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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

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- References

No definition available.

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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

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