Company: CULP
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0000950170-25-035191
Chunk: 123

Company: CULP INC
Filing Date: 2025-03-07
Form: 10-Q
Item: Item 8
Chunk 123
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 thousands)
         
        January 26, 2025

        January 28, 2024

        April 28, 2024

        Tradename
         
        $
        540

        $
        540

        $
        540

        Customer relationships, net

        809

        1,110

        1,035

        Non-compete agreement, net

        245

        320

        301

        $
        1,594

        $
        1,970

        $
        1,876

       TradenameOur tradename pertains to Read, a separate reporting unit within the upholstery fabrics segment. This tradename was determined to have an indefinite useful life at the time of its acquisition, and therefore is not being amortized. However, we are required to assess this tradename annually or between annual tests if we believe indicators of impairment exist. Based on our assessment as of January 26, 2025, 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