XML 24 R11.htm IDEA: XBRL DOCUMENT
v3.23.1

Business Combinations | 12 Months Ended
--- | ---
Mar. 31, 2023
Business Combinations [Abstract] |
Business Combination Disclosure [Text Block] | BUSINESS COMBINATIONS Acquisition of Shank's Extracts, LLC On October 4, 2021, the Company acquired 100% of the capital stock of Shank's Extract's, LLC (“Shank's”), a flavors and botanical extracts processing company, for approximately $100 million in cash and $2.4 million of additional working capital on-hand at the date of acquisition. The acquisition of Shank's diversifies the Company's product offerings and generates new opportunities for its plant-based ingredients platform. A portion of the goodwill recorded as part of the acquisition was attributable to the assembled workforce of Shank's. The goodwill and intangibles recognized for the Shank's acquisition are deductible for U.S. income tax purposes. The transaction was treated as an asset acquisition for U.S. Federal tax purposes, resulting in a step-up of tax basis to fair value. The Company determined the Shank's operations are not material to the Company’s consolidated results. Therefore, pro forma information is not presented. For the fiscal year ended March 31, 2022, the Company incurred $2.3 million for acquisition-related transaction costs for the purchase of Shank's. The acquisition-related costs were expensed as incurred and recorded in selling, general, and administrative expense on the consolidated statements of income. In November 2021, the Company acquired the land and buildings utilized by Shank's operations for $13.3 million. The purchase of the land and buildings resulted in the elimination of the $8.5 million operating lease right-of-use asset and lease liability recognized on the acquisition date for Shank's. The following table summarizes the final purchase price allocations of the assets acquired and liabilities assumed for the Shank's acquisition.
| Shank's |  |
Assets | October 4, 2021 |  |
Cash and cash equivalents | $ | 754 |  |  |
Accounts receivable, net | 6,643 |  |  |
Inventory | 15,792 |  |  |
Other current assets | 415 |  |  |
Property, plant and equipment | 11,000 |  |  |
Operating lease right-of-use assets | 8,531 |  |  |
Intangibles |  |  |
Customer relationships | 24,000 |  |  |
Developed technology | 4,500 |  |  |
Non-compete agreements | 3,000 |  |  |
Goodwill | 41,061 |  |  |
Total assets acquired | 115,696 |  |  |
Liabilities |  |  |
Accounts payable and accrued expenses | 6,159 |  |  |
Customer advances and deposits | 351 |  |  |
Accrued compensation | 655 |  |  |
Current portion operating lease liabilities | 8,531 |  |  |
Total liabilities assumed | 15,696 |  |  |
Total assets acquired and liabilities assumed | $ | 100,000 |  |  |
Restricted Cash Release of Deferred Proceeds from Acquisition of Silva International, Inc. During the three months ended December 31, 2022, the Company released $6.0 million, held in a third-party escrow account, to one of Silva's selling shareholders. The amounts were held in escrow since the date of acquisition, as the employee had a post-combination service requirement with forfeitable payment provisions. Therefore, under ASC Topic 805, "Business Combinations," the amounts held in escrow were treated as a contingent consideration arrangement and expensed as compensation expense in selling, general, and administrative expense on the consolidated statements of income. As of December 31, 2022, all amounts have been released to the selling shareholder, who remains employed by the Company, and expensed in the Company's consolidated statements of income.

X
- 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 https://asc.fasb.org/topic&trid=2303972 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 5 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=128092470&loc=d3e4946-128472 + Details
Name: | us-gaap_BusinessCombinationDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_BusinessCombinationsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration