Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

v3.10.0.1
Goodwill and Intangible Assets
 12 Months Ended
Sep. 29, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
GOODWILL AND INTANGIBLE ASSETS
Goodwill and components of intangible assets consist of the following (in thousands):
 
September 29, 2018
 
September 30, 2017
 
 
Cost
Accumulated Amortization
Net Value
 
Cost
Accumulated Amortization
Net Value
Economic Life
 
 
 
 
 
 
 
 
 
Goodwill
$
33,217

$
—

$
33,217

 
$
19,917

$
—

$
19,917

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

$
(2,736
)
$
13,354

 
$
16,090

$
(2,193
)
$
13,897

20 - 30 yrs
Customer relationships
4,500

(253
)
4,247

 
—

—

—

20 yrs
Technology
1,720

(1,105
)
615

 
1,220

(947
)
273

10 yrs
License Agreements
2,100

(527
)
1,573

 
2,100

(423
)
1,677

15 - 30 yrs
Non-compete agreements
1,637

(928
)
709

 
1,037

(733
)
304

4 – 8.5 yrs
Total intangibles
$
26,047

$
(5,549
)
$
20,498

 
$
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 Delta Group and Salt Life Group segments. The Delta Group segment includes $13.3 million of goodwill, and the Salt Life Group segment includes $19.9 million.
On March 9, 2018, we acquired substantially all of the assets of Teeshirt Ink, Inc. d/b/a DTG2Go. See Note 3—Acquisitions. We have identified certain intangible assets associated with the acquisition, including technology, customer relationships, non-compete agreements and goodwill. During the fourth quarter, we completed the accounting for the acquisition. We recorded measurement period adjustments to increase the residual value of goodwill by $3.5 million and the fair value of intangible assets by $0.4 million. After recording these measurement period adjustments, the residual value of goodwill associated with DTG2Go was $13.3 million, and the fair value of technology, customer relationships, and non-compete agreements at $5.6 million.
Depending on the type of intangible assets, amortization is recorded under Cost of Goods Sold or SG&A expenses. Amortization expense for intangible assets was $1.3 million for the year ended September 29, 2018, and $1.1 million for the year ended September 30, 2017. Amortization expense is estimated to be approximately $1.5 million for fiscal year 2019, $1.4 million for fiscal year 2020, and approximately $1.3 million for each of fiscal years 2021 and 2022.