Company: CULP
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0000950170-25-035191
Chunk: 17

Company: CULP INC
Filing Date: 2025-03-07
Form: 10-Q
Item: Item 1
Chunk 17
---
14
        )

        (16
        )

        (30
        )

        Ending Balance
         
        $
        518

        $
        205

        $
        723

       The following summarizes restructuring and restructuring related charges for the three-month and nine-month periods ended January 26, 2025: 

        Three Months Ended

        Nine Months Ended

        (dollars in thousands)
         
        January 26, 2025

        January 26, 2025

        Additional depreciation expense for shortened useful lives of equipment
         
        $
        —

        $
        1,339

        Employee termination benefits

        176

        1,428

        Other associated costs

        1,512

        2,730

        Loss on disposal, valuation, and markdowns of inventory

        624

        1,509

        Lease termination costs

        —

        849

        Net gain on disposal of equipment

        (33
        )

        (43
        )

        Restructuring expense and restructuring related charges (1) (2)
         
        $
        2,279

        $
        7,812

       (1) Of the total $2.3 million restructuring and restructuring related charges, $1.7 million and $624,000 were classified within restructuring expense and cost of sales, respectively, in the Consolidated Statement of Net Loss for the three-month period ending January 26, 2025. The $2.3 million mostly relates to the mattress fabrics segment. (2) Of the total $7.8 million restructuring and restructuring related charges, $6.3 million and $1.5 million were classified within restructuring expense and cost of sales, respectively, in the Consolidated Statement of Net Loss for the nine-month period ending January 26, 2025. The $7.8 million mostly relates to the mattress fabrics segment. Upholstery Fabrics Segment Shanghai, China Upholstery Fabrics Finishing Operation During the fourth quarter of fiscal 2024, we closed our upholstery fabrics finishing in China operation to align with current demand trends and will continue to leverage our strategic supply relationships to meet customer finishing needs. This restructuring activity 

I-15

was completed during the first quarter of fiscal 2025 and resulted in cumulative restructuring and restructuring related charges totaling $218,000.   The following summarizes the activity in accrued restructuring costs