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Note 26 - Business Segment Information
 3 Months Ended
Sep. 23, 2012
Segment Reporting Disclosure [Text Block]

26. 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 Chip, POY, textured, dyed, twisted and beamed yarns, virgin and recycled, with sales primarily to other yarn manufacturers, knitters and weavers that produce yarn and/or fabric for the apparel, hosiery, automotive upholstery, home furnishing, 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 primarily 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 furnishing, industrial and other end-use markets primarily in the South American and Asian regions. This 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 SG&A and 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. Selected financial information for the Polyester, Nylon and International segments is presented below:


 

For the Three Months Ended September 23, 2012

 

Polyester

Nylon

International

Total

Net sales

  $ 93,036   $ 40,014   $ 39,850   $ 172,900

Cost of sales

    84,829     35,944     34,107     154,880

Gross profit

    8,207     4,070     5,743     18,020

Selling, general and administrative expenses

    6,751     2,336     2,060     11,147

Segment operating profit

  $ 1,456   $ 1,734   $ 3,683   $ 6,873

For the Three Months Ended September 25, 2011

Polyester

Nylon

International

Total

Net sales

  $ 92,528   $ 40,961   $ 37,524   $ 171,013

Cost of sales

    88,838     36,610     33,735     159,183

Gross profit

    3,690     4,351     3,789     11,830

Selling, general and administrative expenses

    6,063     2,110     2,198     10,371

Segment operating (loss) profit

  $ (2,373 )   $ 2,241   $ 1,591   $ 1,459

The reconciliations of Segment Operating Profit to Consolidated Income Before Income Taxes are as follows:


 

For the Three Months Ended

 

September 23, 2012

September 25, 2011

Polyester

  $ 1,456   $ (2,373 )

Nylon

    1,734     2,241

International

    3,683     1,591

Segment operating profit

    6,873     1,459

Provision for bad debts

    110     205

Other operating expense (income), net

    581     (41 )

Consolidated operating income

    6,182     1,295

Interest income

    (124 )     (647 )

Interest expense

    1,444     4,380

Loss on extinguishment of debt

    242     462

Equity in earnings of unconsolidated affiliates

    (671 )     (3,459 )

Consolidated income before income taxes

  $ 5,291   $ 559

The reconciliations of Segment Depreciation and Amortization Expense to Consolidated Depreciation and Amortization Expense are as follows:


 

For the Three Months Ended

 

September 23, 2012

September 25, 2011

Polyester

  $ 4,681   $ 4,799

Nylon

    758     783

International

    866     973

Segment depreciation and amortization expense

    6,305     6,555

Depreciation and amortization included in other operating expense (income), net

    46     6

Amortization included in interest expense

    166     221

Consolidated depreciation and amortization expense

  $ 6,517   $ 6,782

Segment Other Adjustments for each of the reportable segments consist of the following:


 

For the Three Months Ended

 

September 23, 2012

September 25, 2011

Polyester

  $ 94   $ —

Nylon

    —     —

International

    —     —

Segment other adjustments

  $ 94   $ —

Other adjustments include amounts recorded for certain domestic retiree and post-employment medical liabilities.


Segment Adjusted Profit for each of the reportable segments consists of the following:


 

For the Three Months Ended

 

September 23, 2012

September 25, 2011

Polyester

  $ 6,231   $ 2,426

Nylon

    2,492     3,024

International

    4,549     2,564

Segment adjusted profit

  $ 13,272   $ 8,014

Intersegment Sales for each of the reportable segments consist of the following:


 

For the Three Months Ended

 

September 23, 2012

September 25, 2011

Polyester

  $ 621   $ 453

Nylon

    122     8

International

    293     —

Intersegment sales

  $ 1,036   $ 461

The reconciliations of Segment Capital Expenditures to Consolidated Capital Expenditures are as follows:


 

For the Three Months Ended

 

September 23, 2012

September 25, 2011

Polyester

  $ 729   $ 189

Nylon

    56     71

International

    165     805

Segment capital expenditures

    950     1,065

Unallocated corporate capital expenditures

    141     57

Consolidated capital expenditures

  $ 1,091   $ 1,122

The reconciliations of Segment Total Assets to Consolidated Total Assets are as follows:


 

September 23, 2012

June 24, 2012

Polyester

  $ 191,214   $ 198,321

Nylon

    74,369     74,569

International

    90,482     88,040

Segment total assets

    356,065     360,930

All other current assets

    9,180     9,424

Unallocated corporate PP&E

    10,347     10,404

All other non-current assets

    5,533     5,712

Investments in unconsolidated affiliates

    95,185     95,763

Consolidated total assets

  $ 476,310   $ 482,233

Geographic Data:


Geographic information for net sales is as follows:


 

For the Three Months Ended

 

September 23, 2012

September 25, 2011

U.S.

  $ 122,587   $ 123,920

Brazil

    32,521     33,145

All other foreign

    17,792     13,948

Total

  $ 172,900   $ 171,013

The information for net sales is based on the operating locations from where the items were produced or distributed. Export sales from the Company's U.S. operations to external customers were $22,985 and $19,328 for the three months ended September 23, 2012 and September 25, 2011, respectively.


Geographic information for long-lived assets is as follows:


 

September 23, 2012

June 24, 2012

U.S.

  $ 210,018   $ 215,910

Brazil

    18,270     19,121

All other foreign

    8,431     7,915

Total

  $ 236,719   $ 242,946

Long-lived assets are comprised of Property, plant and equipment, net, Intangible assets, net, Investments in unconsolidated affiliates and Other non-current assets.