Note 9 - Intangible Assets, Net

6 Months Ended

Dec. 29, 2013

Disclosure Text Block [Abstract]

Intangible Assets Disclosure [Text Block]

9. Intangible Assets, Net

Intangible assets, net consist of the following:

	December 29, 2013			June 30, 2013
Customer lists	$	23,615		$	22,000
Non-compete agreements		4,293			4,243
Licenses		265			265
Trademarks		316			246
Total intangible assets, gross		28,489			26,754
Accumulated amortization - customer lists		(16,733	)		(15,993	)
Accumulated amortization - non-compete agreements		(3,052	)		(2,895	)
Accumulated amortization - licenses		(70	)		(55	)
Accumulated amortization - trademarks		(85	)		(39	)
Total accumulated amortization		(19,940	)		(18,982	)
Total intangible assets, net	$	8,549		$	7,772

In fiscal year 2007, the Company purchased the texturing operations of 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 that 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.

On October 6, 2011, the Company acquired a controlling interest in Repreve Renewables, LLC (“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.

The Company capitalizes expenses incurred to register certain trademarks for its Repreve and other PVA products in various countries. The Company has determined that these trademarks have varying useful lives of up to three years.

Additions to customer lists and non-compete agreements during the current period relate to the December 2013 acquisition of the draw winding business from Dillon. See “Note 4. Acquisition” for further discussion.

Amortization expense for intangible assets consists of the following:

	For the Three Months Ended				For the Six Months Ended
	December 29, 2013		December 23, 2012		December 29, 2013		December 23, 2012
Customer lists	$	370	$	451	$	740	$	901
Non-compete agreements		79		78		157		157
Licenses		7		9		15		19
Trademarks		22		—		46		—
Total amortization expense	$	478	$	538	$	958	$	1,077