Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

v3.19.1
Goodwill and Intangible Assets
 6 Months Ended
Mar. 30, 2019
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 30, 2019
 
September 29, 2018
 
 
 
Cost
Accumulated Amortization
Net Value
 
Cost
Accumulated Amortization
Net Value
 
Economic Life
 
 
 
 
 
 
 
 
 
 
Goodwill
$
36,597

$
—

$
36,597

 
$
33,217

$
—

$
33,217

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

$
(3,007
)
$
13,083

 
$
16,090

$
(2,736
)
$
13,354

 
20 – 30 yrs
Customer relationships
8,500

(478
)
8,022

 
4,500

(253
)
4,247

 
8 – 10 yrs
Technology
1,720

(1,402
)
318

 
1,720

(1,105
)
615

 
10 yrs
License agreements
2,100

(578
)
1,522

 
2,100

(527
)
1,573

 
15 – 30 yrs
Non-compete agreements
1,657

(1,048
)
609

 
1,637

(928
)
709

 
4 – 8.5 yrs
Total intangibles
$
30,067

$
(6,513
)
$
23,554

 
$
26,047

$
(5,549
)
$
20,498

 
 


Goodwill represents the acquired goodwill net of the $0.6 million cumulative impairment losses recorded in fiscal year 2011. The goodwill recorded on our financial statements is included in both of our segments, with $16.7 million and $19.9 million included in the Delta Group and Salt Life Group, respectively.
On October 8, 2018, we acquired substantially all of the assets of Silk Screen Ink, Ltd. d/b/a SSI Digital Print Services. See Note D—Acquisitions. We have identified certain intangible assets associated with the acquisition, including technology, customer relationships, non-compete agreements and goodwill. While we are still in the process of finalizing the valuations of the intangible assets acquired, we provisionally valued goodwill associated with SSI at $3.4 million, and customer relationships and non-compete agreements at $4.0 million.
Amortization expense for intangible assets was $0.5 million for the three-month period ended March 30, 2019, and $0.3 million for the three-month period ended March 31, 2018. Amortization expense for intangible assets was $1.0 million for the six-month period ended March 30, 2019, and $0.5 million for the six-month period ended March 31, 2018. Amortization expense is estimated to be approximately $2.0 million for fiscal year 2019, $1.8 million for fiscal year 2020, and $1.7 million for each of fiscal years 2021, 2022 and 2023.