Company: CULP
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0000950170-25-035191
Chunk: 121

Company: CULP INC
Filing Date: 2025-03-07
Form: 10-Q
Item: Item 8
Chunk 121
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 Read also supplies soft goods such as decorative top sheets, coverlets, duvet covers, bed skirts, bolsters, and pillows.  Our primary performance obligations include the sale of mattress fabrics and upholstery fabrics, as well as the performance of customized fabrication and installation services for Read’s products associated with window treatments.Contract Assets & LiabilitiesCertain contracts, primarily those for customized fabrication and installation services associated with Read, require payments in advance in the form of customer deposits that result in a contract liability which is recorded in the Consolidated Balance Sheets as deferred revenue. If payments in advance are not required, customers may be granted terms which generally range from 15-60 days. Our terms are customary within the industries in which we operate and are not considered financing arrangements. There were no contract assets recognized as of January 26, 2025, January 28, 2024, or April 28, 2024.A summary of the activity associated with deferred revenue follows: 

        Nine months ended

        (dollars in thousands)
         
        January 26, 2025

        January 28, 2024

        Beginning balance
         
        $
        1,495

        $
        1,192

        Revenue recognized on contract liabilities

        (3,134
        )

        (2,893
        )

        Payments received for services not yet rendered

        2,336

        3,499

        Ending balance
         
        $
        697

        $
        1,798

I-9

 Disaggregation of RevenueThe following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the three-month period ended January 26, 2025: 

        Mattress

        Upholstery

        (dollars in thousands)
         
        Fabrics

        Fabrics

        Total

        Products transferred at a point in time
         
        $
        28,642

        $
        20,345

        $
        48,987

        Services transferred over time

        —

        3,266

        3,266

        Total Net Sales
         
        $
        28,642

        $
        23,611

        $
        52,253

        The following table presents our disaggregated revenue by segment, timing of revenue recognition, and product sales versus services rendered for the nine-month period ended January 26,