DISCONTINUED OPERATIONS

12 Months Ended

Jul. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

NOTE 18—DISCONTINUED OPERATIONS

In early fiscal 2022, the Company disposed of the last two remaining Shoppers locations that were classified in discontinued operations. In fiscal 2020, the Company entered into agreements to sell 13 Shoppers stores and decided to close six locations. During fiscal 2020, the Company incurred approximately $31 million in pre-tax aggregate costs and charges related to Shoppers stores that remained within discontinued operations, consisting of $25 million of operating losses, severance costs and transaction costs during the period of wind-down and $6 million of property and equipment impairment charges related to impairment reviews.

Operating results of discontinued operations are summarized below:


(in millions)	2021		2020
Net sales	$	42	$	184
Cost of sales	28		131
Gross profit	14		53
Operating expenses	9		43
Restructuring expenses and charges	—		33





Income (loss) from discontinued operations before income taxes	5		(23)
Benefit for income taxes	(1)		(5)
Income (loss) from discontinued operations, net of tax	$	6	$	(18)

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 $22 million and $97 million in fiscal, 2021 and 2020, respectively.

The following table summarizes the carrying amounts of major classes of assets and liabilities that were classified as held-for-sale on the Consolidated Balance Sheets:


(in millions)	July 31, 2021
Current assets
Inventories, net	$	2
Total current assets of discontinued operations	2
Long-term assets
Property and equipment	1
Other long-term assets	1
Total long-term assets of discontinued operations	2
Total assets of discontinued operations	$	4

Current liabilities
Accounts payable	$	2
Accrued compensation and benefits	2
Total current liabilities of discontinued operations	4
Total liabilities of discontinued operations	$	4
Net liabilities of discontinued operations	$	—