Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Aug. 25, 2018 | Oct. 15, 2018 | Feb. 25, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Simply Good Foods Co. | ||
Entity Central Index Key | 1,702,744 | ||
Current Fiscal Year End Date | --08-25 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Aug. 25, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 80,849,248 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 452,417 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 25, 2018 | Aug. 26, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 111,971 | $ 56,501 |
Accounts receivable, net | 36,622 | 37,181 |
Inventories | 30,001 | 29,062 |
Prepaid expenses | 2,069 | 2,904 |
Other current assets | 5,077 | 8,263 |
Total current assets | 185,740 | 133,911 |
Long-term assets: | ||
Property and equipment, net | 2,565 | 2,105 |
Intangible assets, net | 312,643 | 319,148 |
Goodwill | 471,427 | 465,030 |
Other long-term assets | 2,230 | 2,294 |
Total assets | 974,605 | 922,488 |
Current liabilities: | ||
Accounts payable | 11,158 | 14,859 |
Accrued interest | 582 | 561 |
Accrued expenses and other current liabilities | 15,875 | 15,042 |
Current portion of TRA liability | 2,320 | 2,548 |
Current maturities of long-term debt | 648 | 234 |
Total current liabilities | 30,583 | 33,244 |
Long-term liabilities: | ||
Long-term debt, less current maturities | 190,935 | 191,856 |
Long-term portion of TRA liability | 25,148 | 23,127 |
Deferred income taxes | 54,475 | 75,559 |
Other long-term liabilities | 863 | 0 |
Total liabilities | 302,004 | 323,786 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 100,000,000 shares authorized, none issued | 0 | 0 |
Common stock, $0.01 par value, 600,000,000 shares authorized, 70,605,675 and 70,562,477 issued and outstanding, respectively | 706 | 706 |
Additional paid-in-capital | 614,399 | 610,138 |
Retained earnings (accumulated deficit) | 58,294 | (12,161) |
Accumulated other comprehensive (loss) income | (798) | 19 |
Total stockholders' equity | 672,601 | 598,702 |
Total liabilities and stockholders' equity | $ 974,605 | $ 922,488 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Aug. 25, 2018 | Aug. 26, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock shares issued (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock shares issued (in shares) | 70,605,675 | 70,562,477 |
Common stock shares outstanding (in shares) | 70,605,675 | 70,562,477 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 2 Months Ended | 10 Months Ended | 12 Months Ended | |
Aug. 26, 2017 | Jul. 06, 2017 | Aug. 25, 2018 | Aug. 27, 2016 | |
Net sales | $ 56,334 | $ 431,429 | ||
Cost of goods sold | 35,941 | 223,873 | ||
Gross profit | 20,393 | 207,556 | ||
Distribution | 2,784 | 19,685 | ||
Operating expenses: | ||||
Selling | 2,322 | 17,802 | ||
Marketing | 4,615 | 41,290 | ||
General and administrative | 7,813 | 56,333 | ||
Depreciation and amortization | 1,000 | 7,672 | ||
Business transaction costs | 0 | 2,259 | ||
Gain in fair value change of contingent consideration - TRA liability | 0 | (2,848) | ||
Other expense | 0 | 633 | ||
Total operating expenses | 18,534 | 142,826 | ||
Income from operations | 1,859 | 64,730 | ||
Other income (expense): | ||||
Change in warrant liabilities | 0 | 0 | ||
Interest expense | (1,662) | (12,551) | ||
Gain (loss) on foreign currency transactions | 513 | 97 | ||
Other income | 30 | 815 | ||
Total other expense | (1,119) | (11,639) | ||
Income before income taxes | 740 | 53,091 | ||
Income tax (benefit) expense | 290 | (17,364) | ||
Net income (loss) | 450 | 70,455 | ||
Other comprehensive income: | ||||
Foreign currency translation adjustments | 19 | (817) | ||
Comprehensive income | $ 469 | $ 69,638 | ||
Earnings per share from net income: | ||||
Basic (in dollars per share) | $ 0.01 | $ 1 | ||
Diluted (in dollars per share) | $ 0.01 | $ 0.96 | ||
Weighted average shares outstanding: | ||||
Basic (in shares) | 70,562,477 | 70,582,149 | ||
Diluted (in shares) | 71,254,770 | 73,681,355 | ||
Predecessor | ||||
Net sales | $ 339,837 | $ 427,858 | ||
Cost of goods sold | 179,998 | 248,464 | ||
Gross profit | 159,839 | 179,394 | ||
Distribution | 14,970 | 18,489 | ||
Operating expenses: | ||||
Selling | 13,905 | 18,513 | ||
Marketing | 33,589 | 37,751 | ||
General and administrative | 39,276 | 46,961 | ||
Depreciation and amortization | 8,617 | 10,179 | ||
Business transaction costs | 25,608 | 0 | ||
Gain in fair value change of contingent consideration - TRA liability | 0 | 0 | ||
Other expense | 141 | 1,542 | ||
Total operating expenses | 136,106 | 133,435 | ||
Income from operations | 23,733 | 45,959 | ||
Other income (expense): | ||||
Change in warrant liabilities | 722 | (722) | ||
Interest expense | (22,724) | (27,195) | ||
Gain (loss) on foreign currency transactions | 133 | (619) | ||
Other income | 221 | 118 | ||
Total other expense | (21,648) | (28,418) | ||
Income before income taxes | 2,085 | 17,541 | ||
Income tax (benefit) expense | 4,570 | 7,507 | ||
Net income (loss) | (2,485) | 10,034 | ||
Other comprehensive income: | ||||
Foreign currency translation adjustments | (199) | 621 | ||
Comprehensive income | $ (2,684) | $ 10,655 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 2 Months Ended | 10 Months Ended | 12 Months Ended | |
Aug. 26, 2017 | Jul. 06, 2017 | Aug. 25, 2018 | Aug. 27, 2016 | |
Operating activities | ||||
Net income | $ 450 | $ 70,455 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 1,000 | 7,672 | ||
Amortization of deferred financing costs and debt discount | 192 | 1,312 | ||
Stock compensation expense | 412 | 4,029 | ||
Change in warrant liabilities | 0 | 0 | ||
Gain in fair value change of contingent consideration - TRA liability | 0 | (2,848) | ||
Unrealized gain (loss) on foreign currency transactions | (513) | (97) | ||
Deferred income taxes | (382) | (21,108) | ||
Loss on disposal of property and equipment | 0 | 128 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable, net | (5,556) | 267 | ||
Inventories | 4,130 | (1,081) | ||
Prepaid expenses | (1,107) | 847 | ||
Other current assets | 5,340 | 3,094 | ||
Accounts payable | 2,089 | (3,603) | ||
Accrued interest | 561 | 21 | ||
Accrued expenses and other current liabilities | (34,096) | 1,962 | ||
Other | 124 | (12) | ||
Net cash provided by (used in) operating activities | (27,356) | 61,038 | ||
Investing activities | ||||
Purchases of property and equipment | (458) | (1,770) | ||
Proceeds from sale of property and equipment | 0 | 14 | ||
Acquisition of business, net of cash acquired | (600,825) | (1,757) | ||
Cash withdrawn from trust account | 403,979 | 0 | ||
Net cash used in investing activities | (197,304) | (3,513) | ||
Financing activities | ||||
Proceeds from option exercises | 0 | 120 | ||
Proceeds from warrant exercises | 0 | 232 | ||
Tax payments related to issuance of restricted stock units | 0 | (120) | ||
Excess tax benefits of stock-based compensation | 0 | 0 | ||
Deferred financing costs | 0 | (319) | ||
Principal payments of long-term debt | 0 | (1,500) | ||
Proceeds from issuance of private placement equity, net of issuance costs | 97,000 | 0 | ||
Proceeds from issuance of long term debt, net of issuance costs | 191,899 | 0 | ||
Payment of Conyers Park deferred equity issuance costs | (8,100) | 0 | ||
Net cash used in (provided by) financing activities | 280,799 | (1,587) | ||
Cash and cash equivalents | ||||
Net increase (decrease) in cash | 56,139 | 55,938 | ||
Effect of exchange rate on cash | 159 | (468) | ||
Cash at beginning of period | 203 | 56,501 | ||
Cash and cash equivalents at end of period | 56,501 | $ 203 | 111,971 | |
Supplemental disclosures of cash flow information | ||||
Cash paid for interest | 909 | 11,218 | ||
Cash paid for taxes | 0 | $ 4,577 | ||
Predecessor | ||||
Operating activities | ||||
Net income | (2,485) | $ 10,034 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 8,617 | 10,179 | ||
Amortization of deferred financing costs and debt discount | 1,950 | 2,159 | ||
Stock compensation expense | 2,441 | 2,104 | ||
Change in warrant liabilities | (722) | 722 | ||
Gain in fair value change of contingent consideration - TRA liability | 0 | 0 | ||
Unrealized gain (loss) on foreign currency transactions | (133) | 619 | ||
Deferred income taxes | (3,880) | 5,505 | ||
Loss on disposal of property and equipment | 0 | 0 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable, net | 14,447 | (14,854) | ||
Inventories | 1,912 | 6,078 | ||
Prepaid expenses | 36 | (391) | ||
Other current assets | (10,548) | (1,309) | ||
Accounts payable | (7,246) | 2,247 | ||
Accrued interest | (3,615) | (211) | ||
Accrued expenses and other current liabilities | 21,459 | 6,029 | ||
Other | (294) | 112 | ||
Net cash provided by (used in) operating activities | 21,939 | 29,023 | ||
Investing activities | ||||
Purchases of property and equipment | (498) | (815) | ||
Proceeds from sale of property and equipment | 0 | 0 | ||
Acquisition of business, net of cash acquired | (19,960) | 0 | ||
Cash withdrawn from trust account | 0 | 0 | ||
Net cash used in investing activities | (20,458) | (815) | ||
Financing activities | ||||
Proceeds from option exercises | 109 | 326 | ||
Proceeds from warrant exercises | 0 | 0 | ||
Tax payments related to issuance of restricted stock units | 0 | 0 | ||
Excess tax benefits of stock-based compensation | (59) | 403 | ||
Deferred financing costs | 0 | 0 | ||
Principal payments of long-term debt | (53,586) | (7,464) | ||
Proceeds from issuance of private placement equity, net of issuance costs | 0 | 0 | ||
Proceeds from issuance of long term debt, net of issuance costs | 0 | 0 | ||
Payment of Conyers Park deferred equity issuance costs | 0 | 0 | ||
Net cash used in (provided by) financing activities | (53,536) | (6,735) | ||
Cash and cash equivalents | ||||
Net increase (decrease) in cash | (52,055) | 21,473 | ||
Effect of exchange rate on cash | (10) | (75) | ||
Cash at beginning of period | $ 26,427 | 78,492 | 57,094 | |
Cash and cash equivalents at end of period | 26,427 | 78,492 | ||
Supplemental disclosures of cash flow information | ||||
Cash paid for interest | 24,334 | 25,247 | ||
Cash paid for taxes | $ 12,711 | $ 812 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income |
Balance (in shares) (Predecessor) at Aug. 29, 2015 | 506,020 | ||||
Balance (Predecessor) at Aug. 29, 2015 | $ (41,322) | $ 5 | $ (46,384) | $ 6,121 | $ (1,064) |
Condensed Statement of Stockholders' Equity | |||||
Net income | Predecessor | 10,034 | 10,034 | |||
Stock compensation | Predecessor | 2,104 | 2,104 | |||
Foreign currency translation adjustment | Predecessor | 621 | 621 | |||
Issuance of Restricted Stock Unit | Predecessor | 403 | 403 | |||
Exercise of options to purchase common stock (in shares) | Predecessor | 2,112 | ||||
Exercise of options to purchase common stock | Predecessor | 326 | 326 | |||
Balance (in shares) (Predecessor) at Aug. 27, 2016 | 508,132 | ||||
Balance (Predecessor) at Aug. 27, 2016 | (27,834) | $ 5 | (43,551) | 16,155 | (443) |
Condensed Statement of Stockholders' Equity | |||||
Net income | Predecessor | (2,485) | (2,485) | |||
Stock compensation | Predecessor | 2,441 | 2,441 | |||
Foreign currency translation adjustment | Predecessor | (199) | (199) | |||
Issuance of Restricted Stock Unit | Predecessor | (59) | (59) | |||
Exercise of options to purchase common stock (in shares) | Predecessor | 387 | ||||
Exercise of options to purchase common stock | Predecessor | 109 | 109 | |||
Balance (in shares) (Predecessor) at Jul. 06, 2017 | 508,519 | ||||
Balance (in shares) at Jul. 06, 2017 | 70,562,477 | ||||
Balance (Predecessor) at Jul. 06, 2017 | (28,027) | $ 5 | (41,060) | 13,670 | (642) |
Balance at Jul. 06, 2017 | 597,821 | $ 706 | 609,726 | (12,611) | 0 |
Balance (in shares) (Predecessor) at Aug. 27, 2016 | 508,132 | ||||
Balance (Predecessor) at Aug. 27, 2016 | $ (27,834) | $ 5 | (43,551) | 16,155 | (443) |
Balance (in shares) at Aug. 26, 2017 | 70,562,477 | 70,562,477 | |||
Balance at Aug. 26, 2017 | $ 598,702 | $ 706 | 610,138 | (12,161) | 19 |
Balance (in shares) (Predecessor) at Jul. 06, 2017 | 508,519 | ||||
Balance (in shares) at Jul. 06, 2017 | 70,562,477 | ||||
Balance (Predecessor) at Jul. 06, 2017 | (28,027) | $ 5 | (41,060) | 13,670 | (642) |
Balance at Jul. 06, 2017 | 597,821 | $ 706 | 609,726 | (12,611) | 0 |
Condensed Statement of Stockholders' Equity | |||||
Net income | 450 | 450 | |||
Stock compensation | 412 | 412 | |||
Foreign currency translation adjustment | $ 19 | 19 | |||
Balance (in shares) at Aug. 26, 2017 | 70,562,477 | 70,562,477 | |||
Balance at Aug. 26, 2017 | $ 598,702 | $ 706 | 610,138 | (12,161) | 19 |
Condensed Statement of Stockholders' Equity | |||||
Net income | 70,455 | 70,455 | |||
Stock compensation | 4,029 | 4,029 | |||
Foreign currency translation adjustment | (817) | (817) | |||
Issuance of Restricted Stock Units (in shares) | 12,986 | ||||
Issuance of Restricted Stock Unit | (120) | (120) | |||
Exercise of options to purchase common stock (in shares) | 10,000 | ||||
Exercise of options to purchase common stock | 120 | 120 | |||
Warrant conversion (in shares) | 20,212 | ||||
Warrant conversion | $ 232 | 232 | |||
Balance (in shares) at Aug. 25, 2018 | 70,605,675 | 70,605,675 | |||
Balance at Aug. 25, 2018 | $ 672,601 | $ 706 | $ 614,399 | $ 58,294 | $ (798) |
Nature of Operations and Princi
Nature of Operations and Principles of Consolidation | 12 Months Ended |
Aug. 25, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Principles of Consolidation | Nature of Operations and Principles of Consolidation Description of Business Conyers Park Acquisition Corp (“Conyers Park”) was formed on April 20, 2016, as a special purpose acquisition company (“SPAC”) for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. The Simply Good Foods Company (“Simply Good Foods”) was formed by Conyers Park on March 30, 2017. On April 10, 2017, Conyers Park and NCP-ATK Holdings, Inc. (“Atkins”) announced that they entered into a definitive merger agreement (the “Merger Agreement”). On July 7, 2017 (the “Closing Date”), pursuant to the Merger Agreement, Conyers Park merged into Simply Good Foods, which acquired Atkins. As a result, both entities became wholly-owned subsidiaries of Simply Good Foods (the “Business Combination”). Simply Good Foods was listed on the NASDAQ Capital Market under the symbol “SMPL” upon consummation of the Business Combination. Atkins was formerly owned by Roark Capital Management, LLC (“Roark”). The Business Combination resulted in Conyers Park controlling the Board of Directors of the combined entity. For accounting purposes, Simply Good Foods is the acquirer and the accounting “Successor” in the Business Combination while Atkins is the acquiree and accounting “Predecessor”. Our financial statement presentation includes the financial statements of Atkins as “Predecessor” for all periods prior to the Closing Date and of Simply Good Foods, including the consolidation of Atkins, for periods after the Closing Date. See Note 3 , Business Combination , for further information. Simply Good Foods operates in the healthy snacking category. The Atkins brand approach focuses on a healthy eating approach with reduced levels of refined carbohydrates and refined sugars and encourages the consumption of lean protein, fiber, fruits, vegetables and good fats. The Company sells a variety of nutrition bars, shakes and frozen meals designed around the nutrition principles of the Atkins eating approach. Basis of Presentation The consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). The Company maintains its accounting records on a 52 / 53 -week fiscal year. The financial information presented within our consolidated financial statements has been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The accompanying financial statements include consolidated balance sheets for the successor entity for the periods ended August 25, 2018 and August 26, 2017 . The remaining financial statements include the successor fifty-two week period ended August 25, 2018 , the successor period from July 7, 2017 through August 26, 2017, the predecessor period from August 28, 2016 through July 6, 2017 and the predecessor fifty-two week period ended August 27, 2016. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany accounts and transactions have been eliminated. Unless the context otherwise requires, “we,” “us,” “our” and the “Company” refer to Atkins and its subsidiaries for periods prior to the completion of the Business Combination, and Simply Good Foods and its subsidiaries for periods upon or after the completion of the Business Combination. Seasonality The Company has experienced in the past, and expects to continue to experience, seasonal fluctuations in sales as a result of consumer spending patterns. Historically, sales have been greatest in the first calendar quarter as the Company sells product to retail locations, which sell to consumers in the second fiscal quarter primarily driven by the post-holiday resolution season. The Company has also seen minimal seasonality in the summer and back-to-school shopping seasons in the third and fourth fiscal quarters, respectively. The period of the lowest sales has historically been the fourth fiscal quarter. The Company believes these consumer spending patterns are driven primarily by the predisposition of consumers to adjust their approach to nutrition at certain times of the year as well as the timing of the Company’s advertising linked with key customer promotion windows. Licensing of Frozen Meals On September 1, 2016, the agreement with Bellisio Foods to license Atkins’ frozen meals resulting in royalty income became effective. Royalty income is recorded in net sales for the successor fifty-two week period ended August 25, 2018 , the successor period from July 7, 2017 through August 26, 2017 and for the predecessor period from August 28, 2016 through July 6, 2017. In prior periods, frozen sales and related profitability was included in net sales and operating income. For a further discussion of this agreement, see Note 17 , Significant Agreement . |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Aug. 25, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Estimates also affect the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, deposits available on demand and other short-term, highly liquid investments with original maturities of three months or less. Cash equivalents are carried at cost, which approximates fair value. Revenue Recognition Revenue is recognized from the sale of product when (i) persuasive evidence of an arrangement exists, (ii) the price is fixed or determinable, (iii) title and risk of loss pass to the customer at the time of delivery and (iv) there is reasonable assurance of collection of the sales proceeds. The Company has a historical practice of refunding customers for products damaged in-transit. Generally, ownership of and title to the Company's finished products passes upon delivery to customers. As risks and rewards of ownership of the products transferrers upon receipt by the customer, revenue is recognized upon delivery to the customer's destination ("FOB Destination"). Revenue is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. The Company generally allows customers to return product that is damaged at the time of delivery. Allowances for returns are recorded as a reduction to sales in the same period revenue is recognized. These allowances are estimated using historical experience. The Company offers trade promotions through various programs to customers and consumers. Trade promotions include discounts, rebates, slotting and other marketing activities. Trade promotions are recorded as a reduction to net sales with a corresponding reduction to accounts receivable at the later of the time the incentive is offered or at the time of revenue recognition for the underlying sale. The recognition of trade promotions requires management to make estimates regarding the volume of incentive that will be redeemed and their total cost. These estimates are made using various information including historical data on performance of similar trade promotional activities, as well as the Company's best estimate of current activity. The Company’s allowances for trade promotions are recorded as a reduction to both Accounts receivables and Net sales . As of August 25, 2018 and August 26, 2017 , Accounts receivable included trade promotions of $7.4 million and $7.8 million , respectively. Differences between estimated expense and actual redemptions are recognized as a change in management estimate in a subsequent period. These differences have historically been insignificant. Accounts Receivable Accounts receivable consists primarily of trade receivables, net of allowances for doubtful accounts, returns and trade promotions. Our products are sold for cash or on credit terms. Our credit terms, which are established in accordance with local and industry practices, typically require payment within 30 days of delivery and may allow discounts for early payment. The Company estimates an allowance for doubtful accounts based upon a review of outstanding receivables, historical collection information and our analysis of customer data. Accounts receivable are written off when determined to be uncollectible. At August 25, 2018 and August 26, 2017 , the allowance for doubtful accounts was $0.7 million and $0.4 million , respectively. Inventories Inventories are valued at the lower of cost or market on a first-in, first-out basis, adjusted for the value of inventory that is estimated to be excess, obsolete, expired or unsaleable. Obsolete inventory is reserved at 50% for inventory four to six months from expiration, and 100% for items within three months of expiration. Reserves are also taken for certain products or packaging materials when it is determined their cost may not be recoverable. At August 25, 2018 and August 26, 2017 , the provision for obsolete inventory was $0.5 million and $1.0 million , respectively. As a result of the Business Combination, Simply Good Foods recorded a one-time inventory fair value step-up of $6.0 million , as determined in accordance with FASB Accounting Standards Codification (“ASC”) 820, Fair Value Measurements (“ASC 820”). Refer to Note 3 , Business Combination , for additional information regarding the transaction. The one-time inventory fair value step-up impacts cost of goods sold of the successor period. Property and Equipment Property and equipment acquired in the Business Combination are stated at the allocated fair value in purchase accounting. Additions to property and equipment are recorded at cost and depreciated straight-line over their estimated useful lives. The general ranges of estimated useful lives are: Furniture and fixtures 7 years Computer equipment, software and website development costs 3 - 5 years Machinery and equipment 7 years Office equipment 3 - 5 years Leasehold improvements are amortized over the shorter of the remaining term of the lease or the useful life of the improvement utilizing the straight-line method. The Company capitalizes costs of materials and consultants involved in developing its website and mobile applications for smart phones (collectively, “website development costs”). Costs incurred during the preliminary project and post-implementation stages are charged to expense. Website development costs are amortized on a straight-line basis over an estimated useful life of three years. Included in Property and equipment are website development costs as follows: August 25, 2018 August 26, 2017 (In thousands) (Successor) (Successor) Website development costs, gross $ 1,746 $ 899 Amortization (755 ) (91 ) Website development costs, net $ 991 $ 808 Amortization of capitalized website development costs expensed were $0.7 million for fifty-two week period ended August 25, 2018 , $0.1 million for the successor period from July 7, 2017 through August 26, 2017 , $0.5 million for the predecessor period from August 28, 2016 through July 6, 2017 and $0.6 million for the fifty-two week period ended August 27, 2016 . There were no disposals of fully amortized website development costs during the fiscal period ending August 25, 2018 , the successor period from July 7, 2017 through August 26, 2017 , the predecessor period from August 28, 2016 through July 6, 2017 or the fiscal period ending August 27, 2016. The Company performs impairment tests when circumstances indicate that the carrying value of the asset may not be recoverable. There were no indicators of impairment in the fiscal period ending August 25, 2018 , the successor period from July 7, 2017 through August 26, 2017 , the predecessor period from August 28, 2016 through July 6, 2017 or the fiscal period ending August 27, 2016. Goodwill and Intangible Assets Goodwill and Intangible assets result primarily from the Business Combination, discussed in Note 3 , and acquisitions including the 2011 acquisition of the Company by Roark. Intangible assets primarily include brands and trademarks with indefinite lives and customer-related relationships with finite lives. Upon acquisition, the purchase price is first allocated to identifiable assets and liabilities, including customer-related intangible assets and trademarks, with any remaining purchase price recorded as Goodwill . Goodwill and indefinite-lived intangible assets are not amortized, but are tested for impairment on an annual basis, or more frequently if indicators of impairment are present. Our annual impairment tests are conducted at the beginning of the fourth quarter. Goodwill and indefinite-lived intangible assets are assessed using either a qualitative or a quantitative approach. The qualitative assessment evaluates factors including macro-economic conditions, industry and company-specific factors, legal and regulatory environments, and historical company performance are evaluated in assessing fair value. If we determine that it is more likely than not that the fair value of the reporting unit is less than its carrying value, a quantitative test is then performed. Otherwise, no further testing is required. When using a quantitative approach, we compare the fair value of the reporting unit to its carrying amount, including goodwill. If the estimated fair value of the reporting unit is less than the carrying amount of the reporting unit, impairment is indicated, requiring recognition of an impairment charge for the differential. Qualitative assessments of goodwill and indefinite-lived intangible assets were performed in 2018 , 2017 and 2016 . Based on the results of assessment, it was determined that it is more likely than not the reporting unit, brands and trademarks had a fair value in excess of carrying value. Accordingly, no further impairment testing was completed and no impairment charges related to goodwill or indefinite-lived intangibles were recognized during the fiscal periods ended August 25, 2018 , August 26, 2017 or August 27, 2016 . Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company reviews for impairment indicators of finite-lived intangibles and other long-lived assets as described in the “Property and Equipment” significant accounting policy. Deferred Financing Costs and Debt Discounts Costs incurred in obtaining long-term financing paid to parties other than creditors are considered a debt discount and are amortized over the terms of the long-term financing agreements using the effective-interest method. Amounts paid to creditors are recorded as a reduction in the proceeds received by the creditor and are considered a discount on the issuance of debt. Income Taxes Income taxes include federal, state and foreign taxes currently payable and deferred taxes arising from temporary differences between income for financial reporting and income tax purposes. Deferred tax assets and liabilities are determined based on the differences between the financial statement balances and the tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the fiscal year that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to amounts expected to be realized. Foreign Currency Translation For all foreign operations, the functional currency is the local currency. Assets and liabilities of these operations are translated into U.S. dollars using the exchange rate in effect at the end of each reporting period. Income statement accounts are translated at the average exchange rate prevailing during each reporting period. Translation adjustments are recorded as a component of Other comprehensive income (loss) . Gains or losses resulting from transactions in foreign currencies are included in Other income (expense) . Advertising Costs Production costs related to television commercials are expensed when first aired. All other advertising costs are expensed when incurred through Selling and Marketing . Total advertising costs were $34.0 million for the fifty-two week period ended August 25, 2018 , $3.8 million for the successor period from July 7, 2017 through August 26, 2017 , $26.6 million for the predecessor period from August 28, 2016 through July 6, 2017 and $27.7 million for the fifty-two week period ended August 27, 2016 . Production costs related to television commercials not yet aired are included in Prepaid expenses in the accompanying Consolidated Balance Sheets. Production costs included $1.2 million related to television commercials not yet aired at August 26, 2017 . There were no productions costs related to television commercials not yet aired at August 25, 2018 . Research and Development Activities The Company’s research and development activities primarily consist of generating and testing new product concepts, new flavors and packaging. The Company expenses research and development costs as incurred related to compensation, facility costs, consulting and supplies. Research and development activities are primarily internal and associated costs are included in General and administrative . The Company’s total research and development expenses were $2.5 million for the fifty-two week period ended August 25, 2018 , $0.4 million for the successor period from July 7, 2017 through August 26, 2017, $1.9 million for the predecessor period from August 28, 2016 through July 6, 2017 and $2.1 million for the fifty-two week period ended August 27, 2016 . Share-Based Compensation The Company uses share-based compensation, including stock options and restricted stock units, to provide long-term performance incentives for its employees and directors. Share-based compensation is recognized on a straight-line basis over the requisite service period of the award based on their grant-date fair value. Forfeitures are recognized as they occur. Share based compensation expense is included within the same financial statement caption where the recipient’s other compensation is reported. Defined Contribution Plan The Company sponsors defined contribution plans to provide retirement benefits to its employees. The Company's 401(k) plan and similar plans for non-domestic employees are based on a portion of eligible pay up to a defined maximum. All matching contributions are made in cash. Expense associated with defined contribution plans was $0.4 million for the fifty-two week period ended August 25, 2018 , $0.0 million for the successor period from July 7, 2017 through August 26, 2017 , $0.3 million for the predecessor period from August 28, 2016 through July 6, 2017 and $0.3 million for the fifty-two week period ended August 27, 2016 . Shipping and Handling Costs Costs associated with shipping products to customers are recognized in Distribution . Costs of $19.7 million for the fifty-two week period ended August 25, 2018 , $2.8 million for the successor period from July 7, 2017 through August 26, 2017 , $15.0 million for the predecessor period from August 28, 2016 through July 6, 2017 and $18.5 million for the fifty-two week period ended August 27, 2016 were recorded relating to products shipped to customers. Recently Issued and Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers . The objective of ASU No. 2014-09 is to outline a new, single comprehensive model to use in accounting for revenue arising from contracts with customers. The new revenue recognition model provides a five-step analysis for determining when and how revenue is recognized, depicting the transfer of promised goods or services to customers in an amount that reflects the consideration that is expected to be received in exchange for those goods or services. On July 9, 2015, the FASB voted to delay the implementation of ASU No. 2014-09 by one year to fiscal years and interim periods within those years beginning after December 15, 2017. An entity may elect to early adopt as of the original effective date, fiscal years and interim periods within those years beginning after December 15, 2016. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing, which provides additional clarification regarding identifying performance obligations and licensing. In December 2016, the FASB issued ASU No. 2016-19, 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers . These ASUs will replace most existing revenue recognition guidance in GAAP and, due to the Business Combination, will be effective for the Company beginning in fiscal 2019. The standard permits the use of either the retrospective or modified retrospective (cumulative effect) transition method. The updated guidance requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company has concluded its assessment and will adopt the new standard in the first quarter of 2019 utilizing the modified retrospective transition method. The adoption of the ASU will not have a material impact on the Company's consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10). This new standard enhances the reporting model for financial instruments regarding certain aspects of recognition, measurement, presentation and disclosure. The provisions of this ASU are effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual periods. This ASU is to be applied using a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. This ASU is effective for the Company’s August 2019 fiscal year end. The Company does not anticipate adoption of this ASU will have a material impact to its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The new guidance is effective for the Company beginning in fiscal 2020. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the effects adoption of this guidance will have on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The new guidance is intended to eliminate diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for all entities, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. This ASU is effective for the Company’s August 2019 fiscal year end. The Company does not anticipate adoption of this ASU will have a material impact on its consolidated statements of cash flows. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and other (Topic 350): Simplifying the Test for Goodwill Impairment . The standard simplifies how an entity tests goodwill by eliminating Step 2 of the goodwill impairment test. The amended standard also modifies the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. The new guidance is effective for the Company beginning in fiscal 2020. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not anticipate adoption of this ASU to be material to its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805) , to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The provisions of this ASU provide a more robust framework to use in determining when a set of assets and activities is a business by clarifying the requirements related to inputs, processes and outputs. These provisions are to be applied prospectively and are effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual periods. This ASU is effective for the Company’s 2019 fiscal year end. The Company does not anticipate adoption of this ASU to be material to its consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. The amended standard specifies the modification accounting applicable to any entity which changes the terms or conditions of a share-based payment award. The new guidance is effective for all entities after December 2017. Early adoption is permitted. The Company does not anticipate adoption of this ASU to be material to its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) , which modifies disclosure requirements on fair value measurements of ASC 820. This ASU is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted including in any interim period for which financial statements have not yet been issued. Entities are permitted to early adopt the eliminated or modified disclosure requirements and delay the adoption new disclosure requirements until their effective date. The Company does not anticipate adoption of this ASU to be material to its consolidated financial statements. |
Business Combination
Business Combination | 12 Months Ended |
Aug. 25, 2018 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination Acquisition of Atkins Upon the consummation of the Business Combination, and through a number of sub-mergers discussed in Note 1 , Nature of Operations and Principles of Consolidation , Conyers Park merged into Simply Good Foods which subsequently acquired, and obtained control over, Atkins. The Business Combination was accounted for using the acquisition method of accounting, and the Successor financial statements reflect a new basis of accounting that is based on the fair value of the net assets acquired. The historical financial information of Conyers Park, prior to the Business Combination, is not reflected in the predecessor financial statements as those amounts are considered de-minimis. The financial statements of Conyers Park are included in the post-merger successor entity, which includes balance sheet and equity items of Conyers Park assumed by Simply Good Foods through the transaction. As a result of the application of the acquisition method of accounting as of the Closing Date, the financial statements for the predecessor period and for the successor period are presented on a different basis of accounting and are therefore not comparable. The Business Combination was accounted for using the acquisition method of accounting in accordance with ASC 805, Business Combinations (“ASC 805”). ASC 805 requires, among other things, that assets acquired and liabilities assumed be recognized at their fair values, as determined in accordance with ASC 820 as of the Closing Date. Consistent with the acquisition method of accounting, the assets acquired and liabilities assumed from Atkins have been recorded at their respective fair values and added to those of Conyers Park. ASC 805 establishes a measurement period to provide the Company with a reasonable amount of time to obtain the information necessary to identify and measure various items in a business combination and cannot extend beyond one year from the acquisition date. The Business Combination was funded by Conyers Park through a combination of cash, stock and debt financing. Cash sources of funding included $404.0 million of cash held in Conyers Park’s trust account, $100.0 million from private placement equity issuance, $200.0 million in new term loan debt and $0.2 million of cash on hand at Conyers Park. Upon the close of the transaction, a total of $8.1 million was paid in debt issuance costs related to the new term loan, $8.1 million was paid in deferred equity issuance costs related to the original IPO of Conyers Park, $3.0 million was paid related to the private placement equity issuance costs and $12.4 million of cash was paid in acquisition-related transaction costs incurred by Conyers Park. As an integrated part of the closing of the Business Combination, $284.0 million of cash was paid to retire the predecessor long-term debt of Atkins. The acquisition-related transaction costs incurred by Conyers Park are reflected within the opening accumulated deficit within the Simply Good Foods consolidated statement of stockholder’s equity. In the first quarter of fiscal 2018, pursuant to the terms of the Merger Agreement, Simply Good Foods paid a working capital adjustment of $1.8 million to the former owners of Atkins, which resulted in an increase to the previously recognized Goodwill. Upon completion of the purchase accounting as of the close of the transaction, Roark received approximately $821.6 million in total consideration. A total of $673.8 million of cash consideration was paid to acquire Atkins. The total consideration is inclusive of 10.2 million shares of common stock of Simply Good Foods valued at $11.47 per share, or $117.6 million in equity consideration at fair value. Roark is also entitled to future cash payments pursuant to the Tax Receivable Agreement (the "TRA"), which had a preliminary estimated fair value of $25.7 million as of the close of the Business Combination. During the second quarter, we completed the valuation of the TRA. The finalized TRA resulted in incremental contingent consideration of $4.6 million , the inclusion of which increased the initial fair value of TRA consideration to $30.3 million . The increase in consideration also increased Goodwill by $4.6 million to $471.4 million . The TRA obligation is recorded at fair value and is classified as a liability. The TRA provides for the payment by Simply Good Foods to Roark for certain federal, state, local and non-U.S. tax benefits deemed realized in post-closing taxable periods by Simply Good Foods, Conyers Park, Atkins and Atkins’ eligible subsidiaries from the use of up to $100 million of the following tax attributes: (i) net operating losses available to be carried forward as of the close of the Business Combination, (ii) certain deductions generated by the consummation of the business transaction and (iii) remaining depreciable tax basis from the 2003 acquisition of Atkins Nutritionals, Inc. Subsequent changes in the fair value of the TRA contingent consideration will be recognized in earnings. As of August 25, 2018 , the estimated fair value of prospective contingent payments is $27.5 million , which represents 100% of the value of the recorded tax attributes (refer to Note 9 , Income Taxes , for additional discussion on the TRA). The predecessor financial statements of historical Atkins included Business Combination related seller costs of $2.0 million related to legal costs, $8.6 million of contingent success fees to an investment banker providing advisory services triggered by the transaction and $13.8 million of contingent change-in-control bonuses. These seller costs were incurred during the fourth quarter of fiscal 2017 and are recorded within Business combination transaction costs. The following summarizes the fair value of the Business Combination. (In thousands) Cash paid $ 673,763 Equity consideration paid to selling equity holders (a) 117,567 Total cash and equity consideration 791,330 TRA to selling equity holders 30,315 Total consideration $ 821,645 (a) Equity consideration paid is summarized below: (In thousands, except equity per share data) Shares of Simply Good Foods paid to former equity holders of Atkins 10,250 Fair value of SMPL equity per share based on the market price on the day of the close $ 11.47 Equity consideration paid $ 117,567 The Company has recorded the final allocation of the purchase price to the predecessor’s tangible and identified intangible assets acquired and liabilities assumed, based on their fair values as of the Closing Date. The fair value is as follows: (In thousands) Assets acquired: Cash and cash equivalents $ 71,181 Accounts receivable, net 31,507 Inventories 33,023 Prepaid assets 1,781 Other current assets 13,466 Property and equipment, net 1,793 Intangible assets, net (1) 320,000 Other long-term assets 2,224 Liabilities assumed: Accounts payable (12,187 ) Other current liabilities (36,498 ) Deferred income taxes (2) (76,072 ) Total identifiable net assets 350,218 Goodwill (1)(3) 471,427 Total assets acquired and liabilities assumed $ 821,645 _______________ (1) Goodwill and intangible assets were recorded at fair value consistent with ASC 820 as a result of the Business Combination. Intangible assets consist of brands and trademarks, customer relationships, proprietary recipes and formulas, and licensing agreements. The useful lives of the intangible assets are disclosed in Note 5 , Goodwill and Intangibles . The fair value measurement of the assets and liabilities were based on significant inputs not observable in the market, and thus, represent Level 3 measurements within the fair value measurement hierarchy. Level 3 fair market values were determined using a variety of information, including estimated future cash flows, appraisals and market comparable data and companies. (2) As a result of the increase in the fair value of the intangible asset, the deferred income taxes were increased by $50.7 million . (3) Amounts recorded for goodwill are generally not expected to be deductible for tax purposes. Unaudited Pro Forma Financial Information The following unaudited pro forma combined financial information presents combined results of Conyers Park and Atkins as if the Business Combination had occurred on August 30, 2015. 52-Weeks Ended 52-Weeks Ended (In thousands) August 26, 2017 August 27, 2016 Net sales $ 396,171 $ 369,039 Gross profit $ 186,221 $ 169,552 Net income $ 28,857 $ 21,288 These pro forma combined results include certain adjustments, primarily due to decreases in amortization expense related to the changes in useful lives of intangible assets and decreases in interest expense due to the refinancing of Atkins debt. The pro forma financial information is not intended to represent or be indicative of the actual results of operations of the combined entity that would have been reported had the Business Combination been completed on August 30, 2015, nor is it representative of future operating results of the Company. Acquisition of Wellness Foods On December 21, 2016, the predecessor company acquired Wellness Foods, Inc. (“Wellness Foods”), a Canadian-based company and owner of the Simply Protein line of products. The Company paid $20.1 million to acquire Wellness Foods. The Company incurred $0.7 million in transaction expenses which are recorded within Business combination transaction costs . Wellness Foods is based in Toronto, Canada, and manufactures, markets and distributes protein rich snack foods that offer clean eating, optimal ingredients and innovative nutrition. The acquisition of Wellness Foods expanded the portfolio of protein rich products and provided new product capabilities to support the Atkins’ brand of “low-carb”, “effective weight-management” and “protein-rich” diet. The Company has included Wellness Foods’ results of operations in the Consolidated Statements of Operations and Income from the date of acquisition. The acquisition was accounted for using the acquisition method of accounting. Assets acquired and liabilities assumed in connection with the acquisition have been recorded at their fair values. The fair values were determined by management based in part on an independent valuation of assets acquired, which included intangible assets of approximately $4.9 million and relate primarily to trade-names and customer relationship subject to amortization over a 15 year term. Approximately $0.8 million of amortizable intangible assets were identified at the time of the acquisition. The following table summarizes the allocation of the purchase price to the fair value of assets acquired and liabilities assumed in relation to the acquisition of Wellness Foods on December 21, 2016, prior to the Business Combination and the fair value assessment performed over the predecessor Atkins entity. (In thousands) December 21, 2016 Assets acquired: Cash and cash equivalents $ 157 Accounts receivable, net 1,200 Prepaid expenses and other current assets 48 Inventories, net 1,388 Property and equipment, net 13 Intangible assets 4,934 Liabilities assumed: Accounts payable (687 ) Accrued expenses and other current liabilities (342 ) Other taxes payable (VAT) (2 ) Income taxes payable (138 ) Total identifiable net assets 6,571 Goodwill 13,546 Total purchase price $ 20,117 The acquisition of Wellness Foods was deemed to not be material to the Company under Item 3-05 of Regulation S-X, and, therefore, separate financial statements are not required as it is not a “significant subsidiary”. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Aug. 25, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net , as presented with the Consolidated Balance Sheets, are summarized as follows: August 25, 2018 August 26, 2017 (In thousands) (Successor) (Successor) Furniture and fixtures $ 638 $ 69 Computer equipment and software 305 161 Machinery and equipment 233 289 Website development costs 1,746 899 Leasehold improvements 337 310 Construction in progress 507 525 Property and equipment, gross 3,766 2,253 Less: accumulated depreciation and amortization (1,201 ) (148 ) Property and equipment, net $ 2,565 $ 2,105 Depreciation and amortization expense, recorded within the Consolidated Statements of Operations and Comprehensive Income, was $1.2 million for the fifty-two week period ended August 25, 2018 , $0.1 million for the successor period from July 7, 2017 through August 26, 2017 , $1.0 million for the predecessor period from August 28, 2016 through July 6, 2017 and $1.1 million for the fifty-two week period ended August 27, 2016 . Other expense includes a $0.1 million loss on disposal of property and equipment in the fifty-two week period ended August 25, 2018 . |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Aug. 25, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Goodwill and Intangibles The following table presents the changes in Goodwill : (In thousands) Total Balance as of August 27, 2016 (Predecessor) $ 40,724 Goodwill acquired during the predecessor period 13,546 Effect of exchange rate changes 137 Elimination of predecessor goodwill (54,407 ) Successor business combination 465,030 Balance as of August 26, 2017 (Successor) $ 465,030 Goodwill working capital adjustment 1,757 Measurement period adjustment of the Business Combination 4,640 Balance as of August 25, 2018 (Successor) $ 471,427 Changes in the Company’s Goodwill from August 26, 2017 to August 25, 2018 are the result of finalization of the acquisition method of accounting as described in Note 3 , Business Combination . There were no impairment charges related to goodwill during these periods or since the inception of the Company. Intangible assets, net in our consolidated balance sheets consist of the following: Successor August 25, 2018 (In thousands) Useful life Gross carrying amount Accumulated amortization Net carrying amount Intangible assets with indefinite life: Brands and trademarks Indefinite life $ 232,000 $ — $ 232,000 Intangible assets with finite lives: Customer relationships 15 years 59,000 4,448 54,552 Proprietary recipes and formulas 7 years 7,000 1,131 5,869 Licensing agreements 14 years 22,000 1,778 20,222 $ 320,000 $ 7,357 $ 312,643 Successor August 26, 2017 (In thousands) Useful life Gross carrying amount Accumulated amortization Net carrying amount Intangible assets with indefinite life: Brands and trademarks Indefinite life $ 232,000 $ — $ 232,000 Intangible assets with finite lives: Customer relationships 15 years 59,000 515 58,485 Proprietary recipes and formulas 7 years 7,000 131 6,869 Licensing agreements 14 years 22,000 206 21,794 $ 320,000 $ 852 $ 319,148 Intangible assets, net changed due to amortization expense. Amortization expense related to intangible assets was $6.5 million for the fifty-two week period ended August 25, 2018 , $0.9 million for the successor period from July 7, 2017 through August 26, 2017 , $8.5 million for the predecessor period from August 28, 2016 through July 6, 2017 and $9.1 million for the fifty-two week period ended August 27, 2016 . Estimated future amortization for each of the next five fiscal years and thereafter is as follows: (In thousands) 2019 $ 6,505 2020 6,505 2021 6,505 2022 6,505 2023 6,505 Thereafter 48,118 Total $ 80,643 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Aug. 25, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities were comprised of the following: August 25, 2018 August 26, 2017 (In thousands) (Successor) (Successor) Professional fees $ 1,473 $ 1,286 Accrued advertising allowances and claims 1,525 1,037 Accrued bonus 6,726 4,907 Freight accrual 1,318 875 Payroll-related accruals 1,004 842 Commissions 977 1,025 Income taxes payable 386 576 VAT payable 1,481 1,627 Other 985 2,867 Accrued expenses and other current liabilities $ 15,875 $ 15,042 |
Long-Term Debt and Line of Cred
Long-Term Debt and Line of Credit | 12 Months Ended |
Aug. 25, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Line of Credit | Long-Term Debt and Line of Credit On July 7, 2017, the Company entered into a credit agreement with Barclays Bank PLC and other parties. The credit agreement provides for a term facility of $200.0 million (“Term Facility”) with a seven year maturity and a revolving credit facility of up to $75.0 million (the “Revolving Credit Facility”) with a five year maturity, under the first lien senior secured loan facilities (the “First Lien”). Substantially concurrent with the consummation of the Business Combination, the full $200.0 million of the First Lien term loan (the “Term Loan”) was drawn. No amounts were drawn on the Revolving Credit Facility. The interest rate per annum is based on either (i) a base rate equaling the higher of (a) the “prime rate”, (b) the federal funds effective rate plus 0.50% and (c) the Euro-currency rate applicable for an interest period of one month plus 1.00% plus (x) 3.00% margin for Term Loan or (y) 2.00% margin for Revolving Credit Facility, or (ii) London Interbank Offered Rate (“LIBOR”) adjusted for statutory reserve requirements, plus (x) 4.00% margin for the Term Loan subject to a floor of 1.00% or (y) 3.00% margin for the Revolving Credit Facility. As security for the payment or performance of its debt, the Company has pledged certain equity interests in its subsidiaries. On March 16, 2018 (the “Amendment Date”), the Company entered into an amendment (the “Repricing Amendment”) to the First Lien. As a result of the Repricing Amendment, the interest rate on the Term Loan was reduced and, as of the Amendment Date, such loans bear interest at a rate equal to, at the Company's option, either LIBOR plus an applicable margin of 3.50% or a base rate plus an applicable margin of 2.50% . The Repricing Amendment did not change the interest rate on the Revolving Credit Facility. The Revolving Credit Facility will continue to bear interest based upon the Company's consolidated First Lien net leverage ratio as of the last financial statements delivered to the administrative agent. No additional debt was incurred, or any proceeds received, by the Company in connection with the Repricing Amendment. The incremental fees paid to the administrative agent are reflected as additional debt discount and are amortized over the terms of the long-term financing agreements using the effective-interest method. The First Lien is subject to mandatory prepayments based on contractual terms. The credit facilities governing our debt contain certain financial and other covenants that limit our ability to, among other things, incur and/or undertake asset sales and other dispositions, liens, indebtedness, certain acquisitions and investments, consolidations, mergers, reorganizations and other fundamental changes, payment of dividends and other distributions to equity and warrant holders, and prepayments of material subordinated debt, in each case, subject to customary exceptions materially consistent with credit facilities of such type and size. The Revolving Credit Facility has a maximum total net leverage ratio equal to or less than 6.25 :1.00 (with a reduction to 6.00 :1.00 on the third anniversary of the closing date of the credit facilities) contingent on credit extensions in excess of 30% of the total amount of commitments available under the Revolving Credit Facility. Any failure to comply with the restrictions of the credit facilities may result in an event of default. The Company was in compliance with all covenants as of August 25, 2018 and August 26, 2017 , respectively. At August 25, 2018 and August 26, 2017 , there were no amounts drawn against the Revolving Credit Facility. Long-term debt consists of the following: August 25, 2018 August 26, 2017 (In thousands) (Successor) (Successor) Term Loan $ 198,500 $ 200,000 Less: Deferred financing fees 6,917 7,910 Total debt 191,583 192,090 Less: Current maturities, net of deferred financing fees of $1.4 million at August 25, 2018 and $1.3 million at August 26, 2017, respectively 648 234 Long-term debt, net of deferred financing fees $ 190,935 $ 191,856 Aggregate principal maturities of debt are as follows: (In thousands) Fiscal year ending: 2019 $ 2,000 2020 2,000 2021 2,000 2022 2,000 2023 2,000 Thereafter 188,500 Total debt $ 198,500 The Company utilizes market approaches to estimate the fair value of certain outstanding borrowings by discounting anticipated future cash flows derived from the contractual terms of the obligations and observable market interest and foreign exchange rates. The Company carries debt at historical cost and discloses fair value. As of August 25, 2018 and August 26, 2017 , the book value of the Company’s debt approximated fair value. All term debt is valued based on observable inputs and classified as Level 2 in the fair value hierarchy. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Aug. 25, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measurements, a three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is as follows: Level 1 – Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 – Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 – Valuations based on unobservable inputs reflecting the Company’s own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. The Company's liabilities measured at fair value as of August 25, 2018 are summarized as follows: Successor Level 1 Level 2 Level 3 Total Liabilities TRA liability $ — $ — $ 27,468 $ 27,468 The Company's liabilities measured at fair value as of August 26, 2017 are summarized as follows: Successor Level 1 Level 2 Level 3 Total Liabilities TRA liability $ — $ — $ 25,675 $ 25,675 For the fifty-two week period ended August 25, 2018 , a benefit of $2.8 million was recognized in Gain in fair value change of contingent consideration - TRA liability . The gain is primarily due to the change in the federal tax rates. The fair value and fair value inputs of the TRA is discussed in Note 9 , Income Taxes . For the predecessor entity, Changes in warrant liabilities included other income of $0.7 million for the predecessor period from August 28, 2016 through July 6, 2017 and other expense of $0.7 million for the fifty-two week period ended August 27, 2016 . The Company settled warrant liabilities of $15.0 million upon the change in control. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximated fair value as of August 25, 2018 and August 26, 2017 due to the relatively short maturity of these instruments. The predecessor entity historically carried warrant liabilities on the balance sheet at fair value. These warrant liabilities were settled with the change of control, discussed in Note 3 , Business Combination . The successor entity assumed the equity warrants of Conyers Park. The fair value of the warrants were calculated by estimating future cash payments to be made to the former owner, in part based on the probability-weighted present value of various payout scenarios. Key fair value inputs included the discount rate, expected future cash flows under various payout scenarios and a probability analysis of the payout scenarios. The methodology for measuring fair value is sensitive to the volatility of key inputs mentioned above. For additional information, see Note 11 , Stockholders' Equity . |
Income Taxes
Income Taxes | 12 Months Ended |
Aug. 25, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The sources of income (loss) before income taxes are as follows for the fifty-two week period ended August 25, 2018, the successor period from July 7, 2017 through August 26, 2017, the predecessor period from August 28, 2016 through July 6, 2017, and the fifty-two week period ended August 27, 2016: 52-Weeks Ended From July 7, 2017 From August 28, 2016 through July 6, 2017 52-Weeks Ended August 25, 2018 August 27, 2016 (In thousands) (Successor) (Successor) (Predecessor) (Predecessor) Domestic $ 49,748 $ 78 $ (690 ) $ 17,674 Foreign 3,343 662 2,775 (133 ) Total $ 53,091 $ 740 $ 2,085 $ 17,541 Income tax (benefit) expense was comprised of the following for the fifty-two week period ended August 25, 2018, the successor period from July 7, 2017 through August 26, 2017, the predecessor period from August 28, 2016 through July 6, 2017, and the fifty-two week period ended August 27, 2016: 52-Weeks Ended From July 7, 2017 From August 28, 2016 through July 6, 2017 52-Weeks Ended August 25, 2018 August 27, 2016 (In thousands) (Successor) (Successor) (Predecessor) (Predecessor) Current: Federal $ 2,584 $ 414 $ 7,340 $ 1,413 State and local 159 11 415 135 Foreign 1,001 247 695 454 Total current 3,744 672 8,450 2,002 Deferred: Federal (21,223 ) (379 ) (4,172 ) 4,796 State and local (26 ) (3 ) 259 686 Foreign 141 — 33 23 Total deferred income tax (benefit) expense (21,108 ) (382 ) (3,880 ) 5,505 Total tax (benefit) expense $ (17,364 ) $ 290 $ 4,570 $ 7,507 A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows: 52-Weeks Ended From July 7, 2017 From August 28, 2016 through July 6, 2017 52-weeks ended August 25, 2018 August 27, 2016 (In thousands) (Successor) (Successor) (Predecessor) (Predecessor) Statutory income tax expense: 25.5 % 34.0 % 34.0 % 34.0 % State income tax expense, net of federal 3.1 1.7 21.0 3.9 Valuation allowance 0.6 5.2 (0.9 ) 2.2 Taxes on foreign income above (below) the U.S. tax 0.4 (3.3 ) (7.5 ) 0.5 Warrant liabilities — — (11.8 ) 1.4 Tax Cuts and Jobs Act (58.4 ) — — — Change in tax rate (4.0 ) — (4.2 ) 0.6 Non-deductible transaction costs — — 182.7 — TRA contingent consideration (1.5 ) — — — Other permanent items 1.6 1.6 6.0 0.2 Income tax (benefit) expense (32.7 )% 39.2 % 219.3 % 42.8 % For the fifty-two week period ended August 25, 2018 , the effective tax rate differs from the U.S. statutory rate primarily due to the impact of periodic statutory tax rate changes that caused deferred tax balances to be revalued, offset by the inclusion of state income tax expense. For all prior periods reported, the effective rate is higher than the U.S. statutory rate primarily due to state income tax expense, tax losses recognized in jurisdictions for which a tax benefit is not realized, and tax expense associated with nondeductible permanent adjustments. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act” or “TCJA”) was signed into law. The change in the tax law is partially effective in the current 2018 fiscal year and will be fully effective in the 2019 fiscal year. The Tax Act, among other things, reduces the top U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. Due to the complexities involved in accounting for the Tax Act, the SEC Staff Accounting Bulletin (“SAB”) 118 requires that the Company include in its financial statements the reasonable estimate of the impact of the Tax Act on earnings to the extent such reasonable estimate has been determined. The Company is allowed a measurement period of up to one year after the enactment date to finalize the recording of the related tax impacts. As of August 25, 2018 , we have not completed our accounting for the tax effects of enactment of the Tax Act; however, as described below, we have made a reasonable estimate of the effects on our existing deferred tax balances and the one-time transition tax and have recorded provisional amounts. We recognized a provisional gain of $31.0 million in 2018, which is included as a component of Income tax (benefit) expense in the accompanying Consolidated Statements of Operations and Comprehensive Income. The Tax Act reduces the corporate federal tax rate to 21% , effective January 1, 2018. U.S. tax law stipulates that our 2018 earnings are subject to a blended statutory tax rate of 25.5% , which is based on the prorated number of days in the fiscal year before and after the effective date. As a result, the Company recorded a provisional decrease to our deferred tax liabilities, net, with a corresponding net adjustment to deferred income tax benefit of $31.0 million , which is included within the Income tax (benefit) expense line item for the period ended August 25, 2018 . While we are able to make a reasonable estimate of the impact of the reduction in corporate rate, it may be affected by other analysis related to the Tax Act, including, but not limited to, our calculation of deemed repatriation of deferred foreign income and the state tax effect of adjustments made to federal temporary differences. The one-time transition tax is based on our total post-1986 earnings and profits (E&P) that we previously deferred from U.S. income taxes. We recorded provisional amounts for our one-time transition tax liability for of our foreign subsidiaries, resulting in an immaterial increase in income tax expense. We have not yet completed our calculation of the total post-1986 E&P for these foreign subsidiaries. Further, the transition tax is based in part on the amount of those earnings held in cash and other specified assets. This amount may change when we finalize the calculation of post-1986 foreign E&P previously deferred from U.S. federal taxation and finalize the amounts held in cash or other specified assets. We are continuing to gather additional information to compute the amount of the transition tax more precisely. No additional income taxes have been provided for any additional outside basis differences inherent in our foreign subsidiaries beyond those basis differences triggered by the transition tax, as these amounts continue to be indefinitely reinvested in foreign operations. Determining the amount of the unrecognized deferred tax liability related to any additional outside basis differences in these entities (e.g., stock basis differences attributable to acquisitions or other permanent differences) is not practicable. We will complete our analysis of the impact of the Tax Act on our outside basis differences in subsidiaries and respective indefinite reinvestment assertions during the measurement period and make additional disclosures, if necessary. With respect to the new Tax Act provision on global intangible low-tax income (“GILTI”), which will apply to us starting in 2019, we have not made an accounting policy election on the deferred tax treatment. Consequently, we have not made an accrual for the deferred tax aspects of this provision. Additionally, the Company does not anticipate the newly enacted Base Erosion and Anti-Abuse Tax (“BEAT”) to have a material impact on its financial statements in future periods. Our accounting for the income tax effects of the Tax Act will be completed during the measurement period allowed under SAB 118, and we will record any necessary adjustments in the period such adjustments are identified. While we were able to make a reasonable estimate of the impact of the income tax effects of the new law, it may be affected by, among other items, further analysis of certain aspects of the Tax Act, subsequent guidance issued by the U.S. government, and changes to estimates made to calculate our existing temporary differences. The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and liabilities at August 25, 2018 and August 26, 2017 were as follows: August 25, 2018 August 26, 2017 (In thousands) (Successor) (Successor) Deferred tax assets Accounts receivable allowances $ 1,885 $ 2,727 Inventories reserves 107 322 Accrued expenses 1,961 2,042 Net operating loss carryforwards 10,150 22,122 Share based compensation 975 154 Tax credits 10,066 7,976 Other 1,051 882 Deferred tax assets 26,195 36,225 Valuation allowance (4,195 ) (3,905 ) Deferred tax asset, net of valuation allowance 22,000 32,320 Deferred tax liabilities: Prepaid expense (419 ) (1,066 ) Excess tax over book depreciation (77 ) 38 Website development costs (238 ) (301 ) Intangible assets (74,342 ) (106,263 ) Other (1,399 ) (287 ) Deferred tax liabilities (76,475 ) (107,879 ) Net deferred tax liabilities $ (54,475 ) $ (75,559 ) The Company had available U.S. federal net operating loss carryforwards of $22.2 million and $48.7 million at August 25, 2018 and August 26, 2017 , respectively. The Company also had state net operating loss carryforwards of $33.6 million and $52.1 million and foreign net operating losses of $14.7 million and $13.7 million at August 25, 2018 and August 26, 2017 , respectively. The federal net operating loss carryforwards will begin to expire in 2034, while state net operating loss carryforwards will begin to expire in 2021. During the fifty-two week period ended August 25, 2018 , there was a $1.0 million increase to the tax loss carryforwards in foreign jurisdictions. As the carryforwards were generated in jurisdictions where the Company has historically recognized book losses or does not have strong future earnings projections, the Company concluded it is more likely than not that the operating losses would not be realized, and thus maintained a full valuation allowance against the associated deferred tax assets. As of August 25, 2018 , the Company has recorded total valuation allowances of $4.2 million . The recognition of the incremental full valuation allowances results in a net zero impact to the Consolidated Statements of Operations and Comprehensive Income. As of August 25, 2018 , the Company has recorded valuation allowances of $4.2 million on deferred tax assets related to foreign net operating loss carryforwards. The majority of this amount represents a full valuation allowance on the deferred tax assets of foreign entities within the United Kingdom, Netherlands, and Spain. Of the valuation allowance on deferred tax assets, $0.6 million relates to state net operating losses. As of August 25, 2018 and August 26, 2017 , the Company has no unrecognized tax benefits. The Company records interest and penalties associated with unrecognized tax benefits as a component of tax expense. As of August 25, 2018 and August 26, 2017 , the Company has no t accrued interest or penalties on unrecognized tax benefits, as there is no position recorded as of the fiscal years. No changes to the uncertain tax position balance are anticipated within the next 12 months, and are not expected to materially impact the financial statements. As of August 25, 2018 , tax years 2013 to 2017 remain subject to examination in the United States and the tax years 2013 to 2017 remain subject to examination in other major foreign jurisdictions where Atkins conducts business. State income tax returns are generally subject to examination for a period of three to five years after the filing of the respective return. Tax Receivable Agreement Concurrent with the Business Combination, the Company entered into the TRA with the historical shareholders of Atkins. The TRA is valued based on the future expected payments under the terms of the agreement (see Note 3 , Business Combination ). As more fully described in the TRA, the TRA provides for the payment by Simply Good Foods to the Atkins’ selling equity holders for certain federal, state, local and non-U.S. tax benefits deemed realized in post-closing taxable periods by Simply Good Foods, Conyers Park, Atkins and Atkins’ eligible subsidiaries from the use of up to $100 million of the following tax attributes: (i) net operating losses available to be carried forward as of the closing of the Business Combination, (ii) certain deductions generated by the consummation of the business transaction and (iii) remaining depreciable tax basis from the 2003 acquisition of Atkins Nutritionals, Inc. In addition, Simply Good Foods will pay the Atkins selling equity holders for the use of 75% of alternative minimum tax credit carryforwards of up to $7.6 million . The TRA is contingent consideration and subsequent changes in fair value of the contingent liability are recognized in income from operations. The Company re-measured the TRA in the second quarter of 2018 due to the Tax Act. The second quarter assessment of these changes resulted in a provisional one-time gain of $4.7 million , recognized in Gain in fair value change of contingent consideration - TRA liability . As of August 25, 2018 , the estimated fair value of these contingent payments is $27.5 million , which has been recorded as a liability and represents 100% of the value of the recorded tax attributes. The TRA assumptions were re-measured for subsequent inputs based on the enacted tax rates under the Tax Act. The significant fair value inputs used to estimate the future expected TRA payments to Roark include the timing of tax payments due to the assessment of the Tax Act, a tax savings rate of approximately 29.2% following the enactment of the Tax Act, a discount rate of approximately 9% , book income projections, timing of expected adjustments to calculate taxable income and the projected rate of use for attributes defined in the TRA. The TRA fair value requires significant judgment and is classified as Level 3 in the fair value hierarchy. The fair value of the instrument may change upon assessment of the Tax Act. Estimating the amount of payments that may be made under the TRA is by its nature imprecise, insofar as the calculation of amounts payable depends on a variety of factors. The actual increase in tax basis and deductions, as well as the amount and timing of any payments under the TRA, will vary depending upon a number of factors, including: • The amount and timing of the Company’s income - The Company is required to pay 100% of the deemed benefits as and when deemed realized. As such, the Company is generally not required to make payments under the TRA until and unless a tax benefit is actually realized on a filed return. Without income against which specified TRA attributes are deductible, the benefit of such deduction is not deemed realized, resulting in no payment under the TRA. The utilization of such tax attributes and recognition of benefit against Company income will result in payments under the TRA. • The amount and timing of deductions - Similar to the above, the timing of the recognition of deductions and attributes included in the TRA will impact the ultimate timing of payments under the TRA. In turn, the fair value of the TRA payments will fluctuate over time; and • Future tax rates of jurisdictions in which the Company has tax liability, including the finalization of the assessment of the impact of the Tax Act. Payments made under the TRA are due within 90 to 125 days following the filing of the Company's U.S. federal and state income tax returns and require agreement between the Company and Roark. The current portion of the TRA liability are based on the tax returns that reflect activity for the taxable year ended August 26, 2017 . Payments under the TRA are based on the tax reporting positions that the Company determines. The term of the TRA generally will continue until all applicable tax benefit payments have been made under the agreement. As of August 25, 2018 , the un-discounted future expected payments under the TRA are as follows: (In thousands) Estimated future payments 2019 $ 2,346 2020 13,772 2021 13,026 2022 1,640 2023 227 2024 and thereafter 375 Total TRA liability $ 31,386 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Aug. 25, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases The Company has non-cancellable operating leases for six buildings. Rent expenses were $2.4 million for fifty-two week period ended August 25, 2018 , $0.3 million for the successor period from July 7, 2017 through August 26, 2017 , $1.7 million for the predecessor period from August 28, 2016 through July 6, 2017 and $2.3 million for the fifty-two week period ended August 27, 2016 . Future minimum payments under lease arrangements with a remaining term in excess of one year were as follows as of August 25, 2018 : (In thousands) Future Payments 2019 $ 2,424 2020 2,265 2021 1,673 2022 1,401 2023 820 Thereafter 2 Total $ 8,585 Litigation The Company is a party to certain litigation and claims that are considered normal to the operations of the business. Management is of the opinion that the outcome of these actions will not have a material adverse effect on the Company’s Consolidated Financial Statements. Tax Receivable Agreement Refer to Note 9 , Business Combination , for detail on the TRA, which was contingent consideration at the time of the Business Combination. Other The Company has entered into endorsement contracts with certain celebrity figures to promote and endorse the Atkins brand and line of products. These contracts contain endorsement fees, which are expensed ratably over the life of the contract, and performance fees, that are recognized at the time of achievement. Based on the terms of the contracts in place and achievement of performance conditions as of August 25, 2018 the Company will be required to make payments of $2.1 million over the next year. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Aug. 25, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Successor Stock The Company is authorized to issue 600,000,000 shares of common stock, par value $0.01 per share, of which 70,562,477 shares of Simply Good Foods were issued at the time of the Business Combination transaction and at August 26, 2017. The number of outstanding shares as of August 26, 2017 was previously reported within our Annual Report to be 70,628,322 due to the improper inclusion of 65,845 restricted stock units that were not outstanding shares of common stock at August 26, 2017. The disclosure of shares outstanding at August 26, 2017 has been updated in this report to reflect the actual number of shares outstanding. At August 25, 2018 , 70,605,675 shares of common stock were issued and outstanding. Successor Equity Warrants Prior to the Business Combination, Conyers Park issued 13,416,667 public warrants and 6,700,000 private placement warrants. Simply Good Foods assumed the Conyers Park equity warrants upon the change of control event. As a result of the Business Combination, the warrants issued by Conyers Park are no longer exercisable for shares of Conyers Park common stock, but instead are exercisable for common stock of Simply Good Foods. All other features of the warrants remain unchanged. Each whole warrant entitles the holder to purchase one share of the Company's common stock at a price of $11.50 per share. The public warrants became exercisable 30 days after the completion of the Business Combination and expire five years after that date, or earlier upon redemption or liquidation. The private warrants do not expire. The Company may call the public warrants for redemption, in whole and not in part, at a price of $0.01 per warrant upon not less than 30 days prior written notice of redemption to each warrant holder if the reported last sale price of the Company’s common stock equals or exceeds $18.00 per share for any 20 trading days within a 30 -trading day period ended three business days before the Company sends the notice of redemption to the warrant holders. Due to the exercise of 20,212 warrants during the fifty-two week period ended August 25, 2018 , the Company had 20,096,455 warrants outstanding as of August 25, 2018 . On October 4, 2018, the Company announced the redemption of its outstanding public warrants. As such, all warrants remaining outstanding after November 5, 2018 will be redeemed by the Company. Refer to Note 19 , Subsequent Events , for additional information regarding the redemption of the public warrants. Predecessor Warrant Liabilities of Atkins Atkins, the predecessor company, had outstanding warrants prior to the transaction forming Simply Good Foods. These warrants were settled as a part of the Business Combination. Refer to Note 3 , Business Combination , for additional details on the transaction. Historically, the value of the predecessor warrants were reflected as a liability and adjusted to fair value each reporting period through Change in warrant liabilities . The Company recorded a benefit of $0.7 million in the predecessor period from August 28, 2016 through July 6, 2017 and an expense of $0.7 million in the fifty-two week period ended August 27, 2016 in changes in warrant liabilities. The Company settled $15.0 million of warrant liabilities upon the change of control. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Aug. 25, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is based on the weighted average number of common shares issued and outstanding for the Successor period. Diluted earnings per share is based on the weighted average number of common shares issued and outstanding and the effect of all dilutive common stock equivalents outstanding during each period. The following table reconciles the numerators and denominators used in the computations of both basic and diluted earnings per share: 52-Weeks Ended From July 7, 2017 August 25, 2018 (In thousands, except share data) (Successor) (Successor) Basic earnings per share computation: Numerator: Net income available to common stock shareholders $ 70,455 $ 450 Denominator: Weighted average common shares - basic 70,582,149 70,562,477 Basic earnings per share from net income $ 1.00 $ 0.01 Diluted earnings per share computation: Numerator: Net income available to common stock shareholders $ 70,455 $ 450 Denominator: Weighted average common shares outstanding - basic 70,582,149 70,562,477 Warrant conversion 3,006,073 690,248 Employee stock options 43,779 — Restricted stock units 49,354 2,045 Weighted average common shares - diluted 73,681,355 71,254,770 Diluted earnings per share from net income $ 0.96 $ 0.01 Earnings per share calculations for the fifty-two week period ended August 25, 2018 and the successor period from July 7, 2017 through August 26, 2017 excluded 0.2 million and 2.6 million shares of stock options, respectively, that would have been anti-dilutive. |
Stock Option Plan
Stock Option Plan | 12 Months Ended |
Aug. 25, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Plan | Stock Option Plan Share-based compensation is recognized on a straight-line basis over the requisite service period of the award based on their grant-date fair value. The Company recorded $4.0 million of stock-based compensation expense during the fifty-two week successor period ended August 25, 2018 and $0.4 million of during the successor period from July 7, 2017 through August 26, 2017 . In July 2017, the Company's shareholders approved the 2017 Omnibus Incentive Plan (the “Incentive Plan”). The Incentive Plan provides for the issuance of a maximum of 9,067,917 shares of stock-denominated awards to directors, employees, officers and agents of the Company. As of August 25, 2018 , there were 6.4 million shares available for grant under the Incentive Plan. Stock Options Stock options granted under the Incentive Plan are granted at a price equal to or more than the fair value of common stock on the date the option is granted. Stock options under the Incentive Plan generally become exercisable ratably over three years from the date of grant and must be exercised within ten years from the date of grant. The following table summarizes stock option activity for the fifty-two week period ended August 25, 2018 : Shares Weighted average Weighted average remaining contractual life Aggregate intrinsic Outstanding as of August 26, 2017 2,577,692 $ 12.00 9.90 $ — Granted 280,247 14.47 Exercised (10,000 ) 12.00 Forfeited (341,856 ) 12.00 Outstanding as of August 25, 2018 2,506,083 $ 12.28 8.84 Vested and expected to vest as of August 25, 2018 2,506,083 $ 12.28 8.84 $ 14,293,484 Exercisable as of August 25, 2018 764,903 $ 12.00 8.50 $ 4,574,120 The following table summarized information about stock options outstanding at August 25, 2018 : Range of Exercise Prices Number Outstanding Weighted-Average Exercise Price Weighted-Average Remaining Life (Years) Number Exercisable Weighted-Average Exercise Price $ 12.00 - 12.99 2,293,236 $ 12.00 8.76 764,903 $ 12.00 $ 13.00 - 14.99 95,294 13.25 9.64 — — $ 15.00 - 16.99 99,854 16.75 9.89 — — $ 17.00 - 18.99 17,699 17.62 9.97 — — 2,506,083 $ 12.28 8.84 764,903 $ 12.00 The weighted average fair value of options granted during the fifty-two week period ended August 25, 2018 and for the successor period from July 7, 2017 through August 26, 2017 were $4.60 and $3.71 , respectively. No stock options were granted prior to the Business Combination. As such, there were no t any shares vested or exercisable for the successor period from July 7, 2017 through August 26, 2017 . The fair value of each option grant is estimated on the date of grant using the Black-Scholes Option Pricing Model based on the following assumptions: August 25, 2018 From July 7, 2017 Expected volatility 26.72% - 27.5% 27.5% Expected dividend yield —% —% Expected option term 6.0 years 6.0 years Risk-free rate of return 1.98% - 2.79% 1.98% Expected term is estimated using the simplified method, which takes into account vesting and contractual term. The simplified method is being used to calculate expected term instead of historical experience due to a lack of relevant historical data resulting from changes in option vesting schedules and changes in the pool of employees receiving option grants. Expected stock price volatility is based on a sampling of comparable publicly traded companies. The Company believes a sample of comparable publicly traded companies most closely models the nature of the business and stock price volatility. The risk-free rates are based on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent remaining term. Future annual dividends over the expected term are estimated to be nil . As of August 25, 2018 , $6.2 million of total unrecognized compensation cost related to stock option plans that will be recognized over a weighted average period of 2.0 years . During the fifty-two week period ended August 25, 2018 , the Company received $0.1 million in cash from stock option exercises. Restricted Stock Units Restricted stock units granted under the Incentive Plan are granted at a price equal to closing market price of our common stock on the date of grant. Restricted stock units under the Incentive Plan generally vest over three years. During the the successor period from July 7, 2017 through August 26, 2017 , the Company granted 65,845 units with a weighted-average market value of $12.00 each. Prior to vesting, restricted stock units have no voting rights. The following table summarized Restricted Stock Unit activity for the fifty-two week period ended August 25, 2018 : Units Weighted average Outstanding as of August 26, 2017 65,845 $ 12.00 Granted 72,679 12.10 Vested (19,920 ) 12.00 Forfeited (7,519 ) 12.00 Outstanding as of August 25, 2018 111,085 $ 12.06 As of August 25, 2018 , the Company had $0.5 million of total unrecognized compensation cost related to restricted stock unit awards that will be recognized over a weighted average period of 0.8 years . Predecessor In January 2011, the Board of Directors adopted the NCP-ATK Holdings, Inc. 2010 Stock Option Plan (the “Option Plan”). Under the terms of the Option Plan, nonqualified stock options were granted to employees, directors and consultants of the Company. An option certificate for each grant set forth the exercise price, vesting period, performance thresholds if applicable and other terms. Options with service conditions generally vested over a period of five years, and the Company recognized share-based compensation expense ratably over the vesting period. Options with performance conditions generally vested over five successive years, based on the achievement of certain annual financial targets. Options typically expired after ten years. During the fifty-two week period ended August 27, 2016, the Company made a significant modification of the Option Plan by removing the performance condition requirement for five employees. This modification resulted in an incremental compensation cost of approximately $0.7 million . The unvested portion of the stock options forfeited as of the change of control effective date and the vested portion of the stock options were required to be exercised within five calendar days following receipt by the option holder of written notice of the change in control. If not exercised, these vested stock options were canceled. The weighted average fair value of options granted during the predecessor period from August 28, 2016 through July 6, 2017 and for fifty-two week period ended August 27, 2016 were $261.80 and $261.80 , respectively. The fair value of each option grant is estimated on the date of grant using the Black-Scholes Option Pricing Model based on the following assumptions: From August 28, 2016 through July 6, 2017 August 27, 2016 Expected volatility 55% 55% Expected dividend yield —% —% Expected option term 5.1 - 6.5 years 5.1 - 6.5 years Risk-free rate of return 1.62 % - 1.74% 1.62 % - 1.74% The expected term of the options represents the estimated period of time until exercise and considers vesting schedules and expectations of future employee and director behavior. Expected stock price volatility is based on a sampling of comparable publicly traded companies. The Company believes this sector to most closely model the nature of its own business. The risk-free rates are based on the implied yield available on U.S. Treasury zero-coupon issues with an equivalent remaining term. A summary of the option activity under the plans for the predecessor company is as follows: From August 28, 2016 through July 6, 2017 August 27, 2016 Intrinsic value of options exercised $ 11,106 $ 326 Fair value of shares vested $ — $ 2,145 Tax benefit related to stock option expense $ 910 $ 595 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Aug. 25, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Successor Tax Receivable Agreement The TRA provides for the effective payment to the former equity holders of Atkins for cash savings, if any, in U.S. federal, state and local income tax, or franchise tax that is actually realized as a result of the Business Combination discussed in Note 9 , Income Taxes . Execution of the Merger Agreement In the first quarter of fiscal 2018, pursuant to the terms of the Merger Agreement, Simply Good Foods paid a working capital adjustment of $1.8 million to the former owners of Atkins, which resulted in an increase to the previously recognized goodwill. Predecessor Pursuant to an arrangement with the former majority stockholder of Atkins, the predecessor company was obligated to pay a management fee of the greater of $0.9 million or an amount equal to 2% of consolidated adjusted earnings before interest, tax, depreciation and amortization (EBITDA), as defined by the First Lien and Second Lien, which can be prorated upon a fiscal year-end change. Annual reimbursements for out-of-pocket expenses were limited to $0.2 million . For the predecessor period from August 28, 2016 through July 6, 2017 and the fifty-two week period ended August 27, 2016 the management fee expense was $1.2 million and $1.7 million , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Aug. 25, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table presents the changes in Accumulated other comprehensive loss : (In thousands) Total Balance as of August 27, 2016 $ (443 ) Foreign currency translation adjustment (Predecessor) (199 ) Elimination of accumulated other comprehensive loss (Predecessor) 642 Foreign currently translation adjustment (Successor) 19 Balance as of August 26, 2017 19 Foreign currency translation adjustment (817 ) Balance as of August 25, 2018 $ (798 ) |
