|9 Months Ended|
Sep. 30, 2022
|Subsequent Events [Abstract]|
|Subsequent Events||Subsequent Events
Subsequent to September 30, 2022, certain lots of the Company’s RTD products were determined not to meet the Company’s standards for flavor and texture, and the Company decided to voluntarily withdraw the related inventory from the market. As a result, we expect to issue credits of approximately $561 to affected customers and have recorded this as a reduction to revenue. In addition, the Company recorded $2,875 to cost of goods sold relating to replacing such customers’ products and the write off of affected inventory that was determined to no longer be salable. Because the conditions relating to the withdrawal existed for product that was produced as of September 30, 2022, the date of our consolidated balance sheet, these amounts were recorded in our consolidated financial statements as of such date. An additional $626 of product that was determined to not be salable was produced subsequent to September 30, 2022, and will be reflected as expense in the fourth quarter 2022.
In November 2022, Authentic Brands entered into a new senior credit facility, which includes a $65,000 revolving credit facility with a five year term (the "Senior Credit Facility"), in replacement of its existing credit facility. In connection with the entry into the Senior Credit Facility, Authentic Brands and its subsidiaries each granted a security interest in and liens upon substantially all of their assets in favor of the lender to secure obligations under the Senior Credit Facility. Additionally, prior to closing, Authentic Brands repaid the $14,000 outstanding under the existing credit facility.
The Company has completed an evaluation of all subsequent events through November 10, 2022 to ensure that these consolidated financial statements include appropriate disclosure of events both recognized in the consolidated financial statements and events which occurred but were not recognized in the consolidated financial statements.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef