Related Party Transactions (Notes)

6 Months Ended

Mar. 31, 2024

Related Party Transactions [Abstract]

Related party transactions

RELATED PARTY TRANSACTIONS

Transactions between the Company and Post Holdings, Inc. (“Post”) are considered related party transactions as certain of the Company’s directors serve as officers or directors of Post.

MSA Fees and Royalties

The Company uses certain functions and services performed by Post under a master services agreement (the “MSA”). These functions and services include finance, internal audit, treasury, information technology support, insurance and tax matters, the use of office and/or data center space, payroll processing services and tax compliance services. MSA fees were $0.8 and $1.7 during the three and six months ended March 31, 2024, respectively, and $1.0 and $2.3 during the three and six months ended March 31, 2023, respectively. MSA fees were reported in “Selling, general and administrative expenses” in the Condensed Consolidated Statements of Operations.

The Company licenses certain intellectual property to and from Post and its subsidiaries based upon prices governed by agreements between the Company and Post and its subsidiaries, consistent with prices of similar arm's-length transactions. During both the three and six months ended March 31, 2024 and 2023, royalties paid to and received from Post and its subsidiaries were immaterial.

Co-Packing Agreement

On September 30, 2022, Premier Nutrition Company, LLC (“Premier Nutrition”), a subsidiary of the Company, entered into a co-packing agreement with Comet Processing, Inc. (“Comet”), a wholly-owned subsidiary of Post (the “Co-Packing Agreement”). Under the Co-Packing Agreement, Premier Nutrition procures certain packaging materials for Comet that Comet utilizes in the production of RTD shakes for Premier Nutrition. In December 2023, in accordance with the terms of the Co-Packing Agreement, Comet began manufacturing RTD shakes for Premier Nutrition.

During both the three and six months ended March 31, 2024, purchases of RTD shakes manufactured by Comet were $1.9. There were no purchases of RTD shakes manufactured by Comet during fiscal 2023. In addition, Premier Nutrition incurred $1.0 during the six months ended March 31, 2024 related to start-up costs that are reimbursable to Comet from Premier Nutrition pursuant to the Co-Packing Agreement. No reimbursable start-up costs were incurred by Premier Nutrition during the three months ended March 31, 2024 or the three and six months ended March 31, 2023.

As of March 31, 2024 and September 30, 2023, the Company had current payables with Post of $1.5 and $2.5, respectively, related to RTD shake purchases, MSA fees and reimbursable start-up costs, which were included in “Accounts payable” on the Condensed Consolidated Balance Sheets. Current receivables with Post at both March 31, 2024 and September 30, 2023 were immaterial.