Segment and Customer Informatio
Segment and Customer Information | 12 Months Ended |
Aug. 25, 2018 | |
Segment Reporting [Abstract] | |
Segment and Customer Information | Segment and Customer Information The Company has organized its operations into one operating segment that sells its branded nutritional foods and snacking products designed around the nutrition principles of the Atkins eating approach. The results of the operating segment are reviewed by the Company’s chief operating decision maker to make decisions about resource expenditures and assessing financial performance. This operating segment is therefore the Company’s only reportable segment. Reconciliations of the totals of reported segment revenues, profit or loss measurement, assets and other significant items reported by segment to the corresponding GAAP totals is not applicable to Atkins as it only has one reportable segment. The following is a summary of revenue from external customers by geographical location: 52-Weeks Ended From July 7, 2017 From August 28, 2016 through July 6, 2017 52-Weeks Ended August 25, 2018 August 27, 2016 (In thousands) (Successor) (Successor) (Predecessor) (Predecessor) Revenues from external customers North America $ 405,055 $ 52,373 $ 316,776 $ 399,922 International 26,374 3,961 23,061 27,936 Total $ 431,429 $ 56,334 $ 339,837 $ 427,858 The following is a summary long lived assets by geographical location: August 25, 2018 August 26, 2017 (In thousands) (Successor) (Successor) Long lived assets North America $ 2,547 $ 2,073 International 18 32 Total $ 2,565 $ 2,105 Revenues from transactions with external customers for each of Atkins’ products would be impracticable to disclose. Management does not view its business by product line. Significant Customers Credit risk for the Company was concentrated in the following customer who comprised more than 10% of the Company’s total sales for fifty-two week period ended August 25, 2018 , the successor period from July 7, 2017 through August 26, 2017 , the predecessor period from August 28, 2016 through July 6, 2017 and fifty-two week period ended August 27, 2016 : 52-Weeks Ended From July 7, 2017 From August 28, 2016 through July 6, 2017 52-Weeks Ended August 25, 2018 August 27, 2016 (Successor) (Successor) (Predecessor) (Predecessor) Customer 1 43 % 42 % 46 % 41 % At August 25, 2018 and August 26, 2017 , the Company had a single significant customer that accounted for the following amounts of the Company’s accounts receivable: August 25, 2018 August 26, 2017 (In thousands) (Successor) (Successor) Customer 1 $ 14,519 34 % $ 14,886 34 % No other customers of the Company accounted for more than 10% of sales during these periods. The Company generally does not require collateral from its customers and has not incurred any significant losses on uncollectible accounts receivable. |
Significant Agreement
Significant Agreement | 12 Months Ended |
Aug. 25, 2018 | |
Significant Agreement [Abstract] | |
Significant Agreement | Significant Agreement In July 2016, the Company entered into an Exclusive License Agreement (the “License Agreement”) with a co-manufacturer to use the Atkins name and licensed marks to develop, market, distribute and sell frozen food products. In accordance with and subject to terms and conditions of the License Agreement, Atkins will receive a minimum annual royalty payment of $ 4.0 million in the first year of the License Agreement and increasing annually 3% through the seventh year. Immediately following the initial seven year term, and only upon prior mutual written agreement of the parties, the License Agreement may renew for an additional consecutive seven year period. The License Agreement became effective on September 1, 2016 and all related royalty revenue is recorded in Net sales in the accompanying Consolidated Statement of Operations and Comprehensive Income. As discussed in Note 5 , Goodwill and Intangibles , the Company recorded a $22.0 million intangible asset for the License Agreement with a depreciable life of 14 years as a result of the Business Combination of Atkins discussed in Note 3 , Business Combination . |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Aug. 25, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | Unaudited Quarterly Financial Data Summarized quarterly financial data: 52-weeks ended 13-weeks ended 13-weeks ended 13-weeks ended 13-weeks ended (In thousands, except per share amounts) August 25, 2018 August 25, 2018 May 26, 2018 February 24, 2018 November 25, 2017 Net sales (1) $ 431,429 $ 108,262 $ 107,233 $ 109,347 $ 106,587 Gross profit $ 207,556 $ 53,258 $ 51,284 $ 50,257 $ 52,757 Income from operations $ 64,730 $ 14,859 $ 13,802 $ 16,783 $ 19,286 Net income $ 70,455 $ 11,706 $ 7,137 $ 41,394 $ 10,218 Earnings per share from net income: Basic $ 1.00 $ 0.17 $ 0.10 $ 0.59 $ 0.14 Diluted $ 0.96 $ 0.15 $ 0.10 $ 0.56 $ 0.14 _______________ (1) The Company has historically recognized revenue at the time of shipment to its customers; however, upon examination of certain contractual arrangements, and as a result of the practice of refunding customers for products damaged in-transit, the risks and rewards of ownership of the products transferred at customer receipt. Accordingly, the Company concluded it should have recognized revenue upon customer receipt. These errors, along with the errors in prior annual and quarterly periods for which revenue for sales-in-transit was not appropriately deferred, are not material to the financial statements. During the fourth quarter, the Company deferred all revenue for shipments in-transit to customers totaling $7.8 million in net sales, and $3.7 million in gross profit. The failure to defer revenues for sales-in-transit in the third quarter of 2018, resulted in an understatement of $8.2 million in net sales, and $4.0 million in gross profit, for shipments that were recorded in the third quarter that should have been deferred and recognized during the fourth quarter upon customer receipt. From July 7, 2017 From 13-weeks ended 13-weeks ended 13-weeks ended May 27, 2017 February 25, 2017 November 26, 2016 (In thousands, except per share amounts) (Successor) (Predecessor) (Predecessor) (Predecessor) (Predecessor) Net sales $ 56,334 $ 41,223 $ 96,503 $ 102,308 $ 99,803 Gross profit $ 20,393 $ 20,239 $ 43,570 $ 46,573 $ 48,712 Income from operations $ 1,859 $ (18,660 ) $ 10,628 $ 13,305 $ 18,460 Net income $ 450 $ (17,082 ) $ 4,347 $ 3,463 $ 6,787 Earnings per share from net income: Basic $ 0.01 Diluted $ 0.01 Earnings per common share amounts are computed independently for each of the quarters presented. Therefore, the sum of the quarterly earnings per share amounts may not equal the quarterly earnings per share amounts or the annual earnings per share amounts due to rounding. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Aug. 25, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Warrant Redemption and Exercises On October 4, 2018, the Company announced that it will redeem all of its public warrants to purchase common stock that remain outstanding immediately after 5:00 p.m., New York City time, on November 5, 2018 (the “Redemption Date”). Any public warrants that remain unexercised immediately after the Redemption Date will be redeemed at a redemption price of $0.01 per warrant. In addition, in accordance with the warrant agreement for the public warrants, the Company’s Board of Directors elected to require that all future exercises of the public warrants be exercised on a cashless basis. Accordingly, holders may no longer exercise public warrants in exchange for payment in cash of the $11.50 per share exercise price. Instead, a holder exercising a public warrant will be deemed to pay the $11.50 per share exercise price by the surrender of 0.61885 of a share of common stock that such holder would have been entitled to receive upon a cash exercise of each public warrant. Accordingly, by virtue of the cashless exercise of the public warrants, exercising holders of public warrants will receive 0.38115 of a share of the Company’s common stock for each public warrant surrendered for exercise. From August 26, 2018 through October 4, 2018, public warrants to purchase an aggregate of 9,886,451 shares of the Company’s common stock were exercised for cash at an exercise price of $11.50 per share, resulting in aggregate gross proceeds to the Company of approximately $113.5 million . The Company’s private warrants to purchase 6,700,000 shares of the Company’s common stock remain outstanding as of the date of this report. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Aug. 25, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Principles of Consolidation | Basis of Presentation The consolidated financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). The Company maintains its accounting records on a 52 / 53 -week fiscal year. The financial information presented within our consolidated financial statements has been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The accompanying financial statements include consolidated balance sheets for the successor entity for the periods ended August 25, 2018 and August 26, 2017 . The remaining financial statements include the successor fifty-two week period ended August 25, 2018 , the successor period from July 7, 2017 through August 26, 2017, the predecessor period from August 28, 2016 through July 6, 2017 and the predecessor fifty-two week period ended August 27, 2016. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany accounts and transactions have been eliminated. Unless the context otherwise requires, “we,” “us,” “our” and the “Company” refer to Atkins and its subsidiaries for periods prior to the completion of the Business Combination, and Simply Good Foods and its subsidiaries for periods upon or after the completion of the Business Combination. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Estimates also affect the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand, deposits available on demand and other short-term, highly liquid investments with original maturities of three months or less. Cash equivalents are carried at cost, which approximates fair value. |
Revenue Recognition | Revenue Recognition Revenue is recognized from the sale of product when (i) persuasive evidence of an arrangement exists, (ii) the price is fixed or determinable, (iii) title and risk of loss pass to the customer at the time of delivery and (iv) there is reasonable assurance of collection of the sales proceeds. The Company has a historical practice of refunding customers for products damaged in-transit. Generally, ownership of and title to the Company's finished products passes upon delivery to customers. As risks and rewards of ownership of the products transferrers upon receipt by the customer, revenue is recognized upon delivery to the customer's destination ("FOB Destination"). Revenue is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities. The Company generally allows customers to return product that is damaged at the time of delivery. Allowances for returns are recorded as a reduction to sales in the same period revenue is recognized. These allowances are estimated using historical experience. The Company offers trade promotions through various programs to customers and consumers. Trade promotions include discounts, rebates, slotting and other marketing activities. Trade promotions are recorded as a reduction to net sales with a corresponding reduction to accounts receivable at the later of the time the incentive is offered or at the time of revenue recognition for the underlying sale. The recognition of trade promotions requires management to make estimates regarding the volume of incentive that will be redeemed and their total cost. These estimates are made using various information including historical data on performance of similar trade promotional activities, as well as the Company's best estimate of current activity. The Company’s allowances for trade promotions are recorded as a reduction to both Accounts receivables and Net sales . As of August 25, 2018 and August 26, 2017 , Accounts receivable included trade promotions of $7.4 million and $7.8 million , respectively. Differences between estimated expense and actual redemptions are recognized as a change in management estimate in a subsequent period. These differences have historically been insignificant. |
Accounts Receivable | Accounts Receivable Accounts receivable consists primarily of trade receivables, net of allowances for doubtful accounts, returns and trade promotions. Our products are sold for cash or on credit terms. Our credit terms, which are established in accordance with local and industry practices, typically require payment within 30 days of delivery and may allow discounts for early payment. The Company estimates an allowance for doubtful accounts based upon a review of outstanding receivables, historical collection information and our analysis of customer data. Accounts receivable are written off when determined to be uncollectible. At August 25, 2018 and August 26, 2017 , the allowance for doubtful accounts was $0.7 million and $0.4 million , respectively. |
Inventory | Inventories Inventories are valued at the lower of cost or market on a first-in, first-out basis, adjusted for the value of inventory that is estimated to be excess, obsolete, expired or unsaleable. Obsolete inventory is reserved at 50% for inventory four to six months from expiration, and 100% for items within three months of expiration. Reserves are also taken for certain products or packaging materials when it is determined their cost may not be recoverable. At August 25, 2018 and August 26, 2017 , the provision for obsolete inventory was $0.5 million and $1.0 million , respectively. As a result of the Business Combination, Simply Good Foods recorded a one-time inventory fair value step-up of $6.0 million , as determined in accordance with FASB Accounting Standards Codification (“ASC”) 820, Fair Value Measurements (“ASC 820”). Refer to Note 3 , Business Combination , for additional information regarding the transaction. The one-time inventory fair value step-up impacts cost of goods sold of the successor period. |
Property and Equipment | Property and Equipment Property and equipment acquired in the Business Combination are stated at the allocated fair value in purchase accounting. Additions to property and equipment are recorded at cost and depreciated straight-line over their estimated useful lives. The general ranges of estimated useful lives are: Furniture and fixtures 7 years Computer equipment, software and website development costs 3 - 5 years Machinery and equipment 7 years Office equipment 3 - 5 years Leasehold improvements are amortized over the shorter of the remaining term of the lease or the useful life of the improvement utilizing the straight-line method. The Company capitalizes costs of materials and consultants involved in developing its website and mobile applications for smart phones (collectively, “website development costs”). Costs incurred during the preliminary project and post-implementation stages are charged to expense. Website development costs are amortized on a straight-line basis over an estimated useful life of three years. Included in Property and equipment are website development costs as follows: August 25, 2018 August 26, 2017 (In thousands) (Successor) (Successor) Website development costs, gross $ 1,746 $ 899 Amortization (755 ) (91 ) Website development costs, net $ 991 $ 808 Amortization of capitalized website development costs expensed were $0.7 million for fifty-two week period ended August 25, 2018 , $0.1 million for the successor period from July 7, 2017 through August 26, 2017 , $0.5 million for the predecessor period from August 28, 2016 through July 6, 2017 and $0.6 million for the fifty-two week period ended August 27, 2016 . There were no disposals of fully amortized website development costs during the fiscal period ending August 25, 2018 , the successor period from July 7, 2017 through August 26, 2017 , the predecessor period from August 28, 2016 through July 6, 2017 or the fiscal period ending August 27, 2016. The Company performs impairment tests when circumstances indicate that the carrying value of the asset may not be recoverable. There were no indicators of impairment in the fiscal period ending August 25, 2018 , the successor period from July 7, 2017 through August 26, 2017 , the predecessor period from August 28, 2016 through July 6, 2017 or the fiscal period ending August 27, 2016. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill and Intangible assets result primarily from the Business Combination, discussed in Note 3 , and acquisitions including the 2011 acquisition of the Company by Roark. Intangible assets primarily include brands and trademarks with indefinite lives and customer-related relationships with finite lives. Upon acquisition, the purchase price is first allocated to identifiable assets and liabilities, including customer-related intangible assets and trademarks, with any remaining purchase price recorded as Goodwill . Goodwill and indefinite-lived intangible assets are not amortized, but are tested for impairment on an annual basis, or more frequently if indicators of impairment are present. Our annual impairment tests are conducted at the beginning of the fourth quarter. Goodwill and indefinite-lived intangible assets are assessed using either a qualitative or a quantitative approach. The qualitative assessment evaluates factors including macro-economic conditions, industry and company-specific factors, legal and regulatory environments, and historical company performance are evaluated in assessing fair value. If we determine that it is more likely than not that the fair value of the reporting unit is less than its carrying value, a quantitative test is then performed. Otherwise, no further testing is required. When using a quantitative approach, we compare the fair value of the reporting unit to its carrying amount, including goodwill. If the estimated fair value of the reporting unit is less than the carrying amount of the reporting unit, impairment is indicated, requiring recognition of an impairment charge for the differential. Qualitative assessments of goodwill and indefinite-lived intangible assets were performed in 2018 , 2017 and 2016 . Based on the results of assessment, it was determined that it is more likely than not the reporting unit, brands and trademarks had a fair value in excess of carrying value. Accordingly, no further impairment testing was completed and no impairment charges related to goodwill or indefinite-lived intangibles were recognized during the fiscal periods ended August 25, 2018 , August 26, 2017 or August 27, 2016 . Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives. The Company reviews for impairment indicators of finite-lived intangibles and other long-lived assets as described in the “Property and Equipment” significant accounting policy. |
Deferred Financing Costs and Debt Discounts | Deferred Financing Costs and Debt Discounts Costs incurred in obtaining long-term financing paid to parties other than creditors are considered a debt discount and are amortized over the terms of the long-term financing agreements using the effective-interest method. Amounts paid to creditors are recorded as a reduction in the proceeds received by the creditor and are considered a discount on the issuance of debt. |
