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Discontinued Operations
 6 Months Ended
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, 2024July 29, 2023
Inventory, net$— $6,628 
Prepaid expenses and other current assets953 2,995 
Current assets, discontinued operations 953 9,623 
Operating lease right-of-use assets— 1,565 
Other long-term assets298 481 
Long-term assets, discontinued operations298 2,046 
Total assets, discontinued operations $1,251 $11,669 
Accounts payable$577 $2,586 
Operating lease liabilities— 1,132 
Accrued liabilities1,485 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 EndedFor the Six Months Ended
(in thousands)January 27, 2024January 28, 2023January 27, 2024January 28, 2023
Revenue, net$824 $11,496 $9,382 $23,348 
Cost of goods sold784 6,134 7,274 13,535 
Gross profit40 5,362 2,108 9,813 
Selling, general, and administrative expenses1,500 8,789 11,635 19,834 
Operating loss(1,460)(3,427)(9,527)(10,021)
Interest income— 72 187 98 
Other income (expense), net (1)
560 1,315 (583)207 
Loss before income taxes(900)(2,040)(9,923)(9,716)
Provision (benefit) for income taxes(332)87 (36)177 
Loss from discontinued operations, net of income taxes$(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.