View Filing Data

$ 71,998

$ 77,226

$ 219,465

$ 225,705

Cost of sales

59,614

63,103

179,612

187,697

Selling, general and administrative expenses

12,384

14,123

39,853

38,008

9,952

10,038

30,783

28,174

Reversal of contingent consideration - earn-out obligation

^[1]

13,639

^[2]

(6,081)

(Loss) income from operations

(35)

(214)

(70)

(825)

(5,091)

4,299

1,582

10,659

Interest expense

Interest income

(242)

(251)

(732)

(552)

Other expense

267

288

441

688

(Loss) income before income taxes

(5,124)

4,262

1,826

10,485

Income tax (benefit) expense

(973)

1,225

2,607

3,407

Loss (income) from investment in unconsolidated joint venture

(23)

109

Net (loss) income

(4,207)

3,060

(841)

6,969

Net loss attributable to non-controlling interest

4,149

4,421

Net (loss) income attributable to Culp, Inc. common shareholders

$ (58)

$ 3,154

$ 3,580

$ 7,044

Net (loss) income attributable to Culp Inc. common shareholders per share - basic

$ 0.00

$ 0.25

$ 0.29

$ 0.56

Net (loss) income attributable to Culp Inc. common shareholders per share - diluted

$ 0.00

$ 0.25

$ 0.29

$ 0.56

Average shares outstanding, basic

12,409

12,438

12,405

12,488

Average shares outstanding, diluted

12,409

12,465

12,421

12,593

[1]	Our home accessories segment incurred asset impairment charges totaling $13.6 million, of which $11.2 million and $2.4 million pertained to this segment’s goodwill and tradename, respectively.
[2]	We recorded a reversal of $6.1 million that pertained to a contingent earn-out obligation associated with the purchase of our 80% ownership interest in eLuxury, LLC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Feb. 02, 2020	Jan. 27, 2019	Feb. 02, 2020	Jan. 27, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net (loss) income	$ (4,207)	$ 3,060	$ (841)	$ 6,969
Unrealized gain (loss) on investments, net of tax
Unrealized holding gains (losses) on investments, net of tax	49	(75)	64	(78)
Reclassification adjustment for realized loss on investments		22		116
Total unrealized gain (loss) on investments	49	(53)	64	38
Unrealized gain on foreign currency cash flow hedge, net of tax
Unrealized holding loss on foreign currency cash flow hedge				(8)
Reclassification adjustment for realized loss on foreign currency cash flow hedge				64
Total unrealized gain on foreign currency cash flow hedge				56
Total other comprehensive income (loss)	49	(53)	64	94
Comprehensive (loss) income	(4,158)	3,007	(777)	7,063
Comprehensive loss income attributable to non-controlling interest	4,149	94	4,421	75
Comprehensive (loss) income attributable to Culp, Inc. common shareholders	$ (9)	$ 3,101	$ 3,644	$ 7,138

CONSOLIDATED BALANCE SHEETS - USD ($)

Feb. 02, 2020

Apr. 28, 2019

Jan. 27, 2019

Current assets:

Cash and cash equivalents

$ 21,872,000

$ 40,008,000

^[1]

$ 26,418,000

Short-term investments - Held-To-Maturity

3,171,000

5,001,000

^[1]

13,544,000

7,580,000

Accounts receivable, net

26,614,000

23,751,000

^[1]

26,142,000

Current income taxes receivable

57,575,000

50,860,000

^[1]

55,415,000

776,000

^[1]

Assets held for sale

67,000

Property, plant and equipment, net

3,219,000

2,849,000

^[1]

2,954,000

Total current assets

120,874,000

123,245,000

^[1]

124,473,000

46,380,000

48,389,000

^[1]

50,129,000

16,011,000

27,222,000

^[1]

27,222,000

Long-term investments - Rabbi Trust

7,738,000

10,448,000

^[1]

10,542,000

7,804,000

7,081,000

^[1]

6,834,000

Long-term investments - Held-To-Maturity

2,224,000

Noncurrent income taxes receivable

5,524,000

733,000

^[1]

920,000

457,000

^[1]

3,224,000

1,668,000

1,508,000

^[1]

1,512,000

464,000

643,000

^[1]

972,000

Accounts payable - capital expenditures

210,340,000

219,726,000

^[1]

224,908,000

Current liabilities:

Accounts payable-trade

21,835,000

24,377,000

^[1]

28,401,000

177,000

78,000

^[1]

91,000

Operating lease liability - current

2,227,000

Deferred revenue

398,000

399,000

^[1]

492,000

Accrued expenses

7,742,000

9,192,000

^[1]

9,740,000

Accrued restructuring costs

124,000

^[1]

228,000

Income taxes payable - current

455,000

1,022,000

^[1]

642,000

Total current liabilities

32,834,000

35,192,000

^[1]

39,594,000

Accrued expenses - long-term

233,000

333,000

^[1]

Subordinated loan payable

925,000

675,000

^[1]

Operating lease liability - noncurrent

3,160,000

Income taxes payable - long-term

5,856,000

^[1]

5,781,000

3,442,000

3,249,000

^[1]

3,294,000

Commitments and Contingencies (Notes 12, 19 and 20)

2,013,000

3,176,000

^[1]

2,225,000

Deferred compensation

7,637,000

6,998,000

^[1]

6,782,000

Total liabilities

50,244,000

55,479,000

^[1]

57,676,000

^[1]

Shareholders’ equity

Preferred stock, $0.05 par value, authorized 10,000,000

^[1]

Common stock, $0.05 par value, authorized 40,000,000 shares, issued and outstanding 12,361,180 at February 2, 2020; 12,368,413 at January 27, 2019; and 12,391,160 at April 28, 2019

618,000

620,000

^[1]

619,000

Capital contributed in excess of par value

43,748,000

43,694,000

^[1]

43,961,000

Accumulated earnings

115,373,000

115,579,000

^[1]

118,186,000

Accumulated other comprehensive income

104,000

40,000

^[1]

9,000

Total shareholders’ equity attributable to Culp Inc.

159,843,000

159,933,000

^[1]

162,775,000

Non-controlling interest

253,000

4,314,000

^[1]

4,457,000

Total equity

160,096,000

164,247,000

^[1]

167,232,000

Total liabilities and shareholders’ equity

$ 210,340,000

$ 219,726,000

^[1]

$ 224,908,000

[1]	Derived from audited financial statements.

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Feb. 02, 2020	Apr. 28, 2019	Jan. 27, 2019
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.05	$ 0.05	$ 0.05
Preferred stock, authorized shares	10,000,000	10,000,000	10,000,000
Common stock, par value	$ 0.05	$ 0.05	$ 0.05
Common stock, authorized shares	40,000,000	40,000,000	40,000,000
Common stock, issued	12,361,180	12,391,160	12,368,413
Common stock, outstanding	12,361,180	12,391,160	12,368,413

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands

9 Months Ended

Feb. 02, 2020

Jan. 27, 2019

Cash flows from operating activities:

Net (loss) income

$ (841)

$ 6,969

Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:

Depreciation

5,880

6,087

Amortization

530

592

831

373

Reversal of contingent consideration - earn-out obligation

^[1]

13,639

^[2]

(6,081)

Realized loss on sale of short-term investments (Available for Sale)

(1,626)

(1,691)

Gain on sale of equipment

(276)

(1,456)

Loss from investment in unconsolidated joint venture

109

Foreign currency exchange (gain) loss

(15)

Changes in assets and liabilities, net of effects of acquisition of business:

(2,885)

(38)

(7,016)

(658)

(527)

(43)

Accrued expenses and deferred compensation

159

Accounts payable - trade

(2,475)

486

Deferred revenue

(1)

(317)

542

(1,513)

Accrued restructuring costs

(124)

228

Income taxes

(293)

(1,155)

Net cash (used in) provided by operating activities

(519)

8,085

Cash flows from investing activities:

Net cash paid for acquisition of businesses

(12,096)

Proceeds from the sale of property, plant, and equipment

(4,072)

(2,954)

672

1,894

Proceeds from the sale of short-term investments (Held to Maturity)

(120)

5,000

17,150

Purchase of short-term and long-term investments (Held to Maturity)

(5,397)

Proceeds from the sale of short-term investments (Available for Sale)

2,458

Purchase of short-term investments (Available for Sale)

(7,532)

(10)

Proceeds from the sale of long-term investments (Rabbi Trust)

1,233

Purchase of long-term investments (Rabbi Trust)

(707)

(795)

Net cash (used in) provided by investing activities

(12,036)

6,760

Cash flows from financing activities:

Proceeds from line of credit

12,000

Payments on line of credit

(12,000)

Payments on vendor-financed capital expenditures

(1,412)

Proceeds from subordinated loan payable

250

Cash paid for acquisition of business

(1,532)

Common stock surrendered for withholding taxes payable

(3,786)

(3,493)

(51)

(1,303)

Capital contribution from non-controlling interest

360

Payments of debt issuance costs

(728)

(3,316)

(50)

Net cash used in financing activities

(5,487)

(9,574)

Effect of exchange rate changes on cash and cash equivalents

(94)

(81)

(Decrease) increase in cash and cash equivalents

(18,136)

5,190

Cash and cash equivalents at beginning of period

40,008

21,228

Cash and cash equivalents at end of period

$ 21,872

$ 26,418

[1]	Our home accessories segment incurred asset impairment charges totaling $13.6 million, of which $11.2 million and $2.4 million pertained to this segment’s goodwill and tradename, respectively.
[2]	We recorded a reversal of $6.1 million that pertained to a contingent earn-out obligation associated with the purchase of our 80% ownership interest in eLuxury, LLC.

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 Apr. 29, 2018

^[1]

$ 163,376

$ 623

$ 48,203

$ 114,635

$ (85)

$ 163,376

Balance (in shares) at Apr. 29, 2018

^[1]

12,450,276

Acquisition of subsidiary with non-controlling interest

965

957

$ 8

4,532

Unrealized gain on foreign currency cash flow hedge

(501)

Common stock issued in connection with vesting of performance based restricted stock units

134

$ 6

(6)

Common stock issued in connection with vesting of performance based restricted stock units (in shares)

115,917

Common stock issued in connection with vesting of time-based restricted stock units (in shares)

1,200

Common stock surrendered for withholding taxes payable

(1,292)

$ (2)

(1,290)

(1,292)

Common stock surrendered for withholding taxes payable (in shares)

(42,157)

(72)

(2,990)

Balance (in shares) at Jul. 29, 2018

(1,127)

Balance at Jul. 29, 2018

166,030

$ 627

46,334

114,465

161,490

4,540

12,522,246

Balance at Apr. 29, 2018

^[1]

163,376

$ 623

48,203

114,635

(85)

163,376

Balance (in shares) at Apr. 29, 2018

^[1]

12,450,276

Unrealized gain on foreign currency cash flow hedge

6,969

Balance (in shares) at Jan. 27, 2019

Balance at Jan. 27, 2019

167,232

$ 619

43,961

118,186

162,775

4,457

12,368,413

Balance at Apr. 29, 2018

^[1]

163,376

$ 623

48,203

114,635

(85)

163,376

Balance (in shares) at Apr. 29, 2018

^[1]

12,450,276

Balance at Apr. 28, 2019

^[1]

164,247

$ 620

43,694

115,579

159,933

4,314

Balance (in shares) at Apr. 28, 2019

^[1]

12,391,160

Balance at Jul. 29, 2018

166,030

$ 627

46,334

114,465

161,490

4,540

Balance (in shares) at Jul. 29, 2018

12,522,246

2,944

2,933

Unrealized gain on foreign currency cash flow hedge

395

(43)

3,600

(772)

$ (2)

(770)

(772)

(33,890)

Balance (in shares) at Oct. 28, 2018

(1,126)

Balance at Oct. 28, 2018

167,469

$ 625

45,959

116,272

162,918

4,551

12,491,956

3,060

3,154

(94)

479

Common stock surrendered for withholding taxes payable

(53)

(11)

(2,472)

$ (6)

(2,466)

(2,472)

(123,543)

Balance (in shares) at Jan. 27, 2019

(1,240)

Balance at Jan. 27, 2019

167,232

$ 619

43,961

118,186

162,775

4,457

12,368,413

Balance at Apr. 28, 2019

^[1]

164,247

$ 620

43,694

115,579

159,933

4,314

Balance (in shares) at Apr. 28, 2019

^[1]

12,391,160

1,174

1,338

(164)

154

Common stock issued in connection with vesting of performance based restricted stock units

$ 1

(1)

Common stock issued in connection with vesting of performance based restricted stock units (in shares)

12,776

Common stock surrendered for withholding taxes payable

3,659

(44)

Common stock surrendered for withholding taxes payable (in shares)

(2,581)

Capital contributions from non-controlling interest

(1,241)

Balance at Aug. 04, 2019

164,336

$ 621

43,803

115,676

160,146

4,190

Balance (in shares) at Aug. 04, 2019

12,405,014

Balance at Apr. 28, 2019

^[1]

164,247

$ 620

43,694

115,579

159,933

4,314

Balance (in shares) at Apr. 28, 2019

^[1]

12,391,160

(841)

Balance (in shares) at Feb. 02, 2020

Balance at Feb. 02, 2020

160,096

$ 618

43,748

115,373

104

159,843

253

12,361,180

Balance at Aug. 04, 2019

164,336

$ 621

43,803

115,676

160,146

4,190

Balance (in shares) at Aug. 04, 2019

12,405,014

2,192

2,300

(108)

313

Common stock issued in connection with vesting of performance based restricted stock units (in shares)

2,862

Common stock surrendered for withholding taxes payable

4,520

(7)

Common stock surrendered for withholding taxes payable (in shares)

(439)

Capital contributions from non-controlling interest

(1,241)

320

Balance at Nov. 03, 2019

165,922

$ 621

44,109

116,735

161,520

4,402

Balance (in shares) at Nov. 03, 2019

12,411,957

(4,207)

(58)

(4,149)

364

4,973

(728)

$ (3)

(725)

(728)

(55,750)

Balance (in shares) at Feb. 02, 2020

(1,304)

Balance at Feb. 02, 2020

$ 160,096

$ 618

$ 43,748

$ 115,373

$ 104

$ 159,843

$ 253

12,361,180

[1]	Derived from audited financial statements.

Basis of Presentation

9 Months Ended

Feb. 02, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Basis of Presentation

1. Basis of Presentation

The accompanying unaudited consolidated financial statements of Culp, Inc. and its majority-owned subsidiaries (the “company”) include all adjustments, which are, in the opinion of management, necessary for fair presentation of the results of operations and financial position. All of these adjustments are of a normal recurring nature. Results of operations for interim periods may not be indicative of future results. The unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements, which are included in the company’s annual report on Form 10-K filed with the Securities and Exchange Commission on July 12, 2019, for the fiscal year ended April 28, 2019.

The company’s nine-months ended February 2, 2020, and January 27, 2019, represent 40-week and 39-week periods, respectively.

Significant Accounting Policies

9 Months Ended

Feb. 02, 2020

Accounting Policies [Abstract]

Significant Accounting Policies

2. Significant Accounting Policies

As of February 2, 2020, there were no changes in the nature of our significant accounting policies or the application of those policies from those reported in our annual report on Form 10-K for the year then ended April 28, 2019, except as discussed below.

Recently Adopted Accounting Pronouncements

Leases

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize leases on the balance sheet and disclose certain key information about their leasing arrangements. The new standard establishes a right of use (“ROU”) model that requires a lessee to recognize a ROU asset and lease liability for certain lease contracts. Topic 842 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. As a result, we adopted Topic 842 on April 29, 2019, electing to use the modified retrospective transition method, which requires us to recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, financial information and disclosures will not be provided for periods prior to April 29, 2019.

Topic 842 allows the election of several practical expedients as part of adopting this new standard. We elected the “package of practical expedients” which permits us not to reassess, under Topic 842, our previous conclusions regarding lease identification and classification. We did not elect the use of hindsight with respect to determining the lease term. Also, Topic 842 provides practical expedients after adopting the new standard. We elected the short-term lease exemption, and therefore, we will not recognize ROU assets or lease liabilities for leases shorter than twelve months. We did not elect the practical expedient to combine lease and non-lease components for any class of assets and will account for lease components separately from non-lease components.

The adoption of Topic 842 had a material effect on our Consolidated Balance Sheets and increased the required disclosures in our notes to the consolidated financial statements (see note 19 for further details). The most significant effect related to the recognition of ROU assets totaling $7.2 million that were mostly offset by the recognition of lease liabilities totaling $7.1 million in our Consolidated Balance Sheets. The adoption of Topic 842 did not have a material impact on our Consolidated Statements of Net (Loss) Income or our Consolidated Statement of Cash Flows.

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which requires entities to use a forward looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The FASB has subsequently issued updates to the standard to provide additional clarification on specific topics. Topic 326 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. As a result, we are required to apply this guidance in our fiscal 2021 interim and annual financial statements commencing May 4, 2020. Currently, we do not expect this guidance to impact our results of operations, financial position, or statement of cash flow.

There are no other new accounting pronouncements that are expected to have a significant impact on our consolidated financial statements.

Business Combinations

9 Months Ended

Feb. 02, 2020

Business Combinations [Abstract]

Business Combinations

3. Business Combinations

eLuxury, LLC (eLuxury)

Overview

Effective June 22, 2018, we entered into an Equity Purchase Agreement (Equity Agreement), pursuant to 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, and other bedding items sourced from other suppliers. Its products are available on eLuxury’s own branded website, eLuxury.com, as well as Amazon and other leading online retailers for specialty home goods.

This acquisition brought 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.

The estimated consideration given for the 80% ownership interest in eLuxury totaled $18.1 million, of which $12.5 million represented the estimated purchase price and $5.6 million represented the 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 was paid in September 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
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 it offers 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.

During the third quarter of fiscal 2020, this goodwill was assessed for impairment as we believed indicators of impairment existed during this reporting period. See note 8 located in the notes to consolidated financial statements for further details.

Contingent Consideration

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.

We are required to assess the fair value of this earn-out obligation each quarterly reporting period. Based on management’s assessment as of February 2, 2020, we determined it was necessary to adjust forecasted EBITDA as it relates to this earn-out obligation. This determination was based on the future outlook of our home accessories segment and its slower than expected business improvement, as well as updated assumptions on economic conditions in the e-commerce space, combined with the upcoming timeframe for determining the amount associated with this contingent consideration arrangement. As a result of these factors, we recorded a reversal of $6.1 million for the full amount of our earn-out obligation during the third quarter of fiscal 2020.

Non-Controlling Interest

The Equity Agreement contains substantive profit-sharing arrangement provisions which explicitly state the ownership interests at the effective date of this business combination and the allocation of net income or loss between the company, as the controlling interest holder, and the noncontrolling interest holder. 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, future capital contributions, and equity distributions will be allocated at a percentage of 70% and 30% to the company and the noncontrolling interest holder, 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 is useful in estimating the fair value of the 20% noncontrolling interest. In order to determine the carrying value of the 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 $253,000 at February 2, 2020, mostly represents its $4.6 million fair value determined at the acquisition date, minus its allocation of net losses which includes a charge for asset impairments of $4.1 million incurred during the third quarter of fiscal 2020, slightly offset by capital contributions totaling $360,000.