Income Taxes | Income Taxes Income taxes include federal, state and foreign taxes currently payable and deferred taxes arising from temporary differences between income for financial reporting and income tax purposes. Deferred tax assets and liabilities are determined based on the differences between the financial statement balances and the tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the fiscal year that includes the enactment date. Valuation allowances are established when necessary to reduce deferred tax assets to amounts expected to be realized. |
Foreign Currency Translations | Foreign Currency Translation For all foreign operations, the functional currency is the local currency. Assets and liabilities of these operations are translated into U.S. dollars using the exchange rate in effect at the end of each reporting period. Income statement accounts are translated at the average exchange rate prevailing during each reporting period. Translation adjustments are recorded as a component of Other comprehensive income (loss) . Gains or losses resulting from transactions in foreign currencies are included in Other income (expense) . |
Advertising Cost | Advertising Costs Production costs related to television commercials are expensed when first aired. All other advertising costs are expensed when incurred through Selling and Marketing . Total advertising costs were $34.0 million for the fifty-two week period ended August 25, 2018 , $3.8 million for the successor period from July 7, 2017 through August 26, 2017 , $26.6 million for the predecessor period from August 28, 2016 through July 6, 2017 and $27.7 million for the fifty-two week period ended August 27, 2016 . Production costs related to television commercials not yet aired are included in Prepaid expenses in the accompanying Consolidated Balance Sheets. Production costs included $1.2 million related to television commercials not yet aired at August 26, 2017 . There were no productions costs related to television commercials not yet aired at August 25, 2018 . |
Research and Development Expense | Research and Development Activities The Company’s research and development activities primarily consist of generating and testing new product concepts, new flavors and packaging. The Company expenses research and development costs as incurred related to compensation, facility costs, consulting and supplies. Research and development activities are primarily internal and associated costs are included in General and administrative . The Company’s total research and development expenses were $2.5 million for the fifty-two week period ended August 25, 2018 , $0.4 million for the successor period from July 7, 2017 through August 26, 2017, $1.9 million for the predecessor period from August 28, 2016 through July 6, 2017 and $2.1 million for the fifty-two week period ended August 27, 2016 . |
Share-based Compensation | Share-Based Compensation The Company uses share-based compensation, including stock options and restricted stock units, to provide long-term performance incentives for its employees and directors. Share-based compensation is recognized on a straight-line basis over the requisite service period of the award based on their grant-date fair value. Forfeitures are recognized as they occur. Share based compensation expense is included within the same financial statement caption where the recipient’s other compensation is reported. |
Defined Contribution Plan | Defined Contribution Plan The Company sponsors defined contribution plans to provide retirement benefits to its employees. The Company's 401(k) plan and similar plans for non-domestic employees are based on a portion of eligible pay up to a defined maximum. All matching contributions are made in cash. Expense associated with defined contribution plans was $0.4 million for the fifty-two week period ended August 25, 2018 , $0.0 million for the successor period from July 7, 2017 through August 26, 2017 , $0.3 million for the predecessor period from August 28, 2016 through July 6, 2017 and $0.3 million for the fifty-two week period ended August 27, 2016 . |
Shipping and Handling Costs | Shipping and Handling Costs Costs associated with shipping products to customers are recognized in Distribution . Costs of $19.7 million for the fifty-two week period ended August 25, 2018 , $2.8 million for the successor period from July 7, 2017 through August 26, 2017 , $15.0 million for the predecessor period from August 28, 2016 through July 6, 2017 and $18.5 million for the fifty-two week period ended August 27, 2016 were recorded relating to products shipped to customers. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers . The objective of ASU No. 2014-09 is to outline a new, single comprehensive model to use in accounting for revenue arising from contracts with customers. The new revenue recognition model provides a five-step analysis for determining when and how revenue is recognized, depicting the transfer of promised goods or services to customers in an amount that reflects the consideration that is expected to be received in exchange for those goods or services. On July 9, 2015, the FASB voted to delay the implementation of ASU No. 2014-09 by one year to fiscal years and interim periods within those years beginning after December 15, 2017. An entity may elect to early adopt as of the original effective date, fiscal years and interim periods within those years beginning after December 15, 2016. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing, which provides additional clarification regarding identifying performance obligations and licensing. In December 2016, the FASB issued ASU No. 2016-19, 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers . These ASUs will replace most existing revenue recognition guidance in GAAP and, due to the Business Combination, will be effective for the Company beginning in fiscal 2019. The standard permits the use of either the retrospective or modified retrospective (cumulative effect) transition method. The updated guidance requires companies to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company has concluded its assessment and will adopt the new standard in the first quarter of 2019 utilizing the modified retrospective transition method. The adoption of the ASU will not have a material impact on the Company's consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10). This new standard enhances the reporting model for financial instruments regarding certain aspects of recognition, measurement, presentation and disclosure. The provisions of this ASU are effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual periods. This ASU is to be applied using a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. This ASU is effective for the Company’s August 2019 fiscal year end. The Company does not anticipate adoption of this ASU will have a material impact to its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The new guidance is effective for the Company beginning in fiscal 2020. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the effects adoption of this guidance will have on its consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The new guidance is intended to eliminate diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The new standard is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted for all entities, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. This ASU is effective for the Company’s August 2019 fiscal year end. The Company does not anticipate adoption of this ASU will have a material impact on its consolidated statements of cash flows. In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and other (Topic 350): Simplifying the Test for Goodwill Impairment . The standard simplifies how an entity tests goodwill by eliminating Step 2 of the goodwill impairment test. The amended standard also modifies the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. The new guidance is effective for the Company beginning in fiscal 2020. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not anticipate adoption of this ASU to be material to its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805) , to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The provisions of this ASU provide a more robust framework to use in determining when a set of assets and activities is a business by clarifying the requirements related to inputs, processes and outputs. These provisions are to be applied prospectively and are effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual periods. This ASU is effective for the Company’s 2019 fiscal year end. The Company does not anticipate adoption of this ASU to be material to its consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. The amended standard specifies the modification accounting applicable to any entity which changes the terms or conditions of a share-based payment award. The new guidance is effective for all entities after December 2017. Early adoption is permitted. The Company does not anticipate adoption of this ASU to be material to its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) , which modifies disclosure requirements on fair value measurements of ASC 820. This ASU is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted including in any interim period for which financial statements have not yet been issued. Entities are permitted to early adopt the eliminated or modified disclosure requirements and delay the adoption new disclosure requirements until their effective date. The Company does not anticipate adoption of this ASU to be material to its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property and equipment, useful lives | The general ranges of estimated useful lives are: Furniture and fixtures 7 years Computer equipment, software and website development costs 3 - 5 years Machinery and equipment 7 years Office equipment 3 - 5 years |
Property and equipment | Included in Property and equipment are website development costs as follows: August 25, 2018 August 26, 2017 (In thousands) (Successor) (Successor) Website development costs, gross $ 1,746 $ 899 Amortization (755 ) (91 ) Website development costs, net $ 991 $ 808 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following summarizes the fair value of the Business Combination. (In thousands) Cash paid $ 673,763 Equity consideration paid to selling equity holders (a) 117,567 Total cash and equity consideration 791,330 TRA to selling equity holders 30,315 Total consideration $ 821,645 (a) Equity consideration paid is summarized below: (In thousands, except equity per share data) Shares of Simply Good Foods paid to former equity holders of Atkins 10,250 Fair value of SMPL equity per share based on the market price on the day of the close $ 11.47 Equity consideration paid $ 117,567 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The fair value is as follows: (In thousands) Assets acquired: Cash and cash equivalents $ 71,181 Accounts receivable, net 31,507 Inventories 33,023 Prepaid assets 1,781 Other current assets 13,466 Property and equipment, net 1,793 Intangible assets, net (1) 320,000 Other long-term assets 2,224 Liabilities assumed: Accounts payable (12,187 ) Other current liabilities (36,498 ) Deferred income taxes (2) (76,072 ) Total identifiable net assets 350,218 Goodwill (1)(3) 471,427 Total assets acquired and liabilities assumed $ 821,645 _______________ (1) Goodwill and intangible assets were recorded at fair value consistent with ASC 820 as a result of the Business Combination. Intangible assets consist of brands and trademarks, customer relationships, proprietary recipes and formulas, and licensing agreements. The useful lives of the intangible assets are disclosed in Note 5 , Goodwill and Intangibles . The fair value measurement of the assets and liabilities were based on significant inputs not observable in the market, and thus, represent Level 3 measurements within the fair value measurement hierarchy. Level 3 fair market values were determined using a variety of information, including estimated future cash flows, appraisals and market comparable data and companies. (2) As a result of the increase in the fair value of the intangible asset, the deferred income taxes were increased by $50.7 million . (3) Amounts recorded for goodwill are generally not expected to be deductible for tax purposes. |
Business Acquisition, Pro Forma Information | The following unaudited pro forma combined financial information presents combined results of Conyers Park and Atkins as if the Business Combination had occurred on August 30, 2015. 52-Weeks Ended 52-Weeks Ended (In thousands) August 26, 2017 August 27, 2016 Net sales $ 396,171 $ 369,039 Gross profit $ 186,221 $ 169,552 Net income $ 28,857 $ 21,288 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment, net , as presented with the Consolidated Balance Sheets, are summarized as follows: August 25, 2018 August 26, 2017 (In thousands) (Successor) (Successor) Furniture and fixtures $ 638 $ 69 Computer equipment and software 305 161 Machinery and equipment 233 289 Website development costs 1,746 899 Leasehold improvements 337 310 Construction in progress 507 525 Property and equipment, gross 3,766 2,253 Less: accumulated depreciation and amortization (1,201 ) (148 ) Property and equipment, net $ 2,565 $ 2,105 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table presents the changes in Goodwill : (In thousands) Total Balance as of August 27, 2016 (Predecessor) $ 40,724 Goodwill acquired during the predecessor period 13,546 Effect of exchange rate changes 137 Elimination of predecessor goodwill (54,407 ) Successor business combination 465,030 Balance as of August 26, 2017 (Successor) $ 465,030 Goodwill working capital adjustment 1,757 Measurement period adjustment of the Business Combination 4,640 Balance as of August 25, 2018 (Successor) $ 471,427 |
Schedule of Finite-Lived Intangible Assets | Intangible assets, net in our consolidated balance sheets consist of the following: Successor August 25, 2018 (In thousands) Useful life Gross carrying amount Accumulated amortization Net carrying amount Intangible assets with indefinite life: Brands and trademarks Indefinite life $ 232,000 $ — $ 232,000 Intangible assets with finite lives: Customer relationships 15 years 59,000 4,448 54,552 Proprietary recipes and formulas 7 years 7,000 1,131 5,869 Licensing agreements 14 years 22,000 1,778 20,222 $ 320,000 $ 7,357 $ 312,643 Successor August 26, 2017 (In thousands) Useful life Gross carrying amount Accumulated amortization Net carrying amount Intangible assets with indefinite life: Brands and trademarks Indefinite life $ 232,000 $ — $ 232,000 Intangible assets with finite lives: Customer relationships 15 years 59,000 515 58,485 Proprietary recipes and formulas 7 years 7,000 131 6,869 Licensing agreements 14 years 22,000 206 21,794 $ 320,000 $ 852 $ 319,148 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets, net in our consolidated balance sheets consist of the following: Successor August 25, 2018 (In thousands) Useful life Gross carrying amount Accumulated amortization Net carrying amount Intangible assets with indefinite life: Brands and trademarks Indefinite life $ 232,000 $ — $ 232,000 Intangible assets with finite lives: Customer relationships 15 years 59,000 4,448 54,552 Proprietary recipes and formulas 7 years 7,000 1,131 5,869 Licensing agreements 14 years 22,000 1,778 20,222 $ 320,000 $ 7,357 $ 312,643 Successor August 26, 2017 (In thousands) Useful life Gross carrying amount Accumulated amortization Net carrying amount Intangible assets with indefinite life: Brands and trademarks Indefinite life $ 232,000 $ — $ 232,000 Intangible assets with finite lives: Customer relationships 15 years 59,000 515 58,485 Proprietary recipes and formulas 7 years 7,000 131 6,869 Licensing agreements 14 years 22,000 206 21,794 $ 320,000 $ 852 $ 319,148 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future amortization for each of the next five fiscal years and thereafter is as follows: (In thousands) 2019 $ 6,505 2020 6,505 2021 6,505 2022 6,505 2023 6,505 Thereafter 48,118 Total $ 80,643 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Accrued expenses and other current liabilities were comprised of the following: August 25, 2018 August 26, 2017 (In thousands) (Successor) (Successor) Professional fees $ 1,473 $ 1,286 Accrued advertising allowances and claims 1,525 1,037 Accrued bonus 6,726 4,907 Freight accrual 1,318 875 Payroll-related accruals 1,004 842 Commissions 977 1,025 Income taxes payable 386 576 VAT payable 1,481 1,627 Other 985 2,867 Accrued expenses and other current liabilities $ 15,875 $ 15,042 |
Long-Term Debt and Line of Cr_2
Long-Term Debt and Line of Credit (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | At August 25, 2018 and August 26, 2017 , there were no amounts drawn against the Revolving Credit Facility. Long-term debt consists of the following: August 25, 2018 August 26, 2017 (In thousands) (Successor) (Successor) Term Loan $ 198,500 $ 200,000 Less: Deferred financing fees 6,917 7,910 Total debt 191,583 192,090 Less: Current maturities, net of deferred financing fees of $1.4 million at August 25, 2018 and $1.3 million at August 26, 2017, respectively 648 234 Long-term debt, net of deferred financing fees $ 190,935 $ 191,856 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis | August 25, 2018 are summarized as follows: Successor Level 1 Level 2 Level 3 Total Liabilities TRA liability $ — $ — $ 27,468 $ 27,468 The Company's liabilities measured at fair value as of August 26, 2017 are summarized as follows: Successor Level 1 Level 2 Level 3 Total Liabilities TRA liability $ — $ — $ 25,675 $ 25,675 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the federal statutory income tax rate to the effective income tax rate is as follows: 52-Weeks Ended From July 7, 2017 From August 28, 2016 through July 6, 2017 52-weeks ended August 25, 2018 August 27, 2016 (In thousands) (Successor) (Successor) (Predecessor) (Predecessor) Statutory income tax expense: 25.5 % 34.0 % 34.0 % 34.0 % State income tax expense, net of federal 3.1 1.7 21.0 3.9 Valuation allowance 0.6 5.2 (0.9 ) 2.2 Taxes on foreign income above (below) the U.S. tax 0.4 (3.3 ) (7.5 ) 0.5 Warrant liabilities — — (11.8 ) 1.4 Tax Cuts and Jobs Act (58.4 ) — — — Change in tax rate (4.0 ) — (4.2 ) 0.6 Non-deductible transaction costs — — 182.7 — TRA contingent consideration (1.5 ) — — — Other permanent items 1.6 1.6 6.0 0.2 Income tax (benefit) expense (32.7 )% 39.2 % 219.3 % 42.8 % |
Schedule of Undiscounted Future Expected Tax Receivable Agreement Payments | As of August 25, 2018 , the un-discounted future expected payments under the TRA are as follows: (In thousands) Estimated future payments 2019 $ 2,346 2020 13,772 2021 13,026 2022 1,640 2023 227 2024 and thereafter 375 Total TRA liability $ 31,386 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reconciles the numerators and denominators used in the computations of both basic and diluted earnings per share: 52-Weeks Ended From July 7, 2017 August 25, 2018 (In thousands, except share data) (Successor) (Successor) Basic earnings per share computation: Numerator: Net income available to common stock shareholders $ 70,455 $ 450 Denominator: Weighted average common shares - basic 70,582,149 70,562,477 Basic earnings per share from net income $ 1.00 $ 0.01 Diluted earnings per share computation: Numerator: Net income available to common stock shareholders $ 70,455 $ 450 Denominator: Weighted average common shares outstanding - basic 70,582,149 70,562,477 Warrant conversion 3,006,073 690,248 Employee stock options 43,779 — Restricted stock units 49,354 2,045 Weighted average common shares - diluted 73,681,355 71,254,770 Diluted earnings per share from net income $ 0.96 $ 0.01 |
Stock Option Plan (Tables)
Stock Option Plan (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation, Stock Options, Activity | The following table summarizes stock option activity for the fifty-two week period ended August 25, 2018 : Shares Weighted average Weighted average remaining contractual life Aggregate intrinsic Outstanding as of August 26, 2017 2,577,692 $ 12.00 9.90 $ — Granted 280,247 14.47 Exercised (10,000 ) 12.00 Forfeited (341,856 ) 12.00 Outstanding as of August 25, 2018 2,506,083 $ 12.28 8.84 Vested and expected to vest as of August 25, 2018 2,506,083 $ 12.28 8.84 $ 14,293,484 Exercisable as of August 25, 2018 764,903 $ 12.00 8.50 $ 4,574,120 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following table summarized Restricted Stock Unit activity for the fifty-two week period ended August 25, 2018 : Units Weighted average Outstanding as of August 26, 2017 65,845 $ 12.00 Granted 72,679 12.10 Vested (19,920 ) 12.00 Forfeited (7,519 ) 12.00 Outstanding as of August 25, 2018 111,085 $ 12.06 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | (In thousands) Total Balance as of August 27, 2016 $ (443 ) Foreign currency translation adjustment (Predecessor) (199 ) Elimination of accumulated other comprehensive loss (Predecessor) 642 Foreign currently translation adjustment (Successor) 19 Balance as of August 26, 2017 19 Foreign currency translation adjustment (817 ) Balance as of August 25, 2018 $ (798 ) |
Segment and Customer Informat_2
Segment and Customer Information (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | The following is a summary of revenue from external customers by geographical location: 52-Weeks Ended From July 7, 2017 From August 28, 2016 through July 6, 2017 52-Weeks Ended August 25, 2018 August 27, 2016 (In thousands) (Successor) (Successor) (Predecessor) (Predecessor) Revenues from external customers North America $ 405,055 $ 52,373 $ 316,776 $ 399,922 International 26,374 3,961 23,061 27,936 Total $ 431,429 $ 56,334 $ 339,837 $ 427,858 The following is a summary long lived assets by geographical location: August 25, 2018 August 26, 2017 (In thousands) (Successor) (Successor) Long lived assets North America $ 2,547 $ 2,073 International 18 32 Total $ 2,565 $ 2,105 |
