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Note 27 - Business Segment Information | 6 Months Ended
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Dec. 23, 2012
Segment Reporting Disclosure [Text Block] | 27. 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 and staple fiber. 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 December 23, 2012 |
|  | Polyester |  |  | Nylon |  |  | International |  |  | Total |
Net sales |  | $ | 97,322 |  |  | $ | 39,541 |  |  | $ | 35,208 |  |  | $ | 172,071 |
Cost of sales |  |  | 88,885 |  |  |  | 35,525 |  |  |  | 30,970 |  |  |  | 155,380 |
Gross profit |  |  | 8,437 |  |  |  | 4,016 |  |  |  | 4,238 |  |  |  | 16,691 |
Selling, general and administrative expenses |  |  | 7,177 |  |  |  | 2,466 |  |  |  | 1,889 |  |  |  | 11,532 |
Segment operating profit |  | $ | 1,260 |  |  | $ | 1,550 |  |  | $ | 2,349 |  |  | $ | 5,159 |
|  | For the Three Months Ended December 25, 2011 |
|  | Polyester |  |  | Nylon |  |  | International |  |  | Total |
Net sales |  | $ | 95,105 |  |  | $ | 38,816 |  |  | $ | 33,189 |  |  | $ | 167,110 |
Cost of sales |  |  | 92,844 |  |  |  | 34,289 |  |  |  | 29,095 |  |  |  | 156,228 |
Gross profit |  |  | 2,261 |  |  |  | 4,527 |  |  |  | 4,094 |  |  |  | 10,882 |
Selling, general and administrative expenses |  |  | 6,577 |  |  |  | 2,215 |  |  |  | 2,194 |  |  |  | 10,986 |
Segment operating (loss) profit |  | $ | (4,316 | ) |  | $ | 2,312 |  |  | $ | 1,900 |  |  | $ | (104 | )
The reconciliations of Segment operating profit (loss) to consolidated Income (loss) before income taxes are as follows:
|  | For the Three Months Ended |
|  | December 23, 2012 |  |  | December 25, 2011 |
Polyester |  | $ | 1,260 |  |  | $ | (4,316 | )
Nylon |  |  | 1,550 |  |  |  | 2,312 |
International |  |  | 2,349 |  |  |  | 1,900 |
Segment operating profit (loss) |  |  | 5,159 |  |  |  | (104 | )
Provision for bad debts |  |  | 73 |  |  |  | 357 |
Other operating expense, net |  |  | 580 |  |  |  | 490 |
Operating income (loss) |  |  | 4,506 |  |  |  | (951 | )
Interest income |  |  | (144 | ) |  |  | (495 | )
Interest expense |  |  | 1,361 |  |  |  | 4,222 |
Loss on extinguishment of debt |  |  | 114 |  |  |  | — |
Loss on previously held equity interest |  |  | — |  |  |  | 3,656 |
Other non-operating income |  |  | — |  |  |  | (1,479 | )
Equity in earnings of unconsolidated affiliates |  |  | (1,258 | ) |  |  | (844 | )
Income (loss) before income taxes |  | $ | 4,433 |  |  | $ | (6,011 | )
|  | For the Six Months Ended December 23, 2012 |
|  | Polyester |  |  | Nylon |  |  | International |  |  | Total |
Net sales |  | $ | 190,358 |  |  | $ | 79,554 |  |  | $ | 75,059 |  |  | $ | 344,971 |
Cost of sales |  |  | 173,714 |  |  |  | 71,468 |  |  |  | 65,078 |  |  |  | 310,260 |
Gross profit |  |  | 16,644 |  |  |  | 8,086 |  |  |  | 9,981 |  |  |  | 34,711 |
Selling, general and administrative expenses |  |  | 13,928 |  |  |  | 4,802 |  |  |  | 3,949 |  |  |  | 22,679 |
Segment operating profit |  | $ | 2,716 |  |  | $ | 3,284 |  |  | $ | 6,032 |  |  | $ | 12,032 |
|  | For the Six Months Ended December 25, 2011 |
|  | Polyester |  |  | Nylon |  |  | International |  |  | Total |
Net sales |  | $ | 187,633 |  |  | $ | 79,777 |  |  | $ | 70,713 |  |  | $ | 338,123 |
Cost of sales |  |  | 181,682 |  |  |  | 70,898 |  |  |  | 62,831 |  |  |  | 315,411 |
