Note 24 - Business Segment Information

6 Months Ended

Dec. 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 yarns (both nylon and polyester) 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 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 28, 2014
	Polyester		Nylon		International		Total
Net sales	$	90,431	$	39,212	$	33,506	$	163,149
Cost of sales		77,892		33,545		28,429		139,866
Gross profit		12,539		5,667		5,077		23,283
Selling, general and administrative expenses		7,752		2,605		2,227		12,584
Other operating expenses		—		—		31		31
Segment operating profit	$	4,787	$	3,062	$	2,819	$	10,668

	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

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

	For the Three Months Ended
	December 28, 2014			December 29, 2013
Polyester	$	4,787		$	2,610
Nylon		3,062			2,375
International		2,819			1,902
Segment operating profit		10,668			6,887
Provision for bad debts		63			87
Other operating expense, net		671			1,026
Operating income		9,934			5,774
Interest income		(309	)		(142	)
Interest expense		1,209			903
Equity in earnings of unconsolidated affiliates		(3,281	)		(5,122	)
Income before income taxes	$	12,315		$	10,135

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

	For the Six Months Ended December 28, 2014
	Polyester		Nylon		International		Total
Net sales	$	183,409	$	83,922	$	70,000	$	337,331
Cost of sales		160,415		73,068		59,610		293,093
Gross profit		22,994		10,854		10,390		44,238
Selling, general and administrative expenses		14,558		4,875		4,437		23,870
Other operating expenses		26		16		52		94
Segment operating profit	$	8,410	$	5,963	$	5,901	$	20,274

	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

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

	For the Six Months Ended
	December 28, 2014			December 29, 2013
Polyester	$	8,410		$	6,705
Nylon		5,963			5,019
International		5,901			4,804
Segment operating profit		20,274			16,528
Provision for bad debts		654			49
Other operating expense, net		2,069			2,420
Operating income		17,551			14,059
Interest income		(626	)		(1,356	)
Interest expense		2,028			2,155
Equity in earnings of unconsolidated affiliates		(7,002	)		(11,245	)
Income before income taxes	$	23,151		$	24,505

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 28, 2014		December 29, 2013		December 28, 2014		December 29, 2013
Polyester	$	3,056	$	2,822	$	6,081	$	5,571
Nylon		509		521		1,010		1,265
International		685		689		1,441		1,417
Segment depreciation and amortization expense		4,250		4,032		8,532		8,253
Depreciation and amortization included in other operating expense, net		98		80		196		160
Amortization charged to interest expense		146		105		258		212
Depreciation and amortization expense	$	4,494	$	4,217	$	8,986	$	8,625

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

	For the Three Months Ended					For the Six Months Ended
	December 28, 2014			December 29, 2013		December 28, 2014		December 29, 2013
Polyester	$	(10	)	$	191	$	112	$	193
Nylon		22			—		65		(157	)
International		—			194		—		254
Segment other adjustments	$	12		$	385	$	177	$	290

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 28, 2014		December 29, 2013		December 28, 2014		December 29, 2013
Polyester	$	7,833	$	5,742	$	14,629	$	12,818
Nylon		3,593		2,896		7,054		6,127
International		3,535		2,785		7,394		6,475
Segment Adjusted Profit	$	14,961	$	11,423	$	29,077	$	25,420

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

	For the Three Months Ended				For the Six Months Ended
	December 28, 2014		December 29, 2013		December 28, 2014		December 29, 2013
Polyester	$	19	$	87	$	142	$	92
Nylon		70		63		75		136
International		137		415		167		514
Intersegment sales	$	226	$	565	$	384	$	742

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

	For the Three Months Ended				For the Six Months Ended
	December 28, 2014		December 29, 2013		December 28, 2014		December 29, 2013
Polyester	$	5,424	$	2,641	$	12,026	$	7,033
Nylon		281		856		475		1,427
International		229		227		735		883
Segment capital expenditures		5,934		3,724		13,236		9,343
Unallocated corporate capital expenditures		125		16		206		88
Capital expenditures	$	6,059	$	3,740	$	13,442	$	9,431

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

	December 28, 2014		June 29, 2014
Polyester	$	197,126	$	192,697
Nylon		67,297		75,397
International		72,159		81,604
Segment total assets		336,582		349,698
All other current assets		7,093		2,549
Unallocated corporate PP&E		11,887		12,250
All other non-current assets		5,181		5,341
Investments in unconsolidated affiliates		105,748		99,229
Total assets	$	466,491	$	469,067

Geographic Data:

Geographic information for net sales is as follows:

	For the Three Months Ended				For the Six Months Ended
	December 28, 2014		December 29, 2013		December 28, 2014		December 29, 2013
U.S.	$	118,777	$	121,236	$	245,780	$	244,963
Brazil		25,687		26,152		55,694		56,464
All Other Foreign		18,685		13,229		35,857		27,859
Total	$	163,149	$	160,617	$	337,331	$	329,286

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 $27,926 and $26,699 for the three months ended December 28, 2014 and December 29, 2013, respectively. Export sales from the Company’s U.S. operations to external customers were $55,099 and $49,955 for the six months ended December 28, 2014 and December 29, 2013, respectively.

Geographic information for long-lived assets is as follows:

	December 28, 2014		June 29, 2014
U.S.	$	224,786	$	215,910
Brazil		9,221		12,188
All Other Foreign		7,393		7,413
Total	$	241,400	$	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:

	December 28, 2014		June 29, 2014
U.S.	$	368,720	$	362,510
Brazil		61,864		70,581
All Other Foreign		35,907		35,976
Total	$	466,491	$	469,067