Note O - Goodwill and Intangible Assets

6 Months Ended

Apr. 03, 2021

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

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

	March 2021							September 2020
	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	$	(4,091	)	$	11,999	$	16,090	$	(3,820	)	$	12,270	20 – 30 yrs
Customer relationships		7,400		(2,103	)		5,297		7,400		(1,733	)		5,667	20 yrs
Technology		1,720		(1,411	)		309		1,720		(1,380	)		340	10 yrs
License agreements		2,100		(785	)		1,315		2,100		(733	)		1,367	15 – 30 yrs
Non-compete agreements		1,657		(1,415	)		242		1,657		(1,353	)		304	4 – 8.5 yrs
Total intangibles	$	28,967	$	(9,805	)	$	19,162	$	28,967	$	(9,019	)	$	19,948

Goodwill represents the acquired goodwill net of the cumulative impairment losses recorded in fiscal year 2011 of $0.6 million. As of March 2021, the Delta Group segment assets include $18.0 million of goodwill, and the Salt Life segment assets include $19.9 million.

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 was $0.4 million during both the March 2021 and March 2020 quarters. Amortization for the six-months ended March 2021 and March 2020 was $0.8 million and $0.9 million, respectively. Amortization expense is estimated to be approximately $1.6 million for each of fiscal years 2021 and 2022, $1.5 million for fiscal year 2023, and $1.4 million for each of fiscal years 2024 and 2025.