Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Nov. 14, 2017 | Apr. 01, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | DELTA APPAREL, INC | ||
Entity Central Index Key | 1,101,396 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Sep. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 7,244,686 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 122.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Oct. 01, 2016 |
Assets | ||
Cash and cash equivalents | $ 572 | $ 397 |
Accounts receivable, net | 47,304 | 63,013 |
Other receivables | 253 | 596 |
Income tax receivable | 352 | 86 |
Inventories, net | 174,551 | 164,247 |
Note receivable | 2,016 | 0 |
Prepaid expenses and other current assets | 2,646 | 4,145 |
Total current assets | 227,694 | 232,484 |
Property, plant and equipment, net | 42,706 | 43,503 |
Goodwill | 19,917 | 36,729 |
Intangible assets, net | 16,151 | 20,922 |
Deferred income taxes | 5,002 | 5,246 |
Other assets | 6,332 | 5,768 |
Total assets | 317,802 | 344,652 |
Liabilities: | ||
Accounts payable | 47,183 | 51,395 |
Accrued expenses | 17,704 | 21,706 |
Current portion of long-term debt | 7,548 | 9,192 |
Total current liabilities | 72,435 | 82,293 |
Long-term debt, less current maturities | 85,306 | 106,603 |
Other liabilities | 2,574 | 1,241 |
Contingent consideration | 1,600 | 2,500 |
Total liabilities | 161,915 | 192,637 |
Commitments and contingencies | ||
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 7,300,297 and 7,609,727 shares outstanding as of September 30, 2017, and October 1, 2016, respectively | 96 | 96 |
Additional paid-in capital | 61,065 | 60,847 |
Retained earnings | 127,358 | 116,679 |
Accumulated other comprehensive loss | (35) | (112) |
Treasury stock —2,346,675 and 2,037,245 shares as of September 30, 2017, and October 1, 2016, respectively | (32,597) | (25,495) |
Total shareholders’ equity | 155,887 | 152,015 |
Total liabilities and shareholders’ equity | $ 317,802 | $ 344,652 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Oct. 01, 2016 |
Shareholders' equity: | ||
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 15,000,000 | 15,000,000 |
Common stock, shares issued (shares) | 9,646,972 | 9,646,972 |
Common stock, shares outstanding (shares) | 7,300,297 | 7,609,727 |
Treasury stock, shares (shares) | 2,346,675 | 2,037,245 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 385,082 | $ 425,249 | $ 449,142 |
Cost of goods sold | 304,360 | 331,750 | 360,823 |
Gross profit | 80,722 | 93,499 | 88,319 |
Selling, general and administrative expenses | 67,408 | 76,578 | 81,086 |
Change in fair value of contingent consideration | (900) | (600) | (500) |
Gain on sale of business | (1,295) | 0 | (7,704) |
Other income, net | (670) | (552) | (682) |
Restructuring costs | 0 | 1,741 | 0 |
Operating income | 16,179 | 16,332 | 16,119 |
Interest expense | 5,011 | 5,287 | 6,021 |
Earnings before provision for income taxes | 11,168 | 11,045 | 10,098 |
Provision for income taxes | 657 | 2,081 | 2,005 |
Net earnings | $ 10,511 | $ 8,964 | $ 8,093 |
Basic earnings (loss) per share (usd per share) | $ 1.40 | $ 1.16 | $ 1.03 |
Diluted earnings (loss) per share (usd per share) | $ 1.33 | $ 1.12 | $ 1 |
Weighted average number of shares outstanding (shares) | 7,531 | 7,726 | 7,874 |
Dilutive effect of stock options and awards (shares) | 351 | 253 | 206 |
Weighted average number of shares assuming dilution (shares) | 7,882 | 7,979 | 8,080 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 10,511 | $ 8,964 | $ 8,093 |
Other comprehensive income (loss) related to unrealized gain (loss) on derivatives, net of income tax | 77 | 317 | (160) |
Comprehensive income | $ 10,588 | $ 9,281 | $ 7,933 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning Balance at Sep. 27, 2014 | $ 138,207 | $ 96 | $ 59,649 | $ 99,622 | $ (269) | $ (20,891) |
Beginning Balance, shares at Sep. 27, 2014 | 9,646,972 | 1,769,298 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings and other comprehensive income (loss) | 7,933 | 8,093 | (160) | |||
Stock grant | (455) | (663) | $ 208 | |||
Stock grant, shares | (42,244) | |||||
Stock options exercised | 198 | (304) | $ 502 | |||
Stock options exercised, shares | (17,584) | |||||
(Reduction) Excess of tax benefits recognized from stock options and awards | (673) | (673) | ||||
Purchase of common stock | (2,101) | $ (2,101) | ||||
Purchase of common stock, shares | 140,336 | |||||
Stock based compensation | 1,390 | 1,390 | ||||
Ending Balance at Oct. 03, 2015 | 144,499 | $ 96 | 59,399 | 107,715 | (429) | $ (22,282) |
Ending Balance, shares at Oct. 03, 2015 | 9,646,972 | 1,849,806 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings and other comprehensive income (loss) | 9,281 | 8,964 | 317 | |||
Stock grant | (163) | (493) | $ 330 | |||
Stock grant, shares | (30,129) | |||||
(Reduction) Excess of tax benefits recognized from stock options and awards | 89 | 89 | ||||
Purchase of common stock | (3,543) | $ (3,543) | ||||
Purchase of common stock, shares | 217,568 | |||||
Stock based compensation | 1,852 | 1,852 | ||||
Ending Balance at Oct. 01, 2016 | 152,015 | $ 96 | 60,847 | 116,679 | (112) | $ (25,495) |
Ending Balance, shares at Oct. 01, 2016 | 9,646,972 | 2,037,245 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings and other comprehensive income (loss) | 10,588 | 10,511 | 77 | |||
Stock grant | (837) | (1,476) | $ 639 | |||
Stock grant, shares | (72,991) | |||||
Stock options exercised | (331) | (385) | $ 54 | |||
Stock options exercised, shares | (30,916) | |||||
(Reduction) Excess of tax benefits recognized from stock options and awards | 79 | (89) | 168 | |||
Purchase of common stock | (7,795) | $ (7,795) | ||||
Purchase of common stock, shares | 413,337 | |||||
Stock based compensation | 2,168 | 2,168 | ||||
Ending Balance at Sep. 30, 2017 | $ 155,887 | $ 96 | $ 61,065 | $ 127,358 | $ (35) | $ (32,597) |
Ending Balance, shares at Sep. 30, 2017 | 9,646,972 | 2,346,675 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Operating activities: | |||
Net earnings | $ 10,511 | $ 8,964 | $ 8,093 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation | 8,489 | 8,295 | 8,204 |
Amortization of intangibles | 1,120 | 1,330 | 1,338 |
Amortization of deferred financing fees | 323 | 413 | 517 |
Excess tax benefits (deficit) from stock awards and option exercises | 89 | (89) | (2) |
Provision for deferred income taxes | 322 | 2,048 | 786 |
Benefit from allowances on accounts receivable, net | (544) | (1,007) | (175) |
Non-cash stock compensation | 1,872 | 1,852 | 1,390 |
Change in fair value of contingent consideration | (900) | (600) | (500) |
Loss on disposal of equipment | 65 | 108 | 29 |
Fixed asset impairment charge | 0 | 607 | 0 |
Changes in operating assets and liabilities, net of effect of acquisitions: | |||
Accounts receivable | 16,596 | 140 | 6,236 |
Inventories, net | (13,782) | (15,662) | 7,730 |
Prepaid expenses and other current assets | 863 | (1,302) | 376 |
Other non-current assets | (894) | (346) | (308) |
Accounts payable | (4,201) | (2,217) | (4,370) |
Accrued expenses | (4,451) | (420) | 158 |
Income taxes | (355) | (84) | 1,447 |
Other liabilities | 110 | 170 | (528) |
Net cash provided by operating activities | 13,938 | 2,200 | 22,307 |
Investing activities: | |||
Purchases of property and equipment | (7,085) | (12,315) | (7,773) |
Proceeds from sale of property and equipment | 1 | 1,861 | 470 |
Cash paid for businesses, net of cash acquired | 0 | (313) | 0 |
Net cash provided by (used in) investing activities | 18,916 | (10,767) | 7,610 |
Financing activities: | |||
Proceeds from long-term debt | 453,860 | 488,093 | 497,364 |
Repayment of long-term debt | (476,801) | (474,510) | (525,125) |
Payment of capital financing | (633) | (350) | (150) |
Payment of financing fees | 0 | (1,018) | (42) |
Repurchase of common stock | (7,938) | (3,477) | (2,023) |
Proceeds from exercise of stock options | 0 | 0 | 59 |
Payment of withholding taxes on stock awards and option exercises | (1,167) | (163) | (314) |
Excess tax benefits from stock awards and option exercises | 0 | 89 | 2 |
Net cash (used in) provided by financing activities | (32,679) | 8,664 | (30,229) |
Net increase (decrease) in cash and cash equivalents | 175 | 97 | (312) |
Cash and cash equivalents at beginning of period | 397 | 300 | 612 |
Cash and cash equivalents at end of period | 572 | 397 | 300 |
Supplemental cash flow information: | |||
Cash paid during the period for interest | 4,372 | 4,273 | 4,803 |
Cash paid (received) during the period for income taxes, net of refunds received | 506 | 308 | (328) |
Non-cash financing activity—shortfall to excess tax benefit pool | 0 | 0 | 673 |
Non-cash financing activity—capital lease agreement | 2,347 | 781 | 0 |
Accrued capital expenditures | 0 | 1,615 | 0 |
Discontinued Operations, Disposed of by Sale | Junkfood | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Gain on sale of assets | (1,295) | 0 | 0 |
Investing activities: | |||
Proceeds from sale of The Game assets | 26,000 | 0 | 0 |
Discontinued Operations, Disposed of by Sale | The Game | |||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Gain on sale of assets | 0 | 0 | (8,114) |
Investing activities: | |||
Proceeds from sale of The Game assets | $ 0 | $ 0 | $ 14,913 |
The Company
The Company | 12 Months Ended |
Sep. 30, 2017 | |
The Company [Abstract] | |
The Company | THE COMPANY Delta Apparel, Inc. is an international apparel design, marketing, manufacturing and sourcing company that features a diverse portfolio of lifestyle basics and branded activewear apparel, headwear and related accessory products. We specialize in selling casual and athletic products through a variety of distribution channels and distribution tiers, including department stores, mid and mass channels, e-retailers, sporting goods and outdoor retailers, independent and specialty stores, and the U.S. military. Our products are also made available direct-to-consumer on our websites and in our branded retail stores. We believe this diversified distribution allows us to capitalize on our strengths to provide casual activewear to consumers purchasing from most types of retailers. We design and internally manufacture the majority of our products, which allows us to offer a high degree of consistency and quality controls as well as leverage scale efficiencies. One of our strengths is the speed with which we can reach the market from design to delivery. 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. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation: Our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America and include the accounts of Delta Apparel and its wholly-owned domestic and foreign subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. We apply the equity method of accounting for investments in companies where we have less than a 50% ownership interest and over which we exert significant influence. We do not exercise control over these companies and do not have substantive participating rights. As such, these entities are not considered variable interest entities. We operate our business in two distinct segments: basics and branded. Although the two segments are similar in their production processes and regulatory environments, they are distinct in their economic characteristics, products, marketing, and distribution methods. (b) Fiscal Year: We operate on a 52-53 week fiscal year ending on the Saturday closest to September 30. The 2017 and 2016 fiscal years were 52-week years that ended on September 30, 2017, and October 1, 2016, respectively. The 2015 fiscal year was a 53-week year that ended on October 3, 2015. (c) Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts and disclosures of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are adjusted to reflect actual experience when necessary. Significant estimates and assumptions affect many items in our financial statements; for example: allowance for doubtful trade receivables, sales returns and allowances, inventory obsolescence, the carrying value of goodwill, income tax assets and related valuation allowance. Our actual results may differ from our estimates. (d) Cash and Cash Equivalents: Cash and cash equivalents consists of cash and temporary investments with original maturities of three months or less. (e) Accounts Receivable: Accounts receivable consists primarily of receivables from our customers arising from the sale of our products, and we generally do not require collateral from our customers. We actively monitor our exposure to credit risk through the use of credit approvals and credit limits. Accounts receivable is presented net of reserves for allowances which include allowance for doubtful accounts, returns and allowances. The reserves for allowances were $1.4 million and $2.0 million as of September 30, 2017, and October 1, 2016, respectively. We estimate the net collectibility of our accounts receivable and establish an allowance for doubtful accounts based upon this assessment. In situations where we are aware of a specific customer’s inability to meet its financial obligation, such as in the case of a bankruptcy filing, a specific reserve for bad debts is recorded against amounts due to reduce the net recognized receivable to the amount reasonably expected to be collected. For all other customers, reserves are determined through analysis of the aging of accounts receivable balances, historical bad debts, customer concentrations, customer credit-worthiness, current economic trends and changes in customer payment terms. In addition, reserves are established for other concessions that have been extended to customers, including advertising, markdowns and other accommodations, net of historical recoveries. These reserves are determined based upon historical deduction trends and evaluation of current market conditions. Bad debt expense was less than 1% of net sales in each of fiscal years 2017, 2016, and 2015. (f) Inventories: We state inventories at the lower of cost or market using the first-in, first-out method. Inventory cost includes materials, labor and manufacturing overhead on manufactured inventory, and all direct and associated costs, including inbound freight, to acquire sourced products. See Note 2(y) for further information regarding yarn procurements. 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. (g) Property, Plant and Equipment: Property, plant and equipment are stated at cost. We depreciate and amortize our assets on a straight-line method over the estimated useful lives of the assets, which range from three to twenty-five years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the improvements. Assets that we acquire under non-cancelable leases that meet the criteria of capital leases are capitalized in property, plant and equipment and amortized over the useful lives of the related assets. When we retire or dispose of assets, the costs and accumulated depreciation or amortization are removed from the respective accounts, and we recognize any related gain or loss. Repairs and maintenance costs are charged to expense when incurred. Major replacements that substantially extend the useful life of an asset are capitalized and depreciated. (h) Internally Developed Software Costs. We account for internally developed software in accordance with FASB Codification No. 350-40, Intangibles-Goodwill and Other, Internal-Use Software . After technical feasibility has been established, we capitalize the cost of our software development process, including payroll and payroll benefits, by tracking the software development hours invested in the software projects. We amortize our software development costs in accordance with the estimated economic life of the software, which is generally three to ten years. (i) Impairment of Long-Lived Assets (Including Amortizable Intangible Assets): In accordance with FASB Codification No. 360, Property, Plant, and Equipment , our long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. When evaluating assets for potential impairment, we compare the carrying amount of the asset to the undiscounted future net cash flows expected to be generated by the asset. If impairment is indicated, the asset is permanently written down to its estimated fair value (based upon future discounted cash flows) and an impairment loss is recognized. (j) Goodwill and Intangible Assets: We recorded goodwill and intangible assets with definite lives, including trade names and trademarks, customer relationships, technology, and non-compete agreements, in conjunction with the acquisitions of Salt Life, Junkfood, Art Gun, and Coast. On March 31, 2017, we sold the Junkfood business to JMJD Ventures, LLC. See Note 3—Divestitures for further information on this transaction. Intangible assets are amortized based on their estimated economic lives, ranging from four to twenty years. Goodwill represents the excess of the purchase price over the fair value of net identified tangible and intangible assets and liabilities acquired, and is not amortized. The total amount of goodwill is expected to be deductible for tax purposes. See Note 7 — Goodwill and Intangible Assets for further details. (k) Impairment of Goodwill: We evaluate the carrying value of goodwill annually or more frequently if events or circumstances indicate that an impairment loss may have occurred. Such circumstances could include, but are not limited to, a significant adverse change in business climate, increased competition or other economic conditions. We complete our annual impairment test of goodwill on the first day of our third fiscal quarter. We estimate fair value of the applicable reporting unit or units using a discounted cash flow methodology. This methodology represents a level 3 fair value measurement as defined under ASC 820, Fair Value Measurements and Disclosures , since the inputs are not readily observable in the marketplace. The goodwill impairment testing process involves the use of significant assumptions, estimates and judgments with respect to a variety of factors, including sales, gross margins, selling, general and administrative expenses, capital expenditures, cash flows and the selection of an appropriate discount rate, all of which are subject to inherent uncertainties and subjectivity. When we perform goodwill impairment testing, our assumptions are based on annual business plans and other forecasted results, which we believe represent those of a market participant. We select a discount rate, which is used to reflect market-based estimates of the risks associated with the projected cash flows, based on the best information available as of the date of the impairment assessment. Based on the annual impairment analysis, there is not an impairment on the goodwill associated with Salt Life, the only goodwill recorded on our financial statements. Given the current macro-economic environment and the uncertainties regarding its potential impact on our business, there can be no assurance that our estimates and assumptions used in our impairment tests will prove to be accurate predictions of the future. If our assumptions regarding forecasted cash flows are not achieved, it is possible that an impairment review may be triggered and goodwill may be impaired. (l) Contingent Consideration: At the end of each reporting period, we are required to remeasure the fair value of the contingent consideration related to the Salt Life and Art Gun acquisitions in accordance with FASB Codification No. 805, Business Combinations (“ASC 805”). Based on the operating results and projections, we analyzed the fair value of the contingent consideration for Salt Life as of September 30, 2017. The estimated fair value of the contingent consideration for Salt Life was $1.6 million and $2.5 million at September 30, 2017, and October 1, 2016, respectively. The Art Gun contingent consideration agreement concluded during fiscal year 2017 and no contingent consideration was paid. (m) Self-Insurance Reserves: Prior to January 1, 2015, our medical, prescription and dental care benefits were primarily self-insured. Effective January 1, 2015, our medical and prescription benefits became fully insured, but our dental insurance remained self-insured. Our prior self-insurance accruals were based on claims filed and estimates of claims incurred but not reported. We develop estimates of claims incurred but not reported based upon the historical time it takes for a claim to be reported and paid, and historical claim amounts. Self-insurance reserves were less than $0.1 million as of September 30, 2017, and October 1, 2016 . (n) Revenue Recognition: Revenues from product sales are recognized when ownership is transferred to the customer, which includes not only the passage of title, but also the transfer of the risk of loss related to the product. At this point, the sales price is fixed and determinable, and we are reasonably assured of the collectibility of the sale. The majority of our sales are shipped FOB or Ex Works shipping point and revenue is therefore recognized when the goods are shipped to the customer. For sales that are shipped FOB or Ex Works destination point, we do not recognize the revenue until the goods are received by the customer. Shipping and handling charges billed to our customers are included in net revenue and the related costs are included in cost of goods sold. Revenues are reported on a net sales basis, which is computed by deducting product returns, discounts and estimated returns and allowances. We estimate returns and allowances on an ongoing basis by considering historical and current trends. Royalty revenue is primarily derived from royalties paid to us by licensees of our intellectual property rights, which include, among other things, trademarks and copyrights. We execute license agreements with our licensees detailing the terms of the licensing arrangement. Royalties are generally recognized upon receipt of the licensees' royalty report in accordance with the terms of the executed license agreement and when all other revenue recognition criteria have been met. (o) Sales Tax: Sales tax collected from customers and remitted to various government agencies are presented on a net basis (excluded from revenues) in the Consolidated Statements of Operations. (p) Cost of Goods Sold: We include all manufacturing and sourcing costs incurred prior to the receipt of finished goods at our distribution facilities in cost of goods sold. The cost of goods sold principally includes product cost, purchasing costs, inbound freight charges, insurance, inventory write-downs, and depreciation and amortization expense associated with our manufacturing and sourcing operations. Our gross margins may not be comparable to other companies, since some entities include costs related to their distribution network in cost of goods sold and we exclude them from gross margin, including them instead in selling, general and administrative expenses. (q) Selling, General and Administrative Expense: We include in selling, general and administrative 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 selling, general and administrative expenses totaled $14.6 million , $15.1 million and $16.8 million in fiscal years 2017, 2016, and 2015, respectively. In addition, selling, general and administrative 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. (r) Advertising Costs: All costs associated with advertising and promoting our products are expensed during the year in which they are incurred and are included in selling, general and administrative expenses in the Consolidated Statements of Operations. We participate in cooperative advertising programs with our customers. Depending on the customer, our defined cooperative programs allow the customer