Note 9 - Intangible Assets, Net

9 Months Ended

Mar. 25, 2012

Intangible Assets Disclosure [Text Block]

9.  Intangible Assets, Net

Intangible assets, net consist of the following:

	March 25, 2012			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		(13,650	)		(12,134	)
Accumulated amortization - non-compete agreements		(2,503	)		(2,254	)
Accumulated amortization - licenses		(19	)		—
Total accumulated amortization		(16,172	)		(14,388	)
Total intangible assets, net	$	10,364		$	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 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 Nine Months Ended
	March 25, 2012		March 27, 2011		March 25, 2012		March 27, 2011
Customer list amortization expense	$	505	$	543	$	1,517	$	1,630
Non-compete amortization expense		79		80		249		270
Licenses amortization expense		10		—		19		—
Total amortization expense	$	594	$	623	$	1,785	$	1,900

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

	2013		2014		2015		2016		2017
Customer list	$	1,837	$	1,481	$	1,215	$	969	$	836
Non-compete agreements		313		313		313		313		277
License agreements		38		38		38		34		30
Total intangible amortization	$	2,188	$	1,832	$	1,566	$	1,316	$	1,143