Note 24 - Business Segment Information | 6 Months Ended |
Dec. 29, 2013 |
Segment Reporting [Abstract] | ' |
Segment Reporting Disclosure [Text Block] | ' |
24. Business Segment Information |
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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, 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. | | | | | | | | | | | | | | |
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| ● | 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. | | | | | | | | | | | | | | |
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| ● | 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. | | | | | | | | | | | | | | |
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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 selling, general and administrative (“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. |
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Selected financial information for the Polyester, Nylon and International Segments is presented below: |
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| | For the Three Months Ended December 29, 2013 | |
| | Polyester | | | Nylon | | | International | | | Total | |
Net sales | | $ | 89,430 | | | $ | 39,800 | | | $ | 31,387 | | | $ | 160,617 | |
Cost of sales | | | 79,633 | | | | 35,041 | | | | 27,446 | | | | 142,120 | |
Gross profit | | | 9,797 | | | | 4,759 | | | | 3,941 | | | | 18,497 | |
Selling, general and administrative expenses | | | 7,068 | | | | 2,384 | | | | 2,039 | | | | 11,491 | |
Restructuring charges | | | 119 | | | | — | | | | — | | | | 119 | |
Segment operating profit | | $ | 2,610 | | | $ | 2,375 | | | $ | 1,902 | | | $ | 6,887 | |
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| | 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 | |
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The reconciliations of segment operating profit to consolidated income before income taxes are as follows: |
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| | For the Three Months Ended | | | | | | | | | |
| | 29-Dec-13 | | | 23-Dec-12 | | | | | | | | | |
Polyester | | $ | 2,610 | | | $ | 1,260 | | | | | | | | | |
Nylon | | | 2,375 | | | | 1,550 | | | | | | | | | |
International | | | 1,902 | | | | 2,349 | | | | | | | | | |
Segment operating profit | | | 6,887 | | | | 5,159 | | | | | | | | | |
Provision for bad debts | | | 87 | | | | 73 | | | | | | | | | |
Other operating expense, net | | | 1,026 | | | | 580 | | | | | | | | | |
Operating income | | | 5,774 | | | | 4,506 | | | | | | | | | |
Interest income | | | (142 | ) | | | (144 | ) | | | | | | | | |
Interest expense | | | 903 | | | | 1,361 | | | | | | | | | |
Loss on extinguishment of debt | | | — | | | | 114 | | | | | | | | | |
Equity in earnings of unconsolidated affiliates | | | (5,122 | ) | | | (1,258 | ) | | | | | | | | |
Income before income taxes | | $ | 10,135 | | | $ | 4,433 | | | | | | | | | |
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Selected financial information for the Polyester, Nylon and International Segments is presented below: |
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| | For the Six Months Ended December 29, 2013 | |
| | Polyester | | | Nylon | | | International | | | Total | |
Net sales | | $ | 182,992 | | | $ | 79,515 | | | $ | 66,779 | | | $ | 329,286 | |
Cost of sales | | | 162,835 | | | | 70,062 | | | | 57,907 | | | | 290,804 | |
Gross profit | | | 20,157 | | | | 9,453 | | | | 8,872 | | | | 38,482 | |
Selling, general and administrative expenses | | | 13,103 | | | | 4,434 | | | | 4,068 | | | | 21,605 | |
Restructuring charges | | | 349 | | | | — | | | | — | | | | 349 | |
Segment operating profit | | $ | 6,705 | | | $ | 5,019 | | | $ | 4,804 | | | $ | 16,528 | |
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| | 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 | |
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The reconciliations of segment operating profit to consolidated income before income taxes are as follows: |