Schedules of Concentration of Risk, by Risk Factor | Credit risk for the Company was concentrated in the following customer who comprised more than 10% of the Company’s total sales for fifty-two week period ended August 25, 2018 , the successor period from July 7, 2017 through August 26, 2017 , the predecessor period from August 28, 2016 through July 6, 2017 and fifty-two week period ended August 27, 2016 : 52-Weeks Ended From July 7, 2017 From August 28, 2016 through July 6, 2017 52-Weeks Ended August 25, 2018 August 27, 2016 (Successor) (Successor) (Predecessor) (Predecessor) Customer 1 43 % 42 % 46 % 41 % At August 25, 2018 and August 26, 2017 , the Company had a single significant customer that accounted for the following amounts of the Company’s accounts receivable: August 25, 2018 August 26, 2017 (In thousands) (Successor) (Successor) Customer 1 $ 14,519 34 % $ 14,886 34 % |
Unaudited Quarterly Financial_2
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Aug. 25, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Summarized quarterly financial data: 52-weeks ended 13-weeks ended 13-weeks ended 13-weeks ended 13-weeks ended (In thousands, except per share amounts) August 25, 2018 August 25, 2018 May 26, 2018 February 24, 2018 November 25, 2017 Net sales (1) $ 431,429 $ 108,262 $ 107,233 $ 109,347 $ 106,587 Gross profit $ 207,556 $ 53,258 $ 51,284 $ 50,257 $ 52,757 Income from operations $ 64,730 $ 14,859 $ 13,802 $ 16,783 $ 19,286 Net income $ 70,455 $ 11,706 $ 7,137 $ 41,394 $ 10,218 Earnings per share from net income: Basic $ 1.00 $ 0.17 $ 0.10 $ 0.59 $ 0.14 Diluted $ 0.96 $ 0.15 $ 0.10 $ 0.56 $ 0.14 _______________ (1) The Company has historically recognized revenue at the time of shipment to its customers; however, upon examination of certain contractual arrangements, and as a result of the practice of refunding customers for products damaged in-transit, the risks and rewards of ownership of the products transferred at customer receipt. Accordingly, the Company concluded it should have recognized revenue upon customer receipt. These errors, along with the errors in prior annual and quarterly periods for which revenue for sales-in-transit was not appropriately deferred, are not material to the financial statements. During the fourth quarter, the Company deferred all revenue for shipments in-transit to customers totaling $7.8 million in net sales, and $3.7 million in gross profit. The failure to defer revenues for sales-in-transit in the third quarter of 2018, resulted in an understatement of $8.2 million in net sales, and $4.0 million in gross profit, for shipments that were recorded in the third quarter that should have been deferred and recognized during the fourth quarter upon customer receipt. From July 7, 2017 From 13-weeks ended 13-weeks ended 13-weeks ended May 27, 2017 February 25, 2017 November 26, 2016 (In thousands, except per share amounts) (Successor) (Predecessor) (Predecessor) (Predecessor) (Predecessor) Net sales $ 56,334 $ 41,223 $ 96,503 $ 102,308 $ 99,803 Gross profit $ 20,393 $ 20,239 $ 43,570 $ 46,573 $ 48,712 Income from operations $ 1,859 $ (18,660 ) $ 10,628 $ 13,305 $ 18,460 Net income $ 450 $ (17,082 ) $ 4,347 $ 3,463 $ 6,787 Earnings per share from net income: Basic $ 0.01 Diluted $ 0.01 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Revenue and Accounts Receivable (Details) - USD ($) $ in Millions | Aug. 25, 2018 | Aug. 26, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Allowance for doubtful accounts | $ 0.7 | $ 0.4 |
Trade promotion allowance | $ 7.4 | $ 7.8 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Millions | Jul. 07, 2017 | Aug. 25, 2018 | Aug. 26, 2017 |
Inventory | |||
Reserve for inventory four to six months from expiration | 50.00% | ||
Reserve for inventory within three months of expiration | 100.00% | ||
Provision for obsolete inventory | $ 0.5 | $ 1 | |
Simply Good Foods | |||
Inventory | |||
Inventory fair value step-up | $ 6 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Thousands | 2 Months Ended | 10 Months Ended | 12 Months Ended | |
Aug. 26, 2017 | Jul. 06, 2017 | Aug. 25, 2018 | Aug. 27, 2016 | |
Property and equipment | ||||
Property and equipment, gross | $ 2,253 | $ 3,766 | ||
Amortization | (148) | (1,201) | ||
Property and equipment, net | 2,105 | 2,565 | ||
Furniture and fixtures | ||||
Property and equipment | ||||
Property and equipment, gross | 69 | $ 638 | ||
Estimated useful lives | 7 years | |||
Website development costs | ||||
Property and equipment | ||||
Property and equipment, gross | 899 | $ 1,746 | ||
Amortization | (91) | (755) | ||
Property and equipment, net | 808 | $ 991 | ||
Estimated useful lives | 3 years | |||
Amortization of capitalized website development | 100 | $ 700 | ||
Computer equipment, software and website development | ||||
Property and equipment | ||||
Property and equipment, gross | 161 | $ 305 | ||
Computer equipment, software and website development | Minimum | ||||
Property and equipment | ||||
Estimated useful lives | 3 years | |||
Computer equipment, software and website development | Maximum | ||||
Property and equipment | ||||
Estimated useful lives | 5 years | |||
Machinery and equipment | ||||
Property and equipment | ||||
Property and equipment, gross | $ 289 | $ 233 | ||
Estimated useful lives | 7 years | |||
Office equipment | Minimum | ||||
Property and equipment | ||||
Estimated useful lives | 3 years | |||
Office equipment | Maximum | ||||
Property and equipment | ||||
Estimated useful lives | 5 years | |||
Predecessor | Website development costs | ||||
Property and equipment | ||||
Amortization of capitalized website development | $ 500 | $ 600 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Expense (Details) - USD ($) $ in Thousands | 2 Months Ended | 10 Months Ended | 12 Months Ended | |
Aug. 26, 2017 | Jul. 06, 2017 | Aug. 25, 2018 | Aug. 27, 2016 | |
Entity Information | ||||
Advertising expense | $ 3,800 | $ 34,000 | ||
Production costs | 1,200 | 0 | ||
Research and development expenses | 400 | 2,500 | ||
Defined contribution plan expense | 0 | 400 | ||
Distribution | $ 2,784 | $ 19,685 | ||
Predecessor | ||||
Entity Information | ||||
Advertising expense | $ 26,600 | $ 27,700 | ||
Research and development expenses | 1,900 | 2,100 | ||
Defined contribution plan expense | 300 | 300 | ||
Distribution | $ 14,970 | $ 18,489 |
Business Combination - Acquisit
Business Combination - Acquisition of Atkins Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Jul. 07, 2017 | Aug. 26, 2017 | Jul. 06, 2017 | Aug. 25, 2018 | Aug. 27, 2016 |
Business Acquisition | |||||
Potential proceeds from private placement equity issuance | $ 97,000 | $ 0 | |||
TRA liability | 27,500 | ||||
Goodwill | 465,030 | 471,427 | |||
TRA liability | 25,675 | 27,468 | |||
Acquisition of Atkins | |||||
Business Acquisition | |||||
Cash held in trust account | $ 404,000 | ||||
Potential proceeds from private placement equity issuance | 100,000 | ||||
Cash on hand at Conyers Park | 200 | ||||
Payment for debt issuance costs related to the new tern loan | 8,100 | ||||
Cash paid in acquisition-related transaction costs | 12,400 | ||||
Cash paid to retire the predecessor long term debt | 284,000 | ||||
Goodwill working capital adjustment | $ 1,757 | ||||
Consideration amount | 821,645 | ||||
Cash paid | $ 673,763 | ||||
Shares issued at business combination (in shares) | 10,250 | ||||
Common stock value (in dollars per share) | $ 11.47 | ||||
Equity consideration at fair value | $ 117,567 | ||||
TRA liability | 25,700 | $ 30,315 | |||
Measurement period adjustment of the Business Combination | 4,600 | ||||
Goodwill | $ 471,427 | ||||
Percentage of the value of the recorded tax attributes | 100.00% | ||||
Acquisition of Atkins | Term Loan | |||||
Business Acquisition | |||||
Term loan debt | $ 200,000 | ||||
Acquisition of Atkins | IPO | |||||
Business Acquisition | |||||
Payment for equity issuance cost | 8,100 | ||||
Acquisition of Atkins | Private Placement | |||||
Business Acquisition | |||||
Payment for equity issuance cost | 3,000 | ||||
Predecessor | |||||
Business Acquisition | |||||
Potential proceeds from private placement equity issuance | $ 0 | $ 0 | |||
Goodwill | $ 40,724 | ||||
Predecessor | Acquisition of Atkins | |||||
Business Acquisition | |||||
Legal costs | 2,000 | ||||
Advisory fees | 8,600 | ||||
Contingent change-in-control bonuses | $ 13,800 |
Business Combination - Purchase
Business Combination - Purchase Price Consideration (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Jul. 07, 2017 | Aug. 25, 2018 | Aug. 26, 2017 |
Fair value of the Business Combination | |||
TRA to selling equity holders | $ 27,500 | ||
Liabilities assumed: | |||
Goodwill | $ 471,427 | $ 465,030 | |
Acquisition of Atkins | |||
Fair value of the Business Combination | |||
Cash paid | $ 673,763 | ||
Equity consideration paid to selling equity holders | 117,567 | ||
Total cash and equity consideration | 791,330 | ||
TRA to selling equity holders | 25,700 | $ 30,315 | |
Total consideration | $ 821,645 | ||
Equity consideration paid | |||
Shares of Simply Good Foods paid to former equity holders of Atkins | 10,250 | ||
Fair value of SMPL equity per share (in dollars per share) | $ 11.47 | ||
Equity consideration paid | $ 117,567 | ||
Assets acquired: | |||
Cash and cash equivalents | 71,181 | ||
Accounts receivable, net | 31,507 | ||
Inventories, net | 33,023 | ||
Prepaid expenses and other current assets | 1,781 | ||
Other current assets | 13,466 | ||
Property and equipment, net | 1,793 | ||
Intangible assets | 320,000 | ||
Other long-term assets | 2,224 | ||
Liabilities assumed: | |||
Accounts payable | (12,187) | ||
Other current liabilities | (36,498) | ||
Deferred income taxes | (76,072) | ||
Total identifiable net assets | 350,218 | ||
Goodwill | 471,427 | ||
Total purchase price | 821,645 | ||
Deferred income taxes, step-up | $ 50,700 |
Business Combination - Pro Form
Business Combination - Pro Forma Information (Details) - Acquisition of Atkins - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 26, 2017 | Aug. 27, 2016 | |
Business Acquisition | ||
Revenue | $ 396,171 | $ 369,039 |
Gross profit | 186,221 | 169,552 |
Net income | $ 28,857 | $ 21,288 |
Business Combination - Acquis_2
Business Combination - Acquisition of Wellness Foods (Details) - USD ($) $ in Thousands | Dec. 21, 2016 | Aug. 26, 2017 | Aug. 25, 2018 |
Business Acquisition | |||
Business transaction costs | $ 0 | $ 2,259 | |
Liabilities assumed: | |||
Goodwill | $ 465,030 | $ 471,427 | |
Wellness Foods, Inc. | |||
Business Acquisition | |||
Consideration paid | $ 20,117 | ||
Business transaction costs | 700 | ||
Intangible assets | $ 4,934 | ||
Finite-lived intangible assets, useful life | 15 years | ||
Finite-lived intangible assets | $ 800 | ||
Assets acquired: | |||
Cash and cash equivalents | 157 | ||
Accounts receivable, net | 1,200 | ||
Prepaid expenses and other current assets | 48 | ||
Inventories, net | 1,388 | ||
Property and equipment, net | 13 | ||
Intangible assets | 800 | ||
Liabilities assumed: | |||
Accounts payable | (687) | ||
Accrued expenses and other current liabilities | (342) | ||
Other taxes payable (VAT) | (2) | ||
Income taxes payable | (138) | ||
Total identifiable net assets | 6,571 | ||
Goodwill | 13,546 | ||
Total purchase price | $ 20,117 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 2 Months Ended | 10 Months Ended | 12 Months Ended | |
Aug. 26, 2017 | Jul. 06, 2017 | Aug. 25, 2018 | Aug. 27, 2016 | |
Property and Equipment | ||||
Property and equipment, gross | $ 2,253 | $ 3,766 | ||
Less: accumulated depreciation and amortization | (148) | (1,201) | ||
Property and equipment, net | 2,105 | 2,565 | ||
Depreciation and amortization | 100 | 1,200 | ||
Loss on disposal of property and equipment | 0 | 128 | ||
Furniture and fixtures | ||||
Property and Equipment | ||||
Property and equipment, gross | 69 | 638 | ||
Computer equipment and software | ||||
Property and Equipment | ||||
Property and equipment, gross | 161 | 305 | ||
Machinery and equipment | ||||
Property and Equipment | ||||
Property and equipment, gross | 289 | 233 | ||
Website development costs | ||||
Property and Equipment | ||||
Property and equipment, gross | 899 | 1,746 | ||
Less: accumulated depreciation and amortization | (91) | (755) | ||
Property and equipment, net | 808 | 991 | ||
Leasehold improvements | ||||
Property and Equipment | ||||
Property and equipment, gross | 310 | 337 | ||
Construction in progress | ||||
Property and Equipment | ||||
Property and equipment, gross | $ 525 | $ 507 | ||
Predecessor | ||||
Property and Equipment | ||||
Depreciation and amortization | $ 1,000 | $ 1,100 | ||
Loss on disposal of property and equipment | $ 0 | $ 0 |
Goodwill and Intangibles - Sche
Goodwill and Intangibles - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Aug. 25, 2018 | Aug. 26, 2017 | |
Goodwill | ||
Beginning Balance | $ 465,030 | |
Goodwill acquired during period | $ 465,030 | |
Effect of exchange rate changes | 137 | |
Elimination of predecessor goodwill | (54,407) | |
Measurement period adjustment of the Business Combination | 4,640 | |
Goodwill impairment charges | 0 | |
Ending Balance | $ 471,427 | 465,030 |
Predecessor | ||
Goodwill | ||
Beginning Balance | 40,724 | |
Goodwill acquired during period | $ 13,546 |
Goodwill and Intangibles - Sc_2
Goodwill and Intangibles - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 2 Months Ended | 10 Months Ended | 12 Months Ended | |
Aug. 26, 2017 | Jul. 06, 2017 | Aug. 25, 2018 | Aug. 27, 2016 | |
Intangible assets with indefinite life: | ||||
Amortization of Intangible Assets | $ 900 | $ 6,500 | ||
Intangible assets | ||||
Intangible assets, Gross carrying amount | 320,000 | 320,000 | ||
Accumulated amortization | (852) | (7,357) | ||
Finite-lived intangible assets, Net carrying amount | 80,643 | |||
Intangible assets, Net carrying amount | $ 319,148 | 312,643 | ||
Estimated future amortization expense | ||||
2,019 | 6,505 | |||
2,020 | 6,505 | |||
2,021 | 6,505 | |||
2,022 | 6,505 | |||
2,023 | 6,505 | |||
Thereafter | $ 48,118 | |||
Customer relationships | ||||
Intangible assets with indefinite life: | ||||
Useful life | 15 years | 15 years | ||
Intangible assets | ||||
Finite-lived intangible assets, Gross carrying amount | $ 59,000 | $ 59,000 | ||
Accumulated amortization | (515) | (4,448) | ||
Finite-lived intangible assets, Net carrying amount | $ 58,485 | $ 54,552 | ||
Proprietary recipes and formulas | ||||
Intangible assets with indefinite life: | ||||
Useful life | 7 years | 7 years | ||
Intangible assets | ||||
Finite-lived intangible assets, Gross carrying amount | $ 7,000 | $ 7,000 | ||
Accumulated amortization | (131) | (1,131) | ||
Finite-lived intangible assets, Net carrying amount | $ 6,869 | $ 5,869 | ||
Licensing agreements | ||||
Intangible assets with indefinite life: | ||||
Useful life | 14 years | 14 years | ||
Intangible assets | ||||
Finite-lived intangible assets, Gross carrying amount | $ 22,000 | $ 22,000 | ||
Accumulated amortization | (206) | (1,778) | ||
Finite-lived intangible assets, Net carrying amount | 21,794 | 20,222 | ||
Brands and trademarks | ||||
Intangible assets with indefinite life: | ||||
Indefinite-lived intangible assets | $ 232,000 | $ 232,000 | ||
Predecessor | ||||
Intangible assets with indefinite life: | ||||
Amortization of Intangible Assets | $ 8,500 | $ 9,100 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Aug. 25, 2018 | Aug. 26, 2017 |
Entity Information | ||
Professional fees | $ 1,473 | $ 1,286 |
Accrued advertising allowances and claims | 1,525 | 1,037 |
Accrued bonus | 6,726 | 4,907 |
Freight accrual | 1,318 | 875 |
Payroll-related accruals | 1,004 | 842 |
Commissions | 977 | 1,025 |
Income taxes payable | 386 | 576 |
VAT payable | 1,481 | 1,627 |
Other | 985 | 2,867 |
Accrued expenses and other current liabilities | $ 15,875 | $ 15,042 |
Long-Term Debt and Line of Cr_3
Long-Term Debt and Line of Credit - Narrative (Details) - Barclays Bank PLC and Other Parties - USD ($) $ in Millions | Mar. 16, 2018 | Jul. 07, 2017 | Aug. 25, 2018 | Aug. 26, 2017 |
Base Rate | ||||
Debt Instrument | ||||
Basis spread on variable rate | 0.50% | |||
Eurocurrency | ||||
Debt Instrument | ||||
Basis spread on variable rate | 1.00% | |||
LIBOR | ||||
Debt Instrument | ||||
Basis spread on variable rate | 4.00% | |||
Term Loan | ||||
Debt Instrument | ||||
Borrowing capacity | $ 200 | |||
Maturity period | 7 years | |||
Term Loan | Base Rate | ||||
Debt Instrument | ||||
Basis spread on variable rate | 2.50% | |||
Term Loan | Eurocurrency | ||||
Debt Instrument | ||||
Basis spread on variable rate | 3.00% | |||
Term Loan | LIBOR | ||||
Debt Instrument | ||||
Basis spread on variable rate | 3.50% | |||
Interest rate floor | 1.00% | |||
Revolving Credit Facility | ||||
Debt Instrument | ||||
Borrowing capacity | $ 75 | |||
Maturity period | 5 years | |||
Amounts drawn | $ 0 | |||
Net leverage ratio (equal to or less than) | 6.25 | |||
Net leverage ratio post reduction (equal to or less than) | 6 | |||
Percent of commitments (in excess of) | 30.00% | |||
Outstanding debt | $ 0 | $ 0 | ||
Revolving Credit Facility | Eurocurrency | ||||
Debt Instrument | ||||
Basis spread on variable rate | 2.00% | |||
Revolving Credit Facility | LIBOR | ||||
Debt Instrument | ||||
Basis spread on variable rate | 3.00% |
Long-Term Debt and Line of Cr_4
Long-Term Debt and Line of Credit - Schedule of Debt (Details) - USD ($) $ in Thousands | Aug. 25, 2018 | Aug. 26, 2017 |
Line of credit facility | ||
Term Loan | $ 198,500 | $ 200,000 |
Less: Deferred financing fees | 6,917 | 7,910 |
Total debt | 191,583 | 192,090 |
Less: Current maturities, net of deferred financing fees of $1.4 million at August 25, 2018 and $1.3 million at August 26, 2017, respectively | 648 | 234 |
Long-term debt, net of deferred financing fees | 190,935 | 191,856 |
Deferred financing fees, current | 1,400 | 1,300 |
Aggregate principal maturities | ||
2,019 | 2,000 | |
2,020 | 2,000 | |
2,021 | 2,000 | |
2,022 | 2,000 | |
2,023 | 2,000 | |
Thereafter | 188,500 | |
Total principle | $ 198,500 | $ 200,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 2 Months Ended | 6 Months Ended | 10 Months Ended | 12 Months Ended | ||
Aug. 26, 2017 | Feb. 24, 2018 | Jul. 06, 2017 | Aug. 25, 2018 | Aug. 27, 2016 | Jul. 07, 2017 | |
Liabilities | ||||||
TRA liability | $ 25,675 | $ 27,468 | ||||
Change in fair value of contingent consideration | 0 | $ 4,700 | (2,848) | |||
Warrants | ||||||
Change in warrant liabilities | 0 | 0 | ||||
Warrant liability settled in period | $ 15,000 | |||||
Level 1 | ||||||
Liabilities | ||||||
TRA liability | 0 | 0 | ||||
Level 2 | ||||||
Liabilities | ||||||
TRA liability | 0 | 0 | ||||
Level 3 | ||||||
Liabilities | ||||||
TRA liability | $ 25,675 | $ 27,468 | ||||
Predecessor | ||||||
Liabilities | ||||||
Change in fair value of contingent consideration | $ 0 | $ 0 | ||||
Warrants | ||||||
Change in warrant liabilities | $ (722) | $ 722 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | Jul. 07, 2017 | Aug. 26, 2017 | Feb. 24, 2018 | Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 |
Entity Information | ||||||
Provisional gain | $ 31,000 | |||||
Statutory income tax expense | 34.00% | 25.50% | ||||
Valuation allowance | $ (3,905) | $ (4,195) | $ (3,905) | |||
(Decrease) increase in valuation allowance | (300) | 400 | $ 400 | |||
Unrecognized tax benefits | 0 | |||||
Accrued interest or penalties on unrecognized tax benefits | 0 | |||||
Tax Receivable Agreement | ||||||
Gain in fair value change of contingent consideration - TRA liability | 0 | $ 4,700 | (2,848) | |||
TRA liability | $ 27,500 | |||||
Tax savings rate | 29.20% | |||||
Acquisition of Atkins | ||||||
Tax Receivable Agreement | ||||||
TRA contingent payment (up to) | $ 100,000 | |||||
Percent of alternative minimum tax credit carryforwards | 75.00% | |||||
Alternative minimum tax credit carryforwards (up to) | $ 7,600 | |||||
TRA liability | $ 25,700 | 30,315 | 30,315 | |||
Percent of the value of the recorded tax attributes | 100.00% | |||||
Imputed interest rate | 9.00% | |||||
Percent of the deemed benefits | 100.00% | |||||
Federal | ||||||
Entity Information | ||||||
Operating loss carryforwards | 48,700 | $ 22,200 | 48,700 | |||
State and local | ||||||
Entity Information | ||||||
Operating loss carryforwards | 52,100 | 33,600 | 52,100 | |||
Operating loss carryforwards, valuation allowance | 600 | |||||
Foreign | ||||||
Entity Information | ||||||
Operating loss carryforwards | $ 13,700 | 14,700 | $ 13,700 | |||
Increase in operating loss carryforward | $ 1,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax (Details) - USD ($) $ in Thousands | 2 Months Ended | 10 Months Ended | 12 Months Ended | |
Aug. 26, 2017 | Jul. 06, 2017 | Aug. 25, 2018 | Aug. 27, 2016 | |
Components of income before income taxes | ||||
Domestic | $ 78 | $ 49,748 | ||
Foreign | 662 | 3,343 | ||
Income before income taxes | 740 | 53,091 | ||
Current: | ||||
Federal | 414 | 2,584 | ||
State and local | 11 | 159 | ||
Foreign | 247 | 1,001 | ||
Total current | 672 | 3,744 | ||
Deferred: | ||||
Federal | (379) | (21,223) | ||
State and local | (3) | (26) | ||
Foreign | 0 | 141 | ||
Total deferred income tax expense (benefit) | (382) | (21,108) | ||
Income tax expense (benefit) | $ 290 | $ (17,364) | ||
Effective rate reconciliation | ||||
Statutory income tax expense | 34.00% | 25.50% | ||
State income tax expense, net of federal | 1.70% | 3.10% | ||
Valuation allowance | 5.20% | 0.60% | ||
Taxes on foreign income above (below) the U.S. tax | (3.30%) | 0.40% | ||
Warrant liabilities | 0.00% | 0.00% | ||
Change in tax rate | 0.00% | (58.40%) | ||
Change In State Tax Rate | 0.00% | (4.00%) | ||
Non-deductible transaction costs | 0.00% | 0.00% | ||
TRA contingent consideration | 0.00% | (1.50%) | ||
Other permanent items | 1.60% | 1.60% | ||
Income tax expense (benefit) | 39.20% | (32.70%) | ||
Predecessor | ||||
Components of income before income taxes | ||||
Domestic | $ (690) | $ 17,674 | ||
Foreign | 2,775 | (133) | ||
Income before income taxes | 2,085 | 17,541 | ||
Current: | ||||
Federal | 7,340 | 1,413 | ||
State and local | 415 | 135 | ||
Foreign | 695 | 454 | ||
Total current | 8,450 | 2,002 | ||
Deferred: | ||||
Federal | (4,172) | 4,796 | ||
State and local | 259 | 686 | ||
