ||||
Valuation Allowance [Line Items] | ||||
Valuation allowance | $ 82 | 4,550 | ||
Poland [Member] | Loss Carryforwards [Member] | ||||
Valuation Allowance [Line Items] | ||||
Valuation allowance | $ 76 |
Income Taxes - Summary of Chang
Income Taxes - Summary of Change in Valuation Allowances Against Deferred Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | ||
Valuation Allowance [Line Items] | ||||
beginning balance | $ 5,204 | $ 536 | $ 590 | |
write off of deferred income taxes | (4,544) | |||
establishment of valuation allowance | [1] | 4,550 | ||
ending balance | 748 | 5,204 | 536 | |
Valuation Allowance, Deferred Income Taxes [Member] | ||||
Valuation Allowance [Line Items] | ||||
change in estimate | [2] | $ 88 | $ 118 | $ (54) |
[1] | The establishment of this valuation allowance pertains to U.S. foreign tax credits that were not more-likely-than not to be realized as a result of the Tax Act. | |||
[2] | Amounts pertain to a change in estimate of the recoverability of certain deferred income tax assets as of the end of the respective prior fiscal year. |
Income Taxes - Deferred Incom_2
Income Taxes - Deferred Income Taxes - Undistributed Earnings from Foreign Subsidiaries - Narrative (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Apr. 28, 2019 | Apr. 29, 2018 |
Income Taxes [Line Items] | |||
Dividends received deduction percentage for earnings and profits received from foreign corporation | 100.00% | ||
Dividends received deduction, foreign corporation ownership percentage | 10.00% | ||
Deferred tax liability, undistributed earnings from foreign subsidiaries | $ 3,523 | $ 4,256 | |
Undistributed earnings from our foreign subsidiaries that will not be reinvested indefinitely | $ 157,100 | ||
U.S. foreign income tax credits | $ 43,200 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefit (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | ||
Income Tax Disclosure [Abstract] | ||||
beginning balance | $ 844 | $ 12,245 | $ 14,897 | |
increases from prior period tax positions | 135 | 350 | 854 | |
decreases from prior period tax positions | [1] | (76) | (11,751) | (3,506) |
ending balance | $ 903 | $ 844 | $ 12,245 | |
[1] | The $11.8 million reduction in our unrecognized income tax benefits during fiscal 2018 is mostly associated with the reduction in our U.S. Federal income tax rate pursuant to the Tax Act on the effective settlement of an IRS exam. The $3.5 million reduction in our unrecognized income tax benefits during fiscal 2017 was due to a lapse of applicable statute of limitations in a foreign jurisdiction. |
Income Taxes - Unrecognized T_2
Income Taxes - Unrecognized Tax Benefit (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 29, 2018 | Apr. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||
Reduction to unrecognized tax benefits resulting from reduction in U.S. Federal income tax rate pursuant to Tax Act | $ 11.8 | |
Reduction to unrecognized tax benefits resulting from a lapse of the applicable statute of limitations | $ 3.5 |
Income Taxes - Uncertainty in I
Income Taxes - Uncertainty in Income Taxes - Narrative (Detail) - USD ($) | 3 Months Ended | |||||
Apr. 28, 2019 | Jan. 29, 2017 | Apr. 30, 2016 | Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | |
Income Taxes [Line Items] | ||||||
Unrecognized tax benefits | $ 903,000 | $ 844,000 | $ 12,245,000 | $ 14,897,000 | ||
Unrecognized tax benefits that would favorably impact effective income tax rate if recognized | 523,000 | 464,000 | ||||
Gross amount of interest and penalties due to unrecognized tax benefits | 97,000 | 40,000 | ||||
Canadian Provincial (Quebec) Returns [Member] | ||||||
Income Taxes [Line Items] | ||||||
Income tax examination, final adjustments | 4,000 | |||||
U.S. [Member] | ||||||
Income Taxes [Line Items] | ||||||
Income tax examination, final adjustments | 0 | |||||
Earliest Tax Year [Member] | Canadian Provincial (Quebec) Returns [Member] | ||||||
Income Taxes [Line Items] | ||||||
Income tax examination, year under examination | 2013 | |||||
Earliest Tax Year [Member] | U.S. [Member] | ||||||
Income Taxes [Line Items] | ||||||
Income tax examination, year under examination | 2014 | |||||
Latest Tax Year [Member] | Canadian Provincial (Quebec) Returns [Member] | ||||||
Income Taxes [Line Items] | ||||||
Income tax examination, year under examination | 2015 | |||||
Latest Tax Year [Member] | U.S. [Member] | ||||||
Income Taxes [Line Items] | ||||||
Income tax examination, year under examination | 2016 | |||||
Non-current Deferred Income Taxes [Member] | ||||||
Income Taxes [Line Items] | ||||||
Unrecognized tax benefits | 380,000 | 380,000 | ||||
Income Taxes Payable - Long-Term [Member] | ||||||
Income Taxes [Line Items] | ||||||
Unrecognized tax benefits | $ 523,000 | $ 464,000 |
Income Taxes - Income Taxes Pai
Income Taxes - Income Taxes Paid - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax payments, net of income tax refunds | $ 6.7 | $ 4 | $ 5.5 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) | Apr. 01, 2018USD ($)Option | May 16, 2016USD ($) | May 31, 2018USD ($) | Apr. 30, 2016USD ($) | Apr. 28, 2019USD ($) | Apr. 29, 2018USD ($) | Apr. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Line Items] | |||||||
Rental expense for operating leases | $ 3,700,000 | $ 3,000,000 | $ 2,900,000 | ||||
Future minimum rental commitments for noncancellable operating leases in fiscal 2020 | 3,000,000 | ||||||
Future minimum rental commitments for noncancellable operating leases in fiscal 2021 | 2,100,000 | ||||||
Future minimum rental commitments for noncancellable operating leases in fiscal 2022 | 1,200,000 | ||||||
Future minimum rental commitments for noncancellable operating leases in fiscal 2023 | 723,000 | ||||||
Future minimum rental commitments for noncancellable operating leases in fiscal 2024 | 678,000 | ||||||
Future minimum rental commitments for noncancellable operating leases in fiscal thereafter | 346,000 | ||||||
Accounts payable for capital expenditures | $ 78,000 | 1,800,000 | |||||
Maximum [Member] | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Lease terms | 6 years | ||||||
Lease terms, four successive renewal options for additional periods | 10 years | ||||||
Minimum [Member] | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Lease terms | 1 year | ||||||
Read Window Products LLC [Member] | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Lease terms | 3 years | ||||||
Lease terms, four successive renewal options for additional periods | 3 years | ||||||
Monthly lease payments of a plant facility | $ 18,000 | ||||||
Lease number of renewal options | Option | 4 | ||||||
Rental payments | $ 216,000 | 18,000 | |||||
Lease expiration date | Mar. 31, 2021 | ||||||
Buildings and Improvements [Member] | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Amount financed for construction of building | 0 | ||||||
Amount financed for construction of building required to be paid in fiscal 2019 | 1,400,000 | ||||||
