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Note 4 - Acquisition of Controlling Interest in Repreve Renewables, LLC | 9 Months Ended
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Mar. 25, 2012
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | 4. Acquisition of Controlling Interest in Repreve Renewables, LLC In April 2010, the Company entered into an agreement with two other unaffiliated entities to form Repreve Renewables, LLC (“Renewables”) and received a 40% ownership interest for its $4,000 contribution. Renewables is a development stage enterprise formed to cultivate, grow and sell dedicated energy crops, including biomass feedstock intended for use as a fuel in the production of energy as well as to provide value added processes for cultivating, harvesting or using biomass crops. Renewables has the exclusive license to commercialize FREEDOM™ Giant Miscanthus (“FGM”). FGM is a miscanthus grass strain, which is a C4 plant that was developed by Mississippi State University to be a dedicated energy crop with high biomass yield from minimal input requirements. Renewables’ success will depend in part on its ability to license individual growers to produce FGM and to sell feedstock to those growers. The Company’s investment in Renewables is anticipated to provide a unique revenue stream and support its strategy to grow the REPREVE® brand and related sustainability initiatives. On October 6, 2011, the Company and one other existing Renewables shareholder each acquired an additional 20% ownership interest for $500 from the third Renewables shareholder. The additional ownership interest purchased by the Company was financed with available cash. Using the amounts paid per membership unit in the October 6th transaction as a basis, the Company determined that the acquisition date fair value of Renewables was $2,500. This resulted in the Company’s previously held 40% equity interest being valued at $1,000. As a result of remeasuring its existing 40% interest to this estimated fair value, the Company recorded a loss of $3,656 during the three months ended December 25, 2011.
Fair value of consideration transferred |  | $ | 500 |
Fair value of the previously held equity interest |  |  | 1,000 |
|  |  | 1,500 |
Fair value of the non-controlling interest |  |  | 1,000 |
Total fair value of Renewables |  | $ | 2,500 |
Fair value of previously held equity interest |  | $ | 1,000 |
Less: Investment in Renewables |  |  | 4,656 |
Loss on previously held equity interest in Renewables |  | $ | (3,656 | )
The total fair value of Renewables was allocated to the tangible assets, liabilities and intangible assets acquired as follows:
Cash |  | $ | 144 |
Inventory |  |  | 45 |
Other current assets |  |  | 197 |
Biomass foundation and feedstock |  |  | 1,611 |
Property, plant and equipment |  |  | 114 |
Intangible assets |  |  | 536 |
Total assets |  |  | 2,647 |
Current liabilities |  |  | (147 | )
Total net assets acquired |  | $ | 2,500 |
The intangible assets acquired and their respective estimated average remaining useful lives over which each asset will be amortized on a straight line basis, are as follows:
| Amortization Period |  |  | Estimated Value |
Non-compete agreements | 5 years |  |  | $ | 243 |
License to grow FGM | 8 years |  |  |  | 261 |
Sub-licenses | 4 years |  |  |  | 32 |
Total |  |  |  | $ | 536 |
The acquisition of the additional 20% ownership interest has given the Company a 60% ownership interest in Renewables. Beginning with the second quarter of fiscal year 2012, the Company’s consolidated financial statements include the financial position and results of operations of Renewables. Prior to the acquisition, the Company’s share of Renewables’ losses were recorded as Equity in (earnings) losses of unconsolidated affiliates. As Renewables is a development stage enterprise and has no revenues and limited operating activities, the results of Renewables’ operations since the acquisition are shown within Other Operating Expenses, net in the Condensed Consolidated Statement of Operations. Renewables’ operating expenses are funded through contributions from its members.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References No definition available. + Details
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