Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

v3.8.0.1
Goodwill and Intangible Assets
 6 Months Ended
Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Components of intangible assets consist of the following (in thousands):
 
March 31, 2018
 
September 30, 2017
 
 
 
Cost
Accumulated Amortization
Net Value
 
Cost
Accumulated Amortization
Net Value
 
Economic Life
 
 
 
 
 
 
 
 
 
 
Goodwill
$
29,717

$
—

$
29,717

 
$
19,917

$
—

$
19,917

 
N/A
 
 
 
 
 
 
 
 
 
 
Intangibles:
 
 
 
 
 
 
 
 
 
Tradename/trademarks
$
16,090

$
(2,465
)
$
13,625

 
$
16,090

$
(2,193
)
$
13,897

 
20 – 30 yrs
Customer relationships
5,200

—

5,200

 
—

—

—

 
8 – 10 yrs
Technology
1,220

(1,009
)
211

 
1,220

(947
)
273

 
10 yrs
License agreements
2,100

(474
)
1,626

 
2,100

(423
)
1,677

 
15 – 30 yrs
Non-compete agreements
1,037

(814
)
223

 
1,037

(733
)
304

 
4 – 8.5 yrs
Total intangibles
$
25,647

$
(4,762
)
$
20,885

 
$
20,447

$
(4,296
)
$
16,151

 
 


Goodwill represents the acquired goodwill net of the cumulative impairment losses recorded in fiscal year 2011 of $0.6 million. The goodwill recorded on our financial statements is included in both the basics and branded segment. Basics segment includes $9.8 million of goodwill, and the branded segment includes $19.9 million.
On March 9, 2018, we acquired Teeshirt Ink, Inc. d/b/a DTG2Go. See Note D—Acquisitions. We have provisionally identified certain intangible assets associated with the acquisition, including technology, customer relationships, non-compete agreements and goodwill. Goodwill associated with DTG2Go was provisionally recorded at $9.8 million, along with technology, customer relationships, and non-compete agreements of $5.2 million. The Company is in the process of finalizing its valuations of the intangible assets acquired; thus, the provisional measurements of these intangible assets are recorded in customer relationships until these are finalized.
Amortization expense for intangible assets was $0.3 million for the three-month period ended March 31, 2018, and $0.4 million for the three-month period ended April 1, 2017. Amortization expense for the six-month periods ended March 31, 2018, and April 1, 2017, was $0.5 million and $0.7 million, respectively. Amortization expense is estimated to be approximately $1.3 million for fiscal year 2018, approximately $1.5 million for fiscal year 2019, approximately $1.4 million for fiscal year 2020, and approximately $1.3 million for each of fiscal years 2021 and 2022.