Other

Acquisition costs totaling $270,000 were included in selling, general, and administrative expenses in our Consolidated Statement of Net Income for the nine-month period ending January 27, 2019.

Pro Forma Financial Information

The following unaudited pro forma consolidated results of operations for the three-month and nine-month periods ending February 2, 2020, and January 27, 2019, have been prepared as if the acquisition of eLuxury had occurred on May 1, 2017.

	Three Months Ended
(dollars in thousands, except per share data)	February 2, 2020			January 27, 2019
Net Sales	$	71,998		$	77,226
(Loss) income from operations		(5,091	)		4,299
Net (loss) income		(4,207	)		3,060
Net loss - noncontrolling interest		4,149			94
Net (loss) income – Culp Inc. common shareholders		(58	)		3,154
Net (loss) income per share (basic) – Culp Inc. common shareholders		0.00			0.25
Net (loss) income per share (diluted) – Culp Inc. common shareholders		0.00			0.25

	Nine Months Ended
(dollars in thousands, except per share data)	February 2, 2020			January 27, 2019
Net Sales	$	219,465		$	228,830
Income from operations		1,582			10,657
Net (loss) income		(841	)		6,943
Net loss - noncontrolling interest		4,421			83
Net income – Culp Inc. common shareholders		3,580			7,026
Net income per share (basic) – Culp Inc. common shareholders		0.29			0.56
Net income per share (diluted) – Culp Inc. common shareholders		0.29			0.56

The unaudited pro forma information is presented for informational purposes only and is not necessarily indicative of the results of operations that would actually have been achieved had the acquisition been consummated as of that time, nor is it intended to be a projection of future results.

Allowance for Doubtful Accounts

9 Months Ended

Feb. 02, 2020

Receivables [Abstract]

Allowance for Doubtful Accounts

4. Allowance for Doubtful Accounts

A summary of the activity in the allowance for doubtful accounts follows:

	Nine months ended
(dollars in thousands)	February 2, 2020			Janauary 27, 2019
Beginning balance	$	393		$	357
(Recovery) provision for bad debts		(16	)		78
Net write-offs, net of recoveries		—			(47	)
Ending balance	$	377		$	388

Revenue from Contracts with Customers

9 Months Ended

Feb. 02, 2020

Revenue From Contract With Customer [Abstract]

Revenue from Contracts with Customers

5. Revenue from Contracts with Customers

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 Window Products LLC (Read), 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. Read is included in the upholstery fabrics segment. The home accessories segment is our 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.

Our primary performance obligations include the sale of mattress fabrics, upholstery fabrics, and bedding and home accessories products, as well as the performance of customized fabrication and installation services of our own products associated with window treatments.

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 Sheets as deferred revenue. If upfront deposits or prepayments 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 operate and are not considered financing arrangements. There were no contract assets recognized as of February 2, 2020, January 27, 2019, and April 28, 2019.

A summary of the activity of deferred revenue for the nine-month periods ended February 2, 2020, and January 27, 2019, follows:

	Nine months ended
(dollars in thousands)	February 2, 2020			January 27, 2019
Beginning balance	$	399		$	809
Revenue recognized on contract liabilities		(1,917	)		(2,171	)
Payments received for services not yet rendered		1,916			1,854
Ending balance	$	398		$	492

Disaggregation of Revenue

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the three-month period ending February 2, 2020:

(dollars in thousands)	Mattress Fabrics		Upholstery Fabrics		Home Accessories		Total
Products transferred at a point in time	$	33,105	$	32,044	$	3,906	$	69,055
Services transferred over time		—		2,943		—		2,943
Total Net Sales	$	33,105	$	34,987	$	3,906	$	71,998

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the nine-month period ending February 2, 2020:

(dollars in thousands)	Mattress Fabrics		Upholstery Fabrics		Home Accessories		Total
Products transferred at a point in time	$	107,250	$	92,835	$	11,485	$	211,570
Services transferred over time		—		7,895		—		7,895
Total Net Sales	$	107,250	$	100,730	$	11,485	$	219,465

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the three-month period ending January 27, 2019:

(dollars in thousands)	Mattress Fabrics		Upholstery Fabrics		Home Accessories		Total
Products transferred at a point in time	$	35,732	$	34,730	$	4,390	$	74,852
Services transferred over time		—		2,374		—		2,374
Total Net Sales	$	35,732	$	37,104	$	4,390	$	77,226

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the nine-month period ending January 27, 2019:

(dollars in thousands)	Mattress Fabrics		Upholstery Fabrics		Home Accessories		Total
Products transferred at a point in time	$	107,335	$	98,610	$	11,759	$	217,704
Services transferred over time		—		8,001		—		8,001
Total Net Sales	$	107,335	$	106,611	$	11,759	$	225,705

Inventories

9 Months Ended

Feb. 02, 2020

Inventory Disclosure [Abstract]

Goodwill And Intangible Assets Disclosure [Abstract]

6. Inventories

Inventories are carried at the lower of cost or net realizable value. Cost is determined using the FIFO (first-in, first-out) method.

A summary of inventories follows:

(dollars in thousands)	February 2, 2020		January 27, 2019		April 28, 2019
Raw materials	$	7,607	$	5,745	$	5,617
Work-in-process		2,537		2,610		2,289
Finished goods		47,431		47,060		42,954
	$	57,575	$	55,415	$	50,860

Intangible Assets

9 Months Ended

Feb. 02, 2020

Intangible Assets

7. Intangible Assets

A summary of intangible assets follows:

(dollars in thousands)	February 2, 2020		January 27, 2019		April 28, 2019
Tradenames	$	4,804	$	7,232	$	7,232
Customer relationships, net		2,313		2,613		2,538
Non-compete agreement, net		621		697		678
	$	7,738	$	10,542	$	10,448

Tradenames

A summary of change in the carrying amount of our tradenames follows:

	Nine months ended
(dollars in thousands)	February 2, 2020			January 27, 2019
Beginning balance	$	7,232		$	683
Acquisition of business (note 3)		—			6,549
Impairment charge		(2,428	)		—
Ending balance	$	4,804		$	7,232

Our tradenames have an indefinite useful life and therefore, are not being amortized. However, in accordance with ASC Topic 350 Intangibles – Goodwill and Other, our tradenames will be assessed annually for impairment or between annual test if we believe indicators of impairment exist. As of February 2, 2020, management determined that impairment indicators existed that pertained to changes in the future outlook of our home accessories segment and its slower than expected business improvement as well as current economic conditions within the e-commerce bedding space. As a result of our interim impairment assessment, we recorded an impairment charge of $2.4 million in Asset Impairments in the Consolidated Statements of Net (Loss) Income for the three-month and nine-month periods ended February 2, 2020. There were no impairment charges for the three-month or nine-month periods ended January 27, 2019.

Customer Relationships

A summary of change in the carrying amount of our customer relationships follows:

	Nine months ended
(dollars in thousands)	February 2, 2020			January 27, 2019
Beginning balance	$	2,538		$	2,839
Amortization expense		(225	)		(226	)
Ending balance	$	2,313		$	2,613

Our customer relationships are amortized on a straight-line basis over useful lives ranging from nine to seventeen years.

The gross carrying amount of our customer relationships was $3.1 million at February 2, 2020, January 27, 2019, and April 28, 2019, respectively. Accumulated amortization for these customer relationships was $802,000, $502,000 and $577,000 at February 2, 2020, January 27, 2019, and April 28, 2019, respectively.

The remaining amortization expense for the next five fiscal years and thereafter follows: FY 2020 - $76,000; 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 7.9 years as of February 2, 2020.

Non-Compete Agreement

A summary of change in the carrying amount of our non-compete agreement follows:

	Nine months ended
(dollars in thousands)	February 2, 2020			January 27, 2019
Beginning balance	$	678		$	753
Amortization expense		(57	)		(56	)
Ending balance	$	621		$	697

Our non-compete agreement is amortized on a straight-line basis over the fifteen-year life of the agreement.

The gross carrying amount of our non-compete agreement was $2.0 million at February 2, 2020, January 27, 2019, and April 28, 2019, respectively. Accumulated amortization for our non-compete agreement was $1.4 million at February 2, 2020, $1.3 million at January 27, 2019, and $1.4 million at April 28, 2019.

The remaining amortization expense for the next five years and thereafter follows: FY 2020 - $19,000; FY 2021 - $75,000; FY 2022 - $75,000; FY 2023 - $75,000; FY 2024 - $75,000, and Thereafter - $302,000.

The weighted average amortization period for the non-compete agreement is 8.3 years as of February 2, 2020.

Goodwill

9 Months Ended

Feb. 02, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Equity Method Investments And Joint Ventures [Abstract]

8. Goodwill

A summary of the change in the carrying amount of goodwill follows:

	Nine months ended
(dollars in thousands)	February 2, 2020			January 27, 2019
Beginning balance	$	27,222		$	13,569
Acquisition of business (see note 3)		—			13,653
Impairment charge		(11,211	)		—
Ending balance	$	16,011		$	27,222

In accordance with ASC Topic 350 Intangibles – Goodwill and Other, we assess goodwill for impairment annually or between annual test if we believe indicators of impairment exist. As of February 2, 2020, management determined that impairment indicators existed that pertained to the future outlook of our home accessories segment and its slower than expected business improvement, as well as current economic conditions within the e-commerce bedding space. As a result of the interim impairment assessment, we recorded an impairment charge of $11.2 million in Asset Impairments in the consolidated statements of net (loss) income for the three-month and nine-month periods ended February 2, 2020. There were no impairment charges for the three-month or nine-month periods ended January 27, 2019.

Investment in Unconsolidated Joint Venture

9 Months Ended

Feb. 02, 2020

Investment in Unconsolidated Joint Venture

9. Investment in Unconsolidated Joint Venture

Culp International Holdings, Ltd. (Culp International), a wholly-owned subsidiary of the company, entered into a joint venture agreement pursuant to which Culp International 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 in northeastern Haiti, which borders the Dominican Republic. CLIH commenced production in the second quarter of fiscal 2018 and complements our mattress fabric operations with a reactive platform that enhances our ability to meet customer demand while adding a lower cost operation to our platform.

CLIH reported a net loss of $120,000 and $218,000 for the nine-month periods ending February 2, 2020, and January 27, 2019, respectively. Our equity interest in CLIH’s net loss for the nine-month periods ending February 2, 2020 and January 27, 2019 was $60,000 and $109,000, respectively.

The following table summarizes information on assets, liabilities, and members’ equity of our equity method investment in CLIH:

(dollars in thousands)	February 2, 2020		January 27, 2019		April 28, 2019
Total assets	$	3,502	$	3,255	$	3,126
Total liabilities	$	167	$	230	$	111
Total members’ equity	$	3,335	$	3,025	$	3,015

At February 2, 2020, January 27, 2019, and April 28, 2019, our equity interest in CLIH totaled $1.7 million, $1.5 million, and $1.5 million, respectively.

Accrued Expenses

9 Months Ended

Feb. 02, 2020

Restructuring And Related Activities [Abstract]

Accrued Expenses

10. Accrued Expenses

A summary of accrued expenses follows:

(dollars in thousands)	February 2, 2020		January 27, 2019		April 28, 2019
Compensation, commissions and related benefits	$	4,230	$	4,848	$	4,229
Interest		2		—		4
Other accrued expenses		3,743		4,892		5,292
	$	7,975	$	9,740	$	9,525

At February 2, 2020, we had accrued expenses totaling $8.0 million, of which $7.7 million and $233,000 were classified as current accrued expenses and long-term accrued expenses, respectively, in the accompanying Consolidated Balance Sheets. At January 27, 2019, we had accrued expenses totaling $9.7 million, all of which were classified as current accrued expenses in the accompanying Consolidated Balance Sheets. 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.

Exit and Disposal Activity

9 Months Ended

Feb. 02, 2020

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 located 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 restructuring related charges that were associated with the above exit and disposal activity:

	Nine months ended
(dollars in thousands)	February 2, 2020			January 27, 2019
Inventory markdowns	$	—		$	1,564
Employee termination benefits		(70	)		661
Other operational costs associated with a closed plant facility		—			824
Gain on sale of equipment		—			(1,486	)
Restructuring credit and restructuring related charges (1) (2)	$	(70	)	$	1,563

(1)	The $70,000 credit was recorded to restructuring credit in the Consolidated Statements of Net (Loss) Income for the nine-month period ending February 2, 2020.

(2)

Of the total net charge, a $2.3 million charge, a charge of $40,000, and a credit of $825,000 were recorded in cost of sales, selling, general and administrative expenses, and restructuring credit, respectively, in the Consolidated Statements of Net Income for the nine-month period ending January 27, 2019.

The following summarizes the activity in accrued restructuring costs:

	Nine months ended
(dollars in thousands)	February 2, 2020			January 27, 2019
Beginning balance	$	124		$	—
Accrual established in fiscal 2019		—			451
Payments		(54	)		(434	)
Adjustments		(70	)		211
Ending balance	$	—		$	228

The above restructuring accrual pertains to employee termination benefits that were associated with the above exit and disposal activity.

Lines of Credit

9 Months Ended

Feb. 02, 2020

Debt Disclosure [Abstract]

Lines of Credit

12. Lines of Credit

Revolving Credit Agreement – United States

Our Credit Agreement with Wells Fargo Bank, N.A. (“Wells Fargo”) provides a revolving loan commitment of $25 million, is set to expire on August 15, 2020, and allows us to issue letters of credit not to exceed $1 million.

Interest is charged at a rate (applicable interest rate of 3.11%, 3.95%, and 3.93% at February 2, 2020, January 27, 2019, and April 28, 2019, respectively) as a variable spread over LIBOR based on our ratio of debt to EBITDA.

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 February 2, 2020, January 27, 2019, and April 28, 2019, respectively.

At February 2, 2020, January 27, 2019, and April 28, 2019, there were $250,000 in outstanding letters of credit provided by the Credit Agreement.

Revolving Credit Agreement – China

We have an unsecured credit agreement associated with our operations in China that provides for a line of credit up to 40 million RMB ($5.8 million USD at February 2, 2020). This agreement has an interest rate determined by the Chinese government and is set to expire on December 4, 2020. There were no outstanding borrowings as of February 2, 2020, January 27, 2019, and April 28, 2019.

Subordinated Loan Payable

On February 7, 2019, eLuxury entered into a subordinated credit agreement with the owner of its noncontrolling interest which provides a revolving loan commitment of $1.0 million that expires on June 22, 2023. Interest is charged at a rate (applicable interest rate of 3.36% at February 2, 2020) as a variable spread over LIBOR based on Culp’s ratio of debt to EBITDA plus 25 basis points. There were outstanding borrowings under this agreement totaling $925,000 and $675,000 at February 2, 2020 and April 28, 2019, respectively.

Overall

Our loan agreements require, among other things, that we maintain compliance with certain financial covenants. We were in compliance with these financial covenants as of February 2, 2020.

Fair Value of Financial Instruments

9 Months Ended

Feb. 02, 2020

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

13. Fair Value of Financial Instruments

ASC Topic 820 establishes a fair value hierarchy that distinguishes between assumptions based on market data (observable inputs) and the company’s assumptions (unobservable inputs). Determining where an asset or liability falls within that hierarchy depends on the lowest level input that is significant to the fair value measurement as a whole. An adjustment to the pricing method used within either level 1 or level 2 inputs could generate a fair value measurement that effectively falls in a lower level in the hierarchy. The hierarchy consists of three broad levels as follows:

Level 1 – Quoted market prices in active markets for identical assets or liabilities;

Level 2 – Inputs other than level 1 inputs that are either directly or indirectly observable; and

Level 3 – Unobservable inputs developed using the company’s estimates and assumptions, which reflect those that market participants would use.

Recurring Basis

The following table presents information about assets measured at fair value on a recurring basis:

Fair value measurements at February 2, 2020 using:

Quoted prices

in active

markets for

identical

assets

Significant

other

observable

inputs

Significant

unobservable

inputs

(amounts in thousands)

Level 1

Level 2

Level 3

Total

Assets:

Premier Money Market Fund

6,334

N/A

6,334

Short Term Bond Funds

4,743

N/A

4,743

Inflation Protected Bond Funds

2,837

N/A

2,837

Strategic Income Fund

1,001

N/A

1,001

Growth Allocation Fund

239

N/A

239

Moderate Allocation Fund

138

N/A

138

Other

N/A

Fair value measurements at January 27, 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:

Premier Money Market Fund

6,433

N/A

6,433

Growth Allocation Fund

184

N/A

184

Moderate Allocation Fund

119

N/A

119

Other

N/A

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:

Premier Money Market Fund

6,639

N/A

6,639

Growth Allocation Fund

203

N/A

203

Moderate Allocation Fund

127

N/A

127

Other

112

N/A

112

The determination of where an asset or liability falls in the hierarchy requires significant judgment. We evaluate our hierarchy disclosures each quarter based on various factors and it is possible that an asset or liability may be classified differently from quarter to quarter. However, we expect that changes in classifications between different levels will be rare.

Short-Term and Long-Term Investments - Held-To-Maturity

Currently, our investments classified as held-to-maturity consist of investment grade U.S. corporate bonds, foreign bonds, and government bonds with remaining maturities that ranged from 1 to 3 years. These investments were classified as held-to-maturity, as we have the positive intent and ability to hold these investments until maturity. Our held-to-maturity investments were recorded as either current or noncurrent in our Consolidated Balance Sheets, based on the contractual maturity date in relation to the respective reporting period, and were recorded at amortized cost.

At February 2, 2020, January 27, 2019, and April 28, 2019, our held-to-maturity investments recorded at amortized cost totaled $5.4 million, $13.5 million, and $5.0 million, respectively. The fair value of our held-to-maturity investments at February 2, 2020, January 27, 2019, and April 28, 2019, totaled $5.4 million, $13.5 million and $5.0 million, respectively.

Our bond investments 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 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 bond.

Short-Term Investments Available for Sale

At February 2, 2020, our short-term investments classified as available for sale totaled $7.6 million and consisted of bond funds. Since these bond funds were classified as available for sale, these investments were recorded at their fair market value and their unrealized gains or losses are included in other comprehensive income (loss). Our bond funds had an accumulated unrealized gain totaling $48,000. At February 2, 2020, the fair value of our bond funds approximated its cost basis.

There were no short-term investments classified as available for sale held at January 27, 2019 and April 28, 2019.

Long-Term Investments - Rabbi Trust

We have a Rabbi Trust to set aside funds for participants of our deferred compensation plan (the “Plan”), which enables the participants to credit their contributions to various investment options of the Plan. The investments associated with the Rabbi Trust consist of a money market fund and various mutual funds that are classified as available for sale.

