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ACQUISITION OF BONNIE TOGS
 6 Months Ended
Jul. 02, 2011
ACQUISITION OF BONNIE TOGS [Abstract]  
ACQUISITION OF BONNIE TOGS
NOTE 3 – ACQUISITION OF BONNIE TOGS:

As noted above, on June 30, 2011, Northstar purchased all of the outstanding shares of capital stock of Bonnie Togs (the “Acquisition”) for total consideration of up to CAD $95 million.  CAD $60 million was paid in cash at closing.  Such payment is subject to post-closing adjustments.  The sellers may also be paid contingent consideration ranging from zero to CAD $35 million if the Canadian business meets certain earnings targets beginning July 1, 2011 and ending on June 27, 2015.  Sellers may receive a portion of the contingent consideration of up to CAD $25 million if interim earnings targets are met through June 2013 and June 2014, respectively.  Any such payments are not recoverable by the Company in the event of any failure to meet overall targets.  As of July 2, 2011, the Company has included a discounted contingent consideration liability of approximately $24 million in its consolidated balance sheet based upon the high probability that Bonnie Togs will attain its earnings targets.  The Company will continue to reevaluate the fair value of the contingent consideration based upon the probability of Bonnie Togs attaining its earnings targets at each reporting period.

 
The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at June 30, 2011, the date of the Acquisition, subject to change upon finalization of purchase accounting:
 
(USD in thousands)
   
     
Current assets
 $40,376 
Property, plant, and equipment, net
  8,246 
Goodwill
  54,480 
Bonnie Togs tradename 
  623 
Non-compete agreements
  311 
Total asset acquired
  104,036 
Current liabilities
  16,698 
Non-current liabilities
  1,895 
Total liabilities assumed
  18,593 
Net assets acquired
 $85,443 


In connection with the Acquisition, the Company recorded total acquired intangible assets of approximately $55.4 million, including $54.5 million of goodwill, $0.6 million related to the Bonnie Togs tradename (estimated life of two years), and $0.3 million related to non-compete agreements for certain executives (estimated life of four years).  The fair value of these intangible assets are subject to change until finalization of purchase accounting.