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| | For the Six Months Ended | | | | | | | | | |
| | 29-Dec-13 | | | 23-Dec-12 | | | | | | | | | |
Polyester | | $ | 6,705 | | | $ | 2,716 | | | | | | | | | |
Nylon | | | 5,019 | | | | 3,284 | | | | | | | | | |
International | | | 4,804 | | | | 6,032 | | | | | | | | | |
Segment operating profit | | | 16,528 | | | | 12,032 | | | | | | | | | |
Provision for bad debts | | | 49 | | | | 183 | | | | | | | | | |
Other operating expense, net | | | 2,420 | | | | 1,161 | | | | | | | | | |
Operating income | | | 14,059 | | | | 10,688 | | | | | | | | | |
Interest income | | | (1,356 | ) | | | (268 | ) | | | | | | | | |
Interest expense | | | 2,155 | | | | 2,805 | | | | | | | | | |
Loss on extinguishment of debt | | | — | | | | 356 | | | | | | | | | |
Equity in earnings of unconsolidated affiliates | | | (11,245 | ) | | | (1,929 | ) | | | | | | | | |
Income before income taxes | | $ | 24,505 | | | $ | 9,724 | | | | | | | | | |
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The reconciliations of segment depreciation and amortization expense to consolidated depreciation and amortization expense are as follows: |
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| | For the Three Months Ended | | | For the Six Months Ended | |
| | 29-Dec-13 | | | 23-Dec-12 | | | 29-Dec-13 | | | 23-Dec-12 | |
Polyester | | $ | 2,822 | | | $ | 4,697 | | | $ | 5,571 | | | $ | 9,378 | |
Nylon | | | 521 | | | | 755 | | | | 1,265 | | | | 1,513 | |
International | | | 689 | | | | 820 | | | | 1,417 | | | | 1,686 | |
Segment depreciation and amortization expense | | | 4,032 | | | | 6,272 | | | | 8,253 | | | | 12,577 | |
Depreciation and amortization included in other operating expense, net | | | 80 | | | | 45 | | | | 160 | | | | 91 | |
Amortization included in interest expense | | | 105 | | | | 163 | | | | 212 | | | | 329 | |
Depreciation and amortization expense | | $ | 4,217 | | | $ | 6,480 | | | $ | 8,625 | | | $ | 12,997 | |
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Segment other adjustments for each of the reportable segments consist of the following: |
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| | For the Three Months Ended | | | For the Six Months Ended | |
| | 29-Dec-13 | | | 23-Dec-12 | | | 29-Dec-13 | | | 23-Dec-12 | |
Polyester | | $ | 191 | | | $ | — | | | $ | 193 | | | $ | 94 | |
Nylon | | | — | | | | — | | | | (157 | ) | | | — | |
International | | | 194 | | | | 56 | | | | 254 | | | | 56 | |
Segment other adjustments | | $ | 385 | | | $ | 56 | | | $ | 290 | | | $ | 150 | |
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Segment other adjustments may include items such as severance charges, restructuring charges and recoveries, start-up costs, and other adjustments necessary to understand and compare the underlying results of the segment. |
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Segment Adjusted Profit for each of the reportable segments consists of the following: |
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| | For the Three Months Ended | | | For the Six Months Ended | |
| | 29-Dec-13 | | | 23-Dec-12 | | | 29-Dec-13 | | | 23-Dec-12 | |
Polyester | | $ | 5,742 | | | $ | 5,957 | | | $ | 12,818 | | | $ | 12,188 | |
Nylon | | | 2,896 | | | | 2,305 | | | | 6,127 | | | | 4,797 | |
International | | | 2,785 | | | | 3,225 | | | | 6,475 | | | | 7,774 | |
Segment Adjusted Profit | | $ | 11,423 | | | $ | 11,487 | | | $ | 25,420 | | | $ | 24,759 | |
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Intersegment sales for each of the reportable segments consist of the following: |
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| | For the Three Months Ended | | | For the Six Months Ended | |
| | 29-Dec-13 | | | 23-Dec-12 | | | 29-Dec-13 | | | 23-Dec-12 | |
Polyester | | $ | 87 | | | $ | 348 | | | $ | 92 | | | $ | 969 | |
Nylon | | | 63 | | | | 52 | | | | 136 | | | | 174 | |
International | | | 415 | | | | 106 | | | | 514 | | | | 399 | |