Mattress Fabrics [Member] | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Monthly lease payments of a plant facility | 13,100 | ||||||
Rental payments | 158,000 | 156,000 | 156,000 | ||||
Mattress Fabrics [Member] | Capital Addition Purchase Commitments [Member] | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Open purchase commitments | $ 1,400,000 | ||||||
Mattress Fabrics [Member] | Capital Addition Purchase Commitments [Member] | Buildings and Improvements [Member] | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Contractual obligation, current cost | $ 11,300,000 | ||||||
Contractual obligation paid - Mattress Fabrics Building | $ 1,400,000 | $ 1,900,000 | $ 3,700,000 | $ 4,300,000 | |||
Mattress Fabrics [Member] | Capital Addition Purchase Commitments [Member] | Buildings and Improvements [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Percentage rate added to variable rate | 2.25% | ||||||
Variable interest rate | 30-day LIBOR rate | ||||||
Mattress Fabrics [Member] | Capital Addition Purchase Commitments [Member] | Buildings and Improvements [Member] | Letter of Credit [Member] | |||||||
Commitments and Contingencies Disclosure [Line Items] | |||||||
Letter of credit | $ 5,000,000 | ||||||
Unused fee calculated on letter of credit | 0.10% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Detail) - USD ($) | 12 Months Ended | ||||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | May 01, 2016 | Sep. 16, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options to purchase common stock outstanding | 0 | 0 | 15,600 | 83,600 | |
2015 Equity Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common stock authorized for issuance | 1,200,000 | ||||
Number of shares available for future equity based grants | 995,094 | ||||
Performance Based Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Remaining unrecognized compensation cost | $ 328,000 | ||||
Weighted average period over which unrecognized compensation cost is expected to be recognized | 1 year 10 months 24 days | ||||
Fair value of units expected to vest | $ 712,000 | ||||
Incentive Stock Option Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of options to purchase common stock outstanding | 0 | ||||
Number of options exercisable | 0 | ||||
Unrecognized compensation cost related to incentive stock options | $ 0 | ||||
Share-based compensation expense | 0 | $ 0 | $ 0 | ||
Aggregate intrinsic value for options exercised | 393,000 | 1,700,000 | |||
Time Based Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Remaining unrecognized compensation cost | $ 206,000 | ||||
Weighted average period over which unrecognized compensation cost is expected to be recognized | 4 years 1 month 6 days | ||||
Fair value of units expected to vest | $ 207,000 | ||||
Selling, General and Administrative Expenses [Member] | Performance Based Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | (53,000) | 2,000,000 | 3,200,000 | ||
Selling, General and Administrative Expenses [Member] | Common Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | 140,000 | 159,000 | 143,000 | ||
Selling, General and Administrative Expenses [Member] | Time Based Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 43,000 | $ 38,000 | $ 29,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Detail) - $ / shares | 12 Months Ended | ||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Shares | |||
outstanding at beginning of year | 0 | 15,600 | 83,600 |
granted | 0 | 0 | 0 |
exercised | 0 | (15,600) | (68,000) |
canceled/expired | 0 | 0 | 0 |
outstanding at end of year | 0 | 0 | 15,600 |
Weighted-Average Exercise Price | |||
outstanding at beginning of year | $ 0 | $ 7.14 | $ 8.37 |
granted | 0 | 0 | 0 |
exercised | 0 | 7.14 | 8.65 |
canceled/expired | 0 | 0 | 0 |
outstanding at end of year | $ 0 | $ 0 | $ 7.14 |
Stock-Based Compensation - Time
Stock-Based Compensation - Time Vested Restricted Stock Activity (Detail) - Time Vested Restricted Stock Awards [Member] - shares | 12 Months Ended | ||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
outstanding at beginning of year | 1,200 | 1,200 | 0 |
granted | 10,000 | 1,200 | 1,200 |
vested | (1,200) | (1,200) | 0 |
outstanding at end of year | 10,000 | 1,200 | 1,200 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Grants of Time-Based Restricted Stock Awards Associated with Key Member of Management (Detail) - Time Vested Restricted Stock Awards [Member] - $ / shares | Aug. 02, 2018 | Jul. 13, 2017 | Jun. 14, 2016 | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted Stock Awarded | 10,000 | 1,200 | 1,200 | ||||
Management [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Restricted Stock Awarded | 10,000 | 1,200 | 1,200 | ||||
Price Per Share | [1] | $ 24.35 | $ 32.50 | $ 28 | |||
Vesting Period | 59 months | 11 months | 11 months | ||||
[1] | Price per share represents closing price of our common stock on the date the respective award was granted. |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Vested Performance Based and Time Based Restricted Stock Units (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | ||
Performance Based Restricted Stock Units [Member] | Key Employees and (non-NEOs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted Stock Units Vested | [1] | 128,632 | 102,845 | 37,192 |
Weighted Average Fair Value | [1] | $ 3,754 | $ 3,342 | $ 1,066 |
Price Per Share | [1],[2] | $ 29.19 | $ 32.50 | $ 28.66 |
Performance Based Restricted Stock Units [Member] | Non-employee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted Stock Units Vested | [3] | 10,364 | 16,000 | 12,000 |
Weighted Average Fair Value | [3] | $ 320 | $ 520 | $ 344 |
Price Per Share | [2],[3] | $ 30.90 | $ 32.50 | $ 28.66 |
Time Based Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Restricted Stock Units Vested | 1,200 | 1,200 | 0 | |
Weighted Average Fair Value | [4] | $ 21 | $ 37 | $ 0 |
Price Per Share | [5] | $ 17.36 | $ 30.90 | $ 0 |
[1] | NEOs and key employees. | |||
[2] | The weighted average price per share is derived from the closing prices of our common stock on the dates the respective performance based restricted stock units vested. | |||
[3] | Non-employee | |||
[4] | Dollar amounts are in thousands. | |||
[5] | Price per share represents closing price of our common stock on the date the respective award vested. |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Assumptions Used to Determine Fair Value of Performance Based Restricted Stock Units (Detail) - Performance Based Restricted Stock Units [Member] - NEOs [Member] - $ / shares | Aug. 02, 2018 | Jul. 13, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Closing price of our common stock | $ 24.35 | $ 32.50 |
Expected volatility of our common stock | 33.50% | 31.00% |
Expected volatility of peer companies | 16.00% | 16.50% |
Risk-free interest rate | 2.74% | 1.56% |
Dividend yield | 1.35% | 1.66% |
