Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Dec. 27, 2015 | Jan. 25, 2016 | |
Entity Registrant Name | UNIFI INC | |
Entity Central Index Key | 100,726 | |
Trading Symbol | ufi | |
Current Fiscal Year End Date | --06-26 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 17,839,916 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 27, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 19,417 | $ 10,013 |
Receivables, net | 78,149 | 83,863 |
Inventories | 108,975 | 111,615 |
Income taxes receivable | 4,190 | 1,451 |
Other current assets | 3,572 | 6,022 |
Total current assets | 214,303 | 212,964 |
Property, plant and equipment, net | 159,210 | 136,222 |
Deferred income taxes | 1,467 | 3,922 |
Intangible assets, net | 4,554 | 5,388 |
Investments in unconsolidated affiliates | 113,710 | 113,901 |
Other non-current assets | 4,497 | 3,975 |
Total assets | 497,741 | 476,372 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Accounts payable | 36,455 | 45,023 |
Accrued expenses | 11,254 | 16,640 |
Income taxes payable | 655 | 676 |
Current portion of long-term debt | 15,050 | 12,385 |
Total current liabilities | 63,414 | 74,724 |
Long-term debt | 121,837 | 91,725 |
Other long-term liabilities | 10,867 | 10,740 |
Deferred income taxes | 3,241 | 90 |
Total liabilities | $ 199,359 | $ 177,279 |
Commitments and contingencies | ||
Common stock, $0.10 par value (500,000,000 shares authorized, 17,822,065 and 18,007,749 shares outstanding) | $ 1,782 | $ 1,801 |
Capital in excess of par value | 45,371 | 44,261 |
Retained earnings | 287,139 | 278,331 |
Accumulated other comprehensive loss | (37,880) | (26,899) |
Total Unifi, Inc. shareholders’ equity | 296,412 | 297,494 |
Non-controlling interest | 1,970 | 1,599 |
Total shareholders’ equity | 298,382 | 299,093 |
Total liabilities and shareholders’ equity | $ 497,741 | $ 476,372 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Dec. 27, 2015 | Jun. 28, 2015 |
Common stock, par (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares outstanding (in shares) | 17,822,065 | 18,007,749 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Net sales | $ 156,336 | $ 164,422 | $ 318,501 | $ 339,983 |
Cost of sales | 134,523 | 141,493 | 275,704 | 296,604 |
Gross profit | 21,813 | 22,929 | 42,797 | 43,379 |
Selling, general and administrative expenses | 12,419 | 12,971 | 23,249 | 24,620 |
Provision for bad debts | 559 | 62 | 1,172 | 646 |
Other operating expense (income), net | 206 | (38) | 60 | 562 |
Operating income | 8,629 | 9,934 | 18,316 | 17,551 |
Interest income | (166) | (309) | (329) | (626) |
Interest expense | 816 | 1,209 | 1,800 | 2,028 |
Equity in earnings of unconsolidated affiliates | (303) | (3,281) | (3,163) | (7,002) |
Income before income taxes | 8,282 | 12,315 | 20,008 | 23,151 |
Provision for income taxes | 2,088 | 3,193 | 6,028 | 7,354 |
Net income including non-controlling interest | 6,194 | 9,122 | 13,980 | 15,797 |
Less: net (loss) attributable to non-controlling interest | (270) | (296) | (509) | (698) |
Net income attributable to Unifi, Inc. | $ 6,464 | $ 9,418 | $ 14,489 | $ 16,495 |
Net income attributable to Unifi, Inc. per common share: | ||||
Basic (in dollars per share) | $ 0.36 | $ 0.52 | $ 0.81 | $ 0.90 |
Diluted (in dollars per share) | $ 0.35 | $ 0.50 | $ 0.78 | $ 0.88 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Unconsolidated Affiliates [Member] | ||||
Foreign currency translation adjustments | $ (97) | $ (371) | $ (496) | $ (371) |
Net income including non-controlling interest | 6,194 | 9,122 | 13,980 | 15,797 |
Foreign currency translation adjustments | 515 | (5,483) | (10,523) | (12,524) |
Reclassification adjustments on interest rate swap | 19 | 89 | 38 | 193 |
Other comprehensive income (loss), net | 437 | (5,765) | (10,981) | (12,702) |
Comprehensive income including non-controlling interest | 6,631 | 3,357 | 2,999 | 3,095 |
Less: comprehensive (loss) attributable to non-controlling interest | (270) | (296) | (509) | (698) |
Comprehensive income attributable to Unifi, Inc. | $ 6,901 | $ 3,653 | $ 3,508 | $ 3,793 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 27, 2015 | Dec. 28, 2014 | |
ABLTermLoanMember | ||
Financing activities: | ||
Proceeds from Issuance of Secured Debt | $ 17,375 | $ 22,000 |
Term Loan Supplement [Member] | ||
Financing activities: | ||
Proceeds from Issuance of Secured Debt | 4,000 | |
Cash and cash equivalents at beginning of year | 10,013 | $ 15,907 |
Net income including non-controlling interest | 13,980 | 15,797 |
Equity in earnings of unconsolidated affiliates | (3,163) | $ (7,002) |
Distributions received from unconsolidated affiliates | 2,947 | |
Depreciation and amortization expense | 8,676 | $ 8,986 |
Non-cash compensation expense | 1,552 | 1,897 |
Excess tax benefit on stock-based compensation plans | (80) | (100) |
Deferred income taxes | 5,266 | 1,620 |
Other, net | (285) | 48 |
Receivables, net | 2,673 | 14,239 |
Inventories | (2,302) | (7,005) |
Other current assets and income taxes receivable | (1,646) | (4,330) |
Accounts payable and accrued expenses | (12,420) | (11,741) |
Income taxes payable | (350) | (2,897) |
Other non-current assets | (9) | $ 53 |
Other non-current liabilities | 553 | |
Net cash provided by operating activities | 15,392 | $ 9,565 |
Capital expenditures | (27,419) | (13,442) |
Proceeds from sale of assets | 2,103 | 101 |
Other, net | (707) | (91) |
Net cash used in investing activities | (26,023) | (13,432) |
Proceeds from ABL Revolver | 87,800 | 79,400 |
Payments on ABL Revolver | (76,600) | (86,400) |
Payments on ABL Term Loan | (4,500) | $ (2,813) |
Proceeds from construction financing | 790 | |
Payments on capital lease obligations | (1,971) | $ (417) |
Common stock repurchased and retired under publicly announced programs | (6,211) | (4,160) |
Proceeds from stock option exercises | 60 | 36 |
Excess tax benefit on stock-based compensation plans | 80 | 100 |
Contributions from non-controlling interest | 880 | 720 |
Other | (484) | (542) |
Net cash provided by financing activities | 21,219 | 7,924 |
Effect of exchange rate changes on cash and cash equivalents | (1,184) | (2,067) |
Net increase in cash and cash equivalents | 9,404 | 1,990 |
Cash and cash equivalents at end of period | $ 19,417 | $ 17,897 |
Note 1 - Background
Note 1 - Background | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. Background Unifi, Inc., a New York corporation formed in 1969 (together with its subsidiaries, “we”, the “Company” or “Unifi”), is a multi-national manufacturing company that processes and sells high-volume commodity yarns, specialized yarns designed to meet certain customer specifications, and premier value-added (“PVA”) yarns with enhanced performance characteristics. The Company sells yarns made from polyester and nylon to other yarn manufacturers and knitters and weavers that produce fabric for the apparel, hosiery, home furnishings, automotive upholstery, industrial and other end-use markets. The Company’s polyester products include polyester polymer beads (“Chip”), partially oriented yarn (“POY”), textured, solution and package dyed, twisted, beamed and draw wound yarns; each is available in virgin or recycled varieties (the latter made from both pre-consumer yarn waste and post-consumer waste, including plastic bottles). The Company’s nylon products include textured, solution dyed and spandex covered products. The Company maintains one of the textile industry’s most comprehensive yarn product offerings, and has ten manufacturing operations in four countries and participates in joint ventures in Israel and the United States (“U.S.”). The Company’s principal geographic markets for its products are located in the U.S., Canada, Mexico, Central America and South America. In addition, the Company has a wholly-owned subsidiary in the People’s Republic of China (“China”) focused on the sale and promotion of the Company’s PVA and other specialty products in the Asian textile market, primarily in China, as well as in the European market. In addition to the Company’s operations described above, the Company’s investments include, but are not limited to, (i) a 60% controlling membership interest in Repreve Renewables, LLC (“Renewables”), an agricultural company focused on the development, production and commercialization of dedicated biomass feedstock for use in the animal bedding, bio-energy and other bio-based products markets; and (ii) a 34% non-controlling partnership interest in Parkdale America, LLC (“PAL”), a producer of cotton and synthetic yarns for sale to the textile industry and apparel market, both foreign and domestic. |
Note 2 - Basis of Presentation;
Note 2 - Basis of Presentation; Condensed Notes | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Basis of Accounting [Text Block] | 2. Basis of Presentation; Condensed Notes The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. As contemplated by the instructions of the Securities and Exchange Commission to Form 10-Q, the following notes have been condensed and, therefore, do not contain all disclosures required in connection with annual financial statements. Reference should be made to the Company’s year-end audited consolidated financial statements and notes thereto contained in its Annual Report on Form 10-K for the fiscal year ended June 28, 2015 (the “2015 Form 10-K”). The financial information included in this report has been prepared by the Company, without audit. In the opinion of management, all adjustments considered necessary for a fair statement of the results for interim periods have been included. Nevertheless, the results shown for interim periods are not necessarily indicative of results to be expected for the full year. The preparation of financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the amounts reported and certain financial statement disclosures. Actual results may vary from these estimates. All dollar and other currency amounts and share amounts, except per share amounts, are presented in thousands (000s), except as otherwise noted. Fiscal Year The Company’s current fiscal quarter ended on December 27, 2015, the last Sunday in December. The Company’s Brazilian, Colombian and Chinese subsidiaries’ fiscal quarter ended on December 31, 2015. There were no significant transactions or events that occurred between the Company’s fiscal quarter end and its subsidiaries’ fiscal quarter end. The three months ended December 27, 2015 and December 28, 2014 each consisted of thirteen fiscal weeks. The six months ended December 27, 2015 and December 28, 2014 each consisted of twenty-six fiscal weeks. Reclassifications Certain reclassifications of prior years’ data have been made to conform to the current year presentation. Also see note 3. Net sales, cost of sales, selling, general and administrative (“SG&A”) expenses, and other operating expense (income), net for the three months and six months ended December 28, 2014 have been revised herein, where applicable, to correspond to the presentation for the three and six months ended December 27, 2015, consistent with note 27 in the 2015 Form 10-K. |
Note 3 - Recent Accounting Pron
Note 3 - Recent Accounting Pronouncements | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 3. Recent Accounting Pronouncements During the current fiscal quarter, the Company early adopted Accounting Standards Update (“ASU”) 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes The Condensed Consolidated Balance Sheets as of December 27, 2015 and June 28, 2015 presented within this Quarterly Report on Form 10-Q reflect the revised presentation requirements of ASU 2015-17, as outlined in the table below. June 28, 2015 As Previously Reported Adjustments D ue to Adoption of ASU 2015-17 June 28, 2015 As Adjusted Deferred income taxes (within total current assets) $ 2,383 $ (2,383 ) $ — Total current assets 215,347 (2,383 ) 212,964 Deferred income taxes (within non-current assets) 1,539 2,383 3,922 Total assets 476,372 — 476,372 Deferred income taxes (within non-current liabilities) 90 — 90 Total liabilities 177,279 — 177,279 There have been no other newly issued or newly applicable accounting pronouncements that have, or are expected to have, a significant impact on the Company's financial statements. |
Note 4 - Receivables, Net
Note 4 - Receivables, Net | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 4 . Receivables, Net Receivables, net consists of the following: Dec ember 27, 2015 June 28, 2015 Customer receivables $ 80,847 $ 85,731 Allowance for uncollectible accounts (2,363 ) (1,596 ) Reserves for yarn quality claims (719 ) (581 ) Net customer receivables 77,765 83,554 Related party receivables 79 75 Other receivables 305 234 Total receivables, net $ 78,149 $ 83,863 Other receivables consist primarily of receivables for duty drawback and refunds due from vendors. The changes in the Company’s allowance for uncollectible accounts were as follows: Allowance for Uncollectible Accounts Balance at June 28, 2015 $ (1,596 ) Charged to costs and expenses (1,172 ) Charged to other accounts 159 Deductions 246 Balance at December 27, 2015 $ (2,363 ) |
Note 5 - Inventories
Note 5 - Inventories | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 5. Inventories Inventories consists of the following: Dec ember 27, 2015 June 28, 2015 Raw materials $ 38,819 $ 42,526 Supplies 5,120 5,404 Work in process 5,685 7,546 Finished goods 60,265 56,844 Gross inventories 109,889 112,320 Inventory reserves (914 ) (705 ) Total inventories $ 108,975 $ 111,615 The cost for the majority of the Company’s inventories is determined using the first-in, first-out method. Certain foreign inventories and limited categories of supplies of $25,210 and $28,426 as of December 27, 2015 and June 28, 2015, respectively, were valued under the average cost method. |
Note 6 - Property, Plant and Eq
Note 6 - Property, Plant and Equipment, Net | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 6 . Property, Plant and Equipment, Net Property, plant and equipment, net (“PP&E”) consists of the following: Dec ember 27, 2015 June 28, 2015 Land $ 3,055 $ 2,413 Land improvements 12,017 11,709 Buildings and improvements 142,443 141,259 Assets under capital leases 21,525 17,371 Machinery and equipment 527,439 531,225 Computers, software and office equipment 16,871 16,782 Transportation equipment 4,529 4,736 Construction in progress 25,454 6,710 Gross property, plant and equipment 753,333 732,205 Less: accumulated depreciation (592,336 ) (595,094 ) Less: accumulated amortization – capital leases (1,787 ) (889 ) Total property, plant and equipment, net $ 159,210 $ 136,222 Assets under capital leases consists of the following: Dec ember 27, 2015 June 28, 2015 Machinery and equipment $ 14,745 $ 12,804 Transportation equipment 5,927 3,714 Building improvements 853 853 Gross assets under capital leases $ 21,525 $ 17,371 During the six months ended December 27, 2015, the Company entered into capital leases for machinery and transportation equipment with an aggregate present value of $4,154. Depreciation expense and repairs and maintenance expenses were as follows: For the Three Months Ended For the Six Months Ended December 2 7 , 201 5 December 28, 2014 December 2 7 , 201 5 December 28, 2014 Depreciation expense $ 3,756 $ 3,829 $ 7,598 $ 7,691 Repairs and maintenance expenses 4,005 4,290 8,501 8,948 |
Note 7 - Intangible Assets, Net
Note 7 - Intangible Assets, Net | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | 7 . Intangible Assets, Net Intangible assets, net consists of the following: Dece mber 2 7 , 201 5 June 28 , 201 5 Customer lists $ 23,615 $ 23,615 Non-compete agreements 4,293 4,293 Licenses, trademarks and other 864 837 Total intangible assets, gross 28,772 28,745 Accumulated amortization - customer lists (20,049 ) (19,432 ) Accumulated amortization - non-compete agreements (3,698 ) (3,537 ) Accumulated amortization – licenses, trademarks and other (471 ) (388 ) Total accumulated amortization (24,218 ) (23,357 ) Total intangible assets, net $ 4,554 $ 5,388 Amortization expense for intangible assets consists of the following: For the Three Months Ended For the Six Months Ended December 2 7 , 201 5 December 2 8 , 201 4 December 2 7 , 201 5 December 2 8 , 201 4 Total amortization expense $ 429 $ 519 $ 861 $ 1,037 |
Note 8 - Accrued Expenses
Note 8 - Accrued Expenses | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 8 . Accrued Expenses Accrued expenses consists of the following: December 27 , 201 5 June 28 , 201 5 Payroll and fringe benefits $ 6,038 $ 11,258 Utilities 1,986 2,823 Property taxes 1,563 790 Contingent consideration 394 634 Other 1,273 1,135 Total accrued expenses $ 11,254 $ 16,640 See note 14 for further information regarding the contingent consideration. Other consists primarily of employee-related claims and payments, interest, marketing expenses, freight expenses, rent, deferred incentives and other non-income related taxes. |
Note 9 - Long-term Debt
Note 9 - Long-term Debt | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | 9 . Long-Term Debt Debt Obligations The following table presents the total balances outstanding for the Company’s debt obligations, their scheduled maturity dates and the weighted average interest rates for borrowings as well as the applicable current portion of long-term debt: Principal Amounts as of Scheduled Maturity Date Weighted Average Interest Rate as of December 2 7 , 201 5 (1) Dece mber 2 7 , 201 5 June 2 8 , 201 5 ABL Revolver March 2020 2.3% $ 16,200 $ 5,000 ABL Term Loan March 2020 2.2% 95,000 82,125 Renewables’ promissory note September 2020 3.0% 135 — Renewables’ term loan August 2022 3.5% 4,000 — Term loan from unconsolidated affiliate August 2016 3.0% 1,250 1,250 Capital lease obligations (2) (3) 17,917 15,735 Construction financing (4) (4) 2,385 — Total debt 136,887 104,110 Current portion of capital lease obligations (4,274 ) (3,385 ) Current portion of long-term debt (10,776 ) (9,000 ) Total long-term debt $ 121,837 $ 91,725 (1) The weighted average interest rate as of December 27, 2015 for the ABL Term Loan includes the effects of the interest rate swap with a notional balance of $50,000. (2) Scheduled maturity dates for capital lease obligations range from January 2017 to November 2027. (3) Interest rates for capital lease obligations range from 2.3% to 4.6%. (4) Refer to the discussion under the subheading “— Construction Financing On March 26, 2015, the Company and its subsidiary, Unifi Manufacturing, Inc., entered into an Amended and Restated Credit Agreement (as subsequently amended, the “Amended Credit Agreement”) for a $200,000 senior secured credit facility (the “ABL Facility”) with a syndicate of lenders. The ABL Facility consists of a $100,000 revolving credit facility (the “ABL Revolver”) and a term loan that can be reset up to a maximum amount of $100,000, once per fiscal year, if certain conditions are met (the “ABL Term Loan”). Such a principal increase occurred during the quarter ended December 27, 2015, as described below under the subheading “— Second Amendment The Amended Credit Agreement replaced a previous senior secured credit facility dated May 24, 2012 with a similar syndicate of lenders, which, after multiple amendments, would have matured on March 28, 2019 and consisted of a $100,000 revolving credit facility and a $90,000 term loan. As used herein, the terms “ABL Facility,” “ABL Revolver” and “ABL Term Loan” shall mean the senior secured credit facility, the revolving credit facility or the term loan, respectively, under the Amended Credit Agreement or the previous senior secured credit facility, as applicable. ABL Facility The ABL Facility is secured by a first-priority perfected security interest in substantially all owned property and assets (together with proceeds and products) of Unifi, Inc., Unifi Manufacturing, Inc. and certain subsidiary guarantors (the “Loan Parties”). It is also secured by a first-priority security interest in all (or 65% in the case of certain first-tier controlled foreign corporations, as required by the lenders) of the stock of (or other ownership interests in) each of the Loan Parties (other than the Company) and certain subsidiaries of the Loan Parties, together with all proceeds and products thereof. If excess availability under the ABL Revolver falls below the defined Trigger Level, a financial covenant requiring the Loan Parties to maintain a fixed charge coverage ratio on a monthly basis of at least 1.05 to 1.0 becomes effective. The Trigger Level as of December 27, 2015 was $24,375. In addition, the ABL Facility contains restrictions on certain payments and investments, including restrictions on the payment of dividends and share repurchases. Subject to certain provisions, the ABL Term Loan may be prepaid at par, in whole or in part, at any time before the maturity date, at the Company’s discretion. As of December 27, 2015, the Company was in compliance with all financial covenants and the excess availability under the ABL Revolver was $65,125. At December 27, 2015 the fixed charge coverage ratio was 2.8 to 1.0 and the Company had $210 of standby letters of credit, none of which have been drawn upon. Second Amendment On November 19, 2015, the Company entered into the Second Amendment to Amended and Restated Credit Agreement dated March 26, 2015 (“Second Amendment”). The Second Amendment increased the percentage applied to real estate valuations, on a one-time basis, from 60% to 75%, for purposes of calculating the Term Loan collateral. Simultaneous to entering into the Second Amendment, the Company entered into the Fourth Amended and Restated Term Note, thereby resetting the ABL Term Loan balance to $95,000. Pursuant to the Second Amendment, the ABL Term Loan is subject to quarterly amortizing payments of $2,375. Renewables’ Promissory Note In September 2015, Renewables delivered a promissory note in the amount of $135, and cash, to an unrelated third party for the purchase of certain land, consisting of thirty-seven acres located in Seven Springs, North Carolina, valued at $191. Such promissory note bears fixed interest at 3.0%, with principal and interest payable annually over a five-year period. Renewables’ Term Loan In September 2015, Renewables entered into a secured debt financing arrangement consisting of a master loan agreement and corresponding term loan supplement, with unrelated parties, with a borrowing capacity of up to $4,000. In October 2015, Renewables borrowed $4,000. The agreements include representations and warranties made by Renewables, financial covenants, affirmative and negative covenants and events of default that are usual and customary for financings of this type. Borrowings bear interest at LIBOR plus an applicable margin of 3.25%, payable monthly in arrears. Lender recourse does not extend beyond the assets of Renewables. Capital Lease Obligations During the six months ended December 27, 2015, the Company entered into capital leases with an aggregate present value of $4,154. Fixed interest rates for these capital leases range from 3.4% to 3.8%, with maturity dates in August 2020. Construction Financing In December 2015, the Company entered into an agreement with a third party lender that provides for construction-period financing for certain build-to-suit assets. The Company will record project costs to construction in progress and the corresponding liability to construction financing (within long-term debt). The agreement provides for monthly, interest-only payments during the construction period, at a rate of 3.5%, and contains terms customary for a financing of this type. The agreement provides for 60 monthly payments, which will commence at the earlier of the completion of the construction period or July 1, 2017, with an interest rate of 3.2%. In connection with this construction financing arrangement, during the quarter ended December 27, 2015, the Company (i) recorded $210 of deferred financing fees and (ii) recorded long-term debt of $2,385 (to reflect $790 of proceeds for construction financing and $1,595 for construction in progress paid by the third party lender). Scheduled Debt Maturities The following table presents the scheduled maturities of the Company’s outstanding debt obligations for the remainder of fiscal year 2016 and the fiscal years thereafter: Scheduled Maturities on a Fiscal Year Basis 2016 201 7 201 8 20 19 202 0 Thereafter ABL Revolver $ — $ — $ — $ — $ 16,200 $ — ABL Term Loan 4,750 9,500 9,500 9,500 61,750 — Renewables’ promissory note — 25 26 27 28 29 Renewables’ term loan — — — — 1,111 2,889 Term loan from unconsolidated affiliate — 1,250 — — — — Capital lease obligations 2,120 4,261 4,128 4,058 2,542 808 Total (1) $ 6,870 $ 15,036 $ 13,654 $ 13,585 $ 81,631 $ 3,726 (1) Total reported here excludes $2,385 for construction financing, described above. |
Note 10 - Other Long-term Liabi
Note 10 - Other Long-term Liabilities | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Other Liabilities Disclosure [Text Block] | 1 0 . Other Long-Term Liabilities Other long-term liabilities consists of the following: Dec ember 27, 2015 June 28 , 201 5 Uncertain tax positions $ 3,737 $ 3,980 Supplemental post-employment plan 3,677 3,690 Contingent consideration 1,180 1,573 Deferred rent 800 — Interest rate swap 197 280 Other 1,276 1,217 Total other long-term liabilities $ 10,867 $ 10,740 See note 14 for further information regarding the contingent consideration. Other primarily includes certain retiree and post-employment medical and disability liabilities, and deferred energy incentive credits. |
Note 11 - Income Taxes
Note 11 - Income Taxes | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 11. Income Taxes The provision for income taxes was as follows: For the Three Months Ended For the Six Months Ended December 27, 2015 December 28, 2014 December 27, 2015 December 28, 2014 Provision for income taxes $ 2,088 $ 3,193 $ 6,028 $ 7,354 Effective tax rate 25.2 % 25.9 % 30.1 % 31.8 % The effective tax rate for the periods presented above is lower than the U.S. statutory rate due to (i) a decrease in the valuation allowance reflecting the recognition of lower taxable income versus book income for the Company’s investment in Parkdale America, LLC (for which the Company maintains a full valuation allowance), which was partially offset by an increase in the valuation allowance for net operating losses, including Renewables (for which no tax benefit could be recognized); (ii) a lower overall effective tax rate for the Company’s foreign earnings (reflecting free-trade zone sales in El Salvador and lower statutory tax rates in both Brazil and China) and (iii) the domestic production activities deduction. These items were partially offset by (a) state and local taxes net of the assumed federal benefit and (b) losses in tax jurisdictions for which no tax benefit could be recognized. The audit of the 2013 tax year by the Internal Revenue Service was closed in December 2015 and did not generate a significant change in uncertain tax positions for the six months ended December 27, 2015. The Company regularly assesses the outcomes of both completed and ongoing examinations to ensure that the Company’s provision for income taxes is sufficient. Certain returns that remain open to examination have utilized carryforward tax attributes generated in prior tax years, including net operating losses, which could potentially be revised upon examination. During the three months ended December 27, 2015, the Company utilized a foreign tax credit as a deduction by amending its 2011 federal return. Components of the Company’s deferred tax valuation allowance are as follows: December 27, 2015 June 28, 2015 Investment in a former domestic unconsolidated affiliate $ (6,399 ) $ (6,503 ) Equity-method investment in Parkdale America, LLC (2,666 ) (3,261 ) Foreign tax credits — (1,680 ) Book versus tax basis difference in Renewables (1,210 ) (1,359 ) Net Operating Losses related to Renewables (3,313 ) (2,803 ) Total deferred tax valuation allowance $ (13,588 ) $ (15,606 ) |
Note 12 - Shareholders' Equity
Note 12 - Shareholders' Equity | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 12. Shareholders’ Equity The following table summarizes the Company’s repurchases and retirements of its common stock under Board-approved stock repurchase programs for the fiscal periods noted. Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs Average Price Paid per Share Maximum Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs Fiscal year 2013 1,068 $ 18.08 Fiscal year 2014 1,524 $ 23.96 Fiscal year 2015 349 $ 29.72 Fiscal year 2016 (through December 27, 2015) 206 $ 30.13 Total 3,147 $ 23.01 $ 27,603 No dividends were paid during the six months ended December 27, 2015 or in the two most recent fiscal years. |
Note 13 - Stock-based Compensat
Note 13 - Stock-based Compensation | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 13. Stock-based Compensation On October 23, 2013, the Company’s shareholders approved the Unifi, Inc. 2013 Incentive Compensation Plan (the “2013 Plan”). The 2013 Plan replaced the 2008 Unifi, Inc. Long-Term Incentive Plan (“2008 LTIP”). No additional awards can be granted under the 2008 LTIP; however, prior awards outstanding under the 2008 LTIP remain subject to that plan’s provisions. The 2013 Plan authorized the issuance of 1,000 shares of common stock, subject to certain increases in the event outstanding awards under the 2008 LTIP expire, are forfeited or otherwise terminate unexercised. As of December 27, 2015, a summary of the number of securities remaining available for future issuance under equity compensation plans is as follows: Authorized under the 2013 Plan 1,000 Plus: Awards expired, forfeited or otherwise terminated unexercised from the 2008 LTIP or 2013 Plan 22 Less: Service-condition options granted (237 ) Less: RSUs granted to non-employee directors (63 ) Available for issuance under the 2013 Plan 722 Stock options During the six months ended December 27, 2015 and December 28, 2014, the Company granted stock options to purchase 82 and 150 shares of common stock, respectively, to certain key employees. The stock options vest ratably over the required three-year service period and have ten-year contractual terms. For the six months ended December 27, 2015 and December 28, 2014, the weighted average exercise price of the options was $32.36 and $27.38 per share, respectively. The Company used the Black-Scholes model to estimate the weighted average grant date fair value of $20.27 and $17.31 per share, respectively. Restricted stock units During the six months ended December 27, 2015 and December 28, 2014, the Company granted 21 and 17 restricted stock units (“RSUs”), respectively, to the Company’s non-employee directors. The director RSUs became fully vested on the grant date. The director RSUs convey no rights of ownership in shares of Company stock until such director RSUs have been distributed to the grantee in the form of Company stock. The vested director RSUs will be converted into an equivalent number of shares of Company common stock and distributed to the grantee following the grantee’s termination of service as a member of the Board. The grantee may elect to defer receipt of the shares of stock in accordance with the deferral options provided under the Unifi, Inc. Director Deferred Compensation Plan. The Company estimated the weighted average fair value of such awards granted during the six months ended December 27, 2015 and December 28, 2014 to be $29.12 and $28.58 per director RSU, respectively. The Company also may issue, from time to time, RSUs to certain key employees. The Company estimates the fair value of RSUs based on the market price of the Company’s common stock at the award grant date. See note 16 included in the 2015 Form 10-K for further information regarding the Company’s RSUs. |
Note 14 - Fair Value of Financi
Note 14 - Fair Value of Financial Instruments and Non-financial Assets and Liabilities | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 14. Fair Value of Financial Instruments and Non-Financial Assets and Liabilities The Company may use derivative financial instruments such as foreign currency forward contracts or interest rate swaps to reduce its ongoing business exposures to fluctuations in foreign currency exchange rates or interest rates. The Company does not enter into derivative contracts for speculative purposes. Foreign currency forward contracts The Company may enter into foreign currency forward contracts as economic hedges for exposures related to certain sales, inventory purchases and equipment purchases which are denominated in currencies that are not its functional currency. Foreign currency forward contracts are not designated as hedges by the Company and are marked to market each period and offset by the foreign exchange (gains) losses included in other operating expense (income), net resulting from the underlying exposures of the foreign currency denominated assets and liabilities. As of December 27, 2015, there were no outstanding foreign currency forward contracts. Interest rate swap On May 18, 2012, the Company entered into a five year, $50,000 interest rate swap with Wells Fargo to provide a hedge against the variability of cash flows related to LIBOR-based variable rate borrowings under the Company’s ABL Facility. It increased to $85,000 in May 2013 (when certain other interest rate swaps terminated) and has decreased $5,000 per quarter since August 2013 to the current notional balance of $50,000, where it will remain through the life of the instrument. This interest rate swap allows the Company to fix LIBOR at 1.06% and terminates on May 24, 2017. On November 26, 2012, the Company de-designated the interest rate swap as a cash flow hedge. See note 15 for information regarding the reclassifications of amounts from accumulated other comprehensive loss related to the interest rate swap. Contingent consideration On December 2, 2013, the Company acquired certain draw-winding assets in a business combination and recorded a contingent consideration liability. The fair value of the contingent consideration is measured at each reporting period using a discounted cash flow methodology, based on inputs not observable in the market (Level 3 classification in the fair value hierarchy). The inputs to the discounted cash flow model include the estimated payments through the term of the agreement, based on an agreed-upon definition and schedule, adjusted to risk-neutral estimates using a market price of risk factor that considers relevant metrics of comparable entities, discounted using an observable cost of debt over the term of the estimated payments. Any change in the fair value from either the passage of time or events occurring after the acquisition date is recorded in other operating expense (income), net. While adjustments have been made to reflect lower-than-expected results for draw-winding operations during fiscal year 2016, there have been no significant changes to the other inputs or assumptions used to develop the fair value measurement since the acquisition date. A reconciliation of the changes in the fair value follows: Contingent consideration as of June 28, 2015 $ 2,207 Changes in fair value (157 ) Payments (476 ) Contingent consideration as of December 27, 2015 $ 1,574 The Company’s financial assets and liabilities accounted for at fair value on a recurring basis and the level within the fair value hierarchy used to measure these items are as follows: As of December 27, 2015 Notional Amount USD Equivalent Balance Sheet Location Fair Value Hierarchy Fair Value Interest rate swap USD $ 50,000 $ 50,000 Other long-term liabilities Level 2 $ (197 ) Contingent consideration — — Accrued expenses and other long-term liabilities Level 3 $ (1,574 ) As of June 28, 2015 Notional Amount USD Equivalent Balance Sheet Location Fair Value Hierarchy Fair Value Interest rate swap USD $ 50,000 $ 50,000 Other long-term liabilities Level 2 $ (280 ) Contingent consideration — — Accrued expenses and other long-term liabilities Level 3 $ (2,207 ) Estimates for the fair value of the interest rate swap are obtained from month-end market quotes for contracts with similar terms. By entering into derivative instrument contracts, the Company exposes itself to counterparty credit risk. The Company attempts to minimize this risk by selecting counterparties with investment grade credit ratings, limiting the amount of exposure to any single counterparty and regularly monitoring its market position with each counterparty. The Company’s derivative instruments do not contain any credit-risk-related contingent features. The Company believes that there have been no significant changes to its credit risk profile or the interest rates available to the Company for debt issuances with similar terms and average maturities, and the Company estimates that the fair values of its debt obligations approximate the carrying amounts. Other financial instruments include cash and cash equivalents, receivables, accounts payable and accrued expenses. The financial statement carrying amounts of these items approximate the fair value due to their short-term nature. There were no transfers into or out of the levels of the fair value hierarchy for the six months ended December 27, 2015 and December 28, 2014. |
Note 15 - Accumulated Other Com
Note 15 - Accumulated Other Comprehensive Loss | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Comprehensive Income (Loss) Note [Text Block] | 15. Accumulated Other Comprehensive Loss The components and the changes in accumulated other comprehensive loss, net of tax, as applicable, consist of the following: Foreign Currency Translation Adjustments Unrealized (Loss) Gain On Interest Rate Swap Accumulated Other Comprehensive Loss Balance at June 28, 2015 $ (26,752 ) $ (147 ) $ (26,899 ) Other comprehensive (loss) income, net of tax (11,019 ) 38 (10,981 ) Balance at December 27, 2015 $ (37,771 ) $ (109 ) $ (37,880 ) A summary of the after-tax effects of the components of other comprehensive loss for the three months and six months ended December 27, 2015 and December 28, 2014 follows. The summary below excludes pre-tax and tax amounts, as there are no tax components for the activity reflected. For the Three Months Ended For the Six Months Ended December 27, 2015 December 28, 2014 December 27, 2015 December 28, 2014 Other comprehensive income (loss): Foreign currency translation adjustments $ 515 $ (5,483 ) $ (10,523 ) $ (12,524 ) Foreign currency translation adjustments for an unconsolidated affiliate (97 ) (371 ) (496 ) (371 ) Reclassification adjustment on interest rate swap 19 89 38 193 Other comprehensive income (loss), net $ 437 $ (5,765 ) $ (10,981 ) $ (12,702 ) |
Note 16 - Computation of Earnin
Note 16 - Computation of Earnings Per Share | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 16. Earnings Per Share The components of the calculation of earnings per share (“EPS”) are as follows: For the Three Months Ended For the Six Months Ended December 2 7 , 201 5 December 28, 2014 December 2 7 , 201 5 December 2 8 , 201 4 Net income attributable to Unifi, Inc. $ 6,464 $ 9,418 $ 14,489 $ 16,495 Basic weighted average shares 17,823 18,180 17,872 18,235 Net potential common share equivalents – stock options and RSUs 634 602 631 600 Diluted weighted average shares 18,457 18,782 18,503 18,835 Excluded from diluted weighted average shares: Anti-dilutive common share equivalents 143 177 143 177 Unvested market condition stock options — 10 — 10 The calculation of earnings per share is based on the weighted average number of the Company’s common shares outstanding for the applicable period. The calculation of diluted earnings per common share presents the effect of all potential dilutive common shares that were outstanding during the respective period, unless the effect of doing so is anti-dilutive. |
Note 17 - Investments in Uncons
Note 17 - Investments in Unconsolidated Affiliates and Variable Interest Entities | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | 17. Investments in Unconsolidated Affiliates and Variable Interest Entities The Company currently maintains investments in three entities classified as unconsolidated affiliates: Parkdale America, LLC (“PAL”); U.N.F. Industries Ltd. (“UNF”); and UNF America LLC (“UNFA”). As of December 27, 2015, the Company’s investment in PAL was $110,059 and the Company’s combined investments in UNF and UNFA were $3,651, reflected within investments in unconsolidated affiliates in the consolidated balance sheets. Parkdale America, LLC PAL is a limited liability company treated as a partnership for income tax reporting purposes. The Company has a 34% ownership interest in PAL, which is accounted for using the equity method of accounting. PAL is a producer of cotton and synthetic yarns for sale to the textile industry and apparel market, both foreign and domestic. PAL is subject to price risk related to anticipated fixed-price yarn sales. To protect the gross margin of these sales, PAL may enter into cotton futures to manage changes in raw material prices. The derivative instruments used are listed and traded on an exchange and are thus valued using quoted prices classified within Level 1 of the fair value hierarchy. As of December 2015, PAL had no futures contracts designated as cash flow hedges. As PAL’s fiscal year end is the Saturday nearest to December 31 and its results are considered significant (in accordance with Regulation S-X Rule 3-09), the Company files an amendment to each Annual Report on Form 10-K on or before 90 days subsequent to PAL’s fiscal year end to provide PAL’s audited financial statements for PAL’s most recent fiscal year. The Company filed an amendment to its 2014 Annual Report on Form 10-K for the fiscal year ended June 29, 2014 on April 2, 2015 to provide PAL’s audited financial statements for PAL’s fiscal year ended January 3, 2015. The Company expects to file an amendment to the 2015 Form 10-K on or before April 1, 2016 to provide PAL’s audited financial statements for PAL’s fiscal year ended January 2, 2016. On February 27, 2015, PAL purchased two manufacturing facilities, plus inventory, for approximately $13,000 cash, and entered into a yarn supply agreement with the seller. PAL has accounted for the transaction as a business combination under the acquisition method, recognizing the assets acquired and liabilities assumed at their respective provisional fair values as of the acquisition date. The Company and PAL concluded that the acquisition did not represent a material business combination. PAL has recognized a provisional bargain purchase gain of approximately $9,381 in its initial accounting for the acquisition for all identified assets and liabilities. The Company and PAL will continue to review the acquisition accounting during the measurement period, and if new information obtained about facts and circumstances that existed at the acquisition date identifies adjustments to the assets or liabilities initially recognized, as well as any additional assets or liabilities that existed at the acquisition date, the acquisition accounting will be revised to reflect the resulting adjustments to the provisional amounts. The acquisition accounting is incomplete, primarily pending final asset valuations. The reconciliation between the Company’s share of the underlying equity of PAL and its investment is as follows: Underlying equity as of December 27, 2015 $ 128,364 Initial excess capital contributions 53,363 Impairment charge recorded by the Company in 2007 (74,106 ) Anti-trust lawsuit against PAL in which the Company did not participate 2,652 Cotton rebate program adjustments (214 ) Investment as of December 27, 2015 $ 110,059 U.N.F. Industries Ltd. Raw material and production services for UNF are provided by the Company’s 50% joint venture partner under separate supply and services agreements. UNF’s fiscal year end is December 31 and it is a registered Israeli private company located in Migdal Ha-Emek, Israel. UNF America LLC Raw material and production services for UNFA are provided by the Company’s 50% joint venture partner under separate supply and services agreements. UNFA’s fiscal year end is December 31 and it is a limited liability company treated as a partnership for income tax reporting purposes located in Ridgeway, Virginia. In conjunction with the formation of UNFA, the Company entered into a supply agreement with UNF and UNFA whereby the Company agreed to purchase all of its first quality nylon POY requirements for texturing (subject to certain exceptions) from either UNF or UNFA. The agreement has no stated minimum purchase quantities and pricing is negotiated every six months, based on market rates. As of December 27, 2015, the Company’s open purchase orders related to this agreement were $3,192. The Company’s raw material purchases under this supply agreement consist of the following: For the Six Months Ended Dec ember 2 7, 201 5 Dec ember 2 8 , 2014 UNF $ 1,356 $ 1,817 UNFA 13,441 14,274 Total $ 14,797 $ 16,091 As of December 27, 2015 and June 28, 2015, the Company had combined accounts payable due to UNF and UNFA of $2,565 and $4,038, respectively. 17 Unifi, Inc. Notes to Condensed Consolidated Financial Statements (Continued) The Company has determined that UNF and UNFA are variable interest entities (“VIEs”) and has also determined that the Company is the primary beneficiary of these entities, based on the terms of the supply agreement. As a result, these entities should be consolidated in the Company’s financial results. As the Company purchases substantially all of the output from the two entities, the two entities’ balance sheets constitute 3% or less of the Company’s current assets, total assets and total liabilities (when excluding reciprocal balances), and because such balances are not expected to comprise a larger portion in the future, the Company has not included the accounts of UNF and UNFA in its consolidated financial statements. The financial results of UNF and UNFA are included in the Company’s financial statements with a one-month lag, using the equity method of accounting and with intercompany profits eliminated in accordance with the Company’s accounting policy. Other than the supply agreement discussed above, the Company does not provide any other commitments or guarantees related to either UNF or UNFA. Condensed balance sheet and income statement information for the Company’s unconsolidated affiliates (including reciprocal balances) is presented in the following tables. As PAL is defined as significant, its information is separately disclosed. As of December 27, 2015 PAL Other Total Current assets $ 218,948 $ 10,070 $ 229,018 Noncurrent assets 211,053 1,110 212,163 Current liabilities 43,751 3,937 47,688 Noncurrent liabilities 8,708 — 8,708 Shareholders’ equity and capital accounts 377,542 7,243 384,785 The Company’s portion of undistributed earnings 40,741 1,335 42,076 As of June 28, 2015 PAL Other Total Current assets $ 250,699 $ 9,273 $ 259,972 Noncurrent assets 216,708 3,676 220,384 Current liabilities 61,243 4,985 66,228 Noncurrent liabilities 28,935 — 28,935 Shareholders’ equity and capital accounts 377,229 7,964 385,193 For the Three Months Ended December 27, 2015 PAL Other Total Net sales $ 183,426 $ 7,264 $ 190,690 Gross profit 2,917 1,852 4,769 (Loss) income from operations (1,437 ) 1,389 (48 ) Net (loss) income (1,170 ) 1,420 250 Depreciation and amortization 11,169 37 11,206 Cash received by PAL under cotton rebate program 5,676 — 5,676 Earnings recognized by PAL for cotton rebate program 3,574 — 3,574 Distributions received — 1,000 1,000 As of the end of PAL’s fiscal December 2015 period, PAL’s amount of deferred revenues related to the cotton rebate program was $0. For the Three Months Ended December 28, 2014 PAL Other Total Net sales $ 192,243 $ 8,955 $ 201,198 Gross profit 12,063 1,007 13,070 Income from operations 6,909 655 7,564 Net income 9,039 685 9,724 Depreciation and amortization 8,161 25 8,186 Cash received by PAL under cotton rebate program 4,153 — 4,153 Earnings recognized by PAL for cotton rebate program 3,854 — 3,854 Distributions received — — — As of the end of PAL’s fiscal December 2014 period, PAL’s amount of deferred revenues related to the cotton rebate program was $0. 18 Unifi, Inc. Notes to Condensed Consolidated Financial Statements (Continued) For the Six Months Ended December 27, 2015 PAL Other Total Net sales $ 407,491 $ 16,613 $ 424,104 Gross profit 10,304 4,182 14,486 Income from operations 2,124 3,238 5,362 Net income 4,559 3,278 7,837 Depreciation and amortization 20,863 74 20,937 Cash received by PAL under cotton rebate program 8,860 — 8,860 Earnings recognized by PAL for cotton rebate program 7,928 — 7,928 Distributions received 947 2,000 2,947 For the Six Months Ended December 28, 2014 PAL Other Total Net sales $ 398,479 $ 16,315 $ 414,794 Gross profit 23,032 1,662 24,694 Income from operations 13,723 948 14,671 Net income 19,003 1,024 20,027 Depreciation and amortization 15,369 50 15,419 Cash received by PAL under cotton rebate program 8,454 — 8,454 Earnings recognized by PAL for cotton rebate program 8,755 — 8,755 Distributions received — — — |
Note 18 - Commitments and Conti
Note 18 - Commitments and Contingencies | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 18 . Commitments and Contingencies Collective Bargaining Agreements While employees of the Company’s Brazilian operations are unionized, none of the labor force employed by the Company’s domestic or other foreign subsidiaries is currently covered by a collective bargaining agreement. Environmental On September 30, 2004, the Company completed its acquisition of the polyester filament manufacturing assets located in Kinston, North Carolina from INVISTA S.a.r.l (“Invista”). The land for the Kinston site was leased pursuant to a 99 year ground lease (“Ground Lease”) with E.I. DuPont de Nemours (“DuPont”). Since 1993, DuPont has been investigating and cleaning up the Kinston site under the supervision of the U.S. Environmental Protection Agency (“EPA”) and the North Carolina Department of Environment and Natural Resources (“DENR”) pursuant to the Resource Conservation and Recovery Act Corrective Action program. The Corrective Action program requires DuPont to identify all potential areas of environmental concern (“AOCs”), assess the extent of containment at the identified AOCs and to clean it up to comply with applicable regulatory standards. Effective March 20, 2008, the Company entered into a Lease Termination Agreement associated with conveyance of certain assets at Kinston to DuPont. This agreement terminated the Ground Lease and relieved the Company of any future responsibility for environmental remediation, other than participation with DuPont, if so called upon, with regard to the Company’s period of operation of the Kinston site which was from 2004 to 2008. However, the Company continues to own a satellite service facility acquired in the INVISTA transaction that has contamination from DuPont’s operations and is monitored by DENR. This site has been remediated by DuPont, and DuPont has received authority from DENR to discontinue remediation, other than natural attenuation. DuPont’s duty to monitor and report to DENR will be transferred to the Company in the future, at which time DuPont must pay the Company for seven years of monitoring and reporting costs and the Company will assume responsibility for any future remediation and monitoring of the site. At this time, the Company has no basis to determine if or when it will have any responsibility or obligation with respect to the AOCs or the extent of any potential liability for the same. Operating Leases The Company routinely leases sales and administrative office space, warehousing and distribution centers, manufacturing space, transportation equipment, manufacturing equipment, and other information technology and office equipment from third parties. In addition, Renewables leases farm land for use in growing giant miscanthus. In connection with the expansion of growing crop fields, Renewables has entered into multiple operating leases for land during the six months ended December 27, 2015, many of which have lease terms of ten years with cancellation terms of one year. Currently, the Company does not sub-lease any of its leased property. Other Commitments The Company has assumed various financial obligations and commitments in the normal course of its operations and financing activities. Financial obligations are considered to represent known future cash payments that the Company is required to make under existing contractual arrangements. During the six months ended December 27, 2015, the Company entered into certain agreements to purchase assets in connection with the construction of a plastic bottle processing plant for the Polyester Segment. Unpaid amounts relating to these agreements total approximately $7,150, and relate to equipment not yet received by the Company. In October 2015, the Company entered into a commitment to construct assets for future use in conversion of third party product. While the subject assets are being financed by a construction financing arrangement (described in note 9), in the course of facilitating construction, the Company will incur commitments to equipment vendors and contractors. As of December 27, 2015, such commitments total approximately $6,600. |
Note 19 - Related Party Transac
Note 19 - Related Party Transactions | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 19. Related Party Transactions For details regarding the nature of certain related party relationships, see note 25 included in the 2015 Form 10-K. Related party receivables consist of the following: December 27, 2015 June 28, 2015 Cupron, Inc. $ 71 $ 72 Salem Global Logistics, Inc. 8 3 Total related party receivables (included within receivables, net) $ 79 $ 75 Related party payables consist of the following: December 27, 2015 June 28, 2015 Cupron, Inc. $ 520 $ 506 Salem Leasing Corporation 367 277 Total related party payables (included within accounts payable) $ 887 $ 783 Related party transactions consist of the following: For the Three Months Ended Affiliated Entity Transaction Type December 27, 2015 December 28, 2014 Salem Leasing Corporation Transportation equipment costs $ 931 $ 947 Salem Global Logistics, Inc. Freight service income 81 63 Cupron, Inc. Sales 147 208 Cupron, Inc. Yarn purchases 8 210 For the Six Months Ended Affiliated Entity Transaction Type December 27, 2015 December 28, 2014 Salem Leasing Corporation Transportation equipment costs $ 1,876 $ 1,897 Salem Global Logistics, Inc. Freight service income 143 132 Cupron, Inc. Sales 252 549 Cupron, Inc. Yarn Purchases 8 210 Invemed Associates LLC Brokerage services 4 2 From time to time, the Company exchanges equipment or extends the term of operating leases for certain transportation equipment under a master lease agreement with Salem Leasing Corporation. During the six months ended December 27, 2015, the Company exchanged multiple power units pursuant to such master lease agreement, with terms extending over the next four to six years. The increase to the existing obligation approximates $6,500. Through April 24, 2015, Mr. Mitchel Weinberger was a member of the Company’s Board. Related party transaction amounts for entities affiliated with Mr. Weinberger are omitted from current disclosures as such entities no longer constitute related parties of the Company. |
Note 20 - Business Segment Info
Note 20 - Business Segment Information | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 20 . 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 and six months ended December 28, 2014, have been revised to reflect reclassification into the All Other category. For the Three Months Ended Dec ember 27, 2015 Polyester Nylon International All Other Total Net sales $ 89,814 $ 40,367 $ 24,812 $ 1,343 $ 156,336 Cost of sales 78,001 34,653 20,431 1,438 134,523 Gross profit (loss) 11,813 5,714 4,381 (95 ) 21,813 Segment depreciation expense 2,736 515 192 162 3,605 Segment Profit $ 14,549 $ 6,229 $ 4,573 $ 67 $ 25,418 For the Three Months Ended Dece mber 28, 2014 Polyester Nylon International All Other Total Net sales $ 90,431 $ 39,212 $ 33,506 $ 1,273 $ 164,422 Cost of sales 78,099 33,584 28,429 1,381 141,493 Gross profit (loss) 12,332 5,628 5,077 (108 ) 22,929 Segment depreciation expense 2,442 470 658 109 3,679 Segment Profit $ 14,774 $ 6,098 $ 5,735 $ 1 $ 26,608 The reconciliations of segment gross profit (loss) to consolidated income before income taxes are as follows: For the Three Months Ended Dec ember 27, 2015 Dec ember 28, 2014 Polyester $ 11,813 $ 12,332 Nylon 5,714 5,628 International 4,381 5,077 All Other category (95 ) (108 ) Segment gross profit 21,813 22,929 SG&A expenses 12,419 12,971 Provision for bad debts 559 62 Other operating expense (income), net 206 (38 ) Operating income 8,629 9,934 Interest income (166 ) (309 ) Interest expense 816 1,209 Equity in earnings of unconsolidated affiliates (303 ) (3,281 ) Income before income taxes $ 8,282 $ 12,315 For the Six Months Ended Dec ember 27, 2015 Polyester Nylon International All Other Total Net sales $ 180,382 $ 81,043 $ 54,183 $ 2,893 $ 318,501 Cost of sales 159,280 69,147 44,211 3,066 275,704 Gross profit (loss) 21,102 11,896 9,972 (173 ) 42,797 Segment depreciation expense 5,547 1,033 413 314 7,307 Segment Profit $ 26,649 $ 12,929 $ 10,385 $ 141 $ 50,104 For the Six Months Ended Dece mber 28, 2014 Polyester Nylon International All Other Total Net sales $ 183,409 $ 83,922 $ 70,000 $ 2,652 $ 339,983 Cost of sales 160,801 73,145 59,610 3,048 296,604 Gross profit (loss) 22,608 10,777 10,390 (396 ) 43,379 Segment depreciation expense 4,856 932 1,385 219 7,392 Segment Profit (Loss) $ 27,464 $ 11,709 $ 11,775 $ (177 ) $ 50,771 The reconciliations of segment gross profit (loss) to consolidated income before income taxes are as follows: For the Six Months Ended Dec ember 27, 2015 Dec ember 28, 2014 Polyester $ 21,102 $ 22,608 Nylon 11,896 10,777 International 9,972 10,390 All Other category (173 ) (396 ) Segment gross profit 42,797 43,379 SG&A expenses 23,249 24,620 Provision for bad debts 1,172 646 Other operating expense (income), net 60 562 Operating income 18,316 17,551 Interest income (329 ) (626 ) Interest expense 1,800 2,028 Equity in earnings of unconsolidated affiliates (3,163 ) (7,002 ) Income before income taxes $ 20,008 $ 23,151 The reconciliations of segment capital expenditures to consolidated capital expenditures are as follows: For the Six Months Ended December 27, 2015 December 28, 2014 Polyester $ 23,437 $ 12,026 Nylon 996 475 International 891 735 All Other category 1,716 43 Segment capital expenditures 27,040 13,279 Other capital expenditures 379 163 Capital expenditures $ 27,419 $ 13,442 The reconciliations of segment total assets to consolidated total assets are as follows: December 2 7 , 201 5 June 2 8 , 2015 Polyester $ 222,835 $ 203,574 Nylon 76,033 71,332 International 54,648 63,031 Segment total assets 353,516 337,937 Other current assets 8,898 4,687 Other PP&E 17,156 13,544 Other non-current assets 4,461 6,303 Investments in unconsolidated affiliates 113,710 113,901 Total assets $ 497,741 $ 476,372 |
Note 21 - Supplemental Cash Flo
Note 21 - Supplemental Cash Flow Information | 6 Months Ended |
Dec. 27, 2015 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | 21. Supplemental Cash Flow Information Cash payments for interest and taxes consist of the following: For the Six Months Ended December 27, 2015 December 28, 2014 Interest, net of capitalized interest of $226 and $53, respectively $ 1,594 $ 1,661 Income taxes, net of refunds 3,574 12,708 Cash payments for taxes shown above consist primarily of income and withholding tax payments made by the Company in both U.S. and foreign jurisdictions. Non-Cash Investing and Financing Activities As of December 27, 2015 and June 28, 2015, $1,344 and $1,726, respectively, were included in accounts payable for unpaid capital expenditures. As of December 28, 2014 and June 29, 2014, $1,118 and $5,023, respectively, were included in accounts payable for unpaid capital expenditures. During August 2015, the Company utilized $1,390 of funds held by a qualified intermediary to purchase certain land and building assets. During the six months ended December 27, 2015, the Company entered into capital leases with an aggregate present value of $4,154. During the six months ended December 27, 2015, Renewables acquired certain land valued at $191 utilizing a promissory note for $135 and cash. During the six months ended December 27, 2015, the Company recorded $1,595 to construction in progress and long-term debt, in connection with the financing arrangement described under the subheading “— Construction Financing |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 27, 2015 | |
Accounting Policies [Abstract] | |
Fiscal Period, Policy [Policy Text Block] | Fiscal Year The Company’s current fiscal quarter ended on December 27, 2015, the last Sunday in December. The Company’s Brazilian, Colombian and Chinese subsidiaries’ fiscal quarter ended on December 31, 2015. There were no significant transactions or events that occurred between the Company’s fiscal quarter end and its subsidiaries’ fiscal quarter end. The three months ended December 27, 2015 and December 28, 2014 each consisted of thirteen fiscal weeks. The six months ended December 27, 2015 and December 28, 2014 each consisted of twenty-six fiscal weeks. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain reclassifications of prior years’ data have been made to conform to the current year presentation. Also see note 3. Net sales, cost of sales, selling, general and administrative (“SG&A”) expenses, and other operating expense (income), net for the three months and six months ended December 28, 2014 have been revised herein, where applicable, to correspond to the presentation for the three and six months ended December 27, 2015, consistent with note 27 in the 2015 Form 10-K. |
Note 3 - Recent Accounting Pr29
Note 3 - Recent Accounting Pronouncements (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
New Accounting Pronouncement, Early Adoption [Table Text Block] | June 28, 2015 As Previously Reported Adjustments D ue to Adoption of ASU 2015-17 June 28, 2015 As Adjusted Deferred income taxes (within total current assets) $ 2,383 $ (2,383 ) $ — Total current assets 215,347 (2,383 ) 212,964 Deferred income taxes (within non-current assets) 1,539 2,383 3,922 Total assets 476,372 — 476,372 Deferred income taxes (within non-current liabilities) 90 — 90 Total liabilities 177,279 — 177,279 |
Note 4 - Receivables, Net (Tabl
Note 4 - Receivables, Net (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Dec ember 27, 2015 June 28, 2015 Customer receivables $ 80,847 $ 85,731 Allowance for uncollectible accounts (2,363 ) (1,596 ) Reserves for yarn quality claims (719 ) (581 ) Net customer receivables 77,765 83,554 Related party receivables 79 75 Other receivables 305 234 Total receivables, net $ 78,149 $ 83,863 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Allowance for Uncollectible Accounts Balance at June 28, 2015 $ (1,596 ) Charged to costs and expenses (1,172 ) Charged to other accounts 159 Deductions 246 Balance at December 27, 2015 $ (2,363 ) |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | Dec ember 27, 2015 June 28, 2015 Raw materials $ 38,819 $ 42,526 Supplies 5,120 5,404 Work in process 5,685 7,546 Finished goods 60,265 56,844 Gross inventories 109,889 112,320 Inventory reserves (914 ) (705 ) Total inventories $ 108,975 $ 111,615 |
Note 6 - Property, Plant and 32
Note 6 - Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Dec ember 27, 2015 June 28, 2015 Land $ 3,055 $ 2,413 Land improvements 12,017 11,709 Buildings and improvements 142,443 141,259 Assets under capital leases 21,525 17,371 Machinery and equipment 527,439 531,225 Computers, software and office equipment 16,871 16,782 Transportation equipment 4,529 4,736 Construction in progress 25,454 6,710 Gross property, plant and equipment 753,333 732,205 Less: accumulated depreciation (592,336 ) (595,094 ) Less: accumulated amortization – capital leases (1,787 ) (889 ) Total property, plant and equipment, net $ 159,210 $ 136,222 |
Schedule of Capital Leased Assets [Table Text Block] | Dec ember 27, 2015 June 28, 2015 Machinery and equipment $ 14,745 $ 12,804 Transportation equipment 5,927 3,714 Building improvements 853 853 Gross assets under capital leases $ 21,525 $ 17,371 |
Other Property, Plant and Equipment Costs and Expenses [Table Text Block] | For the Three Months Ended For the Six Months Ended December 2 7 , 201 5 December 28, 2014 December 2 7 , 201 5 December 28, 2014 Depreciation expense $ 3,756 $ 3,829 $ 7,598 $ 7,691 Repairs and maintenance expenses 4,005 4,290 8,501 8,948 |
Note 7 - Intangible Assets, N33
Note 7 - Intangible Assets, Net (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Dece mber 2 7 , 201 5 June 28 , 201 5 Customer lists $ 23,615 $ 23,615 Non-compete agreements 4,293 4,293 Licenses, trademarks and other 864 837 Total intangible assets, gross 28,772 28,745 Accumulated amortization - customer lists (20,049 ) (19,432 ) Accumulated amortization - non-compete agreements (3,698 ) (3,537 ) Accumulated amortization – licenses, trademarks and other (471 ) (388 ) Total accumulated amortization (24,218 ) (23,357 ) Total intangible assets, net $ 4,554 $ 5,388 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | For the Three Months Ended For the Six Months Ended December 2 7 , 201 5 December 2 8 , 201 4 December 2 7 , 201 5 December 2 8 , 201 4 Total amortization expense $ 429 $ 519 $ 861 $ 1,037 |
Note 8 - Accrued Expenses (Tabl
Note 8 - Accrued Expenses (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | December 27 , 201 5 June 28 , 201 5 Payroll and fringe benefits $ 6,038 $ 11,258 Utilities 1,986 2,823 Property taxes 1,563 790 Contingent consideration 394 634 Other 1,273 1,135 Total accrued expenses $ 11,254 $ 16,640 |
Note 9 - Long-term Debt (Tables
Note 9 - Long-term Debt (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | Principal Amounts as of Scheduled Maturity Date Weighted Average Interest Rate as of December 2 7 , 201 5 (1) Dece mber 2 7 , 201 5 June 2 8 , 201 5 ABL Revolver March 2020 2.3% $ 16,200 $ 5,000 ABL Term Loan March 2020 2.2% 95,000 82,125 Renewables’ promissory note September 2020 3.0% 135 — Renewables’ term loan August 2022 3.5% 4,000 — Term loan from unconsolidated affiliate August 2016 3.0% 1,250 1,250 Capital lease obligations (2) (3) 17,917 15,735 Construction financing (4) (4) 2,385 — Total debt 136,887 104,110 Current portion of capital lease obligations (4,274 ) (3,385 ) Current portion of long-term debt (10,776 ) (9,000 ) Total long-term debt $ 121,837 $ 91,725 |
Schedule of Maturities of Long-term Debt [Table Text Block] | Scheduled Maturities on a Fiscal Year Basis 2016 201 7 201 8 20 19 202 0 Thereafter ABL Revolver $ — $ — $ — $ — $ 16,200 $ — ABL Term Loan 4,750 9,500 9,500 9,500 61,750 — Renewables’ promissory note — 25 26 27 28 29 Renewables’ term loan — — — — 1,111 2,889 Term loan from unconsolidated affiliate — 1,250 — — — — Capital lease obligations 2,120 4,261 4,128 4,058 2,542 808 Total (1) $ 6,870 $ 15,036 $ 13,654 $ 13,585 $ 81,631 $ 3,726 |
Note 10 - Other Long-term Lia36
Note 10 - Other Long-term Liabilities (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Other Noncurrent Liabilities [Table Text Block] | Dec ember 27, 2015 June 28 , 201 5 Uncertain tax positions $ 3,737 $ 3,980 Supplemental post-employment plan 3,677 3,690 Contingent consideration 1,180 1,573 Deferred rent 800 — Interest rate swap 197 280 Other 1,276 1,217 Total other long-term liabilities $ 10,867 $ 10,740 |
Note 11 - Income Taxes (Tables)
Note 11 - Income Taxes (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Income Tax Provisions [Table Text Block] | For the Three Months Ended For the Six Months Ended December 27, 2015 December 28, 2014 December 27, 2015 December 28, 2014 Provision for income taxes $ 2,088 $ 3,193 $ 6,028 $ 7,354 Effective tax rate 25.2 % 25.9 % 30.1 % 31.8 % |
Summary of Valuation Allowance [Table Text Block] | December 27, 2015 June 28, 2015 Investment in a former domestic unconsolidated affiliate $ (6,399 ) $ (6,503 ) Equity-method investment in Parkdale America, LLC (2,666 ) (3,261 ) Foreign tax credits — (1,680 ) Book versus tax basis difference in Renewables (1,210 ) (1,359 ) Net Operating Losses related to Renewables (3,313 ) (2,803 ) Total deferred tax valuation allowance $ (13,588 ) $ (15,606 ) |
Note 12 - Shareholders' Equity
Note 12 - Shareholders' Equity (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Share Repurchases [Table Text Block] | Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs Average Price Paid per Share Maximum Approximate Dollar Value that May Yet Be Repurchased Under Publicly Announced Plans or Programs Fiscal year 2013 1,068 $ 18.08 Fiscal year 2014 1,524 $ 23.96 Fiscal year 2015 349 $ 29.72 Fiscal year 2016 (through December 27, 2015) 206 $ 30.13 Total 3,147 $ 23.01 $ 27,603 |
Note 13 - Stock-based Compens39
Note 13 - Stock-based Compensation (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Number of Securities Remaining Available for Future Issuance [Table Text Block] | Authorized under the 2013 Plan 1,000 Plus: Awards expired, forfeited or otherwise terminated unexercised from the 2008 LTIP or 2013 Plan 22 Less: Service-condition options granted (237 ) Less: RSUs granted to non-employee directors (63 ) Available for issuance under the 2013 Plan 722 |
Note 14 - Fair Value of Finan40
Note 14 - Fair Value of Financial Instruments and Non-financial Assets and Liabilities (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | Contingent consideration as of June 28, 2015 $ 2,207 Changes in fair value (157 ) Payments (476 ) Contingent consideration as of December 27, 2015 $ 1,574 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | As of December 27, 2015 Notional Amount USD Equivalent Balance Sheet Location Fair Value Hierarchy Fair Value Interest rate swap USD $ 50,000 $ 50,000 Other long-term liabilities Level 2 $ (197 ) Contingent consideration — — Accrued expenses and other long-term liabilities Level 3 $ (1,574 ) As of June 28, 2015 Notional Amount USD Equivalent Balance Sheet Location Fair Value Hierarchy Fair Value Interest rate swap USD $ 50,000 $ 50,000 Other long-term liabilities Level 2 $ (280 ) Contingent consideration — — Accrued expenses and other long-term liabilities Level 3 $ (2,207 ) |
Note 15 - Accumulated Other C41
Note 15 - Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign Currency Translation Adjustments Unrealized (Loss) Gain On Interest Rate Swap Accumulated Other Comprehensive Loss Balance at June 28, 2015 $ (26,752 ) $ (147 ) $ (26,899 ) Other comprehensive (loss) income, net of tax (11,019 ) 38 (10,981 ) Balance at December 27, 2015 $ (37,771 ) $ (109 ) $ (37,880 ) |
Comprehensive Income (Loss) [Table Text Block] | For the Three Months Ended For the Six Months Ended December 27, 2015 December 28, 2014 December 27, 2015 December 28, 2014 Other comprehensive income (loss): Foreign currency translation adjustments $ 515 $ (5,483 ) $ (10,523 ) $ (12,524 ) Foreign currency translation adjustments for an unconsolidated affiliate (97 ) (371 ) (496 ) (371 ) Reclassification adjustment on interest rate swap 19 89 38 193 Other comprehensive income (loss), net $ 437 $ (5,765 ) $ (10,981 ) $ (12,702 ) |
Note 16 - Computation of Earn42
Note 16 - Computation of Earnings Per Share (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Three Months Ended For the Six Months Ended December 2 7 , 201 5 December 28, 2014 December 2 7 , 201 5 December 2 8 , 201 4 Net income attributable to Unifi, Inc. $ 6,464 $ 9,418 $ 14,489 $ 16,495 Basic weighted average shares 17,823 18,180 17,872 18,235 Net potential common share equivalents – stock options and RSUs 634 602 631 600 Diluted weighted average shares 18,457 18,782 18,503 18,835 Excluded from diluted weighted average shares: Anti-dilutive common share equivalents 143 177 143 177 Unvested market condition stock options — 10 — 10 |
Note 17 - Investments in Unco43
Note 17 - Investments in Unconsolidated Affiliates and Variable Interest Entities (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Income Statement Information [Member] | |
Notes Tables | |
Equity Method Investments [Table Text Block] | For the Three Months Ended December 27, 2015 PAL Other Total Net sales $ 183,426 $ 7,264 $ 190,690 Gross profit 2,917 1,852 4,769 (Loss) income from operations (1,437 ) 1,389 (48 ) Net (loss) income (1,170 ) 1,420 250 Depreciation and amortization 11,169 37 11,206 Cash received by PAL under cotton rebate program 5,676 — 5,676 Earnings recognized by PAL for cotton rebate program 3,574 — 3,574 Distributions received — 1,000 1,000 For the Three Months Ended December 28, 2014 PAL Other Total Net sales $ 192,243 $ 8,955 $ 201,198 Gross profit 12,063 1,007 13,070 Income from operations 6,909 655 7,564 Net income 9,039 685 9,724 Depreciation and amortization 8,161 25 8,186 Cash received by PAL under cotton rebate program 4,153 — 4,153 Earnings recognized by PAL for cotton rebate program 3,854 — 3,854 Distributions received — — — For the Six Months Ended December 27, 2015 PAL Other Total Net sales $ 407,491 $ 16,613 $ 424,104 Gross profit 10,304 4,182 14,486 Income from operations 2,124 3,238 5,362 Net income 4,559 3,278 7,837 Depreciation and amortization 20,863 74 20,937 Cash received by PAL under cotton rebate program 8,860 — 8,860 Earnings recognized by PAL for cotton rebate program 7,928 — 7,928 Distributions received 947 2,000 2,947 For the Six Months Ended December 28, 2014 PAL Other Total Net sales $ 398,479 $ 16,315 $ 414,794 Gross profit 23,032 1,662 24,694 Income from operations 13,723 948 14,671 Net income 19,003 1,024 20,027 Depreciation and amortization 15,369 50 15,419 Cash received by PAL under cotton rebate program 8,454 — 8,454 Earnings recognized by PAL for cotton rebate program 8,755 — 8,755 Distributions received — — — |
Balance Sheet Information [Member] | |
Notes Tables | |
Equity Method Investments [Table Text Block] | As of December 27, 2015 PAL Other Total Current assets $ 218,948 $ 10,070 $ 229,018 Noncurrent assets 211,053 1,110 212,163 Current liabilities 43,751 3,937 47,688 Noncurrent liabilities 8,708 — 8,708 Shareholders’ equity and capital accounts 377,542 7,243 384,785 The Company’s portion of undistributed earnings 40,741 1,335 42,076 As of June 28, 2015 PAL Other Total Current assets $ 250,699 $ 9,273 $ 259,972 Noncurrent assets 216,708 3,676 220,384 Current liabilities 61,243 4,985 66,228 Noncurrent liabilities 28,935 — 28,935 Shareholders’ equity and capital accounts 377,229 7,964 385,193 |
Equity Method Investment Reconciliation of Underlying Equity in Net Assets to Investment Carrying Amount [Table Text Block] | Underlying equity as of December 27, 2015 $ 128,364 Initial excess capital contributions 53,363 Impairment charge recorded by the Company in 2007 (74,106 ) Anti-trust lawsuit against PAL in which the Company did not participate 2,652 Cotton rebate program adjustments (214 ) Investment as of December 27, 2015 $ 110,059 |
Schedule of Unconsolidated Affiliate Transactions [Table Text Block] | For the Six Months Ended Dec ember 2 7, 201 5 Dec ember 2 8 , 2014 UNF $ 1,356 $ 1,817 UNFA 13,441 14,274 Total $ 14,797 $ 16,091 |
Note 19 - Related Party Trans44
Note 19 - Related Party Transactions (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Related Party Receivables and Payables [Table Text Block] | December 27, 2015 June 28, 2015 Cupron, Inc. $ 71 $ 72 Salem Global Logistics, Inc. 8 3 Total related party receivables (included within receivables, net) $ 79 $ 75 December 27, 2015 June 28, 2015 Cupron, Inc. $ 520 $ 506 Salem Leasing Corporation 367 277 Total related party payables (included within accounts payable) $ 887 $ 783 |
Schedule of Related Party Transactions [Table Text Block] | For the Three Months Ended Affiliated Entity Transaction Type December 27, 2015 December 28, 2014 Salem Leasing Corporation Transportation equipment costs $ 931 $ 947 Salem Global Logistics, Inc. Freight service income 81 63 Cupron, Inc. Sales 147 208 Cupron, Inc. Yarn purchases 8 210 For the Six Months Ended Affiliated Entity Transaction Type December 27, 2015 December 28, 2014 Salem Leasing Corporation Transportation equipment costs $ 1,876 $ 1,897 Salem Global Logistics, Inc. Freight service income 143 132 Cupron, Inc. Sales 252 549 Cupron, Inc. Yarn Purchases 8 210 Invemed Associates LLC Brokerage services 4 2 |
Note 20 - Business Segment In45
Note 20 - Business Segment Information (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | For the Three Months Ended Dec ember 27, 2015 Polyester Nylon International All Other Total Net sales $ 89,814 $ 40,367 $ 24,812 $ 1,343 $ 156,336 Cost of sales 78,001 34,653 20,431 1,438 134,523 Gross profit (loss) 11,813 5,714 4,381 (95 ) 21,813 Segment depreciation expense 2,736 515 192 162 3,605 Segment Profit $ 14,549 $ 6,229 $ 4,573 $ 67 $ 25,418 For the Three Months Ended Dece mber 28, 2014 Polyester Nylon International All Other Total Net sales $ 90,431 $ 39,212 $ 33,506 $ 1,273 $ 164,422 Cost of sales 78,099 33,584 28,429 1,381 141,493 Gross profit (loss) 12,332 5,628 5,077 (108 ) 22,929 Segment depreciation expense 2,442 470 658 109 3,679 Segment Profit $ 14,774 $ 6,098 $ 5,735 $ 1 $ 26,608 For the Six Months Ended Dec ember 27, 2015 Polyester Nylon International All Other Total Net sales $ 180,382 $ 81,043 $ 54,183 $ 2,893 $ 318,501 Cost of sales 159,280 69,147 44,211 3,066 275,704 Gross profit (loss) 21,102 11,896 9,972 (173 ) 42,797 Segment depreciation expense 5,547 1,033 413 314 7,307 Segment Profit $ 26,649 $ 12,929 $ 10,385 $ 141 $ 50,104 For the Six Months Ended Dece mber 28, 2014 Polyester Nylon International All Other Total Net sales $ 183,409 $ 83,922 $ 70,000 $ 2,652 $ 339,983 Cost of sales 160,801 73,145 59,610 3,048 296,604 Gross profit (loss) 22,608 10,777 10,390 (396 ) 43,379 Segment depreciation expense 4,856 932 1,385 219 7,392 Segment Profit (Loss) $ 27,464 $ 11,709 $ 11,775 $ (177 ) $ 50,771 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | For the Three Months Ended Dec ember 27, 2015 Dec ember 28, 2014 Polyester $ 11,813 $ 12,332 Nylon 5,714 5,628 International 4,381 5,077 All Other category (95 ) (108 ) Segment gross profit 21,813 22,929 SG&A expenses 12,419 12,971 Provision for bad debts 559 62 Other operating expense (income), net 206 (38 ) Operating income 8,629 9,934 Interest income (166 ) (309 ) Interest expense 816 1,209 Equity in earnings of unconsolidated affiliates (303 ) (3,281 ) Income before income taxes $ 8,282 $ 12,315 For the Six Months Ended Dec ember 27, 2015 Dec ember 28, 2014 Polyester $ 21,102 $ 22,608 Nylon 11,896 10,777 International 9,972 10,390 All Other category (173 ) (396 ) Segment gross profit 42,797 43,379 SG&A expenses 23,249 24,620 Provision for bad debts 1,172 646 Other operating expense (income), net 60 562 Operating income 18,316 17,551 Interest income (329 ) (626 ) Interest expense 1,800 2,028 Equity in earnings of unconsolidated affiliates (3,163 ) (7,002 ) Income before income taxes $ 20,008 $ 23,151 |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] | For the Six Months Ended December 27, 2015 December 28, 2014 Polyester $ 23,437 $ 12,026 Nylon 996 475 International 891 735 All Other category 1,716 43 Segment capital expenditures 27,040 13,279 Other capital expenditures 379 163 Capital expenditures $ 27,419 $ 13,442 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | December 2 7 , 201 5 June 2 8 , 2015 Polyester $ 222,835 $ 203,574 Nylon 76,033 71,332 International 54,648 63,031 Segment total assets 353,516 337,937 Other current assets 8,898 4,687 Other PP&E 17,156 13,544 Other non-current assets 4,461 6,303 Investments in unconsolidated affiliates 113,710 113,901 Total assets $ 497,741 $ 476,372 |
Note 21 - Supplemental Cash F46
Note 21 - Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | For the Six Months Ended December 27, 2015 December 28, 2014 Interest, net of capitalized interest of $226 and $53, respectively $ 1,594 $ 1,661 Income taxes, net of refunds 3,574 12,708 |
Note 1 - Background (Details Te
Note 1 - Background (Details Textual) | Dec. 27, 2015 | Jun. 30, 1997 |
Repreve Renewables LLC [Member] | ||
Equity Method Investment, Ownership Percentage | 60.00% | |
Parkdale America LLC [Member] | ||
Equity Method Investment, Ownership Percentage | 34.00% | 34.00% |
Number of Manufacturing Operations | 10 | |
Number of Countries in which Entity Operates | 4 |
Note 3 - Reclassification of De
Note 3 - Reclassification of Deferred Income Taxes (Details) $ in Thousands | Jun. 28, 2015USD ($) |
Scenario, Previously Reported [Member] | |
Deferred income taxes (within total current assets) | $ 2,383 |
Total current assets | 215,347 |
Deferred income taxes (within non-current assets) | 1,539 |
Consolidated Assets | 476,372 |
Deferred income taxes (within non-current liabilities) | 90 |
Total liabilities | 177,279 |
Restatement Adjustment [Member] | |
Deferred income taxes (within total current assets) | (2,383) |
Total current assets | (2,383) |
Deferred income taxes (within non-current assets) | $ 2,383 |
Consolidated Assets | |
Deferred income taxes (within non-current liabilities) | |
Total liabilities | |
Deferred income taxes (within total current assets) | |
Total current assets | $ 212,964 |
Deferred income taxes (within non-current assets) | 3,922 |
Consolidated Assets | 476,372 |
Deferred income taxes (within non-current liabilities) | 90 |
Total liabilities | $ 177,279 |
Note 4 - Receivables (Details)
Note 4 - Receivables (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Customer receivables | $ 80,847 | $ 85,731 |
Allowance for uncollectible accounts | (2,363) | (1,596) |
Reserves for yarn quality claims | (719) | (581) |
Net customer receivables | 77,765 | 83,554 |
Related party receivables | 79 | 75 |
Other receivables | 305 | 234 |
Total receivables, net | $ 78,149 | $ 83,863 |
Note 4 - Allowance for Uncollec
Note 4 - Allowance for Uncollectible Accounts (Details) - Allowance for Doubtful Accounts [Member] $ in Thousands | 6 Months Ended |
Dec. 27, 2015USD ($) | |
Balance at June 28, 2015 | $ (1,596) |
Charged to costs and expenses | (1,172) |
Charged to other accounts | 159 |
Deductions | 246 |
Balance at December 27, 2015 | $ (2,363) |
Note 5 - Inventories (Details T
Note 5 - Inventories (Details Textual) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Foreign Inventory Valued at Average Cost | $ 25,210 | $ 28,426 |
Note 5 - Inventories Components
Note 5 - Inventories Components (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Raw materials | $ 38,819 | $ 42,526 |
Supplies | 5,120 | 5,404 |
Work in process | 5,685 | 7,546 |
Finished goods | 60,265 | 56,844 |
Gross inventories | 109,889 | 112,320 |
Inventory reserves | (914) | (705) |
Total inventories | $ 108,975 | $ 111,615 |
Note 6 - Property, Plant and 53
Note 6 - Property, Plant and Equipment, Net (Details Textual) $ in Thousands | 6 Months Ended |
Dec. 27, 2015USD ($) | |
Capital Lease Obligations Incurred | $ 4,154 |
Note 6 - Property, Plant and 54
Note 6 - Property, Plant and Equipment Components (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Land [Member] | ||
Gross property, plant and equipment | $ 3,055 | $ 2,413 |
Land Improvements [Member] | ||
Gross property, plant and equipment | 12,017 | 11,709 |
Building and Building Improvements [Member] | ||
Gross property, plant and equipment | 142,443 | 141,259 |
Assets Held under Capital Leases [Member] | ||
Gross property, plant and equipment | 21,525 | 17,371 |
Machinery and Equipment [Member] | ||
Gross property, plant and equipment | 527,439 | 531,225 |
Computers, Software and Office Equipment [Member] | ||
Gross property, plant and equipment | 16,871 | 16,782 |
Transportation Equipment [Member] | ||
Gross property, plant and equipment | 4,529 | 4,736 |
Asset under Construction [Member] | ||
Gross property, plant and equipment | 25,454 | 6,710 |
Gross property, plant and equipment | 753,333 | 732,205 |
Less: accumulated depreciation | (592,336) | (595,094) |
Less: accumulated amortization – capital leases | (1,787) | (889) |
Total property, plant and equipment, net | $ 159,210 | $ 136,222 |
Note 6 - Capital Leased Assets
Note 6 - Capital Leased Assets (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Machinery and Equipment [Member] | ||
Gross assets under capital leases | $ 14,745 | $ 12,804 |
Transportation Equipment [Member] | ||
Gross assets under capital leases | 5,927 | 3,714 |
Building Improvements [Member] | ||
Gross assets under capital leases | 853 | 853 |
Gross assets under capital leases | $ 21,525 | $ 17,371 |
Note 6 - Other Property, Plant
Note 6 - Other Property, Plant and Equipment Costs and Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Depreciation expense | $ 3,756 | $ 3,829 | $ 7,598 | $ 7,691 |
Repairs and maintenance expenses | $ 4,005 | $ 4,290 | $ 8,501 | $ 8,948 |
Note 7 - Intangible Assets Comp
Note 7 - Intangible Assets Components (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Customer Lists [Member] | ||
Intangible assets, gross | $ 23,615 | $ 23,615 |
Intangible assets, accumulated amortization | (20,049) | (19,432) |
Noncompete Agreements [Member] | ||
Intangible assets, gross | 4,293 | 4,293 |
Intangible assets, accumulated amortization | (3,698) | (3,537) |
Licenses Trademarks and Other [Member] | ||
Intangible assets, gross | 864 | 837 |
Intangible assets, accumulated amortization | (471) | (388) |
Intangible assets, gross | 28,772 | 28,745 |
Intangible assets, accumulated amortization | (24,218) | (23,357) |
Total intangible assets, net | $ 4,554 | $ 5,388 |
Note 7 - Amortization Expense f
Note 7 - Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Amortization expense | $ 429 | $ 519 | $ 861 | $ 1,037 |
Note 8 - Accrued Expenses Compo
Note 8 - Accrued Expenses Components (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Payroll and fringe benefits | $ 6,038 | $ 11,258 |
Utilities | 1,986 | 2,823 |
Property taxes | 1,563 | 790 |
Contingent consideration | 394 | 634 |
Other | 1,273 | 1,135 |
Total accrued expenses | $ 11,254 | $ 16,640 |
Note 9 - Long-term Debt (Detail
Note 9 - Long-term Debt (Details Textual) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||
Dec. 27, 2015USD ($) | Oct. 31, 2015USD ($) | Sep. 18, 2015USD ($)a | Dec. 27, 2015USD ($) | Dec. 27, 2015USD ($) | Dec. 27, 2015USD ($) | Dec. 28, 2014USD ($) | Nov. 19, 2015USD ($) | Nov. 18, 2015 | Jun. 28, 2015USD ($) | Mar. 26, 2015USD ($) | May. 24, 2012USD ($) | ||
Renewables Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 3.25% | ||||||||||||
Renewables Term Loan [Member] | |||||||||||||
Debt Instrument, Term | 5 years | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000 | ||||||||||||
Long-term Debt | $ 4,000 | $ 4,000 | $ 4,000 | $ 4,000 | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.00% | 3.50% | 3.50% | 3.50% | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 4,000 | ||||||||||||
Long-term Line of Credit | $ 4,000 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.00% | 3.50% | 3.50% | 3.50% | ||||||||
ABL Facility [Member] | Revolving Credit Facility [Member] | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000 | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 100,000 | ||||||||||||
ABL Facility [Member] | |||||||||||||
Debt Agreement Maximum Borrowing Capacity | 200,000 | ||||||||||||
Term Loan Maximum Borrowing Capacity | $ 100,000 | ||||||||||||
Foreign Capital Stock, Maximum Voting Stock of First Tier Foreign Subsidiaries | 65.00% | ||||||||||||
Minimum Monthly Fixed Charge Coverage Ratio Covenant | 1.05 | ||||||||||||
Consolidated Leverage Ratio | 2.8 | 2.8 | 2.8 | 2.8 | |||||||||
Original ABL Facility [Member] | Revolving Credit Facility [Member] | |||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000 | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 100,000 | ||||||||||||
Original ABL Facility [Member] | |||||||||||||
Debt Instrument, Face Amount | $ 90,000 | ||||||||||||
ABL Revolver [Member] | Maximum [Member] | Base Rate [Member] | |||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 65,125 | $ 65,125 | $ 65,125 | $ 65,125 | |||||||||
ABL Revolver [Member] | Revolving Credit Facility [Member] | Trigger Level [Member] | |||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 24,375 | $ 24,375 | $ 24,375 | $ 24,375 | |||||||||
ABL Revolver [Member] | |||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | [1] | 2.30% | 2.30% | 2.30% | 2.30% | ||||||||
Long-term Debt | $ 16,200 | $ 16,200 | $ 16,200 | $ 16,200 | $ 5,000 | ||||||||
Second Amendment [Member] | |||||||||||||
Term Loan Maximum Borrowing Capacity | $ 95,000 | ||||||||||||
Real Estate Valuation, Term Loan Collateral Calculating Percentage | 75.00% | 60.00% | |||||||||||
Quarterly Amortization Payments [Member] | |||||||||||||
Debt Instrument, Periodic Payment, Principal | 2,375 | ||||||||||||
Renewables Promissory Note [Member] | |||||||||||||
Long-term Debt | $ 135 | $ 135 | $ 135 | $ 135 | $ 135 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1] | 3.00% | 3.00% | 3.00% | 3.00% | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | [1] | 3.00% | 3.00% | 3.00% | 3.00% | ||||||||
Interest Rate Swap [Member] | |||||||||||||
Derivative, Notional Amount | $ 50,000 | $ 50,000 | $ 50,000 | $ 50,000 | |||||||||
Capital Lease Obligations [Member] | Minimum [Member] | |||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 2.30% | 2.30% | 2.30% | 2.30% | |||||||||
Capital Lease Obligations [Member] | Maximum [Member] | |||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.60% | 4.60% | 4.60% | 4.60% | |||||||||
Capital Lease Obligations Entered into During Current Fiscal Year [Member] | Minimum [Member] | |||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.40% | 3.40% | 3.40% | 3.40% | |||||||||
Capital Lease Obligations Entered into During Current Fiscal Year [Member] | Maximum [Member] | |||||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 3.80% | 3.80% | 3.80% | 3.80% | |||||||||
Construction Loans [Member] | During the Construction Period [Member] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | 3.50% | 3.50% | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | 3.50% | 3.50% | |||||||||
Construction Loans [Member] | After the Construction Period [Member] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.20% | 3.20% | 3.20% | 3.20% | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.20% | 3.20% | 3.20% | 3.20% | |||||||||
Construction Loans [Member] | |||||||||||||
Debt Instrument, Monthly Payments, Number | 60 | ||||||||||||
Deferred Finance Costs, Gross | $ 210 | $ 210 | $ 210 | $ 210 | |||||||||
Standby Letters of Credit [Member] | |||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 210 | 210 | 210 | 210 | |||||||||
Seven Springs North Carolina [Member] | |||||||||||||
Area of Land | a | 37 | ||||||||||||
Value of Land Purchased | $ 191 | ||||||||||||
Construction in Progress [Member] | |||||||||||||
Construction in Progress, Paid by Third Party Lender | 1,595 | ||||||||||||
Capital Lease Obligations Incurred | 4,154 | ||||||||||||
Long-term Construction Loan | $ 2,385 | 2,385 | $ 2,385 | 2,385 | |||||||||
Proceeds from Construction Loans Payable | $ 790 | $ 790 | |||||||||||
[1] | The weighted average interest rate as of September 27, 2015 for the ABL Term Loan includes the effects of the interest rate swap with a notional balance of $50,000. |
Note 9 - Long-term Debt Compone
Note 9 - Long-term Debt Components (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 | |
ABL Revolver [Member] | |||
Debt Instrument, Interest Rate, Effective Percentage | [1] | 2.30% | |
Long-term Debt | $ 16,200 | $ 5,000 | |
ABLTermLoanMember | |||
Long-term Debt | $ 95,000 | $ 82,125 | |
ABL Term Loan | [1] | 2.20% | |
Renewables Promissory Note [Member] | |||
Long-term Debt | $ 135 | ||
Debt Instrument, Interest Rate, Stated Percentage | [1] | 3.00% | |
Renewables Term Loan [Member] | |||
Long-term Debt | $ 4,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | ||
Related Party Term Loan [Member] | |||
Long-term Debt | $ 1,250 | $ 1,250 | |
Debt Instrument, Interest Rate, Stated Percentage | [1] | 3.00% | |
Construction Financing [Member] | |||
Long-term Debt | $ 2,385 | ||
Capital lease obligations | 17,917 | $ 15,735 | |
Total debt | 136,887 | 104,110 | |
Current portion of capital lease obligations | (4,274) | (3,385) | |
Current portion of long-term debt | (10,776) | (9,000) | |
Total long-term debt | $ 121,837 | $ 91,725 | |
[1] | The weighted average interest rate as of September 27, 2015 for the ABL Term Loan includes the effects of the interest rate swap with a notional balance of $50,000. |
Note 9 - Scheduled Maturities o
Note 9 - Scheduled Maturities of Outstanding Debt Obligations (Details) $ in Thousands | Dec. 27, 2015USD ($) | |
ABL Revolver [Member] | ||
2,016 | ||
2,017 | ||
2,018 | ||
2,019 | ||
2,020 | $ 16,200 | |
Thereafter | ||
ABLTermLoanMember | ||
2,016 | $ 4,750 | |
2,017 | 9,500 | |
2,018 | 9,500 | |
2,019 | 9,500 | |
2,020 | $ 61,750 | |
Thereafter | ||
Renewables Promissory Note [Member] | ||
2,016 | ||
2,017 | $ 25 | |
2,018 | 26 | |
2,019 | 27 | |
2,020 | 28 | |
Thereafter | $ 29 | |
Renewables Term Loan [Member] | ||
2,016 | ||
2,017 | ||
2,018 | ||
2,019 | ||
2,020 | $ 1,111 | |
Thereafter | $ 2,889 | |
Related Party Term Loan [Member] | ||
2,016 | ||
2,017 | $ 1,250 | |
2,018 | ||
2,019 | ||
2,020 | ||
Thereafter | ||
Capital Lease Obligations [Member] | ||
2,016 | $ 2,120 | |
2,017 | 4,261 | |
2,018 | 4,128 | |
2,019 | 4,058 | |
2,020 | 2,542 | |
Thereafter | 808 | |
2,016 | 6,870 | [1] |
2,017 | 15,036 | [1] |
2,018 | 13,654 | [1] |
2,019 | 13,585 | [1] |
2,020 | 81,631 | [1] |
Thereafter | $ 3,726 | [1] |
[1] | Total reported here excludes $2,385 for construction financing, described above. |
Note 10 - Other Long-term Lia63
Note 10 - Other Long-term Liabilities Components (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Uncertain tax positions | $ 3,737 | $ 3,980 |
Supplemental post-employment plan | 3,677 | 3,690 |
Contingent consideration | 1,180 | $ 1,573 |
Deferred rent | 800 | |
Interest rate swap | 197 | $ 280 |
Other | 1,276 | 1,217 |
Total other long-term liabilities | $ 10,867 | $ 10,740 |
Note 11 - Income Tax Provisions
Note 11 - Income Tax Provisions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Provision for income taxes | $ 2,088 | $ 3,193 | $ 6,028 | $ 7,354 |
Effective tax rate | 25.20% | 25.90% | 30.10% | 31.80% |
Note 11 - Components of Deferre
Note 11 - Components of Deferred Tax Valuation Allowance (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Investment in Former Domestic Unconsolidated Affiliate [Member] | ||
Deferred tax valuation allowance | $ (6,399) | $ (6,503) |
Equity method Investment in Parkdale America LLC [Member] | ||
Deferred tax valuation allowance | $ (2,666) | (3,261) |
Foreign Tax Credits [Member] | ||
Deferred tax valuation allowance | (1,680) | |
Book Tax Basis Difference in Renewables [Member] | ||
Deferred tax valuation allowance | $ (1,210) | (1,359) |
NOLs Related to Renewables [Member] | ||
Deferred tax valuation allowance | (3,313) | (2,803) |
Deferred tax valuation allowance | $ (13,588) | $ (15,606) |
Note 12 - Shareholders' Equit66
Note 12 - Shareholders' Equity (Details Textual) | 30 Months Ended |
Dec. 27, 2015USD ($) | |
Payments of Dividends | $ 0 |
Note 12 - Repurchases and Retir
Note 12 - Repurchases and Retirements of Common Stock (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | 42 Months Ended | ||
Dec. 27, 2015 | Jun. 28, 2015 | Jun. 29, 2014 | Jun. 30, 2013 | Dec. 27, 2015 | |
Shares repurchased (in shares) | 206 | 349 | 1,524 | 1,068 | 3,147 |
Average price paid per share (in dollars per share) | $ 30.13 | $ 29.72 | $ 23.96 | $ 18.08 | $ 23.01 |
Maximum approximate dollar value | $ 27,603 |
Note 13 - Stock-based Compens68
Note 13 - Stock-based Compensation (Details Textual) - $ / shares shares in Thousands | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Oct. 23, 2013 | |
The 2013 Incentive Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,000 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 21 | 17 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 29.12 | $ 28.58 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 82 | 150 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 32.36 | $ 27.38 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 20.27 | $ 17.31 |
Note 13 - Number of Securities
Note 13 - Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Details) shares in Thousands | 6 Months Ended | 26 Months Ended |
Dec. 27, 2015shares | Dec. 27, 2015shares | |
The 2013 Incentive Compensation Plan [Member] | ||
Available for issuance under the 2013 Plan (in shares) | 722 | 722 |
Awards Expired, Forfeited or Otherwise Terminated Unexercised From the 2008 LTIP or 2013 Plan [Member] | ||
Plus: Awards expired, forfeited or otherwise terminated unexercised from the 2008 LTIP or 2013 Plan (in shares) | 22 | |
Stock Options Subject to Service Conditions [Member] | ||
Less: Service-condition options granted (in shares) | (237) | |
RSUs Issued to Non-Employee Directors [Member] | ||
Less: RSUs granted to non-employee directors (in shares) | (63) | |
Less: Service-condition options granted (in shares) | (82) |
Note 14 - Fair Value of Finan70
Note 14 - Fair Value of Financial Instruments and Non-financial Assets and Liabilities (Details Textual) - USD ($) $ in Thousands | May. 18, 2012 | Dec. 27, 2015 | May. 31, 2013 |
Forward Contracts [Member] | |||
Number of Foreign Currency Derivatives Held | 0 | ||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||
Derivative, Notional Amount | $ 50,000 | $ 50,000 | $ 85,000 |
Interest Rate Swap [Member] | |||
Derivative, Notional Amount | 50,000 | ||
Maximum Length of Time Hedged in Interest Rate Cash Flow Hedge | 5 years | ||
Quarterly Decrease in Notional Amount of Interest Rate Cash Flow Hedge Derivatives | $ 5,000 | ||
Derivative, Swaption Interest Rate | 1.06% |
Note 14 - Changes in Fair Value
Note 14 - Changes in Fair Value of Contingent Consideration (Details) $ in Thousands | 6 Months Ended |
Dec. 27, 2015USD ($) | |
Dilion [Member] | Changes Measurement [Member] | |
Changes in fair value | $ (157) |
Dilion [Member] | |
Contingent consideration as of June 28, 2015 | 2,207 |
Payments | (476) |
Contingent consideration as of December 27, 2015 | 1,574 |
Contingent consideration as of June 28, 2015 | 1,573 |
Contingent consideration as of December 27, 2015 | $ 1,180 |
Note 14 - Fair Values of Deriva
Note 14 - Fair Values of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Other Noncurrent Liabilities [Member] | Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Derivative, Notional Amount | $ 50,000 | $ 50,000 |
Interest rate swap | (197) | (280) |
Accrued Expenses and Other Long-term Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Contingent consideration | (1,574) | (2,207) |
Contingent consideration | $ (1,180) | $ (1,573) |
Note 15 - Accumulated Other C73
Note 15 - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 27, 2015 | Dec. 27, 2015 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Balance at June 28, 2015 | $ (26,752) | |
Other comprehensive (loss) income, net of tax | (11,019) | |
Balance at December 27, 2015 | $ (37,771) | (37,771) |
Interest Rate Swap [Member] | ||
Balance at June 28, 2015 | (147) | |
Other comprehensive (loss) income, net of tax | 38 | |
Balance at December 27, 2015 | (109) | (109) |
Balance at June 28, 2015 | (26,899) | |
Other comprehensive (loss) income, net of tax | 437 | (10,981) |
Balance at December 27, 2015 | $ (37,880) | $ (37,880) |
Note 15 - After-tax Effects of
Note 15 - After-tax Effects of Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Parkdale America LLC [Member] | ||||
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | $ (97) | $ (371) | $ (496) | $ (371) |
Interest Rate Swap [Member] | ||||
Other comprehensive income (loss): | ||||
Reclassification adjustment on interest rate swap | 19 | 89 | 38 | 193 |
Foreign currency translation adjustments | 515 | (5,483) | (10,523) | (12,524) |
Other comprehensive (loss) income, net of tax | $ 437 | $ (5,765) | $ (10,981) | $ (12,702) |
Note 16 - Computation of Basic
Note 16 - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Net income attributable to Unifi, Inc. | $ 6,464 | $ 9,418 | $ 14,489 | $ 16,495 |
Basic weighted average shares (in shares) | 17,823 | 18,180 | 17,872 | 18,235 |
Net potential common share equivalents – stock options and RSUs (in shares) | 634 | 602 | 631 | 600 |
Diluted weighted average shares (in shares) | 18,457 | 18,782 | 18,503 | 18,835 |
Excluded from diluted weighted average shares: | ||||
Anti-dilutive common share equivalents (in shares) | 143 | 177 | 143 | 177 |
Unvested market condition stock options (in shares) | 10 | 10 |
Note 17 - Investments in Unco76
Note 17 - Investments in Unconsolidated Affiliates and Variable Interest Entities (Details Textual) | Feb. 27, 2015USD ($) | Dec. 27, 2015USD ($) | Sep. 27, 2015 | Jun. 28, 2015USD ($) | Dec. 28, 2014USD ($) | Jun. 30, 1997 |
EAP Program [Member] | Parkdale America LLC [Member] | ||||||
Deferred Revenue | $ 0 | $ 0 | ||||
Parkdale America LLC [Member] | Two Manufacturing Facilities [Member] | ||||||
Payments to Acquire Businesses, Gross | $ 13,000,000 | |||||
Business Combination, Bargain Purchase, Gain Recognized, Amount | $ 9,381,000 | |||||
Parkdale America LLC [Member] | ||||||
Equity Method Investments | $ 110,059,000 | |||||
Equity Method Investment, Ownership Percentage | 34.00% | 34.00% | ||||
Number of Manufacturing Facilities | 16 | |||||
UNF and UNF America [Member] | ||||||
Equity Method Investments | $ 3,651,000 | |||||
Purchase Commitment, Remaining Minimum Amount Committed | 3,192,000 | |||||
Accounts Payable, Related Parties | $ 2,565,000 | $ 4,038,000 | ||||
UNF [Member] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||
UNF America [Member] | ||||||
Equity Method Investment, Ownership Percentage | 50.00% | |||||
UNF and UNF America [Member] | ||||||
Percentage of Current and Total Assets and Total Liabilities Accounted for by Equity Method Investments | 3.00% | |||||
Unconsolidated Entities, Number | 3 | |||||
Equity Method Investments | $ 113,710,000 | 113,901,000 | ||||
Accounts Payable, Related Parties | $ 887,000 | $ 783,000 |
Note 17 - Reconciliation Betwee
Note 17 - Reconciliation Between Share of Underlying Equity in PAL and Investment (Details) | Dec. 27, 2015USD ($) |
Parkdale America LLC [Member] | Initial Excess Capital Contributions [Member] | |
Equity method investment difference between carrying amount and underlying equity | $ 53,363,000 |
Parkdale America LLC [Member] | Impairment Charge Recorded in 2007 [Member] | |
Equity method investment difference between carrying amount and underlying equity | (74,106,000) |
Parkdale America LLC [Member] | Antitrust Lawsuit Against PAL [Member] | |
Equity method investment difference between carrying amount and underlying equity | 2,652,000 |
Parkdale America LLC [Member] | EAP Adjustments [Member] | |
Equity method investment difference between carrying amount and underlying equity | (214) |
Parkdale America LLC [Member] | |
Underlying equity as of December 27, 2015 | 128,364,000 |
Equity Method Investments | 110,059,000 |
Equity Method Investments | $ 113,710,000 |
Note 17 - Raw Material Purchase
Note 17 - Raw Material Purchases under Supply Agreement (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 27, 2015 | Dec. 28, 2014 | |
UNF [Member] | ||
Raw Material Purchases Under Supply Agreement | $ 1,356 | $ 1,817 |
UNF America [Member] | ||
Raw Material Purchases Under Supply Agreement | 13,441 | 14,274 |
UNF and UNF America [Member] | ||
Raw Material Purchases Under Supply Agreement | $ 14,797 | $ 16,091 |
Note 17 - Unaudited, Condensed
Note 17 - Unaudited, Condensed Balance Sheet Information for Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Parkdale America LLC [Member] | ||
Current assets | $ 218,948 | $ 250,699 |
Noncurrent assets | 211,053 | 216,708 |
Current liabilities | 43,751 | 61,243 |
Noncurrent liabilities | 8,708 | 28,935 |
Shareholders’ equity and capital accounts | 377,542 | 377,229 |
The Company’s portion of undistributed earnings | 40,741 | |
Other Unconsolidated Affiliates [Member] | ||
Current assets | 10,070 | 9,273 |
Noncurrent assets | 1,110 | 3,676 |
Current liabilities | $ 3,937 | $ 4,985 |
Noncurrent liabilities | ||
Shareholders’ equity and capital accounts | $ 7,243 | $ 7,964 |
The Company’s portion of undistributed earnings | 1,335 | |
Current assets | 229,018 | 259,972 |
Noncurrent assets | 212,163 | 220,384 |
Current liabilities | 47,688 | 66,228 |
Noncurrent liabilities | 8,708 | 28,935 |
Shareholders’ equity and capital accounts | 384,785 | $ 385,193 |
The Company’s portion of undistributed earnings | $ 42,076 |
Note 17 - Unaudited, Condense80
Note 17 - Unaudited, Condensed Income Statement Information for Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Parkdale America LLC [Member] | ||||
Net sales | $ 183,426 | $ 192,243 | $ 407,491 | $ 398,479 |
Gross profit | 2,917 | 12,063 | 10,304 | 23,032 |
(Loss) income from operations | (1,437) | 6,909 | 2,124 | 13,723 |
Net (loss) income | (1,170) | 9,039 | 4,559 | 19,003 |
Depreciation and amortization | 11,169 | 8,161 | 20,863 | 15,369 |
Cash received by PAL under cotton rebate program | 5,676 | 4,153 | 8,860 | 8,454 |
Earnings recognized by PAL for cotton rebate program | $ 3,574 | $ 3,854 | 7,928 | $ 8,755 |
Distributions received | 947 | |||
Other Unconsolidated Affiliates [Member] | ||||
Net sales | $ 7,264 | $ 8,955 | 16,613 | $ 16,315 |
Gross profit | 1,852 | 1,007 | 4,182 | 1,662 |
(Loss) income from operations | 1,389 | 655 | 3,238 | 948 |
Net (loss) income | 1,420 | 685 | 3,278 | 1,024 |
Depreciation and amortization | $ 37 | $ 25 | $ 74 | $ 50 |
Cash received by PAL under cotton rebate program | ||||
Earnings recognized by PAL for cotton rebate program | ||||
Distributions received | $ 1,000 | $ 2,000 | ||
Net sales | 190,690 | $ 201,198 | 424,104 | $ 414,794 |
Gross profit | 4,769 | 13,070 | 14,486 | 24,694 |
(Loss) income from operations | (48) | 7,564 | 5,362 | 14,671 |
Net (loss) income | 250 | 9,724 | 7,837 | 20,027 |
Depreciation and amortization | 11,206 | 8,186 | 20,937 | 15,419 |
Cash received by PAL under cotton rebate program | 5,676 | 4,153 | 8,860 | 8,454 |
Earnings recognized by PAL for cotton rebate program | 3,574 | $ 3,854 | 7,928 | $ 8,755 |
Distributions received | $ 1,000 | $ 2,947 |
Note 18 - Commitments and Con81
Note 18 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | Sep. 30, 2004 | Dec. 27, 2015 |
Assets Purchased for Construction of Plastic Bottle Processing Plant [Member] | Polyester [Member] | ||
Purchase Obligation | $ 7,150 | |
Assets Purchased for Construction of Third-Party Products [Member] | ||
Purchase Obligation | $ 6,600 | |
The Term of a Former Ground Lease | 99 years | |
Number of Years of Monitoring and Reporting Costs of an Individual Site | 7 years |
Note 19 - Related Party Trans82
Note 19 - Related Party Transactions (Details Textual) - Salem Leasing Corporation [Member] $ in Millions | 6 Months Ended |
Dec. 27, 2015USD ($) | |
Minimum [Member] | |
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 4 years |
Maximum [Member] | |
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 6 years |
Increase (Decrease) in Operating Lease Obligations | $ 6.5 |
Note 19 - Related Party Receiva
Note 19 - Related Party Receivables and Payables (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Cupron, Inc [Member] | ||
Related party receivables | $ 71 | $ 72 |
Related party payables | 520 | 506 |
Salem Global Logistics Inc [Member] | ||
Related party receivables | 8 | 3 |
Related party payables | 367 | 277 |
Related party receivables | 79 | 75 |
Related party payables | $ 887 | $ 783 |
Note 19 - Related Party Trans84
Note 19 - Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Salem Leasing Corporation [Member] | ||||
Expenses with related party | $ 931 | $ 947 | $ 1,876 | $ 1,897 |
Salem Global Logistics Inc [Member] | ||||
Revenues from related parties | 81 | 63 | 143 | 132 |
Cupron, Inc [Member] | ||||
Revenues from related parties | 147 | 208 | 252 | 549 |
Raw Material Purchases Under Supply Agreement | $ 8 | $ 210 | 8 | 210 |
Invemed Associates LLC [Member] | ||||
Expenses with related party | $ 4 | $ 2 |
Note 20 - Business Segment In85
Note 20 - Business Segment Information (Details Textual) | 6 Months Ended |
Dec. 27, 2015 | |
Number of Reportable Segments | 3 |
Note 20 - Selected Financial In
Note 20 - Selected Financial Information for Polyester, Nylon and International Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Polyester [Member] | Operating Segments [Member] | ||||
Segment depreciation expense | $ 2,736 | $ 2,442 | $ 5,547 | $ 4,856 |
Segment profit (loss) | 14,549 | 14,774 | 26,649 | 27,464 |
Polyester [Member] | ||||
Net sales | 89,814 | 90,431 | 180,382 | 183,409 |
Cost of sales | 78,001 | 78,099 | 159,280 | 160,801 |
Gross profit (loss) | 11,813 | 12,332 | 21,102 | 22,608 |
Nylon [Member] | Operating Segments [Member] | ||||
Segment depreciation expense | 515 | 470 | 1,033 | 932 |
Segment profit (loss) | 6,229 | 6,098 | 12,929 | 11,709 |
Nylon [Member] | ||||
Net sales | 40,367 | 39,212 | 81,043 | 83,922 |
Cost of sales | 34,653 | 33,584 | 69,147 | 73,145 |
Gross profit (loss) | 5,714 | 5,628 | 11,896 | 10,777 |
International [Member] | Operating Segments [Member] | ||||
Segment depreciation expense | 192 | 658 | 413 | 1,385 |
Segment profit (loss) | 4,573 | 5,735 | 10,385 | 11,775 |
International [Member] | ||||
Net sales | 24,812 | 33,506 | 54,183 | 70,000 |
Cost of sales | 20,431 | 28,429 | 44,211 | 59,610 |
Gross profit (loss) | 4,381 | 5,077 | 9,972 | 10,390 |
Other Segments [Member] | Operating Segments [Member] | ||||
Segment depreciation expense | 162 | 109 | 314 | 219 |
Segment profit (loss) | 67 | 1 | 141 | (177) |
Other Segments [Member] | ||||
Net sales | 1,343 | 1,273 | 2,893 | 2,652 |
Cost of sales | 1,438 | 1,381 | 3,066 | 3,048 |
Gross profit (loss) | (95) | (108) | (173) | (396) |
Operating Segments [Member] | ||||
Gross profit (loss) | 21,813 | 22,929 | 42,797 | 43,379 |
Segment depreciation expense | 3,605 | 3,679 | 7,307 | 7,392 |
Segment profit (loss) | 25,418 | 26,608 | 50,104 | 50,771 |
Net sales | 156,336 | 164,422 | 318,501 | 339,983 |
Cost of sales | 134,523 | 141,493 | 275,704 | 296,604 |
Gross profit (loss) | $ 21,813 | $ 22,929 | $ 42,797 | $ 43,379 |
Note 20 - Reconciliations from
Note 20 - Reconciliations from Segment Operating Profit to Consolidated Income Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Polyester [Member] | ||||
Gross profit (loss) | $ 11,813 | $ 12,332 | $ 21,102 | $ 22,608 |
Nylon [Member] | ||||
Gross profit (loss) | 5,714 | 5,628 | 11,896 | 10,777 |
International [Member] | ||||
Gross profit (loss) | 4,381 | 5,077 | 9,972 | 10,390 |
Other Segments [Member] | ||||
Gross profit (loss) | (95) | (108) | (173) | (396) |
Operating Segments [Member] | ||||
Gross profit (loss) | 21,813 | 22,929 | 42,797 | 43,379 |
Gross profit (loss) | 21,813 | 22,929 | 42,797 | 43,379 |
SG&A expenses | 12,419 | 12,971 | 23,249 | 24,620 |
Provision for bad debts | 559 | 62 | 1,172 | 646 |
Other operating expense (income), net | 206 | (38) | 60 | 562 |
Operating income | 8,629 | 9,934 | 18,316 | 17,551 |
Interest income | (166) | (309) | (329) | (626) |
Interest expense | 816 | 1,209 | 1,800 | 2,028 |
Equity in earnings of unconsolidated affiliates | (303) | (3,281) | (3,163) | (7,002) |
Income before income taxes | $ 8,282 | $ 12,315 | $ 20,008 | $ 23,151 |
Note 20 - Reconciliation of Seg
Note 20 - Reconciliation of Segment Capital Expenditures to Consolidated Capital Expenditures (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 27, 2015 | Dec. 28, 2014 | |
Polyester [Member] | ||
Capital expenditures | $ 23,437 | $ 12,026 |
Nylon [Member] | ||
Capital expenditures | 996 | 475 |
International [Member] | ||
Capital expenditures | 891 | 735 |
Other Segments [Member] | ||
Capital expenditures | 1,716 | 43 |
Operating Segments [Member] | ||
Capital expenditures | 27,040 | 13,279 |
Corporate, Non-Segment [Member] | ||
Capital expenditures | 379 | 163 |
Capital expenditures | $ 27,419 | $ 13,442 |
Note 20 - Reconciliation of S89
Note 20 - Reconciliation of Segment Total Assets to Consolidated Total Assets (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Polyester [Member] | ||
Consolidated Assets | $ 222,835 | $ 203,574 |
Total assets | 222,835 | 203,574 |
Nylon [Member] | ||
Consolidated Assets | 76,033 | 71,332 |
Total assets | 76,033 | 71,332 |
International [Member] | ||
Consolidated Assets | 54,648 | 63,031 |
Total assets | 54,648 | 63,031 |
Operating Segments [Member] | ||
Consolidated Assets | 353,516 | 337,937 |
Total assets | 353,516 | 337,937 |
Corporate, Non-Segment [Member] | ||
Other current assets | 8,898 | 4,687 |
Property, plant and equipment, net | 17,156 | 13,544 |
Other non-current assets | 4,461 | 6,303 |
Investments in unconsolidated affiliates | 113,710 | 113,901 |
Consolidated Assets | 497,741 | 476,372 |
Other current assets | 3,572 | 6,022 |
Property, plant and equipment, net | 159,210 | 136,222 |
Other non-current assets | 4,497 | 3,975 |
Investments in unconsolidated affiliates | 113,710 | 113,901 |
Total assets | $ 497,741 | $ 476,372 |
Note 21 - Supplemental Cash F90
Note 21 - Supplemental Cash Flow Information (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
Aug. 31, 2015 | Dec. 27, 2015 | Dec. 28, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Accounts Payable and Accrued Liabilities [Member] | |||||
Capital Expenditures Incurred but Not yet Paid | $ 1,344 | $ 1,118 | $ 1,726 | $ 5,023 | |
Land [Member] | |||||
Noncash or Part Noncash Acquisition, Fixed Assets Acquired | 191 | ||||
Notes Issued | 135 | ||||
Noncash or Part Noncash Acquisition, Other Assets Acquired | $ 1,390 | ||||
Capital Lease Obligations Incurred | 4,154 | ||||
Construction in Progress Expenditures Incurred but Not yet Paid | $ 1,595 |
Note 21 - Cash Payments for Int
Note 21 - Cash Payments for Interest and Taxes (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 27, 2015 | Dec. 28, 2014 | |
Interest, net of capitalized interest of $226 and $53, respectively | $ 1,594 | $ 1,661 |
Income taxes, net of refunds | $ 3,574 | $ 12,708 |
Note 21 - Cash Payments for I92
Note 21 - Cash Payments for Interest and Taxes (Details) (Parentheticals) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 27, 2015 | Dec. 28, 2014 | |
Interest capitalized | $ 226 | $ 53 |