Foreign | 33 | 23 | ||
Total deferred income tax expense (benefit) | (3,880) | 5,505 | ||
Income tax expense (benefit) | $ 4,570 | $ 7,507 | ||
Effective rate reconciliation | ||||
Statutory income tax expense | 34.00% | 34.00% | ||
State income tax expense, net of federal | 21.00% | 3.90% | ||
Valuation allowance | (0.90%) | 2.20% | ||
Taxes on foreign income above (below) the U.S. tax | (7.50%) | 0.50% | ||
Warrant liabilities | (11.80%) | 1.40% | ||
Change in tax rate | 0.00% | 0.00% | ||
Change In State Tax Rate | (4.20%) | 0.60% | ||
Non-deductible transaction costs | 182.70% | 0.00% | ||
TRA contingent consideration | 0.00% | 0.00% | ||
Other permanent items | 6.00% | 0.20% | ||
Income tax expense (benefit) | 219.30% | 42.80% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Aug. 25, 2018 | Aug. 26, 2017 |
Deferred tax assets | ||
Accounts receivable allowances | $ 1,885 | $ 2,727 |
Inventories reserves | 107 | 322 |
Accrued expenses | 1,961 | 2,042 |
Net operating loss carryforwards | 10,150 | 22,122 |
Share based compensation | 975 | 154 |
Tax credit carryforwards | 10,066 | 7,976 |
Other | 1,051 | 882 |
Deferred tax assets | 26,195 | 36,225 |
Valuation allowance | (4,195) | (3,905) |
Deferred tax assets, net of valuation allowance | 22,000 | 32,320 |
Deferred tax liabilities | ||
Prepaid expense | (419) | (1,066) |
Excess tax over book depreciation | (77) | 38 |
Website development costs | (238) | (301) |
Intangible assets | (74,342) | (106,263) |
Other | (1,399) | (287) |
Deferred tax liabilities | 76,475 | 107,879 |
Net deferred tax liabilities | $ 54,475 | $ 75,559 |
Income Taxes - Schedule of Undi
Income Taxes - Schedule of Undiscounted Future Expected Tax Receivable Agreement Payments (Details) $ in Thousands | Aug. 25, 2018USD ($) |
Income Tax Disclosure [Abstract] | |
2,018 | $ 2,346 |
2,019 | 13,772 |
2,020 | 13,026 |
2,021 | 1,640 |
2,022 | 227 |
2023 and thereafter | 375 |
Estimated future payments | $ 31,386 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 2 Months Ended | 10 Months Ended | 12 Months Ended | |
Aug. 26, 2017USD ($) | Jul. 06, 2017USD ($) | Aug. 25, 2018USD ($)building | Aug. 27, 2016USD ($) | |
Entity Information | ||||
Number of buildings with non-cancelable operating leases | building | 6 | |||
Rent expense | $ 300 | $ 2,400 | ||
Celebrity endorsement payment obligation | 2,100 | |||
Future minimum payments under operating lease arrangements | ||||
2,019 | 2,424 | |||
2,020 | 2,265 | |||
2,021 | 1,673 | |||
2,022 | 1,401 | |||
2,023 | 820 | |||
Thereafter | 2 | |||
Total | $ 8,585 | |||
Predecessor | ||||
Entity Information | ||||
Rent expense | $ 1,700 | $ 2,300 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 10 Months Ended | 12 Months Ended | ||
Aug. 26, 2017 | Jul. 06, 2017 | Aug. 25, 2018 | Aug. 27, 2016 | Jul. 07, 2017 | |
Successor Stock | |||||
Common stock shares authorized (in shares) | 600,000,000 | 600,000,000 | |||
Common shares par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Common stock shares outstanding (in shares) | 70,562,477 | 70,605,675 | |||
Warrants converted to shares (in shares) | 20,212 | ||||
Common stock shares issued (in shares) | 70,562,477 | 70,605,675 | |||
Warrants | |||||
Warrants issued (in shares) | 20,096,455 | ||||
Other income (expense) included in changes in warrant liabilities | $ 0 | $ 0 | |||
Warrant liability settled in period | $ 15,000 | ||||
Common Stock | |||||
Successor Stock | |||||
Shares issued at business combination (in shares) | 70,562,477 | ||||
Scenario, Previously Reported | |||||
Successor Stock | |||||
Common stock shares outstanding (in shares) | 70,628,322 | ||||
Predecessor | |||||
Warrants | |||||
Other income (expense) included in changes in warrant liabilities | $ (722) | $ 722 | |||
Public Warrants | |||||
Warrants | |||||
Warrants issued (in shares) | 13,416,667 | ||||
Number of shares authorized to purchase per warrant (in shares) | 1 | ||||
Warrant price per share (in dollars per share) | $ 11.50 | ||||
Number of days after completion of business combination | 30 days | ||||
Warrant expiration period | 5 years | ||||
Warrant call price per share (in dollars per share) | $ 0.01 | ||||
Written notice of redemption period (not less than) | 30 days | ||||
Number of trading days within a 30-trading day period | 20 years | ||||
Trading day period | 30 days | ||||
Number of business days before notice of redemption | 3 days | ||||
Public Warrants | Common Stock | |||||
Warrants | |||||
Common stock price (equals or exceeds) (in dollars per share) | $ 18 | ||||
Private Placement Warrants | |||||
Warrants | |||||
Warrants issued (in shares) | 6,700,000 | ||||
Restricted Stock | |||||
Successor Stock | |||||
Non-vested shares of restricted stock units | 65,845 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||
Aug. 26, 2017 | Aug. 25, 2018 | May 26, 2018 | Feb. 24, 2018 | Nov. 25, 2017 | Aug. 25, 2018 | |
Numerator: | ||||||
Net income available to common stock shareholders | $ 450 | $ 11,706 | $ 7,137 | $ 41,394 | $ 10,218 | $ 70,455 |
Denominator: | ||||||
Weighted average common shares - basic (in shares) | 70,562,477 | 70,582,149 | ||||
Basic earnings per share from net income (in dollars per share) | $ 0.01 | $ 0.17 | $ 0.10 | $ 0.59 | $ 0.14 | $ 1 |
Numerator: | ||||||
Net income available to common stock shareholders | $ 450 | $ 11,706 | $ 7,137 | $ 41,394 | $ 10,218 | $ 70,455 |
Denominator: | ||||||
Weighted average common shares - basic (in shares) | 70,562,477 | 70,582,149 | ||||
Warrant conversion (in shares) | 690,248 | 3,006,073 | ||||
Weighted average common shares - diluted (in shares) | 71,254,770 | 73,681,355 | ||||
Diluted earnings per share from net income (in dollars per share) | $ 0.01 | $ 0.15 | $ 0.10 | $ 0.56 | $ 0.14 | $ 0.96 |
Antidilutive stock options excluded from computation of earnings per share | 2,600,000 | 200,000 | ||||
Employee stock options | ||||||
Denominator: | ||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 43,779 | ||||
Restricted stock units | ||||||
Denominator: | ||||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 2,045 | 49,354 |
Stock Option Plan (Details)
Stock Option Plan (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | |
Aug. 26, 2017 | Aug. 25, 2018 | Jul. 07, 2017 | |
Share-based Compensation | |||
Stock compensation expense | $ 412 | $ 4,029 | |
Incentive Plan | |||
Share-based Compensation | |||
Number of shares authorized | 9,067,917 | ||
Number of shares available for grant | 6,400,000 | ||
Employee stock options | |||
Share-based Compensation | |||
Exercisable (in shares) | 0 | 764,903 | |
Employee stock options | Incentive Plan | |||
Share-based Compensation | |||
Award vesting period | 3 years | ||
Expiration period | 10 years | ||
Restricted stock units | |||
Share-based Compensation | |||
Award vesting period | 3 years | ||
Granted in period (in shares) | 65,845 | 72,679 |
Stock Option Plan - Stock Optio
Stock Option Plan - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 10 Months Ended | 12 Months Ended | |
Aug. 26, 2017 | Jul. 06, 2017 | Aug. 25, 2018 | Aug. 27, 2016 | |
Additional disclosures | ||||
Proceeds from option exercises | $ 0 | $ 120 | ||
Predecessor | ||||
Additional disclosures | ||||
Proceeds from option exercises | $ 109 | $ 326 | ||
Employee stock options | ||||
Shares | ||||
Outstanding at beginning of period (in shares) | 2,577,692 | |||
Granted (in shares) | 280,247 | |||
Exercised (in shares) | (10,000) | |||
Forfeited (in shares) | (341,856) | |||
Outstanding at end of period (in shares) | 2,577,692 | 2,506,083 | ||
Vested or expected to vest (in shares) | 2,506,083 | |||
Exercisable (in shares) | 0 | 764,903 | ||
Weighted average exercise price | ||||
Outstanding at beginning of period (in dollars per share) | $ 12 | |||
Granted (in dollars per share) | 14.47 | |||
Exercised (in dollars per share) | 12 | |||
Forfeited (in dollars per share) | 12 | |||
Outstanding at end of period (in dollars per share) | $ 12 | 12.28 | ||
Vested or expected to vest (in dollars per share) | 12.28 | |||
Exercisable (in dollars per share) | $ 12 | |||
Weighted average remaining contractual life (if years) | ||||
Outstanding at end of period, contractual life | 9 years 10 months 24 days | 8 years 10 months 2 days | ||
Vested or expected to vest, contractual life | 8 years 10 months 2 days | |||
Exercisable, contractual life | 8 years 6 months | |||
Intrinsic value | ||||
Outstanding, intrinsic value | $ 0 | |||
Vested and expected to vest, intrinsic value | $ 4,574,120 | |||
Outstanding, intrinsic value | 14,293,484 | |||
Additional disclosures | ||||
Compensation not yet recognized | $ 6,200 | |||
Compensation cost not yet recognized, period for recognition | 1 year 11 months 19 days | |||
Proceeds from option exercises | $ 100 |
Stock Option Plan - Range of Ex
Stock Option Plan - Range of Exercise Prices (Details) | 12 Months Ended |
Aug. 25, 2018$ / sharesshares | |
Stock Options, Exercise Price Range | |
Number of outstanding options | shares | 2,506,083 |
Outstanding options, weighted average exercise price | $ 12.28 |
Outstanding options, weighted average remaining contractual term | 8 years 10 months 2 days |
Number of exercisable options | shares | 764,903 |
Exercisable options, weighted average exercise price | $ 12 |
Exercise Price Range from $12.00 to $12.99 | |
Stock Options, Exercise Price Range | |
Exercise price range, lower range limit | 12 |
Exercise price range, upper range limit | $ 12.99 |
Number of outstanding options | shares | 2,293,236 |
Outstanding options, weighted average exercise price | $ 12 |
Outstanding options, weighted average remaining contractual term | 8 years 9 months 3 days |
Number of exercisable options | shares | 764,903 |
Exercisable options, weighted average exercise price | $ 12 |
Exercise Price Range from $13.00 to $14.99 | |
Stock Options, Exercise Price Range | |
Exercise price range, lower range limit | 13 |
Exercise price range, upper range limit | $ 14.99 |
Number of outstanding options | shares | 95,294 |
Outstanding options, weighted average exercise price | $ 13.25 |
Outstanding options, weighted average remaining contractual term | 9 years 7 months 20 days |
Number of exercisable options | shares | 0 |
Exercisable options, weighted average exercise price | $ 0 |
Exercise Price Range from $15.00 to $16.99 | |
Stock Options, Exercise Price Range | |
Exercise price range, lower range limit | 15 |
Exercise price range, upper range limit | $ 16.99 |
Number of outstanding options | shares | 99,854 |
Outstanding options, weighted average exercise price | $ 16.75 |
Outstanding options, weighted average remaining contractual term | 9 years 10 months 20 days |
Number of exercisable options | shares | 0 |
Exercisable options, weighted average exercise price | $ 0 |
Exercise Price Range from $17.00 to $18.99 | |
Stock Options, Exercise Price Range | |
Exercise price range, lower range limit | 17 |
Exercise price range, upper range limit | $ 18.99 |
Number of outstanding options | shares | 17,699 |
Outstanding options, weighted average exercise price | $ 17.62 |
Outstanding options, weighted average remaining contractual term | 9 years 11 months 19 days |
Number of exercisable options | shares | 0 |
Exercisable options, weighted average exercise price | $ 0 |
Stock Option Plan - Fair Value
Stock Option Plan - Fair Value Assumptions (Details) - Employee stock options - USD ($) | 2 Months Ended | 12 Months Ended |
Aug. 26, 2017 | Aug. 25, 2018 | |
Share-based Compensation | ||
Expected volatility, minimum | 26.72% | |
Expected volatility, maximum | 27.50% | 27.50% |
Expected dividend rate | 0.00% | 0.00% |
Expected option term | 6 years | 6 years |
Risk-free rate of return, minimum | 1.98% | |
Risk-free rate of return, maximum | 1.98% | 2.79% |
Weighted average grant date fair value | $ 3.71 | $ 4.60 |
Expected dividend payments | $ 0 |
Stock Option Plan - Restricted
Stock Option Plan - Restricted Stock Unit Activity (Details) - Restricted stock units - USD ($) $ / shares in Units, $ in Millions | 2 Months Ended | 12 Months Ended |
Aug. 26, 2017 | Aug. 25, 2018 | |
Units | ||
Non-vested at beginning of period (in shares) | 65,845 | |
Granted in period (in shares) | 65,845 | 72,679 |
Vested in period (in shares) | (19,920) | |
Forfeited in period (in shares) | (7,519) | |
Non-vested at end of period (in shares) | 65,845 | 111,085 |
Weighted average grant-date fair value | ||
Non-vested at beginning of period (in dollars per share) | $ 12 | |
Granted (in dollars per share) | $ 12 | 12.10 |
Vested (in dollars per share) | 12 | |
Forfeited (in dollars per share) | 12 | |
Non-vested at end of period (in dollars per share) | $ 12 | $ 12.06 |
Compensation cost not yet recognized | $ 0.5 | |
Compensation cost not yet recognized, period for recognition | 9 months 18 days | |
Award vesting period | 3 years |
Stock Option Plan - Predecessor
Stock Option Plan - Predecessor Share-Based Compensation (Details) $ / shares in Units, $ in Thousands | 2 Months Ended | 10 Months Ended | 12 Months Ended | ||
Aug. 26, 2017$ / shares | Jul. 06, 2017USD ($)$ / shares | Aug. 25, 2018$ / shares | Aug. 26, 2017USD ($)$ / shares | Aug. 27, 2016USD ($)employee | |
Employee stock options | |||||
Share-based Compensation | |||||
Expected option term | 6 years | 6 years | |||
Weighted average grant date fair value | $ / shares | $ 3.71 | $ 4.60 | |||
Expected volatility, maximum | 27.50% | 27.50% | |||
Expected dividend rate | 0.00% | 0.00% | |||
Risk-free rate of return, minimum | 1.98% | ||||
Risk-free rate of return, maximum | 1.98% | 2.79% | |||
Predecessor | |||||
Share-based Compensation | |||||
Exercises in period, intrinsic value | $ 11,106 | $ 326 | |||
Vested in period, fair value | 0 | 2,145 | |||
Tax benefit related to stock option expense | $ 910 | $ 595 | |||
Predecessor | Option Plan | |||||
Share-based Compensation | |||||
Award vesting period | 5 years | ||||
Weighted average grant date fair value | $ / shares | $ 261.80 | $ 261.80 | |||
Expected volatility, maximum | 55.00% | 55.00% | |||
Expected dividend rate | 0.00% | 0.00% | |||
Risk-free rate of return, minimum | 1.62% | 1.62% | |||
Risk-free rate of return, maximum | 1.74% | 1.74% | |||
Predecessor | Option Plan | Minimum | |||||
Share-based Compensation | |||||
Expected option term | 5 years 1 month 6 days | 5 years 1 month 6 days | |||
Predecessor | Option Plan | Maximum | |||||
Share-based Compensation | |||||
Expected option term | 6 years 6 months | 6 years 6 months | |||
Predecessor | Option Plan | Performance Shares | |||||
Share-based Compensation | |||||
Award vesting period | 5 years | ||||
Plan modification, number of employees affected | employee | 5 | ||||
Plan modification, incremental compensation cost | $ 700 | ||||
Predecessor | Option Plan | Employee stock options | |||||
Share-based Compensation | |||||
Expiration period | 10 years |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | |
Management fee | |||
Related Party Transaction | |||
Management fee expense | $ 1.2 | ||
Predecessor | Former Majority Stockholder, Atkins | Majority Shareholder | Management fee | |||
Related Party Transaction | |||
Percent of consolidated adjusted earnings before interest | 2.00% | ||
Management fee expense | $ 1.7 | ||
Minimum | Predecessor | Former Majority Stockholder, Atkins | Majority Shareholder | Management fee | |||
Related Party Transaction | |||
Management fee minimum | $ 0.9 | ||
Maximum | Predecessor | Former Majority Stockholder, Atkins | Majority Shareholder | Out-of-pocket expenses | |||
Related Party Transaction | |||
Annual reimbursements for out-of-pocket expenses maximum | $ 0.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 2 Months Ended | 10 Months Ended | 12 Months Ended | ||
Aug. 26, 2017 | Jul. 06, 2017 | Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | |
Changes in other comprehensive loss | |||||
Balance | $ 597,821 | $ 598,702 | |||
Foreign currency translation adjustment | 19 | (817) | |||
Balance | 598,702 | $ 597,821 | 672,601 | $ 598,702 | |
Predecessor | |||||
Changes in other comprehensive loss | |||||
Balance | (28,027) | (27,834) | (27,834) | $ (41,322) | |
Foreign currency translation adjustment | (199) | 621 | |||
Balance | (28,027) | (27,834) | |||
Total | Predecessor | |||||
Changes in other comprehensive loss | |||||
Balance | $ (443) | (443) | |||
Foreign currency translation adjustment | (199) | ||||
Elimination of accumulated other comprehensive loss (predecessor) | 642 | ||||
Foreign currency translation adjustments (Successor) | (817) | ||||
Balance | (798) | $ (443) | |||
Total | Successor | |||||
Changes in other comprehensive loss | |||||
Balance | $ 19 | ||||
Foreign currency translation adjustments (Successor) | 19 | ||||
Balance | $ 19 | $ 19 |
Segment and Customer Informat_3
Segment and Customer Information (Details) | 12 Months Ended |
Aug. 25, 2018segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment and Customer Informat_4
Segment and Customer Information - Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 10 Months Ended | 12 Months Ended | |||||||
Jul. 06, 2017 | Aug. 26, 2017 | Aug. 25, 2018 | May 26, 2018 | Feb. 24, 2018 | Nov. 25, 2017 | May 27, 2017 | Feb. 25, 2017 | Nov. 26, 2016 | Jul. 06, 2017 | Aug. 25, 2018 | Aug. 27, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net sales | $ 56,334 | $ 108,262 | $ 107,233 | $ 109,347 | $ 106,587 | $ 431,429 | ||||||
Long lived assets | 2,105 | 2,565 | 2,565 | |||||||||
North America | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net sales | 52,373 | 405,055 | ||||||||||
Long lived assets | 2,073 | 2,547 | 2,547 | |||||||||
International | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net sales | 3,961 | 26,374 | ||||||||||
Long lived assets | $ 32 | $ 18 | $ 18 | |||||||||
Predecessor | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net sales | $ 41,223 | $ 96,503 | $ 102,308 | $ 99,803 | $ 339,837 | $ 427,858 | ||||||
Predecessor | North America | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net sales | 316,776 | 399,922 | ||||||||||
Predecessor | International | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net sales | $ 23,061 | $ 27,936 |
Segment and Customer Informat_5
Segment and Customer Information - Schedules of Concentration of Risk, by Risk Factor (Details) - USD ($) $ in Thousands | 2 Months Ended | 10 Months Ended | 12 Months Ended | ||
Aug. 26, 2017 | Jul. 06, 2017 | Aug. 25, 2018 | Aug. 26, 2017 | Aug. 27, 2016 | |
Concentration Risk [Line Items] | |||||
Accounts receivable, net | $ 37,181 | $ 36,622 | $ 37,181 | ||
Customer 1 | Customer Concentration Risk | Sales Revenue, Net | |||||
Concentration Risk [Line Items] | |||||
Risk percentage | 42.00% | 43.00% | |||
Customer 1 | Customer Concentration Risk | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Risk percentage | 34.00% | 34.00% | |||
Accounts receivable, net | $ 14,886 | $ 14,519 | $ 14,886 | ||
Customer 1 | Predecessor | Customer Concentration Risk | Sales Revenue, Net | |||||
Concentration Risk [Line Items] | |||||
Risk percentage | 46.00% | 41.00% |
Significant Agreement (Details)
Significant Agreement (Details) - USD ($) $ in Thousands | Jul. 07, 2017 | Sep. 01, 2016 | Aug. 26, 2017 | Aug. 25, 2018 |
Business Acquisition | ||||
Minimum royalty payment | $ 4,000 | |||
Annual increase in royalty percent | 3.00% | |||
Royalty term | 7 years | |||
Royalty term potential extension period | 7 years | |||
Licensing agreements | ||||
Business Acquisition | ||||
Intangible assets | $ 22,000 | $ 22,000 | ||
Depreciable life | 14 years | 14 years | ||
Licensing agreements | Acquisition of Atkins | ||||
Business Acquisition | ||||
Intangible assets | $ 22,000 | |||
Depreciable life | 14 years |
Unaudited Quarterly Financial_3
Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 10 Months Ended | 12 Months Ended | |||||||
Jul. 06, 2017 | Aug. 26, 2017 | Aug. 25, 2018 | May 26, 2018 | Feb. 24, 2018 | Nov. 25, 2017 | May 27, 2017 | Feb. 25, 2017 | Nov. 26, 2016 | Jul. 06, 2017 | Aug. 25, 2018 | Aug. 27, 2016 | |
Entity Information | ||||||||||||
Net sales | $ 56,334 | $ 108,262 | $ 107,233 | $ 109,347 | $ 106,587 | $ 431,429 | ||||||
Gross profit | 20,393 | 53,258 | 51,284 | 50,257 | 52,757 | 207,556 | ||||||
Income from operations | 1,859 | 14,859 | 13,802 | 16,783 | 19,286 | 64,730 | ||||||
Net income | $ 450 | $ 11,706 | $ 7,137 | $ 41,394 | $ 10,218 | $ 70,455 | ||||||
Earnings per share from net income: | ||||||||||||
Basic (in dollars per share) | $ 0.01 | $ 0.17 | $ 0.10 | $ 0.59 | $ 0.14 | $ 1 | ||||||
Diluted (in dollars per share) | $ 0.01 | $ 0.15 | $ 0.10 | $ 0.56 | $ 0.14 | $ 0.96 | ||||||
Predecessor | ||||||||||||
Entity Information | ||||||||||||
Net sales | $ 41,223 | $ 96,503 | $ 102,308 | $ 99,803 | $ 339,837 | $ 427,858 | ||||||
Gross profit | 20,239 | 43,570 | 46,573 | 48,712 | 159,839 | 179,394 | ||||||
Income from operations | (18,660) | 10,628 | 13,305 | 18,460 | 23,733 | 45,959 | ||||||
Net income | $ (17,082) | $ 4,347 | $ 3,463 | $ 6,787 | $ (2,485) | $ 10,034 | ||||||
Sales in transit | Net sales | ||||||||||||
Entity Information | ||||||||||||
Net sales | $ 7,800 | $ 8,200 | ||||||||||
Sales in transit | Gross profit | ||||||||||||
Entity Information | ||||||||||||
Gross profit | $ 3,700 | $ 4,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 05, 2018 | Aug. 26, 2017 | Aug. 25, 2018 | Jul. 06, 2017 |
Subsequent Event [Line Items] | ||||
Proceeds from warrant exercises | $ 0 | $ 232 | ||
Warrants outstanding | 20,096,455 | |||
Public Warrants | ||||
Subsequent Event [Line Items] | ||||
Warrant price per share (in dollars per share) | $ 11.50 | |||
Warrants outstanding | 13,416,667 | |||
Public Warrants | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Redemption date | Nov. 5, 2018 | |||
Redemption price per share | $ 0.01 | |||
Warrant price per share (in dollars per share) | $ 11.50 | |||
Common shares surrender upon cashless exercise | 0.61885 | |||
Common shares received upon cashless exercise | 0.38115 | |||
Warrants exercised prior to redemption (in shares) | 9,886,451 | |||
Proceeds from warrant exercises | $ 113,500 | |||
Private Placement Warrants | ||||
Subsequent Event [Line Items] | ||||
Warrants outstanding | 6,700,000 | |||
Private Placement Warrants | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Warrants outstanding | 6,700,000 |