Note 28 - Business Segment Information

12 Months Ended

Jun. 24, 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 Chip, POY, textured, dyed, twisted and beamed yarns, virgin and recycled, with sales primarily to other yarn manufacturers, knitters and weavers that produce yarn and/or fabric for the apparel, hosiery, automotive upholstery, home furnishing, 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 furnishing, 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 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:

Segment Sales to external customers consist of the following:

	For the Fiscal Years Ended
	June 24, 2012		June 26, 2011		June 27, 2010
Polyester	$	393,981	$	375,605	$	308,691
Nylon		163,103		163,354		165,098
International		148,002		173,853		148,829
Segment sales to external customers	$	705,086	$	712,812	$	622,618

Intersegment Sales for each of the reportable segments consist of the following:

	For the Fiscal Years Ended
	June 24, 2012		June 26, 2011		June 27, 2010
Polyester	$	2,179	$	2,668	$	8,415
Nylon		314		1,298		291
International		1,351		1,084		821
Intersegment sales	$	3,844	$	5,050	$	9,527

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

	For the Fiscal Years Ended
	June 24, 2012			June 26, 2011			June 27, 2010
Polyester	$	(5,995	)	$	(2,547	)	$	(7,792	)
Nylon		8,034			11,010			10,856
International		8,804			20,046			21,414
Segment operating profit		10,843			28,509			24,478
Provision (benefit) for bad debts		211			(304	)		123
Other operating expense (income), net		2,000			121			(1,033	)
Consolidated operating income		8,632			28,692			25,388
Interest income		(1,921	)		(2,511	)		(3,125	)
Interest expense		16,073			19,190			21,889
Loss (gain) on extinguishment of debt		3,203			3,337			(54	)
Equity in earnings of unconsolidated affiliates		(19,740	)		(24,352	)		(11,693	)
Other non-operating expense, net		2,168			606			-
Income before income taxes	$	8,849		$	32,422		$	18,371

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

	For the Fiscal Years Ended
	June 24, 2012		June 26, 2011		June 27, 2010
Polyester	$	19,046	$	18,470	$	19,679
Nylon		3,089		3,287		3,477
International		4,011		3,786		3,045
Segment depreciation and amortization expense		26,146		25,543		26,201
Depreciation and amortization included in other operating expense (income), net		119		19		111
Amortization included in interest expense		870		415		1,104
Consolidated depreciation and amortization expense	$	27,135	$	25,977	$	27,416

Segment Restructuring Charges for each of the reportable segments consist of the following:

	For the Fiscal Years Ended
	June 24, 2012		June 26, 2011			June 27, 2010
Polyester	$	-	$	1,576		$	770
Nylon		71		(92	)		(31	)
International		-		-			-
Segment restructuring charges	$	71	$	1,484		$	739

Segment Other Adjustments for each of the reportable segments consist of the following:

	For the Fiscal Years Ended
	June 24, 2012			June 26, 2011			June 27, 2010
Polyester	$	(138	)	$	3,161		$	1,127
Nylon		33			(150	)		-
International		382			-			-
Segment Other adjustments	$	277		$	3,011		$	1,127

Segment Adjusted Profit for each of the reportable segments consists of the following:

	For the Fiscal Years Ended
	June 24, 2012		June 26, 2011		June 27, 2010
Polyester	$	12,913	$	20,660	$	13,784
Nylon		11,227		14,055		14,302
International		13,197		23,832		24,459
Segment adjusted profit	$	37,337	$	58,547	$	52,545

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

	For the Fiscal Years Ended
	June 24, 2012		June 26, 2011		June 27, 2010
Polyester	$	3,246	$	13,650	$	9,709
Nylon		487		1,057		825
International		1,610		5,626		2,313
Segment capital expenditures		5,343		20,333		12,847
Unallocated corporate capital expenditures		1,011		206		265
Consolidated capital expenditures	$	6,354	$	20,539	$	13,112

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

	June 24, 2012		June 26, 2011		June 27, 2010
Polyester	$	198,321	$	219,723	$	209,314
Nylon		74,569		81,132		81,398
International		88,040		125,248		111,624
Segment total assets		360,930		426,103		402,336
All other current assets		9,424		6,637		11,151
Unallocated corporate PP&E		10,404		9,711		10,282
All other non-current assets		5,712		3,667		7,200
Investments in unconsolidated affiliates		95,763		91,258		73,543
Consolidated total assets	$	482,233	$	537,376	$	504,512

Geographic Data:

Geographic information for net sales is as follows:

	For the Fiscal Years Ended
	June 24, 2012		June 26, 2011		June 27, 2010
U.S.	$	515,522	$	502,255	$	463,222
Brazil		125,737		144,669		130,663
All Other Foreign		63,827		65,888		28,733
Total	$	705,086	$	712,812	$	622,618

The information for net sales is based on the operating locations from where the items were produced or distributed.  Export sales from the Company’s U.S. operations to external customers were $84,558, $82,944 and $94,255 for the fiscal years ended June 24, 2012, June 26, 2011 and June 27, 2010, respectively.

Geographic information for long-lived assets is as follows:

	June 24, 2012		June 26, 2011		June 27, 2010
U.S.	$	215,910	$	229,170	$	223,297
Brazil		19,121		27,918		22,732
All Other Foreign		7,915		6,219		5,753
Total	$	242,946	$	263,307	$	251,782

Long-lived assets are comprised of property, plant and equipment, net, certain intangible and other non-current assets.