Business Segment Information

3 Months Ended

Sep. 25, 2016

Segment Reporting [Abstract]

Segment Reporting

20.  Business Segment Information

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

• The Polyester Segment manufactures plastic bottle flake, Chip and POY, along with textured, solution and package 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 United States and El Salvador.

• The Nylon Segment manufactures textured nylon yarns 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 United States and Colombia.

• The International Segment’s products primarily include textured polyester and various types of resale yarns and staple fiber (both virgin and recycled). The International Segment sells its yarns and staple fiber 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.  The International Segment includes a manufacturing location and sales offices in Brazil and a sales office in China.

In addition to the Company’s reportable segments, the selected financial information presented below includes an All Other category. All Other consists primarily of Renewables (an operating segment that does not meet quantitative thresholds for reporting) and for-hire transportation 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 revenue is derived from performing common carrier services utilizing the Company’s fleet of transportation equipment.

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 (Loss), which represents segment gross profit (loss) 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.

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, “Basis of Presentation; Condensed Notes,” certain amounts previously reported for the Polyester and Nylon Segments for the three months ended September 27, 2015 have been revised to match the current presentation.

	For the Three Months Ended September 25, 2016
	Polyester		Nylon		International		All Other			Total
Net sales	$	84,685	$	28,495	$	45,344	$	1,445		$	159,969
Cost of sales		76,235		25,358		33,074		1,755			136,422
Gross profit (loss)		8,450		3,137		12,270		(310	)		23,547
Segment depreciation expense		3,108		510		246		252			4,116
Segment Profit (Loss)	$	11,558	$	3,647	$	12,516	$	(58	)	$	27,663

	For the Three Months Ended September 27, 2015
	Polyester		Nylon		International		All Other			Total
Net sales	$	94,606	$	36,638	$	29,371	$	1,550		$	162,165
Cost of sales		85,008		30,765		23,780		1,628			141,181
Gross profit (loss)		9,598		5,873		5,591		(78	)		20,984
Segment depreciation expense		2,851		478		221		152			3,702
Segment Profit	$	12,449	$	6,351	$	5,812	$	74		$	24,686

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

	For the Three Months Ended
	September 25, 2016			September 27, 2015
Polyester	$	8,450		$	9,598
Nylon		3,137			5,873
International		12,270			5,591
All Other		(310	)		(78	)
Segment gross profit		23,547			20,984
Selling, general and administrative expenses		11,410			10,830
(Benefit) provision for bad debts		(367	)		613
Other operating income, net		(70	)		(146	)
Operating income		12,574			9,687
Interest income		(146	)		(163	)
Interest expense		692			984
Equity in earnings of unconsolidated affiliates		(840	)		(2,860	)
Income before income taxes	$	12,868		$	11,726

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

	For the Three Months Ended
	September 25, 2016		September 27, 2015
Polyester	$	7,875	$	13,973
Nylon		242		563
International		1,937		512
Segment capital expenditures		10,054		15,048
Other capital expenditures		81		827
Capital expenditures	$	10,135	$	15,875

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

	September 25, 2016		June 26, 2016
Polyester	$	256,130	$	243,105
Nylon		62,358		63,141
International		81,309		73,650
Segment total assets		399,797		379,896
Other current assets		9,874		6,674
Other PP&E		16,245		16,597
Other non-current assets		4,818		4,863
Investments in unconsolidated affiliates		117,239		117,412
Total assets	$	547,973	$	525,442