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Note 26 - Business Segment Information
 12 Months Ended
Jun. 29, 2014
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

26. Business Segment Information


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


 

●

The Polyester Segment manufactures Chip, POY, textured, 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 U.S. and El Salvador.


 

●

The Nylon Segment manufactures textured nylon and covered spandex 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 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 a manufacturing location 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.


For the Polyester Segment, fiscal year 2013 contained one additional fiscal week. For the Nylon Segment's operations in the United States, fiscal year 2013 contained one additional fiscal week.


Selected financial information for the Polyester, Nylon and International Segments is presented below:


   

For the Fiscal Year Ended June 29, 2014

 
   

Polyester

   

Nylon

    International    

Total

 

Net sales

  $ 389,172     $ 163,824     $ 134,906     $ 687,902  

Cost of sales

    342,393       143,649       118,598       604,640  

Gross profit

    46,779       20,175       16,308       83,262  

Selling, general and administrative expenses

    28,422       9,531       8,250       46,203  

Restructuring charges (recoveries)

    356       (24 )     —       332  

Other operating expense, net

    82       —       —       82  

Segment operating profit

  $ 17,919     $ 10,668     $ 8,058     $ 36,645  

   

For the Fiscal Year Ended June 30, 2013

 
   

Polyester

   

Nylon

    International    

Total

 

Net sales

  $ 398,707     $ 164,085     $ 151,170     $ 713,962  

Cost of sales

    363,545       146,033       131,280       640,858  

Gross profit

    35,162       18,052       19,890       73,104  

Selling, general and administrative expenses

    29,114       9,930       8,342       47,386  

Restructuring recoveries

    —       (135 )     —       (135 )

Other operating expense, net

    —       42       —       42  

Segment operating profit

  $ 6,048     $ 8,215     $ 11,548     $ 25,811  

   

For the Fiscal Year Ended June 24, 2012

 
   

Polyester

   

Nylon

    International    

Total

 

Net sales

  $ 393,981     $ 163,103     $ 148,002     $ 705,086  

Cost of sales

    374,308       146,147       130,235       650,690  

Gross profit

    19,673       16,956       17,767       54,396  

Selling, general and administrative expenses

    25,668       8,851       8,963       43,482  

Restructuring charges

    —       71       —       71  

Segment operating (loss) profit

  $ (5,995 )   $ 8,034     $ 8,804     $ 10,843  

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


   

For the Fiscal Years Ended

 
   

June 29, 2014

   

June 30, 2013

   

June 24, 2012

 

Polyester

  $ 17,919     $ 6,048     $ (5,995 )

Nylon

    10,668       8,215       8,034  

International

    8,058       11,548       8,804  

Segment operating profit

    36,645       25,811       10,843  

Provision (benefit) for bad debts

    287       (154 )     211  

Other operating expense, net

    4,875       3,502       2,000  

Operating income

    31,483       22,463       8,632  

Interest income

    (1,790 )     (698 )     (1,921 )

Interest expense

    4,329       4,489       16,073  

Loss on extinguishment of debt

    —       1,102       3,203  

Loss on previously held equity interest

    —       —       3,656  

Other non-operating expense (income)

    126       —       (1,488 )

Equity in earnings of unconsolidated affiliates

    (19,063 )     (11,444 )     (19,740 )

Income before income taxes

  $ 47,881     $ 29,014     $ 8,849  

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


   

For the Fiscal Years Ended

 
   

June 29, 2014

   

June 30, 2013

   

June 24, 2012

 

Polyester

  $ 11,702     $ 17,234     $ 19,046  

Nylon

    2,276       3,070       3,089  

International

    3,151       3,418       4,011  

Segment depreciation and amortization expense

    17,129       23,722       26,146  

Depreciation and amortization included in other operating expense, net

    343       230       119  

Amortization included in interest expense

    424       632       870  

Depreciation and amortization expense

  $ 17,896     $ 24,584     $ 27,135  

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


   

For the Fiscal Years Ended

 
   

June 29, 2014

   

June 30, 2013

   

June 24, 2012

 

Polyester

  $ 637     $ 618     $ (138 )

Nylon

    (119 )     245       33  

International

    352       115       382  

Segment other adjustments

  $ 870     $ 978     $ 277  

Segment other adjustments include severance charges, restructuring charges and recoveries 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 Fiscal Years Ended

 
   

June 29, 2014

   

June 30, 2013

   

June 24, 2012

 

Polyester

  $ 30,696     $ 23,900     $ 12,913  

Nylon

    12,801       11,437       11,227  

International

    11,561       15,081       13,197  

Segment Adjusted Profit

  $ 55,058     $ 50,418     $ 37,337  

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


   

For the Fiscal Years Ended

 
   

June 29, 2014

   

June 30, 2013

   

June 24, 2012

 

Polyester

  $ 651     $ 1,296     $ 2,179  

Nylon

    295       773       314  

International

    1,474       772       1,351  

Intersegment sales

  $ 2,420     $ 2,841     $ 3,844  

The reconciliations of segment capital expenditures to consolidated capital expenditures are as follows:


   

For the Fiscal Years Ended

 
   

June 29, 2014

   

June 30, 2013

   

June 24, 2012

 

Polyester

  $ 14,701     $ 5,730     $ 3,246  

Nylon

    2,284       482       487  

International

    1,637       1,336       1,610  

Segment capital expenditures

    18,622       7,548       5,343  

Unallocated corporate capital expenditures

    469       1,261       1,011  

Capital expenditures

  $ 19,091     $ 8,809     $ 6,354  

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


   

June 29, 2014

   

June 30, 2013

   

June 24, 2012

 

Polyester

  $ 192,697     $ 185,190     $ 198,321  

Nylon

    75,397       72,599       74,569  

International

    81,604       84,151       88,040  

Segment total assets

    349,698       341,940       360,930  

All other current assets

    2,549       3,342       9,424  

Unallocated corporate PP&E

    12,250       11,983       10,404  

All other non-current assets

    5,341       4,940       5,712  

Investments in unconsolidated affiliates

    99,229       93,261       95,763  

Total assets

  $ 469,067     $ 455,466     $ 482,233  

Geographic Data:


Geographic information for net sales is as follows:


   

For the Fiscal Years Ended

 
   

June 29, 2014

   

June 30, 2013

   

June 24, 2012

 

U.S.

  $ 512,496     $ 519,148     $ 515,522  

Brazil

    113,448       124,455       125,737  

All Other Foreign

    61,958       70,359       63,827  

Total

  $ 687,902     $ 713,962     $ 705,086  

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 $100,546, $93,128 and $84,558 for the fiscal years ended June 29, 2014, June 30, 2013 and June 24, 2012, respectively.


Geographic information for long-lived assets is as follows:


   

June 29, 2014

   

June 30, 2013

   

June 24, 2012

 

U.S.

  $ 215,910     $ 200,958     $ 215,890  

Brazil

    12,188       16,150       19,121  

All Other Foreign

    7,413       8,658       7,935  

Total

  $ 235,511     $ 225,766     $ 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.


Geographic information for total assets is as follows:


   

June 29, 2014

   

June 30, 2013

   

June 24, 2012

 

U.S.

  $ 362,510     $ 346,651     $ 370,572  

Brazil

    70,581       72,735       77,788  

All Other Foreign

    35,976       36,080       33,873  

Total

  $ 469,067     $ 455,466     $ 482,233