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Note 2 - Acquisitions
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Jul. 03, 2011
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| Business Combination Disclosure [Text Block] |
Note
2 – Acquisition
On
May 27, 2010, Hamco, Inc., a wholly-owned subsidiary of the
Company, paid $1.8 million to The Procter & Gamble
Company (“P&G”) to acquire certain
intellectual property related to P&G’s line of
Bibsters®
disposable infant bibs. In a separate but related
transaction, Hamco also acquired the inventory associated
with the Bibsters®
product line from the exclusive licensee of Bibsters®
for P&G, whose license was terminated to coincide with
the closing (collectively, the two transactions represent the
“Bibsters®
Acquisition”). Hamco also recognized as
expense $100,000 of direct costs associated with the
acquisition, which were included in marketing and
administrative expenses during the fiscal year ended April 3,
2011, $60,000 of which were recognized during the three-month
period ended June 27, 2010. Because the operations
of the Bibsters®
product line have been integrated with Hamco, and because the
assets acquired do not exist as a discrete entity within the
Company’s internal corporate structure, it is
impracticable to determine the earnings generated by the
assets acquired from the Bibsters®
product line since the acquisition date. The
Company believes that the pro forma impact of the acquisition
is not material.
The
fair values of the assets acquired were determined by the
Company with the assistance of an independent third
party. The Company’s allocation of the
acquisition cost is as follows (in thousands):
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