Business Combination (Tables)

9 Months Ended

May 30, 2020

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

The following table sets forth the preliminary purchase price allocation of the Acquisition of Quest to the estimated fair value of the net assets acquired at the date of acquisition, subject to finalization per the terms of the Purchase Agreement. The preliminary purchase price allocation may be adjusted as a result of the finalization of our purchase price allocation procedures related to the assets acquired and liabilities assumed. The preliminary November 7, 2019 fair value is as follows:



(In thousands)
Assets acquired:
Cash and cash equivalents	$	4,745
Accounts receivable, net	26,537
Inventories	44,032
Prepaid assets	1,214
Other current assets	3,821
Property and equipment, net⁽¹⁾	10,363
Intangible assets, net⁽²⁾	848,375
Other long-term assets	20,997
Liabilities assumed:
Accounts payable	25,200
Other current liabilities	11,237
Deferred income taxes⁽³⁾	14,158
Other long-term liabilities	18,891
Total identifiable net assets	890,598
Goodwill⁽⁴⁾	96,231
Total assets acquired and liabilities assumed	$	986,829

Business Combination, Revenues of Acquired Entity

The results of Quest's operations have been included in the Simply Good Foods' Consolidated Financial Statements since November 7, 2019, the date of acquisition. The following table provides net sales from the acquired Quest business included in the Company's results:



	Thirteen Weeks Ended		Thirty-Nine Weeks Ended
	May 30, 2020		May 30, 2020
Net sales	$	87,234	$	192,621

Business Acquisition, Pro Forma Information [Table Text Block]

The following unaudited pro forma combined financial information presents combined results of the Company and Quest as if the Acquisition of Quest has occurred at the beginning of fiscal 2019:



	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	May 30, 2020		May 25, 2019		May 30, 2020		May 25, 2019
Revenue	$	215,101	$	212,885	$	662,758	$	605,632
Gross profit	$	88,626	$	81,451	$	267,293	$	218,399
Net income (loss)	$	15,337	$	10,925	$	46,034	$	3,679