Gross profit |  |  | 5,951 |  |  |  | 8,879 |  |  |  | 7,882 |  |  |  | 22,712 |
Selling, general and administrative expenses |  |  | 12,641 |  |  |  | 4,325 |  |  |  | 4,391 |  |  |  | 21,357 |
Segment operating (loss) profit |  | $ | (6,690 | ) |  | $ | 4,554 |  |  | $ | 3,491 |  |  | $ | 1,355 |
The reconciliations of Segment operating profit to consolidated Income (loss) before income taxes are as follows:
|  | For the Six Months Ended |
|  | December 23, 2012 |  |  | December 25, 2011 |
Polyester |  | $ | 2,716 |  |  | $ | (6,690 | )
Nylon |  |  | 3,284 |  |  |  | 4,554 |
International |  |  | 6,032 |  |  |  | 3,491 |
Segment operating profit |  |  | 12,032 |  |  |  | 1,355 |
Provision for bad debts |  |  | 183 |  |  |  | 562 |
Other operating expense, net |  |  | 1,161 |  |  |  | 449 |
Operating income |  |  | 10,688 |  |  |  | 344 |
Interest income |  |  | (268 | ) |  |  | (1,142 | )
Interest expense |  |  | 2,805 |  |  |  | 8,602 |
Loss on extinguishment of debt |  |  | 356 |  |  |  | 462 |
Loss on previously held equity interest |  |  | — |  |  |  | 3,656 |
Other non-operating income |  |  | — |  |  |  | (1,479 | )
Equity in earnings of unconsolidated affiliates |  |  | (1,929 | ) |  |  | (4,303 | )
Income (loss) before income taxes |  | $ | 9,724 |  |  | $ | (5,452 | )
The reconciliations of Segment depreciation and amortization expense to consolidated Depreciation and amortization expense are as follows:
|  | For the Three Months Ended |  |  | For the Six Months Ended |
|  | December 23, 2012 |  |  | December 25, 2011 |  |  | December 23, 2012 |  |  | December 25, 2011 |
Polyester |  | $ | 4,697 |  |  | $ | 4,735 |  |  | $ | 9,378 |  |  | $ | 9,534 |
Nylon |  |  | 755 |  |  |  | 770 |  |  |  | 1,513 |  |  |  | 1,553 |
International |  |  | 820 |  |  |  | 926 |  |  |  | 1,686 |  |  |  | 1,899 |
Segment depreciation and amortization expense |  |  | 6,272 |  |  |  | 6,431 |  |  |  | 12,577 |  |  |  | 12,986 |
Depreciation and amortization included in other operating expense, net |  |  | 45 |  |  |  | 31 |  |  |  | 91 |  |  |  | 37 |
Amortization included in interest expense |  |  | 163 |  |  |  | 224 |  |  |  | 329 |  |  |  | 445 |
Depreciation and amortization expense |  | $ | 6,480 |  |  | $ | 6,686 |  |  | $ | 12,997 |  |  | $ | 13,468 |
Segment other adjustments for each of the reportable segments consist of the following:
|  | For the Three Months Ended |  |  | For the Six Months Ended |
|  | December 23, 2012 |  |  | December 25, 2011 |  |  | December 23, 2012 |  |  | December 25, 2011 |
Polyester |  | $ | — |  |  | $ | — |  |  | $ | 94 |  |  | $ | — |
Nylon |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
International |  |  | 56 |  |  |  | 104 |  |  |  | 56 |  |  |  | 104 |
Segment other adjustments |  | $ | 56 |  |  | $ | 104 |  |  | $ | 150 |  |  | $ | 104 |
Other adjustments include amounts recorded for employee severance expenses and 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 |  |  | For the Six Months Ended |
|  | December 23, 2012 |  |  | December 25, 2011 |  |  | December 23, 2012 |  |  | December 25, 2011 |
Polyester |  | $ | 5,957 |  |  | $ | 419 |  |  | $ | 12,188 |  |  | $ | 2,844 |
Nylon |  |  | 2,305 |  |  |  | 3,082 |  |  |  | 4,797 |  |  |  | 6,107 |
International |  |  | 3,225 |  |  |  | 2,930 |  |  |  | 7,774 |  |  |  | 5,494 |
Segment Adjusted Profit |  | $ | 11,487 |  |  | $ | 6,431 |  |  | $ | 24,759 |  |  | $ | 14,445 |
Intersegment Sales for each of the reportable segments consist of the following:
|  | For the Three Months Ended |  |  | For the Six Months Ended |
|  | December 23, 2012 |  |  | December 25, 2011 |  |  | December 23, 2012 |  |  | December 25, 2011 |
Polyester |  | $ | 348 |  |  | $ | 438 |  |  | $ | 969 |  |  | $ | 890 |
Nylon |  |  | 52 |  |  |  | 219 |  |  |  | 174 |  |  |  | 227 |
International |  |  | 106 |  |  |  | 560 |  |  |  | 399 |  |  |  | 561 |
Intersegment sales |  | $ | 506 |  |  | $ | 1,217 |  |  | $ | 1,542 |  |  | $ | 1,678 |
The reconciliations of Segment capital expenditures to consolidated Capital expenditures are as follows:
|  | For the Three Months Ended |  |  | For the Six Months Ended |
|  | December 23, 2012 |  |  | December 25, 2011 |  |  | December 23, 2012 |  |  | December 25, 2011 |
Polyester |  | $ | 1,189 |  |  | $ | 1,488 |  |  | $ | 1,918 |  |  | $ | 1,677 |
Nylon |  |  | 114 |  |  |  | 119 |  |  |  | 170 |  |  |  | 190 |
International |  |  | 124 |  |  |  | 202 |  |  |  | 289 |  |  |  | 1,007 |
Segment capital expenditures |  |  | 1,427 |  |  |  | 1,809 |  |  |  | 2,377 |  |  |  | 2,874 |
Unallocated corporate capital expenditures |  |  | 354 |  |  |  | 328 |  |  |  | 495 |  |  |  | 385 |
Capital expenditures |  | $ | 1,781 |  |  | $ | 2,137 |  |  | $ | 2,872 |  |  | $ | 3,259 |
The reconciliations of Segment total assets to consolidated Total assets are as follows:
|  | December 23, 2012 |  |  | June 24, 2012 |
Polyester |  | $ | 181,576 |  |  | $ | 198,321 |
Nylon |  |  | 71,241 |  |  |  | 74,569 |
International |  |  | 85,556 |  |  |  | 88,040 |
Segment total assets |  |  | 338,373 |  |  |  | 360,930 |
All other current assets |  |  | 9,302 |  |  |  | 9,424 |
Unallocated corporate PP&E |  |  | 11,734 |  |  |  | 10,404 |
All other non-current assets |  |  | 5,329 |  |  |  | 5,712 |
Investments in unconsolidated affiliates |  |  | 96,212 |  |  |  | 95,763 |
Total assets |  | $ | 460,950 |  |  | $ | 482,233 |
Geographic Data: Geographic information for net sales is as follows:
|  | For the Three Months Ended |  |  | For the Six Months Ended |
|  | December 23, 2012 |  |  | December 25, 2011 |  |  | December 23, 2012 |  |  | December 25, 2011 |
U.S. |  | $ | 126,202 |  |  | $ | 123,049 |  |  | $ | 248,789 |  |  | $ | 246,969 |
Brazil |  |  | 28,406 |  |  |  | 27,320 |  |  |  | 60,927 |  |  |  | 60,465 |
All other foreign |  |  | 17,463 |  |  |  | 16,741 |  |  |  | 35,255 |  |  |  | 30,689 |
Total |  | $ | 172,071 |  |  | $ | 167,110 |  |  | $ | 344,971 |  |  | $ | 338,123 |
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 $22,578 and $20,234 for the three months ended December 23, 2012 and December 25, 2011, respectively. Export sales from the Company’s U.S. operations to external customers were $45,563 and $39,562 for the six months ended December 23, 2012 and December 25, 2011, respectively. Geographic information for long-lived assets is as follows:
|  | December 23, 2012 |  |  | June 24, 2012 |
U.S. |  | $ | 208,031 |  |  | $ | 215,910 |
Brazil |  |  | 17,386 |  |  |  | 19,121 |
All other foreign |  |  | 9,516 |  |  |  | 7,915 |
Total |  | $ | 234,933 |  |  | $ | 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.

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