Company: CULP
Filing Date: 2025-12-12
Form Type: 10-Q
Source: 0001193125-25-317167
Chunk: 9

Company: CULP INC
Filing Date: 2025-12-12
Form: 10-Q
Item: Item 8
Chunk 9
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(Unaudited)

1. Basis of PresentationThe accompanying unaudited condensed consolidated financial statements of Culp, Inc. and its majority-owned subsidiaries (the “company”) include all adjustments that are, in the opinion of management, necessary for fair presentation of the results of operations and financial position. All these adjustments are of a normal recurring nature. Results of operations for interim periods may not be indicative of future results. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements that are included in the company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on July 11, 2025, for the fiscal year ended April 27, 2025.The company's six months ended November 2, 2025, and October 27, 2024, represent 27-week and 26-week periods, respectively.

2. Significant Accounting Policies As of November 2, 2025, there were no changes in the nature of our significant accounting policies or the application of those policies from those reported in our Annual Report on Form 10-K for the year then ended April 27, 2025.  However, during the first quarter of fiscal 2026, we renamed our business segments to better reflect our product offerings: the mattress fabrics segment is now referred to as the bedding segment and the upholstery fabrics segment is now referred to as the upholstery segment.  See Note 14 of the consolidated financial statements for further details regarding our business segments.  Recently Adopted Accounting PronouncementsThere were no recently adopted accounting pronouncements during the first half of fiscal 2026. Recently Issued Accounting PronouncementsEffective December 14, 2023, the FASB issued ASU 2023-09 Improvements to Income Tax Disclosures ("ASU 2023-09"), which is an update to Topic 740, Income Taxes. The amendments in this update relate to improvements regarding the transparency of income tax disclosures by requiring consistent categories and greater disaggregation by jurisdiction of information included in the effective income tax rate reconciliation and for income taxes paid. Also, the amendments allow investors to better assess an entity's: (i) capital allocation decisions, (ii) worldwide operations, and (iii) related tax risks, tax planning, and operational opportunities that affect the effective income tax rate and prospects for future cash flows. The other amendments in this update improve the effectiveness and comparability of disclosures relating to pretax income (or loss) and income tax expense (or