As of February 28, 2026, and August 30, 2025, Goodwill in the Consolidated Balance Sheets was $590.0 million. As a result of the sustained decline in the Company’s share price, declines in the Company’s market capitalization, and updated future revenue projections assessed during the second quarter of fiscal year 2026, the Company identified a triggering event indicating that it was more likely than not that the fair value of the goodwill reporting unit was less than its carrying amount. The Company conducted a quantitative interim goodwill assessment as of the last day of its second quarter, February 28, 2026, utilizing a weighted combination of the discounted cash flow method under the income approach and the guideline public company method under the market approach to estimate the fair value of the equity of the Company. Based on testing, the fair value was greater than its carrying value, resulting in no impairment charges related to goodwill during the thirteen and twenty-six weeks ended February 28, 2026, or since the inception of the Company.


				February 28, 2026
(In thousands)	Useful life			Gross carrying amount		Accumulated amortization		Net carrying amount
Intangible assets with indefinite life:
Brands and trademarks	Indefinite life			$	893,000	$	—	$	893,000
Intangible assets with finite lives:
Customer relationships	15 years			194,500		84,621		109,879
Licensing agreements	10 years			16,072		15,195		877
Proprietary recipes and formulas	7 years			7,000		7,000		—
Software and website development costs	3	-	5 years	6,641		5,634		1,007

				$	1,117,213	$	112,450	$	1,004,763


				August 30, 2025
(In thousands)	Useful life			Gross carrying amount		Accumulated amortization		Net carrying amount
Intangible assets with indefinite life:
Brands and trademarks	Indefinite life			$	1,142,000	$	—	$	1,142,000
Intangible assets with finite lives:
Customer relationships	15 years			194,500		78,138		116,362
Licensing agreements	10 years			16,072		14,319		1,753
Proprietary recipes and formulas	7 years			7,000		7,000		—
Software and website development costs	3	-	5 years	6,641		5,153		1,488

				$	1,366,213	$	104,610	$	1,261,603

Changes in Intangible assets, net during the twenty-six weeks ended February 28, 2026, were primarily related to the impairment of both the OWYN and Atkins brands and trademarks indefinite-lived intangible assets, and recurring amortization expense. Amortization expense related to intangible assets was $3.9 million and $7.8 million for the thirteen and twenty-six weeks ended February 28, 2026. Amortization expense related to intangible assets was $3.7 million and $7.5 million for the thirteen and twenty-six weeks ended March 1, 2025. There were no impairment charges related to its finite-lived intangible assets during the twenty-six weeks ended February 28, 2026, and March 1, 2025.

As a result of the declines of net sales and future revenue projections assessed during the second quarter of fiscal year 2026, the Company identified a triggering event indicating that it was more likely than not that the fair value of both the OWYN and Atkins brands and trademarks indefinite-lived intangible assets were less than their respective carrying amounts. The Company conducted a quantitative assessment as of the last day of its second quarter, February 28, 2026, utilizing an income approach to estimate the fair value of the intangible assets. Based on testing, the respective assets carrying values exceeded their fair values, resulting in a loss on impairment of $187.0 million for OWYN and $62.0 million for Atkins during the thirteen weeks ended February 28, 2026. There were no impairment charges related to the Company’s indefinite-lived intangible assets during the twenty-six weeks ended March 1, 2025.

We believe the estimates and assumptions utilized in our impairment assessments are reasonable and are comparable to those that would be used by other marketplace participants. However, actual events and results could differ substantially from those utilized in our initial valuations. Significant declines of future revenue projections or changes of other assumptions used in estimating fair values versus those utilized at the time of the initial valuations could result in impairment charges that could materially affect the consolidated financial statements.