Note 9 - Intangible Assets, Net

12 Months Ended

Jun. 30, 2013

Disclosure Text Block [Abstract]

Intangible Assets Disclosure [Text Block]

9. Intangible Assets, Net

Intangible assets, net consist of the following:

	June 30, 2013			June 24, 2012
Customer list	$	22,000		$	22,000
Non-compete agreements		4,243			4,243
Licenses		265			293
Trademarks		246			—
Total intangible assets, gross		26,754			26,536
Accumulated amortization - customer list		(15,993	)		(14,156	)
Accumulated amortization - non-compete agreements		(2,895	)		(2,581	)
Accumulated amortization - licenses		(55	)		(28	)
Accumulated amortization - trademarks		(39	)		—
Total accumulated amortization		(18,982	)		(16,765	)
Total intangible assets, net	$	7,772		$	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 their estimated useful lives of four to eight years.

During fiscal year 2013, as part of its efforts to market REPREVE® to consumers worldwide and to raise its visibility among brands, the Company capitalized $246 of expenses incurred to register certain trademarks in various countries. The Company has determined that these trademarks have varying useful lives of up to three years.

Amortization expense for intangible assets consists of the following:

	For the Fiscal Years Ended
	June 30, 2013		June 24, 2012		June 26, 2011
Customer list	$	1,837	$	2,022	$	2,174
Non-compete agreements		313		327		349
Licenses		38		28		—
Trademarks		39		—		—
Total amortization expense	$	2,227	$	2,377	$	2,523

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

	2014		2015		2016		2017		2018
Customer list	$	1,481	$	1,216	$	969	$	836	$	717
Non-compete agreements		313		313		313		277		132
Licenses		31		31		31		30		30
Trademarks		82		82		43		—		—
Total intangible amortization	$	1,907	$	1,642	$	1,356	$	1,143	$	879

During fiscal year 2013, Repreve Renewables recorded an impairment charge of $17 within Other operating expense, net related to certain FGM sub-licenses based on its determination that the carrying value exceeded the fair market value.