Correlation coefficient of peer companies | 0.47% | 0.46% |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Grants of Performance Based Restricted Stock Units Associated with NEOs and Key Employees (Detail) - Performance Based Restricted Stock Units [Member] - $ / shares | Aug. 02, 2018 | Jul. 13, 2017 | Jul. 14, 2016 | |||
NEOs [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted Stock Units Awarded | [1],[2] | 86,599 | 78,195 | |||
Price Per Share | [2] | $ 18.51 | [3] | $ 31.85 | [4] | |
Vesting Period | 3 years | 3 years | ||||
Employee (non-NEOs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted Stock Units Awarded | [5] | 47,800 | [2] | 44,000 | [1] | |
Price Per Share | [5],[6] | $ 24.35 | $ 32.50 | |||
Vesting Period | 3 years | 3 years | ||||
Key Employees (non-NEOs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted Stock Units Awarded | [1],[2],[5] | 107,880 | ||||
Price Per Share | [2],[5],[6] | $ 28 | ||||
Vesting Period | 3 years | |||||
[1] | Amounts represent the maximum number of common stock shares that could be earned if certain performance targets are met as defined in the related restricted stock unit agreements. | |||||
[2] | Performance-based restricted stock units awarded to NEOs. | |||||
[3] | Price per share represents the fair market value per share ($0.76 per $1 or a reduction of $5.84 to the closing price of the our common stock) determined using the Monte Carlo simulation model for the market-based total shareholder return component and the closing price of our common stock ($24.35) for the performance-based components of the performance-based restricted stock units granted to our NEOs on August 2, 2018. | |||||
[4] | Price per share represents the fair market value per share ($0.98 per $1 or a reduction of $0.65 to the closing price of the our common stock) determined using the Monte Carlo simulation model for the market-based total shareholder return component and the closing price of our common stock ($32.50) for the performance-based components of the performance-based restricted stock units granted to our NEOs on July 13, 2017. | |||||
[5] | Performance-based restricted stock units awarded to key employees. | |||||
[6] | Price per share represents the closing price of our common stock on the date of grant. |
Stock-Based Compensation - Su_5
Stock-Based Compensation - Summary of Grants of Performance Based Restricted Stock Units Associated with NEOs and Key Employees (Parenthetical) (Detail) - Performance Based Restricted Stock Units [Member] - NEOs [Member] - $ / shares | Aug. 02, 2018 | Jul. 13, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value adjustment to closing price of common stock, percentage | 0.76% | 0.98% |
Fair value adjustment to closing price of common stock, per share | $ (5.84) | $ (0.65) |
Closing price of common stock | $ 24.35 | $ 32.50 |
Stock-Based Compensation - Su_6
Stock-Based Compensation - Summary of Grants of Performance Based Restricted Stock Units Associated with Non-Employee (Detail) - Performance Based Restricted Stock Units [Member] - Non-employee [Member] - $ / shares | Jul. 14, 2016 | Apr. 28, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Units Awarded | [1] | 11,549 | |
Vesting Period | 3 years | ||
Granted on July 14, 2016 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Price Per Share | [2] | $ 20.74 | |
[1] | Amounts represent the maximum number of common stock shares that could be earned if certain performance targets are met as defined in the related restricted stock unit agreement. | ||
[2] | The respective grant was unvested at the end of our reporting period. Accordingly, the price per share represents the closing price of our common stock on April 28, 2019, the end of our reporting period. |
Stock-Based Compensation - Su_7
Stock-Based Compensation - Summary of Grants of Common Stock to Outside Directors (Detail) - Common Stock Awards [Member] - Outside Directors [Member] - Immediate Vesting [Member] - $ / shares | 6 Months Ended | 12 Months Ended | |||
Apr. 01, 2019 | Oct. 01, 2018 | Oct. 02, 2017 | Oct. 03, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common Stock Awarded | 2,948 | 3,600 | 4,800 | 4,800 | |
Price Per Share | [1] | $ 19.18 | $ 23.45 | $ 33.20 | $ 29.80 |
[1] | Price per share represents closing price of our common stock on the date of grant. |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Apr. 28, 2019 | Apr. 29, 2018 |
Premier Money Market Fund [Member] | ||
Assets: | ||
Investments at fair value | $ 6,639 | $ 6,492 |
Low Duration Bond Fund [Member] | ||
Assets: | ||
Investments at fair value | 1,085 | |
Intermediate Term Bond Fund [Member] | ||
Assets: | ||
Investments at fair value | 747 | |
Strategic Income Fund [Member] | ||
Assets: | ||
Investments at fair value | 619 | |
Large Blend Fund [Member] | ||
Assets: | ||
Investments at fair value | 402 | |
Growth Allocation Fund [Member] | ||
Assets: | ||
Investments at fair value | 203 | 169 |
Moderate Allocation Fund [Member] | ||
Assets: | ||
Investments at fair value | 127 | 113 |
Other [Member] | ||
Assets: | ||
Investments at fair value | 112 | 150 |
EURO [Member] | Foreign Currency Contract [Member] | Cash Flow Hedge [Member] | ||
Liabilities: | ||
Derivative liabilities at fair value | 55 | |
Quoted prices in active markets for identical assets - Level 1 [Member] | Premier Money Market Fund [Member] | ||
Assets: | ||
Investments at fair value | 6,639 | 6,492 |
Quoted prices in active markets for identical assets - Level 1 [Member] | Low Duration Bond Fund [Member] | ||
Assets: | ||
Investments at fair value | 1,085 | |
Quoted prices in active markets for identical assets - Level 1 [Member] | Intermediate Term Bond Fund [Member] | ||
Assets: | ||
Investments at fair value | 747 | |
Quoted prices in active markets for identical assets - Level 1 [Member] | Strategic Income Fund [Member] | ||
Assets: | ||
Investments at fair value | 619 | |
Quoted prices in active markets for identical assets - Level 1 [Member] | Large Blend Fund [Member] | ||
Assets: | ||
Investments at fair value | 402 | |
Quoted prices in active markets for identical assets - Level 1 [Member] | Growth Allocation Fund [Member] | ||
Assets: | ||
Investments at fair value | 203 | 169 |
Quoted prices in active markets for identical assets - Level 1 [Member] | Moderate Allocation Fund [Member] | ||
Assets: | ||
Investments at fair value | 127 | 113 |
Quoted prices in active markets for identical assets - Level 1 [Member] | Other [Member] | ||
Assets: | ||
Investments at fair value | $ 112 | 150 |
Significant other observable inputs - Level 2 [Member] | EURO [Member] | Foreign Currency Contract [Member] | Cash Flow Hedge [Member] | ||
Liabilities: | ||
Derivative liabilities at fair value | $ 55 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Apr. 28, 2019 | Jun. 22, 2018 | Apr. 29, 2018 |
Assets | |||
Inventory | $ 50,860 | $ 53,454 | |
Liabilities | |||
Contingent consideration-earn-out obligation | 5,856 | ||
Read Window Products, LLC [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Assets | |||
Goodwill | 2,107 | ||
