Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 28, 2013 | Jan. 24, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'DELTA APPAREL, INC | ' |
Entity Central Index Key | '0001101396 | ' |
Current Fiscal Year End Date | '--09-27 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 28-Dec-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 7,901,848 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Dec. 28, 2013 | Sep. 28, 2013 | |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | |
Cash and cash equivalents | $288 | $829 | |
Accounts receivable, less allowances of $2,908 and $2,958 respectively | 49,792 | 68,707 | |
Income tax receivable | 3,042 | 1,232 | |
Inventories, net | 174,198 | 165,190 | |
Prepaid expenses and other current assets | 4,600 | 3,786 | |
Deferred income taxes | 5,670 | 5,981 | |
Total current assets | 237,590 | 245,725 | |
Property, plant and equipment, net | 42,795 | 40,600 | |
Goodwill | 36,729 | 36,729 | |
Intangibles, net | 24,497 | 24,837 | |
Other assets | 3,784 | 3,871 | |
Total assets | 345,395 | [1] | 351,762 |
Current liabilities: | ' | ' | |
Accounts payable | 47,923 | 52,877 | |
Accrued expenses | 17,068 | 17,463 | |
Current portion of long-term debt | 14,504 | 3,704 | |
Total current liabilities | 79,495 | 74,044 | |
Long-term debt, less current maturities | 118,340 | 131,030 | |
Deferred income taxes | 4,628 | 3,610 | |
Other liabilities | 1,592 | 806 | |
Contingent consideration | 3,400 | 3,400 | |
Total liabilities | 207,455 | 212,890 | |
Shareholders’ equity: | ' | ' | |
Preferred stock—$0.01 par value, 2,000,000 shares authorized, none issued and outstanding | 0 | 0 | |
Common stock —$0.01 par value, 15,000,000 shares authorized, 9,646,972 shares issued, and 7,901,848 and 7,873,848 shares outstanding as of December 28, 2013 and September 28, 2013, respectively | 96 | 96 | |
Additional paid-in capital | 59,682 | 59,428 | |
Retained earnings | 98,982 | 100,579 | |
Accumulated other comprehensive loss | -472 | -557 | |
Treasury stock —1,745,124 and 1,773,124 shares as of December 28, 2013 and September 28, 2013, respectively | -20,348 | -20,674 | |
Total shareholders’ equity | 137,940 | 138,872 | |
Total liabilities and shareholders' equity | $345,395 | $351,762 | |
[1] | *Â All goodwill and intangibles on our balance sheet are included in the branded segment. |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowances for accounts receivable | $2,908 | $2,958 |
Shareholders' equity: | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 15,000,000 | 15,000,000 |
Common stock, shares issued | 9,646,972 | 9,646,972 |
Common stock, shares outstanding | 7,901,848 | 7,873,848 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock, shares | 1,745,124 | 1,773,124 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Income Statement [Abstract] | ' | ' |
Net sales | $100,012 | $106,750 |
Cost of goods sold | 80,970 | 83,995 |
Gross profit | 19,042 | 22,755 |
Selling, general and administrative expenses | 19,843 | 21,875 |
Other expense (income), net | -127 | 34 |
Operating income (loss) | -674 | 846 |
Interest expense, net | 1,458 | 887 |
Loss before benefit from income taxes | -2,132 | -41 |
Benefit from income taxes | -535 | -87 |
Net (loss) earnings | ($1,597) | $46 |
Basic (loss) earnings per share | ($0.20) | $0.01 |
Diluted (loss) earnings per share | ($0.20) | $0.01 |
Weighted average number of shares outstanding | 7,884 | 8,302 |
Dilutive effect of stock options and awards | 0 | 311 |
Weighted average number of shares assuming dilution | 7,884 | 8,613 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Comprehensive income (loss): | ' | ' |
Net (loss) earnings | ($1,597) | $46 |
Net unrealized gain on cash flow hedges | 85 | 25 |
Comprehensive (loss) income | ($1,512) | $71 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Operating activities: | ' | ' |
Net (loss) earnings from continuing operations | ($1,597) | $46 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 2,244 | 2,026 |
Amortization of deferred financing fees | 88 | 90 |
Excess tax benefits from exercise of stock options | -18 | -21 |
Povision for deferred income taxes | 1,329 | -13 |
Non-cash stock compensation | 247 | -212 |
Loss on disposal of property and equipment | -86 | 10 |
Release of cash held in escrow | 3,000 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 18,916 | 12,546 |
Inventories | -9,008 | -6,545 |
Prepaid expenses and other current assets | -816 | -1,052 |
Accounts payable | -4,954 | 16 |
Accrued expenses | -395 | -4,336 |
Income taxes | -1,792 | -1,561 |
Other liabilities | 871 | -10 |
Net cash provided by (used in) operating activities | 8,029 | 984 |
Investing activities: | ' | ' |
Purchases of property and equipment, net | -4,014 | -2,163 |
Net cash used in investing activities | -4,014 | -2,163 |
Financing activities: | ' | ' |
Proceeds from long-term debt | 132,994 | 123,667 |
Repayment of long-term debt | -137,884 | -121,364 |
Repurchase of common stock | 0 | -2,014 |
Proceeds from exercise of stock options | 316 | 0 |
Payment of withholding taxes on exercise of stock options | 0 | -31 |
Excess tax benefits from exercise of stock options | 18 | 21 |
Net cash (used in) provided by financing activities | -4,556 | 279 |
Net increase (decrease) in cash and cash equivalents | -541 | -900 |
Cash and cash equivalents at beginning of year | 829 | 1,840 |
Cash and cash equivalents at end of year | 288 | 940 |
Supplemental cash flow information: | ' | ' |
Cash paid during the year for interest | 1,095 | 790 |
Cash paid during the year for income taxes, net of refunds received | $56 | $1,502 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Dec. 28, 2013 | |
Basis of Presentation [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation and Description of Business | |
On August 26, 2013, our Board of Directors determined that the Company's fiscal year will begin on the Sunday closest to September 30th of each year and end on the Saturday closest to September 30th of each year. The change is intended to better align our planning, financial and reporting functions with the seasonality of our business. | |
We prepared the accompanying interim condensed consolidated financial statements in accordance with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles ("U.S. GAAP") for complete financial statements. We believe these Condensed Consolidated Financial Statements consist of normal recurring adjustments considered necessary for a fair presentation. Operating results for the three months ended December 28, 2013, are not necessarily indicative of the results that may be expected for our fiscal year ending September 27, 2014. Although our various product lines are sold on a year-round basis, the demand for specific products or styles reflects some seasonality, with sales in our June fiscal quarter generally being the highest and sales in our December quarter generally being the lowest. For more information regarding our results of operations and financial position, refer to the Consolidated Financial Statements and footnotes included in our Form 10-K for our fiscal year ended June 29, 2013, filed with the United States Securities and Exchange Commission (“SEC”). | |
“Delta Apparel”, the “Company”, and “we”, “us” and “our” are used interchangeably to refer to Delta Apparel, Inc. together with our domestic wholly-owned subsidiaries, including M.J. Soffe, LLC (“Soffe”), Junkfood Clothing Company (“Junkfood”), To The Game, LLC (“To The Game”), Art Gun, LLC (“Art Gun”), and other international subsidiaries, as appropriate to the context. | |
Delta Apparel, Inc. is an international apparel design, marketing, manufacturing and sourcing company that features a diverse portfolio of lifestyle basic and branded activewear apparel and headwear. We specialize in selling casual and athletic products through a variety of distribution channels and distribution tiers including specialty stores, boutiques, department stores, mid and mass channels, college bookstores and the U.S. military. Our products are made available direct-to-consumer on our websites at www.soffe.com, www.junkfoodclothing.com, www.saltlife.com and www.deltaapparel.com. We design and internally manufacture the majority of our products, which allows us to offer a high degree of consistency and quality control as well as leverage scale efficiencies. We have manufacturing operations located in the United States, El Salvador, Honduras and Mexico, and use domestic and foreign contractors as additional sources of production. Our distribution facilities are strategically located throughout the United States to better serve our customers with same-day shipping on our catalog products and weekly replenishments to retailers. | |
We were incorporated in Georgia in 1999 and our headquarters is located at 322 South Main Street, Greenville, South Carolina 29601 (telephone number: 864-232-5200). Our common stock trades on the NYSE MKT under the symbol “DLA”. We operate on a 52-53 week fiscal year ending on the Saturday closest to September 30. |
Accounting_Policies
