License Agreements |
6 Months Ended | ||||||||||||||||||||||||
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Apr. 01, 2017 | |||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||
| License Agreements |
License Agreements
We have entered into license agreements that provide for royalty payments on net sales of licensed products as set forth in the agreements. These license agreements are within our branded segment. We incurred royalty expense (included in SG&A expenses) of $1.0 million and $1.5 million in each of the second quarters of fiscal years 2017 and 2016, respectively. Royalty expense for the six months ended April 1, 2017, and April 2, 2016, were approximately $2.4 million and $3.4 million, respectively.
At April 1, 2017, based on minimum sales requirements, future minimum royalty payments required under these license agreements were as follows (in thousands):
Our license agreements have been predominately associated with the Junkfood business, which was sold on March 31, 2017. See Note D—Sale of Junkfood for further information on this transaction. With the divestiture of the Junkfood business, license agreements are not expected to be a significant part of our business going forward.
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