Inventory | 1,128 | ||
Liabilities | |||
None | 0 | ||
Read Window Products, LLC [Member] | Fair Value, Measurements, Nonrecurring [Member] | Customer Relationships [Member] | |||
Assets | |||
Customer Relationships | 2,247 | ||
Read Window Products, LLC [Member] | Fair Value, Measurements, Nonrecurring [Member] | Equipment [Member] | |||
Assets | |||
Equipment | 379 | ||
Read Window Products, LLC [Member] | Fair Value, Measurements, Nonrecurring [Member] | Trade Names [Member] | |||
Assets | |||
Tradename | 683 | ||
eLuxury [Member] | |||
Liabilities | |||
Contingent consideration-earn-out obligation | $ 5,600 | ||
eLuxury [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Assets | |||
Goodwill | 13,653 | ||
Inventory | 1,804 | ||
Liabilities | |||
Contingent consideration-earn-out obligation | 5,856 | ||
eLuxury [Member] | Fair Value, Measurements, Nonrecurring [Member] | Equipment [Member] | |||
Assets | |||
Equipment | 2,179 | ||
eLuxury [Member] | Fair Value, Measurements, Nonrecurring [Member] | Trade Names [Member] | |||
Assets | |||
Tradename | 6,549 | ||
Quoted prices in active markets for identical assets - Level 1 [Member] | Read Window Products, LLC [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Liabilities | |||
None | 0 | ||
Significant other observable inputs - Level 2 [Member] | Read Window Products, LLC [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Liabilities | |||
None | 0 | ||
Significant unobservable inputs - Level 3 [Member] | Read Window Products, LLC [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Assets | |||
Goodwill | 2,107 | ||
Inventory | 1,128 | ||
Liabilities | |||
None | 0 | ||
Significant unobservable inputs - Level 3 [Member] | Read Window Products, LLC [Member] | Fair Value, Measurements, Nonrecurring [Member] | Customer Relationships [Member] | |||
Assets | |||
Customer Relationships | 2,247 | ||
Significant unobservable inputs - Level 3 [Member] | Read Window Products, LLC [Member] | Fair Value, Measurements, Nonrecurring [Member] | Equipment [Member] | |||
Assets | |||
Equipment | 379 | ||
Significant unobservable inputs - Level 3 [Member] | Read Window Products, LLC [Member] | Fair Value, Measurements, Nonrecurring [Member] | Trade Names [Member] | |||
Assets | |||
Tradename | $ 683 | ||
Significant unobservable inputs - Level 3 [Member] | eLuxury [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Assets | |||
Goodwill | 13,653 | ||
Inventory | 1,804 | ||
Liabilities | |||
Contingent consideration-earn-out obligation | 5,856 | ||
Significant unobservable inputs - Level 3 [Member] | eLuxury [Member] | Fair Value, Measurements, Nonrecurring [Member] | Equipment [Member] | |||
Assets | |||
Equipment | 2,179 | ||
Significant unobservable inputs - Level 3 [Member] | eLuxury [Member] | Fair Value, Measurements, Nonrecurring [Member] | Trade Names [Member] | |||
Assets | |||
Tradename | $ 6,549 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Detail) - Cash Flow Hedge [Member] - Foreign Currency Contract [Member] - EURO [Member] | 12 Months Ended |
Apr. 29, 2019 | |
Derivatives, Fair Value [Line Items] | |
Derivative exchange rate, EURO to U.S. Dollar | 1.263 |
Derivative contract expiration | 2018-08 |
Derivatives - Schedule of Fair
Derivatives - Schedule of Fair Value of Derivative Instruments (Detail) $ in Thousands | Apr. 29, 2018USD ($) |
Accrued Expenses [Member] | Cash Flow Hedge [Member] | Foreign Currency Contract [Member] | EURO [Member] | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Fair Value | $ 55 |
Derivatives - Schedule of Gains
Derivatives - Schedule of Gains and Losses on Derivative Instruments (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Apr. 28, 2019 | Apr. 29, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amt of Gain (Loss) (net of tax) Recognized in OCI on Derivative (Effective Portion) and recorded in Accrued Expenses at Fair Value | $ 55 | $ (55) |
Amount of Gain (loss) (net of tax) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 0 | |
Other Expense [Member] | Cash Flow Hedge [Member] | Foreign Currency Contract [Member] | EURO [Member] | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ (64) |
Net (Loss) Income Per Share - W
Net (Loss) Income Per Share - Weighted Average Shares (Detail) - shares shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 28, 2019 | Jan. 27, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
weighted-average common shares outstanding, basic | 12,384 | 12,438 | 12,515 | 12,510 | 12,450 | 12,436 | 12,440 | 12,399 | 12,462 | 12,431 | 12,312 |
dilutive effect of stock-based compensation | 86 | 202 | 206 | ||||||||
weighted-average common shares outstanding, diluted | 12,384 | 12,465 | 12,551 | 12,600 | 12,611 | 12,436 | 12,580 | 12,590 | 12,548 | 12,633 | 12,518 |
Benefit plans (Detail)
Benefit plans (Detail) - USD ($) | 12 Months Ended | ||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Retirement Benefits [Abstract] | |||
Contributions to defined contribution plans | $ 1,200,000 | $ 1,100,000 | $ 924,000 |
Contributions to nonqualified deferred compensation plan | 189,000 | 192,000 | $ 185,000 |
deferred compensation | 6,998,000 | 7,353,000 | |
long-term investments - rabbi trust | $ 7,081,000 | $ 7,326,000 |
Segment Information - Narrative
Segment Information - Narrative (Detail) | 12 Months Ended | |||
Apr. 28, 2019SegmentCustomerSegmentCustomer | Apr. 29, 2018SegmentCustomer | Apr. 30, 2017Customer | Jun. 22, 2018 | |
Segment Reporting Information [Line Items] | ||||
Number of business segments | Segment | 3 | 2 | ||
Concentration risk, labor subject to collective bargaining arrangements | The hourly employees at our manufacturing facility in Canada (approximately 11% of our workforce) are represented by a local, unaffiliated union. The collective bargaining agreement for these employees expires on February 1, 2020. We are not aware of any efforts to organize any more of our employees, and we believe our relations with our employees are good. | |||
Description of changes in reporting goodwill and intangible assets in segment assets | During fiscal 2019, we elected to no longer include goodwill and intangible assets in segment assets, as these assets are not used by the Chief Operating Decision Maker to evaluate the respective segment’s operating performance, to allocate resources to the individual segments, or determine executive compensation. | |||
Net sales [Member] | Home Accessories [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 10.00% | |||
Number of major customers | 0 | |||
Accounts Receivable [Member] | Home Accessories [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 10.00% | |||
Number of major customers | 0 | |||
Workforce [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 11.00% | |||
Currency Concentration Risk [Member] | Net sales [Member] | USD [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 90.00% | 90.00% | 92.00% | |
Currency Concentration Risk [Member] | Accounts Receivable [Member] | Upholstery Fabrics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of major customers | 1 | |||
Geographic Concentration Risk [Member] | Net sales [Member] | International [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 24.00% | 23.00% | 22.00% | |
Customer Concentration Risk [Member] | Net sales [Member] | Upholstery Fabrics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 11.00% | 12.00% | 11.00% | |
Number of major customers | 1 | 1 | ||
Customer Concentration Risk [Member] | Net sales [Member] | Mattress Fabrics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 10.00% | 13.00% | 13.00% | |
Number of major customers | 0 | 1 | 1 | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Upholstery Fabrics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 13.00% | |||
Number of major customers | 1 | |||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Upholstery Fabrics [Member] | Minimum [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 10.00% | |||
Number of major customers | 0 | |||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Mattress Fabrics [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 10.00% | 20.00% | ||
Number of major customers | 0 | 2 | ||
eLuxury [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Majority ownership percentage acquired | 80.00% |
Segment Information - Internati
Segment Information - International net sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 28, 2019 | Jan. 27, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
net sales | $ 70,963 | $ 77,226 | $ 77,006 | $ 71,473 | $ 78,184 | $ 85,310 | $ 80,698 | $ 79,533 | $ 296,669 | $ 323,725 | $ 309,544 | |
North america (excluding USA) [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
net sales | [1] | 29,247 | 27,844 | 29,995 | ||||||||
Far east and asia [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
net sales | [2] | 39,277 | 40,671 | 34,695 | ||||||||
All other areas [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
net sales | 3,712 | 5,681 | 3,618 | |||||||||
International [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
net sales | $ 72,236 | $ 74,196 | $ 68,308 | |||||||||
[1] | Of this amount, $22.5 million, $21.9 million, and $22.3 million are attributable to shipments to Mexico in fiscal 2019, 2018, and 2017, respectively. | |||||||||||
[2] | Of this amount $29.8 million, $32.6 million, and $26.6 million are attributable to shipments to China in fiscal 2019, 2018, and 2017, respectively. |
Segment Information - Interna_2
Segment Information - International net sales (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 28, 2019 | Jan. 27, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
net sales | $ 70,963 | $ 77,226 | $ 77,006 | $ 71,473 | $ 78,184 | $ 85,310 | $ 80,698 | $ 79,533 | $ 296,669 | $ 323,725 | $ 309,544 |
Mexico [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
net sales | 22,500 | 21,900 | 22,300 | ||||||||
China [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
net sales | $ 29,800 | $ 32,600 | $ 26,600 |
Segment Information - Statement
Segment Information - Statement of Operations for Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 28, 2019 | Jan. 27, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
net sales | $ 70,963 | $ 77,226 | $ 77,006 | $ 71,473 | $ 78,184 | $ 85,310 | $ 80,698 | $ 79,533 | $ 296,669 | $ 323,725 | $ 309,544 |
gross profit | 12,189 | 14,123 | 13,326 | 10,559 | 14,760 | 17,603 | 15,804 | 16,465 | 50,198 | 64,633 | 69,235 |
selling, general, and administrative expenses | 10,230 | 10,038 | 10,103 | 8,033 | 8,296 | 9,959 | 9,415 | 9,501 | 38,405 | 37,172 | 39,157 |
Income (loss) from operations | 1,959 | 4,299 | 4,284 | 2,075 | 6,464 | 7,644 | 6,389 | 6,964 | 12,618 | 27,461 | 30,078 |
interest expense | (4) | (18) | (20) | (26) | (31) | (37) | (42) | (94) | 0 | ||
Other non-recurring charges | (678) | ||||||||||
restructuring credit and related charges | (1,563) | ||||||||||
interest income | 214 | 251 | 151 | 150 | 143 | 132 | 128 | 131 | 766 | 534 | 299 |
other expense | 658 | 288 | 142 | 257 | 115 | 229 | 321 | 353 | (1,346) | (1,018) | (681) |
income before income taxes | $ 1,511 | $ 4,262 | $ 4,275 | $ 1,948 | $ 6,466 | $ 7,516 | $ 6,159 | $ 6,742 | 11,996 | 26,883 | 29,696 |
Selling, General and Administrative Expenses [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Other non-recurring charges | 518 | ||||||||||
restructuring related charges | 40 | ||||||||||
Mattress Fabrics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
net sales | 145,059 | 192,597 | 190,805 | ||||||||
gross profit | 22,904 | 38,797 | 43,065 | ||||||||
selling, general, and administrative expenses | 11,296 | 12,935 | 13,685 | ||||||||
Income (loss) from operations | 11,608 | 25,861 | 29,380 | ||||||||
Upholstery Fabrics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
net sales | 135,654 | 131,128 | 118,739 | ||||||||
gross profit | 25,374 | 25,836 | 26,170 | ||||||||
selling, general, and administrative expenses | 14,551 | 14,881 | 15,079 | ||||||||
Income (loss) from operations | 10,823 | 10,956 | 11,091 | ||||||||
Upholstery Fabrics [Member] | Selling, General and Administrative Expenses [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
restructuring related charges | 40 | ||||||||||
Home Accessories [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
net sales | 15,956 | ||||||||||
gross profit | 4,428 | ||||||||||
selling, general, and administrative expenses | 5,163 | ||||||||||
Income (loss) from operations | (735) | ||||||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
gross profit | 52,706 | 64,633 | 69,235 | ||||||||
selling, general, and administrative expenses | 37,847 | 37,172 | 39,157 | ||||||||
Income (loss) from operations | 14,859 | 27,461 | 30,078 | ||||||||
Other non-recurring charges | (159) | ||||||||||
restructuring related charges | (2,349) | ||||||||||
Operating Segments [Member] | Mattress Fabrics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
net sales | 145,059 | 192,597 | 190,805 | ||||||||
Operating Segments [Member] | Upholstery Fabrics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
net sales | 135,654 | 131,128 | 118,739 | ||||||||
restructuring credit and related charges | 1,600 | ||||||||||
Operating Segments [Member] | Upholstery Fabrics [Member] | Selling, General and Administrative Expenses [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
restructuring related charges | 40 | ||||||||||
Operating Segments [Member] | Home Accessories [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
net sales | 15,956 | ||||||||||
Unallocated Corporate [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
selling, general, and administrative expenses | 6,837 | 9,356 | 10,393 | ||||||||
Income (loss) from operations | (6,837) | $ (9,356) | $ (10,393) | ||||||||
Unallocated Corporate [Member] | Selling, General and Administrative Expenses [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Other non-recurring charges | $ 429 |
