Note 24 - Business Segment Information

9 Months Ended

Mar. 29, 2015

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 March 29, 2015
	Polyester		Nylon		International		Total
Net sales	$	98,759	$	40,754	$	31,017	$	170,530
Cost of sales		85,734		36,530		26,003		148,267
Gross profit		13,025		4,224		5,014		22,263
Selling, general and administrative expenses		7,675		2,600		1,985		12,260
Other operating expense		—		—		47		47
Segment operating profit	$	5,350	$	1,624	$	2,982	$	9,956

	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

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

	For the Three Months Ended
	March 29, 2015			March 30, 2014
Polyester	$	5,350		$	3,225
Nylon		1,624			2,345
International		2,982			1,737
Segment operating profit		9,956			7,307
Provision for bad debts		—			137
Other operating expense, net		925			1,077
Operating income		9,031			6,093
Interest income		(247	)		(214	)
Interest expense		1,209			962
Loss on extinguishment of debt		1,040			—
Equity in earnings of unconsolidated affiliates		(5,459	)		(3,585	)
Income before income taxes	$	12,488		$	8,930

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

	For the Nine Months Ended March 29, 2015
	Polyester		Nylon		International		Total
Net sales	$	282,168	$	124,676	$	101,017	$	507,861
Cost of sales		246,149		109,598		85,613		441,360
Gross profit		36,019		15,078		15,404		66,501
Selling, general and administrative expenses		22,233		7,475		6,422		36,130
Other operating expense		26		16		99		141
Segment operating profit	$	13,760	$	7,587	$	8,883	$	30,230

	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

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

	For the Nine Months Ended
	March 29, 2015			March 30, 2014
Polyester	$	13,760		$	9,930
Nylon		7,587			7,364
International		8,883			6,541
Segment operating profit		30,230			23,835
Provision for bad debts		654			186
Other operating expense, net		2,994			3,497
Operating income		26,582			20,152
Interest income		(873	)		(1,570	)
Interest expense		3,237			3,117
Loss on extinguishment of debt		1,040			—
Equity in earnings of unconsolidated affiliates		(12,461	)		(14,830	)
Income before income taxes	$	35,639		$	33,435

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 29, 2015		March 30, 2014		March 29, 2015		March 30, 2014
Polyester	$	3,196	$	3,109	$	9,277	$	8,680
Nylon		522		510		1,532		1,775
International		377		854		1,818		2,271
Segment depreciation and amortization expense		4,095		4,473		12,627		12,726
Depreciation and amortization included in other operating expense, net		99		87		295		247
Amortization charged to interest expense		144		105		402		317
Depreciation and amortization expense	$	4,338	$	4,665	$	13,324	$	13,290

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

	For the Three Months Ended				For the Nine Months Ended
	March 29, 2015		March 30, 2014		March 29, 2015		March 30, 2014
Polyester	$	115	$	172	$	227	$	365
Nylon		39		—		104		(157	)
International		—		98		—		352
Segment other adjustments	$	154	$	270	$	331	$	560

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 29, 2015		March 30, 2014		March 29, 2015		March 30, 2014
Polyester	$	8,661	$	6,513	$	23,290	$	19,331
Nylon		2,185		3,010		9,239		9,137
International		3,406		2,689		10,800		9,164
Segment Adjusted Profit	$	14,252	$	12,212	$	43,329	$	37,632

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

	For the Three Months Ended				For the Nine Months Ended
	March 29, 2015		March 30, 2014		March 29, 2015		March 30, 2014
Polyester	$	22	$	132	$	164	$	224
Nylon		52		68		127		204
International		87		563		254		1,077
Intersegment sales	$	161	$	763	$	545	$	1,505

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

	For the Three Months Ended				For the Nine Months Ended
	March 29, 2015		March 30, 2014		March 29, 2015		March 30, 2014
Polyester	$	4,681	$	3,008	$	16,707	$	10,041
Nylon		940		423		1,415		1,850
International		72		179		807		1,062
Segment capital expenditures		5,693		3,610		18,929		12,953
Unallocated corporate capital expenditures		258		349		464		437
Capital expenditures	$	5,951	$	3,959	$	19,393	$	13,390

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

	March 29, 2015		June 29, 2014
Polyester	$	205,973	$	192,697
Nylon		70,216		75,397
International		65,221		81,604
Segment total assets		341,410		349,698
All other current assets		5,911		2,549
Unallocated corporate PP&E		12,699		12,250
All other non-current assets		5,177		5,341
Investments in unconsolidated affiliates		110,154		99,229
Total assets	$	475,351	$	469,067

Geographic Data:

Geographic information for net sales is as follows:

	For the Three Months Ended				For the Nine Months Ended
	March 29, 2015		March 30, 2014		March 29, 2015		March 30, 2014
U.S.	$	128,108	$	132,431	$	373,888	$	377,394
Brazil		23,639		28,328		79,333		84,792
All Other Foreign		18,783		16,105		54,640		43,964
Total	$	170,530	$	176,864	$	507,861	$	506,150

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 $32,373 and $24,027 for the three months ended March 29, 2015 and March 30, 2014, respectively. Export sales from the Company’s U.S. operations to external customers were $87,472 and $73,982 for the nine months ended March 29, 2015 and March 30, 2014, respectively.

Geographic information for long-lived assets is as follows:

	March 29, 2015		June 29, 2014
U.S.	$	235,460	$	215,910
Brazil		7,590		12,188
All Other Foreign		9,156		7,413
Total	$	252,206	$	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:

	March 29, 2015		June 29, 2014
U.S.	$	383,714	$	362,510
Brazil		51,931		70,581
All Other Foreign		39,706		35,976
Total	$	475,351	$	469,067