Note 26 - Business Segment Information

12 Months Ended

Jun. 28, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

26. Business Segment Information

The Company has three reportable segments. Operations and revenues for each segment are described below:

● 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 spandex covered 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.

In addition to its reportable segments, the Company’s selected financial information includes an All Other category. All Other consists primarily of Renewables (an operating segment which does not meet quantitative thresholds for reporting), for-hire transportation services and consulting services. Revenue for Renewables is primarily derived from (i) facilitating the use of miscanthus grass as biomass feedstock through service agreements and (ii) delivering harvested miscanthus grass to poultry producers for animal bedding. For-hire revenues are derived from performing common carrier services utilizing the Company’s fleet of transportation equipment. Revenues for consulting services are derived from providing process improvement and change management consulting services to entities across various industries.

The operations within All Other (i) are not subject to review by the chief operating decision maker at a level consistent with the Company’s other operations, (ii) are not regularly evaluated using the same metrics applied to the Company’s other operations and (iii) do not qualify for aggregation with an existing reportable segment. Therefore, such operations do not comprise a reportable segment. Any comparative amounts for All Other in prior year periods are insignificant.

The Company evaluates the operating performance of its reportable segments based upon Segment Adjusted Profit, which is defined as segment gross profit plus segment depreciation and amortization less segment SG&A expenses 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.

For the Polyester Segment, fiscal year 2013 contained one additional fiscal week. For the Nylon Segment's operations in the United States, fiscal year 2013 contained one additional fiscal week.

Selected financial information is presented below:

	For the Fiscal Year Ended June 28, 2015
	Polyester		Nylon		International		All Other			Total
Net sales	$	377,281	$	168,570	$	134,992	$	6,278		$	687,121
Cost of sales		328,575		147,531		113,556		6,754			596,416
Gross profit (loss)		48,706		21,039		21,436		(476	)		90,705
SG&A expenses		29,403		9,903		8,689		1,677			49,672
Other operating expense, net		84		16		111		19			230
Segment operating profit (loss)	$	19,219	$	11,120	$	12,636	$	(2,172	)	$	40,803

	For the Fiscal Year Ended June 29, 2014
	Polyester		Nylon			International		Total
Net sales	$	389,172	$	163,824		$	134,906	$	687,902
Cost of sales		342,393		143,649			118,598		604,640
Gross profit		46,779		20,175			16,308		83,262
SG&A expenses		28,422		9,531			8,250		46,203
Other operating expense, net		438		(24	)		—		414
Segment operating profit	$	17,919	$	10,668		$	8,058	$	36,645

	For the Fiscal Year Ended June 30, 2013
	Polyester		Nylon			International		Total
Net sales	$	398,707	$	164,085		$	151,170	$	713,962
Cost of sales		363,545		146,033			131,280		640,858
Gross profit		35,162		18,052			19,890		73,104
SG&A expenses		29,114		9,930			8,342		47,386
Other operating expense, net		—		(93	)		—		(93	)
Segment operating profit	$	6,048	$	8,215		$	11,548	$	25,811

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

	For the Fiscal Years Ended
	June 28, 2015			June 29, 2014			June 30, 2013
Polyester	$	19,219		$	17,919		$	6,048
Nylon		11,120			10,668			8,215
International		12,636			8,058			11,548
All Other		(2,172	)		—			—
Segment operating profit		40,803			36,645			25,811
Provision (benefit) for bad debts		947			287			(154	)
Other operating expense, net		1,370			4,875			3,502
Operating income		38,486			31,483			22,463
Interest income		(916	)		(1,790	)		(698	)
Interest expense		4,025			4,329			4,489
Loss on extinguishment of debt		1,040			—			1,102
Other non-operating expense		—			126			—
Equity in earnings of unconsolidated affiliates		(19,475	)		(19,063	)		(11,444	)
Income before income taxes	$	53,812		$	47,881		$	29,014

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

	For the Fiscal Years Ended
	June 28, 2015		June 29, 2014		June 30, 2013
Polyester	$	12,789	$	11,702	$	17,234
Nylon		2,080		2,276		3,070
International		2,101		3,151		3,418
Segment depreciation and amortization expense		16,970		17,129		23,722
Other depreciation and amortization expense		1,073		767		862
Depreciation and amortization expense	$	18,043	$	17,896	$	24,584

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

	For the Fiscal Years Ended
	June 28, 2015		June 29, 2014			June 30, 2013
Polyester	$	249	$	637		$	618
Nylon		110		(119	)		245
International		—		352			115
Segment other adjustments	$	359	$	870		$	978

Segment other adjustments include 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 consists of the following:

	For the Fiscal Years Ended
	June 28, 2015		June 29, 2014		June 30, 2013
Polyester	$	32,341	$	30,696	$	23,900
Nylon		13,326		12,801		11,437
International		14,848		11,561		15,081
Segment Adjusted Profit	$	60,515	$	55,058	$	50,418

Intersegment sales consist of the following:

	For the Fiscal Years Ended
	June 28, 2015		June 29, 2014		June 30, 2013
Polyester	$	165	$	651	$	1,296
Nylon		133		295		773
International		254		1,474		772
Intersegment sales	$	552	$	2,420	$	2,841

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

	For the Fiscal Years Ended
	June 28, 2015		June 29, 2014		June 30, 2013
Polyester	$	21,267	$	14,701	$	5,730
Nylon		2,392		2,284		482
International		1,468		1,637		1,336
Segment capital expenditures		25,127		18,622		7,548
Other capital expenditures		839		469		1,261
Capital expenditures	$	25,966	$	19,091	$	8,809

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

	June 28, 2015		June 29, 2014		June 30, 2013
Polyester	$	203,574	$	192,697	$	185,190
Nylon		71,332		75,397		72,599
International		63,031		81,604		84,151
Segment total assets		337,937		349,698		341,940
Other current assets		5,844		2,549		3,342
Other PP&E		13,544		12,250		11,983
Other non-current assets		5,146		5,341		4,940
Investments in unconsolidated affiliates		113,901		99,229		93,261
Total assets	$	476,372	$	469,067	$	455,466

Geographic Data:

Geographic information for net sales is as follows:

	For the Fiscal Years Ended
	June 28, 2015		June 29, 2014		June 30, 2013
U.S.	$	509,490	$	512,496	$	519,148
Brazil		101,912		113,448		124,455
Remaining Foreign		75,719		61,958		70,359
Total	$	687,121	$	687,902	$	713,962
Export sales from the Company’s U.S. operations to external customers	$	119,548	$	100,546	$	93,128

The information for net sales is based on the operating locations from where the items were produced or distributed.

Geographic information for long-lived assets is as follows:

	June 28, 2015		June 29, 2014		June 30, 2013
U.S.	$	242,042	$	215,910	$	200,958
Brazil		8,207		12,188		16,150
Remaining Foreign		9,237		7,413		8,658
Total	$	259,486	$	235,511	$	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.

Geographic information for total assets is as follows:

	June 28, 2015		June 29, 2014		June 30, 2013
U.S.	$	388,766	$	362,510	$	346,651
Brazil		50,300		70,581		72,735
Remaining Foreign		37,306		35,976		36,080
Total	$	476,372	$	469,067	$	455,466