License Agreements |
9 Months Ended | ||||||||||||||||||||||||||||||||
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Jun. 27, 2015 | |||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||
| License Agreements |
License Agreements
We have entered into license agreements that provide for royalty payments on net sales of licensed products as set forth in the agreements. These license agreements are within our branded segment. We have incurred royalty expense (included in SG&A expenses) of approximately $2.2 million and $2.7 million in the June quarter of fiscal years 2015 and 2014, respectively. We incurred royalty expense of $6.6 million and $7.1 million for the nine months ended June 27, 2015, and June 28, 2014, respectively. The decline in royalty expense for the three and nine months ended June 27, 2015 compared to prior year is due to the sale of The Game branded collegiate headwear and apparel business to David Peyser Sportswear, in the March quarter. See Note D—Sale of The Game, for further information on this transaction.
At June 27, 2015, based on minimum sales requirements, future minimum royalty payments required under these license agreements were as follows (in thousands):
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