Quarterly report pursuant to Section 13 or 15(d)

Note 2 - Acquisition

Note 2 - Acquisition
6 Months Ended
Oct. 02, 2011
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, $28,000 and $88,000 of which were recognized during the three and six-month periods ended September 26, 2010, respectively.  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):

Amortizable intangible assets:
  $ 629  
Customer relationships
Total amortizable intangible assets
Total intangible assets
Tangible assets - inventory
Total acquisition cost
  $ 2,072