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Note 8 - Intangible Assets, Net

3 Months Ended

Sep. 29, 2013

Disclosure Text Block [Abstract]

Intangible Assets Disclosure [Text Block]

8. Intangible Assets, Net

Intangible assets, net consist of the following:

		September 29, 2013				June 30, 2013
Customer list		$	22,000			$	22,000
Non-compete agreements			4,243				4,243
Licenses			265				265
Trademarks			294				246
Total intangible assets, gross			26,802				26,754

Accumulated amortization - customer list			(16,363	)			(15,993	)
Accumulated amortization - non-compete agreements			(2,973	)			(2,895	)
Accumulated amortization - licenses			(63	)			(55	)
Accumulated amortization - trademarks			(63	)			(39	)
Total accumulated amortization			(19,462	)			(18,982	)
Total intangible assets, net		$	7,340			$	7,772

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 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.

As part of its efforts to market REPREVE® and other PVA products to consumers worldwide and to raise its visibility among brands, the Company capitalizes expenses incurred to register certain trademarks of Repreve and other PVA products in various countries. The Company has determined that these trademarks have varying useful lives of up to three years.

Amortization expense for intangible assets consists of the following:

		For the Three Months Ended
		September 29, 2013				September 23, 2012
Customer list		$	370			$	450
Non-compete agreements			78				79
Licenses			8				10
Trademarks			24				—
Total amortization expense		$	480			$	539