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Discontinued Operations | 6 Months Ended
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Jan. 27, 2024
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations In June 2023, we announced that we would enter a consultation period, in accordance with UK law, to explore exiting the market in the UK. During the first quarter of fiscal 2024, we ceased operations of our UK business and the accounting requirements for reporting the UK business as a discontinued operation were met. As a result, the UK business is presented in the accompanying condensed financial statements as a discontinued operation for all periods presented. Cash from our UK business is recorded as continuing operations on the condensed consolidated balance sheets, as any cash remaining after the settlement of outstanding liabilities related to the UK business is expected to be repatriated into the U.S. The following table summarizes the major classes of assets and liabilities of discontinued operations, which are summarized separately in the condensed consolidated balance sheets:
(in thousands) |  | January 27, 2024 |  | July 29, 2023
Inventory, net |  | $ | — |  |  | $ | 6,628 |
Prepaid expenses and other current assets |  | 953 |  |  | 2,995 |
Current assets, discontinued operations |  | 953 |  |  | 9,623 |
Operating lease right-of-use assets |  | — |  |  | 1,565 |
Other long-term assets |  | 298 |  |  | 481 |
Long-term assets, discontinued operations |  | 298 |  |  | 2,046 |
Total assets, discontinued operations |  | $ | 1,251 |  |  | $ | 11,669 |
Accounts payable |  | $ | 577 |  |  | $ | 2,586 |
Operating lease liabilities |  | — |  |  | 1,132 |
Accrued liabilities |  | 1,485 |  |  | 8,903 |
Other current liabilities |  | — |  |  | 161 |
Current liabilities, discontinued operations |  | 2,062 |  |  | 12,782 |
Total liabilities, discontinued operations |  | $ | 2,062 |  |  | $ | 12,782 |
The key components of loss from discontinued operations were as follows:
|  | For the Three Months Ended |  | For the Six Months Ended
(in thousands) |  | January 27, 2024 |  | January 28, 2023 |  | January 27, 2024 |  | January 28, 2023
Revenue, net |  | $ | 824 |  |  | $ | 11,496 |  |  | $ | 9,382 |  |  | $ | 23,348 |
Cost of goods sold |  | 784 |  |  | 6,134 |  |  | 7,274 |  |  | 13,535 |
Gross profit |  | 40 |  |  | 5,362 |  |  | 2,108 |  |  | 9,813 |
Selling, general, and administrative expenses |  | 1,500 |  |  | 8,789 |  |  | 11,635 |  |  | 19,834 |
Operating loss |  | (1,460) |  |  | (3,427) |  |  | (9,527) |  |  | (10,021) |
Interest income |  | — |  |  | 72 |  |  | 187 |  |  | 98 |
Other income (expense), net (1) |  | 560 |  |  | 1,315 |  |  | (583) |  |  | 207 |
Loss before income taxes |  | (900) |  |  | (2,040) |  |  | (9,923) |  |  | (9,716) |
Provision (benefit) for income taxes |  | (332) |  |  | 87 |  |  | (36) |  |  | 177 |
Loss from discontinued operations, net of income taxes |  | $ | (568) |  |  | $ | (2,127) |  |  | $ | (9,887) |  |  | $ | (9,893) |
(1) For the six months ended January 27, 2024, Other income (expense), net includes the loss from the release of historical foreign currency translation adjustments related to the exit of the UK business in the first quarter of fiscal 2024, Refer to Note 2, “Summary of Significant Accounting Policies” for further details. During fiscal 2023, we recorded an aggregate $4.7 million of expenses related to the exit and wind down of the UK business, primarily consisting of losses from firm purchase commitments for future receipts of inventory, inventory write-downs to net realizable value, and fixed asset impairment charges. These charges were recorded in both cost of goods sold and selling, general, and administrative expenses from discontinued operations. During the three and six months ended January 27, 2024, we recorded $0.5 million and $5.4 million of expense associated with the exit of the UK business, which consisted primarily of severance and employee-related benefits, and early contract termination charges. These charges were recorded in selling, general, and administrative expenses from discontinued operations. We expect future expenses associated with the exit of the UK business to be immaterial.

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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 -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//360/tableOfContent + Details
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