Segment Information - Stateme_2
Segment Information - Statement of Operations for Operating Segments (Parenthetical) (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jan. 27, 2019 | Apr. 28, 2019 | Apr. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
Restructuring related charge for operating costs | $ 1,563 | ||
Inventory markdowns | 1,564 | ||
Other non-recurring charges | (678) | ||
Gain on sale of property, plant, and equipment | 1,452 | $ 131 | |
Employee termination benefits and other operational reorganization costs | 661 | ||
Upholstery Fabrics [Member] | |||
Segment Reporting Information [Line Items] | |||
Gain on sale of property, plant, and equipment | $ 1,500 | 1,486 | |
Restructuring related charge for other operating costs | 824 | ||
Cost of Sales [Member] | Upholstery Fabrics [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring related charges | 2,300 | ||
Selling, General and Administrative Expenses [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring related charges | 40 | ||
Other non-recurring charges | 518 | ||
Selling, General and Administrative Expenses [Member] | Upholstery Fabrics [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring related charges | 40 | ||
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring related charges | (2,349) | ||
Other non-recurring charges | (159) | ||
Operating Segments [Member] | Upholstery Fabrics [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring related charge for operating costs | (1,600) | ||
Employee termination benefits and other operational reorganization costs | 661 | ||
Operating Segments [Member] | Cost of Sales [Member] | Mattress Fabrics [Member] | |||
Segment Reporting Information [Line Items] | |||
Employee termination benefits and other operational reorganization costs | 159 | ||
Operating Segments [Member] | Cost of Sales [Member] | Upholstery Fabrics [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring related charge for operating costs | 784 | ||
Restructuring related charges | 2,300 | ||
Inventory markdowns | 1,600 | ||
Restructuring related charge for other operating costs | 784 | ||
Operating Segments [Member] | Selling, General and Administrative Expenses [Member] | Mattress Fabrics [Member] | |||
Segment Reporting Information [Line Items] | |||
Employee termination benefits and other operational reorganization costs | 89 | ||
Operating Segments [Member] | Selling, General and Administrative Expenses [Member] | Upholstery Fabrics [Member] | |||
Segment Reporting Information [Line Items] | |||
Restructuring related charges | 40 | ||
Unallocated Corporate [Member] | Selling, General and Administrative Expenses [Member] | |||
Segment Reporting Information [Line Items] | |||
Other non-recurring charges | $ 429 |
Segment Information - Balance S
Segment Information - Balance Sheet Information by Operating Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Apr. 28, 2019 | Jan. 27, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | Apr. 30, 2018 | May 01, 2016 | |||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Inventory | $ 50,860 | $ 53,454 | $ 50,860 | $ 53,454 | |||||||||||||||
Property, plant and equipment | 48,389 | $ 50,129 | $ 51,325 | $ 53,178 | 51,794 | $ 51,838 | $ 52,530 | $ 52,912 | 48,389 | 51,794 | |||||||||
Investment in unconsolidated joint venture | 1,508 | 1,501 | 1,508 | 1,501 | |||||||||||||||
Cash and cash equivalents | 40,008 | 21,228 | 40,008 | 21,228 | |||||||||||||||
Short-term investments (Available for Sale) | 2,451 | 2,451 | |||||||||||||||||
Short-term investments (Held-to-Maturity) | 5,001 | 25,759 | 5,001 | 25,759 | |||||||||||||||
current income taxes receivable | 776 | 776 | |||||||||||||||||
Other current assets | 2,849 | 2,870 | 2,849 | 2,870 | $ 2,897 | ||||||||||||||
Deferred income taxes | 457 | 1,458 | 457 | 1,458 | |||||||||||||||
Goodwill | 27,222 | 13,569 | 27,222 | 13,569 | $ 11,462 | $ 11,462 | |||||||||||||
Intangible assets | 10,448 | 4,275 | 10,448 | 4,275 | |||||||||||||||
Long-term investments (Held-to-Maturity) | 5,035 | 5,035 | |||||||||||||||||
Long-term investments (Rabbi Trust) | 7,081 | 7,326 | 7,081 | 7,326 | |||||||||||||||
noncurrent income taxes receivable | 733 | 733 | |||||||||||||||||
Depreciation expense | 2,030 | 2,031 | 2,041 | 2,015 | 1,992 | 1,966 | 1,905 | 1,807 | 8,117 | 7,672 | 7,085 | ||||||||
Capital expenditures | 295 | 835 | 590 | 1,255 | 1,568 | 1,274 | 1,529 | 3,068 | 2,975 | [1] | 7,439 | [1] | 18,771 | [1] | |||||
Other assets | 643 | 957 | 643 | 957 | |||||||||||||||
total assets | 219,726 | $ 224,908 | $ 222,211 | $ 226,372 | 217,984 | $ 216,844 | $ 201,043 | $ 207,904 | 219,726 | 217,984 | |||||||||
Operating Segments [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
total assets | 124,090 | 132,504 | 124,090 | 132,504 | |||||||||||||||
Operating Segments [Member] | Mattress Fabrics [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Accounts receivable | 12,098 | 15,195 | 12,098 | 15,195 | |||||||||||||||
Inventory | 24,649 | 28,740 | 24,649 | 28,740 | |||||||||||||||
Property, plant and equipment | 44,266 | [2] | 48,797 | [3] | 44,266 | [2] | 48,797 | [3] | |||||||||||
Investment in unconsolidated joint venture | 1,508 | 1,501 | 1,508 | 1,501 | |||||||||||||||
Depreciation expense | 7,008 | 6,850 | 6,245 | ||||||||||||||||
Capital expenditures | 2,526 | 6,713 | 17,689 | ||||||||||||||||
total assets | 82,521 | 94,233 | 82,521 | 94,233 | |||||||||||||||
Operating Segments [Member] | Upholstery Fabrics [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Accounts receivable | 11,274 | 11,112 | 11,274 | 11,112 | |||||||||||||||
Inventory | 22,915 | 24,714 | 22,915 | 24,714 | |||||||||||||||
Property, plant and equipment | 1,795 | [4] | 2,445 | [5] | 1,795 | [4] | 2,445 | [5] | |||||||||||
Depreciation expense | 787 | 822 | 840 | ||||||||||||||||
Capital expenditures | 382 | 488 | 822 | ||||||||||||||||
total assets | 35,984 | 38,271 | 35,984 | 38,271 | |||||||||||||||
Operating Segments [Member] | Home Accessories [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Accounts receivable | 379 | 379 | |||||||||||||||||
Inventory | 3,296 | 3,296 | |||||||||||||||||
Property, plant and equipment | [6] | 1,910 | 1,910 | ||||||||||||||||
Depreciation expense | 322 | ||||||||||||||||||
Capital expenditures | 53 | ||||||||||||||||||
total assets | 5,585 | 5,585 | |||||||||||||||||
Unallocated Corporate [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Property, plant and equipment | [7] | 418 | 552 | 418 | 552 | ||||||||||||||
Cash and cash equivalents | 40,008 | 21,228 | 40,008 | 21,228 | |||||||||||||||
Short-term investments (Available for Sale) | 2,451 | 2,451 | |||||||||||||||||
Short-term investments (Held-to-Maturity) | 5,001 | 25,759 | 5,001 | 25,759 | |||||||||||||||
current income taxes receivable | 776 | 776 | |||||||||||||||||
Other current assets | 2,849 | 2,870 | 2,849 | 2,870 | |||||||||||||||
Deferred income taxes | 457 | 1,458 | 457 | 1,458 | |||||||||||||||
