Note 9 - Intangible Assets, Net

12 Months Ended

Jun. 24, 2012

Intangible Assets Disclosure [Text Block]

9.  Intangible Assets, Net

Intangible assets, net consist of the following:

	June 24, 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		(14,156	)		(12,134	)
Accumulated amortization - non-compete agreements		(2,581	)		(2,254	)
Accumulated amortization - licenses		(28	)		—
Total accumulated amortization		(16,765	)		(14,388	)
Total intangible assets, net	$	9,771		$	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 Dillon non-compete agreements, which were extended during the current period, are amortized using the straight line method over the periods currently covered by the agreements.  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 the five year term of the agreement.  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 consists of the following:

	For the Fiscal Years Ended
	June 24, 2012		June 26, 2011		June 27, 2010
Customer list	$	2,022	$	2,174	$	2,992
Non-compete agreements		327		349		476
Licenses		28		—		—
Total amortization expense	$	2,377	$	2,523	$	3,468

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
Licenses		38		38		38		34		30
Total intangible amortization	$	2,188	$	1,832	$	1,566	$	1,316	$	1,143