Accounting Policies | 3 Months Ended |
Dec. 28, 2013 | |
Accounting Policies [Abstract] | ' |
Accounting Policies | ' |
Accounting Policies | |
Our accounting policies are consistent with those described in our Significant Accounting Policies in our Form 10-K for the fiscal year ended June 29, 2013, filed with the SEC. |
New_Accounting_Standards
New Accounting Standards | 3 Months Ended |
Dec. 28, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Standards | ' |
Accounting Standards | |
Recently Adopted Standards | |
In July 2012, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2012-02, Intangibles - Goodwill and Other (Topic 350), Testing Indefinite-Lived Intangible Assets for Impairment, ("ASU 2012-02"). This new guidance adds an optional qualitative assessment for determining whether an indefinite-lived intangible asset is impaired. Companies have the option to first perform a qualitative assessment to determine whether it is more likely than not (likelihood of more than 50%) that an indefinite-lived intangible is impaired. If a company determines that it is more likely than not that the fair value of such an asset exceeds its carrying amount, it would not need to calculate whether the fair value of such an asset exceeds its carrying amount and it would not need to calculate the fair value of the asset in that year. The company must, however, make a positive assertion about the conclusion and the circumstances taken into account to reach that conclusion. However, if the company determines otherwise, it must calculate the fair value of the asset and compare that value with its carrying amount. If the carrying amount of the company's intangible asset exceeds its fair value, the company must record an impairment charge for the amount of that excess, if any. ASU 2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. ASU 2012-02 was adopted on June 30, 2013, and the adoption had no impact on our financial statements. | |
In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220), Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income ("ASU 2013-02"). This guidance requires companies to report information about reclassifications out of accumulated other comprehensive income in one place. These reclassifications must be presented by component. If these items are significant and are reclassified in their entirety in the period, companies must report the effect of the reclassifications on the respective line items in the statement where net income is presented. If the items are not reclassified in their entirety to net income in the period, companies must cross-reference in a note. ASU 2013-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2012. ASU 2013-02 was adopted on June 30, 2013, and the adoption had no impact on our financial statements. | |
In July 2013, the FASB issued ASU No. 2013-10, Derivatives and Hedging (Topic 815), Inclusion of the Fed Funds Effective Swap Rate as a Benchmark Interest Rate for Hedge Accounting Purposes ("ASU 2013-10"). This guidance allows an entity to now designate the Federal Funds Effective Swap Rate, (the Overnight Index Swap rate, or OIS rate, in the United States) as a benchmark interest rate for hedge accounting purposes in addition to the interest rate on direct Treasury obligations of the United States government and the London Interbank Offered Rate ("LIBOR"). The FASB also eliminated the restriction on designating different benchmark interest rate hedges for similar hedges. ASU 2013-10 is effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 2013. ASU 2013-10 was adopted on June 30, 2013, and the adoption had no impact on our financial statements. | |
Standards Not Yet Adopted | |
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740), Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, ("ASU 2013-11"). This new guidance requires entities to present unrecognized tax benefits as a decrease in a net operating loss, similar tax loss or tax credit carryforward if certain criteria are met. The determination of whether a deferred tax asset is available is based on the unrecognized tax benefit and the deferred tax asset that exists as of the reporting date and presumes disallowance of the tax position at the reporting date. This amendment is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2013. ASU 2013-11 is therefore effective for our fiscal year beginning September 28, 2014. |
Salt_Life_Acquisition
Salt Life Acquisition | 3 Months Ended | |||||
Dec. 28, 2013 | ||||||
Business Combinations [Abstract] | ' | |||||
Salt Life Acquisition | ' | |||||
On August 27, 2013, To The Game purchased substantially all of the assets of Salt Life Holdings, LLC, including all of its domestic and international trademark rights in the Salt Life brand (the "Salt Life Acquisition"). The purchase price for the Salt Life Acquisition consisted of: (i) a cash payment at closing of $12,000,000, (ii) a deposit at closing of $3,000,000 into an escrow account to be held to secure indemnification obligations under the asset purchase agreement and to be held for a period of up to fifty-four months following the closing, and (iii) delivery of two promissory notes in the aggregate principal amount of $22,000,000. An additional amount may be payable in cash after the end of calendar year 2019 if financial performance targets involving the sale of Salt Life-branded products are met during the 2019 calendar year. At December 28, 2013, we had $3.4 million accrued in contingent consideration associated with the Salt Life Acquisition. We financed the cash portion of the purchase price through our Fourth Amended and Restated Loan and Security Agreement, as amended on August 27, 2013. We expensed all acquisition related costs in the selling, general and administrative expense line item of our Condensed Consolidated Statements of Operations in the quarter ended September 28, 2013. | ||||||
On December 6, 2013, we entered into an agreement (the "IMG Agreement") with IMG Worldwide, Inc. ("IMG") that provides for the termination of the Salt Life brand license agreements entered into between Delta and IMG (as agent on behalf of Salt Life Holdings) prior to the Salt Life Acquisition as well as the agency agreement entered into between Salt Life Holdings and IMG prior to the Salt Life Acquisition. In addition, the IMG Agreement provides that Delta and Salt Life Holdings are released from all obligations and liabilities under those agreements or relating to the Salt Life Acquisition. Pursuant to the IMG Agreement, To The Game and IMG entered into a new, multi-year agency agreement whereby IMG will represent To The Game with respect to the licensing of the Salt Life brand in connection with certain product and service categories. To The Game agreed to pay IMG installments totaling $3,500,000 and will utilize the above-referenced $3,000,000, which was released from escrow during the quarter ended December 28, 2013, toward these payment obligations, along with additional amounts it previously accrued for royalty obligations under the above-referenced Salt Life brand license agreements. The payment terms require To The Game to pay IMG $1.55 million by December 31, 2013, as well as ten quarterly installments of $195 thousand beginning on March 15, 2014. We recorded the fair value of the liability on our financials with $2.3 million in accrued expenses and $0.8 million in other liabilities. | ||||||
The Salt Life Acquisition continues our strategy of building lifestyle brands that take advantage of our creative capabilities, vertical manufacturing platform and international sourcing competencies. Prior to the Salt Life Acquisition, To The Game sold Salt Life-branded products under exclusive license agreements which began in January 2011. As such, the results of Salt Life sales have been included in the Condensed Consolidated Financial Statements since that time. | ||||||
We accounted for the Salt Life Acquisition pursuant to ASC 805, Business Combinations, with purchase price allocated based upon fair value. We have identified certain intangible assets associated with Salt Life, including trade name and trademarks, license agreements, non-compete agreements and goodwill. The total amount of goodwill is expected to be deductible for tax purposes. Components of the intangible assets recorded at acquisition are as follows: | ||||||
Economic Life | ||||||
Goodwill | $ | 19,917 | N/A | |||
Intangibles: | ||||||
Tradename/trademarks | 16,000 | 30 yrs | ||||
License agreements | 2,100 | 15 – 30 yrs | ||||
Non-compete agreements | 770 | 6.6 yrs | ||||
Total intangibles | 18,870 | |||||
Total goodwill and intangibles | $ | 38,787 | ||||
We are currently in the process of finalizing the valuations and thus the initial allocation of the purchase price is subject to change until the allocation is finalized. |
Inventories
Inventories | 3 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories, net of reserves of $6.6 million as of December 28, 2013, and $6.9 million as of September 28, 2013, consist of the following (in thousands): | ||||||||
December 28, | September 28, | |||||||
2013 | 2013 | |||||||
Raw materials | $ | 10,993 | $ | 11,917 | ||||
Work in process | 14,429 | 15,121 | ||||||
Finished goods | 148,776 | 138,152 | ||||||
$ | 174,198 | $ | 165,190 | |||||
Raw materials include finished yarn and direct materials for the basics segment and include direct embellishment materials and undecorated garments and headwear for the branded segment. We regularly review inventory quantities on hand and record reserves for obsolescence, excess quantities, irregulars and slow-moving inventory based on historical selling prices, current market conditions, and forecasted product demand, to reduce inventory to its net realizable value. |
Debt
Debt | 3 Months Ended |
Dec. 28, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt | ' |
Debt | |
On May 27, 2011, Delta Apparel, Soffe, Junkfood, To The Game and Art Gun entered into a Fourth Amended and Restated Loan and Security Agreement (the "Loan Agreement") with the financial institutions named in the Loan Agreement as Lenders, Wells Fargo Bank, National Association, as Administrative Agent, Bank of America, N.A., as Syndication Agent, Wells Fargo Capital Finance, LLC, as Sole Lead Arranger, and Wells Fargo Capital Finance, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as Joint Bookrunners. | |
On August 27, 2013, Delta Apparel, To The Game, Junkfood, Soffe and Art Gun entered into a Consent and First Amendment to the Fourth Amended and Restated Loan and Security Agreement with Wells Fargo Bank, National Association and the other lenders set forth therein (the "Amended Loan Agreement"). Pursuant to the Amended Loan Agreement, in general and among other things, (1) the lenders and agent parties consented to the Salt Life Acquisition, (2) the maturity of the loans (other than the below referenced first in last out Tranche B ("FILO Tranche B")) under the Amended Loan Agreement was extended one year to May 27, 2017, (3) the lenders consented to Delta Apparel's Honduran subsidiaries borrowing up to an additional $10,000,000 from a certain Honduran bank in connection with the purchase of certain equipment, and (4) the FILO Tranche B was added to provide Delta Apparel and its affiliate parties to the Amended Loan Agreement an additional 5% borrowing availability with respect to eligible accounts receivable and eligible inventory. The FILO Tranche B, and only the FILO Tranche B, will terminate by August 27, 2015 (subject to earlier cancellation by Delta Apparel), has a maximum borrowing availability of $10,000,000, and includes interest rates between 150 and 200 basis points higher than the rates applicable to the other loans available under the Amended Loan Agreement. | |
Pursuant to the Amended Loan Agreement, our line of credit is $145 million (subject to borrowing base limitations). Provided that no event of default exists, we have the option to increase the maximum credit available under the facility to $200 million (subject to borrowing base limitations), conditioned upon the Administrative Agent's ability to secure additional commitments and customary closing conditions. | |
At December 28, 2013, we had $98.0 million outstanding under our U.S. credit facility at an average interest rate of 2.5%, and had the ability to borrow an additional $26.7 million. Our credit facility includes a financial covenant requiring that if the amount of availability falls below an amount equal to 12.5% of the lesser of the borrowing base or $145 million, our Fixed Charge Coverage Ratio (“FCCR”) (as defined in the Amended Loan Agreement) for the preceding 12 month period must not be less than 1.1 to 1.0. As availability was above the minimum, we were not subject to the FCCR covenant at December 28, 2013. At December 28, 2013, and September 28, 2013, there was $9.1 million and $9.9 million, respectively, of retained earnings free of restrictions to make cash dividends or stock repurchases. | |
The Amended Loan Agreement contains a subjective acceleration clause and a “springing” lockbox arrangement (as defined in FASB Codification No. 470, Debt ("ASC 470")), whereby remittances from customers will be forwarded to our general bank account and will not reduce the outstanding debt until and unless a specified event or an event of default occurs. Pursuant to ASC 470, we classify borrowings under the Amended Loan Agreement as long-term debt. | |
In conjunction with the Salt Life Acquisition, we issued two promissory notes in the aggregate principal of $22 million and committed to a payment contingent on certain performance targets being met with respect to the sale of Salt Life products in calendar 2019. The promissory notes are zero-interest notes and state that interest will be imputed as required under Section 1274 of the Internal Revenue Code. We have imputed interest at 1.92% and 3.62% on the promissory notes that mature on June 30, 2016 and June 30, 2019, respectively. At December 28, 2013, the discounted value of the promissory notes was $20.6 million. | |
In March 2011, we extinguished our existing debt with Banco Ficohsa, a Honduran bank, and entered into a new credit facility with it. The credit facility is secured by a first-priority lien on the assets of our Honduran operations and the loan is not guaranteed by the U.S. entity. The installment portion of the agreement carries a fixed interest rate of 7% for a term of seven years and is denominated in U.S. dollars. As of December 28, 2013, we had $4.1 million outstanding on the installment portion of this loan. The revolving credit portion of the loan has a 7% fixed interest rate with an ongoing 18-month term (expiring March 2019) and is denominated in U.S. dollars. The revolving credit facility requires minimum payments during each 6-month period of the 18-month term; however, the agreement permits additional drawdowns to the extent payments are made, if certain objective covenants are met. The current revolving Honduran debt, by its nature, is not long-term, as it requires scheduled payments each six months. However, as the agreement permits us to re-borrow funds up to the amount repaid, subject to certain objective covenants, and we intend to re-borrow funds, subject to the objective covenants, the amounts have been classified as long-term debt. As of December 28, 2013, we had $4.6 million outstanding under the revolving portion of the credit facility. | |
In October 2013, we entered into two new term loan agreements with Banco Ficohsa to finance our Honduran expansion project. These also are not guaranteed by the U.S. entity and are secured by a first-priority lien on the assets of our Honduran operations. The first loan, an eighteen month agreement for $1.8 million with a 7% fixed interest rate, is denominated in U.S. dollars, and has ratable monthly principal and interest payments due through the end of the term. As of December 28, 2013, we had $1.5 million outstanding on this loan agreement. The second loan, a seven year agreement for $4.2 million with a 7% fixed interest rate, is denominated in U.S. dollars, and has ratable monthly principal and interest payments due through the end of the term. As of December 28, 2013, we had $4.2 million outstanding on this loan agreement. The carrying value of these term loans approximates the fair value. |
Selling_General_and_Administra
Selling, General and Administrative Expense | 3 Months Ended |
Dec. 28, 2013 | |
Selling, General and Administrative Expense [Abstract] | ' |
Selling, General and Administrative Expense | ' |
Selling, General and Administrative Expense | |
We include in selling, general and administrative ("SG&A") expenses costs incurred subsequent to the receipt of finished goods at our distribution facilities, such as the cost of stocking, warehousing, picking and packing, and shipping goods for delivery to our customers. Distribution costs included in SG&A expenses totaled $3.9 million and $4.2 million for the three months ended December 28, 2013, and December 29, 2012, respectively. In addition, SG&A expenses include costs related to sales associates, administrative personnel cost, advertising and marketing expenses, royalty payments on licensed products and other general and administrative expenses. |
Stockbased_Compensation_Notes
Stock-based Compensation (Notes) | 3 Months Ended |
Dec. 28, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
On November 11, 2010, the Delta Apparel, Inc. shareholders approved the Delta Apparel, Inc. 2010 Stock Plan ("2010 Stock Plan"). Upon shareholder approval of the 2010 Stock Plan, no additional awards have been or will be granted under either the Delta Apparel Stock Option Plan ("Option Plan") or the Delta Apparel Incentive Stock Award Plan ("Award Plan"); instead, all stock awards have and will be granted under the 2010 Stock Plan. The aggregate number of shares of common stock that may be delivered under the 2010 Stock Plan is 500,000 plus any shares of common stock subject to outstanding awards under the Option Plan or Award Plan that are subsequently forfeited or terminated for any reason before being exercised. We expense stock compensation costs in the cost of sales and SG&A expense line items of our Condensed Consolidated Statements of Operations over the vesting periods of each grant. Total stock-based compensation for the three months ending December 28, 2013 was $0.5 million. For the three months ended December 29, 2012, we reduced stock based compensation expense by $0.3 million in connection with our outstanding awards due to adjustments to the expected vesting of the performance units and estimated forfeiture rate. | |
2010 Stock Plan | |
As of December 28, 2013, there was $1.2 million of total unrecognized compensation cost related to non-vested awards granted under the 2010 Stock Plan. This cost is expected to be recognized over a period of 1.7 years. No awards were granted under the 2010 Stock Plan during the quarter ended December 28, 2013. | |
Option Plan | |
All options granted under the Option Plan have vested. As such, no expense was recognized during the period or the prior year quarter. During the quarter ended December 28, 2013, vested options representing 28,000 shares of our common stock were exercised, and the shares issued, in accordance with their respective agreements. | |
Award Plan | |
All awards granted under the Award Plan have vested and been exercised, and no awards remain outstanding. |
Purchase_Contracts
Purchase Contracts | 3 Months Ended | |||
Dec. 28, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Purchase Contracts | ' | |||
Purchase Contracts | ||||
We have entered into agreements, and have fixed prices, to purchase yarn, natural gas, finished fabric, and finished apparel and headwear products. At December 28, 2013, minimum payments under these contracts were as follows (in thousands): | ||||
Yarn | $ | 3,866 | ||
Natural Gas | 800 | |||
Finished fabric | 793 | |||
Finished products | 22,020 | |||
$ | 27,479 | |||
Business_Segments
Business Segments | 3 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Business Segments | ' | |||||||||||
Business Segments | ||||||||||||
We operate our business in two distinct segments: branded and basics. Although the two segments are similar in their production processes and regulatory environments, they are distinct in their economic characteristics, products and distribution methods. | ||||||||||||
The branded segment is comprised of our business units focused on specialized apparel garments and headwear to meet consumer preferences and fashion trends, and includes Soffe, Junkfood, To The Game and Art Gun. These branded embellished and unembellished products are sold through specialty and boutique shops, upscale and traditional department stores, mid-tier retailers, sporting goods stores, college bookstores and the U.S. military. Products in this segment are marketed under our lifestyle brands of Soffe®, Intensity Athletics®, Junk Food®, The Game®, American Threads by The Game, and Salt Life®, as well as other labels. | ||||||||||||
The basics segment is comprised of our business units primarily focused on garment styles that are characterized by low fashion risk, and includes our Delta Activewear undecorated catalog tees and private label products. We market, distribute and manufacture unembellished knit apparel under the main brands of Delta Pro Weight® and Delta Magnum Weight® for sale to a diversified audience ranging from large licensed screen printers to small independent businesses. We also manufacture private label products for major branded sportswear companies, retailers, corporate industry programs, and sports licensed apparel marketers. Typically these products are sold with value-added services such as embellishment, hangtags, ticketing, and hangers so that they are fully ready for retail. | ||||||||||||
Robert W. Humphreys, our chief operating decision maker, and management evaluate performance and allocate resources based on profit or loss from operations before interest, income taxes and special charges (“segment operating earnings (loss)”). Our segment operating earnings (loss) may not be comparable to similarly titled measures used by other companies. Intercompany transfers between operating segments are transacted at cost and have been eliminated within the segment amounts shown in the following table. | ||||||||||||
Information about our operations as of and for the three months ended December 28, 2013, and December 29, 2012, by operating segment, is as follows (in thousands): | ||||||||||||
Basics | Branded | Consolidated | ||||||||||
Three months ended December 28, 2013 | ||||||||||||
Net sales | $ | 58,578 | $ | 41,434 | $ | 100,012 | ||||||
Segment operating earnings (loss) | 2,447 | (3,121 | ) | (674 | ) | |||||||
Segment assets * | 163,084 | 182,311 | 345,395 | |||||||||
Three months ended December 29, 2012 | ||||||||||||
Net sales | $ | 58,802 | $ | 47,948 | $ | 106,750 | ||||||
Segment operating earnings (loss) | 3,641 | (2,795 | ) | 846 | ||||||||
Segment assets * | 164,992 | 144,947 | 309,939 | |||||||||
* | All goodwill and intangibles on our balance sheet are included in the branded segment. | |||||||||||
The following reconciles the segment operating (loss) earnings to the Company's consolidated loss before benefit from income taxes before income taxes (in thousands): | ||||||||||||
Three Months Ended | ||||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
Segment operating (loss) earnings | $ | (674 | ) | $ | 846 | |||||||
Unallocated interest expense | 1,458 | 887 | ||||||||||
Consolidated loss before benefit from income taxes | $ | (2,132 | ) | $ | (41 | ) |
Income_Taxes
Income Taxes | 3 Months Ended |
Dec. 28, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
Our effective income tax rate for the three months ended December 28, 2013 was 25.1%, compared to an effective rate of 212.2% for the same period in the prior year and an effective rate of 7.3% for the fiscal year ended June 29, 2013. The effective tax rate for the quarter ended December 29, 2012, resulted from a reduction in the annualized effective tax rate expected for the 2013 fiscal year combined with a pre-tax loss during the quarter. We benefit from having income in foreign jurisdictions that are either exempt from income taxes or have tax rates lower than the United States. | |
Based on our current projected pre-tax income and the anticipated amount of U.S. taxable income compared to profits maintained in the offshore taxable and tax-free jurisdictions, our estimated effective income tax rate for the fiscal year ending September 27, 2014, should be approximately 24% to 25%; however, changes in the mix of U.S. taxable income compared to profits maintained in tax-free jurisdictions can have a significant impact on our overall effective tax rate. | |
We file income tax returns in the U.S. federal jurisdiction and various state, local and foreign jurisdictions. In the second quarter of fiscal year 2013, the Internal Revenue Service commenced an examination of our U.S. income tax returns for our fiscal year 2010 (tax year 2009). Upon filing the carryback of our net operating losses from fiscal year 2012 to our fiscal years 2011 and 2010 (tax years 2011 and 2010) and receiving a cash refund of the taxes previously paid, the Internal Revenue Service expanded the examination to include our U.S. income tax returns for our 2011 and 2012 fiscal years. This examination was concluded in January 2014, and no tax deficiency was found. Based on the conclusion of the audit, these returns are no longer subject to further examination by the Internal Revenue Service. However, net operating loss carryforwards remain subject to examination to the extent they are carried forward and impact a year that is open to examination by taxing authorities. The tax years 2009 to 2012, according to statute and with few exceptions, remain open to examination by various state, local and foreign jurisdictions. |
Derivatives_and_Fair_Value_Mea
Derivatives and Fair Value Measurements | 3 Months Ended | ||||||||||||||
Dec. 28, 2013 | |||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||
Derivatives and Fair Value Measurements | ' | ||||||||||||||
Derivatives and Fair Value Measurements | |||||||||||||||
From time to time, we may use interest rate swaps or other instruments to manage our interest rate exposure and reduce the impact of future interest rate changes. These financial instruments are not used for trading or speculative purposes. | |||||||||||||||
Effective Date | Notational | Fixed LIBOR Rate | Maturity Date | ||||||||||||
Amount | |||||||||||||||
Interest Rate Swap | September 9, 2013 | $15 million | 1.17 | % | September 9, 2016 | ||||||||||
Interest Rate Swap | September 9, 2013 | $15 million | 1.648 | % | September 11, 2017 | ||||||||||
Interest Rate Swap | September 19, 2013 | $15 million | 1.003 | % | September 19, 2016 | ||||||||||
Interest Rate Swap | September 19, 2013 | $15 million | 1.449 | % | September 19, 2017 | ||||||||||
Interest Rate Swap | September 1, 2011 | $10 million | 1.07 | % | September 1, 2014 | ||||||||||
Interest Rate Swap | September 1, 2011 | $10 million | 0.9025 | % | March 1, 2014 | ||||||||||
FASB Codification No. 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Assets and liabilities measured at fair value are grouped in three levels. The levels prioritize the inputs used to measure the fair value of the assets or liabilities. These levels are: | |||||||||||||||
◦ | Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. | ||||||||||||||
◦ | Level 2 – Inputs other than quoted prices that are observable for assets and liabilities, either directly or indirectly. These inputs include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are less active. | ||||||||||||||
◦ | Level 3 – Unobservable inputs that are supported by little or no market activity for assets or liabilities and includes certain pricing models, discounted cash flow methodologies and similar techniques. | ||||||||||||||
The following financial liabilities are measured at fair value on a recurring basis (in thousands): | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||
Period Ended | Total | Quoted Prices in | Significant Other | Significant | |||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||
(Level 1) | (Level 3) | ||||||||||||||
Interest Rate Swaps | |||||||||||||||
December 28, 2013 | $ | 767 | — | $ | 767 | — | |||||||||
September 28, 2013 | $ | 906 | — | $ | 906 | — | |||||||||
Contingent Consideration | |||||||||||||||
December 28, 2013 | $ | 3,400 | — | — | $ | 3,400 | |||||||||
September 28, 2013 | $ | 3,400 | — | — | $ | 3,400 | |||||||||
The fair value of the interest rate swap agreements were derived from discounted cash flow analysis based on the terms of the contract and the forward interest rate curves adjusted for our credit risk, which fall in Level 2 of the fair value hierarchy. | |||||||||||||||
The Salt Life Acquisition included contingent consideration payable in cash after the end of calendar year 2019 if financial performance targets involving the sale of Salt Life-branded products are met during the 2019 calendar year. We used the historical results and projected cash flows based on the contractually defined terms, discounted as necessary, to estimate the fair value of the contingent consideration for Salt Life, as well as to remeasure the contingent consideration related to the acquisition of Art Gun. Accordingly, the fair value measurement for contingent consideration falls in Level 3 of the fair value hierarchy. | |||||||||||||||
The following table summarizes the fair value and presentation in the Condensed Consolidated Balance Sheets for derivatives as of December 28, 2013, and June 29, 2013. | |||||||||||||||
December 28, | September 28, | ||||||||||||||
2013 | 2013 | ||||||||||||||
Accrued expenses | $ | 67 | $ | 100 | |||||||||||
Deferred tax liabilities | (295 | ) | (349 | ) | |||||||||||
Other liabilities | 700 | 806 | |||||||||||||
Accumulated other comprehensive loss | $ | 472 | $ | 557 | |||||||||||
Assets Measured at Fair Value on a Non-Recurring Basis | |||||||||||||||
Intangible assets acquired in connection with the Salt Life Acquisition are identified by type in Note D—Salt Life Acquisition and have been valued on a preliminary basis. These preliminary valuations included significant unobservable inputs (Level 3). |
Legal_Proceedings
Legal Proceedings | 3 Months Ended |
Dec. 28, 2013 | |
Legal Proceedings [Abstract] | ' |
Legal Proceedings | ' |
Legal Proceedings | |
Consumer Product Safety Commission | |
We previously received an inquiry from the U.S. Consumer Product Safety Commission (“Commission”) regarding a children's drawstring hoodie product sourced, distributed and sold by Junkfood and its compliance with applicable product safety standards. The Commission subsequently investigated the matter, including whether Junkfood complied with the reporting requirements of the Consumer Product Safety Act (“CPSA”), and the garments in question were ultimately recalled. On or about July 25, 2012, Junkfood received notification from the Commission staff alleging that Junkfood knowingly violated CPSA Section 15(b) and that it will recommend to the Commission a $900,000 civil penalty. We contend that the Commission's allegations are without merit. | |
On August 27, 2012, Junkfood responded to the Commission staff regarding its recommended penalty, setting forth a number of defenses and mitigating factors that could result in a much lower penalty, if any, ultimately imposed by a court should the matter proceed to litigation. On March 27, 2013, and on several subsequent occasions, the Commission requested additional information from Junkfood regarding the matter. While we will continue to defend against these allegations, we believe a risk of loss is probable. Based upon the terms of previously published CPSC settlements and related product recall notices, we believe if we settle the matter the minimum settlement amount would be $25,000. Should the Commission seek enforcement of the recommended civil penalty and ultimately prevail on its claims at trial, we could be required to pay amounts exceeding $900,000, along with interest and the Commission's costs and fees. During the quarter ended June 30, 2012, we recorded a liability for the most likely outcome within this range, and this liability remains recorded as of December 28, 2013. | |
California Wage and Hour Litigation | |
We were served with a complaint in the Superior Court of the State of California, County of Los Angeles, on or about March 13, 2013, by a former employee of our Activewear business unit at our Santa Fe Springs, California distribution facility alleging violations of California wage and hour laws and unfair business practices with respect to meal and rest periods, compensation and wage statements, and related claims (the "Complaint"). The Complaint is brought as a class action and seeks to include all of our Activewear business unit's current and certain former employees within California who are or were non-exempt under applicable wage and hour laws. The Complaint also names as defendants Junkfood, Soffe, an independent contractor of Soffe, and a former employee, and seeks to include all current and certain former employees of Junkfood, Soffe and the Soffe independent contractor within California who are or were non-exempt under applicable wage and hour laws. The Complaint seeks injunctive and declaratory relief, monetary damages and compensation, penalties, attorneys' fees and costs, and pre-judgment interest. The discovery process in this matter is ongoing and the issue of class certification remains pending. | |
While we will continue to vigorously defend this action and believe we have a number of meritorious defenses to the claims alleged, we believe a risk of loss is probable. Based upon current information, we believe there is a range of likely outcomes between approximately $15,000 and $975,000. During the transition period ended September 28, 2013, we recorded a liability for the most likely outcome within this range. However, depending upon the scope and size of any certified class and whether any of the claims alleged are ultimately prevailed upon at trial, we could be required to pay amounts exceeding $975,000. | |
In addition, at times we are party to various legal claims, actions and complaints. We believe that, as a result of legal defenses, insurance arrangements, and indemnification provisions with parties believed to be financially capable, such actions should not have a material effect on our operations, financial condition, or liquidity. |
Repurchase_of_Common_Stock
Repurchase of Common Stock | 3 Months Ended |
Dec. 28, 2013 | |
Equity [Abstract] | ' |
Repurchase of Common Stock | ' |
Repurchase of Common Stock | |
As of June 29, 2013, our Board of Directors had authorized management to use up to $30.0 million to repurchase Delta Apparel stock in open market transactions under our Stock Repurchase Program. | |
We did not purchase any shares during the quarter ended December 28, 2013. During the prior year quarter, we purchased 139,797 shares of our common stock for a total cost of $2.0 million. As of December 28, 2013, we have purchased 2,043,571 shares of our common stock for an aggregate of $24.1 million since the inception of the Stock Repurchase Program. All purchases were made at the discretion of management and pursuant to the safe harbor provisions of SEC Rule 10b-18. As of December 28, 2013, $5.9 million remained available for future purchases under our Stock Repurchase Program, which does not have an expiration date. |
License_Agreements
License Agreements | 3 Months Ended | |||
Dec. 28, 2013 | ||||
Commitments and Contingencies [Abstract] | ' | |||
License Agreements | ' | |||
License Agreements | ||||
We have entered into license agreements that provide for royalty payments of net sales of licensed products as set forth in the agreements. These license agreements are within our branded segment. We have incurred royalty expense (included in SG&A expenses) of approximately $2.4 million for the quarter ended December 28, 2013, and $3.7 million for the prior year quarter. | ||||
At December 28, 2013, based on minimum sales requirements, future minimum royalty payments required under these license agreements were as follows (in thousands): | ||||
Fiscal Year | Amount | |||
2014 | $ | 955 | ||
2015 | 721 | |||
2016 | 195 | |||
2017 | 21 | |||
$ | 1,892 | |||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | |||||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||
Goodwill and Intangible Assets | ' | |||||||||||||||||||||
Goodwill and Intangible Assets | ||||||||||||||||||||||
Components of intangible assets consist of the following (in thousands): | ||||||||||||||||||||||
December 28, 2013 | September 28, 2013 | |||||||||||||||||||||
Cost | Accumulated Amortization | Net Value | Cost | Accumulated Amortization | Net Value | Economic Life | ||||||||||||||||
Goodwill | $ | 36,729 | $ | — | $ | 36,729 | $ | 36,729 | $ | — | $ | 36,729 | N/A | |||||||||
Intangibles: | ||||||||||||||||||||||
Tradename/trademarks | $ | 17,530 | $ | (824 | ) | $ | 16,706 | $ | 17,530 | $ | (672 | ) | $ | 16,858 | 20 – 30 yrs | |||||||
Customer relationships | 7,220 | (3,027 | ) | 4,193 | 7,220 | (2,937 | ) | 4,283 | 20 yrs | |||||||||||||
Technology | 1,220 | (490 | ) | 730 | 1,220 | (459 | ) | 761 | 10 yrs | |||||||||||||
License agreements | 2,100 | (36 | ) | 2,064 | 2,100 | (10 | ) | 2,090 | 15 – 30 yrs | |||||||||||||
Non-compete agreements | 1,287 | (483 | ) | 804 | 1,287 | (442 | ) | 845 | 4 – 8.5 yrs | |||||||||||||
Total intangibles | $ | 29,357 | $ | (4,860 | ) | $ | 24,497 | $ | 29,357 | $ | (4,520 | ) | $ | 24,837 | ||||||||
Amortization expense for intangible assets was $0.3 million for the three months ended December 28, 2013, and $0.1 million for the three months ended December 29, 2012. Amortization expense is estimated to be approximately $1.4 million each for fiscal years 2014 and 2015 and $1.3 million for fiscal years 2016, 2017 and 2018. |
Selling_General_and_Administra1
Selling, General and Administrative Expense (Policies) | 3 Months Ended |
Dec. 28, 2013 | |
Selling, General and Administrative Expense [Abstract] | ' |
Selling, General and Administrative Expenses | ' |
We include in selling, general and administrative ("SG&A") expenses costs incurred subsequent to the receipt of finished goods at our distribution facilities, such as the cost of stocking, warehousing, picking and packing, and shipping goods for delivery to our customers. |
Salt_Life_Acquisition_Tables
Salt Life Acquisition (Tables) | 3 Months Ended | |||||
Dec. 28, 2013 | ||||||
Business Combinations [Abstract] | ' | |||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | ' | |||||
We have identified certain intangible assets associated with Salt Life, including trade name and trademarks, license agreements, non-compete agreements and goodwill. The total amount of goodwill is expected to be deductible for tax purposes. Components of the intangible assets recorded at acquisition are as follows: | ||||||
Economic Life | ||||||
Goodwill | $ | 19,917 | N/A | |||
Intangibles: | ||||||
Tradename/trademarks | 16,000 | 30 yrs | ||||
License agreements | 2,100 | 15 – 30 yrs | ||||
Non-compete agreements | 770 | 6.6 yrs | ||||
Total intangibles | 18,870 | |||||
Total goodwill and intangibles | $ | 38,787 | ||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | |||||||
Dec. 28, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventories, Net of Reserves | ' | |||||||
Inventories, net of reserves of $6.6 million as of December 28, 2013, and $6.9 million as of September 28, 2013, consist of the following (in thousands): | ||||||||
December 28, | September 28, | |||||||
2013 | 2013 | |||||||
Raw materials | $ | 10,993 | $ | 11,917 | ||||
Work in process | 14,429 | 15,121 | ||||||
Finished goods | 148,776 | 138,152 | ||||||
$ | 174,198 | $ | 165,190 | |||||
Purchase_Contracts_Tables
Purchase Contracts (Tables) | 3 Months Ended | |||
Dec. 28, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Purchase contracts minimum payments | ' | |||
At December 28, 2013, minimum payments under these contracts were as follows (in thousands): | ||||
Yarn | $ | 3,866 | ||
Natural Gas | 800 | |||
Finished fabric | 793 | |||
Finished products | 22,020 | |||
$ | 27,479 | |||
Business_Segments_Tables
Business Segments (Tables) | 3 Months Ended | |||||||||||
Dec. 28, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment reporting information by segment | ' | |||||||||||
Information about our operations as of and for the three months ended December 28, 2013, and December 29, 2012, by operating segment, is as follows (in thousands): | ||||||||||||
Basics | Branded | Consolidated | ||||||||||
Three months ended December 28, 2013 | ||||||||||||
Net sales | $ | 58,578 | $ | 41,434 | $ | 100,012 | ||||||
Segment operating earnings (loss) | 2,447 | (3,121 | ) | (674 | ) | |||||||
Segment assets * | 163,084 | 182,311 | 345,395 | |||||||||
Three months ended December 29, 2012 | ||||||||||||
Net sales | $ | 58,802 | $ | 47,948 | $ | 106,750 | ||||||
Segment operating earnings (loss) | 3,641 | (2,795 | ) | 846 | ||||||||
Segment assets * | 164,992 | 144,947 | 309,939 | |||||||||
* | All goodwill and intangibles on our balance sheet are included in the branded segment. | |||||||||||
Reconciliation of segment operating income to consolidated income before income taxes | ' | |||||||||||
The following reconciles the segment operating (loss) earnings to the Company's consolidated loss before benefit from income taxes before income taxes (in thousands): | ||||||||||||
Three Months Ended | ||||||||||||
December 28, | December 29, | |||||||||||
2013 | 2012 | |||||||||||
Segment operating (loss) earnings | $ | (674 | ) | $ | 846 | |||||||
Unallocated interest expense | 1,458 | 887 | ||||||||||
Consolidated loss before benefit from income taxes | $ | (2,132 | ) | $ | (41 | ) |
Derivatives_and_Fair_Value_Mea1
Derivatives and Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||
Dec. 28, 2013 | |||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||
Outstanding financial instruments | ' | ||||||||||||||
These financial instruments are not used for trading or speculative purposes. | |||||||||||||||
Effective Date | Notational | Fixed LIBOR Rate | Maturity Date | ||||||||||||
Amount | |||||||||||||||
Interest Rate Swap | September 9, 2013 | $15 million | 1.17 | % | September 9, 2016 | ||||||||||
Interest Rate Swap | September 9, 2013 | $15 million | 1.648 | % | September 11, 2017 | ||||||||||
Interest Rate Swap | September 19, 2013 | $15 million | 1.003 | % | September 19, 2016 | ||||||||||
Interest Rate Swap | September 19, 2013 | $15 million | 1.449 | % | September 19, 2017 | ||||||||||
Interest Rate Swap | September 1, 2011 | $10 million | 1.07 | % | September 1, 2014 | ||||||||||
Interest Rate Swap | September 1, 2011 | $10 million | 0.9025 | % | March 1, 2014 | ||||||||||
Financial liabilities measure at fair value on a recurring basis | ' | ||||||||||||||
The following financial liabilities are measured at fair value on a recurring basis (in thousands): | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||
Period Ended | Total | Quoted Prices in | Significant Other | Significant | |||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||
(Level 1) | (Level 3) | ||||||||||||||
Interest Rate Swaps | |||||||||||||||
December 28, 2013 | $ | 767 | — | $ | 767 | — | |||||||||
September 28, 2013 | $ | 906 | — | $ | 906 | — | |||||||||
Contingent Consideration | |||||||||||||||
December 28, 2013 | $ | 3,400 | — | — | $ | 3,400 | |||||||||
September 28, 2013 | $ | 3,400 | — | — | $ | 3,400 | |||||||||
Summary of fair value and presentation in the consolidated balance sheets for derivatives | ' | ||||||||||||||
The following table summarizes the fair value and presentation in the Condensed Consolidated Balance Sheets for derivatives as of December 28, 2013, and June 29, 2013. | |||||||||||||||
December 28, | September 28, | ||||||||||||||
2013 | 2013 | ||||||||||||||
Accrued expenses | $ | 67 | $ | 100 | |||||||||||
Deferred tax liabilities | (295 | ) | (349 | ) | |||||||||||
Other liabilities | 700 | 806 | |||||||||||||
Accumulated other comprehensive loss | $ | 472 | $ | 557 | |||||||||||
License_Agreements_Tables
License Agreements (Tables) | 3 Months Ended | |||
Dec. 28, 2013 | ||||
Commitments and Contingencies [Abstract] | ' | |||
Schedule of future minimum royalty payments | ' | |||
At December 28, 2013, based on minimum sales requirements, future minimum royalty payments required under these license agreements were as follows (in thousands): | ||||
Fiscal Year | Amount | |||
2014 | $ | 955 | ||
2015 | 721 | |||
2016 | 195 | |||
2017 | 21 | |||
$ | 1,892 | |||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||
Components of Intangible Assets | ' | |||||||||||||||||||||
Components of intangible assets consist of the following (in thousands): | ||||||||||||||||||||||
December 28, 2013 | September 28, 2013 | |||||||||||||||||||||
Cost | Accumulated Amortization | Net Value | Cost | Accumulated Amortization | Net Value | Economic Life | ||||||||||||||||
Goodwill | $ | 36,729 | $ | — | $ | 36,729 | $ | 36,729 | $ | — | $ | 36,729 | N/A | |||||||||
Intangibles: | ||||||||||||||||||||||
Tradename/trademarks | $ | 17,530 | $ | (824 | ) | $ | 16,706 | $ | 17,530 | $ | (672 | ) | $ | 16,858 | 20 – 30 yrs | |||||||
Customer relationships | 7,220 | (3,027 | ) | 4,193 | 7,220 | (2,937 | ) | 4,283 | 20 yrs | |||||||||||||
Technology | 1,220 | (490 | ) | 730 | 1,220 | (459 | ) | 761 | 10 yrs | |||||||||||||
License agreements | 2,100 | (36 | ) | 2,064 | 2,100 | (10 | ) | 2,090 | 15 – 30 yrs | |||||||||||||
Non-compete agreements | 1,287 | (483 | ) | 804 | 1,287 | (442 | ) | 845 | 4 – 8.5 yrs | |||||||||||||
Total intangibles | $ | 29,357 | $ | (4,860 | ) | $ | 24,497 | $ | 29,357 | $ | (4,520 | ) | $ | 24,837 | ||||||||
Basis_of_Presentation_Basis_of
Basis of Presentation Basis of Presentation (Details) | 3 Months Ended |
Dec. 28, 2013 | |
Basis of Presentation [Abstract] | ' |
Weeks in fiscal year, minimum | 'P52W |
Weeks in fiscal year, maximum | 'P53W |
Salt_Life_Acquisition_Details
Salt Life Acquisition (Details) (USD $) | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||||||||||
Dec. 06, 2013 | Dec. 28, 2013 | Sep. 28, 2013 | Aug. 27, 2013 | Dec. 28, 2013 | Aug. 27, 2013 | Aug. 27, 2013 | Aug. 27, 2013 | Aug. 27, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Aug. 27, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Aug. 27, 2013 | Dec. 28, 2013 | Dec. 06, 2013 | Dec. 06, 2013 | |
installment | Salt Life Acquisition [Member] | Salt Life Acquisition [Member] | Promissory Note [Member] | Tradename/Trademarks [Member] | License Agreements [Member] | Noncompete Agreements [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Accrued Liabilities [Member] | Other Liabilities [Member] | |||
Salt Life Acquisition [Member] | Salt Life Acquisition [Member] | Salt Life Acquisition [Member] | Salt Life Acquisition [Member] | Tradename/Trademarks [Member] | License Agreements [Member] | License Agreements [Member] | Noncompete Agreements [Member] | Tradename/Trademarks [Member] | License Agreements [Member] | License Agreements [Member] | Noncompete Agreements [Member] | ||||||||
debt_instrument | Salt Life Acquisition [Member] | Salt Life Acquisition [Member] | |||||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration | ' | $3,400,000 | $3,400,000 | ' | $3,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual agreements | 3,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Quarterly Installments | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payment at closing | ' | ' | ' | 12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deposit at closing | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual Obligation, Due In Next Fiscal Quarter | 1,550,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Duration of cash held in escrow | ' | ' | ' | '54 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of promissory notes delivered (debt instruments) | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Principal of promissory notes | ' | ' | ' | ' | ' | 22,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | ' | 36,729,000 | 36,729,000 | 19,917,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangibles | ' | ' | ' | 18,870,000 | ' | ' | 16,000,000 | 2,100,000 | 770,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total goodwill and intangibles | ' | ' | ' | 38,787,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangibles, economic life | ' | ' | ' | ' | ' | ' | '30 years | ' | '6 years 7 months 6 days | '20 years | '15 years | '15 years | '4 years | '30 years | '30 years | '30 years | '8 years 6 months | ' | ' |
Contractual Obligation, Amount of Quarterly Installment Payments | 195,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent Liability, at Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,300,000 | $800,000 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 |
Inventory Disclosure [Abstract] | ' | ' |
Inventory valuation reserves | $6,600,000 | $6,900,000 |
Inventories, net of reserves: | ' | ' |
Raw materials | 10,993,000 | 11,917,000 |
Work in process | 14,429,000 | 15,121,000 |
Finished goods | 148,776,000 | 138,152,000 |
Inventories, net | $174,198,000 | $165,190,000 |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 | Oct. 31, 2013 | Oct. 31, 2013 | Dec. 28, 2013 | Aug. 27, 2013 | Aug. 27, 2013 | Aug. 27, 2013 | Dec. 28, 2013 | Mar. 31, 2011 | Dec. 28, 2013 | Mar. 31, 2011 | Dec. 28, 2013 | Oct. 31, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Aug. 27, 2013 | Aug. 27, 2013 | Dec. 28, 2013 |
Term Loan [Member] | Banco Ficohsa, Loan 1 [Member] | Banco Ficohsa, Loan 1 [Member] | Promissory Note, Maturity Date June 30, 2016 [Member] | Promissory Note, Maturity Date June 30, 2019 [Member] | Amended Loan Agreement [Member] | Revolving Credit Facility, due May 2016 [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Term Loan [Member] | Banco Ficohsa, Loan 2 [Member] | Banco Ficohsa, Loan 2 [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | First In Last Out Tranche B [Member] | Salt Life Acquisition [Member] | Salt Life Acquisition [Member] | |||
debt_instrument | Term Loan [Member] | Term Loan [Member] | Promissory Note [Member] | Promissory Note [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Loans Payable [Member] | Loans Payable [Member] | Term Loan [Member] | Term Loan [Member] | Amended Loan Agreement [Member] | Revolving Credit Facility, due May 2016 [Member] | Amended Loan Agreement [Member] | Amended Loan Agreement [Member] | Promissory Note [Member] | Promissory Note [Member] | ||||
Revolving Credit Facility [Member] | debt_instrument | ||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unused borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | $26,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average interest rate under outstanding credit facility (percentage) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' | 2.00% | ' | ' | ' |
Amount of availability, percent of borrowing base (percent) | 12.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of availability, benchmark | 145,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of promissory notes issued (debt instruments) | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' |
Extension period | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase to borrowing capacity | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase to borrowing capacity (percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' |
Line of credit after increase pursuant to amended loan agreement | 145,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Potential maximum credit available under the facility | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding under credit facility | ' | ' | ' | ' | ' | ' | ' | ' | 98,000,000 | ' | 4,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Interest Rate During Period | ' | ' | ' | ' | ' | ' | ' | ' | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Imputed interest (percent) | ' | ' | ' | ' | ' | 1.92% | 3.62% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed charge coverage ratio, term | ' | ' | ' | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.1 | ' | ' | ' | ' |
Retained earnings free of restrictions | 9,100,000 | 9,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | ' | 4,200,000 | ' | ' | ' | ' | ' | ' |
Aggregate Principal of promissory notes | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,200,000 | ' | ' | ' | ' | ' | 22,000,000 | ' |
Discounted value of promissory notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20,600,000 |
Stated interest rate (percent) | ' | ' | ' | 7.00% | ' | ' | ' | ' | ' | 7.00% | ' | 7.00% | ' | 7.00% | ' | ' | ' | ' | ' | 0.00% | ' |
Debt instrument, term | ' | ' | ' | '18 months | ' | ' | ' | ' | ' | '18 years | ' | '7 years | ' | '7 years | ' | ' | ' | ' | ' | ' | ' |
Periodic payment duration | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Selling_General_and_Administra2
Selling, General and Administrative Expense (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Selling, General and Administratie Expense [Abstract] | ' | ' |
Distribution costs | $3.90 | $4.20 |
Stockbased_Compensation_Narrat
Stock-based Compensation (Narrative) (Details) (USD $) | 3 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Exercises in period (shares) | 28,000 | ' |
2010 Stock Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Aggregate number of shares that may be delivered (shares) | 500,000 | ' |
Allocated share-based compensation expense | $500,000 | $300,000 |
Total compensation cost not yet recognized | 1,200,000 | ' |
Period for recognition | '1 year 8 months 12 days | ' |
Option Plan [Member] | Stock Options [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Allocated share-based compensation expense | $0 | ' |
Purchase_Contracts_Details
Purchase Contracts (Details) (USD $) | Dec. 28, 2013 |
In Thousands, unless otherwise specified | |
Long-term Purchase Commitment [Line Items] | ' |
Oustanding minimum payments | $27,479 |
Yarn [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Oustanding minimum payments | 3,866 |
Natural Gas [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Oustanding minimum payments | 800 |
Finished Fabric [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Oustanding minimum payments | 793 |
Finished Products [Member] | ' |
Long-term Purchase Commitment [Line Items] | ' |
Oustanding minimum payments | $22,020 |
Business_Segments_Details
Business Segments (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | ||
segment | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Number of business segments | 2 | ' | ' | ||
Net sales | $100,012 | $106,750 | ' | ||
Segment operating income (loss) | -674 | 846 | ' | ||
Segment assets | 345,395 | [1] | 309,939 | [1] | 351,762 |
Payments to Acquire Property, Plant, and Equipment | 4,014 | 2,163 | ' | ||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ' | ' | ' | ||
Segment operating income (loss) | -674 | 846 | ' | ||
Unallocated interest expense | 1,458 | 887 | ' | ||
Loss before benefit from income taxes | -2,132 | -41 | ' | ||
Basics [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Net sales | 58,578 | 58,802 | ' | ||
Segment operating income (loss) | 2,447 | 3,641 | ' | ||
Segment assets | 163,084 | 164,992 | ' | ||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ' | ' | ' | ||
Segment operating income (loss) | 2,447 | 3,641 | ' | ||
Branded [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Net sales | 41,434 | 47,948 | ' | ||
Segment operating income (loss) | -3,121 | -2,795 | ' | ||
Segment assets | 182,311 | 144,947 | ' | ||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ' | ' | ' | ||
Segment operating income (loss) | -3,121 | -2,795 | ' | ||
Operating segments [Member] | ' | ' | ' | ||
Segment Reporting Information [Line Items] | ' | ' | ' | ||
Segment operating income (loss) | -674 | 846 | ' | ||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ' | ' | ' | ||
Segment operating income (loss) | -674 | 846 | ' | ||
Unallocated amount to segment [Member] | ' | ' | ' | ||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ' | ' | ' | ||
Unallocated interest expense | $1,458 | $887 | ' | ||
[1] | *Â All goodwill and intangibles on our balance sheet are included in the branded segment. |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | 12 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Effective income tax rate (percent) | 25.10% | 212.20% | 7.30% |
Estimated effective income tax rate for fiscal year, minimum (percent) | 24.00% | ' | ' |
Estimated effective income tax rate for fiscal year, maximum (percent) | 25.00% | ' | ' |
Derivatives_and_Fair_Value_Mea2
Derivatives and Fair Value Measurements (Details) (USD $) | Dec. 28, 2013 | Sep. 28, 2013 | Dec. 28, 2013 | Sep. 28, 2013 | Dec. 28, 2013 | Sep. 28, 2013 | Dec. 28, 2013 | Sep. 28, 2013 | Dec. 28, 2013 | Sep. 28, 2013 | Dec. 28, 2013 | Sep. 28, 2013 | Dec. 28, 2013 | Sep. 28, 2013 | Dec. 28, 2013 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 29, 2012 | Sep. 29, 2012 | Sep. 29, 2012 | Sep. 29, 2012 | Sep. 29, 2012 |
Accrued Liabilities [Member] | Accrued Liabilities [Member] | Deferred Tax Liabilities [Member] | Deferred Tax Liabilities [Member] | Other Liabilities [Member] | Other Liabilities [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Other Comprehensive Loss [Member] | Total [Member] | Total [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Other Observable Inputs (Level 2) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Significant Unobservable Inputs (Level 3) [Member] | Maturity Date 9/9/2016 [Member] | Maturity Date 9/11/2017 [Member] | Maturity Date 9/19/2016 [Member] | Maturity Date 9/19/2017 [Member] | Maturity Date 9/1/2014 [Member] | Maturity Date 3/1/2014 [Member] | |
Interest Rate Derivatives [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,000,000 | $15,000,000 | $15,000,000 | $15,000,000 | $10,000,000 | $10,000,000 |
Fixed LIBOR Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.17% | 1.65% | 1.00% | 1.45% | 1.07% | 0.90% |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Rate Swap | ' | ' | ' | ' | ' | ' | ' | ' | 767,000 | 906,000 | 0 | 0 | 767,000 | 906,000 | 0 | 0 | ' | ' | ' | ' | ' | ' |
Contingent Consideration | ' | ' | ' | ' | ' | ' | ' | ' | 3,400,000 | 3,400,000 | 0 | 0 | 0 | 0 | 3,400,000 | 3,400,000 | ' | ' | ' | ' | ' | ' |
Derivative liabilities, fair value | $67,000 | $100,000 | ($295,000) | ($349,000) | $700,000 | $806,000 | $472,000 | $557,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Legal_Proceedings_Details
Legal Proceedings (Details) (USD $) | Dec. 28, 2013 |
Pending Litigation [Member] | ' |
Loss Contingencies [Line Items] | ' |
Recommended civil penalty | $900,000 |
Minimum estimated loss | 25,000 |
California Wage and Hour Litigation [Member] | ' |
Loss Contingencies [Line Items] | ' |
Minimum estimated loss | 15,000 |
Maximum estimated loss | $975,000 |
Repurchase_of_Common_Stock_Det
Repurchase of Common Stock (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Jun. 29, 2013 | Dec. 28, 2013 | Dec. 29, 2012 |
Equity [Abstract] | ' | ' | ' |
Authorized amount | $30 | ' | ' |
Shares repurchased (shares) | ' | 0 | 139,797 |
Aggregated number of shares repurchased (shares) | ' | 2,043,571 | ' |
Shares repurchased, value | ' | 0 | 2 |
Aggregated shares repurchased, value | ' | 24.1 | ' |
Remaining authorized amount | ' | 5.9 | ' |
Purchases of Common Stock [Abstract] | ' | ' | ' |
Dollar value of shares that may yet be purchased under the plans | ' | $5.90 | ' |
License_Agreements_Details
License Agreements (Details) (USD $) | 3 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
Commitments and Contingencies [Abstract] | ' | ' |
Royalty expense | $2,400,000 | $3,700,000 |
License Agreements, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' |
2014 | 955,000 | ' |
2015 | 721,000 | ' |
2016 | 195,000 | ' |
2017 | 21,000 | ' |
Total due | $1,892,000 | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | |
Goodwill and Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Goodwill, Cost | $36,729,000 | ' | $36,729,000 |
Goodwill, Accumulated Amortization | 0 | ' | 0 |
Goodwill, Net Value | 36,729,000 | ' | 36,729,000 |
Intangibles, Cost | 29,357,000 | ' | 29,357,000 |
Intangibles, Accumulated Amortization | -4,860,000 | ' | -4,520,000 |
Intangibles, Net Value | 24,497,000 | ' | 24,837,000 |
Amortization of intangible assets | 300,000 | 100,000 | ' |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ' | ' | ' |
Amortization expense estimate for 2014 | 1,400,000 | ' | ' |
Amortization expense estimate for 2015 | 1,400,000 | ' | ' |
Amortization expense estimate for 2016 | 1,300,000 | ' | ' |
Amortization expense estimate for 2017 | 1,300,000 | ' | ' |
Amortization expense estimate for 2018 | 1,300,000 | ' | ' |
Tradename/Trademarks [Member] | ' | ' | ' |
Goodwill and Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangibles, Cost | 17,530,000 | ' | 17,530,000 |
Intangibles, Accumulated Amortization | -824,000 | ' | -672,000 |
Intangibles, Net Value | 16,706,000 | ' | 16,858,000 |
Tradename/Trademarks [Member] | Minimum [Member] | ' | ' | ' |
Goodwill and Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangibles, economic life | '20 years | ' | ' |
Tradename/Trademarks [Member] | Maximum [Member] | ' | ' | ' |
Goodwill and Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangibles, economic life | '30 years | ' | ' |
Customer Relationships [Member] | ' | ' | ' |
Goodwill and Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangibles, Cost | 7,220,000 | ' | 7,220,000 |
Intangibles, Accumulated Amortization | -3,027,000 | ' | -2,937,000 |
Intangibles, Net Value | 4,193,000 | ' | 4,283,000 |
Intangibles, economic life | '20 years | ' | ' |
Technology [Member] | ' | ' | ' |
Goodwill and Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangibles, Cost | 1,220,000 | ' | 1,220,000 |
Intangibles, Accumulated Amortization | -490,000 | ' | -459,000 |
Intangibles, Net Value | 730,000 | ' | 761,000 |
Intangibles, economic life | '10 years | ' | ' |
License Agreements [Member] | ' | ' | ' |
Goodwill and Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangibles, Cost | 2,100,000 | ' | 2,100,000 |
Intangibles, Accumulated Amortization | -36,000 | ' | -10,000 |
Intangibles, Net Value | 2,064,000 | ' | 2,090,000 |
License Agreements [Member] | Minimum [Member] | ' | ' | ' |
Goodwill and Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangibles, economic life | '15 years | ' | ' |
License Agreements [Member] | Maximum [Member] | ' | ' | ' |
Goodwill and Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangibles, economic life | '30 years | ' | ' |
Non-compete Agreements [Member] | ' | ' | ' |
Goodwill and Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangibles, Cost | 1,287,000 | ' | 1,287,000 |
Intangibles, Accumulated Amortization | -483,000 | ' | -442,000 |
Intangibles, Net Value | $804,000 | ' | $845,000 |
Non-compete Agreements [Member] | Minimum [Member] | ' | ' | ' |
Goodwill and Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangibles, economic life | '4 years | ' | ' |
Non-compete Agreements [Member] | Maximum [Member] | ' | ' | ' |
Goodwill and Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangibles, economic life | '8 years 6 months | ' | ' |