Note 6 - Goodwill and Intangible Assets

12 Months Ended

Oct. 03, 2020

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Goodwill and components of intangible assets consist of the following (in thousands):

	October 3, 2020							September 28, 2019
	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	$	16,090	$	(3,820	)	$	12,270	$	16,090	$	(3,278	)	$	12,812	20 - 30 yrs
Customer relationships		7,400		(1,733	)		5,667		7,400		(993	)		6,407	20 yrs
Technology		1,720		(1,380	)		340		1,720		(1,289	)		431	10 yrs
License agreements		2,100		(733	)		1,367		2,100		(630	)		1,470	15 - 30 yrs
Non-compete agreements		1,657		(1,353	)		304		1,657		(1,170	)		487	4 – 8.5 yrs
Total intangibles, net	$	28,967	$	(9,019	)	$	19,948	$	28,967	$	(7,360	)	$	21,607

Goodwill represents the acquired goodwill net of the cumulative impairment losses recorded in fiscal year 2011 of $0.6 million. As of October 3, 2020, 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 $1.7 million for the year ended October 3, 2020, and $1.8 million for the year ended September 28, 2019. Amortization expense is estimated to be approximately $1.6 million for each of fiscal years 2021, 2022, approximately $1.5 million for fiscal year 2023, and approximately $1.4 million for fiscal years 2024 and 2025.