These long-term investments are recorded at their fair values of $7.8 million, $6.8 million, and $7.1 million at February 2, 2020, January 27, 2019, and April 28, 2019, respectively. Our long-term investments had an accumulated unrealized gain of $56,000, $9,000, and $40,000 at February 2, 2020, January 27, 2019, and April 28, 2019, respectively. The fair value of our long-term investments associated with our Rabbi Trust approximates their cost basis.

Other

The carrying amount of our cash and cash equivalents, accounts receivable, other current assets, accounts payable, and accrued expenses approximates fair value because of the short maturity of these financial instruments.

Nonrecurring Basis

As of February 2, 2020, we had certain assets and a contingent consideration – earn-out obligation that were required to be measured at fair value on a nonrecurring basis.

Fair value measurements at February 2, 2020 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 (note 8)

N/A

2,442

Tradename (note 7)

N/A

4,121

Liabilities:

Contingent Consideration – Earn-Out Obligation (note 3)

N/A

—

The goodwill was recorded at fair market value using the discounted cash flow method that used significant unobservable inputs and was classified as level 3. The tradename was recorded at fair market value using the royalty from relief method that used significant unobservable inputs and was classified as level 3.

As of January 27, 2019, we had no assets that were required to be measured at fair value on a nonrecurring basis other than certain assets acquired and liabilities assumed in connection with the eLuxury business combination on June 22, 2018 (see note 3).

Fair value measurements at January 27, 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

13,653

Tradename

N/A

6,549

Equipment

N/A

2,179

Inventory

N/A

1,804

Liabilities:

Contingent Consideration – Earn-Out Obligation

N/A

5,600

The tradename was recorded at fair market value using the royalty from relief method that used significant unobservable inputs and was classified as level 3. The contingent consideration – earn-out obligation was recorded at fair market value using the Black Scholes 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 3 for the final allocation of the acquisition cost to the assets acquired and liabilities assumed based on their fair values.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Cash Flow Information

9 Months Ended

Feb. 02, 2020

Supplemental Cash Flow Elements [Abstract]

Cash Flow Information

14. Cash Flow Information

Interest and income taxes paid are as follows:

	Nine months ended
(dollars in thousands)	February 2, 2020		January 27, 2019
Interest	$	48	$	54
Income taxes		4,500		6,226

Net (Loss) Income Per Share

9 Months Ended

Feb. 02, 2020

Earnings Per Share [Abstract]

Net (Loss) Income Per Share

15. Net (Loss) Income Per Share

Basic net (loss) income per share is computed using the weighted-average number of shares outstanding during the period. Diluted net (loss) 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 (loss) income per share follows:

	Three months ended
(amounts in thousands)	February 2, 2020		January 27, 2019
Weighted average common shares outstanding, basic		12,409		12,438
Dilutive effect of stock-based compensation		—		27
Weighted average common shares outstanding, diluted		12,409		12,465

During the three-months ended February 2, 2020, 10,793 shares of unvested common stock were not included in the computation of diluted earnings per share, as we incurred a net loss for that reporting period. During the three-months ended January 27, 2019, 723 shares of unvested common stock were not included in the computation of diluted earnings per share as their effect would be antidilutive.

	Nine months ended
(amounts in thousands)	February 2, 2020		January 27, 2019
Weighted average common shares outstanding, basic		12,405		12,488
Dilutive effect of stock-based compensation		16		105
Weighted average common shares outstanding, diluted		12,421		12,593

During the nine-months ended February 2, 2020, 5,853 shares of unvested common stock were not included in the computation of diluted earnings per share as their effect would be antidilutive. During the nine-months ended January 27, 2019, all unvested shares of common stock were included in the computation of diluted earnings per share.

Segment Information

9 Months Ended

Feb. 02, 2020

Segment Reporting [Abstract]

Segment Information

16. Segment Information

We evaluate the operating performance of our segments based upon income (loss) from operations before certain unallocated corporate expenses, restructuring credit and restructuring related charges, impairment charges, and other non-recurring items. Cost of sales for all segments include costs to develop, manufacture, or source our products, including costs such as raw material and finished goods purchases, direct and indirect labor, overhead, and incoming freight charges. Unallocated corporate expenses primarily represent compensation and benefits for certain executive officers, all costs associated with being a public company, and other miscellaneous expenses. Segment assets include assets used in the operations of each segment and primarily consist of accounts receivable, inventories, property, plant and equipment, and right of use assets (see note 19 for further details). The mattress fabrics segment also includes in segment assets their assets held for sale and investment in an unconsolidated joint venture. Goodwill and intangible assets are not included 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.

Financial information for the company’s operating segments follows:

		Three months ended
		February 2, 2020				January 27, 2019
Net sales:
Mattress Fabrics		$	33,105			$	35,732
Upholstery Fabrics			34,987				37,104
Home Accessories			3,906				4,390
		$	71,998			$	77,226
Gross profit:
Mattress Fabrics		$	4,614			$	5,963
Upholstery Fabrics			6,906				7,624
Home Accessories			864				1,050
Total segment gross profit		$	12,384			$	14,637
Restructuring related charges			—		(4)		(514	)
		$	12,384			$	14,123
Selling, general, and administrative expenses
Mattress Fabrics		$	2,836			$	2,755
Upholstery Fabrics			3,876				3,825
Home Accessories			1,046				1,361
Unallocated corporate expenses			2,194				1,628
Total segment selling, general, and administrative expenses		$	9,952			$	9,569
Other non-recurring charges			—		(5)		429
Restructuring related charges			—		(5)		40
		$	9,952			$	10,038
Income (loss) from operations:
Mattress Fabrics		$	1,777			$	3,208
Upholstery Fabrics			3,030				3,799
Home Accessories			(181	)			(311	)
Unallocated corporate expenses			(2,194	)			(1,628	)
Total segment income from operations			2,432				5,068
Asset impairments	(1)		(13,639	)			—
Reversal of contingent consideration - earn-out obligation	(2)		6,081				—
Restructuring credit and restructuring related charges	(3)		35		(6)		(340	)
Other non-recurring charges			—		(5)		(429	)
Total (loss) income from operations			(5,091	)			4,299
Interest expense			(8	)			—
Interest income			242				251
Other expense			(267	)			(288	)
(Loss) income before income taxes		$	(5,124	)		$	4,262

(1)	Our home accessories segment incurred asset impairment charges totaling $13.6 million, of which $11.2 million and $2.4 million pertained to this segment’s goodwill and tradename, respectively.

(2)	We recorded a reversal of $6.1 million that pertained to a contingent earn-out obligation associated with the purchase of our 80% ownership interest in eLuxury, LLC.

(3)	The $35 restructuring credit pertains to employee termination benefits associated with our closed Anderson, SC upholstery fabrics facility.

(4)	Cost of sales for the three-month period ending January 27, 2019, includes a $514 restructuring related charge for operating costs associated with our closed upholstery fabrics facility located in Anderson, SC.

(5)

Selling, general, and administrative expenses for the three-months ending January 27, 2019, includes a $469 non-recurring charge associated with the accelerated vesting of certain stock-based compensation agreements. Of this $469 non-recurring charge, $429 and $40 pertain to unallocated corporate expenses and a restructuring related charge, respectively, associated with our closed Anderson, SC upholstery fabrics plant facility.

(6)

The $340 represents restructuring related charges totaling $554 disclosed in notes 4 and 5 above, partially offset by a restructuring credit of $214. The $214 restructuring credit represents a $362 gain on the sale of the building and land associated with our Anderson, SC upholstery fabrics facility, partially offset by a charge of $148 for employee termination benefits.

		Nine months ended
		February 2, 2020				January 27, 2019
Net sales:
Mattress Fabrics		$	107,250			$	107,335
Upholstery Fabrics			100,730				106,611
Home Accessories			11,485				11,759
		$	219,465			$	225,705
Gross profit:
Mattress Fabrics		$	16,553			$	17,050
Upholstery Fabrics			20,905				20,031
Home Accessories			2,395				3,435
Total segment gross profit		$	39,853			$	40,516
Other non-recurring charges			—		(8)		(159	)
Restructuring related charges			—		(9)		(2,349	)
		$	39,853			$	38,008
Selling, general, and administrative expenses
Mattress Fabrics		$	8,860			$	8,141
Upholstery Fabrics			11,528				10,985
Home Accessories			3,462				3,690
Unallocated corporate expenses			6,933				4,800
Total segment selling, general, and administrative expenses		$	30,783			$	27,616
Other non-recurring charges			—		(10)		518
Restructuring related charges			—		(5)		40
		$	30,783			$	28,174
Income (loss) from operations:
Mattress Fabrics		$	7,693			$	8,910
Upholstery Fabrics			9,378				9,044
Home Accessories			(1,068	)			(254	)
Unallocated corporate expenses			(6,933	)			(4,800	)
Total segment income from operations			9,070				12,900
Asset impairments	(1)		(13,639	)			—
Reversal of contingent consideration - earn-out obligation	(2)		6,081				—
Restructuring credit and restructuring related charges	(7)		70		(11)		(1,563	)
Other non-recurring charges			—		(12)		(678	)
Total income from operations			1,582				10,659
Interest expense			(47	)			(38	)
Interest income			732				552
Other expense			(441	)			(688	)
Income before income taxes		$	1,826			$	10,485

(7)	The $70 restructuring credit pertains to employee termination benefits associated with our closed Anderson, SC upholstery fabrics facility.

(8)	The $159 represents a non-recurring charge regarding employee termination benefits and other operational reorganization costs associated with our mattress fabrics segment.

(9)	The $2.4 million consists of restructuring related charges of $1.6 million for inventory markdowns and $784 for other operating costs associated with our closed upholstery fabrics facility located in Anderson, SC.

(10)	The $518 represents non-recurring charges of $429 for the accelerated vesting of a stock-based compensation agreement associated with unallocated corporate expenses and $89 for employee termination benefits and operational reorganization costs associated with our mattress fabrics segment.

(11)

The $1.6 million represents related charges disclosed in note 9 above and $40 associated with the accelerated vesting of a stock-based compensation agreement, partially offset by a restructuring credit of $825. The $825 restructuring credit represents a $1.5 million gain on the sale of property, plant, and equipment associated with our Anderson, SC upholstery fabrics facility, partially offset by a charge of $661 for employee termination benefits.

(12)	The $678 represents non-recurring charges of $429 for the accelerated vesting of a stock-based compensation agreement and $249 regarding employee termination benefits and other operational reorganization costs associated with our mattress fabrics segment.

Balance sheet information for the company’s operating segments follows:

(dollars in thousands)	February 2, 2020		January 27, 2019		April 28, 2019
Segment assets:
Mattress Fabrics
Accounts receivable	$	12,940	$	12,373	$	12,098
Inventory		29,753		26,243		24,649
Assets held for sale		67		—		—
Property, plant and equipment (1)		42,368		45,845		44,266
Right of use assets (2)		426		—		—
Investment in unconsolidated joint venture		1,668		1,512		1,508
Total mattress fabrics assets		87,222		85,973		82,521
Upholstery Fabrics
Accounts receivable		12,908		13,367		11,274
Inventory		24,256		26,067		22,915
Property, plant and equipment (3)		1,675		1,957		1,795
Right of use assets (4)		2,143		—		—
Total upholstery fabrics assets		40,982		41,391		35,984
Home Accessories
Accounts receivable		766		402		379
Inventory		3,566		3,105		3,296
Property, plant and equipment (5)		1,728		1,985		1,910
Right of use assets (6)		949		—		—
Total home accessories assets		7,009		5,492		5,585
Total segment assets		135,213		132,856		124,090
Non-segment assets:
Cash and cash equivalents		21,872		26,418		40,008
Short-term investments (Held-to-Maturity)		3,171		13,544		5,001
Short-term investments (Available for Sale)		7,580		—		—
Current income taxes receivable		776		—		776
Other current assets		3,219		2,954		2,849
Deferred income taxes		920		3,224		457
Property, plant and equipment (7)		609		342		418
Right of use assets (8)		2,006		—		—
Goodwill		16,011		27,222		27,222
Intangible assets		7,738		10,542		10,448
Long-term investments (Rabbi Trust)		7,804		6,834		7,081
Long-term investments (Held-to-Maturity)		2,224		—		—
Noncurrent income taxes receivable		733		—		733
Other assets		464		972		643
Total assets	$	210,340	$	224,908	$	219,726

	Nine months ended
(dollars in thousands)	February 2, 2020		January 27, 2019
Capital expenditures (9):
Mattress Fabrics	$	3,416	$	2,342
Upholstery Fabrics		253		294
Home Accessories		104		33
Unallocated Corporate		398		11
Total capital expenditures	$	4,171	$	2,680
Depreciation expense:
Mattress Fabrics	$	5,017	$	5,265
Upholstery Fabrics		577		595
Home Accessories		286		227
Total depreciation expense	$	5,880	$	6,087

(1)

The $42.4 million at February 2, 2020, represents property, plant, and equipment of $28.7 million and $13.7 million located in the U.S. and Canada, respectively. The $45.8 million at January 27, 2019, represents property, plant, and equipment of $33.5 million and $12.3 million located in the U.S. and Canada, respectively. The $44.3 million at April 28, 2019, represents property, plant, and equipment of $32.4 million and $11.9 million located in the U.S. and Canada, respectively.

(2)	The $426 at February 2, 2020, represents right of use assets located in the U.S.

(3)

The $1.7 million at February 2, 2020, represents property, plant, and equipment of $1.2 million and $469 located in the U.S. and China, respectively. The $2.0 million at January 27, 2019, represents property, plant, and equipment of $1.3 million and $615 located in the U.S. and China, respectively. The $1.8 million at April 28, 2019, represents property, plant, and equipment of $1.2 million and $591 located in the U.S. and China, respectively.

(4)	The $2.1 million at February 2, 2020, represents right of use assets of $1.1 million and $1.0 million located in China and the U.S., respectively

(5)	The $1.7 million at February 2, 2020, $2.0 million at January 27, 2019, and $1.9 million at April 28, 2019, represents property, plant and equipment located in the U.S.

(6)	The $949 million at February 2, 2020, represents right of use assets located in the U.S.

(7)

The $609, $342, and $418 at February 2, 2020, January 27, 2019, and April 28, 2019, respectively, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by our mattress fabrics, upholstery fabrics, and home accessories segments. Property, plant, and equipment associated with our corporate departments reside in the U.S.

(8)	The $2.0 million at February 2, 2020, represents right of use assets located in the U.S.

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

Income Taxes

9 Months Ended

Feb. 02, 2020

Income Tax Disclosure [Abstract]

Income Taxes

17. Income Taxes

Effective Income Tax Rate

We recorded income tax expense of $2.6 million, or 142.8% of income before income taxes, for the nine-month period ended February 2, 2020, compared with income tax expense of $3.4 million, or 32.5% of income before income taxes, for the nine-month period ended January 27, 2019. Our effective income tax rates for the nine-month periods ended February 2, 2020, and January 27, 2019, were based upon the estimated effective income tax rate applicable for the full year after giving effect to any significant items related specifically to interim periods. The effective income tax rate can be affected over the fiscal year by the mix and timing of actual earnings from our U.S. operations and foreign subsidiaries located in China and Canada versus annual projections, as well as changes in foreign currency exchange rates in relation to the U.S. dollar.

The following schedule summarizes the principal differences between income tax expense at the U.S. federal income tax rate and the effective income tax rate reflected in the consolidated financial statements:

	2020			2019
U.S. federal income tax rate		21.0	%		21.0	%
Global Intangible Low Taxed Income Tax (GILTI)	58.2				2.6
Foreign income tax rate differential		35.7			10.1
Non-controlling interest income attributable to a consolidated partnership		21.0			-
Tax effects of Chinese foreign exchange gains		4.4			1.4
Change in estimate of U.S. valuation allowance	2.5				1.0
Stock-based compensation		1.2			0.7
Tax effects of the 2017 Tax Cuts and Jobs Act		-			(5.7	)
Other		(1.2	)		1.4
		142.8	%		32.5	%

The increase in our effective income tax rate reflects the significant decline in our projected annual consolidated taxable income, particularly in the U.S., and the mix of our consolidated taxable income that is earned by our foreign operations located in China and Canada that have higher income tax rates in relation to the U.S. This current mix of taxable income has led to a significant increase in our effective income tax rate that is associated with our Global Intangible Low Tax Income (GILTI) tax, which represents a U.S. income tax on foreign earnings. Additionally, our effective income tax rate significantly increased due to the income tax effects of our asset impairments associated with our home accessories segment incurred during the third quarter that were attributable to our non-controlling interest.

Deferred Income Taxes

Valuation Allowance

In accordance with ASC Topic 740, we evaluate our deferred income taxes to determine if a valuation allowance is required. ASC Topic 740 requires that companies assess whether a valuation allowance should be established based on the consideration of all available evidence using a “more-likely-than-not” standard, with significant weight being given to evidence that can be objectively verified. Since the company operates in multiple jurisdictions, we assess the need for a valuation allowance on a jurisdiction-by-jurisdiction basis, taking into account the effects of local tax law.

Based on our assessments at February 2, 2020, January 27, 2019, and April 28, 2019, valuation allowances against our deferred income taxes pertain to the following jurisdictions:

(dollars in thousands)	February 2, 2020		January 27, 2019		April 28, 2019
U.S. state loss carryforwards and credits	$	711		903		666
U.S. foreign income tax credits		—		4,550		82
	$	711		5,453		748

Undistributed Earnings

In accordance with ASC Topic 740, we assess whether the undistributed earnings from our foreign subsidiaries will be reinvested indefinitely or eventually distributed to our U.S. parent company. ASC Topic 740 requires that a deferred tax liability should be recorded for undistributed earnings from foreign subsidiaries that will not be reinvested indefinitely. Based on our assessment as of February 2, 2020, it is our intention not to permanently invest our undistributed earnings from our foreign subsidiaries. Also, we assess the recognition of U.S. foreign income tax credits associated with foreign withholding and income tax payments and whether it is more-likely-than-not that our foreign income tax credits will not be realized. If it is determined that any foreign income tax credits need to be recognized or it is more-likely-than-not our foreign income tax credits will not be realized, an adjustment to our provision for income taxes will be recognized at that time.

As a result of the 2017 Tax Cuts and Jobs Act, a U.S. corporation is allowed a 100% dividend received deduction for earnings and profits received from a 10% owned foreign corporation. Therefore, a deferred tax liability will be required for withholding taxes that are incurred by our foreign subsidiaries at the time earnings and profits are distributed. As a result, at February 2, 2020, January 27, 2019, and April 28, 2019, we recorded a deferred income tax liability of $3.4 million, $3.4 million, and $3.5 million, respectively, for withholding taxes on undistributed earnings and profits from our foreign subsidiaries.

Uncertainty In Income Taxes

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 benefits will be recorded at that time.

At February 2, 2020, we had a $914,000 total gross unrecognized income tax benefit that was recorded to income taxes payable- long-term in the accompanying Consolidated Balance Sheets. At January 27, 2019, we had a $880,000 total gross unrecognized income tax benefit, of which $500,000 and $380,000 were classified as income taxes payable – long-term and non-current deferred income taxes, respectively, in the accompanying Consolidated Balance Sheets. At April 28, 2019, we had a $903,000 total gross unrecognized income tax benefit, of which $523,000 and $380,000 were classified as income taxes payable – long-term and non-current deferred income taxes respectively, in the accompanying Consolidated Balance Sheets.

At February 2, 2020, our $914,000 total gross unrecognized income tax benefit would favorably affect the income tax rate in future periods. At January 27, 2019, our $880,000 total gross unrecognized income tax benefit included $500,000 that, if recognized, would favorably affect the income tax rate in future periods. At April 28, 2019, our $903,000 total gross unrecognized income tax benefit included $523,000 that, if recognized, would favorably affect the income tax rate in future periods.

Our gross unrecognized income tax benefit of $914,000 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.

Stock-Based Compensation

9 Months Ended

Feb. 02, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

18. Stock-Based Compensation

Equity Incentive Plan Description

On September 16, 2015, our shareholders approved an equity incentive plan entitled the Culp, Inc. 2015 Equity Incentive Plan (the “2015 Plan”). The 2015 Plan 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.

At February 2, 2020, there were 908,334 shares available for future equity-based grants under our 2015 plan.

Performance-Based Restricted Stock Units

Senior Executives

We grant performance-based restricted stock units to certain senior executives 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 for share-based awards is measured based on their fair market value on the date of grant. The fair market value per share is 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 of awards.

The following table provides assumptions used to determine the fair market value of the market-based shareholder return component of awards using the Monte Carlo simulation model during the fiscal year the grants noted below were awarded:

	Fiscal 2020			Fiscal 2019			Fiscal 2018
Closing price of our common stock	$	18.49		$	24.35		$	32.50
Expected volatility of our common stock		30.0	%		33.5	%		31.0	%
Expected volatility of peer companies (1) (2)	29.9% - 82.3%				16.0	%		16.5	%
Risk-free interest rate		1.73	%		2.74	%		1.56	%
Dividend yield		2.10	%		1.35	%		1.66	%
Correlation coefficient of peer companies (1) (2)	0.00 – 0.43				0.47			0.46

(1)

The expected volatility and correlation coefficient of our peer companies for fiscal 2020 were based on peer companies that were approved by the Compensation Committee of our board of directors as an aggregate benchmark for determining the market-based total shareholder return component. Therefore, we disclosed the ranges of the expected volatility and correlation coefficient for the companies that represented this peer group.

(2)

The expected volatility and correlation coefficient of our peer companies for fiscal 2019 and 2018 were based on the Russell 2000 Index which was approved by the Compensation Committee of our board of directors as the benchmark for determining the market-based total shareholder return component. Since the Russell 2000 Index was the only benchmark for determining the market-based total shareholder return component, no ranges were disclosed for these assumptions.

Key Employees and a Non-Employee

We grant 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 were measured based on the fair market value (the closing price of our common stock) on the date of grant. No market-based total shareholder return component was included in these awards.

Our performance-based restricted stock units granted to a non-employee, which vested during the first quarter of fiscal 2020, were measured based on the fair market value (the closing price of our common stock) on the date when the performance criteria was met.

The following table summarizes information related to our grants of performance-based restricted stock units associated with certain senior executives and key employees that are currently unvested:

Date of Grant	(3) Restricted Stock Units Awarded		Price Per Share			Vesting Period
July 18, 2019 (1)		93,653	$	19.04	(4)	3 years
July 18, 2019 (2)		30,426	$	18.49	(7)	3 years
August 2, 2018 (1)		86,599	$	18.51	(5)	3 years
August 2, 2018 (2)		47,800	$	24.35	(7)	3 years
July 13, 2017 (1)		78,195	$	31.85	(6)	3 years
July 13, 2017 (2)		44,000	$	32.50	(7)	3 years

(1)	Performance-based restricted stock units awarded to certain senior executives.

(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 ($1.03 per $1 or an increase of $0.55 to the closing price of the common stock on the date of grant) determined using the Monte Carlo simulation model for the market-based total shareholder return component and the closing price of our common stock ($18.49) for the performance-based components of the performance-based restricted stock units granted to certain senior executives on July 18, 2019.

(5)

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 common stock on the date of grant) 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 certain senior executives on August 2, 2018.

(6)

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 common stock on the date of grant) 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 certain senior executives on July 13, 2017.

(7)	Price per share represents the closing price of our common stock on the date of grant.

The following table summarizes information related to our performance-based restricted stock units that vested during the nine-month period ending February 2, 2020 and the entire fiscal year ending April 28, 2019:

Fiscal Year	Restricted Stock Units Vested		(3) Fair Value		Weighted Average Price Per Share
Fiscal 2020 (1)		9,489	$	165	$	17.36	(4)
Fiscal 2020 (2)		4,148	$	72	$	17.36	(4)
Fiscal 2019 (1)		128,632	$	3,754	$	29.19	(4)
Fiscal 2019 (2)		10,364	$	320	$	30.90	(4)

(1)	Certain senior executives 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 compensation expense of $467,000 and $259,000 within selling, general, and administrative expenses for the nine-month periods ending February 2, 2020, and January 27, 2019, respectively. Compensation cost is recorded based on an assessment each reporting period of the probability that certain performance goals will be met during the vesting period of outstanding awards. If performance goals are not probable of occurrence, compensation cost will not be recorded and any previously recognized compensation cost would be reversed.

At February 2, 2020, the remaining unrecognized compensation cost related to our performance-based restricted stock units was $680,000, which is expected to be recognized over a weighted average vesting period of 1.9 years. At February 2, 2020, the performance-based restricted stock units that were expected to vest had a fair value totaling $757,000.

Time-Based Restricted Stock Units

The following table summarizes information related to our grants of time-based restricted stock units associated with senior executives and key members of management that are currently unvested:

Date of Grant

Time Based

Stock Units

Awarded

Price Per

Vesting

Period

July 18, 2019

34,399

18.49

(1)

3 years

August 2, 2018

10,000

24.35

(1)

5 years

(1)	Price per share represents closing price of 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 nine-month period ending February 2, 2020 and the entire fiscal year ending April 28, 2019:

Fiscal Year

Restricted

Stock

Units Vested

(1) Fair Value

Weighted

Average

Price

Per Share

Fiscal 2020

—

Fiscal 2019

1,200

17.36

(2)

(1)	Dollar amounts are in thousands.

(2)	The weighted average price per share is derived from the closing prices of our common stock on the dates the respective time-based restricted stock units vested.

Overall

We recorded compensation expense of $154,000 and $30,000 within selling, general, and administrative expense associated with our time-based restricted stock unit awards for the nine-month periods ending February 2, 2020, and January 27, 2019, respectively.

At February 2, 2020, the remaining unrecognized compensation cost related to our time-based restricted stock units was $688,000, which is expected to be recognized over a weighted average vesting period of 2.6 years. At February 2, 2020, the time-based restricted stock awards that were expected to vest had a fair value totaling $561,000.

Common Stock Award

Fiscal 2020

We granted a total of 4,972, 4,519, and 3,659 shares of common stock to our outside directors on January 2, 2020, October 1, 2019, and July 1, 2019, respectively. These shares of common stock vested immediately and were measured at their fair value on the date of grant. The fair value of these awards was $14.08, $15.49, and $19.21 per share on January 2, 2020, October 1, 2019, and July 1, 2019, respectively, which represents the closing price of our common stock on the date of grant.

Fiscal 2019

We granted a total of 2,948 and 3,600 shares of common stock to our outside directors on April 1, 2019 and October 1, 2018, respectively. These shares of common stock vested immediately and were measured at their fair value on the date of grant. The fair value of these awards was $19.18 and $23.45 per share on April 1, 2019 and October 1, 2018, respectively, which represents the closing price of our common stock on the date of grant.

We recorded $210,000 and $84,000 of compensation expense within selling, general, and administrative expense for our common stock awards for the nine-months ending February 2, 2020 and January 27, 2019, respectively.

Leases

9 Months Ended

Feb. 02, 2020

Assets And Liabilities Lessee [Abstract]

Leases

19. Leases

Overview

We lease manufacturing facilities, office space, distribution centers, and equipment under operating lease arrangements. We determine if an arrangement is a lease at its inception if it conveys the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. Operating leases with an initial term of 12 months or less are not recognized in our Consolidated Balance Sheets. We recognize a right of use asset and lease liability on the commencement date of a lease arrangement based on the present value of lease payments over the lease term.

Our operating leases have remaining lease terms of 1 to 6 years, with renewal options for additional periods ranging up to 10 years. A lease term may include renewal options if it is reasonably certain that the option to renew a lease period will be exercised. A renewal option is considered reasonably certain to be exercised if there is a significant economic incentive, as defined in Topic 842, to exercise the renewal option on the date a lease arrangement is commenced. Currently, renewal options are not included in the lease terms for any of our leases, as there is not a significant economic incentive for us to exercise any of our renewal options.

For these contracts, an estimated incremental borrowing rate (“IBR”) is utilized, based on information available at the inception of the lease. The IBR represents an estimate of the interest rate we would incur at the lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of the lease.

Balance Sheet

The right of use asset and lease liabilities associated with our operating leases as of February 2, 2020, and April 29, 2019, are as follows:

(dollars in thousands)	February 2, 2020		(1) April 29, 2019
Right of use asset	$	5,524	$	7,191
Operating lease liability - current		2,227		2,629
Operating lease liability – noncurrent		3,160		4,473

(1)	Represents adoption date of Topic 842.

Supplemental Cash Flow Information

(dollars in thousands)

Three Months

Ended

February 2,

2020

Nine Months

Ended

February 2,

2020

Operating lease liability payments

671

2,079

Right of use assets exchanged for lease liabilities

322

344

Operating lease expense for the three-month and nine-month periods ending February 2, 2020, was $726,000 and $2.2 million, respectively. Short-term lease and variable lease expenses were immaterial for the three-month and nine-month periods ending February 2, 2020.

Other Information

Maturity of our operating lease liabilities for the remainder of fiscal 2020, the next subsequent four fiscal years, and thereafter follows:

(dollars in thousands)
2020	$	590
2021		2,161
2022		1,207
2023		767
2024		659
Thereafter		347
	$	5,731
Less: interest		(344	)
Present value of lease liabilities	$	5,387

As of February 2, 2020, the weighted average remaining lease term and discount rate for our operating leases follows:

Weighted average lease term		3.4 years
Weighted average discount rate			3.76	%

Commitments and Contingencies

9 Months Ended

Feb. 02, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

20. Commitments and Contingencies

Litigation

The company is involved in legal proceedings and claims which have arisen in the ordinary course of business. Management has determined that it is not reasonably possible that these actions, when ultimately concluded and settled, will have a material adverse effect upon the financial position, results of operations, or cash flows of the company.

Accounts Payable – Capital Expenditures

At February 2, 2020, January 27, 2019, and April 28, 2019, we had total amounts due regarding capital expenditures totaling $177,000, $91,000, and $78,000, respectively, which pertained to outstanding vendor invoices, none of which were financed. These total outstanding amounts were required to be paid based on normal credit terms.

Purchase Commitments – Capital Expenditures

At February 2, 2020, we had open purchase commitments to acquire equipment for our mattress fabrics segment totaling $2.3 million.

Statutory Reserves

9 Months Ended

Feb. 02, 2020

Statutory Reserves

21. Statutory Reserves

Our subsidiaries located in China are required to transfer 10% of their net income, as determined in accordance with the People’s Republic of China (PRC) accounting rules and regulations, to a statutory surplus reserve fund until such reserve balance reaches 50% of the company’s registered capital.

The transfer to this reserve must be made before distributions of any dividend to shareholders. As of February 2, 2020, the company’s statutory surplus reserve was $4.2 million, representing 10% of accumulated earnings and profits determined in accordance with PRC accounting rules and regulations. The surplus reserve fund is non-distributable other than during liquidation and can be used to fund previous years’ losses, if any, and may be utilized for business expansion or converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing the par value of the shares currently held by them provided that the remaining reserve balance after such issue is not less than 25% of the registered capital.

Our subsidiaries located in China can transfer funds to the parent company except for the statutory surplus reserve of $4.2 million to assist with debt repayment, capital expenditures, and other expenses of the company’s business.

Common Stock Repurchase Program

9 Months Ended

Feb. 02, 2020

Common Stock Repurchase Program

22. Common Stock Repurchase Program

On September 5, 2019, we announced that our board of directors approved an authorization for us to acquire up to $5.0 million of our common stock. During the nine-month period ending February 2, 2020, we purchased 55,750 shares of our common stock at a cost of $728,000 pursuant to this authorization, all of which was purchased during the third quarter. As a result, at February 2, 2020, we have $4.3 million available for future repurchases of our common stock associated with the $5.0 million repurchase program approved by our board of directors on September 5, 2019.

On March 4, 2020, we announced that our board of directors approved an authorization 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 number of shares that can be purchased and the timing of such purchases will be based on working capital requirements, market and general business conditions, and other factors, including alternative investment opportunities.

During the nine-month period ended January 27, 2019, we purchased 160,423 shares of common stock at a cost of $3.3 million. The 160,423 shares were purchased pursuant to a prior authorization approved by our board of directors on June 15, 2016.

Dividend Program

9 Months Ended

Feb. 02, 2020

Recently Adopted and Issued Accounting Pronouncements

Dividend Program

23. Dividend Program

On March 4, 2020, we announced that our board of directors approved a quarterly cash dividend of $0.105 per share that will be paid on April 15, 2020, to shareholders of record as of April 7, 2020.

During the nine-months ended February 2, 2020, dividend payments totaled $3.8 million, which represented quarterly dividend payments ranging from $0.10 per share to $0.105 per share. During the nine-months ended January 27, 2019, dividend payments totaled $3.5 million, which represented quarterly dividend payments ranging from $0.09 per share to $0.10 per share.

Future dividend payments are subject to board approval and may be adjusted at the board’s discretion as business needs or market conditions change.

Significant Accounting Policies (Policies)

9 Months Ended

Feb. 02, 2020

Accounting Policies [Abstract]

Recently Adopted Accounting Pronouncements

Leases

Recently Issued Accounting Pronouncements

There are no other new accounting pronouncements that are expected to have a significant impact on our consolidated financial statements.

Business Combinations (Tables)

9 Months Ended

Feb. 02, 2020

Schedule of Unaudited Pro Forma Consolidated Results of Operations

	Three Months Ended
(dollars in thousands, except per share data)	February 2, 2020			January 27, 2019
Net Sales	$	71,998		$	77,226
(Loss) income from operations		(5,091	)		4,299
Net (loss) income		(4,207	)		3,060
Net loss - noncontrolling interest		4,149			94
Net (loss) income – Culp Inc. common shareholders		(58	)		3,154
Net (loss) income per share (basic) – Culp Inc. common shareholders		0.00			0.25
Net (loss) income per share (diluted) – Culp Inc. common shareholders		0.00			0.25

	Nine Months Ended
(dollars in thousands, except per share data)	February 2, 2020			January 27, 2019
Net Sales	$	219,465		$	228,830
Income from operations		1,582			10,657
Net (loss) income		(841	)		6,943
Net loss - noncontrolling interest		4,421			83
Net income – Culp Inc. common shareholders		3,580			7,026
Net income per share (basic) – Culp Inc. common shareholders		0.29			0.56
Net income per share (diluted) – Culp Inc. common shareholders		0.29			0.56

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

Allowance for Doubtful Accounts (Tables)

9 Months Ended

Feb. 02, 2020

Receivables [Abstract]

Summary of the Activity in the Allowance for Doubtful Accounts

A summary of the activity in the allowance for doubtful accounts follows:

	Nine months ended
(dollars in thousands)	February 2, 2020			Janauary 27, 2019
Beginning balance	$	393		$	357
(Recovery) provision for bad debts		(16	)		78
Net write-offs, net of recoveries		—			(47	)
Ending balance	$	377		$	388

Revenue from Contracts with Customers (Tables)

9 Months Ended

Feb. 02, 2020

Revenue From Contract With Customer [Abstract]

Summary of Activity for Deferred Revenue

A summary of the activity of deferred revenue for the nine-month periods ended February 2, 2020, and January 27, 2019, follows:

	Nine months ended
(dollars in thousands)	February 2, 2020			January 27, 2019
Beginning balance	$	399		$	809
Revenue recognized on contract liabilities		(1,917	)		(2,171	)
Payments received for services not yet rendered		1,916			1,854
Ending balance	$	398		$	492

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 the three-month period ending February 2, 2020:

(dollars in thousands)	Mattress Fabrics		Upholstery Fabrics		Home Accessories		Total
Products transferred at a point in time	$	33,105	$	32,044	$	3,906	$	69,055
Services transferred over time		—		2,943		—		2,943
Total Net Sales	$	33,105	$	34,987	$	3,906	$	71,998

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the nine-month period ending February 2, 2020:

(dollars in thousands)	Mattress Fabrics		Upholstery Fabrics		Home Accessories		Total
Products transferred at a point in time	$	107,250	$	92,835	$	11,485	$	211,570
Services transferred over time		—		7,895		—		7,895
Total Net Sales	$	107,250	$	100,730	$	11,485	$	219,465

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the three-month period ending January 27, 2019:

(dollars in thousands)	Mattress Fabrics		Upholstery Fabrics		Home Accessories		Total
Products transferred at a point in time	$	35,732	$	34,730	$	4,390	$	74,852
Services transferred over time		—		2,374		—		2,374
Total Net Sales	$	35,732	$	37,104	$	4,390	$	77,226

The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the nine-month period ending January 27, 2019:

(dollars in thousands)	Mattress Fabrics		Upholstery Fabrics		Home Accessories		Total
Products transferred at a point in time	$	107,335	$	98,610	$	11,759	$	217,704
Services transferred over time		—		8,001		—		8,001
Total Net Sales	$	107,335	$	106,611	$	11,759	$	225,705

Inventories (Tables)

9 Months Ended

Feb. 02, 2020

Inventory Disclosure [Abstract]

Summary of Inventories

A summary of inventories follows:

(dollars in thousands)	February 2, 2020		January 27, 2019		April 28, 2019
Raw materials	$	7,607	$	5,745	$	5,617
Work-in-process		2,537		2,610		2,289
Finished goods		47,431		47,060		42,954
	$	57,575	$	55,415	$	50,860

Intangible Assets (Tables)

9 Months Ended

Feb. 02, 2020

Summary of Intangible Assets

A summary of intangible assets follows:

