Discontinued Operations

12 Months Ended

May 26, 2024

Discontinued Operations and Disposal Groups [Abstract]

As discussed in Note 1 – Organization, Basis of Presentation, and Summary of Significant Accounting Policies - Discontinued Operations, during fiscal year 2023 we completed the disposition of O Olive Sale and Yucatan Disposition and during fiscal year 2022 we completed the Eat Smart Disposition. Yucatan, O Olive and Eat Smart represent components of the Company’s previously operated food business and their sale represents a strategic shift in the Company going forward. Accordingly, concurrent with the execution of their respective purchase agreements, Yucatan, O Olive and Eat Smart met the accounting requirements for reporting as discontinued operations for all periods presented. There were no assets or liabilities of Yucatan, O Olive or Eat Smart as of May 26, 2024 or May 28, 2023.

The key components of income (loss) from discontinued operations for the fiscal years ended May 26, 2024, May 28, 2023, and May 29, 2022 were as follows (in thousands):


	Year Ended
	May 26, 2024		May 28, 2023		May 29, 2022
Revenues	$	—	$	49,988	$	261,311
Cost of goods sold	—		51,175		248,670
Gross profit	—		(1,187)		12,641
Operating costs and expenses:
Research and development	—		220		2,441
Selling, general and administrative	—		10,143		24,423
Impairment of goodwill and long-lived and indefinite-lived assets	—		1,300		78,146
Legal settlement charge	—		407		—
Loss on Sale of Eat Smart	—		—		336
Loss on Sale of Yucatan	—		20,663		—
Loss on Sale of O Olive	—		319		—

Restructuring costs	—		1,255		6,542
Total operating costs and expenses	—		34,307		111,888
Operating loss	—		(35,494)		(99,247)


Interest expenses (1)	—		—		(2,682)
Other income (expense), net	2,700		167		—
Income (loss) from discontinued operations before taxes	2,700		(35,327)		(101,929)
Income tax benefit	(18)		—		690
Income (loss) from discontinued operations, net of tax	$	2,682	$	(35,327)	$	(101,239)

(1)The Company does not allocate general corporate interest expense to discontinued operations. The amount shown for the year ended May 29, 2022 related to debt held specifically by discontinued operations.

The key components of cash flows from discontinued operations for the fiscal years ended May 28, 2023, and May 29, 2022 were as follows (in thousands):


	Year Ended
	May 28, 2023		May 29, 2022
Cash provided by (used in) operating activities	$	12	$	(13,600)
Cash (used in) provided by investing activities	$	(42)	$	105,300
Depreciation and amortization expense	$	400	$	7,628
Capital expenditures	$	(42)	$	(4,467)