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Note 23 - Business Segment Information
 3 Months Ended
Sep. 29, 2013
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

23. Business Segment Information


The Company has three operating segments, which are also its reportable segments. These segments derive revenues as follows:


 

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The Polyester Segment manufactures Chip, POY, textured, dyed, twisted and beamed 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 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 sales and 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 furnishings, industrial and other end-use markets primarily in the South American and Asian regions. This segment includes manufacturing locations 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 expenses and plus 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 29, 2013

 
   

Polyester

   

Nylon

   

International

   

Total

 

Net sales

  $ 93,562     $ 39,715     $ 35,392     $ 168,669  

Cost of sales

    83,202       35,021       30,461       148,684  

Gross profit

    10,360       4,694       4,931       19,985  

Selling, general and administrative expenses

    6,035       2,050       2,029       10,114  

Restructuring charges

    230       —       —       230  

Segment operating profit

  $ 4,095     $ 2,644     $ 2,902     $ 9,641  

   

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  

The reconciliations of Segment operating profit to consolidated Income before income taxes are as follows:


   

For the Three Months Ended

 
   

September 29, 2013

   

September 23, 2012

 

Polyester

  $ 4,095     $ 1,456  

Nylon

    2,644       1,734  

International

    2,902       3,683  

Segment operating profit

    9,641       6,873  

(Benefit) provision for bad debts

    (38 )     110  

Other operating expense, net

    1,394       581  

Operating income

    8,285       6,182  

Interest income

    (1,214 )     (124 )

Interest expense

    1,252       1,444  

Loss on extinguishment of debt

    —       242  

Equity in earnings of unconsolidated affiliates

    (6,123 )     (671 )

Income before income taxes

  $ 14,370     $ 5,291  

The reconciliations of Segment depreciation and amortization expense to consolidated Depreciation and amortization expense are as follows:


   

For the Three Months Ended

 
   

September 29, 2013

   

September 23, 2012

 

Polyester

  $ 2,749     $ 4,681  

Nylon

    744       758  

International

    728       866  

Segment depreciation and amortization expense

    4,221       6,305  

Depreciation and amortization included in other operating expense, net

    80       46  

Amortization included in interest expense

    107       166  

Depreciation and amortization expense

  $ 4,408     $ 6,517  

Segment other adjustments for each of the reportable segments consist of the following:


   

For the Three Months Ended

 
   

September 29, 2013

   

September 23, 2012

 

Polyester

  $ 2     $ 94  

Nylon

    (157 )     —  

International

    60       —  

Segment other adjustments

  $ (95 )   $ 94  

Segment other adjustments may include items such as severance charges, restructuring charges and recoveries, start-up cost, and other adjustments necessary to understand and compare the underlying results of the segment.


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


   

For the Three Months Ended

 
   

September 29, 2013

   

September 23, 2012

 

Polyester

  $ 7,076     $ 6,231  

Nylon

    3,231       2,492  

International

    3,690       4,549  

Segment Adjusted Profit

  $ 13,997     $ 13,272  

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


   

For the Three Months Ended

 
   

September 29, 2013

   

September 23, 2012

 

Polyester

  $ 5     $ 621  

Nylon

    73       122  

International

    99       293  

Intersegment sales

  $ 177     $ 1,036  

The reconciliations of Segment capital expenditures to consolidated Capital expenditures are as follows:


   

For the Three Months Ended

 
   

September 29, 2013

   

September 23, 2012

 

Polyester

  $ 4,392     $ 729  

Nylon

    571       56  

International

    656       165  

Segment capital expenditures

    5,619       950  

Unallocated corporate capital expenditures

    72       141  

Capital expenditures

  $ 5,691     $ 1,091  

The reconciliations of Segment total assets to consolidated Total assets are as follows:


   

September 29, 2013

   

June 30, 2013

 

Polyester

  $ 182,823     $ 185,190  

Nylon

    71,241       72,599  

International

    83,406       84,151  

Segment total assets

    337,470       341,940  

All other current assets

    2,324       3,342  

Unallocated corporate PP&E

    11,779       11,983  

All other non-current assets

    4,802       4,940  

Investments in unconsolidated affiliates

    96,888       93,261  

Total assets

  $ 453,263     $ 455,466  

Geographic Data:


Geographic information for Net sales is as follows:


   

For the Three Months Ended

 
   

September 29, 2013

   

September 23, 2012

 

U.S.

  $ 123,727     $ 122,587  

Brazil

    30,313       32,521  

All Other Foreign

    14,629       17,792  

Total

  $ 168,669     $ 172,900  

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 $23,256 and $22,985 for the three months ended September 29, 2013 and September 23, 2012, respectively.


Geographic information for long-lived assets is as follows:


   

September 29, 2013

   

June 30, 2013

 

U.S.

  $ 202,220     $ 200,958  

Brazil

    13,422       16,150  

All Other Foreign

    8,791       8,658  

Total

  $ 224,433     $ 225,766  

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


Geographic information for total assets is as follows:


   

September 29, 2013

   

June 30, 2013

 

U.S.

  $ 346,439     $ 346,651  

Brazil

    72,454       72,735  

All Other Foreign

    34,370       36,080  

Total

  $ 453,263     $ 455,466