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Acquisitions | 12 Months Ended
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Nov. 27, 2022
Business Combinations [Abstract] |
Acquisitions | ACQUISITIONS Beyond Yoga® Acquisition In the fourth quarter of fiscal 2021, the Company completed the acquisition of Beyond Yoga®, a body positive, premium athleisure apparel brand focused on quality, fit and comfort for all shapes and sizes. The acquisition was for 100% ownership of the entity and funded entirely by cash on hand. The results of operations, financial position and cash flows of Beyond Yoga® have been included in the Company's financial statements from the date of acquisition. The Company accounted for the acquisition following FASB ASC Topic 805, Business Combinations, and the related assets acquired, and liabilities assumed were recorded at fair value on the acquisition date. The aggregate purchase price was allocated to the major categories of assets acquired and liabilities assumed based upon their respective fair values at the acquisition date and the difference between the purchase price and fair value recorded was recorded as goodwill. The following table summarizes the fair values of the Beyond Yoga® assets acquired and liabilities assumed at the date of acquisition:
| September 21, 2021
| (Dollars in millions)
Cash | $ | 1.5 |
Accounts receivable | 5.0 |
Inventory(1) | 18.7 |
Prepaid expenses and other current assets | 0.5 |
Property, plant and equipment | 0.7 |
Operating lease right-of-use assets | 5.9 |
Goodwill | 123.7 |
Intangible assets | 245.5 |
Other non-current assets | 0.5 |
Total assets acquired | 402.0 |
Accounts payable | 4.3 |
Other accrued liabilities | 2.2 |
Operating lease liabilities | 5.9 |
Total liabilities assumed | 12.4 |
Net assets acquired | $ | 389.6 |
_____________ (1)Includes $5.9 million of inventory markup above historical carrying value. The goodwill is attributable to the Company's ability to expand the Beyond Yoga® brand to more consumers through direct-to-consumer expansion, including brick-and-mortar retail, gender and category growth, and further development of the wholesale footprint with premium partners. All of the goodwill will be deductible for tax purposes. The Company assigned a fair value to and estimated useful lives for intangible assets acquired as part of the Beyond Yoga® acquisition. The fair value of the separately identifiable intangible assets, and their estimated useful lives as of the acquisition date were as follows:
| Estimated Fair Value |  | Weighted Average Estimated Useful Life (years)
| (Dollars in millions)
Intangible Assets: |  |  |
Trademark | $ | 216.0 |  |  | Indefinite
Customer Relationships | 29.5 |  |  | 8.2 years
Total | $ | 245.5 |  |  |
The Beyond Yoga® trademark, which is estimated to have an indefinite life, has been valued at $216.0 million using the relief-from-royalty method. The relief-from-royalty method requires the use of significant estimates and assumptions, including projected future revenues, a hypothetical royalty rate, the expected economic life of the asset, tax rates and a discount rate that reflects the level of risk associated with the future earnings attributable to the asset. The Company has not disclosed pro forma information of the combined business as the transaction is not material to revenue or net income. In connection with the acquisition, the Company recognized certain acquisition-related expenses which are expensed as incurred. These expenses are recognized within SG&A expenses in the Company's consolidated statements of operations and include the following amounts: •transaction and integration costs, including fees for advisory and professional services incurred as part of the acquisition and integration costs subsequent to the acquisition; and •acquisition-related compensation, including amounts due to sellers that are contingent upon continuing employment. The following table summarizes the acquisition-related expenses recognized during fiscal year 2022 and 2021:
| November 27, 2022 |  | November 28, 2021
| (Dollars in millions)
Acquisition-related expenses: |  |  |
Transaction and integration costs | $ | 0.8 |  |  | $ | 2.8 |
Acquisition-related compensation | 5.0 |  |  | 1.0 |
Total | $ | 5.8 |  |  | $ | 3.8 |
In connection with the acquisition, $15.0 million of consideration was deferred up to three years from the acquisition date, subject to the continued employment of certain continuing Beyond Yoga® employees through various vesting dates. The acquisition-related compensation is expensed over the vesting periods as service is provided, and consists of cash payments, which are included within "accrued salaries, wages and employee benefits" within the Company's consolidated balance sheets until payments are made.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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- References No definition available. + Details
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