Goodwill | 27,222 | 13,569 | 27,222 | 13,569 | |||||||||||||||
Intangible assets | 10,448 | 4,275 | 10,448 | 4,275 | |||||||||||||||
Long-term investments (Held-to-Maturity) | 5,035 | 5,035 | |||||||||||||||||
Long-term investments (Rabbi Trust) | 7,081 | 7,326 | 7,081 | 7,326 | |||||||||||||||
noncurrent income taxes receivable | 733 | 733 | |||||||||||||||||
Capital expenditures | 14 | 238 | $ 260 | ||||||||||||||||
Other assets | 643 | 957 | 643 | 957 | |||||||||||||||
total assets | $ 219,726 | $ 217,984 | $ 219,726 | $ 217,984 | |||||||||||||||
[1] | Capital expenditure amounts are stated on an accrual basis. See the Consolidated Statement of Cash Flows for capital expenditure amounts on a cash basis. | ||||||||||||||||||
[2] | The $44.3 million at April 28, 2019, represents property, plant, and equipment located in the U.S. of $32.4 million and located in Canada of $11.9 million. | ||||||||||||||||||
[3] | The $48.8 million at April 29, 2018, represents property, plant, and equipment located in the U.S. of $35.4 million and located in Canada of $13.4 million. | ||||||||||||||||||
[4] | The $1.8 million at April 28, 2019, represents property, plant, and equipment located in the U.S. of $1.2 million and located in China of $591. | ||||||||||||||||||
[5] | The $2.4 million at April 29, 2018, represents property, plant, and equipment located in the U.S. of $1.8 million and located in China of $661. | ||||||||||||||||||
[6] | The $1.9 million at April 28, 2019, represents property, plant, and equipment located in the U.S. | ||||||||||||||||||
[7] | The $418 and $552 at April 28, 2019, and April 29, 2018, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress fabrics, upholstery fabrics, and home accessories segments located in the U.S. |
Segment Information - Balance_2
Segment Information - Balance Sheet Information by Operating Segments (Parenthetical) (Detail) - USD ($) $ in Thousands | Apr. 28, 2019 | Jan. 27, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | |||
Segment Reporting Information [Line Items] | |||||||||||
Property, plant and equipment | $ 48,389 | $ 50,129 | $ 51,325 | $ 53,178 | $ 51,794 | $ 51,838 | $ 52,530 | $ 52,912 | |||
Operating Segments [Member] | Mattress Fabrics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Property, plant and equipment | 44,266 | [1] | 48,797 | [2] | |||||||
Operating Segments [Member] | Upholstery Fabrics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Property, plant and equipment | 1,795 | [3] | 2,445 | [4] | |||||||
Operating Segments [Member] | Home Accessories [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Property, plant and equipment | [5] | 1,910 | |||||||||
Operating Segments [Member] | United States [Member] | Mattress Fabrics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Property, plant and equipment | 32,400 | 35,400 | |||||||||
Operating Segments [Member] | United States [Member] | Upholstery Fabrics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Property, plant and equipment | 1,200 | 1,800 | |||||||||
Operating Segments [Member] | United States [Member] | Home Accessories [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Property, plant and equipment | 1,900 | ||||||||||
Operating Segments [Member] | Canada [Member] | Mattress Fabrics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Property, plant and equipment | 11,900 | 13,400 | |||||||||
Operating Segments [Member] | China [Member] | Upholstery Fabrics [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Property, plant and equipment | 591,000 | 661,000 | |||||||||
Unallocated Corporate [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Property, plant and equipment | [6] | 418 | 552 | ||||||||
Unallocated Corporate [Member] | United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Property, plant and equipment | $ 418 | $ 552 | |||||||||
[1] | The $44.3 million at April 28, 2019, represents property, plant, and equipment located in the U.S. of $32.4 million and located in Canada of $11.9 million. | ||||||||||
[2] | The $48.8 million at April 29, 2018, represents property, plant, and equipment located in the U.S. of $35.4 million and located in Canada of $13.4 million. | ||||||||||
[3] | The $1.8 million at April 28, 2019, represents property, plant, and equipment located in the U.S. of $1.2 million and located in China of $591. | ||||||||||
[4] | The $2.4 million at April 29, 2018, represents property, plant, and equipment located in the U.S. of $1.8 million and located in China of $661. | ||||||||||
[5] | The $1.9 million at April 28, 2019, represents property, plant, and equipment located in the U.S. | ||||||||||
[6] | The $418 and $552 at April 28, 2019, and April 29, 2018, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by both the mattress fabrics, upholstery fabrics, and home accessories segments located in the U.S. |
Statutory Reserves (Detail)
Statutory Reserves (Detail) - Subsidiaries [Member] - China [Member] $ in Millions | 12 Months Ended |
Apr. 28, 2019USD ($) | |
Statutory Reserve [Line Items] | |
Percentage of net income required to be transferred to a statutory surplus reserve fund | 10.00% |
Maximum required percentage of statutory surplus reserve fund to registered capital | 50.00% |
Statutory surplus reserve fund balance | $ 4.3 |
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% |
Common Stock Repurchase Progr_2
Common Stock Repurchase Program (Detail) - USD ($) | 12 Months Ended | |||
Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | Jun. 15, 2016 | |
Stockholders Equity Note [Line Items] | ||||
Cost of common stock repurchase | $ 3,323,000 | |||
Common Stock [Member] | ||||
Stockholders Equity Note [Line Items] | ||||
Common stock repurchased | 160,823 | |||
Cost of common stock repurchase | $ 8,000 | |||
Common Stock Repurchase Program June 15, 2016 [Member] | Common Stock [Member] | ||||
Stockholders Equity Note [Line Items] | ||||
Authorization amount for repurchase of common stock | $ 5,000,000 | |||
Common stock repurchased | 160,823 | 0 | 0 | |
Remaining authorized repurchase amount | $ 1,700,000 |
Dividend Program (Detail)
Dividend Program (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jun. 12, 2019 | Apr. 28, 2019 | Jan. 27, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 |
Dividends [Line Items] | ||||||||||||
Cash dividends paid | $ 1,239 | $ 1,240 | $ 1,126 | $ 1,127 | $ 1,121 | $ 1,119 | $ 995 | $ 3,608 | $ 4,732 | $ 6,843 | $ 6,280 | |
Cash dividend payment, per share | $ 0.10 | $ 0.10 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.09 | $ 0.08 | $ 0.29 | ||||
Quarterly Dividend [Member] | ||||||||||||
Dividends [Line Items] | ||||||||||||
Cash dividends paid | $ 4,700 | $ 4,200 | $ 3,700 | |||||||||
Quarterly Dividend [Member] | Minimum [Member] | ||||||||||||
Dividends [Line Items] | ||||||||||||
Cash dividend payment, per share | $ 0.09 | $ 0.08 | $ 0.07 | |||||||||
Quarterly Dividend [Member] | Maximum [Member] | ||||||||||||
Dividends [Line Items] | ||||||||||||