(dollars in thousands)	February 2, 2020		January 27, 2019		April 28, 2019
Tradenames	$	4,804	$	7,232	$	7,232
Customer relationships, net		2,313		2,613		2,538
Non-compete agreement, net		621		697		678
	$	7,738	$	10,542	$	10,448

Summary of Change in Acquired Tradenames

A summary of change in the carrying amount of our tradenames follows:

	Nine months ended
(dollars in thousands)	February 2, 2020			January 27, 2019
Beginning balance	$	7,232		$	683
Acquisition of business (note 3)		—			6,549
Impairment charge		(2,428	)		—
Ending balance	$	4,804		$	7,232

Customer Relationships [Member]

Summary of Change in Carrying Amount of Finite-Lived Intangible Assets

A summary of change in the carrying amount of our customer relationships follows:

	Nine months ended
(dollars in thousands)	February 2, 2020			January 27, 2019
Beginning balance	$	2,538		$	2,839
Amortization expense		(225	)		(226	)
Ending balance	$	2,313		$	2,613

Non-Compete Agreement [Member]

Summary of Change in Carrying Amount of Finite-Lived Intangible Assets

A summary of change in the carrying amount of our non-compete agreement follows:

	Nine months ended
(dollars in thousands)	February 2, 2020			January 27, 2019
Beginning balance	$	678		$	753
Amortization expense		(57	)		(56	)
Ending balance	$	621		$	697

Goodwill (Tables)

9 Months Ended

Feb. 02, 2020

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:

	Nine months ended
(dollars in thousands)	February 2, 2020			January 27, 2019
Beginning balance	$	27,222		$	13,569
Acquisition of business (see note 3)		—			13,653
Impairment charge		(11,211	)		—
Ending balance	$	16,011		$	27,222

Investment in Unconsolidated Joint Venture (Tables)

9 Months Ended

Feb. 02, 2020

Equity Method Investments And Joint Ventures [Abstract]

Summary of Equity Method Investment

The following table summarizes information on assets, liabilities, and members’ equity of our equity method investment in CLIH:

(dollars in thousands)	February 2, 2020		January 27, 2019		April 28, 2019
Total assets	$	3,502	$	3,255	$	3,126
Total liabilities	$	167	$	230	$	111
Total members’ equity	$	3,335	$	3,025	$	3,015

Accrued Expenses (Tables)

9 Months Ended

Feb. 02, 2020

Summary of Accrued Expenses

A summary of accrued expenses follows:

(dollars in thousands)	February 2, 2020		January 27, 2019		April 28, 2019
Compensation, commissions and related benefits	$	4,230	$	4,848	$	4,229
Interest		2		—		4
Other accrued expenses		3,743		4,892		5,292
	$	7,975	$	9,740	$	9,525

Exit and Disposal Activity (Tables)

9 Months Ended

Feb. 02, 2020

Restructuring And Related Activities [Abstract]

Summary Restructuring Credit (Expense) and Related Charges Associated With Exit and Disposal Activity

The following summarizes our restructuring credit and restructuring related charges that were associated with the above exit and disposal activity:

	Nine months ended
(dollars in thousands)	February 2, 2020			January 27, 2019
Inventory markdowns	$	—		$	1,564
Employee termination benefits		(70	)		661
Other operational costs associated with a closed plant facility		—			824
Gain on sale of equipment		—			(1,486	)
Restructuring credit and restructuring related charges (1) (2)	$	(70	)	$	1,563

(1)	The $70,000 credit was recorded to restructuring credit in the Consolidated Statements of Net (Loss) Income for the nine-month period ending February 2, 2020.

(2)

Summary of Activity in Restructuring Accrual

The following summarizes the activity in accrued restructuring costs:

	Nine months ended
(dollars in thousands)	February 2, 2020			January 27, 2019
Beginning balance	$	124		$	—
Accrual established in fiscal 2019		—			451
Payments		(54	)		(434	)
Adjustments		(70	)		211
Ending balance	$	—		$	228

Fair Value of Financial Instruments (Tables)

9 Months Ended

Feb. 02, 2020

Fair Value Disclosures [Abstract]

Schedule of Assets Measured at Fair Value on a Recurring Basis

The following table presents information about assets measured at fair value on a recurring basis:

Fair value measurements at February 2, 2020 using:

Quoted prices

in active

markets for

identical

assets

Significant

other

observable

inputs

Significant

unobservable

inputs

(amounts in thousands)

Level 1

Level 2

Level 3

Total

Assets:

Premier Money Market Fund

6,334

N/A

6,334

Short Term Bond Funds

4,743

N/A

4,743

Inflation Protected Bond Funds

2,837

N/A

2,837

Strategic Income Fund

1,001

N/A

1,001

Growth Allocation Fund

239

N/A

239

Moderate Allocation Fund

138

N/A

138

Other

N/A

Fair value measurements at January 27, 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:

Premier Money Market Fund

6,433

N/A

6,433

Growth Allocation Fund

184

N/A

184

Moderate Allocation Fund

119

N/A

119

Other

N/A

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:

Premier Money Market Fund

6,639

N/A

6,639

Growth Allocation Fund

203

N/A

203

Moderate Allocation Fund

127

N/A

127

Other

112

N/A

112

Schedule of Assets Measured at Fair Value on a Nonrecurring Basis

As of February 2, 2020, we had certain assets and a contingent consideration – earn-out obligation that were required to be measured at fair value on a nonrecurring basis.

Fair value measurements at February 2, 2020 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 (note 8)

N/A

2,442

Tradename (note 7)

N/A

4,121

Liabilities:

Contingent Consideration – Earn-Out Obligation (note 3)

N/A

—

Fair value measurements at January 27, 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

13,653

Tradename

N/A

6,549

Equipment

N/A

2,179

Inventory

N/A

1,804

Liabilities:

Contingent Consideration – Earn-Out Obligation

N/A

5,600

Cash Flow Information (Tables)

9 Months Ended

Feb. 02, 2020

Supplemental Cash Flow Elements [Abstract]

Schedule of Interest and Income Taxes Paid

Interest and income taxes paid are as follows:

	Nine months ended
(dollars in thousands)	February 2, 2020		January 27, 2019
Interest	$	48	$	54
Income taxes		4,500		6,226

Net (Loss) Income Per Share (Tables)

9 Months Ended

Feb. 02, 2020

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 (loss) income per share follows:

	Three months ended
(amounts in thousands)	February 2, 2020		January 27, 2019
Weighted average common shares outstanding, basic		12,409		12,438
Dilutive effect of stock-based compensation		—		27
Weighted average common shares outstanding, diluted		12,409		12,465

	Nine months ended
(amounts in thousands)	February 2, 2020		January 27, 2019
Weighted average common shares outstanding, basic		12,405		12,488
Dilutive effect of stock-based compensation		16		105
Weighted average common shares outstanding, diluted		12,421		12,593

Segment Information (Tables)

9 Months Ended

Feb. 02, 2020

Segment Reporting [Abstract]

Schedule of Operating Segments Information

Financial information for the company’s operating segments follows:

		Three months ended
		February 2, 2020				January 27, 2019
Net sales:
Mattress Fabrics		$	33,105			$	35,732
Upholstery Fabrics			34,987				37,104
Home Accessories			3,906				4,390
		$	71,998			$	77,226
Gross profit:
Mattress Fabrics		$	4,614			$	5,963
Upholstery Fabrics			6,906				7,624
Home Accessories			864				1,050
Total segment gross profit		$	12,384			$	14,637
Restructuring related charges			—		(4)		(514	)
		$	12,384			$	14,123
Selling, general, and administrative expenses
Mattress Fabrics		$	2,836			$	2,755
Upholstery Fabrics			3,876				3,825
Home Accessories			1,046				1,361
Unallocated corporate expenses			2,194				1,628
Total segment selling, general, and administrative expenses		$	9,952			$	9,569
Other non-recurring charges			—		(5)		429
Restructuring related charges			—		(5)		40
		$	9,952			$	10,038
Income (loss) from operations:
Mattress Fabrics		$	1,777			$	3,208
Upholstery Fabrics			3,030				3,799
Home Accessories			(181	)			(311	)
Unallocated corporate expenses			(2,194	)			(1,628	)
Total segment income from operations			2,432				5,068
Asset impairments	(1)		(13,639	)			—
Reversal of contingent consideration - earn-out obligation	(2)		6,081				—
Restructuring credit and restructuring related charges	(3)		35		(6)		(340	)
Other non-recurring charges			—		(5)		(429	)
Total (loss) income from operations			(5,091	)			4,299
Interest expense			(8	)			—
Interest income			242				251
Other expense			(267	)			(288	)
(Loss) income before income taxes		$	(5,124	)		$	4,262

(1)	Our home accessories segment incurred asset impairment charges totaling $13.6 million, of which $11.2 million and $2.4 million pertained to this segment’s goodwill and tradename, respectively.

(2)	We recorded a reversal of $6.1 million that pertained to a contingent earn-out obligation associated with the purchase of our 80% ownership interest in eLuxury, LLC.

(3)	The $35 restructuring credit pertains to employee termination benefits associated with our closed Anderson, SC upholstery fabrics facility.

(4)	Cost of sales for the three-month period ending January 27, 2019, includes a $514 restructuring related charge for operating costs associated with our closed upholstery fabrics facility located in Anderson, SC.

(5)

(6)

		Nine months ended
		February 2, 2020				January 27, 2019
Net sales:
Mattress Fabrics		$	107,250			$	107,335
Upholstery Fabrics			100,730				106,611
Home Accessories			11,485				11,759
		$	219,465			$	225,705
Gross profit:
Mattress Fabrics		$	16,553			$	17,050
Upholstery Fabrics			20,905				20,031
Home Accessories			2,395				3,435
Total segment gross profit		$	39,853			$	40,516
Other non-recurring charges			—		(8)		(159	)
Restructuring related charges			—		(9)		(2,349	)
		$	39,853			$	38,008
Selling, general, and administrative expenses
Mattress Fabrics		$	8,860			$	8,141
Upholstery Fabrics			11,528				10,985
Home Accessories			3,462				3,690
Unallocated corporate expenses			6,933				4,800
Total segment selling, general, and administrative expenses		$	30,783			$	27,616
Other non-recurring charges			—		(10)		518
Restructuring related charges			—		(5)		40
		$	30,783			$	28,174
Income (loss) from operations:
Mattress Fabrics		$	7,693			$	8,910
Upholstery Fabrics			9,378				9,044
Home Accessories			(1,068	)			(254	)
Unallocated corporate expenses			(6,933	)			(4,800	)
Total segment income from operations			9,070				12,900
Asset impairments	(1)		(13,639	)			—
Reversal of contingent consideration - earn-out obligation	(2)		6,081				—
Restructuring credit and restructuring related charges	(7)		70		(11)		(1,563	)
Other non-recurring charges			—		(12)		(678	)
Total income from operations			1,582				10,659
Interest expense			(47	)			(38	)
Interest income			732				552
Other expense			(441	)			(688	)
Income before income taxes		$	1,826			$	10,485

(7)	The $70 restructuring credit pertains to employee termination benefits associated with our closed Anderson, SC upholstery fabrics facility.

(8)	The $159 represents a non-recurring charge regarding employee termination benefits and other operational reorganization costs associated with our mattress fabrics segment.

(9)	The $2.4 million consists of restructuring related charges of $1.6 million for inventory markdowns and $784 for other operating costs associated with our closed upholstery fabrics facility located in Anderson, SC.

(10)	The $518 represents non-recurring charges of $429 for the accelerated vesting of a stock-based compensation agreement associated with unallocated corporate expenses and $89 for employee termination benefits and operational reorganization costs associated with our mattress fabrics segment.

(11)

(12)	The $678 represents non-recurring charges of $429 for the accelerated vesting of a stock-based compensation agreement and $249 regarding employee termination benefits and other operational reorganization costs associated with our mattress fabrics segment.

Balance sheet information for the company’s operating segments follows:

(dollars in thousands)	February 2, 2020		January 27, 2019		April 28, 2019
Segment assets:
Mattress Fabrics
Accounts receivable	$	12,940	$	12,373	$	12,098
Inventory		29,753		26,243		24,649
Assets held for sale		67		—		—
Property, plant and equipment (1)		42,368		45,845		44,266
Right of use assets (2)		426		—		—
Investment in unconsolidated joint venture		1,668		1,512		1,508
Total mattress fabrics assets		87,222		85,973		82,521
Upholstery Fabrics
Accounts receivable		12,908		13,367		11,274
Inventory		24,256		26,067		22,915
Property, plant and equipment (3)		1,675		1,957		1,795
Right of use assets (4)		2,143		—		—
Total upholstery fabrics assets		40,982		41,391		35,984
Home Accessories
Accounts receivable		766		402		379
Inventory		3,566		3,105		3,296
Property, plant and equipment (5)		1,728		1,985		1,910
Right of use assets (6)		949		—		—
Total home accessories assets		7,009		5,492		5,585
Total segment assets		135,213		132,856		124,090
Non-segment assets:
Cash and cash equivalents		21,872		26,418		40,008
Short-term investments (Held-to-Maturity)		3,171		13,544		5,001
Short-term investments (Available for Sale)		7,580		—		—
Current income taxes receivable		776		—		776
Other current assets		3,219		2,954		2,849
Deferred income taxes		920		3,224		457
Property, plant and equipment (7)		609		342		418
Right of use assets (8)		2,006		—		—
Goodwill		16,011		27,222		27,222
Intangible assets		7,738		10,542		10,448
Long-term investments (Rabbi Trust)		7,804		6,834		7,081
Long-term investments (Held-to-Maturity)		2,224		—		—
Noncurrent income taxes receivable		733		—		733
Other assets		464		972		643
Total assets	$	210,340	$	224,908	$	219,726

	Nine months ended
(dollars in thousands)	February 2, 2020		January 27, 2019
Capital expenditures (9):
Mattress Fabrics	$	3,416	$	2,342
Upholstery Fabrics		253		294
Home Accessories		104		33
Unallocated Corporate		398		11
Total capital expenditures	$	4,171	$	2,680
Depreciation expense:
Mattress Fabrics	$	5,017	$	5,265
Upholstery Fabrics		577		595
Home Accessories		286		227
Total depreciation expense	$	5,880	$	6,087

(1)

(2)	The $426 at February 2, 2020, represents right of use assets located in the U.S.

(3)

(4)	The $2.1 million at February 2, 2020, represents right of use assets of $1.1 million and $1.0 million located in China and the U.S., respectively

(5)	The $1.7 million at February 2, 2020, $2.0 million at January 27, 2019, and $1.9 million at April 28, 2019, represents property, plant and equipment located in the U.S.

(6)	The $949 million at February 2, 2020, represents right of use assets located in the U.S.

(7)

(8)	The $2.0 million at February 2, 2020, represents right of use assets located in the U.S.

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

Income Taxes (Tables)

9 Months Ended

Feb. 02, 2020

Income Tax Disclosure [Abstract]

Summary of Differences in Income Tax Expense at Federal Income Tax Rate and Effective Income Tax Rate

	2020			2019
U.S. federal income tax rate		21.0	%		21.0	%
Global Intangible Low Taxed Income Tax (GILTI)	58.2				2.6
Foreign income tax rate differential		35.7			10.1
Non-controlling interest income attributable to a consolidated partnership		21.0			-
Tax effects of Chinese foreign exchange gains		4.4			1.4
Change in estimate of U.S. valuation allowance	2.5				1.0
Stock-based compensation		1.2			0.7
Tax effects of the 2017 Tax Cuts and Jobs Act		-			(5.7	)
Other		(1.2	)		1.4
		142.8	%		32.5	%

Summary of Valuation Allowances Against Deferred Income Taxes

Based on our assessments at February 2, 2020, January 27, 2019, and April 28, 2019, valuation allowances against our deferred income taxes pertain to the following jurisdictions:

(dollars in thousands)	February 2, 2020		January 27, 2019		April 28, 2019
U.S. state loss carryforwards and credits	$	711		903		666
U.S. foreign income tax credits		—		4,550		82
	$	711		5,453		748

Stock-Based Compensation (Tables)

9 Months Ended

Feb. 02, 2020

Summary of Assumptions Used to Determine Fair Value of Performance Based Restricted Stock Units

	Fiscal 2020			Fiscal 2019			Fiscal 2018
Closing price of our common stock	$	18.49		$	24.35		$	32.50
Expected volatility of our common stock		30.0	%		33.5	%		31.0	%
Expected volatility of peer companies (1) (2)	29.9% - 82.3%				16.0	%		16.5	%
Risk-free interest rate		1.73	%		2.74	%		1.56	%
Dividend yield		2.10	%		1.35	%		1.66	%
Correlation coefficient of peer companies (1) (2)	0.00 – 0.43				0.47			0.46

(1)

(2)

Performance Based Restricted Stock Units [Member]

Summary of Vested Restricted Stock Units

Fiscal Year	Restricted Stock Units Vested		(3) Fair Value		Weighted Average Price Per Share
Fiscal 2020 (1)		9,489	$	165	$	17.36	(4)
Fiscal 2020 (2)		4,148	$	72	$	17.36	(4)
Fiscal 2019 (1)		128,632	$	3,754	$	29.19	(4)
Fiscal 2019 (2)		10,364	$	320	$	30.90	(4)

(1)	Certain senior executives 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.

Time Based Restricted Stock Units [Member]

Summary of Vested Restricted Stock Units

Fiscal Year

Restricted

Stock

Units Vested

(1) Fair Value

Weighted

Average

Price

Per Share

Fiscal 2020

—

Fiscal 2019

1,200

17.36

(2)

(1)	Dollar amounts are in thousands.

(2)	The weighted average price per share is derived from the closing prices of our common stock on the dates the respective time-based restricted stock units vested.

Executive officers 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 certain senior executives and key employees that are currently unvested:

Date of Grant	(3) Restricted Stock Units Awarded		Price Per Share			Vesting Period
July 18, 2019 (1)		93,653	$	19.04	(4)	3 years
July 18, 2019 (2)		30,426	$	18.49	(7)	3 years
August 2, 2018 (1)		86,599	$	18.51	(5)	3 years
August 2, 2018 (2)		47,800	$	24.35	(7)	3 years
July 13, 2017 (1)		78,195	$	31.85	(6)	3 years
July 13, 2017 (2)		44,000	$	32.50	(7)	3 years

(1)	Performance-based restricted stock units awarded to certain senior executives.

(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)

(5)

(6)

(7)	Price per share represents the closing price of our common stock on the date of grant.

Management [Member] | Time Vested Restricted Stock Awards [Member]

Summary of Grants of Time-Based Restricted Stock Awards

The following table summarizes information related to our grants of time-based restricted stock units associated with senior executives and key members of management that are currently unvested:

Date of Grant

Time Based

Stock Units

Awarded

Price Per

Vesting

Period

July 18, 2019

34,399

18.49

(1)

3 years

August 2, 2018

10,000

24.35

(1)

5 years

(1)	Price per share represents closing price of common stock on the date the respective award was granted

Leases (Tables)

9 Months Ended

Feb. 02, 2020

Assets And Liabilities Lessee [Abstract]

Summary of right of use asset and lease liabilities

The right of use asset and lease liabilities associated with our operating leases as of February 2, 2020, and April 29, 2019, are as follows:

(dollars in thousands)	February 2, 2020		(1) April 29, 2019
Right of use asset	$	5,524	$	7,191
Operating lease liability - current		2,227		2,629
Operating lease liability – noncurrent		3,160		4,473

(1)	Represents adoption date of Topic 842.

