DISCONTINUED OPERATIONS

3 Months Ended

Oct. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

NOTE 16—DISCONTINUED OPERATIONS

In conjunction with the Supervalu acquisition, the Company announced its plan to sell the remaining acquired retail operations of Supervalu. Since the acquisition, the Company sold Hornbacher’s, and sold and exited the retail operations of certain Shoppers locations, Shop ‘n Save St. Louis and Shop ‘n Save East. As discussed further in Note 1—Significant Accounting Policies, in the fourth quarter of fiscal 2020, the Company determined Retail no longer qualified for held for sale presentation and the results of operations, financial position and cash flows of Retail have been revised in order to present Retail within continuing operations. Subsequent to the presentation changes in the fourth quarter of fiscal 2020, discontinued operations contains the historical results of operations, financial position and cash flows of Hornbacher’s, certain Shoppers locations, Shop ‘n Save St. Louis and Shop ‘n Save East. As of October 31, 2020, only five Shoppers locations are contained in remaining disposal groups that continue to be classified as operations held for sale as discontinued operations.

Operating results of discontinued operations are summarized below:

	13-Week Period Ended
(In thousands)	October 31, 2020		November 2, 2019
Net sales	$	24,816	$	95,595
Cost of sales	16,772		65,086
Gross profit	8,044		30,509
Operating expenses	6,231		25,076
Restructuring expenses and charges	(9)		175
Operating income	1,822		5,258
Other expense (income), net	—		(61)
Income from discontinued operations before income taxes	1,822		5,319
Income tax provision	526		1,293
Income from discontinued operations, net of tax	$	1,296	$	4,026

No net sales were recorded within continuing operations for retail stores within discontinued operations that the Company disposed of and expects to dispose of without a supply agreement. These net sales have been eliminated upon consolidation within the Wholesale segment of continuing operations and amounted to $14.4 million and $56.0 million in the first quarters of fiscal 2021 and 2020, respectively.

The carrying amounts of major classes of assets and liabilities that were classified as held-for-sale on the Condensed Consolidated Balance Sheets follows in the table below.

(In thousands)	October 31, 2020		August 1, 2020
Current assets
Cash and cash equivalents	$	173	$	119
Receivables, net	532		350
Inventories	4,348		4,233
Other current assets	634		365
Total current assets of discontinued operations	5,687		5,067
Long-term assets
Property and equipment	1,965		3,450
Other assets	442		465
Total long-term assets of discontinued operations	2,407		3,915
Total assets of discontinued operations	$	8,094	$	8,982
Current liabilities
Accounts payable	$	3,505	$	3,613
Accrued compensation and benefits	2,744		4,501
Other current liabilities	3,640		3,324
Total current liabilities of discontinued operations	9,889		11,438
Long-term liabilities
Other long-term liabilities	15		1,738
Total liabilities of discontinued operations	9,904		13,176
Net liabilities of discontinued operations	$	(1,810)	$	(4,194)