Annual report pursuant to Section 13 and 15(d)

Note 6 - Goodwill and Intangible Assets

v3.21.2
Note 6 - Goodwill and Intangible Assets
12 Months Ended
Oct. 02, 2021
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 2021

   

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

  $ 16,000     $ (4,317 )   $ 11,683     $ 16,090     $ (3,820 )   $ 12,270    

20 - 30 yrs

 

Customer relationships

    7,400       (2,473 )     4,927       7,400       (1,733 )     5,667    

20 yrs

 

Technology

    9,952       (1,715 )     8,237       1,720       (1,380 )     340    

10 yrs

 

License agreements

    2,100       (837 )     1,263       2,100       (733 )     1,367    

15 - 30 yrs

 

Non-compete agreements

    1,657       (1,476 )     181       1,657       (1,353 )     304    

4 – 8.5 yrs

 

Total intangibles, net

  $ 37,109     $ (10,818 )   $ 26,291     $ 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 September 2021, the Delta Group segment assets include $18.0 million of goodwill, and the Salt Life Group segment assets include $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 2021, and $1.7 million for the year ended September 2020. Amortization expense is estimated to be approximately $1.6 million for the year ended September 2022, approximately $1.5 million for the year ended September 2023, and approximately $1.4 million for the years ended September 2024, 2025 and 2026.