Note 9 - Intangible Assets, Net

6 Months Ended

Dec. 25, 2011

Intangible Assets Disclosure [Text Block]

9. Intangible Assets, Net

Intangible assets, net consist of the following:

	December 25, 2011			June 26, 2011
Customer list	$	22,000		$	22,000
Non-compete agreements		4,243			4,000
Licenses		293			—
Total intangible assets, gross		26,536			26,000
Accumulated amortization - customer list		(13,145	)		(12,134	)
Accumulated amortization - non-compete agreements		(2,424	)		(2,254	)
Accumulated amortization - licenses		(9	)		—
Total accumulated amortization		(15,578	)		(14,388	)
Intangible assets, net	$	10,958		$	11,612

In fiscal year 2007, the Company purchased the texturing operations of Dillon Yarn Corporation (“Dillon”) which are included in the Company's polyester reportable segment.  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. The amortization expense is included within the polyester segment's depreciation and amortization expense.

During the second quarter of fiscal year 2012, the Company acquired a controlling interest in Renewables.  The non-compete agreement acquired is being amortized using the straight line method over a five year period.  The licenses acquired are being amortized using the straight line method over the estimated useful lives of four to eight years.

Amortization expense for intangible assets was as follows:

	For the Three Months Ended				For the Six Months Ended
	December 25, 2011		December 26, 2010		December 25, 2011		December 26, 2010
Customer list amortization expense	$	505	$	544	$	1,011	$	1,087
Non-compete amortization expense		91		95		170		190
Licenses amortization expense		9		—		9		—
Total amortization expense	$	605	$	639	$	1,190	$	1,277

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		328		313		313		313		313
License agreements		28		38		38		38		34
Total intangible amortization	$	2,378	$	2,188	$	1,832	$	1,566	$	1,316