Segment Reporting Disclosure [Text Block] | 23 . Business Segment Information The Company has three reportable segments. Operations and revenues for each segment are described below: ● 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 yarns (both nylon and polyester) and spandex covered 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. In addition to its reportable segments, the Company’s selected financial information includes an All Other category. All Other consists primarily of Renewables (an operating segment that does not meet quantitative thresholds for reporting), for-hire transportation services and consulting services. Revenue for Renewables is primarily derived from (i) facilitating the use of miscanthus grass as bio-fuel through service agreements and (ii) delivering harvested miscanthus grass to poultry producers for animal bedding. For-hire transportation services revenues are derived from performing common carrier services utilizing the Company’s fleet of transportation equipment. Revenues for consulting services are derived from providing process improvement and change management consulting services to entities across various industries. The operations within All Other (i) are not subject to review by the chief operating decision maker at a level consistent with the Company’s other operations, (ii) are not regularly evaluated using the same metrics applied to the Company’s other operations and (iii) do not qualify for aggregation with an existing reportable segment. Therefore, such operations are excluded from reportable segments. The Company evaluates the operating performance of its segments based upon Segment Profit, which represents segment gross profit plus segment depreciation expense. This measurement of segment profit or loss best aligns segment reporting with the current assessments and evaluations performed by, and information provided to, the chief operating decision maker. In fiscal year 2015, the Company evaluated the operating performance of its segments based upon a different metric, referred to as Segment Adjusted Profit, which was defined as segment gross profit, plus segment depreciation and amortization, less segment SG&A expenses, plus segment other adjustments. SG&A expenses and other adjustments are no longer significant to the segment evaluations performed by the chief operating decision maker. The Company is providing current and comparative selected financial information below under the current method of evaluating segment profitability. The accounting policies for the segments are consistent with the Company’s accounting policies. Intersegment sales are omitted from the below financial information, as they are (i) insignificant to the Company’s segments and consolidated operations and (ii) excluded from segment evaluations performed by the chief operating decision maker. Selected financial information is presented below. As described in note 2, certain amounts previously reported, which comprise operating income for the three months ended September 28, 2014, have been revised to reflect reclassification into the All Other category. For the Three Months Ended September 27, 2015 Polyester Nylon International All Other Total Net sales $ 90,568 $ 40,676 $ 29,371 $ 1,550 $ 162,165 Cost of sales 81,279 34,494 23,780 1,628 141,181 Gross profit (loss) 9,289 6,182 5,591 (78 ) 20,984 Segment depreciation expense 2,811 518 221 152 3,702 Segment Profit $ 12,100 $ 6,700 $ 5,812 $ 74 $ 24,686 For the Three Months Ended September 28, 2014 Polyester Nylon International All Other Total Net sales $ 92,978 $ 44,710 $ 36,494 $ 1,379 $ 175,561 Cost of sales 82,702 39,561 31,181 1,667 155,111 Gross profit (loss) 10,276 5,149 5,313 (288 ) 20,450 Segment depreciation expense 2,414 462 727 110 3,713 Segment Profit (Loss) $ 12,690 $ 5,611 $ 6,040 $ (178 ) $ 24,163 The reconciliations of segment depreciation expense to consolidated depreciation expense are as follows: For the Three Months Ended September 27, 2015 September 28, 2014 Polyester $ 2,811 $ 2,414 Nylon 518 462 International 221 727 All Other category 152 110 Segment depreciation expense 3,702 3,713 Other depreciation expense 149 149 Consolidated depreciation expense $ 3,851 $ 3,862 The reconciliations of segment gross profit (loss) to consolidated income before income taxes are as follows: For the Three Months Ended September 27, 2015 September 28, 2014 Polyester $ 9,289 $ 10,276 Nylon 6,182 5,149 International 5,591 5,313 All Other category (78 ) (288 ) Segment gross profit 20,984 20,450 SG&A expenses 10,830 11,649 Provision for bad debts 613 584 Other operating (income) expense, net (146 ) 600 Operating income 9,687 7,617 Interest income (163 ) (317 ) Interest expense 984 819 Equity in earnings of unconsolidated affiliates (2,860 ) (3,721 ) Income before income taxes $ 11,726 $ 10,836 The reconciliations of segment capital expenditures to consolidated capital expenditures are as follows: For the Three Months Ended September 27, 2015 September 28, 2014 Polyester $ 13,973 $ 6,602 Nylon 563 194 International 512 506 All Other category 513 — Segment capital expenditures 15,561 7,302 Other capital expenditures 314 81 Capital expenditures $ 15,875 $ 7,383 The reconciliations of segment total assets to consolidated total assets are as follows: September 27, 2015 June 28, 2015 Polyester $ 219,680 $ 203,574 Nylon 75,138 71,332 International 53,238 63,031 Segment total assets 348,056 337,937 Other current assets 3,920 5,844 Other PP&E 16,164 13,544 Other non-current assets 4,709 5,146 Investments in unconsolidated affiliates 114,448 113,901 Total assets $ 487,297 $ 476,372 Geographic Data: Geographic information for net sales based on the operating locations from where the items were produced or distributed, is as follows: For the Three Months Ended September 27, 2015 September 28, 2014 U.S. $ 120,324 $ 128,382 Brazil 19,904 30,007 Remaining Foreign 21,937 17,172 Total $ 162,165 $ 175,561 Export sales from the Company’s U.S. operations to external customers $ 28,874 $ 27,173 Geographic information for long-lived assets is as follows: September 27, 2015 June 28, 2015 U.S. $ 257,235 $ 242,042 Brazil 6,420 8,207 Remaining Foreign 9,085 9,237 Total $ 272,740 $ 259,486 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 27, 2015 June 28, 2015 U.S. $ 409,297 $ 388,766 Brazil 40,444 50,300 Remaining Foreign 37,556 37,306 Total $ 487,297 $ 476,372 |