Note 24 - Business Segment Information

3 Months Ended

Sep. 28, 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 primarily for the apparel and hosiery 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 a manufacturing location 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 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 September 28, 2014
	Polyester		Nylon		International		Total
Net sales	$	92,978	$	44,710	$	36,494	$	174,182
Cost of sales		82,523		39,523		31,181		153,227
Gross profit		10,455		5,187		5,313		20,955
Selling, general and administrative expenses		6,806		2,270		2,210		11,286
Other operating expenses		26		16		21		63
Segment operating profit	$	3,623	$	2,901	$	3,082	$	9,606

	For the Three Months Ended September 29, 2013
	Polyester		Nylon		International		Total
Net sales	$	93,562	$	39,715	$	35,392	$	168,669
Cost of sales		83,202		35,021		30,461		148,684
Gross profit		10,360		4,694		4,931		19,985
Selling, general and administrative expenses		6,035		2,050		2,029		10,114
Restructuring charges		230		—		—		230
Segment operating profit	$	4,095	$	2,644	$	2,902	$	9,641

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

	For the Three Months Ended
	September 28, 2014			September 29, 2013
Polyester	$	3,623		$	4,095
Nylon		2,901			2,644
International		3,082			2,902
Segment operating profit		9,606			9,641
Provision (benefit) for bad debts		591			(38	)
Other operating expense, net		1,398			1,394
Operating income		7,617			8,285
Interest income		(317	)		(1,214	)
Interest expense		819			1,252
Equity in earnings of unconsolidated affiliates		(3,721	)		(6,123	)
Income before income taxes	$	10,836		$	14,370

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

	For the Three Months Ended
	September 28, 2014		September 29, 2013
Polyester	$	3,025	$	2,749
Nylon		501		744
International		756		728
Segment depreciation and amortization expense		4,282		4,221
Depreciation and amortization included in other operating expense, net		98		80
Amortization included in interest expense		112		107
Depreciation and amortization expense	$	4,492	$	4,408

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

	For the Three Months Ended
	September 28, 2014		September 29, 2013
Polyester	$	122	$	2
Nylon		43		(157	)
International		—		60
Segment other adjustments	$	165	$	(95	)

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
	September 28, 2014		September 29, 2013
Polyester	$	6,796	$	7,076
Nylon		3,461		3,231
International		3,859		3,690
Segment Adjusted Profit	$	14,116	$	13,997

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

	For the Three Months Ended
	September 28, 2014		September 29, 2013
Polyester	$	123	$	5
Nylon		5		73
International		30		99
Intersegment sales	$	158	$	177

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

	For the Three Months Ended
	September 28, 2014		September 29, 2013
Polyester	$	6,602	$	4,392
Nylon		194		571
International		506		656
Segment capital expenditures		7,302		5,619
Unallocated corporate capital expenditures		81		72
Capital expenditures	$	7,383	$	5,691

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

	September 28, 2014		June 29, 2014
Polyester	$	197,689	$	192,697
Nylon		71,711		75,397
International		77,317		81,604
Segment total assets		346,717		349,698
All other current assets		3,751		2,549
Unallocated corporate PP&E		12,006		12,250
All other non-current assets		5,248		5,341
Investments in unconsolidated affiliates		102,811		99,229
Total assets	$	470,533	$	469,067

Geographic Data:

Geographic information for net sales is as follows:

	For the Three Months Ended
	September 28, 2014		September 29, 2013
U.S.	$	127,003	$	123,727
Brazil		30,007		30,313
All Other Foreign		17,172		14,629
Total	$	174,182	$	168,669

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 $27,173 and $23,256 for the three months ended September 28, 2014 and September 29, 2013, respectively.

Geographic information for long-lived assets is as follows:

	September 28, 2014		June 29, 2014
U.S.	$	219,713	$	215,910
Brazil		10,522		12,188
All Other Foreign		7,345		7,413
Total	$	237,580	$	235,511

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:

	September 28, 2014		June 29, 2014
U.S.	$	367,964	$	362,510
Brazil		65,926		70,581
All Other Foreign		36,643		35,976
Total	$	470,533	$	469,067