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Note 28 - Business Segment Information
 6 Months Ended
Dec. 25, 2011
Segment Reporting Disclosure [Text Block]
28. Business Segment Information

The Company has three operating segments which are also its reportable segments.  Each reportable segment derives its revenues as follows:

 
·
The polyester segment manufactures recycled Chip, POY, textured, dyed, twisted and beamed yarns with sales to other yarn manufacturers, knitters and weavers that produce yarn and/or fabric for the apparel, automotive upholstery, hosiery, home furnishings, industrial and other end-use markets.  The polyester segment consists of manufacturing operations in the U.S. and El Salvador.

 
·
The nylon segment manufactures textured nylon and covered spandex yarns with sales to knitters and weavers that produce fabric for the apparel, hosiery, sock and other end-use markets.  The nylon segment consists of manufacturing operations in the U.S. and Colombia.

 
·
The international segment’s products include textured polyester and various types of resale yarns. 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.  The segment includes manufacturing 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 related SG&A net of segment employee severance.  Segment operating profit represents segment net sales less cost of sales, restructuring and impairment 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
   
For the Six Months Ended
 
   
December 25, 2011
   
December 26, 2010
   
December 25, 2011
   
December 26, 2010
 
Polyester
  $ 95,105     $ 85,684     $ 187,633     $ 171,271  
Nylon
    38,817       36,814       79,777       80,987  
International
    33,188       39,641       70,713       84,973  
Segment sales to external customers
  $ 167,110     $ 162,139     $ 338,123     $ 337,231  

   
For the Three Months Ended
   
For the Six Months Ended
 
   
December 25, 2011
   
December 26, 2010
   
December 25, 2011
   
December 26, 2010
 
Polyester
  $ 438     $ 1,745     $ 890     $ 2,579  
Nylon
    219       433       227       922  
International
    560       213       561       612  
Intersegment sales
  $ 1,217     $ 2,391     $ 1,678     $ 4,113  

   
For the Three Months Ended
   
For the Six Months Ended
 
   
December 25, 2011
   
December 26, 2010
   
December 25, 2011
   
December 26, 2010
 
Polyester
  $ (4,316 )   $ 119     $ (6,690 )   $ 730  
Nylon
    2,312       2,629       4,554       6,543  
International
    1,900       4,398       3,491       9,546  
Segment operating (loss) profit
    (104 )     7,146       1,355       16,819  
Provision for bad debts
    357       86       562       45  
Other operating expenses, net
    490       16       449       259  
Consolidated operating (loss) income
    (951 )     7,044       344       16,515  
Interest income
    (495 )     (668 )     (1,142 )     (1,411 )
Interest expense
    4,222       5,062       8,602       10,331  
Loss on extinguishment of debt
    —       —       462       1,144  
Other non-operating (income) expenses
    (1,479 )     450       (1,479 )     450  
Equity in earnings of unconsolidated affiliates
    (844 )     (5,039 )     (4,303 )     (13,990 )
Loss on previously held equity interest in Repreve Renewables, LLC
    3,656       —       3,656       —  
(Loss) income before income taxes
  $ (6,011 )   $ 7,239     $ (5,452 )   $ 19,991  

   
For the Three Months Ended
   
For the Six Months Ended
 
   
December 25, 2011
   
December 26, 2010
   
December 25, 2011
   
December 26, 2010
 
Polyester
  $ 4,735     $ 4,745     $ 9,534     $ 9,475  
Nylon
    770       836       1,553       1,689  
International
    926       891       1,899       1,793  
Segment depreciation and amortization expense
    6,431       6,472       12,986       12,957  
Depreciation and amortization included in other operating (income) expense
    31       5       37       8  
Amortization included in interest expense
    224       247       445       501  
Consolidated depreciation and amortization expense
  $ 6,686     $ 6,724     $ 13,468     $ 13,466  

   
For the Three Months Ended
   
For the Six Months Ended
 
   
December 25, 2011
   
December 26, 2010
   
December 25, 2011
   
December 26, 2010
 
Polyester
  $ —     $ 1,183     $ —     $ 1,546  
Nylon
    —       —       —       —  
International
    —       —       —       —  
Segment restructuring charges
  $ —     $ 1,183     $ —     $ 1,546  

   
For the Three Months Ended
   
For the Six Months Ended
 
   
December 25, 2011
   
December 26, 2010
   
December 25, 2011
   
December 26, 2010
 
Polyester
  $ 419     $ 6,047     $ 2,844     $ 11,751  
Nylon
    3,082       3,465       6,107       8,232  
International ¹
    2,930       5,289       5,494       11,339  
Segment adjusted profit
  $ 6,431     $ 14,801     $ 14,445     $ 31,322  

¹ excludes $104 of employee severance recorded as SG&A in the December 2011 quarter-to-date and year-to-date periods.

   
For the Three Months Ended
   
For the Six Months Ended
 
   
December 25, 2011
   
December 26, 2010
   
December 25, 2011
   
December 26, 2010
 
Polyester
  $ 1,488     $ 5,478     $ 1,677     $ 8,521  
Nylon
    119       57       190       428  
International
    202       2,041       1,007       3,964  
Segment capital expenditures
    1,809       7,576       2,874       12,913  
Unallocated corporate capital expenditures
    328       253       385       411  
Consolidated capital expenditures
  $ 2,137     $ 7,829     $ 3,259     $ 13,324  

   
December 25, 2011
   
December 26, 2010
 
Polyester
  $ 203,996     $ 209,165  
Nylon
    73,699       82,612  
International
    98,874       116,793  
Segment assets
    376,569       408,570  
All other current assets
    3,898       1,594  
Unallocated corporate PP&E
    9,846       8,750  
All other non-current assets
    3,075       4,011  
Investments in unconsolidated affiliates
    89,220       91,873  
Consolidated assets
  $ 482,608     $ 514,798