Quarterly report pursuant to Section 13 or 15(d)

Note O - Goodwill and Intangible Assets

Note O - Goodwill and Intangible Assets

3 Months Ended

Dec. 30, 2023

Goodwill and Intangible Assets Disclosure [Text Block]

Note O—Goodwill and Intangible Assets

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

	*December 2023*							*September 2023*
	*Cost*		*Accumulated Impairment Losses*			*Net Value*		*Cost*		*Accumulated Impairment Losses*			*Net Value*		*Economic Life*
Goodwill:
Delta Group	$	18,592	$	(9,812	)	$	8,780	$	18,592	$	(9,812	)	$	8,780		N/A
Salt Life Group		19,917		-			19,917		19,917		-			19,917		N/A
Total goodwill, net	$	38,509	$	(9,812	)	$	28,697	$	38,509	$	(9,812	)	$	28,697

	*December 2023*							*September 2023*
		*Cost*		*Accumulated Amortization*			*Net Value*		*Cost*		*Accumulated Amortization*			*Net Value*
Intangibles:
Tradename/trademarks	$	16,000	$	(5,517	)	$	10,483	$	16,000	$	(5,384	)	$	10,616	20 – 30 yrs
Customer relationships		7,400		(4,138	)		3,262		7,400		(3,953	)		3,447	20 yrs
Technology		10,083		(3,734	)		6,349		10,083		(3,509	)		6574	10 yrs
License agreements		2,100		(1,069	)		1,031		2,100		(1,043	)		1,057	15 – 30 yrs
Non-compete agreements		1,657		(1,657	)		-		1,657		(1,657	)		-	4 – 8.5 yrs
Total intangibles, net	$	37,240	$	(16,115	)	$	21,125	$	37,240	$	(15,546	)	$	21,694

Goodwill represents the acquired goodwill net of the cumulative impairment losses recorded in fiscal years 2023 and 2011 of $9.2 million and $0.6 million, respectively.

Depending on the type of intangible assets, amortization is recorded under cost of goods sold or SG&A expenses. Amortization expense for intangible assets was $0.6 million for both the December 2023 and December 2022 quarters. Amortization expense is estimated to be approximately $2.3 million for the year ending September 2024, approximately $2.2 million for the years ending September 2025 and 2026, approximately $2.0 million for the year ending September 2027, and approximately $1.5 million for the year ending September 2028.