DISCONTINUED OPERATIONS AND OTHER DIVESTITURES

3 Months Ended

Aug. 28, 2016

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS AND OTHER DIVESTITURES

DISCONTINUED OPERATIONS AND OTHER DIVESTITURES

Private Brands Operations

On February 1, 2016, pursuant to the Stock Purchase Agreement, dated as of November 1, 2015, we completed the disposition of our Private Brands operations to TreeHouse Foods, Inc. ("Treehouse") for $2.6 billion in cash on a debt-free basis, subject to working capital and other adjustments.

As a result of the disposition, we recognized a pre-tax charge of $1.81 billion ($1.34 billion after-tax) in the first quarter of fiscal 2016, to write-down the goodwill and long-lived assets to the estimated sales price, less costs to sell. We reflected the results of this business as discontinued operations for all periods presented.

The summary comparative financial results of the Private Brands business, included within discontinued operations, were as follows:

	Thirteen weeks ended
	August 28, 2016			August 30, 2015
Net sales	$	—		$	891.8
Gain on sale of businesses	$	1.5		$	—
Goodwill and long-lived asset impairment charges	—			(1,812.3		)
Income (loss) from operations of discontinued operations before income taxes and equity method investment earnings	(0.7		)	20.4
Income (loss) before income taxes	0.8			(1,791.9		)
Income tax benefit	(0.7		)	(472.1		)
Income (loss) from discontinued operations, net of tax	$	1.5		$	(1,319.8	)

Other Divestitures

During the first quarter of fiscal 2017, we completed the sales of our Spicetec Flavors & Seasonings business ("Spicetec") and our JM Swank business, parts of our Commercial segment, for $327.0 million and $159.3 million, respectively, in cash, net of cash included in the dispositions. We recognized a gain from the sales of $145.0 million and $53.2 million, respectively. The assets and liabilities of these businesses have been reclassified as assets and liabilities held for sale within our Condensed Consolidated Balance Sheets for the period presented prior to the divestiture.

The assets and liabilities classified as held for sale reflected in our Condensed Consolidated Balance Sheets related to the Spicetec and JM Swank businesses were as follows:

	May 29, 2016
Spicetec:
Current assets	$	43.3
Noncurrent assets (including goodwill of $104.7 million)	148.3
Current liabilities	10.3
Noncurrent liabilities	1.2
Swank:
Current assets	$	73.7
Noncurrent assets (including goodwill of $53.8 million)	74.3
Current liabilities	44.3
Noncurrent liabilities	0.4

In addition, we are actively marketing certain other long-lived assets. These assets have been reclassified as assets held for sale within our Condensed Consolidated Balance Sheets for all periods presented. These assets were held within our Corporate and Grocery & Snacks segments, respectively. The balance of these noncurrent assets classified as held for sale was $5.8 million and $6.9 million at August 28, 2016 and May 29, 2016, respectively.