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Note 4 - Goodwill and Other Intangible Assets

9 Months Ended

Jun. 28, 2020

Goodwill and Intangible Assets Disclosure [Text Block]

4	GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill are as follows:


		June 28,
(Thousands of Dollars)	2020

Goodwill, gross amount		1,539,038
Accumulated impairment losses		(1,288,729	)
Goodwill, beginning of period		250,309
Goodwill acquired in business combinations		63,559
Goodwill, end of period		313,868

Identified intangible assets consist of the following:

	June 28,	September 29,
(Thousands of Dollars)	2020	2019

Non-amortized intangible assets:
Mastheads	42,722	21,883
Amortizable intangible assets:
Customer and newspaper subscriber lists	790,278	697,145
Less accumulated amortization	626,848	611,786
	163,430	85,359
Non-compete and consulting agreements	28,675	28,675
Less accumulated amortization	28,582	28,524
	93	151
Other intangible assets, net	206,245	107,393

The Company recognized $38,780,000 of advertiser relationships, $36,060,000 of subscriber relationships, $17,130,000 of commercial print relationships and $21,680,000 of indefinite-lived masthead assets as part of the Transactions.

Annual amortization of intangible assets for the five years ending June 2021 to June 2025 is estimated to be $26,447,000, $23,578,000, $22,967,000, $21,888,000 and $17,397,000, respectively. The weighted average amortization period for those amortizable assets acquired as part of the Transactions is 9.2 years.

As of June 28, 2020, the weighted average amortization periods for amortizable intangible assets are 5.2 years for advertiser relationships, 4.7 years for customer relationships, 8.5 years for subscriber relationships. The weighted average amortization period in total for all amortizable intangible assets is 6.2 years.

The Company recognized $63,559,000 of Goodwill as part of the Transactions. The value of the acquired Goodwill is primarily related to an assembled workforce and expected synergies from combining operations. For tax purposes, the amount of Goodwill that is expected to be deductible is $28,118,000. Refer to Note 8 for more information regarding preliminary purchase accounting for the Transactions.