Intersegment sales | | $ | 565 | | | $ | 506 | | | $ | 742 | | | $ | 1,542 | |
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The reconciliations of segment capital expenditures to consolidated capital expenditures are as follows: |
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| | For the Three Months Ended | | | For the Six Months Ended | |
| | 29-Dec-13 | | | 23-Dec-12 | | | 29-Dec-13 | | | 23-Dec-12 | |
Polyester | | $ | 2,641 | | | $ | 1,189 | | | $ | 7,033 | | | $ | 1,918 | |
Nylon | | | 856 | | | | 114 | | | | 1,427 | | | | 170 | |
International | | | 227 | | | | 124 | | | | 883 | | | | 289 | |
Segment capital expenditures | | | 3,724 | | | | 1,427 | | | | 9,343 | | | | 2,377 | |
Unallocated corporate capital expenditures | | | 16 | | | | 354 | | | | 88 | | | | 495 | |
Capital expenditures | | $ | 3,740 | | | $ | 1,781 | | | $ | 9,431 | | | $ | 2,872 | |
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The reconciliations of segment total assets to consolidated total assets are as follows: |
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| | 29-Dec-13 | | | 30-Jun-13 | | | | | | | | | |
Polyester | | $ | 177,472 | | | $ | 185,190 | | | | | | | | | |
Nylon | | | 68,465 | | | | 72,599 | | | | | | | | | |
International | | | 77,657 | | | | 84,151 | | | | | | | | | |
Segment total assets | | | 323,594 | | | | 341,940 | | | | | | | | | |
All other current assets | | | 4,796 | | | | 3,342 | | | | | | | | | |
Unallocated corporate PP&E | | | 11,542 | | | | 11,983 | | | | | | | | | |
All other non-current assets | | | 4,678 | | | | 4,940 | | | | | | | | | |
Investments in unconsolidated affiliates | | | 101,562 | | | | 93,261 | | | | | | | | | |
Total assets | | $ | 446,172 | | | $ | 455,466 | | | | | | | | | |
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Geographic Data: |
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Geographic information for net sales is as follows: |
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| | For the Three Months Ended | | | For the Six Months Ended | |
| | 29-Dec-13 | | | 23-Dec-12 | | | 29-Dec-13 | | | 23-Dec-12 | |
U.S. | | $ | 121,236 | | | $ | 126,202 | | | $ | 244,963 | | | $ | 248,789 | |
Brazil | | | 26,152 | | | | 28,406 | | | | 56,464 | | | | 60,927 | |
All Other Foreign | | | 13,229 | | | | 17,463 | | | | 27,859 | | | | 35,255 | |
Total | | $ | 160,617 | | | $ | 172,071 | | | $ | 329,286 | | | $ | 344,971 | |
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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 $26,699 and $22,578 for the three months ended December 29, 2013 and December 23, 2012, respectively. Export sales from the Company’s U.S. operations to external customers were $49,955 and $45,563 for the six months ended December 29, 2013 and December 23, 2012, respectively. |
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Geographic information for long-lived assets is as follows: |
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| | 29-Dec-13 | | | 30-Jun-13 | | | | | | | | | |
U.S. | | $ | 210,413 | | | $ | 200,958 | | | | | | | | | |
Brazil | | | 12,277 | | | | 16,150 | | | | | | | | | |
All Other Foreign | | | 8,493 | | | | 8,658 | | | | | | | | | |
Total | | $ | 231,183 | | | $ | 225,766 | | | | | | | | | |
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Long-lived assets are comprised of property, plant and equipment, net, intangible assets, net, investments in unconsolidated affiliates and other non-current assets, excluding other investments. |
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Geographic information for total assets is as follows: |
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| | 29-Dec-13 | | | 30-Jun-13 | | | | | | | | | |
U.S. | | $ | 346,974 | | | $ | 346,651 | | | | | | | | | |
Brazil | | | 66,545 | | | | 72,735 | | | | | | | | | |
All Other Foreign | | | 32,653 | | | | 36,080 | | | | | | | | | |
Total | | $ | 446,172 | | | $ | 455,466 | | | | | | | | | |
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