XML 71 R20.htm IDEA: XBRL DOCUMENT
v3.24.1

Discontinued Operations | 12 Months Ended
--- | ---
May 28, 2023
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations As discussed in Note 1 – Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Discontinued Operations - O Olive Sale, Yucatan Disposition, BreatheWay Disposition and Eat Smart Disposition, during fiscal year 2023 we completed the O Olive Sale, Yucatan Disposition and BreatheWay Disposition, and during fiscal year 2022 we completed the Eat Smart Disposition. The accounting requirements for reporting the Eat Smart, Yucatan and O Olive businesses as discontinued operations were met when the Eat Smart Disposition, Yucatan Disposition and O Olive Sale were completed on each respective closing date. The BreatheWay Disposition did not meet the requirements for reporting the businesses as discontinued operations; therefore, the amounts are included in continuing operations for the years ended May 28 2023, May 29, 2022 and May 30, 2021 relate to BreatheWay. Accordingly, the consolidated financial statements and notes to the consolidated financial statements reflect the results of the Eat Smart, Yucatan and O Olive businesses as a discontinued operation for the periods presented. The key components of loss from discontinued operations for the fiscal years ended May 28, 2023, May 29, 2022, and May 30, 2021 were as follows (in thousands):
| Year Ended
| May 28, 2023 |  | May 29, 2022 |  | May 30, 2021
|  |  | As Restated |  | As Restated
Product sales | $ | 49,988 |  |  | $ | 261,311 |  |  | $ | 443,779 |
Cost of product sales | 51,175 |  |  | 248,670 |  |  | 401,775 |
Gross profit | (1,187) |  |  | 12,641 |  |  | 42,004 |
Operating costs and expenses: |  |  |  |  |
Research and development | 220 |  |  | 2,441 |  |  | 3,538 |
Selling, general and administrative | 10,143 |  |  | 24,423 |  |  | 38,100 |
Impairment of goodwill and long-lived and indefinite-lived assets | 1,300 |  |  | 78,146 |  |  | — |
Legal settlement charge | 407 |  |  | — |  |  | 1,763 |
Loss on Sale of Eat Smart | — |  |  | 336 |  |  | — |
Loss on Sale of Yucatan | 20,663 |  |  | — |  |  | — |
Loss on Sale of O Olive | 319 |  |  | — |  |  | — |
Gain on Sale of BreatheWay | — |  |  | — |  |  | — |
Restructuring costs | 1,255 |  |  | 6,542 |  |  | 3,935 |
Total operating costs and expenses | 34,307 |  |  | 111,888 |  |  | 47,336 |
Operating loss | (35,494) |  |  | (99,247) |  |  | (5,332) |
Dividend income | — |  |  | — |  |  | — |
Interest expenses | — |  |  | (2,682) |  |  | (4,957) |
Other expense, net | 167 |  |  | — |  |  | — |
Loss from discontinued operations before taxes | (35,327) |  |  | (101,929) |  |  | (10,289) |
Income tax benefit | — |  |  | 690 |  |  | 1,432 |
Loss from discontinued operations, net of tax | $ | (35,327) |  |  | $ | (101,239) |  |  | $ | (8,857) |
Cash provided by (used in) operating activities by the O Olive, Yucatan, and Eat Smart businesses totaled $0.1 million, $(13.6) million, and $22.0 thousand for the years ended May 28, 2023, May 29, 2022, and May 30, 2021, respectively. Cash provided by (used in) investing activities from the O Olive, Yucatan, and Eat Smart businesses totaled $(42.0) thousand, $105.3 million, and $5.3 million for the years ended May 28, 2023, May 29, 2022, and May 30, 2021, respectively. Depreciation and amortization expense of the O Olive, Yucatan, and Eat Smart businesses totaled $0.4 million, $7.6 million, and $11.2 million for the years ended May 28, 2023, May 29, 2022, and May 30, 2021, respectively. Capital expenditures of the O Olive, Yucatan, and Eat Smart businesses totaled $42.0 thousand, $4.5 million, and $7.6 million for the years ended May 28, 2023, May 29, 2022, and May 30, 2021, respectively. The carrying amounts of the major classes of assets and liabilities of O Olive and Yucatan businesses included in assets and liabilities of discontinued operations are as follows (in thousands):
|  |  | May 29, 2022
|  |  | As Restated
ASSETS |  |  |
Cash and cash equivalents |  |  | $ | 652 |
Accounts receivable, less allowance for credit losses |  |  | 9,336 |
Inventories |  |  | 26,012 |
Prepaid expenses and other current assets |  |  | 3,310 |
Total current assets, discontinued operations |  |  | 39,310 |
Property and equipment, net |  |  | 3,896 |
Operating lease right-of-use assets |  |  | 2,933 |
Trademarks/tradenames, net |  |  | 4,500 |
Customer relationships, net |  |  | 1,400 |
Other assets |  |  | 113 |
Total other assets, discontinued operations |  |  | 12,842 |
Total assets, discontinued operations |  |  | $ | 52,152 |
LIABILITIES |  |  |
Accounts payable |  |  | $ | 2,850 |
Accrued compensation |  |  | 297 |
Other accrued liabilities |  |  | 939 |
Current portion of lease liabilities |  |  | 658 |
Total current liabilities, discontinued operations |  |  | 4,744 |
Long-term lease liabilities |  |  | 2,325 |
Non-current liabilities, discontinued operations |  |  | 2,325 |
Total liabilities, discontinued operations |  |  | $ | 7,069 |

X
- References No definition available. + Details
Name: | us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration