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

Company: CULP INC
Filing Date: 2025-03-07
Form: 10-Q
Item: Item 1
Chunk 10
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, no indicators of impairment existed, and therefore we did not record any asset impairment charges associated with our tradename through the third quarter of fiscal 2025. Customer RelationshipsA summary of the change in the carrying amount of our customer relationships follows: 

        Nine months ended

        (dollars in thousands)
         
        January 26, 2025

        January 28, 2024

        Beginning balance
         
        $
        1,035

        $
        1,335

        Amortization expense

        (226
        )

        (225
        )

        Ending balance
         
        $
        809

        $
        1,110

I-11

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 as of January 26, 2025, January 28, 2024, and April 28, 2024, respectively. Accumulated amortization for these customer relationships was $2.3 million, $2.0 million, and $2.1 million as of January 26, 2025, January 28, 2024, and April 28, 2024, respectively.The remaining amortization expense for each of the next five fiscal years and thereafter are as follows: FY 2025 - $75,000; FY 2026 - $301,000; FY 2027 - $280,000; FY 2028 - $51,000; FY 2029 - $51,000; and thereafter - $51,000.The weighted average amortization period for our customer relationships was 3.2 years as of January 26, 2025.Non-Compete AgreementA summary of the change in the carrying amount of our non-compete agreement follows: 

        Nine months ended

        (dollars in thousands)
         
        January 26, 2025

        January 28, 2024

        Beginning balance
         
        $
        301

        $
        377

        Amortization expense

        (56
        )

        (57
        )

        Ending balance
         
        $
        245

        $
        320

       Our non-compete agreement is associated with a prior acquisition by our mattress fabrics segment and is amortized on a straight-line basis over the fifteen-year life of the agreement