Note 23 - Business Segment Information

3 Months Ended

Sep. 27, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

23. 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 that 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 bio-fuel through service agreements and (ii) delivering harvested miscanthus grass to poultry producers for animal bedding. For-hire transportation services 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 are excluded from reportable segments.

The Company evaluates the operating performance of its segments based upon Segment Profit, which represents segment gross profit plus segment depreciation expense. This measurement of segment profit or loss best aligns segment reporting with the current assessments and evaluations performed by, and information provided to, the chief operating decision maker.

In fiscal year 2015, the Company evaluated the operating performance of its segments based upon a different metric, referred to as Segment Adjusted Profit, which was defined as segment gross profit, plus segment depreciation and amortization, less segment SG&A expenses, plus segment other adjustments. SG&A expenses and other adjustments are no longer significant to the segment evaluations performed by the chief operating decision maker. The Company is providing current and comparative selected financial information below under the current method of evaluating segment profitability.

The accounting policies for the segments are consistent with the Company’s accounting policies. Intersegment sales are omitted from the below financial information, as they are (i) insignificant to the Company’s segments and consolidated operations and (ii) excluded from segment evaluations performed by the chief operating decision maker.

Selected financial information is presented below. As described in note 2, certain amounts previously reported, which comprise operating income for the three months ended September 28, 2014, have been revised to reflect reclassification into the All Other category.

	For the Three Months Ended September 27, 2015
	Polyester		Nylon		International		All Other			Total
Net sales	$	90,568	$	40,676	$	29,371	$	1,550		$	162,165
Cost of sales		81,279		34,494		23,780		1,628			141,181
Gross profit (loss)		9,289		6,182		5,591		(78	)		20,984
Segment depreciation expense		2,811		518		221		152			3,702
Segment Profit	$	12,100	$	6,700	$	5,812	$	74		$	24,686

	For the Three Months Ended September 28, 2014
	Polyester		Nylon		International		All Other			Total
Net sales	$	92,978	$	44,710	$	36,494	$	1,379		$	175,561
Cost of sales		82,702		39,561		31,181		1,667			155,111
Gross profit (loss)		10,276		5,149		5,313		(288	)		20,450
Segment depreciation expense		2,414		462		727		110			3,713
Segment Profit (Loss)	$	12,690	$	5,611	$	6,040	$	(178	)	$	24,163

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

	For the Three Months Ended
	September 27, 2015		September 28, 2014
Polyester	$	2,811	$	2,414
Nylon		518		462
International		221		727
All Other category		152		110
Segment depreciation expense		3,702		3,713
Other depreciation expense		149		149
Consolidated depreciation expense	$	3,851	$	3,862

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

	For the Three Months Ended
	September 27, 2015			September 28, 2014
Polyester	$	9,289		$	10,276
Nylon		6,182			5,149
International		5,591			5,313
All Other category		(78	)		(288	)
Segment gross profit		20,984			20,450
SG&A expenses		10,830			11,649
Provision for bad debts		613			584
Other operating (income) expense, net		(146	)		600
Operating income		9,687			7,617
Interest income		(163	)		(317	)
Interest expense		984			819
Equity in earnings of unconsolidated affiliates		(2,860	)		(3,721	)
Income before income taxes	$	11,726		$	10,836

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

	For the Three Months Ended
	September 27, 2015		September 28, 2014
Polyester	$	13,973	$	6,602
Nylon		563		194
International		512		506
All Other category		513		—
Segment capital expenditures		15,561		7,302
Other capital expenditures		314		81
Capital expenditures	$	15,875	$	7,383

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

	September 27, 2015		June 28, 2015
Polyester	$	219,680	$	203,574
Nylon		75,138		71,332
International		53,238		63,031
Segment total assets		348,056		337,937
Other current assets		3,920		5,844
Other PP&E		16,164		13,544
Other non-current assets		4,709		5,146
Investments in unconsolidated affiliates		114,448		113,901
Total assets	$	487,297	$	476,372

Geographic Data:

Geographic information for net sales based on the operating locations from where the items were produced or distributed, is as follows:

	For the Three Months Ended
	September 27, 2015		September 28, 2014
U.S.	$	120,324	$	128,382
Brazil		19,904		30,007
Remaining Foreign		21,937		17,172
Total	$	162,165	$	175,561
Export sales from the Company’s U.S. operations to external customers	$	28,874	$	27,173

Geographic information for long-lived assets is as follows:

	September 27, 2015		June 28, 2015
U.S.	$	257,235	$	242,042
Brazil		6,420		8,207
Remaining Foreign		9,085		9,237
Total	$	272,740	$	259,486

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 27, 2015		June 28, 2015
U.S.	$	409,297	$	388,766
Brazil		40,444		50,300
Remaining Foreign		37,556		37,306
Total	$	487,297	$	476,372