Supplemental Cash Flow Information

(dollars in thousands)

Three Months

Ended

February 2,

2020

Nine Months

Ended

February 2,

2020

Operating lease liability payments

671

2,079

Right of use assets exchanged for lease liabilities

322

344

Leases-Other Information

Other Information

Maturity of our operating lease liabilities for the remainder of fiscal 2020, the next subsequent four fiscal years, and thereafter follows:

(dollars in thousands)
2020	$	590
2021		2,161
2022		1,207
2023		767
2024		659
Thereafter		347
	$	5,731
Less: interest		(344	)
Present value of lease liabilities	$	5,387

Summary of weighted average remaining lease term and discount rate

As of February 2, 2020, the weighted average remaining lease term and discount rate for our operating leases follows:

Weighted average lease term		3.4 years
Weighted average discount rate			3.76	%

Significant Accounting Policies - Narrative (Detail) - USD ($)
$ in Thousands

Feb. 02, 2020

Apr. 29, 2019

Operating Lease Liability

$ 5,524

$ 7,191

^[1]

$ 5,387

Accounting Standards Update 2016-02 [Member]

Operating Lease Liability

7,200

$ 7,100

[1]	Represents adoption date of Topic 842.

Business Combinations - Narrative (Detail) - USD ($)

1 Months Ended

3 Months Ended

9 Months Ended

Jun. 22, 2018

Sep. 30, 2019

Aug. 31, 2018

Feb. 02, 2020

Nov. 03, 2019

Aug. 04, 2019

Feb. 02, 2020

Jan. 27, 2019

Apr. 28, 2019

^[1]

Oct. 28, 2018

Contingent consideration-earn-out obligation

$ 5,781,000

$ 5,856,000

Reversal of contingent consideration, earn-out obligation

^[2]

$ 6,081,000

Carrying amount of non-controlling interest

253,000

4,457,000

$ 4,314,000

$ 4,551,000

Capital contributions from non-controlling interest

^[3]

13,639,000

$ 13,639,000

$ 320,000

$ 40,000

Non-Controlling Interest [Member]

Capital contributions from non-controlling interest

$ 320,000

$ 40,000

Noncontrolling interest

20.00%

Majority ownership percentage acquired

80.00%

Consideration for acquisition

$ 18,130,000

Purchase price

12,500,000

Contingent consideration-earn-out obligation

5,600,000

Payment for acquisition

$ 11,600,000

$ 749,000

$ 185,000

Goodwill, statutory period deductible for income tax purposes

15 years

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.

Reversal of contingent consideration, earn-out obligation

6,100,000

Capital contributions from non-controlling interest

$ 4,100,000

$ 360,000

eLuxury [Member] | Minimum [Member] | Equipment [Member]

Property, plant and equipment, useful life

5 years

eLuxury [Member] | Maximum [Member] | Equipment [Member]

Property, plant and equipment, useful life

10 years

eLuxury [Member] | Selling, General and Administrative Expenses [Member]

Business acquisition costs

$ 270,000

eLuxury [Member] | Shareholders' equity attributable to Culp Inc. [Member]

Net income (loss) allocation percentage

70.00%

eLuxury [Member] | Non-Controlling Interest [Member]

Net income (loss) allocation percentage

30.00%

[1]	Derived from audited financial statements.
[2]	We recorded a reversal of $6.1 million that pertained to a contingent earn-out obligation associated with the purchase of our 80% ownership interest in eLuxury, LLC.
[3]	Our home accessories segment incurred asset impairment charges totaling $13.6 million, of which $11.2 million and $2.4 million pertained to this segment’s goodwill and tradename, respectively.

Business Combinations - Schedule of Allocation of Acquisition Cost to Assets Acquired and Liabilities Assumed (Detail) - USD ($)
$ in Thousands

Feb. 02, 2020

Apr. 28, 2019

^[1]

Jan. 27, 2019

Jun. 22, 2018

Apr. 29, 2018

$ 16,011

$ 27,222

$ 13,569

$ 13,653

Accounts receivable and other current assets

1,804

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]

Property, plant & equipment

2,179

eLuxury [Member] | Trade Names [Member]

Revenue From Contract With Customer [Abstract]

$ 6,549

[1]	Derived from audited financial statements.

Business Combinations - Schedule of Unaudited Pro Forma Consolidated Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Feb. 02, 2020	Jan. 27, 2019	Feb. 02, 2020	Jan. 27, 2019
Business Combinations [Abstract]
Net Sales	$ 71,998	$ 77,226	$ 219,465	$ 228,830
(Loss) income from operations	(5,091)	4,299	1,582	10,657
Net (loss) income	(4,207)	3,060	(841)	6,943
Net loss - noncontrolling interest	4,149	94	4,421	83
Net (loss) income – Culp Inc. common shareholders	$ (58)	$ 3,154	$ 3,580	$ 7,026
Net (loss) income per share (basic) – Culp Inc. common shareholders	$ 0.00	$ 0.25	$ 0.29	$ 0.56
Net (loss) income per share (diluted) – Culp Inc. common shareholders	$ 0.00	$ 0.25	$ 0.29	$ 0.56

Allowance for Doubtful Accounts - Summary of the Activity in the Allowance for Doubtful Accounts (Detail) - Allowance for doubtful accounts [Member] - USD ($) $ in Thousands	9 Months Ended
	Feb. 02, 2020	Jan. 27, 2019
Valuation and Qualifying Accounts Disclosure [Line Items]
Beginning balance	$ 393	$ 357
(Recovery) provision for bad debts	(16)	78
Net write-offs, net of recoveries		(47)
Ending balance	$ 377	$ 388

Revenue from Contracts with Customers - Narrative (Detail)	9 Months Ended
	Feb. 02, 2020 USD ($) Segment	Apr. 28, 2019 USD ($)	Jan. 27, 2019 USD ($)
Contract Assets and Liabilities [Line Items]
Number of operating segments \| Segment	3
Contract assets recognized \| $	$ 0	$ 0	$ 0
Minimum [Member]
Contract Assets and Liabilities [Line Items]
Contract with customers credit period	15 days
Maximum [Member]
Contract Assets and Liabilities [Line Items]
Contract with customers credit period	45 days

Revenue from Contracts with Customers - Summary of the activity for deferred revenue (Detail) - USD ($)
$ in Thousands

9 Months Ended

Feb. 02, 2020

Jan. 27, 2019

Revenue recognized on contract liabilities

$ 399

^[1]

$ 809

(1,917)

(2,171)

Payments received for services not yet rendered

1,916

1,854

$ 398

$ 492

[1]	Derived from audited financial statements.

Revenue from Contracts with Customers - Disaggregation of Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Feb. 02, 2020	Jan. 27, 2019	Feb. 02, 2020	Jan. 27, 2019
Disaggregation of Revenue [Line Items]
Total Net Sales	$ 71,998	$ 77,226	$ 219,465	$ 225,705
Transferred at Point in Time [Member] \| Product [Member]
Disaggregation of Revenue [Line Items]
Total Net Sales	69,055	74,852	211,570	217,704
Transferred over Time [Member \| Services [Member]
Disaggregation of Revenue [Line Items]
Total Net Sales	2,943	2,374	7,895	8,001
Mattress Fabrics [Member]
Disaggregation of Revenue [Line Items]
Total Net Sales	33,105	35,732	107,250	107,335
Mattress Fabrics [Member] \| Transferred at Point in Time [Member] \| Product [Member]
Disaggregation of Revenue [Line Items]
Total Net Sales	33,105	35,732	107,250	107,335
Upholstery Fabrics [Member]
Disaggregation of Revenue [Line Items]
Total Net Sales	34,987	37,104	100,730	106,611
Upholstery Fabrics [Member] \| Transferred at Point in Time [Member] \| Product [Member]
Disaggregation of Revenue [Line Items]
Total Net Sales	32,044	34,730	92,835	98,610
Upholstery Fabrics [Member] \| Transferred over Time [Member \| Services [Member]
Disaggregation of Revenue [Line Items]
Total Net Sales	2,943	2,374	7,895	8,001
Home Accessories [Member]
Disaggregation of Revenue [Line Items]
Total Net Sales	3,906	4,390	11,485	11,759
Home Accessories [Member] \| Transferred at Point in Time [Member] \| Product [Member]
Disaggregation of Revenue [Line Items]
Total Net Sales	$ 3,906	$ 4,390	$ 11,485	$ 11,759

Inventories - Summary of Inventories (Detail) - USD ($)
$ in Thousands

Feb. 02, 2020

Apr. 28, 2019

Jan. 27, 2019

Inventory Disclosure [Abstract]

Raw materials

$ 7,607

$ 5,617

$ 5,745

Work-in-process

2,537

2,289

2,610

Finished goods

47,431

42,954

47,060

$ 57,575

$ 50,860

^[1]

$ 55,415

[1]	Derived from audited financial statements.

Intangible Asset - Summary of Intangible Assets (Detail) - USD ($)
$ in Thousands

Feb. 02, 2020

Apr. 28, 2019

Jan. 27, 2019

Apr. 29, 2018

Intangible Assets [Line Items]

Tradenames

$ 4,804

$ 7,232

$ 683

Customer Relationships [Member]

7,738

10,448

^[1]

10,542

Intangible Assets [Line Items]

Finite-lived intangible assets, net

2,313

2,538

2,613

2,839

Non-Compete Agreement [Member]

Intangible Assets [Line Items]

Finite-lived intangible assets, net

$ 621

$ 678

$ 697

$ 753

[1]	Derived from audited financial statements.

Intangible Asset - Tradenames (Detail) - USD ($)	3 Months Ended		9 Months Ended
Intangible Asset - Tradenames (Detail) - USD ($)	Feb. 02, 2020	Jan. 27, 2019	Feb. 02, 2020	Jan. 27, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Beginning balance			$ 7,232,000	$ 683,000
Acquisition of business (note 3)				6,549,000
Impairment charge	$ (2,400,000)	$ 0	(2,428,000)	0
Ending balance	$ 4,804,000	$ 7,232,000	$ 4,804,000	$ 7,232,000

Intangible Assets - Narrative (Detail) - USD ($)	3 Months Ended		9 Months Ended
Intangible Assets - Narrative (Detail) - USD ($)	Feb. 02, 2020	Jan. 27, 2019	Feb. 02, 2020	Jan. 27, 2019	Apr. 28, 2019
Intangible Assets [Line Items]
Impairment charge	$ 2,400,000	$ 0	$ 2,428,000	$ 0
Gross carrying amount of customer relationships	3,100,000	3,100,000	3,100,000	3,100,000	$ 3,100,000
Gross carrying amount of non-compete agreement	2,000,000	2,000,000	2,000,000	2,000,000	2,000,000
Customer Relationships [Member]
Intangible Assets [Line Items]
Accumulated amortization	802,000	502,000	802,000	502,000	577,000
Remaining amortization expense for the fiscal year	76,000		76,000
Remaining amortization expense for the second fiscal year	301,000		301,000
Remaining amortization expense for the third fiscal year	301,000		301,000
Remaining amortization expense for the fourth fiscal year	301,000		301,000
Remaining amortization expense for the fifth fiscal year	301,000		301,000
Remaining amortization expense for the fiscal year thereafter	1,033,000		$ 1,033,000
Weighted average remaining amortization period			7 years 10 months 24 days
Customer Relationships [Member] \| Maximum [Member]
Intangible Assets [Line Items]
Useful life			17 years
Customer Relationships [Member] \| Minimum [Member]
Intangible Assets [Line Items]
Useful life			9 years
Non-Compete Agreement [Member]
Intangible Assets [Line Items]
Useful life			15 years
Accumulated amortization	1,400,000	$ 1,300,000	$ 1,400,000	$ 1,300,000	$ 1,400,000
Remaining amortization expense for the fiscal year	19,000		19,000
Remaining amortization expense for the second fiscal year	75,000		75,000
Remaining amortization expense for the third fiscal year	75,000		75,000
Remaining amortization expense for the fourth fiscal year	75,000		75,000
Remaining amortization expense for the fifth fiscal year	75,000		75,000
Remaining amortization expense for the fiscal year thereafter	$ 302,000		$ 302,000
Weighted average remaining amortization period			8 years 3 months 18 days

Intangible Assets - Summary of Change in Carrying Amount of Finite-Lived Intangible Assets (Detail) - USD ($) $ in Thousands	9 Months Ended
	Feb. 02, 2020	Jan. 27, 2019
Customer Relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Beginning balance	$ 2,538	$ 2,839
Amortization expense	(225)	(226)
Ending balance	2,313	2,613
Non-Compete Agreement [Member]
Finite-Lived Intangible Assets [Line Items]
Beginning balance	678	753
Amortization expense	(57)	(56)
Ending balance	$ 621	$ 697

Goodwill - Summary of Change in Carrying Amount of Goodwill (Detail) - USD ($)

3 Months Ended

9 Months Ended

Feb. 02, 2020

Jan. 27, 2019

Feb. 02, 2020

Jan. 27, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Acquisition of business (see note 3)

$ 27,222,000

^[1]

$ 13,569,000

13,653,000

Impairment charge

$ (11,200,000)

$ 0

(11,211,000)

Schedule of Equity Method Investments [Line Items]

$ 16,011,000

$ 27,222,000

$ 16,011,000

$ 27,222,000

[1]	Derived from audited financial statements.

Goodwill - Narrative (Detail) - USD ($)	3 Months Ended		9 Months Ended
Goodwill - Narrative (Detail) - USD ($)	Feb. 02, 2020	Jan. 27, 2019	Feb. 02, 2020	Jan. 27, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Impairment charge	$ 11,200,000	$ 0	$ 11,211,000	$ 0

Investment in Unconsolidated Joint Venture - Narrative (Detail) - USD ($)

3 Months Ended

9 Months Ended

Feb. 02, 2020

Jan. 27, 2019

Feb. 02, 2020

Jan. 27, 2019

Apr. 28, 2019

Income (loss) from investment in unconsolidated joint venture

$ (56,000)

$ 23,000

$ (60,000)

$ (109,000)

Schedule of Equity Method Investments [Line Items]

1,668,000

1,512,000

1,668,000

1,512,000

$ 1,508,000

^[1]

CLIH [Member]

Unconsolidated joint venture, net Income (loss)

(120,000)

(218,000)

Income (loss) from investment in unconsolidated joint venture

(60,000)

(109,000)

Long-term accrued expenses

$ 1,700,000

$ 1,500,000

$ 1,700,000

$ 1,500,000

[1]	Derived from audited financial statements.

Investment in Unconsolidated Joint Venture - Summary of Equity Method Investment (Detail) - CLIH [Member] - USD ($) $ in Thousands	Feb. 02, 2020	Apr. 28, 2019	Jan. 27, 2019
Schedule of Equity Method Investments [Line Items]
Total assets	$ 3,502	$ 3,126	$ 3,255
Total liabilities	167	111	230
Total members’ equity	$ 3,335	$ 3,015	$ 3,025

Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands	Feb. 02, 2020	Apr. 28, 2019	Jan. 27, 2019
Payables And Accruals [Abstract]
Compensation, commissions and related benefits	$ 4,230	$ 4,229	$ 4,848
Interest	2	4
Other accrued expenses	3,743	5,292	4,892
Accrued expenses	$ 7,975	$ 9,525	$ 9,740

Accrued Expenses - Narrative (Detail) - USD ($)
$ in Thousands

Feb. 02, 2020

Apr. 28, 2019

Jan. 27, 2019

Payables And Accruals [Abstract]

Accrued expenses

$ 7,975

$ 9,525

$ 9,740

Current accrued expenses

7,742

9,192

^[1]

$ 9,740

$ 233

$ 333

^[1]

[1]	Derived from audited financial statements.

Exit and Disposal Activity - Summary of Restructuring Credit and Related Charges Associated with Exit and Disposal Activity (Detail) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Feb. 02, 2020

^[1]

Jan. 27, 2019

Feb. 02, 2020

Jan. 27, 2019

Gain on sale of equipment

$ (276)

$ (1,456)

Restructuring credit and restructuring related charges

$ (35)

$ 340

^[2]

(70)

^[3]

1,563

^[4]

Upholstery Fabrics [Member]

Inventory markdowns

1,564

Other operational costs associated with a closed plant facility

(70)

661

824

Gain on sale of equipment

(362)

(1,486)

Restructuring credit and restructuring related charges

$ 340

$ (70)

^[5],[6]

$ 1,563

^[5],[6]

[1]	The $35 restructuring credit pertains to employee termination benefits associated with our closed Anderson, SC upholstery fabrics facility.
[2]	The $340 represents restructuring related charges totaling $554 disclosed in notes 4 and 5 above, partially offset by a restructuring credit of $214. The $214 restructuring credit represents a $362 gain on the sale of the building and land associated with our Anderson, SC upholstery fabrics facility, partially offset by a charge of $148 for employee termination benefits.
[3]	The $70 restructuring credit pertains to employee termination benefits associated with our closed Anderson, SC upholstery fabrics facility.
[4]	The $1.6 million represents related charges disclosed in note 9 above and $40 associated with the accelerated vesting of a stock-based compensation agreement, partially offset by a restructuring credit of $825. The $825 restructuring credit represents a $1.5 million gain on the sale of property, plant, and equipment associated with our Anderson, SC upholstery fabrics facility, partially offset by a charge of $661 for employee termination benefits.
[5]	Of the total net charge, a $2.3 million charge, a charge of $40,000, and a credit of $825,000 were recorded in cost of sales, selling, general and administrative expenses, and restructuring credit, respectively, in the Consolidated Statements of Net Income for the nine-month period ending January 27, 2019.
[6]	The $70,000 credit was recorded to restructuring credit in the Consolidated Statements of Net (Loss) Income for the nine-month period ending February 2, 2020.

Exit and Disposal Activity - Summary of Restructuring Credit and Related Charges Associated with Exit and Disposal Activity (Parenthetical) (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Feb. 02, 2020	Jan. 27, 2019	Feb. 02, 2020	Jan. 27, 2019
Restructuring credit	$ 35,000	$ 214,000	$ 70,000	$ 825,000
Upholstery Fabrics [Member]
Restructuring credit		214,000	$ 70,000	825,000
Restructuring Related Charges		554,000
Upholstery Fabrics [Member] \| Cost of Sales [Member]
Restructuring Related Charges		$ 514,000		2,300,000
Upholstery Fabrics [Member] \| Selling, General and Administrative Expenses [Member]
Restructuring Related Charges				$ 40,000

Exit and Disposal Activity - Summary of Activity in Restructuring Accrual (Detail) - USD ($)
$ in Thousands

9 Months Ended

Feb. 02, 2020

Jan. 27, 2019

^[1]

$ 124

Upholstery Fabrics [Member] | Employee Termination Benefits [Member]

$ 228

Accrual established in fiscal 2019

124

451

Payments

(54)

(434)

Adjustments

$ (70)

211

$ 228

[1]	Derived from audited financial statements.

