Annual report pursuant to Section 13 and 15(d)

Note 6 - Goodwill and Intangible Assets

v3.19.3
Note 6 - Goodwill and Intangible Assets
12 Months Ended
Sep. 28, 2019
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]
Note
6—Goodwill
and Intangible Assets
 
Goodwill and components of intangible assets consist of the following (in thousands):
 
   
September 28, 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
    $
(3,278
)   $
12,812
    $
16,090
    $
(2,736
)   $
13,354
   
20 - 30 yrs
 
Customer relationships
   
7,400
     
(993
)    
6,407
     
4,500
     
(253
)    
4,247
   
20 yrs
 
Technology
   
1,720
     
(1,289
)    
431
     
1,720
     
(1,105
)    
615
   
10 yrs
 
License Agreements
   
2,100
     
(630
)    
1,470
     
2,100
     
(527
)    
1,573
   
15 - 30 yrs
 
Non-compete agreements
   
1,657
     
(1,170
)    
487
     
1,637
     
(928
)    
709
   
4 – 8.5 yrs
 
Total intangibles
  $
28,967
    $
(7,360
)   $
21,607
    $
26,047
    $
(5,549
)   $
20,498
   
 
 
 
Goodwill represents the acquired goodwill net of the cumulative impairment losses recorded in fiscal year
2011
of
$0.6
million. As of
September 28, 2019,
the Delta Group segment includes
$18.0
million of goodwill, and the Salt Life Group segment includes
$19.9
million.
 
Depending on the type of intangible assets, amortization is recorded under cost of goods sold or selling, general and administrative expenses. Amortization expense for intangible assets was
$1.8
million for the year ended
September 
28,
2019,
and
$1.3
million for the year ended
September 
29,
2018.
Amortization expense is estimated to be approximately
$1.7
million for fiscal year
2020,
$1.6
million for each of fiscal years
2021
and
2022,
$1.5
million for fiscal year
2023,
and approximately
$1.4
million for fiscal year
2024.