Note 6 - Goodwill and Intangible Assets

12 Months Ended

Oct. 02, 2021

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

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

	September 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	$	16,000	$	(4,317	)	$	11,683	$	16,090	$	(3,820	)	$	12,270	20 - 30 yrs
Customer relationships		7,400		(2,473	)		4,927		7,400		(1,733	)		5,667	20 yrs
Technology		9,952		(1,715	)		8,237		1,720		(1,380	)		340	10 yrs
License agreements		2,100		(837	)		1,263		2,100		(733	)		1,367	15 - 30 yrs
Non-compete agreements		1,657		(1,476	)		181		1,657		(1,353	)		304	4 – 8.5 yrs
Total intangibles, net	$	37,109	$	(10,818	)	$	26,291	$	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 September 2021, 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 $1.8 million for the year ended September 2021, and $1.7 million for the year ended September 2020. Amortization expense is estimated to be approximately $1.6 million for the year ended September 2022, approximately $1.5 million for the year ended September 2023, and approximately $1.4 million for the years ended September 2024, 2025 and 2026.