Note 3 - Acquisition
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9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 01, 2012
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Note 3 - Acquisition Disclosure | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note 3 - Acquisition |
Note
3 Acquisition
On
May 27, 2010, Hamco, Inc. (Hamco), 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&Gs 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, $92,000 of which were recognized
during the nine-month period ended December 26,
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
Companys 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
Companys allocation of the acquisition cost is as follows
(in thousands):
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