Culp Inc was organized as a North Carolina corporation in 1972 and made its initial public offering in 1983. The Company manufactures, sources, and markets mattress fabrics used for covering mattresses, box springs, and foundations and upholstery fabrics for use in production of upholstered furniture. It has two operating segments — mattress fabrics and upholstery fabrics. The mattress fabric business markets mostly woven and knitted fabrics, and sewn covers made from those fabrics, which are used in the production of bedding products, including mattresses, box springs, and foundations. The upholstery fabric business markets a variety of fabric products that are used in the production of upholstered furniture, such as sofas, recliners, chairs, loveseats, sectionals, and sofa-beds. The Company had fourteen active manufacturing plants and distribution facilities as of the end of fiscal 2013, which are located in North and South Carolina; Quebec, Canada; Shanghai, China; and Poznan, Poland.It also sources fabrics from other manufacturers, located mostly in China and Turkey, with those fabrics being produced specifically for Culp and created by Culp designers. It operates distribution centers in North Carolina and Shanghai, China to facilitate distribution of its products, and it recently opened a new distribution facility in Poznan, Poland. The Company markets products to manufacturers that operate in two principal markets. The mattress fabrics segment supplies the bedding industry, which produces mattress sets (mattresses, box springs, and foundations). The upholstery fabrics segment supplies the residential furniture industry. The residential furniture market includes upholstered furniture sold to consumers for household use, including sofas, sofa-beds, chairs, recliners and sectionals. Competition for its products is high and is based on price, design, quality, timing of delivery and service. The Company is subject to various federal and state laws and regulations, including the Occupational Safety and Health Act (OSHA) and federal and state environmental laws, as well as similar laws governing its manufacturing facilities in China and Canada.