Note 24 - Business Segment Information

9 Months Ended

Mar. 30, 2014

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 March 30, 2014
	Polyester		Nylon		International		Total
Net sales	$	103,941	$	39,208	$	33,715	$	176,864
Cost of sales		92,928		34,168		30,009		157,105
Gross profit		11,013		5,040		3,706		19,759
Selling, general and administrative expenses		7,781		2,540		1,969		12,290
Other operating expense		7		155		—		162
Segment operating profit	$	3,225	$	2,345	$	1,737	$	7,307

	For the Three Months Ended March 24, 2013
	Polyester			Nylon		International		Total
Net sales	$	96,389		$	38,007	$	33,853	$	168,249
Cost of sales		91,355			34,326		29,887		155,568
Gross profit		5,034			3,681		3,966		12,681
Selling, general and administrative expenses		6,793			2,297		2,172		11,262
Segment operating (loss) profit	$	(1,759	)	$	1,384	$	1,794	$	1,419

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

	For the Three Months Ended
	March 30, 2014			March 24, 2013
Polyester	$	3,225		$	(1,759	)
Nylon		2,345			1,384
International		1,737			1,794
Segment operating profit		7,307			1,419
Provision for bad debts		137			74
Other operating expense, net		1,077			616
Operating income		6,093			729
Interest income		(214	)		(240	)
Interest expense		962			1,236
Loss on extinguishment of debt		—			746
Other non-operating expense		—			96
Equity in earnings of unconsolidated affiliates		(3,585	)		(4,783	)
Income before income taxes	$	8,930		$	3,674

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

	For the Nine Months Ended March 30, 2014
	Polyester		Nylon		International		Total
Net sales	$	286,933	$	118,723	$	100,494	$	506,150
Cost of sales		255,763		104,230		87,916		447,909
Gross profit		31,170		14,493		12,578		58,241
Selling, general and administrative expenses		20,884		6,974		6,037		33,895
Other operating expense		356		155		—		511
Segment operating profit	$	9,930	$	7,364	$	6,541	$	23,835

	For the Nine Months Ended March 24, 2013
	Polyester		Nylon		International		Total
Net sales	$	286,747	$	117,561	$	108,912	$	513,220
Cost of sales		265,069		105,794		94,965		465,828
Gross profit		21,678		11,767		13,947		47,392
Selling, general and administrative expenses		20,721		7,099		6,121		33,941
Segment operating profit	$	957	$	4,668	$	7,826	$	13,451

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

	For the Nine Months Ended
	March 30, 2014			March 24, 2013
Polyester	$	9,930		$	957
Nylon		7,364			4,668
International		6,541			7,826
Segment operating profit		23,835			13,451
Provision for bad debts		186			257
Other operating expense, net		3,497			1,777
Operating income		20,152			11,417
Interest income		(1,570	)		(508	)
Interest expense		3,117			4,041
Loss on extinguishment of debt		—			1,102
Other non-operating expense		—			96
Equity in earnings of unconsolidated affiliates		(14,830	)		(6,712	)
Income before income taxes	$	33,435		$	13,398

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 30, 2014		March 24, 2013		March 30, 2014		March 24, 2013
Polyester	$	3,109	$	4,449	$	8,680	$	13,827
Nylon		510		745		1,775		2,258
International		854		860		2,271		2,546
Segment depreciation and amortization expense		4,473		6,054		12,726		18,631
Depreciation and amortization included in other operating expense, net		87		55		247		146
Amortization included in interest expense		105		157		317		486
Depreciation and amortization expense	$	4,665	$	6,266	$	13,290	$	19,263

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

	For the Three Months Ended				For the Nine Months Ended
	March 30, 2014		March 24, 2013		March 30, 2014			March 24, 2013
Polyester	$	172	$	263	$	365		$	357
Nylon		—		87		(157	)		87
International		98		—		352			56
Segment other adjustments	$	270	$	350	$	560		$	500

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 Nine Months Ended
	March 30, 2014		March 24, 2013		March 30, 2014		March 24, 2013
Polyester	$	6,513	$	2,953	$	19,331	$	15,141
Nylon		3,010		2,216		9,137		7,013
International		2,689		2,654		9,164		10,428
Segment Adjusted Profit	$	12,212	$	7,823	$	37,632	$	32,582

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

	For the Three Months Ended				For the Nine Months Ended
	March 30, 2014		March 24, 2013		March 30, 2014		March 24, 2013
Polyester	$	132	$	62	$	224	$	1,031
Nylon		68		249		204		423
International		563		373		1,077		772
Intersegment sales	$	763	$	684	$	1,505	$	2,226

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

	For the Three Months Ended				For the Nine Months Ended
	March 30, 2014		March 24, 2013		March 30, 2014		March 24, 2013
Polyester	$	3,008	$	641	$	10,041	$	2,559
Nylon		423		82		1,850		252
International		179		345		1,062		634
Segment capital expenditures		3,610		1,068		12,953		3,445
Unallocated corporate capital expenditures		349		582		437		1,077
Capital expenditures	$	3,959	$	1,650	$	13,390	$	4,522

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

	March 30, 2014		June 30, 2013
Polyester	$	189,320	$	185,190
Nylon		73,501		72,599
International		79,579		84,151
Segment total assets		342,400		341,940
All other current assets		2,710		3,342
Unallocated corporate PP&E		12,461		11,983
All other non-current assets		4,638		4,940
Investments in unconsolidated affiliates		98,430		93,261
Total assets	$	460,639	$	455,466

Geographic Data:

Geographic information for net sales is as follows:

	For the Three Months Ended				For the Nine Months Ended
	March 30, 2014		March 24, 2013		March 30, 2014		March 24, 2013
U.S.	$	132,431	$	123,895	$	377,394	$	372,684
Brazil		28,328		28,357		84,792		89,284
All Other Foreign		16,105		15,997		43,964		51,252
Total	$	176,864	$	168,249	$	506,150	$	513,220

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 $24,027 and $20,895 for the three months ended March 30, 2014 and March 24, 2013, respectively. Export sales from the Company’s U.S. operations to external customers were $73,982 and $66,459 for the nine months ended March 30, 2014 and March 24, 2013, respectively.

Geographic information for long-lived assets is as follows:

	March 30, 2014		June 30, 2013
U.S.	$	209,496	$	200,958
Brazil		12,063		16,150
All Other Foreign		7,954		8,658
Total	$	229,513	$	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:

	March 30, 2014		June 30, 2013
U.S.	$	357,131	$	346,651
Brazil		68,496		72,735
All Other Foreign		35,012		36,080
Total	$	460,639	$	455,466