Note 9 - Intangible Assets, Net

6 Months Ended

Dec. 23, 2012

Intangible Assets Disclosure [Text Block]

9. Intangible Assets, Net

Intangible assets, net consist of the following:

	December 23, 2012			June 24, 2012
Customer list	$	22,000		$	22,000
Non-compete agreements		4,243			4,243
Licenses		293			293
Total intangible assets, gross		26,536			26,536

Accumulated amortization - customer list		(15,057	)		(14,156	)
Accumulated amortization - non-compete agreements		(2,738	)		(2,581	)
Accumulated amortization - licenses		(47	)		(28	)
Total accumulated amortization		(17,842	)		(16,765	)
Total intangible assets, net	$	8,694		$	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 the estimated useful lives of four to eight years.

Amortization expense for intangible assets consists of the following:

	For the Three Months Ended				For the Six Months Ended
	December 23, 2012		December 25, 2011		December 23, 2012		December 25, 2011
Customer list	$	451	$	505	$	901	$	1,011
Non-compete agreements		78		91		157		170
Licenses		9		9		19		9
Total amortization expense	$	538	$	605	$	1,077	$	1,190