Quarterly report pursuant to Section 13 or 15(d)

Note O - Goodwill and Intangible Assets

Note O - Goodwill and Intangible Assets

3 Months Ended

Jan. 02, 2021

Goodwill and Intangible Assets Disclosure [Text Block]

Note O—Goodwill and Intangible Assets

Components of intangible assets consist of the following (in thousands):

	December 2020							September 2020
	Cost		Accumulated Amortization			Net Value		Cost		Accumulated Amortization			Net Value		Economic Life

Goodwill	$	37,897	$	—		$	37,897	$	37,897	$	—		$	37,897	N/A

Intangibles:
Tradename/trademarks	$	16,090	$	(3,956	)	$	12,134	$	16,090	$	(3,820	)	$	12,270	20 – 30 yrs
Customer relationships		7,400		(1,918	)		5,482		7,400		(1,733	)		5,667	20 yrs
Technology		1,720		(1,396	)		324		1,720		(1,380	)		340	10 yrs
License agreements		2,100		(759	)		1,341		2,100		(733	)		1,367	15 – 30 yrs
Non-compete agreements		1,657		(1,383	)		274		1,657		(1,353	)		304	4 – 8.5 yrs
Total intangibles	$	28,967	$	(9,412	)	$	19,555	$	28,967	$	(9,019	)	$	19,948

Goodwill represents the acquired goodwill net of the cumulative impairment losses recorded in fiscal year 2011 of $0.6 million. As of December 2020, the Delta Group segment assets include $18.0 million of goodwill, and the Salt Life segment assets include $19.9 million.

Depending on the type of intangible asset, amortization is recorded under cost of goods sold or selling, general and administrative expenses. Amortization expense for intangible assets was $0.4 million during the December 2020 quarter and $0.5 million during the December 2019 quarter. Amortization expense is estimated to be approximately $1.6 million for fiscal years 2021 and 2022, $1.5 million for fiscal year 2023, and $1.4 million for fiscal years 2024 and 2025.