Lines of Credit - Narrative (Detail)

9 Months Ended

Feb. 02, 2020

USD ($)

Feb. 02, 2020

CNY (¥)

Apr. 28, 2019

USD ($)

Jan. 27, 2019

USD ($)

subordinated loan outstanding amount

$ 925,000

$ 675,000

^[1]

Revolving Credit Facility [Member]

subordinated loan outstanding amount

925,000

$ 675,000

Revolving Credit Facility [Member] | Subordinated Debt [Member]

Maximum borrowing capacity

$ 1,000,000

Expiration date

Jun. 22, 2023

Applicable interest rate at end of period

3.36%

Reference rate on which the interest rate is based

LIBOR based on Culp’s ratio of debt to EBITDA plus 25 basis points.

subordinated loan commitment initiation date

Feb. 07, 2019

Debt Instrument, Basis Spread on Variable Rate

0.25%

United States [Member] | Revolving Credit Facility [Member]

Maximum borrowing capacity

$ 25,000,000

Maximum amount of letters of credit

$ 1,000,000

Expiration date

Aug. 15, 2020

Applicable interest rate at end of period

3.11%

3.93%

3.95%

Interest rate description

Interest was charged at a rate as a variable spread over LIBOR based on our ratio of debt to EBITDA.

Reference rate on which the interest rate is based

LIBOR

Percentage of common stock in subsidiary pledge as collateral

65.00%

Outstanding amount

$ 0

Letters of credit, outstanding amount

250,000

China [Member] | Revolving credit agreement [Member]

Maximum borrowing capacity

$ 5,800,000

¥ 40,000,000

Expiration date

Dec. 04, 2020

Interest rate description

This agreement has an interest rate determined by the Chinese government

Outstanding amount

$ 0

[1]	Derived from audited financial statements.

Fair Value of Financial Instruments - Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Feb. 02, 2020	Apr. 28, 2019	Jan. 27, 2019
Premier Money Market Fund [Member]
Assets:
Investments at fair value	$ 6,334	$ 6,639	$ 6,433
Short Term Bond Funds [Member]
Assets:
Investments at fair value	4,743
Inflation Protected Bond Funds [Member]
Assets:
Investments at fair value	2,837
Strategic Income Fund [Member]
Assets:
Investments at fair value	1,001
Growth Allocation Fund [Member]
Assets:
Investments at fair value	239	203	184
Moderate Allocation Fund [Member]
Assets:
Investments at fair value	138	127	119
Other [Member]
Assets:
Investments at fair value	92	112	98
Quoted prices in active markets for identical assets - Level 1 [Member] \| Premier Money Market Fund [Member]
Assets:
Investments at fair value	6,334	6,639	6,433
Quoted prices in active markets for identical assets - Level 1 [Member] \| Short Term Bond Funds [Member]
Assets:
Investments at fair value	4,743
Quoted prices in active markets for identical assets - Level 1 [Member] \| Inflation Protected Bond Funds [Member]
Assets:
Investments at fair value	2,837
Quoted prices in active markets for identical assets - Level 1 [Member] \| Strategic Income Fund [Member]
Assets:
Investments at fair value	1,001
Quoted prices in active markets for identical assets - Level 1 [Member] \| Growth Allocation Fund [Member]
Assets:
Investments at fair value	239	203	184
Quoted prices in active markets for identical assets - Level 1 [Member] \| Moderate Allocation Fund [Member]
Assets:
Investments at fair value	138	127	119
Quoted prices in active markets for identical assets - Level 1 [Member] \| Other [Member]
Assets:
Investments at fair value	$ 92	$ 112	$ 98

Fair Value of Financial Instruments - Narrative (Detail) - USD ($)

9 Months Ended

Feb. 02, 2020

Apr. 28, 2019

Jan. 27, 2019

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Held to maturity investments

$ 5,400,000

$ 5,000,000

$ 13,500,000

Held to maturity investments, fair value

5,400,000

5,000,000

13,500,000

Long-term investments (Rabbi Trust)

7,580,000

7,804,000

7,081,000

^[1]

6,834,000

Short-term Investments [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Accumulated unrealized gain (loss) on investments

48,000

Long-term investments (Rabbi Trust) [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Accumulated unrealized gain (loss) on investments

$ 56,000

$ 40,000

$ 9,000

Minimum [Member] | Held-To-Maturity Investments [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Long-term investments, maturity period

1 year

Maximum [Member] | Held-To-Maturity Investments [Member]

Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]

Long-term investments, maturity period

3 years

[1]	Derived from audited financial statements.

Fair Value of Financial Instruments - Nonrecurring Basis (Detail) - USD ($)
$ in Thousands

Feb. 02, 2020

Apr. 28, 2019

^[1]

Jan. 27, 2019

Jun. 22, 2018

Assets:

$ 57,575

$ 50,860

$ 55,415

$ 5,856

$ 5,781

Fair Value, Measurements, Nonrecurring [Member]

$ 5,600

Assets:

Fair Value, Measurements, Nonrecurring [Member] | Trade Names [Member]

2,442

Assets:

Fair Value, Measurements, Nonrecurring [Member] | eLuxury [Member]

4,121

Assets:

13,653

1,804

Fair Value, Measurements, Nonrecurring [Member] | eLuxury [Member] | Equipment [Member]

5,600

Assets:

Equipment

2,179

Fair Value, Measurements, Nonrecurring [Member] | eLuxury [Member] | Trade Names [Member]

Assets:

Fair Value, Measurements, Nonrecurring [Member] | Significant unobservable inputs - Level 3 [Member]

6,549

Assets:

Fair Value, Measurements, Nonrecurring [Member] | Significant unobservable inputs - Level 3 [Member] | Trade Names [Member]

2,442

Assets:

Fair Value, Measurements, Nonrecurring [Member] | Significant unobservable inputs - Level 3 [Member] | eLuxury [Member]

$ 4,121

Assets:

13,653

1,804

Fair Value, Measurements, Nonrecurring [Member] | Significant unobservable inputs - Level 3 [Member] | eLuxury [Member] | Equipment [Member]

5,600

Assets:

Equipment

2,179

Fair Value, Measurements, Nonrecurring [Member] | Significant unobservable inputs - Level 3 [Member] | eLuxury [Member] | Trade Names [Member]

Assets:

$ 6,549

[1]	Derived from audited financial statements.

Cash Flow Information - Interest and Income Taxes Paid (Detail) - USD ($) $ in Thousands	9 Months Ended
	Feb. 02, 2020	Jan. 27, 2019
Supplemental Cash Flow Elements [Abstract]
Interest	$ 48	$ 54
Income taxes	$ 4,500	$ 6,226

Net (Loss) Income Per Share - Schedule of Weighted Average Shares Used in the Computation of Basic and Diluted Net (Loss) Income Per Share (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Feb. 02, 2020	Jan. 27, 2019	Feb. 02, 2020	Jan. 27, 2019
Earnings Per Share [Abstract]
Weighted average common shares outstanding, basic	12,409	12,438	12,405	12,488
Dilutive effect of stock-based compensation		27	16	105
Weighted average common shares outstanding, diluted	12,409	12,465	12,421	12,593

Net (Loss) Income Per Share - Narrative (Detail) - Common Stock Awards [Member] - shares	3 Months Ended		9 Months Ended
	Feb. 02, 2020	Jan. 27, 2019	Feb. 02, 2020
Shares excluded from computation of diluted net loss per share	10,793
Antidilutive securities due to decrease in stock price excluded from computation of earnings per share		723	5,853

Segment Information - Narrative (Detail)	9 Months Ended
Segment Information - Narrative (Detail)	Feb. 02, 2020 Segment
Segment Reporting [Abstract]
Number of business segments	3
Description of changes in reporting goodwill and intangible assets in segment assets	Goodwill and intangible assets are not included 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.

Segment Information - Statement of Operations for Operating Segments (Detail) - USD ($)

3 Months Ended

9 Months Ended

Feb. 02, 2020

Jan. 27, 2019

Feb. 02, 2020

Jan. 27, 2019

$ 71,998,000

$ 77,226,000

$ 219,465,000

$ 225,705,000

12,384,000

14,123,000

39,853,000

38,008,000

9,952,000

10,038,000

30,783,000

28,174,000

(678,000)

(5,091,000)

4,299,000

1,582,000

10,659,000

Reversal of contingent consideration, earn-out obligation

^[1]

(13,639,000)

^[2]

6,081,000

Restructuring credit and restructuring related charges

35,000

^[3]

(340,000)

^[4]

70,000

^[5]

(1,563,000)

^[6]

Interest expense

(8,000)

(47,000)

(38,000)

Interest income

242,000

251,000

732,000

552,000

Other expense

(267,000)

(288,000)

(441,000)

(688,000)

(Loss) income before income taxes

(5,124,000)

4,262,000

1,826,000

10,485,000

Mattress Fabrics [Member]

Upholstery Fabrics [Member]

33,105,000

35,732,000

107,250,000

107,335,000

34,987,000

37,104,000

100,730,000

106,611,000

Restructuring credit and restructuring related charges

(554,000)

(340,000)

70,000

^[7],[8]

(1,563,000)

^[7],[8]

Home Accessories [Member]

3,906,000

4,390,000

11,485,000

11,759,000

Operating Segments [Member]

(13,600,000)

12,384,000

14,637,000

39,853,000

40,516,000

9,952,000

9,569,000

30,783,000

27,616,000

Operating Segments [Member] | Mattress Fabrics [Member]

2,432,000

5,068,000

9,070,000

12,900,000

33,105,000

35,732,000

107,250,000

107,335,000

4,614,000

5,963,000

16,553,000

17,050,000

2,836,000

2,755,000

8,860,000

8,141,000

^[9]

(678,000)

Operating Segments [Member] | Upholstery Fabrics [Member]

1,777,000

3,208,000

7,693,000

8,910,000

34,987,000

37,104,000

100,730,000

106,611,000

6,906,000

7,624,000

20,905,000

20,031,000

3,876,000

3,825,000

11,528,000

10,985,000

Restructuring credit and restructuring related charges

3,030,000

3,799,000

9,378,000

9,044,000

(1,600,000)

Operating Segments [Member] | Home Accessories [Member]

3,906,000

4,390,000

11,485,000

11,759,000

864,000

1,050,000

2,395,000

3,435,000

1,046,000

1,361,000

3,462,000

3,690,000

(181,000)

(311,000)

(1,068,000)

(254,000)

2,194,000

1,628,000

6,933,000

4,800,000

^[10]

(429,000)

Unallocated Corporate [Member] | Upholstery Fabrics [Member]

$ (2,194,000)

(1,628,000)

$ (6,933,000)

(4,800,000)

Cost of Sales [Member] | Upholstery Fabrics [Member]

(469,000)

Cost of Sales [Member] | Operating Segments [Member] | Mattress Fabrics [Member]

(514,000)

(2,300,000)

Cost of Sales [Member] | Operating Segments [Member] | Upholstery Fabrics [Member]

^[11]

(159,000)

Selling, General and Administrative Expenses [Member]

514,000

^[12]

(2,349,000)

^[13]

Selling, General and Administrative Expenses [Member] | Upholstery Fabrics [Member]

^[14]

(518,000)

Selling, General and Administrative Expenses [Member] | Operating Segments [Member] | Upholstery Fabrics [Member]

(40,000)

Selling, General and Administrative Expenses [Member] | Unallocated Corporate [Member]

^[10]

(40,000)

$ (429,000)

^[10]

$ (429,000)

[1]	Our home accessories segment incurred asset impairment charges totaling $13.6 million, of which $11.2 million and $2.4 million pertained to this segment’s goodwill and tradename, respectively.
[2]	We recorded a reversal of $6.1 million that pertained to a contingent earn-out obligation associated with the purchase of our 80% ownership interest in eLuxury, LLC.
[3]	The $35 restructuring credit pertains to employee termination benefits associated with our closed Anderson, SC upholstery fabrics facility.
[4]	The $340 represents restructuring related charges totaling $554 disclosed in notes 4 and 5 above, partially offset by a restructuring credit of $214. The $214 restructuring credit represents a $362 gain on the sale of the building and land associated with our Anderson, SC upholstery fabrics facility, partially offset by a charge of $148 for employee termination benefits.
[5]	The $70 restructuring credit pertains to employee termination benefits associated with our closed Anderson, SC upholstery fabrics facility.
[6]	The $1.6 million represents related charges disclosed in note 9 above and $40 associated with the accelerated vesting of a stock-based compensation agreement, partially offset by a restructuring credit of $825. The $825 restructuring credit represents a $1.5 million gain on the sale of property, plant, and equipment associated with our Anderson, SC upholstery fabrics facility, partially offset by a charge of $661 for employee termination benefits.
[7]	Of the total net charge, a $2.3 million charge, a charge of $40,000, and a credit of $825,000 were recorded in cost of sales, selling, general and administrative expenses, and restructuring credit, respectively, in the Consolidated Statements of Net Income for the nine-month period ending January 27, 2019.
[8]	The $70,000 credit was recorded to restructuring credit in the Consolidated Statements of Net (Loss) Income for the nine-month period ending February 2, 2020.
[9]	The $678 represents non-recurring charges of $429 for the accelerated vesting of a stock-based compensation agreement and $249 regarding employee termination benefits and other operational reorganization costs associated with our mattress fabrics segment.
[10]	Selling, general, and administrative expenses for the three-months ending January 27, 2019, includes a $469 non-recurring charge associated with the accelerated vesting of certain stock-based compensation agreements. Of this $469 non-recurring charge, $429 and $40 pertain to unallocated corporate expenses and a restructuring related charge, respectively, associated with our closed Anderson, SC upholstery fabrics plant facility.
[11]	The $159 represents a non-recurring charge regarding employee termination benefits and other operational reorganization costs associated with our mattress fabrics segment.
[12]	Cost of sales for the three-month period ending January 27, 2019, includes a $514 restructuring related charge for operating costs associated with our closed upholstery fabrics facility located in Anderson, SC.
[13]	The $2.4 million consists of restructuring related charges of $1.6 million for inventory markdowns and $784 for other operating costs associated with our closed upholstery fabrics facility located in Anderson, SC.
[14]	The $518 represents non-recurring charges of $429 for the accelerated vesting of a stock-based compensation agreement associated with unallocated corporate expenses and $89 for employee termination benefits and operational reorganization costs associated with our mattress fabrics segment.

Segment Information - Statement of Operations for Operating Segments (Parenthetical) (Detail) - USD ($)

3 Months Ended

9 Months Ended

Feb. 02, 2020

Jan. 27, 2019

Feb. 02, 2020

Jan. 27, 2019

Reversal of contingent consideration - earn-out obligation

^[1]

$ 13,639,000

^[2]

(6,081,000)

35,000

$ 214,000

70,000

$ 825,000

Restructuring credit and related charges

678,000

(35,000)

^[3]

340,000

^[4]

(70,000)

^[5]

1,563,000

^[6]

Gain on sale of property, plant, and equipment

276,000

1,456,000

Selling, General and Administrative Expenses [Member]

^[7]

429,000

Selling, General and Administrative Expenses [Member] | Unallocated Corporate [Member]

^[8]

518,000

429,000

^[7]

429,000

Reversal of contingent consideration - earn-out obligation

$ 6,100,000

Majority ownership percentage acquired

80.00%

Home Accessories [Member]

Upholstery Fabrics [Member]

$ 13,600,000

214,000

70,000

825,000

Restructuring credit and related charges

554,000

340,000

(70,000)

^[9],[10]

1,563,000

^[9],[10]

Gain on sale of property, plant, and equipment

362,000

1,486,000

Restructuring related charge for other operating costs

(70,000)

661,000

Inventory markdowns

1,564,000

824,000

Upholstery Fabrics [Member] | Unallocated Corporate [Member]

Upholstery Fabrics [Member] | Operating Segments [Member]

469,000

Restructuring credit and related charges

825,000

1,600,000

Gain on sale of property, plant, and equipment

1,500,000

Upholstery Fabrics [Member] | Cost of Sales [Member]

661,000

Upholstery Fabrics [Member] | Cost of Sales [Member] | Operating Segments [Member]

514,000

2,300,000

Restructuring related charge for other operating costs

(514,000)

^[11]

2,349,000

^[12]

Inventory markdowns

1,600,000

784,000

Upholstery Fabrics [Member] | Selling, General and Administrative Expenses [Member]

Upholstery Fabrics [Member] | Selling, General and Administrative Expenses [Member] | Operating Segments [Member]

40,000

Upholstery Fabrics [Member] | Employee Termination Benefits [Member]

^[7]

40,000

Mattress Fabrics [Member] | Operating Segments [Member]

35,000

$ 148,000

70,000

661,000

^[13]

678,000

Mattress Fabrics [Member] | Cost of Sales [Member] | Operating Segments [Member]

249,000

Mattress Fabrics [Member] | Selling, General and Administrative Expenses [Member] | Operating Segments [Member]

^[14]

159,000

Goodwill [Member] | Home Accessories [Member]

$ 89,000

Trade Names [Member] | Home Accessories [Member]

11,200,000

$ 2,400,000

[1]	Our home accessories segment incurred asset impairment charges totaling $13.6 million, of which $11.2 million and $2.4 million pertained to this segment’s goodwill and tradename, respectively.
[2]	We recorded a reversal of $6.1 million that pertained to a contingent earn-out obligation associated with the purchase of our 80% ownership interest in eLuxury, LLC.
[3]	The $35 restructuring credit pertains to employee termination benefits associated with our closed Anderson, SC upholstery fabrics facility.
[4]	The $340 represents restructuring related charges totaling $554 disclosed in notes 4 and 5 above, partially offset by a restructuring credit of $214. The $214 restructuring credit represents a $362 gain on the sale of the building and land associated with our Anderson, SC upholstery fabrics facility, partially offset by a charge of $148 for employee termination benefits.
[5]	The $70 restructuring credit pertains to employee termination benefits associated with our closed Anderson, SC upholstery fabrics facility.
[6]	The $1.6 million represents related charges disclosed in note 9 above and $40 associated with the accelerated vesting of a stock-based compensation agreement, partially offset by a restructuring credit of $825. The $825 restructuring credit represents a $1.5 million gain on the sale of property, plant, and equipment associated with our Anderson, SC upholstery fabrics facility, partially offset by a charge of $661 for employee termination benefits.
[7]	Selling, general, and administrative expenses for the three-months ending January 27, 2019, includes a $469 non-recurring charge associated with the accelerated vesting of certain stock-based compensation agreements. Of this $469 non-recurring charge, $429 and $40 pertain to unallocated corporate expenses and a restructuring related charge, respectively, associated with our closed Anderson, SC upholstery fabrics plant facility.
[8]	The $518 represents non-recurring charges of $429 for the accelerated vesting of a stock-based compensation agreement associated with unallocated corporate expenses and $89 for employee termination benefits and operational reorganization costs associated with our mattress fabrics segment.
[9]	Of the total net charge, a $2.3 million charge, a charge of $40,000, and a credit of $825,000 were recorded in cost of sales, selling, general and administrative expenses, and restructuring credit, respectively, in the Consolidated Statements of Net Income for the nine-month period ending January 27, 2019.
[10]	The $70,000 credit was recorded to restructuring credit in the Consolidated Statements of Net (Loss) Income for the nine-month period ending February 2, 2020.
[11]	Cost of sales for the three-month period ending January 27, 2019, includes a $514 restructuring related charge for operating costs associated with our closed upholstery fabrics facility located in Anderson, SC.
[12]	The $2.4 million consists of restructuring related charges of $1.6 million for inventory markdowns and $784 for other operating costs associated with our closed upholstery fabrics facility located in Anderson, SC.
[13]	The $678 represents non-recurring charges of $429 for the accelerated vesting of a stock-based compensation agreement and $249 regarding employee termination benefits and other operational reorganization costs associated with our mattress fabrics segment.
[14]	The $159 represents a non-recurring charge regarding employee termination benefits and other operational reorganization costs associated with our mattress fabrics segment.

