Company: CULP
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0000950170-25-035191
Chunk: 140

Company: CULP INC
Filing Date: 2025-03-07
Form: 10-Q
Item: Item 8
Chunk 140
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 to the gradual discontinuation of operations at our manufacturing facility located in Quebec, Canada. (2) During the nine months ending January 28, 2024, gross profit includes a restructuring related charge of $40,000, which represents markdowns of inventory related to the discontinuation of production of cut and sewn upholstery kits at the company's facility located in Ouanaminthe, Haiti.  3) During the nine months ending January 26, 2025, restructuring expense of $6.3 million mostly relates to the mattress fabrics segment. The $6.3 million restructuring expense represents (i) $2.7 million for the consolidation of our mattress fabrics operations located in Quebec, Canada into our facility located in Stokesdale, North Carolina, (ii) $1.5 million for impairment of and accelerated depreciation related to property, plant, and equipment, (iii) $1.4 million for employee termination benefits, and (iv) $849,000 for lease termination costs, partially offset by a gain on sale and disposal of equipment totaling $(174,000). See Note 10 to the consolidated financial statements for further details and description of our Fiscal 2025 Restructuring Plan. (4) Restructuring expense of $432,000 for the nine months ending January 28, 2024, represents a $329,000 impairment charge associated with equipment and $103,000 for employee termination benefits related to the discontinuation of production of cut and sewn upholstery kits in Ouanaminthe, Haiti.  

I-23

Balance sheet information for our operating segments follows: 

        (dollars in thousands)
         
        January 26, 2025

        January 28, 2024

        April 28, 2024

        Segment assets:

        Mattress Fabrics:

        Accounts receivable
         
        $
        11,607

        $
        11,463

        $
        10,003

        Inventory

        31,377

        27,925

        27,671

        Property, plant and equipment (1)

        24,210

        32,263

        31,472

        Right of use assets (2)

        200

        1,798

        1,627

        Assets held for sale (3)

        2,214

        —

        —

        Total mattress fabrics assets

        69,608