Note 8 - Intangible Assets, Net

3 Months Ended

Sep. 25, 2011

Intangible Assets Disclosure [Text Block]

8.  Intangible Assets, Net

Intangible assets, net consist of the following:

	September 25, 2011			June 26, 2011
Customer list	$	22,000		$	22,000
Non-compete agreements		4,000			4,000
Total intangible assets, gross		26,000			26,000
Accumulated amortization - customer list		(12,640	)		(12,134	)
Accumulated amortization - non-compete agreements		(2,333	)		(2,254	)
Total accumulated amortization		(14,973	)		(14,388	)
Intangible assets, net	$	11,027		$	11,612

In fiscal year 2007, the Company purchased the polyester and nylon texturing operations of Dillon Yarn Corporation (“Dillon”).  The valuation of the customer list acquired was determined by estimating the discounted net earnings attributable to the customer relationships that were purchased after considering items such as possible customer attrition.  Based on the length and trend of the projected cash flows, an estimated useful life of thirteen years was determined.  The customer list is being amortized in a manner which reflects the expected economic benefit that will be received over its thirteen year life.  The non-compete agreements are amortized using the straight line method over the periods covered by the covenants not to compete.

Amortization expense for intangible assets was as follows:

	For the Three Months Ended
	September 25, 2011		September 26, 2010
Customer list amortization expense	$	506	$	543
Non-compete amortization expense		79		95
Total amortization expense	$	585	$	638

The following table presents the expected intangible asset amortization for the next five fiscal years:

	2012		2013		2014		2015		2016
Customer list	$	2,022	$	1,837	$	1,481	$	1,215	$	969
Non-compete agreements		317		317		317		317		317
Total intangible amortization	$	2,339	$	2,154	$	1,798	$	1,532	$	1,286