Cash dividend payment, per share | $ 0.10 | $ 0.09 | $ 0.08 | |||||||||
Special Dividend [Member] | ||||||||||||
Dividends [Line Items] | ||||||||||||
Cash dividends paid | $ 2,600 | $ 2,600 | ||||||||||
Cash dividend payment, per share | $ 0.21 | $ 0.21 | ||||||||||
Subsequent Event [Member] | Quarterly Dividend [Member] | ||||||||||||
Dividends [Line Items] | ||||||||||||
Cash dividend declared, per share | $ 0.10 | |||||||||||
Date of payment to shareholders entitled to dividends | Jul. 16, 2019 | |||||||||||
Date of record of shareholders entitled to dividends | Jul. 5, 2019 |
Selected Quarterly Data (Unau_3
Selected Quarterly Data (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Apr. 28, 2019 | Jan. 27, 2019 | Oct. 28, 2018 | Jul. 29, 2018 | Apr. 29, 2018 | Jan. 28, 2018 | Oct. 29, 2017 | Jul. 30, 2017 | Apr. 28, 2019 | Apr. 29, 2018 | Apr. 30, 2017 | |||||
INCOME STATEMENT DATA | |||||||||||||||
net sales | $ 70,963 | $ 77,226 | $ 77,006 | $ 71,473 | $ 78,184 | $ 85,310 | $ 80,698 | $ 79,533 | $ 296,669 | $ 323,725 | $ 309,544 | ||||
cost of sales | 58,774 | 63,103 | 63,680 | 60,914 | 63,424 | 67,707 | 64,894 | 63,068 | 246,471 | 259,092 | 240,309 | ||||
gross profit | 12,189 | 14,123 | 13,326 | 10,559 | 14,760 | 17,603 | 15,804 | 16,465 | 50,198 | 64,633 | 69,235 | ||||
selling, general and administrative expenses | 10,230 | 10,038 | 10,103 | 8,033 | 8,296 | 9,959 | 9,415 | 9,501 | 38,405 | 37,172 | 39,157 | ||||
restructuring (credit) expense | (214) | (1,061) | 451 | ||||||||||||
income from operations | 1,959 | 4,299 | 4,284 | 2,075 | 6,464 | 7,644 | 6,389 | 6,964 | 12,618 | 27,461 | 30,078 | ||||
interest expense | 4 | 18 | 20 | 26 | 31 | 37 | 42 | 94 | 0 | ||||||
interest income | (214) | (251) | (151) | (150) | (143) | (132) | (128) | (131) | (766) | (534) | (299) | ||||
other expense | 658 | 288 | 142 | 257 | 115 | 229 | 321 | 353 | (1,346) | (1,018) | (681) | ||||
income before income taxes | 1,511 | 4,262 | 4,275 | 1,948 | 6,466 | 7,516 | 6,159 | 6,742 | 11,996 | 26,883 | 29,696 | ||||
income taxes | 3,017 | 1,225 | 1,276 | 906 | (6,217) | 8,208 | 2,108 | 1,640 | 6,424 | 5,740 | 7,339 | ||||
loss (income) from investment in unconsolidated joint venture | 5 | (23) | 55 | 77 | 17 | 56 | 75 | 118 | (114) | (266) | (23) | ||||
net (loss) income | (1,511) | 3,060 | 2,944 | 965 | 12,666 | (748) | 3,976 | 4,984 | 5,458 | 20,877 | 22,334 | ||||
net loss (income) attributable to non-controlling interest | 143 | 94 | (11) | (8) | 218 | ||||||||||
net (loss) income attributable to Culp Inc. common shareholders | (1,368) | 3,154 | 2,933 | 957 | 12,666 | (748) | 3,976 | 4,984 | 5,676 | 20,877 | 22,334 | ||||
depreciation | $ 2,030 | $ 2,031 | $ 2,041 | $ 2,015 | $ 1,992 | $ 1,966 | $ 1,905 | $ 1,807 | $ 8,117 | $ 7,672 | $ 7,085 | ||||
weighted average shares outstanding | 12,384,000 | 12,438,000 | 12,515,000 | 12,510,000 | 12,450,000 | 12,436,000 | 12,440,000 | 12,399,000 | 12,462,000 | 12,431,000 | 12,312,000 | ||||
weighted average shares outstanding, assuming dilution | 12,384,000 | 12,465,000 | 12,551,000 | 12,600,000 | 12,611,000 | 12,436,000 | 12,580,000 | 12,590,000 | 12,548,000 | 12,633,000 | 12,518,000 | ||||
PER SHARE DATA | |||||||||||||||
net (loss) income attributable to Culp Inc. common shareholders - basic | $ (0.11) | $ 0.25 | $ 0.23 | $ 0.08 | $ 1.02 | $ (0.06) | $ 0.32 | $ 0.40 | $ 0.46 | $ 1.68 | $ 1.81 | ||||
net (loss) income attributable to Culp Inc. common shareholders - diluted | (0.11) | 0.25 | 0.23 | 0.08 | 1 | (0.06) | 0.32 | 0.40 | $ 0.45 | $ 1.65 | $ 1.78 | ||||
dividends per share | 0.10 | 0.10 | 0.09 | 0.09 | 0.09 | 0.09 | 0.08 | 0.29 | |||||||
book value | $ 12.91 | $ 13.16 | $ 13.04 | $ 12.90 | $ 13.12 | $ 12.22 | $ 12.31 | $ 12.03 | |||||||
BALANCE SHEET DATA | |||||||||||||||
operating working capital | [1] | $ 49,757 | $ 52,573 | $ 50,193 | $ 51,648 | $ 49,939 | $ 47,760 | $ 46,620 | $ 42,608 | $ 49,757 | $ 49,939 | ||||
property, plant and equipment, net | 48,389 | 50,129 | 51,325 | 53,178 | 51,794 | 51,838 | 52,530 | 52,912 | 48,389 | 51,794 | |||||
total assets | 219,726 | 224,908 | 222,211 | 226,372 | 217,984 | 216,844 | 201,043 | 207,904 | 219,726 | 217,984 | |||||
capital expenditures | 295 | 835 | 590 | 1,255 | 1,568 | 1,274 | 1,529 | 3,068 | 2,975 | [2] | 7,439 | [2] | $ 18,771 | [2] | |
dividends paid | 1,239 | 1,240 | 1,126 | 1,127 | 1,121 | 1,119 | 995 | 3,608 | 4,732 | 6,843 | $ 6,280 | ||||
subordinated loan payable and line of credit | [3] | 675 | 4,000 | 5,000 | 675 | ||||||||||
shareholders' equity attributable to Culp Inc. | 159,933 | 162,775 | 162,918 | 161,490 | 163,376 | 152,182 | 153,080 | 149,677 | 159,933 | 163,376 | |||||
capital employed | [4] | $ 125,311 | $ 130,155 | $ 129,853 | $ 134,095 | $ 114,817 | $ 109,165 | $ 109,373 | $ 108,222 | $ 125,311 | $ 114,817 | ||||
RATIOS & OTHER DATA | |||||||||||||||
gross profit margin | 17.20% | 18.30% | 17.30% | 14.80% | 18.90% | 20.60% | 19.60% | 20.70% | |||||||
operating income margin | 2.80% | 5.60% | 5.60% | 2.90% | 8.30% | 9.00% | 7.90% | 8.80% | |||||||
net (loss) income margin | (2.10%) | 4.00% | 3.80% | 1.40% | 16.20% | (0.90%) | 4.90% | 6.30% | |||||||
effective income tax rate | 199.70% | 28.70% | 29.80% | 46.50% | (96.10%) | 109.20% | 34.20% | 24.30% | 53.60% | 21.40% | 24.70% | ||||
Debt-to-total capital employed ratio | [3],[4] | 0.50% | 0.00% | 0.00% | 3.00% | 0.00% | 0.00% | 0.00% | 4.60% | 0.50% | 0.00% | ||||
operating working capital turnover | [1] | 5.8 | 6 | 6.3 | 6.6 | 7.1 | 7.4 | 7.4 | 7.4 | ||||||
days sales in receivables | 30 | 30 | 28 | 29 | 30 | 28 | 27 | 25 | |||||||
inventory turnover | 4.6 | 4.6 | 5 | 4.5 | 4.8 | 5.2 | 5.2 | 4.7 | |||||||
stock price | |||||||||||||||
high | $ 21.06 | $ 23.84 | $ 27.78 | $ 32.05 | $ 32.29 | $ 34.05 | $ 33.25 | $ 34 | |||||||
low | 17.05 | 18.06 | 21.04 | 23.90 | 27.40 | 26.15 | 27 | 30.60 | |||||||
close | $ 20.74 | $ 18.47 | $ 22.31 | $ 24.75 | $ 30.10 | $ 31.35 | $ 31.95 | $ 30.65 | $ 20.74 | $ 30.10 | |||||
daily average trading volume (shares) | 35.6 | 43.3 | 29.8 | 27 | 18.3 | 17.4 | 24.4 | 27.9 | |||||||
[1] | Operating working capital for this calculation is accounts receivable and inventories, offset by accounts payable-trade, accounts payable - capital expenditures, and deferred revenue. | ||||||||||||||
[2] | Capital expenditure amounts are stated on an accrual basis. See the Consolidated Statement of Cash Flows for capital expenditure amounts on a cash basis. | ||||||||||||||
[3] | Debt represents outstanding borrowings on our long-term subordinated loan payable and lines of credit. | ||||||||||||||
[4] | Capital employed does not include cash and cash equivalents, short-term investments (available-for-sale), short-term investments (held-to-maturity), long-term investments (held-to-maturity), long-term investments (rabbi trust), lines of credit, subordinated loan payable, noncurrent deferred tax assets and liabilities, income taxes receivable and payable, and deferred compensation. |