Business Segment Information

6 Months Ended

Dec. 25, 2016

Segment Reporting [Abstract]

Segment Reporting

21.  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 in Brazil and sales offices in Brazil, China and Sri Lanka.

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 (up through the date of sale, December 23, 2016) and for-hire transportation services. 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 and six months ended December 27, 2015 have been revised to match the current presentation.

	For the Three Months Ended December 25, 2016
	Polyester		Nylon		International		All Other			Total
Net sales	$	86,671	$	28,302	$	38,868	$	1,314		$	155,155
Cost of sales		76,200		25,679		29,419		1,727			133,025
Gross profit (loss)		10,471		2,623		9,449		(413	)		22,130
Segment depreciation expense		3,384		530		228		244			4,386
Segment Profit (Loss)	$	13,855	$	3,153	$	9,677	$	(169	)	$	26,516

	For the Three Months Ended December 27, 2015
	Polyester		Nylon		International		All Other			Total
Net sales	$	94,414	$	35,767	$	24,812	$	1,343		$	156,336
Cost of sales		82,102		30,552		20,431		1,438			134,523
Gross profit (loss)		12,312		5,215		4,381		(95	)		21,813
Segment depreciation expense		2,781		470		192		162			3,605
Segment Profit	$	15,093	$	5,685	$	4,573	$	67		$	25,418

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

	For the Three Months Ended
	December 25, 2016			December 27, 2015
Polyester	$	10,471		$	12,312
Nylon		2,623			5,215
International		9,449			4,381
All Other		(413	)		(95	)
Segment gross profit		22,130			21,813
Selling, general and administrative expenses		12,868			12,419
(Benefit) provision for bad debts		(95	)		559
Other operating expense, net		319			206
Operating income		9,038			8,629
Interest income		(183	)		(166	)
Interest expense		914			816
Loss on sale of business		1,662			—
Equity in loss (earnings) of unconsolidated affiliates		367			(303	)
Income before income taxes	$	6,278		$	8,282

	For the Six Months Ended December 25, 2016
	Polyester		Nylon		International		All Other			Total
Net sales	$	171,356	$	56,797	$	84,212	$	2,759		$	315,124
Cost of sales		152,435		51,037		62,493		3,482			269,447
Gross profit (loss)		18,921		5,760		21,719		(723	)		45,677
Segment depreciation expense		6,492		1,040		474		496			8,502
Segment Profit (Loss)	$	25,413	$	6,800	$	22,193	$	(227	)	$	54,179

	For the Six Months Ended December 27, 2015
	Polyester		Nylon		International		All Other			Total
Net sales	$	189,020	$	72,405	$	54,183	$	2,893		$	318,501
Cost of sales		167,110		61,317		44,211		3,066			275,704
Gross profit (loss)		21,910		11,088		9,972		(173	)		42,797
Segment depreciation expense		5,632		948		413		314			7,307
Segment Profit	$	27,542	$	12,036	$	10,385	$	141		$	50,104

	For the Six Months Ended
	December 25, 2016			December 27, 2015
Polyester	$	18,921		$	21,910
Nylon		5,760			11,088
International		21,719			9,972
All Other		(723	)		(173	)
Segment gross profit		45,677			42,797
Selling, general and administrative expenses		24,278			23,249
(Benefit) provision for bad debts		(462	)		1,172
Other operating expense, net		249			60
Operating income		21,612			18,316
Interest income		(329	)		(329	)
Interest expense		1,606			1,800
Loss on sale of business		1,662			—
Equity in earnings of unconsolidated affiliates		(473	)		(3,163	)
Income before income taxes	$	19,146		$	20,008

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

	December 25, 2016		June 26, 2016
Polyester	$	258,110	$	243,105
Nylon		61,203		63,141
International		88,788		73,650
Segment total assets		408,101		379,896
Other current assets		13,181		6,674
Other PP&E		13,520		16,597
Other non-current assets		201		4,863
Investments in unconsolidated affiliates		115,841		117,412
Total assets	$	550,844	$	525,442