Leslie's, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Other Intangibles, Net

Goodwill and Other Intangibles, Net

6 Months Ended

Apr. 03, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangibles, Net

Note 4 —Goodwill and Other Intangibles, Net

Goodwill

The carrying amounts of goodwill are as follows (in thousands):

	Carrying Value
Balance, April 3, 2021	$	97,692
Balance, October 3, 2020		93,295
Balance, March 28, 2020		92,821

Other Intangible Assets

Other intangible assets consisted of the following as of April 3, 2021 (in thousands, except weighted average remaining useful life):

	Weighted Average Remaining Useful Life (in Years)		Gross Carrying Value		Accumulated Amortization			Net Carrying Amount
Trade name and trademarks (finite life)		1.6	$	5,540	$	(5,195	)	$	345
Trade name and trademarks (indefinite life)	Indefinite			18,550		—			18,550
Non-compete agreements		4.4		9,833		(7,014	)		2,819
Consumer relationships		3.2		18,500		(10,853	)		7,647
Internally developed software		2.0		4,000		(3,530	)		470
Other		0.7		1,000		(975	)		25
Total			$	57,423	$	(27,567	)	$	29,856

Other intangible assets are as follows as of October 3, 2020 (in thousands, except weighted average remaining useful life):

	Weighted Average Remaining Useful Life (in Years)		Gross Carrying Value		Accumulated Amortization			Net Carrying Amount
Trade name and trademarks (finite life)		2.6	$	5,540	$	(5,139	)	$	401
Trade name and trademarks (indefinite life)	Indefinite			17,750		—			17,750
Non-compete agreements		4.9		8,633		(6,872	)		1,761
Consumer relationships		3.8		17,200		(10,118	)		7,082
Internally developed software		2.9		4,000		(3,434	)		566
Other		1.6		1,000		(958	)		42
Total			$	54,123	$	(26,521	)	$	27,602

Other intangible assets are as follows as of March 28, 2020 (in thousands, except weighted average remaining useful life):

	Weighted Average Remaining Useful Life (in Years)		Gross Carrying Value		Accumulated Amortization			Net Carrying Amount
Trade name and trademarks (finite life)		2.3	$	5,540	$	(5,082	)	$	458
Trade name and trademarks (indefinite life)	Indefinite			17,750		—			17,750
Non-compete agreements		4.2		8,633		(6,364	)		2,269
Consumer relationships		3.5		17,200		(9,340	)		7,860
Internally developed software		2.5		4,000		(3,307	)		693
Other		1.3		1,000		(942	)		58
Total			$	54,123	$	(25,035	)	$	29,088

Amortization expense for the three months ended April 3, 2021 and March 28, 2020 was $0.5 million. Amortization expense for the six months ended April 3, 2021 and March 28, 2020 was $1.0 million and $1.1 million, respectively. No impairment of goodwill or other intangible assets was recorded during the three and six months ended April 3, 2021 and March 28, 2020, respectively.

The following table summarizes the estimated future amortization expense related to finite-lived intangible assets on our balance sheet as of April 3, 2021 (in thousands):

	Amount
Remainder of Fiscal 2021	$	1,197
2022		2,266
2023		2,033
2024		1,395
2025		1,298
Thereafter		3,918
Total	$	12,107

Intangible assets also include costs associated with acquiring mailing lists for our proprietary database. As of April 3, 2021, October 3, 2020, and March 28, 2020, gross amounts capitalized on the condensed consolidated balance sheets for mailing lists were $1.6 million with a net carrying value of $0.3 million.