Quarterly report pursuant to Section 13 or 15(d)

Note O - Goodwill and Intangible Assets

v3.19.2
Note O - Goodwill and Intangible Assets
9 Months Ended
Jun. 29, 2019
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]
Note O—Goodwill and Intangible Assets
 
Components of intangible assets consist of the following (in thousands):
 
   
June 29, 2019
 
September 29, 2018
 
 
 
   
Cost
 
Accumulated Amortization
 
Net Value
 
Cost
 
Accumulated Amortization
 
Net Value
 
Economic
Life
 
                                           
Goodwill
  $
37,897
  $
  $
37,897
  $
33,217
  $
  $
33,217
 
 N/A
 
                                           
Intangibles:
                                         
Tradename/trademarks
  $
16,090
  $
(3,143
) $
12,947
  $
16,090
  $
(2,736
) $
13,354
 
20 – 30 yrs
 
Customer relationships
   
7,400
   
(808
)  
6,592
   
4,500
   
(253
)  
4,247
 
8 – 10 yrs
 
Technology
   
1,720
   
(1,243
)  
477
   
1,720
   
(1,105
)  
615
 
10 yrs
 
License agreements
   
2,100
   
(604
)  
1,418
   
2,100
   
(527
)  
1,573
 
15 – 30 yrs
 
Non-compete agreements
   
1,657
   
(1,110
)  
625
   
1,637
   
(928
)  
709
 
4 – 8.5 yrs
 
Total intangibles
  $
28,967
  $
(6,908
) $
22,059
  $
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
$18.0
 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
$4.5
million, and customer relationships and non-compete agreements at
$2.9
million.
 
Amortization expense for intangible assets was
$0.4
million for the
three
-month periods ended
June 29, 2019
, and
June 30, 2018
. Amortization expense for intangible assets was
$1.4
million for the
nine
-month period ended
June 29, 2019
, and
$0.9
million for the
nine
-month period ended
June 30, 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.