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DISCONTINUED OPERATIONS | 6 Months Ended
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Jan. 30, 2021
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | NOTE 16—DISCONTINUED OPERATIONS In conjunction with the Supervalu acquisition, the Company announced its plan to sell the remaining acquired retail operations of Supervalu. Since the acquisition, the Company sold Hornbacher’s, and sold and exited the retail operations of certain Shoppers locations, Shop ‘n Save St. Louis and Shop ‘n Save East. As discussed further in Note 1—Significant Accounting Policies, in the fourth quarter of fiscal 2020, the Company determined Retail no longer qualified for held for sale presentation and the results of operations, financial position and cash flows of Retail have been revised in order to present Retail within continuing operations. Subsequent to the presentation changes in the fourth quarter of fiscal 2020, discontinued operations contains the historical results of operations, financial position and cash flows of Hornbacher’s, certain Shoppers locations, Shop ‘n Save St. Louis and Shop ‘n Save East. As of January 30, 2021, only four Shoppers locations are contained in remaining disposal groups that continue to be classified as operations held for sale as discontinued operations. In the second quarter of fiscal 2020, the Company entered into agreements to sell 13 Shoppers stores and decided to close six locations. During fiscal 2020 year-to-date, within discontinued operations the Company incurred approximately $23.6 million in pre-tax aggregate costs and charges related to Shoppers stores that remain within discontinued operations, consisting of $18.8 million of operating losses, severance costs and transaction costs during the period of wind-down and $5.5 million of property and equipment impairment charges related to impairment reviews. Operating results of discontinued operations are summarized below:
| 13-Week Period Ended |  | 26-Week Period Ended
(In thousands) | January 30, 2021 |  | February 1, 2020 |  | January 30, 2021 |  | February 1, 2020
Net sales | $ | 22,973 |  |  | $ | 75,076 |  |  | $ | 47,789 |  |  | $ | 170,671 |
Cost of sales | 15,748 |  |  | 56,553 |  |  | 32,520 |  |  | 121,639 |
Gross profit | 7,225 |  |  | 18,523 |  |  | 15,269 |  |  | 49,032 |
Operating expenses | 3,528 |  |  | 15,228 |  |  | 9,759 |  |  | 40,304 |
Restructuring expenses and charges | 792 |  |  | 24,009 |  |  | 783 |  |  | 24,184 |
Operating income (loss) | 2,905 |  |  | (20,714) |  |  | 4,727 |  |  | (15,456) |
Other expense (income), net | — |  |  | (3) |  |  | — |  |  | (64) |
Income (loss) from discontinued operations before income taxes | 2,905 |  |  | (20,711) |  |  | 4,727 |  |  | (15,392) |
Benefit for income taxes | (898) |  |  | (4,635) |  |  | (372) |  |  | (3,342) |
Income (loss) from discontinued operations, net of tax | $ | 3,803 |  |  | $ | (16,076) |  |  | $ | 5,099 |  |  | $ | (12,050) |
No net sales were recorded within continuing operations for retail stores within discontinued operations that the Company disposed of and expects to dispose of without a supply agreement. These net sales have been eliminated upon consolidation within the Wholesale segment of continuing operations and amounted to $13.4 million and $36.1 million in the second quarters of fiscal 2021 and 2020, respectively, and $27.8 million and $92.1 million in fiscal 2021 and 2020 year-to-date, respectively. The following table summarizes the carrying amounts of major classes of assets and liabilities that were classified as held-for-sale on the Condensed Consolidated Balance Sheets:
(In thousands) |  | January 30, 2021 |  | August 1, 2020
Current assets |  |  |  |
Cash and cash equivalents |  | $ | 155 |  |  | $ | 119 |
Accounts receivable, net |  | 578 |  |  | 350 |
Inventories, net |  | 3,329 |  |  | 4,233 |
Other current assets |  | 654 |  |  | 365 |
Total current assets of discontinued operations |  | 4,716 |  |  | 5,067 |
Long-term assets |  |  |  |
Property and equipment |  | 927 |  |  | 3,450 |
Other long-term assets |  | 464 |  |  | 465 |
Total long-term assets of discontinued operations |  | 1,391 |  |  | 3,915 |
Total assets of discontinued operations |  | $ | 6,107 |  |  | $ | 8,982 |
Current liabilities |  |  |  |
Accounts payable |  | $ | 3,405 |  |  | $ | 3,613 |
Accrued compensation and benefits |  | 2,575 |  |  | 4,501 |
Other current liabilities |  | 2,333 |  |  | 3,324 |
Total current liabilities of discontinued operations |  | 8,313 |  |  | 11,438 |
Long-term liabilities |  |  |  |
Other long-term liabilities |  | 15 |  |  | 1,738 |
Total liabilities of discontinued operations |  | 8,328 |  |  | 13,176 |
Net liabilities of discontinued operations |  | $ | (2,221) |  |  | $ | (4,194) |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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