to use from 2% to 5% of its net purchases from us towards advertisements of our products. Because our products are being specifically advertised, we are receiving an identifiable benefit resulting from the consideration for cooperative advertising. Therefore, pursuant to FASB Codification No. 605-50, Revenue Recognition, Customers Payments and Incentives , we record cooperative advertising costs as a selling expense and the related cooperative advertising reserve as an accrued liability. Advertising costs totaled $4.6 million , $4.4 million and $4.7 million in fiscal years 2017, 2016, and 2015, respectively. Included in these costs were $1.1 million in fiscal years 2017, 2016, and 2015 related to our cooperative advertising programs. (s) Stock-Based Compensation: Stock-based compensation cost is accounted for under the provisions of FASB Codification No. 718, Compensation – Stock Compensation (“ASC 718”), the Securities and Exchange Commission Staff Accounting Bulletin No. 107 ("SAB 107"), and the Securities and Exchange Commission Staff Accounting Bulletin No. 110 ("SAB 110"). ASC 718 requires all stock-based payments to employees, including grants of employee stock options, to be recognized as expense over the vesting period using a fair value method. The fair value of our restricted stock awards is the quoted market value of our stock on the grant date. For performance-based stock awards, in the event we determine it is no longer probable that we will achieve the minimum performance criteria specified in the award, we reverse all of the previously recognized compensation expense in the period such a determination is made. We recognize the fair value, net of estimated forfeitures, as a component of selling, general and administrative expense in the Consolidated Statements of Operations over the vesting period. We early adopted ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, (ASU 2016-09). For more information, see (aa) Recently Adopted Accounting Pronouncements within Note 2 — Significant Accounting Policies. (t) Income Taxes: We account for income taxes under the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. (u) Earnings per Share: We compute basic earnings per share ("EPS") by dividing net income by the weighted average number of common shares outstanding during the year pursuant to FASB Codification No. 260, Earnings Per Share (“ASC 260”). Basic EPS includes no dilution. Diluted EPS is calculated, as set forth in ASC 260, by dividing net income by the weighted average number of common shares outstanding adjusted for the issuance of potentially dilutive shares. Potential dilutive shares consist of common stock issuable under the assumed exercise of outstanding stock options and awards using the treasury stock method. This method, as required by ASC 718, assumes that the potential common shares are issued and the proceeds from the exercise, along with the amount of compensation expense attributable to future services, are used to purchase common stock at the exercise date. The difference between the number of potential shares issued and the number of shares purchased is added as incremental shares to the actual number of shares outstanding to compute diluted EPS. Outstanding stock options and awards that result in lower potential shares issued than shares purchased under the treasury stock method are not included in the computation of diluted EPS since their inclusion would have an anti-dilutive effect on EPS. (v) Foreign Currency Translation: Our functional currency for our foreign operated manufacturing facilities is the United States dollar. We remeasure those assets and liabilities denominated in foreign currencies using exchange rates in effect at each balance sheet date. Property, plant and equipment and the related accumulated depreciation or amortization are recorded at the exchange rates in effect on the date we acquired the assets. Revenues and expenses denominated in foreign currencies are remeasured using average exchange rates during the period transacted. We recognize the resulting foreign exchange gains and losses as a component of other income and expense in the Consolidated Statements of Operations. These gains and losses are immaterial for all periods presented. (w) Fair Value of Financial Instruments: We use financial instruments in the normal course of our business. The carrying values approximate fair values for financial instruments that are short-term in nature, such as cash, accounts receivable and accounts payable. We estimate that the carrying value of our long-term debt approximates fair value based on the current rates offered to us for debt of the same remaining maturities. (x) Other Comprehensive Income (Loss): Other Comprehensive Income (Loss) consists of net earnings (loss) and unrealized gains (losses) from cash flow hedges, net of tax. Accumulated other comprehensive loss contained in the shareholders’ equity section of the Consolidated Balance Sheets was $35 thousand and $0.1 million as of September 30, 2017, and October 1, 2016, respectively, and was related to interest rate swap agreements. (y) Yarn and Cotton Procurements: We have a supply agreement with Parkdale to supply our yarn requirements until December 31, 2018. Under the supply agreement, we purchase from Parkdale all of our yarn requirements for use in our manufacturing operations, excluding yarns that Parkdale does not manufacture or cannot manufacture due to temporary capacity constraints. The purchase price of yarn is based upon the cost of cotton plus a fixed conversion cost. Thus, we are subject to the commodity risk of cotton prices and cotton price movements, which could result in unfavorable yarn pricing for us. We fix the cotton prices as a component of the purchase price of yarn, pursuant to the supply agreement, in advance of the shipment of finished yarn from Parkdale. Prices are set according to prevailing prices, as reported by the New York Cotton Exchange, at the time we elect to fix specific cotton prices. (z) Derivatives: From time to time we enter into forward contracts, option agreements or other instruments to limit our exposure to fluctuations in interest rates and raw material prices with respect to long-term debt and cotton purchases, respectively. We determine at inception whether the derivative instruments will be accounted for as hedges. We account for derivatives and hedging activities in accordance with FASB Codification No. 815, Derivatives and Hedging (“ASC 815”), as amended. ASC 815 establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts and hedging activities. It requires the recognition of all derivative instruments as either assets or liabilities in the Consolidated Balance Sheets and measurement of those instruments at fair value. The accounting treatment of changes in fair value depends upon whether or not a derivative instrument is designated as a hedge and, if so, the type of hedge. We include all derivative instruments at fair value in our Consolidated Balance Sheets. For derivative financial instruments related to the production of our products that are not designated as a hedge, we recognize the changes in fair value in cost of sales. For derivatives designated as cash flow hedges, to the extent effective, we recognize the changes in fair value in accumulated other comprehensive income (loss) until the hedged item is recognized in income. Any ineffectiveness in the hedge is recognized immediately in income in the line item that is consistent with the nature of the hedged risk. We formally document all relationships between hedging instruments and hedged items, as well as risk management objectives and strategies for undertaking various hedge transactions, at the inception of the transactions. We are exposed to counterparty credit risks on all derivatives. Because these amounts are recorded at fair value, the full amount of our exposure is the carrying value of these instruments. We only enter into derivative transactions with well established institutions and therefore we believe the counterparty credit risk is minimal. From time to time, we may purchase cotton option contracts to economically hedge the risk related to market fluctuations in the cost of cotton used in our operations. We do not receive hedge accounting treatment for these derivatives. As such, the realized gains and losses associated with them were recorded within cost of goods sold on the Consolidated Statement of Operations. There were no significant raw material option agreements that were purchased during fiscal years 2017, 2016, or 2015. In September 2013, we entered into four interest rate swap agreements, as follows: Effective Date Notational Amount LIBOR Rate Maturity Date Interest Rate Swap September 9, 2013 $15 million 1.1700 % September 9, 2016 Interest Rate Swap September 9, 2013 $15 million 1.6480 % September 11, 2017 Interest Rate Swap September 19, 2013 $15 million 1.0030 % September 19, 2016 Interest Rate Swap September 19, 2013 $15 million 1.4490 % September 19, 2017 During fiscal years 2017, 2016, and 2015, these interest rate swap agreements had minimal ineffectiveness and were considered highly-effective hedges. In July 2017, we entered into two interest rate swap agreements, as follows: Effective Date Notational Amount LIBOR Rate Maturity Date Interest Rate Swap July 19, 2017 $10 million 1.7400 % July 19, 2019 Interest Rate Swap July 19, 2017 $10 million 1.9900 % May 10, 2021 During fiscal year 2017, these interest rate swap agreements had minimal ineffectiveness and were considered highly effective hedges. The changes in fair value of the interest rate swap agreements resulted in AOCI gains, net of taxes, of $0.1 million and $0.3 million for the years ended September 30, 2017, and October 1, 2016, respectively, and an AOCI loss, net of taxes, of $0.2 million for the year ended October 3, 2015. See Note 16(d) - Derivatives for further details. (aa) Recently Adopted Accounting Pronouncements: In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, (ASU 2016-09). ASU 2016-09 simplifies various aspects of accounting for share-based payment transactions. The most significant change from this update amends the presentation of excess tax benefits and deficiencies in the financial statements by eliminating tax pools and requiring these benefits and deficiencies to be reflected in the income statement. It also allows employer withholding on share based compensation up to the maximum statutory rate without the possibility of triggering liability accounting and allows companies to make a policy election as it relates to forfeitures. Additionally, the ASU provides definitive guidance related to presentation of income tax benefit/deficiencies as an operating activity and payment of taxes for employee withholding from stock compensation as a financing activity within the Consolidated Statements of Cash Flows. ASU 2016-09 was adopted in our fiscal year beginning October 2, 2016, and we have elected to continue our policy of estimating forfeitures. As a result of this adoption, we recalculated previously released diluted earnings per share with updated calculations depicted in Note 17—Quarterly Financial Information. This resulted from the exclusion of excess tax benefits and tax deficiencies from the calculation of assumed proceeds. Diluted earnings per share declined $0.01 per share in our March and June fiscal quarters and remained unchanged in our December quarter. (ab) Recently Issued Accounting Pronouncements Not Yet Adopted: In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , ("ASU 2014-09"). This new guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. ASU 2014-09 is effective for annual periods beginning after December 15, 2017, for public business entities and permits the use of either the retrospective or cumulative effect transition method. Early application is permitted only for annual reporting periods beginning after December 15, 2016. ASU 2014-09 will therefore be effective in our fiscal year beginning September 30, 2018. Although we have not yet determined our adoption method, we have identified a committee, agreed on a methodology for review of our revenue arrangements and initiated the review process for adoption of this ASU, and are evaluating the effect that ASU 2014-09 will have on our Consolidated Financial Statements and related disclosures. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory , ("ASU 2015-11"). This new guidance requires an entity to measure inventory at the lower of cost and net realizable value. Currently, entities measure inventory at the lower of cost or market. ASU 2015-11 replaces market with net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured under last-in, first-out or the retail inventory method. ASU 2015-11 requires prospective adoption for inventory measurements for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities. Early application is permitted. ASU 2015-11 will therefore be effective in our fiscal year beginning October 1, 2017. We are evaluating the effect that ASU 2015-11 will have on our Consolidated Financial Statements and related disclosures, but do not believe it will have a material impact. In February 2016, the FASB issued ASU No. 2016-02, Leases, (ASU 2016-02). ASU 2016-02 requires lessees to recognize assets and liabilities for most leases. All leases will be required to be recorded on the balance sheet with the exception of short-term leases. Early application is permitted. The guidance must be adopted using a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. ASU 2016-02 is effective for financial statements issued for annual periods beginning after December 15, 2018, and interim periods within those annual periods. ASU 2016-02 will therefore be effective in our fiscal year beginning September 29, 2019. We are evaluating the effect that ASU 2016-02 will have on our Consolidated Financial Statements and related disclosures. |
Divestitures
Divestitures | 12 Months Ended |
Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | DIVESTITURES Junkfood Divestiture On March 31, 2017, we completed the sale of our Junkfood business to JMJD Ventures, LLC for $27.9 million . The business sold consisted of vintage-inspired Junk Food branded and private label products sold in the United States and internationally. We received cash at closing of $25.0 million and recorded a $2.9 million note receivable with payments due between June 30, 2017, and March 30, 2018. The note receivable was amended on June 29, 2017, to revise the repayment schedule for payments to be made between September 29, 2017, and March 30, 2018. We realized a $1.3 million pre-tax gain on the sale of the Junkfood business resulting from the proceeds of $27.9 million less the costs of assets sold and other expenses, and less direct selling costs associated with the transaction. The pre-tax gain was recorded in the Condensed Consolidated Statement of Operations as Gain on sale of business. The Game Divestiture On March 2, 2015, we completed the sale of our The Game branded collegiate headwear and apparel business to David Peyser Sportswear, Inc., owner of MV Sport, Inc., for $14.9 million . The business sold consisted of The Game branded products sold nationally in college bookstores and through team dealers. This transaction further strengthened our balance sheet and enabled us to focus on areas of our business that are more strategic to our long-term goals. Our Salt Life business and corporate business, Kudzu, previously operated within To The Game, LLC (now Salt Life, LLC) were not included in the sale of the collegiate part of the business. The sale included finished goods inventory of $6.0 million , $0.4 million in fixed assets, and $0.1 million in other assets, along with the requirement that we indemnify up to $0.3 million of legal costs associated with a particular litigation matter which was subsequently settled. The transaction did not include accounts receivable which we subsequently collected in the normal course of business, and certain undecorated apparel inventory. We incurred $0.4 million in direct selling expenses associated with the transaction. In addition, we incurred certain indirect costs associated with the transaction, including a $0.8 million devaluation of the inventory not included in the sale and $1.4 million in indirect incentive-based expenses. The pre-tax gain on the sale of The Game assets, inclusive of the direct and indirect expenses, was $5.6 million . The transaction and associated indirect expenses were recorded in our Consolidated Statements of Operations in the year ended October 3, 2015, as follows: (i) proceeds of $14.9 million less costs of assets sold and direct selling costs resulting in a gain of $7.7 million recorded as a gain on sale of business; (ii) $1.4 million in indirect expenses recorded in our selling, general and administrative expense; and (iii) $0.8 million of indirect expenses recorded in our cost of goods sold. |
Restructuring Plan
Restructuring Plan | 12 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Plan | RESTRUCTURING PLAN On May 10, 2016, in connection with certain strategic manufacturing initiatives, we announced plans to restructure our manufacturing operations with the closing of our textile manufacturing facility in Maiden, North Carolina, the consolidation of sew facilities in Mexico, and the expansion of production at our lower-cost Ceiba Textiles facility in Honduras. In September 2016, we sold the Maiden facility real estate and certain machinery, equipment and supply parts used in the Maiden facility for approximately $1.7 million . As part of the closing of the Maiden facility and the expansion of operations at our offshore facilities, we incurred the following costs (in thousands): Fiscal Year Ended October 1, 2016 Excess manufacturing costs related to the shutdown and start-up operations $ 1,096 Total expenses included in cost of goods sold 1,096 Employee termination costs 597 Fixed asset impairment 607 Inventory and supply part impairment 144 Other costs to exit facility 393 Total restructuring costs 1,741 Total manufacturing realignment expenses $ 2,837 All of these expenses were recorded in our basics segment. We did not incur any significant additional costs related to the manufacturing initiative in fiscal year 2017. We paid $0.1 million and $0.4 million in employee termination benefits in fiscal years 2017 and 2016, respectively. |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories, net of reserves of $9.8 million and $8.8 million as of September 30, 2017, and October 1, 2016, respectively, consist of the following (in thousands): September 30, October 1, Raw materials $ 8,973 $ 11,442 Work in process 18,543 18,158 Finished goods 147,035 134,647 $ 174,551 $ 164,247 Raw materials include finished yarn and direct materials for the basics segment, undecorated garments for the Art Gun business and direct embellishment materials for the branded segment. The fiscal year ended October 1, 2016, included $2.6 million of raw materials and $1.7 million of finished goods related to the since-divested Junkfood business. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following (in thousands, except economic life data): Estimated Useful Life September 30, October 1, Land and land improvements 25 years $ 572 $ 572 Buildings 20 years 2,989 3,369 Machinery and equipment 10 years 75,838 72,068 Computers and software 3-10 years 20,128 20,889 Furniture and fixtures 7 years 2,251 1,977 Leasehold improvements 3-10 years 5,275 3,686 Vehicles and related equipment 5 years 791 808 Construction in progress N/A 3,035 3,719 110,879 107,088 Less accumulated depreciation and amortization (68,173 ) (63,585 ) $ 42,706 $ 43,503 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS Goodwill and components of intangible assets consist of the following (in thousands): September 30, 2017 October 1, 2016 Cost Accumulated Amortization Net Value Cost Accumulated Amortization Net Value Economic Life Goodwill $ 19,917 $ — $ 19,917 $ 36,729 $ — $ 36,729 N/A Intangibles: Tradename/trademarks $ 16,090 $ (2,193 ) $ 13,897 $ 17,620 $ (2,514 ) $ 15,106 20 - 30 yrs Customer relationships — — — 7,220 (4,016 ) 3,204 20 yrs Technology 1,220 (947 ) 273 1,220 (826 ) 394 10 yrs License Agreements 2,100 (423 ) 1,677 2,100 (320 ) 1,780 15 - 30 yrs Non-compete agreements 1,037 (733 ) 304 1,287 (849 ) 438 4 – 8.5 yrs Total intangibles $ 20,447 $ (4,296 ) $ 16,151 $ 29,447 $ (8,525 ) $ 20,922 Goodwill represents the acquired goodwill net of the cumulative impairment losses recorded in fiscal year 2011 of $0.6 million . The goodwill recorded on our financial statements is all included in the branded segment. Goodwill was reduced by $16.8 million associated with the Junkfood divestiture. The sale of Junkfood, completed on March 31, 2017, included intangible assets, net of accumulated amortization, consisting of trademarks of $0.6 million and customer relationships of $3.0 million . In August 2016, we acquired substantially all of the assets of Coast Apparel, LLC for $313 thousand , which resulted in additional intangible assets of $0.1 million . Amortization expense for intangible assets was $1.1 million for the year ended September 30, 2017 , and $1.3 million for each of the years ended October 1, 2016 , and October 3, 2015 . Amortization expense is estimated to be approximately $0.9 million for each of fiscal years 2018 and 2019, approximately $0.7 million for fiscal year 2020, and approximately $0.6 million for each of fiscal years 2021 and 2022. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | ACCRUED EXPENSES Accrued expenses consist of the following (in thousands): September 30, October 1, Accrued employee compensation and benefits $ 12,683 $ 12,899 Taxes accrued and withheld 931 1,003 Accrued insurance 126 263 Accrued advertising 524 256 Accrued royalties 113 1,653 Accrued commissions 327 460 Accrued freight 1,060 1,105 Other 1,940 4,067 $ 17,704 $ 21,706 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT Long-term debt consists of the following (in thousands): September 30, October 1, Revolving U.S. credit facility, interest at base rate or adjusted LIBOR rate plus an applicable margin (interest at 2.9% on September 30, 2017) due May 2021 $ 74,608 $ 92,137 Revolving credit facility with Banco Ficohsa, a Honduran bank, interest at 8% due March 2019 (denominated in U.S. dollars) 4,975 5,000 Term loan with Banco Ficohsa, a Honduran bank, interest at 7%, monthly installments beginning March, 2011 through March 2018 (denominated in U.S. dollars) 486 1,459 Term loan with Banco Ficohsa, a Honduran bank, interest at 7.5%, monthly installments beginning November 2014 through December 2020 (denominated in U.S. dollars) 2,000 2,600 Term loan with Banco Ficohsa, a Honduran bank, interest at 8%, monthly installments beginning June 2016 through April 2022 (denominated in U.S. dollars) 1,358 1,650 Term loan with Banco Ficohsa, a Honduran bank, interest at 8%, monthly installments beginning June 2016 through July 2017 (denominated in U.S. dollars) — 4,833 Term loan with Banco Ficohsa, a Honduran bank, interest at 8%, monthly installments beginning October 2017 through September 2021 (denominated in U.S. dollars) 4,083 — Salt Life acquisition promissory note, imputed interest at 3.62%, quarterly payments beginning September 2016 through June 2019 5,344 8,116 92,854 115,795 Less current installments (7,548 ) (9,192 ) Long-term debt, excluding current installments $ 85,306 $ 106,603 On May 10, 2016, we amended our U.S. revolving credit facility and entered into a Fifth Amended and Restated Credit Agreement (the "Amended Credit Agreement") with Wells Fargo Bank, National Association ("Wells Fargo"), as Administrative Agent, the Sole Lead Arranger and the Sole Book Runner, and the financial institutions named therein as Lenders, which are Wells Fargo, PNC Bank, National Association and Regions Bank. Our subsidiaries, M.J. Soffe, LLC, Junkfood Clothing Company, Salt Life, LLC, and Art Gun, LLC (together with the Company, the "Companies"), are co-borrowers under the Amended Credit Agreement. The Amended Credit Agreement was subsequently amended on November 27, 2017. For further information refer to Item 9B. Other Information. The Amended Credit Agreement amends and restates our Fourth Amended and Restated Loan and Security Agreement dated May 27, 2011, which was amended on four occasions and had a maturity date of May 27, 2017. Bank of America, N.A. departed the syndicate of Lenders and Regions Bank joined the syndicate of Lenders for the Amended Credit Agreement. Bank of America, N.A. also ceased to serve as the syndication agent for the facility, and Merrill Lynch, Pierce, Fenner and Smith Incorporated is no longer a joint book runner with Wells Fargo. Wells Fargo and the above-referenced Lenders consented to the sale of our Junkfood business prior to the March 31, 2017, closing of the transaction. The Amended Credit Agreement allows us to borrow up to $145 million (subject to borrowing base limitations), including a maximum of $25 million in letters of credit. Provided that no event of default exists, we have the option to increase the maximum credit to $200 million (subject to borrowing base limitations), conditioned upon the Administrative Agent's ability to secure additional commitments and customary closing conditions. The credit facility matures on May 10, 2021. Our U.S. revolving credit facility is secured by a first-priority lien on substantially all of the real and personal property of Delta Apparel, Junkfood, Soffe, Salt Life, and Art Gun. All loans bear interest at rates, at the Company's option, based on either (a) an adjusted LIBOR rate plus an applicable margin or (b) a base rate plus an applicable margin, with the base rate equal to the greater of (i) the federal funds rate plus 0.5% , (ii) the LIBOR rate plus 1.0% , or (iii) the prime rate announced by Wells Fargo, National Association. The facility requires monthly installment payments of approximately $0.2 million in connection with fixed asset amortizations, and these amounts reduce the amount of availability under the facility. Annual facility fees are 0.25% or 0.375% (subject to average excess availability) of the amount by which $145 million exceeds the average daily principal balance of the outstanding loans and letters of credit accommodations. The annual facility fees are charged monthly based on the principal balances during the immediately preceding month. At September 30, 2017, we had $74.6 million outstanding under our U.S. revolving credit facility at an average interest rate of 2.9%, and had the ability to borrow an additional $37.5 million. This credit facility includes the financial covenant that if the amount of availability falls below the threshold amounts set forth in the Amended Credit Agreement, our Fixed Charge Coverage Ratio (“FCCR”) (as defined in the Amended Credit Agreement) for the preceding 12 -month period must not be less than 1.1 to 1.0. We were not subject to the FCCR covenant as of September 30, 2017 , because our availability was above the minimum required under the Amended Credit Agreement. At September 30, 2017, our FCCR was above the required 1.1 to 1.0 ratio and, therefore, we would have satisfied our financial covenant had we been subject to it. In addition, the credit facility includes customary conditions to funding, representations and warranties, covenants, and events of default. The covenants include, among other things, limitations on asset sales, consolidations, mergers, liens, indebtedness, loans, investments, guaranties, acquisitions, dividends, stock repurchases, and transactions with affiliates. Proceeds of the loans made pursuant to the Amended Credit Agreement may be used for permitted acquisitions (as defined in the Amended Credit Agreement), general operating expenses, working capital, other corporate purposes, and to finance credit facility fees and expenses. Pursuant to the terms of our credit facility, we are allowed to make cash dividends and stock repurchases if (i) as of the date of the payment or repurchase and after giving effect to the payment or repurchase, we have availability on that date of not less than 15% of the lesser of the borrowing base or the commitment, and average availability for the 30-day period immediately preceding that date of not less than 15% of the lesser of the borrowing base or the commitment; and (ii) the aggregate amount of dividends and stock repurchases after May 10, 2016, does not exceed $10 million plus 50% of our cumulative net income (as defined in the Amended Credit Agreement) from the first day of the third quarter of fiscal year 2016 to the date of determination. At September 30, 2017, and October 1, 2016, there was $7.7 million and $10.7 million, respectively, of retained earnings free of restrictions to make cash dividends or stock repurchases. The Amended Credit 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 facility as long-term debt. In August 2013, we acquired Salt Life and issued two promissory notes in the aggregate principal amount of $22.0 million, which included a one-time installment of $9.0 million that was paid as required on September 30, 2014, and quarterly installments commencing on March 31, 2015, with the final installment due on June 30, 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 matured on June 30, 2016, and will mature on June 30, 2019, respectively. At September 30, 2017, the discounted value of the promissory note was $5.3 million. On December 6, 2013, we entered into an agreement (the "IMG Agreement") with IMG Worldwide, Inc. ("IMG") that provided 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 acquisition of Salt Life as well as the agency agreement entered into between Salt Life Holdings and IMG prior to the acquisition of Salt Life. 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 acquisition of Salt Life. Pursuant to the IMG Agreement, Salt Life and IMG entered into a separate, multi-year agency agreement, which has since been terminated, whereby IMG represented Salt Life with respect to the licensing of the Salt Life brand in connection with certain product and service categories. Salt Life agreed to pay IMG installments totaling $3,500,000 to terminate the existing arrangements. There was a $3,000,000 indemnification asset that was recorded as part of the purchase of Salt Life that was released from escrow during the quarter ended December 28, 2013, and applied towards these payment obligations, along with additional amounts previously accrued for royalty obligations under the above-referenced Salt Life brand license agreements. During the year ended October 3, 2015, we made payments of $0.8 million in accordance with the terms of the agreement. As of October 3, 2015, there were 3 quarterly installments of $195 thousand remaining, and we had recorded the fair value of the liability as of October 3, 2015, in our financials with $0.6 million in accrued expenses. During the year ended October 1, 2016, we made the final payments of $0.6 million in accordance with the terms of the agreement and no amounts remain accrued in our financial statements as of October 1, 2016. Since March, 2011, we have entered into loans and a revolving credit facility with Banco Ficohsa, a Honduran bank, in order to finance both the operations and capital expansion of our Honduran facilities. Each of these loans are secured by a first-priority lien on the assets of our Honduran operations, and are not guaranteed by our U.S. entities. These loans are denominated in U.S. dollars and the carrying value of the debt approximates the fair value. The revolving credit facility requires minimum payments during each six -month period of the 18 -month term; however the loan agreement permits additional drawdowns to the extent payments are made and 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 loan permits us to re-borrow funds up to the amount repaid, subject to certain covenants, and we intend to re-borrow funds, subject to the objective covenants, the amounts have been classified as long-term debt. Information about these loans and the outstanding balance as of September 30, 2017, is listed as part of the long-term debt schedule above. The aggregate maturities of debt at September 30, 2017 , are as follows (in thousands): Fiscal Year Amount 2018 $ 7,548 2019 11,381 2020 4,062 2021 69,669 2022 194 Thereafter — $ 92,854 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The provision for income taxes consists of the following (in thousands): Period ended September 30, 2017 October 1, 2016 October 3, 2015 Current: Federal $ 215 $ 36 $ — State 47 78 60 Foreign 127 179 186 Total current $ 389 $ 293 $ 246 Deferred: Federal $ (112 ) $ 1,462 $ 1,320 State 380 326 439 Total deferred 268 1,788 1,759 Provision for income taxes $ 657 $ 2,081 $ 2,005 For financial reporting purposes our income before provision for income taxes includes the following components (in thousands): Period ended September 30, 2017 October 1, 2016 October 3, 2015 United States $ 1,767 $ 3,966 $ 3,434 Foreign 9,401 7,079 6,664 $ 11,168 $ 11,045 $ 10,098 A reconciliation between actual provision for income taxes and the provision for income taxes computed using the federal statutory income tax rate of 34.0% is as follows (in thousands): Period ended September 30, 2017 October 1, 2016 October 3, 2015 Income tax expense at the statutory rate $ 3,797 $ 3,755 $ 3,433 State income tax (benefit) expense, net of federal income tax effect (80 ) 447 374 Impact of state rate changes 115 116 — Rate difference and nondeductible items in foreign jurisdictions 33 54 (30 ) Impact of foreign earnings in tax-free zone (3,052 ) (2,319 ) (2,168 ) Valuation allowance adjustments 362 (71 ) — Nondeductible compensation — — 335 Nondeductible amortization and other permanent differences (496 ) 96 81 Other (22 ) 3 (20 ) Provision for income taxes $ 657 $ 2,081 $ 2,005 Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. We have not provided deferred taxes on the $75.5 million of undistributed earnings of our foreign subsidiaries where the earnings are considered to be permanently reinvested. The undistributed earnings would become taxable in the United States if we decided to repatriate earnings for business, tax or foreign exchange reasons. If we made that decision, U.S. income taxes would be provided for net of foreign taxes already paid. The determination of the unrecognized deferred tax liability associated with these unremitted earnings is not practical at this time. Significant components of our deferred tax assets and liabilities are as follows (in thousands): September 30, October 1, Deferred tax assets: Federal net operating loss carryforwards $ 2,902 $ 6,256 State net operating loss carryforwards 1,573 1,784 Derivative — interest rate contracts 21 70 Alternative minimum tax credit carryforward 404 135 Inventories and reserves 3,681 3,426 Accrued compensation and benefits 3,139 3,331 Receivable allowances and reserves 543 767 Other 98 89 Gross deferred tax assets 12,361 15,858 Less valuation allowance — state net operating loss (493 ) (131 ) Net deferred tax assets 11,868 15,727 Deferred tax liabilities: Depreciation (3,501 ) (2,868 ) Goodwill and intangibles (3,319 ) (7,463 ) Other (46 ) (150 ) Gross deferred tax liabilities (6,866 ) (10,481 ) Net deferred tax asset 5,002 5,246 As of September 30, 2017, and October 1, 2016, we had federal net operating loss carryforwards of approximately $8.5 million and $18.3 million , respectively. The deferred tax assets resulting from federal net operating losses for September 30, 2017, and October 1, 2016, were $2.9 million and $6.3 million , respectively. There is no carryback opportunity for these losses and the carryforwards expire at various intervals from 2033 to 2035. We determined that no valuation allowance is required, as we expect that all such carryforwards more likely than not will be realized within statutory periods of carryover and utilization. As of September 30, 2017, and October 1, 2016, we had state net operating loss carryforwards of approximately $41.6 million and $45.4 million , respectively. These carryforwards expire at various intervals from 2019 through 2036. Our deferred tax asset related to state net operating loss carryforwards is reduced by a valuation allowance to result in deferred tax assets we consider more likely than not to be realized. For both federal and state purposes, the ultimate realization of deferred tax assets depends upon the generation of future taxable income or tax planning strategies during the periods in which those temporary differences become deductible or when the carryforwards are available. FASB Codification No. 740, Income Taxes (“ASC 740”) requires that a position taken or expected to be taken in a tax return be recognized in the financial statements when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than 50% percent likely of being realized upon ultimate settlement. Accrued interest and penalties related to unrecognized tax benefits would also be recorded. We did not have any material unrecognized tax benefits as of September 30, 2017 , or October 1, 2016. The tax years 2013 to 2015, according to statute and with few exceptions, remain open to examination by various federal, state, local and foreign jurisdictions. |
Leases
Leases | 12 Months Ended |
Sep. 30, 2017 | |
Leases [Abstract] | |
Leases | LEASES We have several non-cancelable operating leases primarily related to buildings, office equipment and computer systems. Certain land and building leases have renewal options generally for periods ranging from 5 to 10 years. Future minimum lease payments under non-cancelable operating leases as of September 30, 2017 , were as follows (in thousands): Fiscal Year Amount 2018 $ 8,259 2019 7,856 2020 6,703 2021 4,542 2022 3,220 Thereafter 14,386 $ 44,966 Rent expense for all operating leases was $8.8 million , $9.3 million and $9.4 million for fiscal years 2017, 2016, and 2015, respectively. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS We sponsor and maintain a 401(k) retirement savings plan (the “401(k) Plan”) for our employees who meet certain requirements. The 401(k) Plan permits participants to make pre-tax contributions by salary reduction pursuant to Section 401(k) of the Internal Revenue Code, as well as a Roth Plan that allows for after tax contributions. The 401(k) Plan provides for us to make a guaranteed match of a defined portion of the employee’s contributions. During fiscal years 2017, 2016, and 2015 we contributed approximately $0.9 million , $1.1 million , and $1.1 million , respectively, to the 401(k) Plan. We provide post-retirement life insurance benefits for certain retired employees. The plan is noncontributory and is unfunded, and therefore, benefits and expenses are paid from our general assets as they are incurred. All of the employees in the plan are fully vested and the plan was closed to new employees in 1990. The discount rate used in determining the liability was 6.0% for fiscal years 2017 and 2016. The following table presents the benefit obligation, which is included in accrued expenses in the accompanying balance sheets (in thousands). September 30, October 1, Balance at beginning of year $ 344 $ 412 Interest expense 5 6 Benefits paid (6 ) (81 ) Adjustment — 7 Balance at end of year $ 343 $ 344 |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | STOCK-BASED COMPENSATION On February 4, 2015, our shareholders re-approved the Delta Apparel, Inc. 2010 Stock Plan ("2010 Stock Plan") that was originally approved by our shareholders on November 11, 2010. The re-approval of the 2010 Stock Plan, including the material terms of the performance goals included in the 2010 Stock Plan, enables us to continue to grant equity incentive compensation awards that are structured in a manner intended to qualify as tax deductible, performance-based compensation under Section 162(m) of the Internal Revenue Code of 1986. Since November 2010, 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 been and will continue to be granted under the 2010 Stock Plan. We account for these plans pursuant to ASC 718, SAB 107 and SAB 110. Shares are generally issued from treasury stock upon exercise of the options or the vesting of the restricted stock units and performance units. We early adopted ASU 2016-09 in our fiscal year beginning October 2, 2016. See Note 2—Significant Accounting Policies (aa) Recently Adopted Accounting Pronouncements for further detail. This new guidance requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. All excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) should be recognized as income tax expense or benefit in the income statement. The tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity also should recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Compensation expense is recorded on the selling, general and administrative expense line item in our Consolidated Statements of Operations over the vesting periods. Total employee stock-based compensation expense for fiscal years 2017, 2016, and 2015 was $2.3 million , $2.0 million and $1.9 million , respectively. Associated with the compensation cost are income tax benefits recognized of $0.9 million , $0.8 million and $0.7 million in fiscal years 2017, 2016, and 2015, respectively. 2010 Stock Plan Under the 2010 Stock Plan, the Compensation Committee of our Board of Directors has the authority to determine the employees and directors to whom awards may be granted and the size and type of each award and manner in which such awards will vest. The awards available consist of stock options, stock appreciation rights, restricted stock, restricted stock units, performance stock, performance units, and other stock and cash awards. 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. The 2010 Stock Plan limits the number of shares that may be covered by awards to any participant in a given calendar year and also limits the aggregate awards of restricted stock, restricted stock units and performance stock granted in any given calendar year. If a participant dies or becomes disabled (as defined in the 2010 Stock Plan) while employed by or serving as a director, all unvested awards become fully vested. The Compensation Committee is authorized to establish the terms and conditions of awards granted under the 2010 Stock Plan, to establish, amend and rescind any rules and regulations relating to the 2010 Stock Plan, and to make any other determinations that it deems necessary. Stock Options No stock options were granted during fiscal year 2017. All outstanding options granted by the Company have vested and are exercisable. A summary of the stock option activity during the periods ended September 30, 2017, October 1, 2016, and October 3, 2015, is as follows: Fiscal Year Ended September 30, 2017 October 1, 2016 October 3, 2015 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Stock options outstanding, beginning of period 10,000 $ 13.07 10,000 $ 13.07 50,000 $ 13.47 Stock options granted — — — — — — Stock options exercised — — — — — — Stock options forfeited — — — — (40,000 ) 13.56 Stock options outstanding, end of period 10,000 $ 13.07 10,000 $ 13.07 10,000 $ 13.07 Stock options outstanding and exercisable, end of period 10,000 $ 13.07 10,000 $ 13.07 10,000 $ 13.07 The following table summarizes information about our stock options outstanding, all of which are vested and exercisable as of September 30, 2017: Date of Option Grant Number of Options Outstanding and Exercisable Exercise Price Grant-Date Fair Value Expiration Date February 2, 2011 10,000 $ 13.07 $ 6.35 February 18, 2018 10,000 Restricted Stock Units and Performance Units The following table summarizes the restricted stock unit and performance unit award activity during the periods ended September 30, 2017, October 1, 2016, and October 3, 2015: Fiscal Year Ended September 30, 2017 October 1, 2016 October 3, 2015 Number of Units Weighted average grant date fair value Number of Units Weighted average grant date fair value Number of Units Weighted average grant date fair value Units outstanding, beginning of fiscal period 585,638 $ 11.54 518,800 $ 10.80 215,352 $ 14.31 Units granted 126,000 $ 17.97 159,138 $ 14.03 524,000 $ 10.81 Units issued (64,846 ) $ 11.14 (49,529 ) $ 12.32 (69,657 ) $ 14.31 Units forfeited (133,936 ) $ 12.02 (42,771 ) $ 10.87 (150,895 ) $ 14.26 Units outstanding, end of fiscal period 512,856 $ 13.09 585,638 $ 11.54 518,800 $ 10.80 During fiscal year 2017, performance stock units representing 126,000 shares of our common stock were granted. Of these units, and subject to satisfaction of the applicable performance criteria at target levels, 42,000 will vest with the filing of our Annual Report on Form 10-K for our fiscal year ending September, 29, 2018, 42,000 will vest with the filing of our Annual Report on Form 10-K for our fiscal year ending September, 28, 2019, and 42,000 will vest with the filing of our Annual Report on Form 10-K for our fiscal year ending October 3, 2020. During fiscal year 2017, restricted stock units and performance units representing 8,438 and 53,248 shares of our common stock, respectively, vested upon the filing of our Annual Report on Form 10-K for the fiscal year ended October 1, 2016, and were issued in accordance with their respective agreements. One-half of the restricted stock units were payable in common stock and one-half were payable in cash. All of the performance units were payable in common stock. During fiscal year 2017, in association with the sale of our Junkfood business (see Note 3—Divestitures), restricted stock units and performance units representing 45,000 and 5,000 shares of our common stock, respectively, vested on an accelerated basis as a result of the sale of the Junkfood business and were issued in accordance with their respective agreements. One-half of the performance units were payable in common stock and one-half were payable in cash. Of the restricted stock units, 42,500 were payable in common stock and 2,500 were payable in cash. The $0.3 million expense related to the accelerated vesting of equity awards in connection with the sale of the Junkfood business was recorded in the Gain on sale of business line item in our Condensed Consolidated Statements of Operations. During fiscal year 2016, restricted stock units representing 83,788 shares of our common stock were granted. These restricted stock units are service-based and 8,438 units were eligible to vest upon the filing of our Annual Report on Form 10-K for the year ended October 1, 2016. The remaining 75,350 units are eligible to vest upon the filing of our Annual Report on Form 10-K for the year ended September 30, 2017. Upon vesting, one-half of these awards are payable in the common stock of Delta Apparel, Inc. and are accounted for under the equity method pursuant to ASC 718, and one-half are payable in cash and are accounted for under the liability method pursuant to ASC 718. During fiscal year 2016, performance units representing 75,350 shares of our common stock were granted. These performance units are based on the achievement of certain performance criteria for the fiscal years ended October 1, 2016, and September 30, 2017, and are eligible to vest upon the filing of our Annual Report on Form 10-K for the year ended September 30, 2017. Upon vesting, one-half of these awards are payable in the common stock of Delta Apparel, Inc. and are accounted for under the equity method pursuant to ASC 718 and one-half are payable in cash and are accounted for under the liability method pursuant to ASC 718. During fiscal year 2016, previously issued performance units representing 49,529 shares of our common stock vested upon the filing of our Annual Report on Form 10-K for the fiscal year ended October 3, 2015. Of these performance units, one-half were payable in common stock and one-half were payable in cash and were issued in accordance with their agreement. During fiscal year 2015, restricted stock units representing 355,000 shares of our common stock were granted. These restricted stock units are serviced-based and vest upon the filing of our Annual Report on Form 10-K for the period ending September 29, 2018, assuming applicable vesting requirements are satisfied. Upon vesting, these units are payable in the common stock of Delta Apparel, Inc. and are therefore accounted for under the equity method pursuant to ASC 718. During fiscal year 2015, performance units representing 169,000 shares of our common stock were granted. Of these performance units, 65,000 were based on the achievement of certain performance criteria for the fiscal year ended October 3, 2015, and were eligible to vest upon the filing of our Annual Report on Form 10-K for such year. Of these units, one-half were payable in the common stock of Delta Apparel, Inc. and were therefore accounted for under the equity method pursuant to ASC 718, and one-half were payable in cash and were therefore accounted for under the liability method pursuant to ASC 718. Of the remaining units, 52,000 were based on the achievement of certain performance criteria for the fiscal year ended October 1, 2016, and vested upon the filing of our Annual Report on Form 10-K for that year, and 52,000 units are based on the achievement of certain performance criteria for the fiscal year ended September 30, 2017, and are eligible to vest upon the filing of our Annual Report on Form 10-K for that year. Upon vesting, these units were paid or are payable (as applicable) in the common stock of Delta Apparel, Inc. and are therefore accounted for under the equity method pursuant to ASC 718. Based upon the performance achieved for fiscal year 2015, 49,529 units were issued upon the filing of our Annual Report on Form 10-K for fiscal year 2015 and 5,200 units were forfeited on October 3, 2015. Based upon the performance achieved for fiscal year 2016, 53,248 units were issued upon the filing of our Annual Report on Form 10-K for fiscal year 2016. During fiscal year 2015, previously issued restricted stock units representing 69,657 shares of our common stock vested upon the filing of our Quarterly Report on Form 10-Q for the period ended June 27, 2015, and were issued in accordance with their agreement, either in shares of common stock or cash. The total fair value of vested restricted stock units was $1.0 million in fiscal year 2015. No restricted stock units vested during fiscal years 2014 or 2013. In addition, during fiscal year 2015, previously issued restricted stock units representing 12,019 shares of our common stock were forfeited. During fiscal year 2015, previously issued performance units representing 133,676 shares of our common stock were forfeited due to the failure to achieve the performance criteria specified in the award agreement. As of September 30, 2017 , there was $2.8 million of total unrecognized compensation cost related to unvested restricted stock units and performance units under the 2010 Stock Plan. This cost is expected to be recognized over a period of 3.2 years . The following table summarizes information about the unvested restricted stock units and performance units as of September 30, 2017 . Restricted Stock Units/Performance Units Number of Units Average Market Price on Date of Grant Vesting Date* Fiscal Year 2015 Restricted Stock Units 95,000 $10.52 December 2018 Fiscal Year 2015 Restricted Stock Units 140,000 $10.73 December 2018 Fiscal Year 2015 Performance Units 52,208 $10.52 November 2017 Fiscal Year 2016 Restricted Stock Units 57,600 $14.04 November 2017 Fiscal Year 2016 Performance Units 42,048 $14.04 November 2017 Fiscal Year 2017 Performance Units 42,000 $17.97 December 2018 Fiscal Year 2017 Performance Units 42,000 $17.97 December 2019 Fiscal Year 2017 Performance Units 42,000 $17.97 December 2020 512,856 * These awards are eligible to vest upon the filing of our Annual Report on Form 10-K for the applicable fiscal year, which is anticipated to be during the month and year indicated in this column. Option Plan Prior to expiration of the Option Plan, the Compensation Committee of our Board of Directors had the discretion to grant options for up to 2,000,000 shares of common stock to officers and key and middle-level executives for the purchase of our stock at prices not less than fifty percent of the fair market value of the shares on the dates of grant, with an exercise term (as determined by the Compensation Committee) not to exceed 10 years . The Compensation Committee determined the vesting period for the stock options, which generally became exercisable over three to four years. Certain option awards in the Option Plan provided for accelerated vesting upon meeting specific retirement, death or disability criteria. Compensation expense was recorded on the selling, general and administrative expense line item in our Consolidated Statements of Operations on a straight-line basis over the vesting periods. A summary of our stock option activity during the periods ended September 30, 2017, October 1, 2016, and October 3, 2015, is as follows: Fiscal Year Ended September 30, 2017 October 1, 2016 October 3, 2015 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Stock options outstanding, beginning of period 86,000 $ 8.30 86,000 $ 8.30 502,000 $ 12.27 Stock options exercised (80,000 ) $ 8.30 — $ — (350,000 ) $ 13.12 Stock options forfeited — $ — — $ — (66,000 ) $ 12.94 Stock options outstanding, end of period 6,000 $ 8.30 86,000 $ 8.30 86,000 $ 8.30 Stock options outstanding and exercisable, end of period 6,000 $ 8.30 86,000 $ 8.30 86,000 $ 8.30 The total intrinsic value of options exercised during fiscal year 2017 was $1.0 million . No stock options were exercised during fiscal year 2016. The total intrinsic value of options exercised during fiscal year 2015 was $0.3 million . During fiscal year 2017, stock option exercises resulted in a reduction of deferred excess tax benefits by $0.1 million . During fiscal year 2015, stock option exercises resulted in a reduction of deferred excess tax benefits by $0.7 million . The following table summarizes information about our stock options outstanding, all of which are vested and exercisable as of September 30, 2017: Date of Option Grant Number of Options Outstanding and Exercisable Exercise Price Grant-Date Fair Value Expiration Date February 8, 2008 6,000 $ 8.30 $ 2.95 February 8, 2018 6,000 |
Business Segments
Business Segments | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS We operate our business in two distinct segments: basics and branded. Although the two segments are similar in their production processes and regulatory environments, they are distinct in their economic characteristics, products, marketing, and distribution methods. The basics segment is comprised of our business units primarily focused on garment styles characterized by low fashion risk, and includes our Delta Activewear (which includes Delta Catalog and FunTees) and Art Gun business units. 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, trendy regional brands, retailers, and sports licensed apparel marketers. Typically, our private label products are sold with value-added services such as hangtags, ticketing, hangers, and embellishment so that they are fully ready for retail. Using digital print equipment and its proprietary technology, Art Gun embellishes garments to create private label, custom decorated apparel servicing the fast-growing e-retailer channels, as well as the ad specialty, promotional products and retail marketplaces. The branded segment is comprised of our business units focused on specialized apparel garments, headwear and related accessories to meet consumer preferences and fashion trends, and includes our Salt Life, Soffe, and Coast business units. Our branded segment also included our The Game and Junkfood business units prior to their dispositions on March 2, 2015, and March 31, 2017, respectively. These branded products are sold through specialty and boutique shops, upscale and traditional department stores, mid-tier retailers, sporting goods stores, e-retailers and the U.S. military, as well as direct-to-consumer through branded ecommerce sites and "brick and mortar" retail stores. Products in this segment are marketed under our lifestyle brands of Salt Life®, Soffe®, and COAST®, as well as other labels. On August 30, 2016, we purchased substantially all of the assets comprising our Coast Apparel business ("Coast"), continuing our strategy of building lifestyle brands that take advantage of our creative capabilities, direct-to-consumer infrastructure, vertical manufacturing platform and sourcing competencies. The results of the Coast business have been included in the branded segment since its acquisition on August 30, 2016. 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"). Our segment operating earnings may not be comparable to similarly titled measures used by other companies. The accounting policies of our reportable segments are the same as those described in Note 2. Intercompany transfers between operating segments are transacted at cost and have been eliminated within the segment amounts shown in the following table (in thousands). Fiscal Year Ended September 30, 2017 October 1, 2016 October 3, 2015 Segment net sales: Basics $ 280,283 $ 277,146 $ 282,467 Branded 104,799 148,103 166,675 Total net sales 385,082 425,249 449,142 Segment operating income: Basics 24,189 22,307 13,060 Branded 3,943 6,950 12,379 Total segment operating income 28,132 29,257 25,439 Purchases of property, plant and equipment: Basics 4,829 10,734 6,037 Branded 2,111 1,501 689 Corporate 145 80 1,047 Total purchases of property, plant and equipment 7,085 12,315 7,773 Depreciation and amortization: Basics 6,553 6,437 6,208 Branded 2,647 2,772 2,902 Corporate 409 416 432 Total depreciation and amortization 9,609 9,625 9,542 The following reconciles the segment operating income to the consolidated income before provision for income taxes (in thousands): Fiscal Year Ended September 30, 2017 October 1, 2016 October 3, 2015 Segment operating income $ 28,132 $ 29,257 $ 25,439 Unallocated corporate expenses 11,953 12,925 9,320 Unallocated interest expense 5,011 5,287 6,021 Consolidated income before provision for income taxes $ 11,168 $ 11,045 $ 10,098 Our revenues include sales to domestic and foreign customers. Foreign customers are composed of companies whose headquarters are located outside of the United States. Supplemental information regarding our revenues by geographic area based on the location of the customer is as follows (in thousands): Fiscal Year Ended September 30, 2017 October 1, 2016 October 3, 2015 United States $ 383,672 $ 418,627 $ 442,207 Foreign 1,410 6,622 6,935 Total net sales $ 385,082 $ 425,249 $ 449,142 Our total assets and equity investment by segment are as follows (in thousands): As of September 30, 2017 October 1, 2016 Total assets by segment: Basics 191,585 178,347 Branded 117,437 156,119 Corporate 8,780 10,186 Total assets 317,802 344,652 Equity investment in joint venture: Basics 4,140 3,593 Branded — — Total equity investment in joint venture 4,140 3,593 Our long-lived assets, excluding goodwill and intangible assets, consist of property, plant and equipment for all locations. We attribute our property, plant and equipment to a particular country based on the location of the long-lived assets. Summarized financial information by geographic area is as follows (in thousands): As of September 30, 2017 October 1, 2016 United States $ 19,587 $ 18,523 Honduras 18,151 19,650 El Salvador 3,853 4,215 Mexico 1,115 1,115 All foreign countries 23,119 24,980 Total long-lived assets, excluding goodwill and intangibles $ 42,706 $ 43,503 |
Repurchase of Common Stock
Repurchase of Common Stock | 12 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Repurchase of Common Stock | REPURCHASE OF COMMON STOCK As of September 30, 2017, our Board of Directors had authorized management to use up to $50.0 million to repurchase stock in open market transactions under our Stock Repurchase Program. During the September 2017 quarter, our Board of Directors approved management to repurchase an additional $10 million of the Company’s outstanding common stock, bringing the total amount authorized under the program to the above-referenced $50 million. During fiscal years 2017, 2016, and 2015, we purchased 413,337 shares, 217,568 shares, and 140,336 shares, respectively, of our common stock for a total cost of $7.8 million, $3.5 million, and $2.1 million, respectively. As of September 30, 2017, we have purchased 2,893,487 shares of common stock for an aggregate of $38.7 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 September 30, 2017, $11.3 million remained available for future purchases under our Stock Repurchase Program, which does not have an expiration date. The following table summarizes the purchases of our common stock for the quarter ended September 30, 2017: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans Dollar Value of Shares that May Yet Be Purchased Under the Plans July 2 to August 5, 2017 66,319 $ 20.20 66,319 $3.8 million August 6 to September 2, 2017 128,710 $ 19.21 128,710 $1.3 million September 3 to September 30, 2017 — $ — — $11.3 million Total 195,029 $ 19.54 195,029 $11.3 million |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES (a) Litigation The Sports Authority Bankruptcy Litigation Soffe is involved in several related litigation matters stemming from The Sports Authority's ("TSA") March 2, 2016, filing of a voluntary petition(s) for relief under Chapter 11 of the United States Bankruptcy Code (the "TSA Bankruptcy"). Prior to such filing, Soffe provided TSA with products to be sold on a consignment basis pursuant to a "pay by scan" agreement and the litigation matters relate to Soffe's interest in the products it provided TSA on a consignment basis (the "Products") and the proceeds derived from the sale of such products (the "Proceeds"). TSA Stores, Inc. and related entities TSA Ponce, Inc. and TSA Caribe, Inc. filed an action against Soffe on March 16, 2016, in the United States Bankruptcy Court for the District of Delaware (the "TSA Action") essentially seeking a declaratory judgment that: (i) Soffe does not own the Products but rather has a security interest that is not perfected or senior and is avoidable; (ii) Soffe only has an unsecured claim against TSA; (iii) TSA and TSA's secured creditors have valid, unavoidable and senior rights in the Products and the Products are the property of TSA’s estate; (iv) Soffe does not have a perfected purchase money security interest in the Products; (v) Soffe is not entitled to a return of the Products; and (vi) TSA can continue to sell the Products and Soffe is not entitled to any proceeds from such sales other than as an unsecured creditor. The TSA Action also contains claims seeking to avoid Soffe's filing of a financing statement related to the Products as a preference and recover the value of that transfer as well as to disallow Soffe's claims until it has returned preferential transfers or their associated value. TSA also brings a claim for a permanent injunction barring Soffe from taking certain actions. We believe that many of the claims in the TSA Action, including TSA’s claim for injunction, are now moot as a result of Soffe’s agreement to permit TSA to continue selling the Products in TSA’s going-out-of-business sale. On May 16, 2016, TSA lender Wilmington Savings Fund Society, FSB, as Successor Administrative and Collateral Agent ("WSFS"), intervened in the TSA Action seeking a declaratory judgment that: (i) WSFS has a perfected interest in the Products and Proceeds that is senior to Soffe's interest; and (ii) the Proceeds paid to Soffe must be disgorged pursuant to an order previously issued by the court. WSFS's intervening complaint also contains a separate claim seeking the disgorgement of all Proceeds paid to Soffe along with accrued and unpaid interest. Soffe has asserted counterclaims against WSFS in the TSA Action essentially seeking a declaratory judgment that: (i) WSFS is not perfected in the Products; and (ii) WSFS's interest in the Products is subordinate to Soffe's interest. On May 24, 2016, Soffe joined an appeal filed by a number of TSA consignment vendors in the United States District Court for the District of Delaware challenging an order issued in the TSA Bankruptcy that, should WSFS or TSA succeed in the TSA Action, granted TSA and/or WSFS a lien on all Proceeds received by Soffe and requiring the automatic disgorgement of such Proceeds. Soffe and another entity are the remaining consignment vendors pursuing this appeal. Although we will continue to vigorously defend against the TSA Action and pursue the above-referenced counterclaims and appeal, should TSA and/or WSFS ultimately prevail on their claims, we could be forced to disgorge all Proceeds received and forfeit our ownership rights in any Products that remain in TSA's possession. We believe the range of possible loss in this matter is currently $0 to $3.3 million ; however, it is too early to determine the probable outcome and, therefore, no amount has been accrued related to this matter. U.S. 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. Junkfood subsequently received notification from the Commission staff alleging that Junkfood knowingly violated CPSA Section 15(b) and that the staff will recommend to the Commission a $900,000 civil penalty. We disputed the Commission's allegations and subsequently responded to the Commission staff regarding its recommended penalty, setting forth a number of defenses and mitigating factors that could have resulted in a much lower penalty, if any, ultimately imposed by a court had the matter proceeded to litigation. We believe that any claims brought by the Commission seeking enforcement of the recommended penalty would be time-barred under any reasonable interpretation of the applicable civil statute of limitations. Accordingly, we consider this matter to be resolved, and during the quarter ended October 1, 2016, we reversed the liability previously recorded in connection with this matter. 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 Delta 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 was brought as a class action and sought to include all of our Delta 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 named as defendants Junkfood, Soffe, an independent contractor of Soffe, and a former employee, and sought 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 sought injunctive and declaratory relief, monetary damages and compensation, penalties, attorneys' fees and costs, and pre-judgment interest. On or about August 22, 2014, we were served with an additional complaint in the Superior Court of the State of California, County of Los Angeles, by a former employee of Junkfood and two former employees of Soffe at our Santa Fe Springs, California distribution facility alleging violations of California wage and hour laws and unfair business practices the same or substantially similar to those alleged in the Complaint and seeking the same or substantially similar relief as sought in the Complaint. This complaint was brought as a class action and sought to include all current and certain former employees of Junkfood, Soffe, our Delta Activewear business unit, the Soffe independent contractor named in the Complaint and an individual employee of such contractor within California who are or were non-exempt under applicable wage and hour laws. On September 17, 2015, an agreement in principle was reached between all parties to settle the above-referenced wage and hour matters, with the defendants in the matters agreeing to pay an aggregate amount of $300,000 in exchange for a comprehensive release of all claims at issue in the matters. Delta Apparel, Inc., Soffe and Junkfood collectively agreed to contribute $200,000 towards the aggregate settlement amount, and we had this amount included in our accrued expenses as of October 1, 2016, and October 3, 2015. The settlement agreement was approved by the applicable court and these matters have been finally resolved, with the agreed amounts funded subsequent to the 2016 fiscal year-end. 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. (b) Purchase Contracts We have entered into agreements, and have fixed prices, to purchase yarn, finished fabric, and finished apparel and headwear products. At September 30, 2017 , minimum payments under these contracts were as follows (in thousands): Yarn $ 6,679 Finished fabric 5,142 Finished products 20,860 $ 32,681 (c) Letters of Credit As of September 30, 2017 , we had outstanding standby letters of credit totaling $0.4 million . (d) Derivatives and Contingent Consideration 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. The following financial instruments were outstanding as of September 30, 2017 : Effective Date Notational Amount LIBOR Rate Maturity Date Interest Rate Swap July 19, 2017 $10 million 1.74 % July 19, 2019 Interest Rate Swap July 19, 2017 $10 million 1.99 % May 10, 2021 From time to time, we may purchase cotton option contracts to economically hedge the risk related to market fluctuations in the cost of cotton used in our operations. We do not receive hedge accounting treatment for these derivatives. As such, the realized and unrealized gains and losses associated with them are recorded within cost of goods sold on the Condensed Consolidated Statement of Operations. 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 market 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 Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest Rate Swap September 30, 2017 $ (56 ) — $ (56 ) — October 1, 2016 $ (182 ) — $ (182 ) — October 3, 2015 $ (697 ) — $ (697 ) — Cotton Options September 30, 2017 $ (125 ) (125 ) — $ — October 1, 2016 $ — — — $ — October 3, 2015 $ — — — $ — Contingent Consideration September 30, 2017 $ (1,600 ) — — $ (1,600 ) October 1, 2016 $ (2,500 ) — — $ (2,500 ) October 3, 2015 $ (3,100 ) — — $ (3,100 ) 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. Fair values for debt are based on quoted market prices for the same or similar issues or on the current rates offered to us for debt of the same remaining maturities (a Level 2 fair value measurement). In August 2013, we acquired Salt Life and issued 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 a Monte Carlo model which 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 at acquisition, as well as to remeasure the contingent consideration related to the acquisition of Salt Life at each reporting period. Accordingly, the fair value measurement for contingent consideration falls in Level 3 of the fair value hierarchy. At September 30, 2017, we had $1.6 million accrued in contingent consideration related to the acquisition of Salt Life, a $0.9 million reduction from the accrual at October 1, 2016. The reduction in the fair value of contingent consideration is based on the inputs into the Monte Carlo model, including the time remaining in the measurement period. The sales expectations for calendar year 2019 have been reduced from the sales expectations used in the valuation of contingent consideration at acquisition due to overall softness in the retail environment. The Art Gun contingent consideration agreement concluded in fiscal year 2017, and no contingent consideration was paid under the terms of our acquisition of the Art Gun business. The following table summarizes the fair value and presentation in the Consolidated Balance Sheets for derivatives as of September 30, 2017 , and October 1, 2016. September 30, October 1, Accrued expenses $ — $ (182 ) Deferred tax liabilities 21 70 Other liabilities (56 ) — Accumulated other comprehensive loss $ (35 ) $ (112 ) (e) 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 selling, general and administrative expenses) of approximately $2.2 million , $8.2 million and $10.1 million during fiscal years 2017, 2016, and 2015, respectively. The reduction in royalty expense is due to the March 31, 2017, sale of the Junkfood business to JMJD Ventures, LLC. See Note 3—Divestitures for further information on this transaction. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) Presented below is a summary of our unaudited consolidated quarterly financial information for the fiscal years ended September 30, 2017 , and October 1, 2016 (in thousands, except per share amounts): 2017 Quarter Ended 2016 Quarter Ended December 31, 2016 April 1, 2017 July 1, 2017 September 30, 2017 January 2, 2016 April 2, 2016 July 2, 2016 October 1, 2016 Net sales $ 85,336 $ 104,138 $ 104,281 $ 91,327 $ 90,171 $ 109,160 $ 111,552 $ 114,366 Gross profit 17,559 24,230 22,269 16,664 18,879 25,726 24,986 23,908 Operating income 471 7,520 5,851 2,337 2,227 5,931 4,227 3,947 Net earnings (loss) (602 ) 4,546 4,468 2,099 681 3,436 2,542 2,305 Basic EPS $ (0.08 ) $ 0.60 $ 0.59 $ 0.28 $ 0.09 $ 0.44 $ 0.33 $ 0.30 Diluted EPS $ (0.08 ) $ 0.57 $ 0.56 $ 0.27 $ 0.09 $ 0.43 $ 0.32 $ 0.29 For fiscal year 2017, diluted earnings per share have been adjusted to reflect the impact of adopting ASU 2016-9. See Note 2—Significant Accounting Policies (aa) Recently Adopted Accounting Pronouncements for further detail. As discussed in Note 4, gross profit and operating income in the quarters ended July 2, 2016, and October 1, 2016, included restructuring expenses related to the manufacturing realignment . |
Schedule II - Consolidated Valu
Schedule II - Consolidated Valuation and Qualifying Accounts | 12 Months Ended |
Sep. 30, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Consolidated Valuation and Qualifying Accounts | SCHEDULE II — CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS DELTA APPAREL, INC. AND SUBSIDIARIES (In thousands) ALLOWANCE FOR DOUBTFUL ACCOUNTS Beginning Balance Expense Write-Offs/ Credits Issued Ending Balance 2017 $ 569 $ 86 $ (248 ) $ 407 2016 1,470 195 (1,096 ) 569 2015 1,047 771 (348 ) 1,470 RETURNS AND ALLOWANCES Beginning Balance Expense Write-Offs/ Credits Issued Ending Balance 2017 $ 1,409 $ 8,980 $ (9,362 ) $ 1,027 2016 1,515 7,822 (7,928 ) 1,409 2015 2,113 12,173 (12,771 ) 1,515 TOTAL RESERVES FOR ALLOWANCES Beginning Balance Expense Write-Offs/ Credits Issued Ending Balance 2017 $ 1,978 $ 9,066 $ (9,610 ) $ 1,434 2016 2,985 8,017 (9,024 ) 1,978 2015 3,160 12,944 (13,119 ) 2,985 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS First Amendment to Fifth Amended and Restated Credit Agreement On November 27, 2017, Delta Apparel, Soffe, Junkfood, Salt Life, and Art Gun (collectively, the “Borrowers”) entered into a First Amendment to Fifth Amended and Restated Credit Agreement with Wells Fargo Bank, National Association (“Wells Fargo”) and the other lenders set forth therein (the “First Amendment”). The Fifth Amended and Restated Credit Agreement dated as of May 10, 2016, was filed as Exhibit 10.1 to a Quarterly Report on Form 10-Q filed with the SEC on May 12, 2016. The First Amendment amends the definition of Fixed Charge Coverage Ratio within the Amended Credit Agreement to permit up to $10 million of the proceeds received from the March 31, 2017, sale of certain assets of Junkfood to be used towards share repurchases for up to one year from the date of that transaction. In addition, the definition of Permitted Purchase Money Indebtedness is amended to extend the time period within which the Borrowers may enter into capital leases and to increase the aggregate principal amount of such leases into which the Borrowers may enter to up to $15 million . The definition of Permitted Investments is also amended to permit the Borrowers to make investments in entities that are not a party to the Amended Credit Agreement in an aggregate amount of up to $2 million . The First Amendment also permits Junkfood to change its name. See Part II, Item 9B. Other Information, for additional detail regarding the First Amendment. |
Significant Accounting Polici27
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation: Our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America and include the accounts of Delta Apparel and its wholly-owned domestic and foreign subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. We apply the equity method of accounting for investments in companies where we have less than a 50% ownership interest and over which we exert significant influence. We do not exercise control over these companies and do not have substantive participating rights. As such, these entities are not considered variable interest entities. We operate our business in two distinct segments: basics and branded. Although the two segments are similar in their production processes and regulatory environments, they are distinct in their economic characteristics, products, marketing, and distribution methods. |
Fiscal Year | Fiscal Year: We operate on a 52-53 week fiscal year ending on the Saturday closest to September 30. The 2017 and 2016 fiscal years were 52-week years that ended on September 30, 2017, and October 1, 2016, respectively. The 2015 fiscal year was a 53-week year that ended on October 3, 2015. |
Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make certain estimates and assumptions that affect the reported amounts and disclosures of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are adjusted to reflect actual experience when necessary. Significant estimates and assumptions affect many items in our financial statements; for example: allowance for doubtful trade receivables, sales returns and allowances, inventory obsolescence, the carrying value of goodwill, income tax assets and related valuation allowance. Our actual results may differ from our estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents consists of cash and temporary investments with original maturities of three months or less. |
Accounts Receivable | Accounts Receivable: Accounts receivable consists primarily of receivables from our customers arising from the sale of our products, and we generally do not require collateral from our customers. We actively monitor our exposure to credit risk through the use of credit approvals and credit limits. Accounts receivable is presented net of reserves for allowances which include allowance for doubtful accounts, returns and allowances. The reserves for allowances were $1.4 million and $2.0 million as of September 30, 2017, and October 1, 2016, respectively. We estimate the net collectibility of our accounts receivable and establish an allowance for doubtful accounts based upon this assessment. In situations where we are aware of a specific customer’s inability to meet its financial obligation, such as in the case of a bankruptcy filing, a specific reserve for bad debts is recorded against amounts due to reduce the net recognized receivable to the amount reasonably expected to be collected. For all other customers, reserves are determined through analysis of the aging of accounts receivable balances, historical bad debts, customer concentrations, customer credit-worthiness, current economic trends and changes in customer payment terms. In addition, reserves are established for other concessions that have been extended to customers, including advertising, markdowns and other accommodations, net of historical recoveries. These reserves are determined based upon historical deduction trends and evaluation of current market conditions. B |
Inventories | Inventories: We state inventories at the lower of cost or market using the first-in, first-out method. Inventory cost includes materials, labor and manufacturing overhead on manufactured inventory, and all direct and associated costs, including inbound freight, to acquire sourced products. See Note 2(y) for further information regarding yarn procurements. 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. |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment are stated at cost. We depreciate and amortize our assets on a straight-line method over the estimated useful lives of the assets, which range from three to twenty-five years. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the improvements. Assets that we acquire under non-cancelable leases that meet the criteria of capital leases are capitalized in property, plant and equipment and amortized over the useful lives of the related assets. When we retire or dispose of assets, the costs and accumulated depreciation or amortization are removed from the respective accounts, and we recognize any related gain or loss. Repairs and maintenance costs are charged to expense when incurred. Major replacements that substantially extend the useful life of an asset are capitalized and depreciated. |
Internally Developed Software Costs | Internally Developed Software Costs. We account for internally developed software in accordance with FASB Codification No. 350-40, Intangibles-Goodwill and Other, Internal-Use Software . After technical feasibility has been established, we capitalize the cost of our software development process, including payroll and payroll benefits, by tracking the software development hours invested in the software projects. We amortize our software development costs in accordance with the estimated economic life of the software, which is generally three to ten years. |
Impairment of Long-Lived Assets (Including Amortizable Intangible Assets) and Goodwill | Impairment of Long-Lived Assets (Including Amortizable Intangible Assets): In accordance with FASB Codification No. 360, Property, Plant, and Equipment , our long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. When evaluating assets for potential impairment, we compare the carrying amount of the asset to the undiscounted future net cash flows expected to be generated by the asset. If impairment is indicated, the asset is permanently written down to its estimated fair value (based upon future discounted cash flows) and an impairment loss is recognized. Impairment of Goodwill: We evaluate the carrying value of goodwill annually or more frequently if events or circumstances indicate that an impairment loss may have occurred. Such circumstances could include, but are not limited to, a significant adverse change in business climate, increased competition or other economic conditions. We complete our annual impairment test of goodwill on the first day of our third fiscal quarter. We estimate fair value of the applicable reporting unit or units using a discounted cash flow methodology. This methodology represents a level 3 fair value measurement as defined under ASC 820, Fair Value Measurements and Disclosures , since the inputs are not readily observable in the marketplace. The goodwill impairment testing process involves the use of significant assumptions, estimates and judgments with respect to a variety of factors, including sales, gross margins, selling, general and administrative expenses, capital expenditures, cash flows and the selection of an appropriate discount rate, all of which are subject to inherent uncertainties and subjectivity. When we perform goodwill impairment testing, our assumptions are based on annual business plans and other forecasted results, which we believe represent those of a market participant. We select a discount rate, which is used to reflect market-based estimates of the risks associated with the projected cash flows, based on the best information available as of the date of the impairment assessment. Based on the annual impairment analysis, there is not an impairment on the goodwill associated with Salt Life, the only goodwill recorded on our financial statements. Given the current macro-economic environment and the uncertainties regarding its potential impact on our business, there can be no assurance that our estimates and assumptions used in our impairment tests will prove to be accurate predictions of the future. If our assumptions regarding forecasted cash flows are not achieved, it is possible that an impairment review may be triggered and goodwill may be impaired. |
Goodwill and Intangibles | Goodwill and Intangible Assets: We recorded goodwill and intangible assets with definite lives, including trade names and trademarks, customer relationships, technology, and non-compete agreements, in conjunction with the acquisitions of Salt Life, Junkfood, Art Gun, and Coast. On March 31, 2017, we sold the Junkfood business to JMJD Ventures, LLC. See Note 3—Divestitures for further information on this transaction. Intangible assets are amortized based on their estimated economic lives, ranging from four to twenty years. Goodwill represents the excess of the purchase price over the fair value of net identified tangible and intangible assets and liabilities acquired, and is not amortized. The total amount of goodwill is expected to be deductible for tax purposes. See Note 7 — Goodwill and Intangible Assets for further details. |
Contingent Consideration | Contingent Consideration: At the end of each reporting period, we are required to remeasure the fair value of the contingent consideration related to the Salt Life and Art Gun acquisitions in accordance with FASB Codification No. 805, Business Combinations (“ASC 805”). Based on the operating results and projections, we analyzed the fair value of the contingent consideration for Salt Life as of September 30, 2017. |
Self-Insurance Reserves | Self-Insurance Reserves: Prior to January 1, 2015, our medical, prescription and dental care benefits were primarily self-insured. Effective January 1, 2015, our medical and prescription benefits became fully insured, but our dental insurance remained self-insured. Our prior self-insurance accruals were based on claims filed and estimates of claims incurred but not reported. We develop estimates of claims incurred but not reported based upon the historical time it takes for a claim to be reported and paid, and historical claim amounts |
Revenue Recognition | Revenue Recognition: Revenues from product sales are recognized when ownership is transferred to the customer, which includes not only the passage of title, but also the transfer of the risk of loss related to the product. At this point, the sales price is fixed and determinable, and we are reasonably assured of the collectibility of the sale. The majority of our sales are shipped FOB or Ex Works shipping point and revenue is therefore recognized when the goods are shipped to the customer. For sales that are shipped FOB or Ex Works destination point, we do not recognize the revenue until the goods are received by the customer. Shipping and handling charges billed to our customers are included in net revenue and the related costs are included in cost of goods sold. Revenues are reported on a net sales basis, which is computed by deducting product returns, discounts and estimated returns and allowances. We estimate returns and allowances on an ongoing basis by considering historical and current trends. Royalty revenue is primarily derived from royalties paid to us by licensees of our intellectual property rights, which include, among other things, trademarks and copyrights. We execute license agreements with our licensees detailing the terms of the licensing arrangement. Royalties are generally recognized upon receipt of the licensees' royalty report in accordance with the terms of the executed license agreement and when all other revenue recognition criteria have been met. |
Sales Tax | Sales Tax: Sales tax collected from customers and remitted to various government agencies are presented on a net basis (excluded from revenues) in the Consolidated Statements of Operations. |
Cost of Goods Sold | Cost of Goods Sold: We include all manufacturing and sourcing costs incurred prior to the receipt of finished goods at our distribution facilities in cost of goods sold. The cost of goods sold principally includes product cost, purchasing costs, inbound freight charges, insurance, inventory write-downs, and depreciation and amortization expense associated with our manufacturing and sourcing operations. Our gross margins may not be comparable to other companies, since some entities include costs related to their distribution network in cost of goods sold and we exclude them from gross margin, including them instead in selling, general and administrative expenses. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expense: We include in selling, general and administrative 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 selling, general and administrative expenses totaled $14.6 million , $15.1 million and $16.8 million in fiscal years 2017, 2016, and 2015, respectively. In addition, selling, general and administrative 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. |
Advertising Costs | Advertising Costs: All costs associated with advertising and promoting our products are expensed during the year in which they are incurred and are included in selling, general and administrative expenses in the Consolidated Statements of Operations. We participate in cooperative advertising programs with our customers. Depending on the customer, our defined cooperative programs allow the customer to use from 2% to 5% of its net purchases from us towards advertisements of our products. Because our products are being specifically advertised, we are receiving an identifiable benefit resulting from the consideration for cooperative advertising. Therefore, pursuant to FASB Codification No. 605-50, Revenue Recognition, Customers Payments and Incentives , we record cooperative advertising costs as a selling expense and the related cooperative advertising reserve as an accrued liability. |
Stock-Based Compensation | Stock-Based Compensation: Stock-based compensation cost is accounted for under the provisions of FASB Codification No. 718, Compensation – Stock Compensation (“ASC 718”), the Securities and Exchange Commission Staff Accounting Bulletin No. 107 ("SAB 107"), and the Securities and Exchange Commission Staff Accounting Bulletin No. 110 ("SAB 110"). ASC 718 requires all stock-based payments to employees, including grants of employee stock options, to be recognized as expense over the vesting period using a fair value method. The fair value of our restricted stock awards is the quoted market value of our stock on the grant date. For performance-based stock awards, in the event we determine it is no longer probable that we will achieve the minimum performance criteria specified in the award, we reverse all of the previously recognized compensation expense in the period such a determination is made. We recognize the fair value, net of estimated forfeitures, as a component of selling, general and administrative expense in the Consolidated Statements of Operations over the vesting period. |
Income Taxes | Income Taxes: We account for income taxes under the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
Earnings per Share | Earnings per Share: We compute basic earnings per share ("EPS") by dividing net income by the weighted average number of common shares outstanding during the year pursuant to FASB Codification No. 260, Earnings Per Share (“ASC 260”). Basic EPS includes no dilution. Diluted EPS is calculated, as set forth in ASC 260, by dividing net income by the weighted average number of common shares outstanding adjusted for the issuance of potentially dilutive shares. Potential dilutive shares consist of common stock issuable under the assumed exercise of outstanding stock options and awards using the treasury stock method. This method, as required by ASC 718, assumes that the potential common shares are issued and the proceeds from the exercise, along with the amount of compensation expense attributable to future services, are used to purchase common stock at the exercise date. The difference between the number of potential shares issued and the number of shares purchased is added as incremental shares to the actual number of shares outstanding to compute diluted EPS. Outstanding stock options and awards that result in lower potential shares issued than shares purchased under the treasury stock method are not included in the computation of diluted EPS since their inclusion would have an anti-dilutive effect on EPS. |
Foreign Currency Translations | Foreign Currency Translation: Our functional currency for our foreign operated manufacturing facilities is the United States dollar. We remeasure those assets and liabilities denominated in foreign currencies using exchange rates in effect at each balance sheet date. Property, plant and equipment and the related accumulated depreciation or amortization are recorded at the exchange rates in effect on the date we acquired the assets. Revenues and expenses denominated in foreign currencies are remeasured using average exchange rates during the period transacted. We recognize the resulting foreign exchange gains and losses as a component of other income and expense in the Consolidated Statements of Operations. These gains and losses are immaterial for all periods presented. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments: We use financial instruments in the normal course of our business. The carrying values approximate fair values for financial instruments that are short-term in nature, such as cash, accounts receivable and accounts payable. We estimate that the carrying value of our long-term debt approximates fair value based on the current rates offered to us for debt of the same remaining maturities. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss): Other Comprehensive Income (Loss) consists of net earnings (loss) and unrealized gains (losses) from cash flow hedges, net of tax. |
Yarn and Cotton Procurements | Yarn and Cotton Procurements: We have a supply agreement with Parkdale to supply our yarn requirements until December 31, 2018. Under the supply agreement, we purchase from Parkdale all of our yarn requirements for use in our manufacturing operations, excluding yarns that Parkdale does not manufacture or cannot manufacture due to temporary capacity constraints. The purchase price of yarn is based upon the cost of cotton plus a fixed conversion cost. Thus, we are subject to the commodity risk of cotton prices and cotton price movements, which could result in unfavorable yarn pricing for us. We fix the cotton prices as a component of the purchase price of yarn, pursuant to the supply agreement, in advance of the shipment of finished yarn from Parkdale. Prices are set according to prevailing prices, as reported by the New York Cotton Exchange, at the time we elect to fix specific cotton prices. |
Derivatives | Derivatives: From time to time we enter into forward contracts, option agreements or other instruments to limit our exposure to fluctuations in interest rates and raw material prices with respect to long-term debt and cotton purchases, respectively. We determine at inception whether the derivative instruments will be accounted for as hedges. We account for derivatives and hedging activities in accordance with FASB Codification No. 815, Derivatives and Hedging (“ASC 815”), as amended. ASC 815 establishes accounting and reporting standards for derivative instruments, including certain derivative instruments embedded in other contracts and hedging activities. It requires the recognition of all derivative instruments as either assets or liabilities in the Consolidated Balance Sheets and measurement of those instruments at fair value. The accounting treatment of changes in fair value depends upon whether or not a derivative instrument is designated as a hedge and, if so, the type of hedge. We include all derivative instruments at fair value in our Consolidated Balance Sheets. For derivative financial instruments related to the production of our products that are not designated as a hedge, we recognize the changes in fair value in cost of sales. For derivatives designated as cash flow hedges, to the extent effective, we recognize the changes in fair value in accumulated other comprehensive income (loss) until the hedged item is recognized in income. Any ineffectiveness in the hedge is recognized immediately in income in the line item that is consistent with the nature of the hedged risk. We formally document all relationships between hedging instruments and hedged items, as well as risk management objectives and strategies for undertaking various hedge transactions, at the inception of the transactions. We are exposed to counterparty credit risks on all derivatives. Because these amounts are recorded at fair value, the full amount of our exposure is the carrying value of these instruments. We only enter into derivative transactions with well established institutions and therefore we believe the counterparty credit risk is minimal. From time to time, we may purchase cotton option contracts to economically hedge the risk related to market fluctuations in the cost of cotton used in our operations. We do not receive hedge accounting treatment for these derivatives. As such, the realized gains and losses associated with them were recorded within cost of goods sold on the Consolidated Statement of Operations. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements: In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, (ASU 2016-09). ASU 2016-09 simplifies various aspects of accounting for share-based payment transactions. The most significant change from this update amends the presentation of excess tax benefits and deficiencies in the financial statements by eliminating tax pools and requiring these benefits and deficiencies to be reflected in the income statement. It also allows employer withholding on share based compensation up to the maximum statutory rate without the possibility of triggering liability accounting and allows companies to make a policy election as it relates to forfeitures. Additionally, the ASU provides definitive guidance related to presentation of income tax benefit/deficiencies as an operating activity and payment of taxes for employee withholding from stock compensation as a financing activity within the Consolidated Statements of Cash Flows. ASU 2016-09 was adopted in our fiscal year beginning October 2, 2016, and we have elected to continue our policy of estimating forfeitures. As a result of this adoption, we recalculated previously released diluted earnings per share with updated calculations depicted in Note 17—Quarterly Financial Information. This resulted from the exclusion of excess tax benefits and tax deficiencies from the calculation of assumed proceeds. Diluted earnings per share declined $0.01 per share in our March and June fiscal quarters and remained unchanged in our December quarter. (ab) Recently Issued Accounting Pronouncements Not Yet Adopted: In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers , ("ASU 2014-09"). This new guidance requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. ASU 2014-09 is effective for annual periods beginning after December 15, 2017, for public business entities and permits the use of either the retrospective or cumulative effect transition method. Early application is permitted only for annual reporting periods beginning after December 15, 2016. ASU 2014-09 will therefore be effective in our fiscal year beginning September 30, 2018. Although we have not yet determined our adoption method, we have identified a committee, agreed on a methodology for review of our revenue arrangements and initiated the review process for adoption of this ASU, and are evaluating the effect that ASU 2014-09 will have on our Consolidated Financial Statements and related disclosures. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory , ("ASU 2015-11"). This new guidance requires an entity to measure inventory at the lower of cost and net realizable value. Currently, entities measure inventory at the lower of cost or market. ASU 2015-11 replaces market with net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured under last-in, first-out or the retail inventory method. ASU 2015-11 requires prospective adoption for inventory measurements for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities. Early application is permitted. ASU 2015-11 will therefore be effective in our fiscal year beginning October 1, 2017. We are evaluating the effect that ASU 2015-11 will have on our Consolidated Financial Statements and related disclosures, but do not believe it will have a material impact. In February 2016, the FASB issued ASU No. 2016-02, Leases, (ASU 2016-02). ASU 2016-02 requires lessees to recognize assets and liabilities for most leases. All leases will be required to be recorded on the balance sheet with the exception of short-term leases. Early application is permitted. The guidance must be adopted using a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. ASU 2016-02 is effective for financial statements issued for annual periods beginning after December 15, 2018, and interim periods within those annual periods. ASU 2016-02 will therefore be effective in our fiscal year beginning September 29, 2019. We are evaluating the effect that ASU 2016-02 will have on our Consolidated Financial Statements and related disclosures. |
Significant Accounting Polici28
Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Interest Rate Derivatives | In September 2013, we entered into four interest rate swap agreements, as follows: Effective Date Notational Amount LIBOR Rate Maturity Date Interest Rate Swap September 9, 2013 $15 million 1.1700 % September 9, 2016 Interest Rate Swap September 9, 2013 $15 million 1.6480 % September 11, 2017 Interest Rate Swap September 19, 2013 $15 million 1.0030 % September 19, 2016 Interest Rate Swap September 19, 2013 $15 million 1.4490 % September 19, 2017 During fiscal years 2017, 2016, and 2015, these interest rate swap agreements had minimal ineffectiveness and were considered highly-effective hedges. In July 2017, we entered into two interest rate swap agreements, as follows: Effective Date Notational Amount LIBOR Rate Maturity Date Interest Rate Swap July 19, 2017 $10 million 1.7400 % July 19, 2019 Interest Rate Swap July 19, 2017 $10 million 1.9900 % May 10, 2021 |
Restructuring Plan (Tables)
Restructuring Plan (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | As part of the closing of the Maiden facility and the expansion of operations at our offshore facilities, we incurred the following costs (in thousands): Fiscal Year Ended October 1, 2016 Excess manufacturing costs related to the shutdown and start-up operations $ 1,096 Total expenses included in cost of goods sold 1,096 Employee termination costs 597 Fixed asset impairment 607 Inventory and supply part impairment 144 Other costs to exit facility 393 Total restructuring costs 1,741 Total manufacturing realignment expenses $ 2,837 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net of Reserves | Inventories, net of reserves of $9.8 million and $8.8 million as of September 30, 2017, and October 1, 2016, respectively, consist of the following (in thousands): September 30, October 1, Raw materials $ 8,973 $ 11,442 Work in process 18,543 18,158 Finished goods 147,035 134,647 $ 174,551 $ 164,247 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consist of the following (in thousands, except economic life data): Estimated Useful Life September 30, October 1, Land and land improvements 25 years $ 572 $ 572 Buildings 20 years 2,989 3,369 Machinery and equipment 10 years 75,838 72,068 Computers and software 3-10 years 20,128 20,889 Furniture and fixtures 7 years 2,251 1,977 Leasehold improvements 3-10 years 5,275 3,686 Vehicles and related equipment 5 years 791 808 Construction in progress N/A 3,035 3,719 110,879 107,088 Less accumulated depreciation and amortization (68,173 ) (63,585 ) $ 42,706 $ 43,503 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Intangible Assets | Goodwill and components of intangible assets consist of the following (in thousands): September 30, 2017 October 1, 2016 Cost Accumulated Amortization Net Value Cost Accumulated Amortization Net Value Economic Life Goodwill $ 19,917 $ — $ 19,917 $ 36,729 $ — $ 36,729 N/A Intangibles: Tradename/trademarks $ 16,090 $ (2,193 ) $ 13,897 $ 17,620 $ (2,514 ) $ 15,106 20 - 30 yrs Customer relationships — — — 7,220 (4,016 ) 3,204 20 yrs Technology 1,220 (947 ) 273 1,220 (826 ) 394 10 yrs License Agreements 2,100 (423 ) 1,677 2,100 (320 ) 1,780 15 - 30 yrs Non-compete agreements 1,037 (733 ) 304 1,287 (849 ) 438 4 – 8.5 yrs Total intangibles $ 20,447 $ (4,296 ) $ 16,151 $ 29,447 $ (8,525 ) $ 20,922 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following (in thousands): September 30, October 1, Accrued employee compensation and benefits $ 12,683 $ 12,899 Taxes accrued and withheld 931 1,003 Accrued insurance 126 263 Accrued advertising 524 256 Accrued royalties 113 1,653 Accrued commissions 327 460 Accrued freight 1,060 1,105 Other 1,940 4,067 $ 17,704 $ 21,706 |
Restructuring and Related Costs | As part of the closing of the Maiden facility and the expansion of operations at our offshore facilities, we incurred the following costs (in thousands): Fiscal Year Ended October 1, 2016 Excess manufacturing costs related to the shutdown and start-up operations $ 1,096 Total expenses included in cost of goods sold 1,096 Employee termination costs 597 Fixed asset impairment 607 Inventory and supply part impairment 144 Other costs to exit facility 393 Total restructuring costs 1,741 Total manufacturing realignment expenses $ 2,837 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consists of the following (in thousands): September 30, October 1, Revolving U.S. credit facility, interest at base rate or adjusted LIBOR rate plus an applicable margin (interest at 2.9% on September 30, 2017) due May 2021 $ 74,608 $ 92,137 Revolving credit facility with Banco Ficohsa, a Honduran bank, interest at 8% due March 2019 (denominated in U.S. dollars) 4,975 5,000 Term loan with Banco Ficohsa, a Honduran bank, interest at 7%, monthly installments beginning March, 2011 through March 2018 (denominated in U.S. dollars) 486 1,459 Term loan with Banco Ficohsa, a Honduran bank, interest at 7.5%, monthly installments beginning November 2014 through December 2020 (denominated in U.S. dollars) 2,000 2,600 Term loan with Banco Ficohsa, a Honduran bank, interest at 8%, monthly installments beginning June 2016 through April 2022 (denominated in U.S. dollars) 1,358 1,650 Term loan with Banco Ficohsa, a Honduran bank, interest at 8%, monthly installments beginning June 2016 through July 2017 (denominated in U.S. dollars) — 4,833 Term loan with Banco Ficohsa, a Honduran bank, interest at 8%, monthly installments beginning October 2017 through September 2021 (denominated in U.S. dollars) 4,083 — Salt Life acquisition promissory note, imputed interest at 3.62%, quarterly payments beginning September 2016 through June 2019 5,344 8,116 92,854 115,795 Less current installments (7,548 ) (9,192 ) Long-term debt, excluding current installments $ 85,306 $ 106,603 |
Schedule of aggregate maturities of debt | The aggregate maturities of debt at September 30, 2017 , are as follows (in thousands): Fiscal Year Amount 2018 $ 7,548 2019 11,381 2020 4,062 2021 69,669 2022 194 Thereafter — $ 92,854 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Provision for income taxes | The provision for income taxes consists of the following (in thousands): Period ended September 30, 2017 October 1, 2016 October 3, 2015 Current: Federal $ 215 $ 36 $ — State 47 78 60 Foreign 127 179 186 Total current $ 389 $ 293 $ 246 Deferred: Federal $ (112 ) $ 1,462 $ 1,320 State 380 326 439 Total deferred 268 1,788 1,759 Provision for income taxes $ 657 $ 2,081 $ 2,005 |
Schedule of income before income tax, domestic and foreign | For financial reporting purposes our income before provision for income taxes includes the following components (in thousands): Period ended September 30, 2017 October 1, 2016 October 3, 2015 United States $ 1,767 $ 3,966 $ 3,434 Foreign 9,401 7,079 6,664 $ 11,168 $ 11,045 $ 10,098 |
Reconciliation between actual provision for incomes taxes and federal statutory income tax rate | A reconciliation between actual provision for income taxes and the provision for income taxes computed using the federal statutory income tax rate of 34.0% is as follows (in thousands): Period ended September 30, 2017 October 1, 2016 October 3, 2015 Income tax expense at the statutory rate $ 3,797 $ 3,755 $ 3,433 State income tax (benefit) expense, net of federal income tax effect (80 ) 447 374 Impact of state rate changes 115 116 — Rate difference and nondeductible items in foreign jurisdictions 33 54 (30 ) Impact of foreign earnings in tax-free zone (3,052 ) (2,319 ) (2,168 ) Valuation allowance adjustments 362 (71 ) — Nondeductible compensation — — 335 Nondeductible amortization and other permanent differences (496 ) 96 81 Other (22 ) 3 (20 ) Provision for income taxes $ 657 $ 2,081 $ 2,005 |
Significant components of deferred tax assets and liabilities | Significant components of our deferred tax assets and liabilities are as follows (in thousands): September 30, October 1, Deferred tax assets: Federal net operating loss carryforwards $ 2,902 $ 6,256 State net operating loss carryforwards 1,573 1,784 Derivative — interest rate contracts 21 70 Alternative minimum tax credit carryforward 404 135 Inventories and reserves 3,681 3,426 Accrued compensation and benefits 3,139 3,331 Receivable allowances and reserves 543 767 Other 98 89 Gross deferred tax assets 12,361 15,858 Less valuation allowance — state net operating loss (493 ) (131 ) Net deferred tax assets 11,868 15,727 Deferred tax liabilities: Depreciation (3,501 ) (2,868 ) Goodwill and intangibles (3,319 ) (7,463 ) Other (46 ) (150 ) Gross deferred tax liabilities (6,866 ) (10,481 ) Net deferred tax asset 5,002 5,246 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Leases [Abstract] | |
Schedule of Future Minimum Payments | Future minimum lease payments under non-cancelable operating leases as of September 30, 2017 , were as follows (in thousands): Fiscal Year Amount 2018 $ 8,259 2019 7,856 2020 6,703 2021 4,542 2022 3,220 Thereafter 14,386 $ 44,966 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of benefit obligations | The following table presents the benefit obligation, which is included in accrued expenses in the accompanying balance sheets (in thousands). September 30, October 1, Balance at beginning of year $ 344 $ 412 Interest expense 5 6 Benefits paid (6 ) (81 ) Adjustment — 7 Balance at end of year $ 343 $ 344 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of stock option activity | A summary of our stock option activity during the periods ended September 30, 2017, October 1, 2016, and October 3, 2015, is as follows: Fiscal Year Ended September 30, 2017 October 1, 2016 October 3, 2015 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Stock options outstanding, beginning of period 86,000 $ 8.30 86,000 $ 8.30 502,000 $ 12.27 Stock options exercised (80,000 ) $ 8.30 — $ — (350,000 ) $ 13.12 Stock options forfeited — $ — — $ — (66,000 ) $ 12.94 Stock options outstanding, end of period 6,000 $ 8.30 86,000 $ 8.30 86,000 $ 8.30 Stock options outstanding and exercisable, end of period 6,000 $ 8.30 86,000 $ 8.30 86,000 $ 8.30 |
Shares authorized by exercise price range | The following table summarizes information about the unvested restricted stock units and performance units as of September 30, 2017 . Restricted Stock Units/Performance Units Number of Units Average Market Price on Date of Grant Vesting Date* Fiscal Year 2015 Restricted Stock Units 95,000 $10.52 December 2018 Fiscal Year 2015 Restricted Stock Units 140,000 $10.73 December 2018 Fiscal Year 2015 Performance Units 52,208 $10.52 November 2017 Fiscal Year 2016 Restricted Stock Units 57,600 $14.04 November 2017 Fiscal Year 2016 Performance Units 42,048 $14.04 November 2017 Fiscal Year 2017 Performance Units 42,000 $17.97 December 2018 Fiscal Year 2017 Performance Units 42,000 $17.97 December 2019 Fiscal Year 2017 Performance Units 42,000 $17.97 December 2020 512,856 * These awards are eligible to vest upon the filing of our Annual Report on Form 10-K for the applicable fiscal year, which is anticipated to be during the month and year indicated in this column. The following table summarizes information about our stock options outstanding, all of which are vested and exercisable as of September 30, 2017: Date of Option Grant Number of Options Outstanding and Exercisable Exercise Price Grant-Date Fair Value Expiration Date February 8, 2008 6,000 $ 8.30 $ 2.95 February 8, 2018 6,000 |
Schedule of nonvested restricted stock units activity | The following table summarizes the restricted stock unit and performance unit award activity during the periods ended September 30, 2017, October 1, 2016, and October 3, 2015: Fiscal Year Ended September 30, 2017 October 1, 2016 October 3, 2015 Number of Units Weighted average grant date fair value Number of Units Weighted average grant date fair value Number of Units Weighted average grant date fair value Units outstanding, beginning of fiscal period 585,638 $ 11.54 518,800 $ 10.80 215,352 $ 14.31 Units granted 126,000 $ 17.97 159,138 $ 14.03 524,000 $ 10.81 Units issued (64,846 ) $ 11.14 (49,529 ) $ 12.32 (69,657 ) $ 14.31 Units forfeited (133,936 ) $ 12.02 (42,771 ) $ 10.87 (150,895 ) $ 14.26 Units outstanding, end of fiscal period 512,856 $ 13.09 585,638 $ 11.54 518,800 $ 10.80 |
2010 Stock Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of stock option activity | A summary of the stock option activity during the periods ended September 30, 2017, October 1, 2016, and October 3, 2015, is as follows: Fiscal Year Ended September 30, 2017 October 1, 2016 October 3, 2015 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Stock options outstanding, beginning of period 10,000 $ 13.07 10,000 $ 13.07 50,000 $ 13.47 Stock options granted — — — — — — Stock options exercised — — — — — — Stock options forfeited — — — — (40,000 ) 13.56 Stock options outstanding, end of period 10,000 $ 13.07 10,000 $ 13.07 10,000 $ 13.07 Stock options outstanding and exercisable, end of period 10,000 $ 13.07 10,000 $ 13.07 10,000 $ 13.07 |
Shares authorized by exercise price range | The following table summarizes information about our stock options outstanding, all of which are vested and exercisable as of September 30, 2017: Date of Option Grant Number of Options Outstanding and Exercisable Exercise Price Grant-Date Fair Value Expiration Date February 2, 2011 10,000 $ 13.07 $ 6.35 February 18, 2018 10,000 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment reporting information by segment | Our total assets and equity investment by segment are as follows (in thousands): As of September 30, 2017 October 1, 2016 Total assets by segment: Basics 191,585 178,347 Branded 117,437 156,119 Corporate 8,780 10,186 Total assets 317,802 344,652 Equity investment in joint venture: Basics 4,140 3,593 Branded — — Total equity investment in joint venture 4,140 3,593 Fiscal Year Ended September 30, 2017 October 1, 2016 October 3, 2015 Segment net sales: Basics $ 280,283 $ 277,146 $ 282,467 Branded 104,799 148,103 166,675 Total net sales 385,082 425,249 449,142 Segment operating income: Basics 24,189 22,307 13,060 Branded 3,943 6,950 12,379 Total segment operating income 28,132 29,257 25,439 Purchases of property, plant and equipment: Basics 4,829 10,734 6,037 Branded 2,111 1,501 689 Corporate 145 80 1,047 Total purchases of property, plant and equipment 7,085 12,315 7,773 Depreciation and amortization: Basics 6,553 6,437 6,208 Branded 2,647 2,772 2,902 Corporate 409 416 432 Total depreciation and amortization 9,609 9,625 9,542 |
Reconciliation of segment operating income to consolidated income before income taxes | The following reconciles the segment operating income to the consolidated income before provision for income taxes (in thousands): Fiscal Year Ended September 30, 2017 October 1, 2016 October 3, 2015 Segment operating income $ 28,132 $ 29,257 $ 25,439 Unallocated corporate expenses 11,953 12,925 9,320 Unallocated interest expense 5,011 5,287 6,021 Consolidated income before provision for income taxes $ 11,168 $ 11,045 $ 10,098 |
Supplemental information regarding revenues by geographic area | Supplemental information regarding our revenues by geographic area based on the location of the customer is as follows (in thousands): Fiscal Year Ended September 30, 2017 October 1, 2016 October 3, 2015 United States $ 383,672 $ 418,627 $ 442,207 Foreign 1,410 6,622 6,935 Total net sales $ 385,082 $ 425,249 $ 449,142 |
Summarized financial information by geographic area | Summarized financial information by geographic area is as follows (in thousands): As of September 30, 2017 October 1, 2016 United States $ 19,587 $ 18,523 Honduras 18,151 19,650 El Salvador 3,853 4,215 Mexico 1,115 1,115 All foreign countries 23,119 24,980 Total long-lived assets, excluding goodwill and intangibles $ 42,706 $ 43,503 |
Repurchase of Common Stock (Tab
Repurchase of Common Stock (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of shares repurchased | The following table summarizes the purchases of our common stock for the quarter ended September 30, 2017: Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans Dollar Value of Shares that May Yet Be Purchased Under the Plans July 2 to August 5, 2017 66,319 $ 20.20 66,319 $3.8 million August 6 to September 2, 2017 128,710 $ 19.21 128,710 $1.3 million September 3 to September 30, 2017 — $ — — $11.3 million Total 195,029 $ 19.54 195,029 $11.3 million |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum payments under purchase contracts | At September 30, 2017 , minimum payments under these contracts were as follows (in thousands): Yarn $ 6,679 Finished fabric 5,142 Finished products 20,860 $ 32,681 |
Outstanding financial instruments | The following financial instruments were outstanding as of September 30, 2017 : Effective Date Notational Amount LIBOR Rate Maturity Date Interest Rate Swap July 19, 2017 $10 million 1.74 % July 19, 2019 Interest Rate Swap July 19, 2017 $10 million 1.99 % May 10, 2021 |
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 Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Interest Rate Swap September 30, 2017 $ (56 ) — $ (56 ) — October 1, 2016 $ (182 ) — $ (182 ) — October 3, 2015 $ (697 ) — $ (697 ) — Cotton Options September 30, 2017 $ (125 ) (125 ) — $ — October 1, 2016 $ — — — $ — October 3, 2015 $ — — — $ — Contingent Consideration September 30, 2017 $ (1,600 ) — — $ (1,600 ) October 1, 2016 $ (2,500 ) — — $ (2,500 ) October 3, 2015 $ (3,100 ) — — $ (3,100 ) |
Summary of fair value and presentation in the consolidated balance sheets for derivatives | The following table summarizes the fair value and presentation in the Consolidated Balance Sheets for derivatives as of September 30, 2017 , and October 1, 2016. September 30, October 1, Accrued expenses $ — $ (182 ) Deferred tax liabilities 21 70 Other liabilities (56 ) — Accumulated other comprehensive loss $ (35 ) $ (112 ) |
Quarterly Financial Informati42
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Presented below is a summary of our unaudited consolidated quarterly financial information for the fiscal years ended September 30, 2017 , and October 1, 2016 (in thousands, except per share amounts): 2017 Quarter Ended 2016 Quarter Ended December 31, 2016 April 1, 2017 July 1, 2017 September 30, 2017 January 2, 2016 April 2, 2016 July 2, 2016 October 1, 2016 Net sales $ 85,336 $ 104,138 $ 104,281 $ 91,327 $ 90,171 $ 109,160 $ 111,552 $ 114,366 Gross profit 17,559 24,230 22,269 16,664 18,879 25,726 24,986 23,908 Operating income 471 7,520 5,851 2,337 2,227 5,931 4,227 3,947 Net earnings (loss) (602 ) 4,546 4,468 2,099 681 3,436 2,542 2,305 Basic EPS $ (0.08 ) $ 0.60 $ 0.59 $ 0.28 $ 0.09 $ 0.44 $ 0.33 $ 0.30 Diluted EPS $ (0.08 ) $ 0.57 $ 0.56 $ 0.27 $ 0.09 $ 0.43 $ 0.32 $ 0.29 For fiscal year 2017, diluted earnings per share have been adjusted to reflect the impact of adopting ASU 2016-9. See Note 2—Significant Accounting Policies (aa) Recently Adopted Accounting Pronouncements for further detail. As discussed in Note 4, gross profit and operating income in the quarters ended July 2, 2016, and October 1, 2016, included restructuring expenses related to the manufacturing realignment . |
Significant Accounting Polici43
Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended | ||||||||||||
Sep. 30, 2017USD ($)$ / shares | Jul. 01, 2017$ / shares | Apr. 01, 2017$ / shares | Dec. 31, 2016$ / shares | Oct. 01, 2016USD ($)$ / shares | Jul. 02, 2016$ / shares | Apr. 02, 2016$ / shares | Jan. 02, 2016$ / shares | Sep. 30, 2017USD ($)operating_segment$ / shares | Oct. 01, 2016USD ($)$ / shares | Oct. 03, 2015USD ($)$ / shares | Sep. 28, 2013operating_segment | Jul. 31, 2017derivative | Sep. 30, 2013derivative | |
Significant Accounting Policies [Line Items] | ||||||||||||||
Number of business segments | operating_segment | 2 | 2 | ||||||||||||
Accounts Receivable | ||||||||||||||
Reserves | $ 1,400,000 | $ 2,000,000 | $ 1,400,000 | $ 2,000,000 | ||||||||||
Bad debt expense (less than 1%) | 1.00% | 1.00% | 1.00% | |||||||||||
Contingent Consideration | ||||||||||||||
Contingent consideration | 1,600,000 | 2,500,000 | $ 1,600,000 | $ 2,500,000 | $ 3,100,000 | |||||||||
Self-insurance reserves (less than $0.1 million) | $ 100,000 | 100,000 | $ 100,000 | 100,000 | ||||||||||
Advertising Costs | ||||||||||||||
Percentage of net purchases available for advertising, minimum | 2.00% | 2.00% | ||||||||||||
Percentage of net purchases available for advertising, maximum | 5.00% | 5.00% | ||||||||||||
Advertising costs | $ 4,600,000 | 4,400,000 | 4,700,000 | |||||||||||
Cooperative advertising programs costs | 1,100,000 | 1,100,000 | 1,100,000 | |||||||||||
Accumulated other comprehensive loss | $ 35,000 | $ 112,000 | 35,000 | 112,000 | ||||||||||
Derivatives | ||||||||||||||
AOCI gain (loss) | $ 1,000,000 | $ 300,000 | $ (200,000) | |||||||||||
Diluted EPS (usd per share) | $ / shares | $ (0.27) | $ (0.56) | $ (0.57) | $ 0.08 | $ (0.29) | $ (0.32) | $ (0.43) | $ (0.09) | $ (1.33) | $ (1.12) | $ (1) | |||
Selling, general and administrative expenses | ||||||||||||||
Contingent Consideration | ||||||||||||||
Distribution costs | $ 14,600,000 | $ 15,100,000 | $ 16,800,000 | |||||||||||
Interest Rate Swap | ||||||||||||||
Derivatives | ||||||||||||||
Number of instruments held | derivative | 2 | 4 | ||||||||||||
Minimum | ||||||||||||||
Accounts Receivable | ||||||||||||||
Estimated useful life | 3 years | |||||||||||||
Intangibles, economic life (in years) | 4 years | |||||||||||||
Maximum | ||||||||||||||
Significant Accounting Policies [Line Items] | ||||||||||||||
Ownership percentage (percent) | 50.00% | 50.00% | ||||||||||||
Accounts Receivable | ||||||||||||||
Estimated useful life | 25 years | |||||||||||||
Intangibles, economic life (in years) | 20 years | |||||||||||||
Internally developed software | Minimum | ||||||||||||||
Accounts Receivable | ||||||||||||||
Intangibles, economic life (in years) | 3 years | |||||||||||||
Internally developed software | Maximum | ||||||||||||||
Accounts Receivable | ||||||||||||||
Intangibles, economic life (in years) | 10 years | |||||||||||||
Maturity Date 9/9/2016 | ||||||||||||||
Derivatives | ||||||||||||||
Notional amount | $ 15,000,000 | $ 15,000,000 | ||||||||||||
LIBOR Rate | 1.17% | 1.17% | ||||||||||||
Maturity Date 9/11/2017 | ||||||||||||||
Derivatives | ||||||||||||||
Notional amount | $ 15,000,000 | $ 15,000,000 | ||||||||||||
LIBOR Rate | 1.648% | 1.648% | ||||||||||||
Maturity Date 9/19/2016 | ||||||||||||||
Derivatives | ||||||||||||||
Notional amount | $ 15,000,000 | $ 15,000,000 | ||||||||||||
LIBOR Rate | 1.003% | 1.003% | ||||||||||||
Maturity Date 9/19/2017 | ||||||||||||||
Derivatives | ||||||||||||||
Notional amount | $ 15,000,000 | $ 15,000,000 | ||||||||||||
LIBOR Rate | 1.449% | 1.449% | ||||||||||||
Maturity Date 7/19/2019 | ||||||||||||||
Derivatives | ||||||||||||||
Notional amount | $ 10,000,000 | $ 10,000,000 | ||||||||||||
LIBOR Rate | 1.74% | 1.74% | ||||||||||||
Maturity Date 5/10/2021 | ||||||||||||||
Derivatives | ||||||||||||||
Notional amount | $ 10,000,000 | $ 10,000,000 | ||||||||||||
LIBOR Rate | 1.99% | 1.99% | ||||||||||||
Accounting Standards Update 2016-09 | ||||||||||||||
Derivatives | ||||||||||||||
Diluted EPS (usd per share) | $ / shares | $ 0.01 | $ 0.01 |
Divestitures (Details)
Divestitures (Details) - Discontinued Operations, Disposed of by Sale - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 02, 2015 | Oct. 03, 2015 |
Junkfood | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sale of Junkfood, consideration | $ 27.9 | ||
Sale of business | 25 | ||
Note receivable | 2.9 | ||
Gain on sale of asset | $ 1.3 | ||
The Game | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sale of business | $ 14.9 | ||
Gain on sale of asset | $ 5.6 | ||
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | |||
Inventory | 6 | ||
Fixed assets | 0.4 | ||
Other assets | 0.1 | ||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||
Legal fees | 0.3 | ||
Selling costs | 0.4 | ||
Inventory devaluation | 0.8 | ||
Incentive related costs | $ 1.4 | 1.4 | |
Other expenses | 0.8 | ||
David Peyser Sportswear | The Game | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sale of business | 14.9 | ||
Gain on sale of asset | $ 7.7 |
Restructuring Plan (Details)
Restructuring Plan (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 0 | $ 1,741 | $ 0 | |
Total manufacturing realignment expenses | 2,837 | |||
Payments for restructuring | 100 | $ 400 | ||
Facility Closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Proceeds from sale of assets, per agreement | $ 1,700 | |||
Cost of goods sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 1,096 | |||
Restructuring Charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 1,741 | |||
Restructuring Charges | Employee termination costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 597 | |||
Restructuring Charges | Other costs to exit facility | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 393 | |||
Inventory and supply part | Restructuring Charges | Facility Closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 144 | |||
Fixed Asset | Restructuring Charges | Facility Closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 607 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Oct. 01, 2016 |
Inventory Disclosure [Abstract] | ||
Inventory reserves | $ 9,800 | $ 8,800 |
Inventories, net of reserves: | ||
Raw materials | 8,973 | 11,442 |
Work in process | 18,543 | 18,158 |
Finished goods | 147,035 | 134,647 |
Inventories, net | $ 174,551 | 164,247 |
Discontinued Operations, Disposed of by Sale | Junkfood | ||
Inventories, net of reserves: | ||
Raw materials | 2,600 | |
Finished goods | $ 1,700 |
Property, Plant and Equipment47
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 110,879 | $ 107,088 |
Less accumulated depreciation and amortization | (68,173) | (63,585) |
Property, plant and equipment, net | $ 42,706 | 43,503 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 25 years | |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 25 years | |
Property, plant and equipment, gross | $ 572 | 572 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 20 years | |
Property, plant and equipment, gross | $ 2,989 | 3,369 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 10 years | |
Property, plant and equipment, gross | $ 75,838 | 72,068 |
Computers and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 20,128 | 20,889 |
Computers and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Computers and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 10 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years | |
Property, plant and equipment, gross | $ 2,251 | 1,977 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 5,275 | 3,686 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 10 years | |
Vehicles and related equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Property, plant and equipment, gross | $ 791 | 808 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,035 | $ 3,719 |
Goodwill and Intangible Asset48
Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Aug. 31, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2011 | Mar. 31, 2017 | |
Goodwill and Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill, Cost | $ 19,917 | $ 36,729 | ||||
Goodwill, Net Value | 19,917 | 36,729 | ||||
Intangibles, Cost | 20,447 | 29,447 | ||||
Intangibles, Accumulated Amortization | (4,296) | (8,525) | ||||
Intangibles, Net Value | 16,151 | 20,922 | ||||
Goodwill acquired | $ 600 | |||||
Additional intangible assets due to acquisitions | $ 100 | |||||
Amortization of intangible assets | 1,120 | 1,330 | $ 1,338 | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||
Amortization expense estimate for 2018 | 900 | |||||
Amortization expense estimate for 2019 | 900 | |||||
Amortization expense estimate for 2020 | 700 | |||||
Amortization expense estimate for 2021 | 600 | |||||
Amortization expense estimate for 2022 | $ 600 | |||||
Minimum | ||||||
Goodwill and Finite-Lived Intangible Assets [Line Items] | ||||||
Intangibles, economic life (in years) | 4 years | |||||
Maximum | ||||||
Goodwill and Finite-Lived Intangible Assets [Line Items] | ||||||
Intangibles, economic life (in years) | 20 years | |||||
Tradename/trademarks | ||||||
Goodwill and Finite-Lived Intangible Assets [Line Items] | ||||||
Intangibles, Cost | $ 16,090 | 17,620 | ||||
Intangibles, Accumulated Amortization | (2,193) | (2,514) | ||||
Intangibles, Net Value | $ 13,897 | 15,106 | ||||
Tradename/trademarks | Minimum | ||||||
Goodwill and Finite-Lived Intangible Assets [Line Items] | ||||||
Intangibles, economic life (in years) | 20 years | |||||
Tradename/trademarks | Maximum | ||||||
Goodwill and Finite-Lived Intangible Assets [Line Items] | ||||||
Intangibles, economic life (in years) | 30 years | |||||
Customer relationships | ||||||
Goodwill and Finite-Lived Intangible Assets [Line Items] | ||||||
Intangibles, Cost | $ 0 | 7,220 | ||||
Intangibles, Accumulated Amortization | 0 | (4,016) | ||||
Intangibles, Net Value | $ 0 | 3,204 | ||||
Intangibles, economic life (in years) | 20 years | |||||
Technology | ||||||
Goodwill and Finite-Lived Intangible Assets [Line Items] | ||||||
Intangibles, Cost | $ 1,220 | 1,220 | ||||
Intangibles, Accumulated Amortization | (947) | (826) | ||||
Intangibles, Net Value | $ 273 | 394 | ||||
Intangibles, economic life (in years) | 10 years | |||||
License Agreements | ||||||
Goodwill and Finite-Lived Intangible Assets [Line Items] | ||||||
Intangibles, Cost | $ 2,100 | 2,100 | ||||
Intangibles, Accumulated Amortization | (423) | (320) | ||||
Intangibles, Net Value | $ 1,677 | 1,780 | ||||
License Agreements | Minimum | ||||||
Goodwill and Finite-Lived Intangible Assets [Line Items] | ||||||
Intangibles, economic life (in years) | 15 years | |||||
License Agreements | Maximum | ||||||
Goodwill and Finite-Lived Intangible Assets [Line Items] | ||||||
Intangibles, economic life (in years) | 30 years | |||||
Non-compete agreements | ||||||
Goodwill and Finite-Lived Intangible Assets [Line Items] | ||||||
Intangibles, Cost | $ 1,037 | 1,287 | ||||
Intangibles, Accumulated Amortization | (733) | (849) | ||||
Intangibles, Net Value | $ 304 | $ 438 | ||||
Non-compete agreements | Minimum | ||||||
Goodwill and Finite-Lived Intangible Assets [Line Items] | ||||||
Intangibles, economic life (in years) | 4 years | |||||
Non-compete agreements | Maximum | ||||||
Goodwill and Finite-Lived Intangible Assets [Line Items] | ||||||
Intangibles, economic life (in years) | 8 years 6 months | |||||
Cost Apparel | ||||||
Goodwill and Finite-Lived Intangible Assets [Line Items] | ||||||
Acquisition cost | $ 313 | |||||
Junkfood | Discontinued Operations, Disposed of by Sale | ||||||
Goodwill and Finite-Lived Intangible Assets [Line Items] | ||||||
Decrease in goodwill | $ 16,800 | |||||
Junkfood | Discontinued Operations, Disposed of by Sale | Trademarks | ||||||
Goodwill and Finite-Lived Intangible Assets [Line Items] | ||||||
Intangibles included in disposal | 600 | |||||
Junkfood | Discontinued Operations, Disposed of by Sale | Customer relationships | ||||||
Goodwill and Finite-Lived Intangible Assets [Line Items] | ||||||
Intangibles included in disposal | $ 3,000 |
Accrued Expenses (Accrued Expen
Accrued Expenses (Accrued Expenses) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Oct. 01, 2016 |
Payables and Accruals [Abstract] | ||
Accrued employee compensation and benefits | $ 12,683 | $ 12,899 |
Taxes accrued and withheld | 931 | 1,003 |
Accrued insurance | 126 | 263 |
Accrued advertising | 524 | 256 |
Accrued royalties | 113 | 1,653 |
Accrued commissions | 327 | 460 |
Accrued freight | 1,060 | 1,105 |
Other | 1,940 | 4,067 |
Total accrued expenses | $ 17,704 | $ 21,706 |
Long-Term Debt (Schedule of Deb
Long-Term Debt (Schedule of Debt Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Oct. 01, 2016 |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 92,854 | $ 115,795 |
Less current installments | (7,548) | (9,192) |
Long-term debt, excluding current installments | 85,306 | 106,603 |
Loans Payable | Term Loan | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 486 | 1,459 |
Interest rate (as a percentage) | 7.00% | |
Loans Payable | Banco Ficohsa, Loan 1 | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percentage) | 7.50% | |
Loans Payable | Banco Ficohsa, Loan 2 | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percentage) | 8.00% | |
Term Loan | Banco Ficohsa, Loan 1 | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 2,000 | 2,600 |
Term Loan | Banco Ficohsa, Loan 2 | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 1,358 | 1,650 |
Term Loan | Banco Ficohsa, Loan Monthly Installments beginning June 2016 | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 0 | 4,833 |
Interest rate (as a percentage) | 8.00% | |
Notes Payable, Other Payables | Promissory Note, Maturity Date June 30, 2016 | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 4,083 | 0 |
Interest rate (as a percentage) | 8.00% | |
Notes Payable, Other Payables | Promissory Note, Maturity Date June 30, 2019 | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 5,344 | 8,116 |
Interest rate (as a percentage) | 3.62% | |
Revolving Credit Facility | Line of Credit | Revolving Credit Facility, due May 2021 | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 74,608 | 92,137 |
Revolving Credit Facility | Line of Credit | Revolving Credit Facility, due March 2019 | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 4,975 | $ 5,000 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) | Dec. 06, 2013USD ($) | Aug. 27, 2013USD ($)debt_instrument | Mar. 31, 2011 | Sep. 30, 2017USD ($) | Oct. 01, 2016USD ($) | May 10, 2016USD ($) | Dec. 28, 2013USD ($) |
Debt Instrument [Line Items] | |||||||
Payment for termination of contract, per agreement | $ 3,500,000 | ||||||
Escrow deposit | $ 3,000,000 | ||||||
Payment for contract termination | $ 800,000 | ||||||
Royalty payment, remaining per installment | 195,000 | ||||||
Accrued Royalties | $ 600,000 | 600,000 | |||||
Revolving Credit Facility | Revolving Credit Facility, due May 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Imputed interest (as a percentage) | 2.90% | ||||||
Revolving Credit Facility | Revolving Credit Facility, due March 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate (as a percentage) | 8.00% | ||||||
Revolving Credit Facility | Revolving Credit Facility, due May 2017 | |||||||
Debt Instrument [Line Items] | |||||||
Monthly installment payment | $ 200,000 | ||||||
Amount in excess of average daily principal | $ 145,000,000 | ||||||
Fixed charge coverage ratio period | 12 months | ||||||
Availability requirement, for dividends and stock repurchases (as a percentage) | 15.00% | ||||||
Average period for availability requirement, for dividends and stock repurchases (in days) | 30 days | ||||||
Aggregate amount of dividends and stock repurchases, benchmark | $ 10,000,000 | ||||||
Aggregate amount of dividends and stock repurchases, benchmark basis spread based on cumulative net income | 50.00% | ||||||
Retained earnings, amount available for dividends and stock repurchases | $ 7,700,000 | $ 10,700,000 | |||||
Revolving Credit Facility | Revolving Credit Facility, due May 2017 | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Annual facility fee (as a percentage) | 0.25% | ||||||
Fixed charge coverage ratio (FCCR) | 1.1 | ||||||
Revolving Credit Facility | Revolving Credit Facility, due May 2017 | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Annual facility fee (as a percentage) | 0.375% | ||||||
Revolving Credit Facility | Revolving Credit Facility, due May 2017 | Federal Funds | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate basis | federal funds | ||||||
Basis spread on variable rate (as a percent) | 0.50% | ||||||
Revolving Credit Facility | Revolving Credit Facility, due May 2017 | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate basis | LIBOR | ||||||
Basis spread on variable rate (as a percent) | 1.00% | ||||||
Revolving Credit Facility | Revolving Credit Facility, due May 2017 | Prime Rate | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate basis | prime rate | ||||||
Revolving Credit Facility | Revolving Credit Facility, due May 2016 | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding under credit facility | $ 74,600,000 | ||||||
Average interest rate (as a percentage) | 2.90% | ||||||
Remaining borrowing capacity | $ 37,500,000 | ||||||
Fixed charge coverage ratio period | 12 months | ||||||
Fixed charge coverage ratio (FCCR) | 1.1 | ||||||
Notes Payable, Other Payables | Promissory Note, Maturity Date June 30, 2016 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate (as a percentage) | 8.00% | ||||||
Notes Payable, Other Payables | Promissory Note, Maturity Date June 30, 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate (as a percentage) | 3.62% | ||||||
Term Loan | Banco Ficohsa, Loan Monthly Installments beginning June 2016 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate (as a percentage) | 8.00% | ||||||
Salt Life Acquisition | Notes Payable, Other Payables | |||||||
Debt Instrument [Line Items] | |||||||
Number of promissory notes issued (debt instruments) | debt_instrument | 2 | ||||||
Debt instrument, face amount | $ 22,000,000 | ||||||
One-time installment payment | $ 9,000,000 | ||||||
Discounted value | $ 5,300,000 | ||||||
Salt Life Acquisition | Notes Payable, Other Payables | Promissory Note, Maturity Date June 30, 2016 | |||||||
Debt Instrument [Line Items] | |||||||
Imputed interest (as a percentage) | 1.92% | ||||||
Salt Life Acquisition | Notes Payable, Other Payables | Promissory Note, Maturity Date June 30, 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Imputed interest (as a percentage) | 3.62% | ||||||
Letter of Credit | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 25,000,000 | ||||||
Revolving Credit Facility | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit facility, average excess availability, base amount | 145,000,000 | ||||||
Maximum borrowing capacity | $ 200,000,000 | ||||||
Periodic payment term (in months) | 6 months | ||||||
Payment term (in years) | 18 months |
Long-Term Debt (Schedule of Agg
Long-Term Debt (Schedule of Aggregate Maturities) (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Maturities of Long-term Debt [Abstract] | |
2,018 | $ 7,548 |
2,019 | 11,381 |
2,020 | 4,062 |
2,021 | 69,669 |
2,022 | 194 |
Thereafter | 0 |
Long-term Debt | $ 92,854 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes and Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Current: | |||
Federal | $ 215 | $ 36 | $ 0 |
State | 47 | 78 | 60 |
Foreign | 127 | 179 | 186 |
Total current | 389 | 293 | 246 |
Deferred: | |||
Federal | (112) | 1,462 | 1,320 |
State | 380 | 326 | 439 |
Total deferred | 268 | 1,788 | 1,759 |
Provision for income taxes | 657 | 2,081 | 2,005 |
Income (Loss) from Continuing Operations, Before Income Taxes | |||
United States | 1,767 | 3,966 | 3,434 |
Foreign | 9,401 | 7,079 | 6,664 |
Earnings before provision for income taxes | 11,168 | 11,045 | 10,098 |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation | |||
Income tax expense at the statutory rate | 3,797 | 3,755 | 3,433 |
State income tax (benefit) expense, net of federal income tax effect | (80) | 447 | 374 |
Impact of state rate changes | 115 | 116 | 0 |
Rate difference and nondeductible items in foreign jurisdictions | 33 | 54 | (30) |
Impact of foreign earnings in tax-free zone | (3,052) | (2,319) | (2,168) |
Valuation allowance adjustments | 362 | (71) | 0 |
Nondeductible compensation | 0 | 0 | 335 |
Nondeductible amortization and other permanent differences | (496) | 96 | 81 |
Other | (22) | 3 | $ (20) |
Deferred tax assets: | |||
Federal net operating loss carryforwards | 2,902 | 6,256 | |
State net operating loss carryforwards | 1,573 | 1,784 | |
Derivative — interest rate contracts | 21 | 70 | |
Alternative minimum tax credit carryforward | 404 | 135 | |
Inventories and reserves | 3,681 | 3,426 | |
Accrued compensation and benefits | 3,139 | 3,331 | |
Receivable allowances and reserves | 543 | 767 | |
Other | 98 | 89 | |
Gross deferred tax assets | 12,361 | 15,858 | |
Less valuation allowance — state net operating loss | (493) | (131) | |
Net deferred tax assets | 11,868 | 15,727 | |
Deferred tax liabilities: | |||
Depreciation | (3,501) | (2,868) | |
Goodwill and intangibles | (3,319) | (7,463) | |
Other | (46) | (150) | |
Gross deferred tax liabilities | (6,866) | (10,481) | |
Net deferred tax asset | $ 5,002 | $ 5,246 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Oct. 01, 2016 | |
Operating Loss Carryforwards [Line Items] | ||
Income tax rate, percentage | 34.00% | |
Undistributed earnings of foreign subsidiaries | $ 75,500 | |
Gross deferred tax assets | $ 12,361 | $ 15,858 |
Change in deferred tax assets valuation allowance | 50.00% | 50.00% |
Domestic Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 8,500 | $ 18,300 |
Gross deferred tax assets | 2,900 | 6,300 |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 41,600 | $ 45,400 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Operating Leased Assets [Line Items] | |||
Rent expense | $ 8,800 | $ 9,300 | $ 9,400 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,018 | 8,259 | ||
2,019 | 7,856 | ||
2,020 | 6,703 | ||
2,021 | 4,542 | ||
2,022 | 3,220 | ||
Thereafter | 14,386 | ||
Total future minimum due | $ 44,966 | ||
Land and Building | Minimum | |||
Operating Leased Assets [Line Items] | |||
Renewal period, years | 5 years | ||
Land and Building | Maximum | |||
Operating Leased Assets [Line Items] | |||
Renewal period, years | 10 years |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Retirement Benefits [Abstract] | |||
Contributions to 401(k) Plan | $ 900 | $ 1,100 | $ 1,100 |
Discount rate used in determining the liability | 6.00% | 6.00% | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance at beginning of year | $ 344 | $ 412 | |
Interest expense | 5 | 6 | |
Benefits paid | (6) | (81) | |
Actuarial adjustment | 0 | 7 | |
Balance at end of year | $ 343 | $ 344 | $ 412 |
Stock-based Compensation (Narra
Stock-based Compensation (Narrative) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Sep. 27, 2014 | Jul. 01, 2017 | Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense recorded | $ 2.3 | $ 2 | $ 1.9 | |||
Tax benefits associated with compensation costs | 0.9 | 0.8 | $ 0.7 | |||
Equity instruments forfeited (shares) | 5,200 | |||||
Vested in period, fair value | $ 1 | |||||
Unrecognized compensation cost related to non-vested awards | 2.8 | |||||
Intrinsic value of options exercised | $ 1 | $ 0.3 | ||||
Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted in the period (shares) | 83,788 | |||||
Equity instruments, vested in period (shares) | 8,438 | |||||
Equity instruments granted in the period (shares) | 355,000 | |||||
Equity instruments forfeited (shares) | 12,019 | |||||
Performance Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted in the period (shares) | 75,350 | |||||
Equity instruments granted in the period (shares) | 169,000 | |||||
Performance Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted in the period (shares) | 126,000 | |||||
Equity instruments, vested in period (shares) | 53,248 | |||||
Equity instruments forfeited (shares) | 133,676 | |||||
One year vesting period | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity instruments granted in the period (shares) | 52,000 | |||||
Two year vesting period | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity instruments granted in the period (shares) | 52,000 | |||||
2010 Stock Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate number of shares that may be delivered | 500,000 | |||||
Equity instruments granted in the period (shares) | 0 | 0 | 0 | |||
2010 Stock Plan | Restricted Stock Units and Performance Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted in the period (shares) | 126,000 | 159,138 | 524,000 | |||
Equity instruments forfeited (shares) | 133,936 | 42,771 | 150,895 | |||
2010 Stock Plan | One year vesting period | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Unrecognized compensation cost related to non-vested awards (period of recognition) | 3 years 2 months 12 days | |||||
Option Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Tax benefit realized from exercise of stock options | $ 0.1 | $ 0.7 | ||||
Management | Option Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Aggregate number of shares that may be delivered | 2,000,000 | |||||
Exercise term, from dates of grant | 10 years | |||||
Management | Option Plan | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Management | Option Plan | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 4 years | |||||
Vest Upon Filing of 10-K for the Year Ending September 29, 2018 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity instruments, vested in period (shares) | 42,000 | |||||
Upon Filing of Annual Report in 2016 | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted in the period (shares) | 8,438 | |||||
Upon Filing of Annual Report in 2016 | Performance Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity instruments granted in the period (shares) | 53,248 | 65,000 | ||||
Upon Filing of Annual Report in 2017 | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Awards granted in the period (shares) | 75,350 | |||||
Upon Filing of Annual Quarterly Report for the Period Ending June Twenty Seven Twenty Fifteen | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity instruments granted in the period (shares) | 69,657 | |||||
Upon Filing of Annual Quarterly Report for the Period Ending June Twenty Seven Twenty Fifteen | Performance Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity instruments granted in the period (shares) | 49,529 | |||||
Vest Upon Filing of 10-K for the Year Ending September 28, 2019 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity instruments, vested in period (shares) | 42,000 | |||||
Vest Upon Filing of 10-K for the Year Ending October 3, 2020 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity instruments, vested in period (shares) | 42,000 | |||||
Junkfood | Discontinued Operations, Disposed of by Sale | Restricted Stock Units and Performance Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Accelerated compensation cost | $ 0.3 | |||||
Junkfood | Discontinued Operations, Disposed of by Sale | Restricted Stock Units (RSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity instruments, vested in period (shares) | 45,000 | |||||
Stock issued during the period (shares) | 42,500 | |||||
Stock vested, paid in cash, number of shares (shares) | 2,500 | |||||
Junkfood | Discontinued Operations, Disposed of by Sale | Performance Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity instruments, vested in period (shares) | 5,000 |
Stock-based Compensation (Summa
Stock-based Compensation (Summary of Stock Option Activity) (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
2010 Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at end of period, Shares | 10,000 | 10,000 | 50,000 |
Granted, Shares | 0 | 0 | 0 |
Exercised, Shares | 0 | 0 | 0 |
Forfeited, Shares | 0 | 0 | (40,000) |
Outstanding at end of period, Shares | 10,000 | 10,000 | 10,000 |
Exercisable at end of year, Shares | 10,000 | 10,000 | 10,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding at beginning of year, Weighted Average Exercise Price (usd per share) | $ 13.07 | $ 13.07 | $ 13.47 |
Granted, Weighted Average Exercise Price (usd per share) | 0 | 0 | 0 |
Exercised, Weighted Average Exercise Price (usd per share) | 0 | 0 | 0 |
Forfeited, Weighted Average Exercise Price (usd per share) | 0 | 0 | 13.56 |
Outstanding at end of year, Weighted Average Exercise Price (usd per share) | 13.07 | 13.07 | 13.07 |
Exercisable at end of year, Weighted Average Exercise Price (usd per share) | $ 13.07 | $ 13.07 | $ 13.07 |
Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at end of period, Shares | 86,000 | 86,000 | 502,000 |
Exercised, Shares | (80,000) | 0 | (350,000) |
Forfeited, Shares | 0 | 0 | (66,000) |
Outstanding at end of period, Shares | 6,000 | 86,000 | 86,000 |
Exercisable at end of year, Shares | 6,000 | 86,000 | 86,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding at beginning of year, Weighted Average Exercise Price (usd per share) | $ 8.30 | $ 8.30 | $ 12.27 |
Exercised, Weighted Average Exercise Price (usd per share) | 8.30 | 0 | 13.12 |
Forfeited, Weighted Average Exercise Price (usd per share) | 0 | 0 | 12.94 |
Outstanding at end of year, Weighted Average Exercise Price (usd per share) | 8.30 | 8.30 | 8.30 |
Exercisable at end of year, Weighted Average Exercise Price (usd per share) | $ 8.30 | $ 8.30 | $ 8.30 |
Stock-based Compensation (Sum59
Stock-based Compensation (Summary of Nonvested Options) (Details) - $ / shares | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Number of Units | |||
Units forfeited (shares) | (5,200) | ||
Restricted Stock Units and Performance Stock Units | 2010 Stock Plan | |||
Number of Units | |||
Units outstanding, beginning of fiscal year (shares) | 585,638 | 518,800 | 215,352 |
Units granted (shares) | 126,000 | 159,138 | 524,000 |
Units issued (shares) | (64,846) | (49,529) | (69,657) |
Units forfeited (shares) | (133,936) | (42,771) | (150,895) |
Units outstanding, end of fiscal year (shares) | 512,856 | 585,638 | 518,800 |
Weighted average grant date fair value | |||
Units outstanding, beginning of fiscal year (usd per share) | $ 11.54 | $ 10.80 | $ 14.31 |
Units granted (usd per share) | 17.97 | 14.03 | 10.81 |
Units issued (usd per share) | 11.14 | 12.32 | 14.31 |
Units forfeited (usd per share) | 12.02 | 10.87 | 14.26 |
Units outstanding, end of fiscal year (usd per share) | $ 13.09 | $ 11.54 | $ 10.80 |
(Stock-based Compensation-Exerc
(Stock-based Compensation-Exercise Price Range) (Details) | Sep. 30, 2017$ / sharesshares |
Restricted Stock Units (RSUs) | 2010 Stock Plan | Exercise Price Range One | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Units (shares) | 95,000 |
Grant-Date Fair Value (usd per share) | $ / shares | $ 10.52 |
Restricted Stock Units (RSUs) | 2010 Stock Plan | Exercise Price Range Two | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Units (shares) | 140,000 |
Grant-Date Fair Value (usd per share) | $ / shares | $ 10.73 |
Restricted Stock Units (RSUs) | 2010 Stock Plan | Exercise Price Range Four | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Units (shares) | 57,600 |
Grant-Date Fair Value (usd per share) | $ / shares | $ 14.04 |
Performance Awards | 2010 Stock Plan | Exercise Price Range Three | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Units (shares) | 52,208 |
Grant-Date Fair Value (usd per share) | $ / shares | $ 10.52 |
Performance Awards | 2010 Stock Plan | Exercise Price Range Five | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Units (shares) | 42,048 |
Grant-Date Fair Value (usd per share) | $ / shares | $ 14.04 |
Performance Awards | 2010 Stock Plan | Exercise Price Range Six | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Units (shares) | 42,000 |
Grant-Date Fair Value (usd per share) | $ / shares | $ 17.97 |
Performance Awards | 2010 Stock Plan | Exercise Price Range Seven | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Units (shares) | 42,000 |
Grant-Date Fair Value (usd per share) | $ / shares | $ 17.97 |
Performance Awards | 2010 Stock Plan | Exercise Price Range Eight | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Units (shares) | 42,000 |
Grant-Date Fair Value (usd per share) | $ / shares | $ 17.97 |
Restricted Stock Units and Performance Stock Units | 2010 Stock Plan | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Units (shares) | 512,856 |
Stock Options | 2010 Stock Plan | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Units (shares) | 10,000 |
Stock Options | 2010 Stock Plan | Exercise Price Range Two | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Units (shares) | 10,000 |
Exercise Price (usd per share) | $ / shares | $ 13.07 |
Grant-Date Fair Value (usd per share) | $ / shares | $ 6.35 |
Stock Options | Option Plan | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Units (shares) | 6,000 |
Stock Options | Option Plan | Exercise Price Range Four | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Number of Units (shares) | 6,000 |
Exercise Price (usd per share) | $ / shares | $ 8.30 |
Grant-Date Fair Value (usd per share) | $ / shares | $ 2.95 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2017USD ($) | Jul. 01, 2017USD ($) | Apr. 01, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 01, 2016USD ($) | Jul. 02, 2016USD ($) | Apr. 02, 2016USD ($) | Jan. 02, 2016USD ($) | Sep. 30, 2017USD ($)operating_segment | Oct. 01, 2016USD ($) | Oct. 03, 2015USD ($) | Sep. 28, 2013operating_segment | |
Segment Reporting Information [Line Items] | ||||||||||||
Number of business segments | operating_segment | 2 | 2 | ||||||||||
Net sales | $ 91,327 | $ 104,281 | $ 104,138 | $ 85,336 | $ 114,366 | $ 111,552 | $ 109,160 | $ 90,171 | $ 385,082 | $ 425,249 | $ 449,142 | |
Segment operating income | 2,337 | 5,851 | 7,520 | 471 | 3,947 | 4,227 | 5,931 | 2,227 | 16,179 | 16,332 | 16,119 | |
Purchases of property and equipment | 7,085 | 12,315 | 7,773 | |||||||||
Depreciation and amortization | 9,609 | 9,625 | 9,542 | |||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | ||||||||||||
Segment operating income | 2,337 | $ 5,851 | $ 7,520 | $ 471 | 3,947 | $ 4,227 | $ 5,931 | $ 2,227 | 16,179 | 16,332 | 16,119 | |
Unallocated interest expense | 11,953 | 12,925 | 9,320 | |||||||||
Unallocated interest expense | 5,011 | 5,287 | 6,021 | |||||||||
Earnings before provision for income taxes | 11,168 | 11,045 | 10,098 | |||||||||
Segment assets | 317,802 | 344,652 | 317,802 | 344,652 | ||||||||
Equity investment in joint venture | 4,140 | 3,593 | ||||||||||
Geographic Areas, Long-Lived Assets | ||||||||||||
Total long-lived assets, excluding goodwill and intangibles | 42,706 | 43,503 | 42,706 | 43,503 | ||||||||
United States | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 383,672 | 418,627 | 442,207 | |||||||||
Geographic Areas, Long-Lived Assets | ||||||||||||
Total long-lived assets, excluding goodwill and intangibles | 19,587 | 18,523 | 19,587 | 18,523 | ||||||||
Foreign | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 1,410 | 6,622 | 6,935 | |||||||||
Geographic Areas, Long-Lived Assets | ||||||||||||
Total long-lived assets, excluding goodwill and intangibles | 23,119 | 24,980 | 23,119 | 24,980 | ||||||||
Honduras | ||||||||||||
Geographic Areas, Long-Lived Assets | ||||||||||||
Total long-lived assets, excluding goodwill and intangibles | 18,151 | 19,650 | 18,151 | 19,650 | ||||||||
El Salvador | ||||||||||||
Geographic Areas, Long-Lived Assets | ||||||||||||
Total long-lived assets, excluding goodwill and intangibles | 3,853 | 4,215 | 3,853 | 4,215 | ||||||||
Mexico | ||||||||||||
Geographic Areas, Long-Lived Assets | ||||||||||||
Total long-lived assets, excluding goodwill and intangibles | 1,115 | 1,115 | 1,115 | 1,115 | ||||||||
Basics | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 280,283 | 277,146 | 282,467 | |||||||||
Segment operating income | 24,189 | 22,307 | 13,060 | |||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | ||||||||||||
Segment operating income | 24,189 | 22,307 | 13,060 | |||||||||
Equity investment in joint venture | 4,140 | 3,593 | ||||||||||
Branded | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Net sales | 104,799 | 148,103 | 166,675 | |||||||||
Segment operating income | 3,943 | 6,950 | 12,379 | |||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | ||||||||||||
Segment operating income | 3,943 | 6,950 | 12,379 | |||||||||
Equity investment in joint venture | 0 | 0 | ||||||||||
Segment operating income | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Segment operating income | 28,132 | 29,257 | 25,439 | |||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | ||||||||||||
Segment operating income | 28,132 | 29,257 | 25,439 | |||||||||
Segment operating income | Basics | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Purchases of property and equipment | 4,829 | 10,734 | 6,037 | |||||||||
Depreciation and amortization | 6,553 | 6,437 | 6,208 | |||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | ||||||||||||
Segment assets | 191,585 | 178,347 | 191,585 | 178,347 | ||||||||
Segment operating income | Branded | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Purchases of property and equipment | 2,111 | 1,501 | 689 | |||||||||
Depreciation and amortization | 2,647 | 2,772 | 2,902 | |||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | ||||||||||||
Segment assets | 117,437 | 156,119 | 117,437 | 156,119 | ||||||||
Unallocated interest expense | ||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | ||||||||||||
Unallocated interest expense | 5,011 | 5,287 | 6,021 | |||||||||
Corporate | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Purchases of property and equipment | 145 | 80 | 1,047 | |||||||||
Depreciation and amortization | 409 | 416 | $ 432 | |||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | ||||||||||||
Segment assets | $ 8,780 | $ 10,186 | $ 8,780 | $ 10,186 |
Repurchase of Common Stock (Nar
Repurchase of Common Stock (Narrative) (Details) - USD ($) | 12 Months Ended | 39 Months Ended | 51 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | Oct. 03, 2015 | Oct. 01, 2016 | |
Equity [Abstract] | |||||
Shares authorized for repurchase | $ 50,000,000 | ||||
Stock Repurchase Program, Authorized Additional Shares for Repurchase, Amount | $ 10,000,000 | ||||
Total Number of Shares Purchased | 413,337 | 217,568 | 140,336 | 2,893,487 | |
Shares repurchased, value | $ 7,800,000 | $ 3,500,000 | $ 2,100,000 | $ 38,700,000 |
Repurchase of Common Stock (Sha
Repurchase of Common Stock (Shares Repurchased) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | 51 Months Ended | ||||
Sep. 30, 2017 | Sep. 02, 2017 | Aug. 05, 2017 | Sep. 30, 2017 | Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | Oct. 01, 2016 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Total Number of Shares Purchased | 413,337 | 217,568 | 140,336 | 2,893,487 | ||||
Dollar Value of Shares that May Yet Be Purchased Under the Plans | $ 11.3 | $ 11.3 | $ 11.3 | |||||
Common Stock | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Total Number of Shares Purchased | 0 | 128,710 | 66,319 | 195,029 | ||||
Average Price Paid per Share | $ 0 | $ 19.21 | $ 20.20 | $ 19.54 | ||||
Dollar Value of Shares that May Yet Be Purchased Under the Plans | $ 11.3 | $ 1.3 | $ 3.8 | $ 11.3 | $ 11.3 | |||
Common Stock | Publicly Announced Plan | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Total Number of Shares Purchased | 0 | 128,710 | 66,319 | 195,029 |
Commitments and Contingencies64
Commitments and Contingencies (Purchase Contracts) (Details) - USD ($) $ in Thousands | Sep. 17, 2015 | Sep. 30, 2017 | Oct. 01, 2016 |
Loss Contingency, Estimate | |||
Minimum payments | $ 32,681 | ||
Yarn | |||
Loss Contingency, Estimate | |||
Minimum payments | 6,679 | ||
Finished fabric | |||
Loss Contingency, Estimate | |||
Minimum payments | 5,142 | ||
Finished products | |||
Loss Contingency, Estimate | |||
Minimum payments | 20,860 | ||
The Sports Authority Bankruptcy Litigation | Minimum | |||
Loss Contingency, Estimate | |||
Range of possible loss | 0 | ||
The Sports Authority Bankruptcy Litigation | Maximum | |||
Loss Contingency, Estimate | |||
Range of possible loss | $ 3,300 | ||
California Wage and Hour Litigation | |||
Loss Contingency, Estimate | |||
Amount awarded to other party | $ 200 | ||
Delta Apparel, Soffe and Junkfood | California Wage and Hour Litigation | |||
Loss Contingency, Estimate | |||
Amount awarded to other party | $ 300 | ||
Pending Litigation | California Wage and Hour Litigation | |||
Loss Contingency, Estimate | |||
Range of possible loss | $ 900 |
Commitments and Contingencies65
Commitments and Contingencies (Letters of Credit) (Details) $ in Millions | Sep. 30, 2017USD ($) |
Standby Letters of Credit | |
Line of Credit Facility [Line Items] | |
Letters of credit | $ 0.4 |
Commitments and Contingencies66
Commitments and Contingencies (Derivatives and Contingent Consideration) (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Interest Rate Swap | $ (56,000) | $ (182,000) | $ (697,000) |
Contingent Consideration | (1,600,000) | (2,500,000) | (3,100,000) |
Change in fair value of contingent consideration | 900,000 | 600,000 | 500,000 |
Accrued expenses | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Cotton Options | 0 | (182,000) | |
Deferred tax liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Cotton Options | 21,000 | 70,000 | |
Other liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Cotton Options | (56,000) | 0 | |
Accumulated other comprehensive loss | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Cotton Options | (35,000) | (112,000) | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Interest Rate Swap | 0 | 0 | 0 |
Contingent Consideration | 0 | 0 | 0 |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Interest Rate Swap | (56,000) | (182,000) | (697,000) |
Contingent Consideration | 0 | 0 | 0 |
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Interest Rate Swap | 0 | 0 | 0 |
Contingent Consideration | (1,600,000) | (2,500,000) | (3,100,000) |
Maturity Date 9/9/2016 | |||
Interest Rate Derivatives [Abstract] | |||
Notional amount | $ 15,000,000 | ||
LIBOR Rate | 1.17% | ||
Maturity Date 7/19/2019 | |||
Interest Rate Derivatives [Abstract] | |||
Notional amount | $ 10,000,000 | ||
LIBOR Rate | 1.74% | ||
Maturity Date 9/19/2016 | |||
Interest Rate Derivatives [Abstract] | |||
Notional amount | $ 15,000,000 | ||
LIBOR Rate | 1.003% | ||
Maturity Date 5/10/2021 | |||
Interest Rate Derivatives [Abstract] | |||
Notional amount | $ 10,000,000 | ||
LIBOR Rate | 1.99% | ||
Cotton Options | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Cotton Options | $ (125,000) | 0 | 0 |
Cotton Options | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Cotton Options | (125,000) | 0 | 0 |
Cotton Options | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Cotton Options | 0 | 0 | 0 |
Cotton Options | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Abstract] | |||
Cotton Options | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies67
Commitments and Contingencies (License Agreements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Royalty expense | $ 2.2 | $ 8.2 | $ 10.1 |
Quarterly Financial Informati68
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Oct. 01, 2016 | Jul. 02, 2016 | Apr. 02, 2016 | Jan. 02, 2016 | Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Net sales | $ 91,327 | $ 104,281 | $ 104,138 | $ 85,336 | $ 114,366 | $ 111,552 | $ 109,160 | $ 90,171 | $ 385,082 | $ 425,249 | $ 449,142 |
Gross profit | 16,664 | 22,269 | 24,230 | 17,559 | 23,908 | 24,986 | 25,726 | 18,879 | 80,722 | 93,499 | 88,319 |
Operating income | 2,337 | 5,851 | 7,520 | 471 | 3,947 | 4,227 | 5,931 | 2,227 | 16,179 | 16,332 | 16,119 |
Net earnings (loss) | $ 2,099 | $ 4,468 | $ 4,546 | $ (602) | $ 2,305 | $ 2,542 | $ 3,436 | $ 681 | $ 10,511 | $ 8,964 | $ 8,093 |
Basic EPS ( usd per share) | $ 0.28 | $ 0.59 | $ 0.60 | $ (0.08) | $ 0.30 | $ 0.33 | $ 0.44 | $ 0.09 | $ 1.40 | $ 1.16 | $ 1.03 |
Diluted EPS (usd per share) | $ 0.27 | $ 0.56 | $ 0.57 | $ (0.08) | $ 0.29 | $ 0.32 | $ 0.43 | $ 0.09 | $ 1.33 | $ 1.12 | $ 1 |
Schedule II - Consolidated Va69
Schedule II - Consolidated Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Oct. 01, 2016 | Oct. 03, 2015 | |
Allowance For Doubtful Accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | $ 569 | $ 1,470 | $ 1,047 |
Expense | 86 | 195 | 771 |
Deductions | (248) | (1,096) | (348) |
Ending Balance | 407 | 569 | 1,470 |
Returns and Allowances | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | 1,409 | 1,515 | 2,113 |
Expense | 8,980 | 7,822 | 12,173 |
Deductions | (9,362) | (7,928) | (12,771) |
Ending Balance | 1,027 | 1,409 | 1,515 |
Total Reserves For Allowances | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning Balance | 1,978 | 2,985 | 3,160 |
Expense | 9,066 | 8,017 | 12,944 |
Deductions | (9,610) | (9,024) | (13,119) |
Ending Balance | $ 1,434 | $ 1,978 | $ 2,985 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - Revolving Credit Facility | Nov. 27, 2017USD ($) |
Restrictions on Proceeds from Debt for Payment of Dividend and Stock Repurchase, Maximum Aggregate Amount of Dividends and Stock Repurchases Permitted | |
Subsequent Event [Line Items] | |
Maximum borrowing capacity | $ 10,000,000 |
Capital Lease and Increase Aggregate Principal Amount Such Leases Borrower May Enter Into | |
Subsequent Event [Line Items] | |
Maximum borrowing capacity | 15,000,000 |
Investments in Entities Not a Party to Amended Credit Agreement | |
Subsequent Event [Line Items] | |
Maximum borrowing capacity | $ 2,000,000 |