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Discontinued Operations | 12 Months Ended
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May 29, 2022
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued OperationsAs discussed in Note 1 – Organization, Basis of Presentation, and Summary of Significant Accounting Policies – Eat Smart Sale and Discontinued Operations, on December 13, 2021, we completed the Eat Smart Disposition. Eat Smart represented a component of the business within the Curation Foods segment and its sale represents a strategic shift in the Company going forward. Accordingly, concurrent with the execution of the Asset Purchase Agreement, Eat Smart meets the accounting requirements for reporting as discontinued operations for all periods presented. The key components of loss from discontinued operations for the fiscal years ended May 29, 2022, May 30, 2021, and May 31, 2020 were as follows (in thousands):
| Year Ended
| May 29, 2022 |  | May 30, 2021 |  | May 31, 2020
Product sales | $ | 186,755 |  |  | $ | 372,615 |  |  | $ | 430,300 |
Cost of product sales | 181,555 |  |  | 341,612 |  |  | 394,699 |
Gross profit | 5,200 |  |  | 31,003 |  |  | 35,601 |
Operating costs and expenses: |  |  |  |  |
Research and development | 1,918 |  |  | 2,799 |  |  | 3,517 |
Selling, general and administrative | 13,350 |  |  | 27,704 |  |  | 31,514 |
Impairment of goodwill | 32,057 |  |  | — |  |  | — |
Loss on sale of Eat Smart | 336 |  |  | — |  |  | — |
Restructuring costs | 6,133 |  |  | 13,862 |  |  | 13,231 |
Total operating costs and expenses | 53,794 |  |  | 44,365 |  |  | 48,262 |
Operating loss | (48,594) |  |  | (13,362) |  |  | (12,661) |
Dividend income | — |  |  | 1,125 |  |  | 1,125 |
Interest income | — |  |  | — |  |  | 31 |
Interest expenses | (2,682) |  |  | (4,957) |  |  | (4,957) |
Other income (expense), net | — |  |  | (11,800) |  |  | (4,200) |
Loss from discontinued operations before taxes | (51,276) |  |  | (28,994) |  |  | (20,662) |
Income tax benefit | 121 |  |  | 5,898 |  |  | 4,342 |
Loss from discontinued operations, net of tax | $ | (51,155) |  |  | $ | (23,096) |  |  | $ | (16,320) |
Cash provided by (used in) operating activities by the Eat Smart business totaled $(16.5) million, $(1.4) million, and $13.8 million for the twelve months ended May 29, 2022, May 30, 2021, and May 31, 2020, respectively. Cash provided by (used in) investing activities from the Eat Smart business totaled $108.0 million, $8.4 million, and $(14.1) million for the twelve months ended May 29, 2022, May 30, 2021, and May 31, 2020, respectively. Depreciation and amortization expense of the Eat Smart business totaled $5.3 million, $9.4 million, and $10.0 million for the twelve months ended May 29, 2022, May 30, 2021, and May 31, 2020, respectively. Capital expenditures of the Eat Smart business totaled $1.8 million, $4.5 million, and $14.5 million for the twelve months ended May 29, 2022, May 30, 2021, and May 31, 2020, respectively. Interest expense was allocated to discontinued operations based on the interest expense related to the amount of debt required to be paid down under the New Credit Agreements as a result of the Eat Smart Disposition. The carrying amounts of the major classes of assets and liabilities of the Eat Smart business included in assets and liabilities of discontinued operations are as follows (in thousands):
|  |  | May 30, 2021
ASSETS |  |  |
Cash and cash equivalents |  |  | $ | 136 |
Accounts receivable, less allowance for credit losses |  |  | 28,583 |
Inventories |  |  | 6,587 |
Prepaid expenses and other current assets |  |  | 2,312 |
Total current assets, discontinued operations |  |  | 37,618 |
Investment in non-public company, fair value |  |  | 45,100 |
Property and equipment, net |  |  | 59,273 |
Operating lease right-of-use assets |  |  | 3,729 |
Goodwill |  |  | 35,470 |
Trademarks/tradenames, net |  |  | 8,228 |
Customer relationships, net |  |  | 2,260 |
Other assets |  |  | 80 |
Total other assets, discontinued operations |  |  | 154,140 |
Total assets, discontinued operations |  |  | $ | 191,758 |
LIABILITIES |  |  |
Accounts payable |  |  | $ | 31,271 |
Accrued compensation |  |  | 4,550 |
Other accrued liabilities |  |  | 4,041 |
Current portion of lease liabilities |  |  | 2,289 |
Deferred revenue |  |  | 493 |
Total current liabilities, discontinued operations |  |  | 42,644 |
Long-term lease liabilities |  |  | 3,252 |
Other non-current liabilities |  |  | 729 |
Non-current liabilities, discontinued operations |  |  | 3,981 |
Total liabilities, discontinued operations |  |  | $ | 46,625 |

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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 https://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 https://asc.fasb.org/subtopic&trid=2122178 + Details
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