Company: CULP
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0000950170-25-035191
Chunk: 124

Company: CULP INC
Filing Date: 2025-03-07
Form: 10-Q
Item: Item 8
Chunk 124
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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.The gross carrying amount of our non-compete agreement was $2.0 million as of January 26, 2025, January 28, 2024, and April 28, 2024, respectively.  Accumulated amortization for our non-compete agreement was $1.8 million, $1.7 million, and $1.7 million as of January 26, 2025, January 28, 2024, and April 28, 2024, respectively. The remaining amortization expense for each of the next five years and thereafter are as follows: FY 2025 - $19,000; FY 2026 - $76,000; FY 2027 - $76,000; FY 2028 - $74,000.The weighted average amortization period for the non-compete agreement was 3.3 years as of January 26, 2025.Impairment of Definite Lived Assets - Mattress Fabrics SegmentAs of January 26, 2025, management reviewed the long-lived assets associated with our mattress fabrics segment, which consisted of property, plant, and equipment, right of use assets, and definite-lived intangible assets (collectively known as the "Mattress Asset Group"), for impairment, as events and changes in circumstances occurred that indicated the carrying amount of the Mattress Asset Group may not be recoverable. The mattress fabrics segment experienced a significant cumulative operating loss totaling $35.3 million commencing in the second