Note 28 - Business Segment Information

9 Months Ended

Mar. 25, 2012

Segment Reporting Disclosure [Text Block]

28. Business Segment Information

The Company has three operating segments which are also its reportable segments.  Each reportable segment derives its revenues as follows:

● The Polyester segment manufactures recycled Chip, POY, textured, dyed, twisted and beamed yarns with sales primarily to other yarn manufacturers, knitters and weavers that produce yarn and/or fabric for the apparel, automotive upholstery, hosiery, home furnishings, industrial and other end-use markets.  The Polyester segment consists of manufacturing operations in the U.S. and El Salvador.

● The Nylon segment manufactures textured nylon and covered spandex yarns with sales to knitters and weavers that produce fabric for the apparel, hosiery, sock and other end-use markets.  The Nylon segment consists of manufacturing operations in the U.S. and Colombia.

● The International segment’s products primarily include textured polyester and various types of resale yarns. The International segment sells its yarns to knitters and weavers that produce fabric for the apparel, automotive upholstery, home furnishings, industrial and other end-use markets primarily in the South American and Asian regions.  This segment includes manufacturing and sales offices in Brazil and a sales office in China.

The Company evaluates the operating performance of its segments based upon Segment Adjusted Profit which is defined as segment gross profit plus segment depreciation and amortization less segment related SG&A and segment other adjustments.  Segment operating profit represents segment net sales less cost of sales, restructuring and impairment charges and SG&A expenses.  The accounting policies for the segments are consistent with the Company’s accounting policies.  Intersegment sales are accounted for at current market prices.  Selected financial information for the Polyester, Nylon and International segments is presented below:

The following table presents Segment Sales to External Customers for the quarter and year-to-date periods:

	For the Three Months Ended				For the Nine Months Ended
	March 25, 2012		March 27, 2011		March 25, 2012		March 27, 2011
Polyester	$	102,061	$	96,483	$	289,694	$	267,754
Nylon		39,181		40,034		118,958		121,021
International		37,795		42,873		108,508		127,846
Segment sales to external customers	$	179,037	$	179,390	$	517,160	$	516,621

The following table presents Intersegment Sales for each of the reportable segments for the quarter and year-to-date periods:

	For the Three Months Ended					For the Nine Months Ended
	March 25, 2012			March 27, 2011		March 25, 2012		March 27, 2011
Polyester	$	303		$	10	$	1,193	$	2,589
Nylon		(3	)		140		224		1,062
International		459			470		1,020		1,082
Intersegment sales	$	759		$	620	$	2,437	$	4,733

The reconciliations of Segment Operating Profit to Consolidated Income (Loss) Before Income Taxes are as follows:

	For the Three Months Ended						For the Nine Months Ended
	March 25, 2012			March 27, 2011			March 25, 2012			March 27, 2011
Polyester	$	(697	)	$	(2,396	)	$	(7,387	)	$	(1,666	)
Nylon		1,137			1,582			5,691			8,125
International		2,002			5,608			5,493			15,154
Segment operating profit		2,442			4,794			3,797			21,613
(Benefit) provision for bad debts		(144	)		41			418			86
Other operating expenses, net		669			158			1,118			417
Consolidated operating income		1,917			4,595			2,261			21,110
Interest income		(571	)		(584	)		(1,713	)		(1,995	)
Interest expense		4,189			5,016			12,791			15,347
Loss on extinguishment of debt		—			2,193			462			3,337
Other non-operating (income) expenses		(9	)		78			(1,488	)		528
Equity in (earnings) losses of unconsolidated affiliates		(9,863	)		2,103			(14,166	)		(11,887	)
Loss on previously held equity interest		—			—			3,656			—
Income (loss) before income taxes	$	8,171		$	(4,211	)	$	2,719		$	15,780

The reconciliations of Segment Depreciation and Amortization Expense to Consolidated Depreciation and Amortization Expense are as follows:

	For the Three Months Ended				For the Nine Months Ended
	March 25, 2012		March 27, 2011		March 25, 2012		March 27, 2011
Polyester	$	4,693	$	4,744	$	14,227	$	14,219
Nylon		788		804		2,341		2,493
International		1,176		1,044		3,075		2,837
Segment depreciation and amortization expense		6,657		6,592		19,643		19,549
Depreciation and amortization included in other operating expenses, net		32		7		69		15
Amortization included in interest expense		227		235		672		736
Consolidated depreciation and amortization expense	$	6,916	$	6,834	$	20,384	$	20,300

The following table presents Segment Restructuring Charges for the quarter and year-to-date periods:

	For the Three Months Ended				For the Nine Months Ended
	March 25, 2012		March 27, 2011		March 25, 2012		March 27, 2011
Polyester	$	—	$	9	$	—	$	1,555
Nylon		—		—		—		—
International		—		—		—		—
Segment restructuring charges	$	—	$	9	$	—	$	1,555

The following table presents Segment Other Adjustments for the quarter and year-to-date periods:

	For the Three Months Ended				For the Nine Months Ended
	March 25, 2012		March 27, 2011		March 25, 2012		March 27, 2011
Polyester	$	50	$	—	$	50	$	—
Nylon		—		—		—		—
International		278		—		382		—
Segment other adjustments¹	$	328	$	—	$	432	$	—

      ¹ employee severance charges

The following table presents Segment Adjusted Profit for the quarter and year-to-date periods:

	For the Three Months Ended				For the Nine Months Ended
	March 25, 2012		March 27, 2011		March 25, 2012		March 27, 2011
Polyester	$	4,046	$	2,357	$	6,890	$	14,108
Nylon		1,925		2,386		8,032		10,618
International		3,456		6,652		8,950		17,991
Segment adjusted profit	$	9,427	$	11,395	$	23,872	$	42,717

The reconciliations of Segment Capital Expenditures to Consolidated Capital Expenditures are as follows:

	For the Three Months Ended				For the Nine Months Ended
	March 25, 2012		March 27, 2011		March 25, 2012		March 27, 2011
Polyester	$	1,122	$	3,420	$	2,799	$	11,941
Nylon		185		51		375		479
International		423		515		1,430		4,479
Segment capital expenditures		1,730		3,986		4,604		16,899
Unallocated corporate capital expenditures		340		24		725		435
Consolidated capital expenditures	$	2,070	$	4,010	$	5,329	$	17,334

The reconciliations of Segment Total Assets to Consolidated Total Assets are as follows:

	March 25, 2012		June 26, 2011
Polyester	$	206,239	$	219,723
Nylon		75,923		81,132
International		103,715		125,248
Segment total assets		385,877		426,103
All other current assets		16,348		6,637
Unallocated corporate PP&E		9,762		9,711
All other non-current assets		3,042		3,667
Investments in unconsolidated affiliates		97,883		91,258
Consolidated total assets	$	512,912	$	537,376