Note 24 - Business Segment Information

6 Months Ended

Dec. 29, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

24. 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, beamed and draw wound 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 selling, general and administrative (“SG&A”) expenses and plus segment other adjustments. Segment operating profit 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 Three Months Ended December 29, 2013
	Polyester		Nylon		International		Total
Net sales	$	89,430	$	39,800	$	31,387	$	160,617
Cost of sales		79,633		35,041		27,446		142,120
Gross profit		9,797		4,759		3,941		18,497
Selling, general and administrative expenses		7,068		2,384		2,039		11,491
Restructuring charges		119		—		—		119
Segment operating profit	$	2,610	$	2,375	$	1,902	$	6,887

	For the Three Months Ended December 23, 2012
	Polyester		Nylon		International		Total
Net sales	$	97,322	$	39,541	$	35,208	$	172,071
Cost of sales		88,885		35,525		30,970		155,380
Gross profit		8,437		4,016		4,238		16,691
Selling, general and administrative expenses		7,177		2,466		1,889		11,532
Segment operating profit	$	1,260	$	1,550	$	2,349	$	5,159

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

	For the Three Months Ended
	December 29, 2013			December 23, 2012
Polyester	$	2,610		$	1,260
Nylon		2,375			1,550
International		1,902			2,349
Segment operating profit		6,887			5,159
Provision for bad debts		87			73
Other operating expense, net		1,026			580
Operating income		5,774			4,506
Interest income		(142	)		(144	)
Interest expense		903			1,361
Loss on extinguishment of debt		—			114
Equity in earnings of unconsolidated affiliates		(5,122	)		(1,258	)
Income before income taxes	$	10,135		$	4,433

Selected financial information for the Polyester, Nylon and International Segments is presented below:

	For the Six Months Ended December 29, 2013
	Polyester		Nylon		International		Total
Net sales	$	182,992	$	79,515	$	66,779	$	329,286
Cost of sales		162,835		70,062		57,907		290,804
Gross profit		20,157		9,453		8,872		38,482
Selling, general and administrative expenses		13,103		4,434		4,068		21,605
Restructuring charges		349		—		—		349
Segment operating profit	$	6,705	$	5,019	$	4,804	$	16,528

	For the Six Months Ended December 23, 2012
	Polyester		Nylon		International		Total
Net sales	$	190,358	$	79,554	$	75,059	$	344,971
Cost of sales		173,714		71,468		65,078		310,260
Gross profit		16,644		8,086		9,981		34,711
Selling, general and administrative expenses		13,928		4,802		3,949		22,679
Segment operating profit	$	2,716	$	3,284	$	6,032	$	12,032

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

	For the Six Months Ended
	December 29, 2013			December 23, 2012
Polyester	$	6,705		$	2,716
Nylon		5,019			3,284
International		4,804			6,032
Segment operating profit		16,528			12,032
Provision for bad debts		49			183
Other operating expense, net		2,420			1,161
Operating income		14,059			10,688
Interest income		(1,356	)		(268	)
Interest expense		2,155			2,805
Loss on extinguishment of debt		—			356
Equity in earnings of unconsolidated affiliates		(11,245	)		(1,929	)
Income before income taxes	$	24,505		$	9,724

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

	For the Three Months Ended				For the Six Months Ended
	December 29, 2013		December 23, 2012		December 29, 2013		December 23, 2012
Polyester	$	2,822	$	4,697	$	5,571	$	9,378
Nylon		521		755		1,265		1,513
International		689		820		1,417		1,686
Segment depreciation and amortization expense		4,032		6,272		8,253		12,577
Depreciation and amortization included in other operating expense, net		80		45		160		91
Amortization included in interest expense		105		163		212		329
Depreciation and amortization expense	$	4,217	$	6,480	$	8,625	$	12,997

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

	For the Three Months Ended				For the Six Months Ended
	December 29, 2013		December 23, 2012		December 29, 2013			December 23, 2012
Polyester	$	191	$	—	$	193		$	94
Nylon		—		—		(157	)		—
International		194		56		254			56
Segment other adjustments	$	385	$	56	$	290		$	150

Segment other adjustments may include items such as severance charges, restructuring charges and recoveries, start-up 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 Three Months Ended				For the Six Months Ended
	December 29, 2013		December 23, 2012		December 29, 2013		December 23, 2012
Polyester	$	5,742	$	5,957	$	12,818	$	12,188
Nylon		2,896		2,305		6,127		4,797
International		2,785		3,225		6,475		7,774
Segment Adjusted Profit	$	11,423	$	11,487	$	25,420	$	24,759

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

	For the Three Months Ended				For the Six Months Ended
	December 29, 2013		December 23, 2012		December 29, 2013		December 23, 2012
Polyester	$	87	$	348	$	92	$	969
Nylon		63		52		136		174
International		415		106		514		399
Intersegment sales	$	565	$	506	$	742	$	1,542

The reconciliations of segment capital expenditures to consolidated capital expenditures are as follows:

	For the Three Months Ended				For the Six Months Ended
	December 29, 2013		December 23, 2012		December 29, 2013		December 23, 2012
Polyester	$	2,641	$	1,189	$	7,033	$	1,918
Nylon		856		114		1,427		170
International		227		124		883		289
Segment capital expenditures		3,724		1,427		9,343		2,377
Unallocated corporate capital expenditures		16		354		88		495
Capital expenditures	$	3,740	$	1,781	$	9,431	$	2,872

The reconciliations of segment total assets to consolidated total assets are as follows:

	December 29, 2013		June 30, 2013
Polyester	$	177,472	$	185,190
Nylon		68,465		72,599
International		77,657		84,151
Segment total assets		323,594		341,940
All other current assets		4,796		3,342
Unallocated corporate PP&E		11,542		11,983
All other non-current assets		4,678		4,940
Investments in unconsolidated affiliates		101,562		93,261
Total assets	$	446,172	$	455,466

Geographic Data:

Geographic information for net sales is as follows:

	For the Three Months Ended				For the Six Months Ended
	December 29, 2013		December 23, 2012		December 29, 2013		December 23, 2012
U.S.	$	121,236	$	126,202	$	244,963	$	248,789
Brazil		26,152		28,406		56,464		60,927
All Other Foreign		13,229		17,463		27,859		35,255
Total	$	160,617	$	172,071	$	329,286	$	344,971

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 $26,699 and $22,578 for the three months ended December 29, 2013 and December 23, 2012, respectively. Export sales from the Company’s U.S. operations to external customers were $49,955 and $45,563 for the six months ended December 29, 2013 and December 23, 2012, respectively.

Geographic information for long-lived assets is as follows:

	December 29, 2013		June 30, 2013
U.S.	$	210,413	$	200,958
Brazil		12,277		16,150
All Other Foreign		8,493		8,658
Total	$	231,183	$	225,766

Long-lived assets are comprised of property, plant and equipment, net, intangible assets, net, investments in unconsolidated affiliates and other non-current assets, excluding other investments.

Geographic information for total assets is as follows:

	December 29, 2013		June 30, 2013
U.S.	$	346,974	$	346,651
Brazil		66,545		72,735
All Other Foreign		32,653		36,080
Total	$	446,172	$	455,466