Note 9 - Intangible Assets, Net

12 Months Ended

Jun. 29, 2014

Disclosure Text Block [Abstract]

Intangible Assets Disclosure [Text Block]

9. Intangible Assets, Net

Intangible assets, net consist of the following:

	June 29, 2014			June 30, 2013
Customer lists	$	23,615		$	22,000
Non-compete agreements		4,293			4,243
Licenses		265			265
Trademarks		339			246
Patents		162			—
Total intangible assets, gross		28,674			26,754
Accumulated amortization - customer lists		(17,838	)		(15,993	)
Accumulated amortization - non-compete agreements		(3,214	)		(2,895	)
Accumulated amortization - licenses		(86	)		(55	)
Accumulated amortization - trademarks		(141	)		(39	)
Accumulated amortization - patents		(1	)		—
Total accumulated amortization		(21,280	)		(18,982	)
Total intangible assets, net	$	7,394		$	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 amortized in a manner which reflects the expected economic benefit that will be received over its thirteen-year life. The non-compete agreement is amortized using the straight line method over the period currently covered by the agreement. The amortization expense is included within the Polyester Segment’s depreciation and amortization expense.

On December 2, 2013, the Company acquired certain draw winding assets and the associated business from Dillon, as described in “Note 4. Acquisitions.” A customer list and a non-compete agreement were recorded in connection with the business combination, utilizing similar valuation methods as described above for the fiscal year 2007 transaction. The customer list is amortized over a nine-year estimated useful life based on the expected economic benefit. The non-compete agreement is amortized using the straight line method over the five-year term of the agreement. The amortization expense is included within the Polyester Segment’s depreciation and amortization expense.

During fiscal year 2012, the Company acquired a controlling interest in Renewables, as described in “Note 4. Acquisitions.” The non-compete agreement acquired is amortized using the straight line method over the five-year term of the agreement. The licenses acquired are amortized using the straight line method over their estimated useful lives of four to eight years.

The Company capitalizes expenses incurred to register trademarks for REPREVE® and other PVA products in various countries. The Company has determined that these trademarks have varying useful lives of up to three years and are being amortized using the straight line method.

Amortization expense for intangible assets consists of the following:

	For the Fiscal Years Ended
	June 29, 2014		June 30, 2013		June 24, 2012
Customer lists	$	1,845	$	1,837	$	2,022
Non-compete agreements		319		313		327
Licenses		31		38		28
Trademarks		102		39		—
Patents		1		—		—
Total amortization expense	$	2,298	$	2,227	$	2,377

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

	2015		2016		2017		2018		2019
Expected amortization	$	2,070	$	1,671	$	1,356	$	1,024	$	693