Quarterly report pursuant to Section 13 or 15(d)

Note O - Goodwill and Intangible Assets

Note O - Goodwill and Intangible Assets

9 Months Ended

Jul. 01, 2023

Goodwill and Intangible Assets Disclosure [Text Block]

Note O—Goodwill and Intangible Assets

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

	*June 2023*							*September 2022*
	*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	$	(5,251	)	$	10,749	$	16,000	$	(4,851	)	$	11,149	20 – 30 yrs
Customer relationships		7,400		(3,768	)		3,632		7,400		(3,213	)		4,187	20 yrs
Technology		10,083		(3,284	)		6,799		10,083		(2,610	)		7473	10 yrs
License agreements		2,100		(1,017	)		1,083		2,100		(940	)		1,160	15 – 30 yrs
Non-compete agreements		1,657		(1,656	)		1		1,657		(1,600	)		57	4 – 8.5 yrs
Total intangibles	$	37,240	$	(14,976	)	$	22,264	$	37,240	$	(13,214	)	$	24,026

Goodwill represents the acquired goodwill net of the $0.6 million impairment losses recorded in fiscal year 2011. As of June 2023, 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 asset, amortization is recorded under cost of goods sold or selling, general and administrative expenses. Amortization expense for intangible assets for the June 2023 and June 2022 quarters was $0.6 million and $0.6 million, respectively. Amortization expense for the nine-months ended June 2023 and June 2022 was $1.8 million and $1.8 million, respectively. Amortization expense is estimated to be approximately $2.3 million for the year ended September 2023, approximately $2.3 million for each of the years ended September 2024 and 2025, and approximately $2.2 million for each of the years ended September 2026 and 2027.