Segment Information - Balance Sheet Information by Operating Segments (Detail) - USD ($)

9 Months Ended

Feb. 02, 2020

Jan. 27, 2019

Apr. 29, 2019

^[2]

Apr. 28, 2019

Apr. 29, 2018

Cash and cash equivalents

$ 57,575,000

$ 55,415,000

$ 50,860,000

^[1]

Assets held for sale

67,000

21,872,000

26,418,000

40,008,000

^[1]

Short-term investments (Held-to-Maturity)

3,171,000

13,544,000

5,001,000

^[1]

Current income taxes receivable

7,580,000

776,000

^[1]

3,219,000

2,954,000

2,849,000

^[1]

920,000

3,224,000

457,000

^[1]

46,380,000

50,129,000

48,389,000

^[1]

5,524,000

$ 7,191,000

16,011,000

27,222,000

^[1]

$ 13,569,000

Long-term investments (Rabbi Trust)

7,738,000

10,542,000

10,448,000

^[1]

7,804,000

6,834,000

7,081,000

^[1]

Long-term investments - Held-To-Maturity

2,224,000

Noncurrent income taxes receivable

733,000

^[1]

464,000

972,000

643,000

^[1]

1,668,000

1,512,000

1,508,000

^[1]

210,340,000

224,908,000

219,726,000

^[1]

^[3]

4,171,000

2,680,000

Operating Segments [Member]

5,880,000

6,087,000

135,213,000

132,856,000

124,090,000

Operating Segments [Member] | Mattress Fabrics [Member]

5,880,000

6,087,000

12,940,000

12,373,000

12,098,000

29,753,000

26,243,000

24,649,000

Assets held for sale

67,000

^[4]

42,368,000

45,845,000

44,266,000

^[5]

426,000

1,668,000

1,512,000

1,508,000

87,222,000

85,973,000

82,521,000

^[3]

3,416,000

2,342,000

Operating Segments [Member] | Upholstery Fabrics [Member]

5,017,000

5,265,000

12,908,000

13,367,000

11,274,000

24,256,000

26,067,000

22,915,000

^[6]

1,675,000

1,957,000

1,795,000

^[7]

2,143,000

40,982,000

41,391,000

35,984,000

^[3]

253,000

294,000

Operating Segments [Member] | Home Accessories [Member]

577,000

595,000

766,000

402,000

379,000

3,566,000

3,105,000

3,296,000

^[8]

1,728,000

1,985,000

1,910,000

^[9]

949,000

7,009,000

5,492,000

5,585,000

^[3]

104,000

33,000

286,000

227,000

Cash and cash equivalents

21,872,000

26,418,000

40,008,000

Short-term investments (Held-to-Maturity)

3,171,000

13,544,000

5,001,000

Current income taxes receivable

7,580,000

776,000

3,219,000

2,954,000

2,849,000

920,000

3,224,000

457,000

^[10]

609,000

342,000

418,000

^[11]

2,006,000

16,011,000

27,222,000

Long-term investments (Rabbi Trust)

7,738,000

10,542,000

10,448,000

7,804,000

6,834,000

7,081,000

Long-term investments - Held-To-Maturity

2,224,000

Noncurrent income taxes receivable

733,000

464,000

972,000

643,000

210,340,000

224,908,000

$ 219,726,000

^[3]

$ 398,000

$ 11,000

[1]	Derived from audited financial statements.
[2]	Represents adoption date of Topic 842.
[3]	Capital expenditure amounts are stated on the accrual basis. See Consolidated Statements of Cash Flows for capital expenditure amounts on a cash basis.
[4]	The $42.4 million at February 2, 2020, represents property, plant, and equipment of $28.7 million and $13.7 million located in the U.S. and Canada, respectively. The $45.8 million at January 27, 2019, represents property, plant, and equipment of $33.5 million and $12.3 million located in the U.S. and Canada, respectively. The $44.3 million at April 28, 2019, represents property, plant, and equipment of $32.4 million and $11.9 million located in the U.S. and Canada, respectively.
[5]	The $426 at February 2, 2020, represents right of use assets located in the U.S.
[6]	The $1.7 million at February 2, 2020, represents property, plant, and equipment of $1.2 million and $469 located in the U.S. and China, respectively. The $2.0 million at January 27, 2019, represents property, plant, and equipment of $1.3 million and $615 located in the U.S. and China, respectively. The $1.8 million at April 28, 2019, represents property, plant, and equipment of $1.2 million and $591 located in the U.S. and China, respectively.
[7]	The $2.1 million at February 2, 2020, represents right of use assets of $1.1 million and $1.0 million located in China and the U.S., respectively
[8]	The $1.7 million at February 2, 2020, $2.0 million at January 27, 2019, and $1.9 million at April 28, 2019, represents property, plant and equipment located in the U.S.
[9]	The $949 million at February 2, 2020, represents right of use assets located in the U.S.
[10]	The $609, $342, and $418 at February 2, 2020, January 27, 2019, and April 28, 2019, respectively, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by our mattress fabrics, upholstery fabrics, and home accessories segments. Property, plant, and equipment associated with our corporate departments reside in the U.S.
[11]	The $2.0 million at February 2, 2020, represents right of use assets located in the U.S.

Segment Information - Balance Sheet Information by Operating Segments (Parenthetical) (Detail) - USD ($)
$ in Thousands

Feb. 02, 2020

Apr. 29, 2019

^[2]

Apr. 28, 2019

Jan. 27, 2019

$ 46,380

$ 48,389

^[1]

$ 50,129

Operating Segments [Member] | Mattress Fabrics [Member]

5,524

$ 7,191

^[3]

42,368

44,266

45,845

Operating Segments [Member] | Upholstery Fabrics [Member]

^[4]

426

^[5]

1,675

1,795

1,957

Operating Segments [Member] | Home Accessories [Member]

^[6]

2,143

^[7]

1,728

1,910

1,985

^[8]

949

^[9]

609

418

342

United States [Member] | Operating Segments [Member] | Mattress Fabrics [Member]

^[10]

2,006

28,700

32,400

33,500

United States [Member] | Operating Segments [Member] | Upholstery Fabrics [Member]

426

1,200

1,300

United States [Member] | Operating Segments [Member] | Home Accessories [Member]

1,000

1,700

1,900

2,000

United States [Member] | Unallocated Corporate [Member]

949

609

418

342

Canada [Member] | Operating Segments [Member] | Mattress Fabrics [Member]

2,000

China [Member] | Operating Segments [Member] | Upholstery Fabrics [Member]

13,700

11,900

12,300

469

$ 591

$ 615

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

$ 1,100

[1]	Derived from audited financial statements.
[2]	Represents adoption date of Topic 842.
[3]	The $42.4 million at February 2, 2020, represents property, plant, and equipment of $28.7 million and $13.7 million located in the U.S. and Canada, respectively. The $45.8 million at January 27, 2019, represents property, plant, and equipment of $33.5 million and $12.3 million located in the U.S. and Canada, respectively. The $44.3 million at April 28, 2019, represents property, plant, and equipment of $32.4 million and $11.9 million located in the U.S. and Canada, respectively.
[4]	The $426 at February 2, 2020, represents right of use assets located in the U.S.
[5]	The $1.7 million at February 2, 2020, represents property, plant, and equipment of $1.2 million and $469 located in the U.S. and China, respectively. The $2.0 million at January 27, 2019, represents property, plant, and equipment of $1.3 million and $615 located in the U.S. and China, respectively. The $1.8 million at April 28, 2019, represents property, plant, and equipment of $1.2 million and $591 located in the U.S. and China, respectively.
[6]	The $2.1 million at February 2, 2020, represents right of use assets of $1.1 million and $1.0 million located in China and the U.S., respectively
[7]	The $1.7 million at February 2, 2020, $2.0 million at January 27, 2019, and $1.9 million at April 28, 2019, represents property, plant and equipment located in the U.S.
[8]	The $949 million at February 2, 2020, represents right of use assets located in the U.S.
[9]	The $609, $342, and $418 at February 2, 2020, January 27, 2019, and April 28, 2019, respectively, represent property, plant, and equipment associated with unallocated corporate departments and corporate departments shared by our mattress fabrics, upholstery fabrics, and home accessories segments. Property, plant, and equipment associated with our corporate departments reside in the U.S.
[10]	The $2.0 million at February 2, 2020, represents right of use assets located in the U.S.

Income Taxes - Effective Income Tax Rate - Narrative (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Feb. 02, 2020	Jan. 27, 2019	Feb. 02, 2020	Jan. 27, 2019
Income Tax Disclosure [Abstract]
Income taxes	$ (973)	$ 1,225	$ 2,607	$ 3,407
Effective income tax rate			142.80%	32.50%

Income Taxes - Differences Between Income Tax Expense at Federal Income Tax Rate and Effective Income Tax Rate (Detail)	9 Months Ended
	Feb. 02, 2020	Jan. 27, 2019
Income Tax Disclosure [Abstract]
U.S. federal income tax rate	21.00%	21.00%
Global Intangible Low Taxed Income Tax (GILTI)	58.20%	2.60%
Foreign income tax rate differential	35.70%	10.10%
Non-controlling interest income attributable to a consolidated partnership	21.00%
Tax effects of Chinese foreign exchange gains	4.40%	1.40%
Change in estimate of U.S. valuation allowance	2.50%	1.00%
Stock-based compensation	1.20%	0.70%
Tax effects of the 2017 Tax Cuts and Jobs Act		(5.70%)
Other	(1.20%)	1.40%
Effective income tax rate	142.80%	32.50%

Income Taxes - Summary of Valuation Allowances Against Deferred Income Taxes (Detail) - USD ($) $ in Thousands	Feb. 02, 2020	Apr. 28, 2019	Jan. 27, 2019
Valuation Allowance [Line Items]
Valuation allowance	$ 711	$ 748	$ 5,453
U.S. State Tax [Member] \| Loss Carryforwards and Credits [Member]
Valuation Allowance [Line Items]
Valuation allowance	$ 711	666	903
Internal Revenue Service (IRS) [Member] \| Income Tax Credits [Member]
Valuation Allowance [Line Items]
Valuation allowance		$ 82	$ 4,550

Income Taxes - Deferred Income Taxes - Undistributed Earnings from Foreign Subsidiaries - Narrative (Detail) - USD ($) $ in Millions	9 Months Ended
	Feb. 02, 2020	Apr. 28, 2019	Jan. 27, 2019
Income Tax Disclosure [Abstract]
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	$ 3.4	$ 3.5	$ 3.4

Income Taxes - Uncertainty in Income Taxes - Narrative (Detail) - USD ($)	Feb. 02, 2020	Apr. 28, 2019	Jan. 27, 2019
Income Taxes [Line Items]
Unrecognized tax benefits	$ 914,000	$ 903,000	$ 880,000
Unrecognized tax benefits that would favorably impact effective income tax rate if recognized	914,000	523,000	500,000
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	$ 914,000	$ 523,000	$ 500,000

Stock-Based Compensation - Narrative (Detail) - USD ($)						9 Months Ended
Stock-Based Compensation - Narrative (Detail) - USD ($)	Jan. 02, 2020	Oct. 01, 2019	Jul. 01, 2019	Apr. 01, 2019	Oct. 01, 2018	Feb. 02, 2020	Jan. 27, 2019	Sep. 16, 2015
Performance Based Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining unrecognized compensation cost						$ 680,000
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						$ 757,000
Time Vested Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining unrecognized compensation cost						$ 688,000
Weighted average period over which unrecognized compensation cost is expected to be recognized						2 years 7 months 6 days
Fair value of units expected to vest						$ 561,000
Common Stock Awards [Member] \| Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	4,972	4,519	3,659	2,948	3,600
Price Per Share	$ 14.08		$ 19.21	$ 19.18	$ 23.45
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						467,000	$ 259,000
Selling, General and Administrative Expenses [Member] \| Time Vested Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense						154,000	30,000
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						$ 210,000	$ 84,000
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						908,334

Stock-Based Compensation - Summary of Assumptions Used to Determine Fair Value of Performance Based Restricted Stock Units (Detail) - Performance Based Restricted Stock Units [Member] - Senior Executives [Member] - $ / shares

Jul. 18, 2019

Aug. 02, 2018

Jul. 13, 2017

Closing price of our common stock

$ 18.49

$ 24.35

$ 32.50

Expected volatility of our common stock

30.00%

33.50%

31.00%

Expected volatility of peer companies

^[1],[2]

16.00%

16.50%

Risk-free interest rate

1.73%

2.74%

1.56%

Dividend yield

2.10%

1.35%

1.66%

Correlation coefficient of peer companies

^[1],[2]

0.47%

0.46%

Maximum [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Expected volatility of peer companies

^[1],[2]

82.30%

Correlation coefficient of peer companies

^[1],[2]

0.43%

Minimum [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Expected volatility of peer companies

^[1],[2]

29.90%

Correlation coefficient of peer companies

^[1],[2]

0.00%

[1]

[2]

Stock-Based Compensation - Summary of Grants of Performance Based Restricted Stock Units Associated with executive officers and Key Employees (Detail) - Performance Based Restricted Stock Units [Member] - $ / shares

Jul. 18, 2019

Aug. 02, 2018

Jul. 13, 2017

Senior Executives [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Restricted Stock Units Awarded

^[1],[2]

93,653

86,599

78,195

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

^[2]

$ 19.04

^[3]

$ 18.51

^[4]

$ 31.85

^[5]

Vesting Period

^[2]

3 years

Key Employees [Member]

Restricted Stock Units Awarded

^[1],[6]

30,426

47,800

44,000

Key Employees and Senior Executives [Member]

^[6],[7]

$ 18.49

$ 24.35

$ 32.50

Vesting Period

^[6]

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 certain senior executives.
[3]	Price per share represents the fair market value per share ($1.03 per $1 or an increase of $0.55 to the closing price of the common stock on the date of grant) determined using the Monte Carlo simulation model for the market-based total shareholder return component and the closing price of our common stock ($18.49) for the performance-based components of the performance-based restricted stock units granted to certain senior executives on July 18, 2019.
[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 common stock on the date of grant) 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 certain senior executives on August 2, 2018.
[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 common stock on the date of grant) 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 certain senior executives on July 13, 2017.
[6]	Performance-based restricted stock units awarded to key employees.
[7]	Price per share represents the closing price of our common stock on the date of grant.

Stock-Based Compensation - Summary of Grants of Performance Based Restricted Stock Units Associated with executive officers and Key Employees (Parenthetical) (Detail) - Performance Based Restricted Stock Units [Member] - Senior Executives [Member] - $ / shares	Jul. 18, 2019	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	1.03%	0.76%	0.98%
Fair value adjustment to closing price of common stock, per share	$ 0.55	$ (5.84)	$ (0.65)
Closing price of common stock	$ 18.49	$ 24.35	$ 32.50

Stock-Based Compensation - Summary of Vested Performance Based and Time Based Restricted Stock Units (Detail) - Performance Based Restricted Stock Units [Member] - USD ($)
$ / shares in Units, $ in Thousands

9 Months Ended

12 Months Ended

Feb. 02, 2020

Apr. 29, 2018

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Restricted Stock Units Vested

^[1]

9,489

128,632

Weighted Average Fair Value

^[1],[2]

$ 165

$ 3,754

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

^[1],[3]

$ 17.36

$ 29.19

Non-employee [Member]

Restricted Stock Units Vested

^[4]

4,148

10,364

Weighted Average Fair Value

^[2],[4]

$ 72

$ 320

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

^[3],[4]

$ 17.36

$ 30.90

[1]	Certain senior executives and key employees.
[2]	Dollar amounts are in thousands.
[3]	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.
[4]	Non-employee

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] - Management [Member] - $ / shares

Jul. 18, 2019

Aug. 02, 2018

Restricted Stock Awarded

34,399

10,000

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

^[1]

$ 18.49

$ 24.35

Vesting Period

3 years

5 years

[1]	Price per share represents closing price of common stock on the date the respective award was granted

Stock-Based Compensation - Summary of Vested Time Based Restricted Stock Units (Detail) - Time Based Restricted Stock Unit [Member]
$ / shares in Units, $ in Thousands

12 Months Ended

Apr. 28, 2019

USD ($)

$ / shares

Restricted Stock Units Vested | shares

1,200

Weighted Average Fair Value | $

$ 21

^[1]

Price Per Share | $ / shares

$ 17.36

^[2]

[1]	Dollar amounts are in thousands.
[2]	The weighted average price per share is derived from the closing prices of our common stock on the dates the respective time-based restricted stock units vested.

Leases - Narrative (Detail)	3 Months Ended	9 Months Ended
Leases - Narrative (Detail)	Feb. 02, 2020 USD ($)	Feb. 02, 2020 USD ($)
Operating Lease Remaining Lease Terms	3 years 4 months 24 days	3 years 4 months 24 days
Lessee, Operating Lease, Option to Extend		renewal options for additional periods ranging up to 10 years
Operating Lease Expenses	$ 726,000	$ 2,200,000
Minimum [Member]
Operating Lease Remaining Lease Terms	1 year	1 year
Maximum [Member]
Operating Lease Remaining Lease Terms	6 years	6 years

Leases - Lessee Operating Lease Right Of Use Assets And Liabilities (Detail) - USD ($)
$ in Thousands

Feb. 02, 2020

Apr. 29, 2019

^[1]

Assets And Liabilities Lessee [Abstract]