Note 27 - Business Segment Information

12 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

27. Business Segment Information

The Company has three operating segments, which are also its reportable segments. These segments derive revenues as follows:

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

● The International Segment’s products primarily include textured polyester and various types of resale yarns and staple fiber. 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 locations 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 expenses and plus segment other adjustments. Segment operating profit (loss) represents segment net sales less cost of sales, restructuring and other 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:

	For the Fiscal Year Ended June 30, 2013
	Polyester		Nylon			International		Total
Net sales	$	398,707	$	164,085		$	151,170	$	713,962
Cost of sales		363,545		146,033			131,280		640,858
Gross profit		35,162		18,052			19,890		73,104
Selling, general and administrative expenses		29,114		9,930			8,342		47,386
Restructuring recoveries		—		(135	)		—		(135	)
Other operating expense, net		—		42			—		42
Segment operating profit	$	6,048	$	8,215		$	11,548	$	25,811

	For the Fiscal Year Ended June 24, 2012
	Polyester			Nylon		International		Total
Net sales	$	393,981		$	163,103	$	148,002	$	705,086
Cost of sales		374,308			146,147		130,235		650,690
Gross profit		19,673			16,956		17,767		54,396
Selling, general and administrative expenses		25,668			8,851		8,963		43,482
Restructuring charges		—			71		—		71
Segment operating (loss) profit	$	(5,995	)	$	8,034	$	8,804	$	10,843

	For the Fiscal Year Ended June 26, 2011
	Polyester			Nylon			International		Total
Net sales	$	375,605		$	163,354		$	173,853	$	712,812
Cost of sales		350,859			143,591			143,710		638,160
Gross profit		24,746			19,763			30,143		74,652
Selling, general and administrative expenses		25,717			8,845			10,097		44,659
Restructuring charges (recoveries)		1,576			(92	)		—		1,484
Segment operating (loss) profit	$	(2,547	)	$	11,010		$	20,046	$	28,509

The reconciliations of Segment operating profit to consolidated Income before income taxes are as follows:

	For the Fiscal Years Ended
	June 30, 2013			June 24, 2012			June 26, 2011
Polyester	$	6,048		$	(5,995	)	$	(2,547	)
Nylon		8,215			8,034			11,010
International		11,548			8,804			20,046
Segment operating profit		25,811			10,843			28,509
(Benefit) provision for bad debts		(154	)		211			(304	)
Other operating expense, net		3,502			2,000			121
Operating income		22,463			8,632			28,692
Interest income		(698	)		(1,921	)		(2,511	)
Interest expense		4,489			16,073			19,190
Loss on extinguishment of debt		1,102			3,203			3,337
Loss on previously held equity interest		—			3,656			—
Other non-operating expense (income)		—			(1,488	)		606
Equity in earnings of unconsolidated affiliates		(11,444	)		(19,740	)		(24,352	)
Income before income taxes	$	29,014		$	8,849		$	32,422

The reconciliations of Segment depreciation and amortization expense to consolidated Depreciation and amortization expense are as follows:

	For the Fiscal Years Ended
	June 30, 2013		June 24, 2012		June 26, 2011
Polyester	$	17,234	$	19,046	$	18,470
Nylon		3,070		3,089		3,287
International		3,418		4,011		3,786
Segment depreciation and amortization expense		23,722		26,146		25,543
Depreciation and amortization included in other operating expense, net		230		119		19
Amortization included in interest expense		632		870		415
Depreciation and amortization expense	$	24,584	$	27,135	$	25,977

Segment other adjustments for each of the reportable segments consist of the following:

	For the Fiscal Years Ended
	June 30, 2013		June 24, 2012			June 26, 2011
Polyester	$	618	$	(138	)	$	3,161
Nylon		245		33			(150	)
International		115		382			—
Segment other adjustments	$	978	$	277		$	3,011

Segment other adjustments include severance charges, restructuring charges and recoveries, start-up costs, certain employee healthcare costs and other adjustments necessary to understand and compare the underlying results of the segment.

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

	For the Fiscal Years Ended
	June 30, 2013		June 24, 2012		June 26, 2011
Polyester	$	23,900	$	12,913	$	20,660
Nylon		11,437		11,227		14,055
International		15,081		13,197		23,832
Segment Adjusted Profit	$	50,418	$	37,337	$	58,547

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

	For the Fiscal Years Ended
	June 30, 2013		June 24, 2012		June 26, 2011
Polyester	$	1,296	$	2,179	$	2,668
Nylon		773		314		1,298
International		772		1,351		1,084
Intersegment sales	$	2,841	$	3,844	$	5,050

The reconciliations of Segment capital expenditures to consolidated Capital expenditures are as follows:

	For the Fiscal Years Ended
	June 30, 2013		June 24, 2012		June 26, 2011
Polyester	$	5,730	$	3,246	$	13,650
Nylon		482		487		1,057
International		1,336		1,610		5,626
Segment capital expenditures		7,548		5,343		20,333
Unallocated corporate capital expenditures		1,261		1,011		206
Capital expenditures	$	8,809	$	6,354	$	20,539

The reconciliations of Segment total assets to consolidated Total assets are as follows:

	June 30, 2013		June 24, 2012		June 26, 2011
Polyester	$	185,190	$	198,321	$	219,723
Nylon		72,599		74,569		81,132
International		84,151		88,040		125,248
Segment total assets		341,940		360,930		426,103
All other current assets		3,342		9,424		6,637
Unallocated corporate PP&E		11,983		10,404		9,711
All other non-current assets		4,940		5,712		3,667
Investments in unconsolidated affiliates		93,261		95,763		91,258
Total assets	$	455,466	$	482,233	$	537,376

Geographic Data:

Geographic information for Net sales is as follows:

	For the Fiscal Years Ended
	June 30, 2013		June 24, 2012		June 26, 2011
U.S.	$	519,148	$	515,522	$	502,255
Brazil		124,455		125,737		144,669
All Other Foreign		70,359		63,827		65,888
Total	$	713,962	$	705,086	$	712,812

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 $93,128, $84,558 and $82,944 for the fiscal years ended June 30, 2013, June 24, 2012 and June 26, 2011, respectively.

Geographic information for long-lived assets is as follows:

	June 30, 2013		June 24, 2012		June 26, 2011
U.S.	$	200,958	$	215,890	$	229,147
Brazil		16,150		19,121		27,918
All Other Foreign		8,658		7,935		6,242
Total	$	225,766	$	242,946	$	263,307

Long-lived assets are comprised of Property, plant and equipment, net, Intangible assets, net, Investments in unconsolidated affiliates and Other non-current assets.

Geographic information for total assets is as follows:

	June 30, 2013		June 24, 2012		June 26, 2011
U.S.	$	346,651	$	370,572	$	385,200
Brazil		72,735		77,788		113,855
All Other Foreign		36,080		33,873		38,321
Total	$	455,466	$	482,233	$	537,376