Note 9 - Intangible Assets, Net

9 Months Ended

Mar. 24, 2013

Intangible Assets Disclosure [Text Block]

9.  Intangible Assets, Net

Intangible assets, net consist of the following:

	March 24, 2013			June 24, 2012
Customer list	$	22,000		$	22,000
Non-compete agreements		4,243			4,243
Licenses		293			293
Trademarks		193			—
Total intangible assets, gross		26,729			26,536
Accumulated amortization - customer list		(15,508	)		(14,156	)
Accumulated amortization - non-compete agreements		(2,816	)		(2,581	)
Accumulated amortization - licenses		(57	)		(28	)
Total accumulated amortization		(18,381	)		(16,765	)
Total intangible assets, net	$	8,348		$	9,771

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 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.

During the three months ended March 24, 2013, as part of its efforts to market REPREVE® to consumers worldwide and to raise its visibility among brands, the Company capitalized $193 of expenses incurred to register certain trademarks in various countries.  The Company has determined that these trademarks have varying useful, definite lives of up to ten years.

Amortization expense for intangible assets consists of the following:

	For the Three Months Ended				For the Nine Months Ended
	March 24, 2013		March 25, 2012		March 24, 2013		March 25, 2012
Customer list	$	451	$	505	$	1,352	$	1,517
Non-compete agreements		78		79		235		249
Licenses		10		10		29		19
Total amortization expense	$	539	$	594	$	1,616	$	1,785