Annual report pursuant to Section 13 and 15(d)

Note 6 - Goodwill and Intangible Assets

Note 6 - Goodwill and Intangible Assets

12 Months Ended

Oct. 01, 2022

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 2022							September 2021
	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	$	(4,851	)	$	11,149	$	16,000	$	(4,317	)	$	11,683	20 - 30 yrs
Customer relationships		7,400		(3,213	)		4,187		7,400		(2,473	)		4,927	20 yrs
Technology		10,083		(2,610	)		7,473		9,952		(1,715	)		8,237	10 yrs
License agreements		2,100		(940	)		1,160		2,100		(837	)		1,263	15 - 30 yrs
Non-compete agreements		1,657		(1,600	)		57		1,657		(1,476	)		181	4 – 8.5 yrs
Total intangibles, net	$	37,240	$	(13,214	)	$	24,026	$	37,109	$	(10,818	)	$	26,291

Goodwill represents the acquired goodwill net of the cumulative impairment losses recorded in fiscal year 2011 of $0.6 million. As of September 2022, the Delta Group segment assets include $18.0 million of goodwill, and the Salt Life Group segment assets include $19.9 million of goodwill.

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 $2.4 million for the year ended September 2022, and $1.8 million for the year ended September 2021. Amortization expense is estimated to be approximately $2.3 million for the years ended September 2023, 2024, and 2025, and approximately $2.2 million for the years ended September 2026 and 2027.