Discontinued Operations

3 Months Ended

Mar. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

The Company has either sold or discontinued certain operations that are accounted for as "Discontinued Operations" under applicable accounting guidance. Discontinued operations are summarized as follows:

	Three Months Ended
	March 30, 2024		April 1, 2023
Loss from discontinued operations:
Workers' compensation costs from former textile operations	$	(33)	$	(19)
Environmental remediation costs from former textile operations	—		(25)
Commercial business operations	(51)		(163)
Loss from discontinued operations, before taxes	$	(84)	$	(207)
Income tax benefit	—		—
Loss from discontinued operations, net of tax	$	(84)	$	(207)

Workers' compensation costs from former textile operations

Undiscounted reserves are maintained for the self-insured workers' compensation obligations related to the Company's former textile operations. These reserves are administered by a third-party workers' compensation service provider under the supervision of Company personnel. Such reserves are reassessed on a quarterly basis. Pre-tax cost incurred for workers' compensation as a component of discontinued operations primarily represents a change in estimate for each period from unanticipated medical costs associated with the Company's obligations.

Environmental remediation costs from former textile operations

Reserves for environmental remediation obligations are established on an undiscounted basis. The Company has an accrual for environmental remediation obligations related to discontinued operations of $2,191 as of March 30, 2024 and $2,205 as of December 30, 2023. The liability established represents the Company's best estimate of possible loss and is the reasonable amount to which there is any meaningful degree of certainty given the periods of estimated remediation and the dollars applicable to such remediation for those periods. The actual timeline to remediate, and thus, the ultimate cost to complete such remediation through these remediation efforts, may differ significantly from the Company's estimates. Pre-tax cost for environmental remediation obligations classified as discontinued operations were primarily a result of specific events requiring action and additional expense in each period.

Commercial business operations

In accordance with the Asset Purchase Agreement dated September 13, 2021, the Company sold assets that included certain inventory, certain items of machinery and equipment used exclusively in the Commercial Business, and related intellectual property. Additionally, the Company agreed not to compete with the specified commercial business and the Atlas|Masland markets for a period of 5 years following September 13, 2021. The agreement allowed for the Company to sell the commercial inventory retained by the Company after the divestiture.

The Company reclassified the following assets and liabilities for discontinued operations in the accompanying consolidated condensed balance sheets:

	March 30, 2024		December 30, 2023
Current Assets of Discontinued Operations:
Receivables, net	$	149	$	158
Inventories, net	111		107
Current Assets Held for Discontinued Operations	$	260	$	265
Long Term Assets of Discontinued Operations:
Property, plant and equipment, net	$	176	$	176
Other assets	1,215		1,138
Long Term Assets Held for Discontinued Operations	$	1,391	$	1,314
Current Liabilities of Discontinued Operations:
Accounts payable	$	128	$	128
Accrued expenses	1,044		1,009
Current Liabilities Held for Discontinued Operations	$	1,172	$	1,137
Long Term Liabilities of Discontinued Operations:
Other long term liabilities	$	3,618	$	3,536
Long Term Liabilities Held for Discontinued Operations	$	3,618	$	3,536

For the three months ended March 30, 2024 and April 1, 2023, the Company reclassified the following operations of the Commercial business included in discontinued operations in the accompanying consolidated condensed statements of operations:

	Three Months Ended
	March 30, 2024		April 1, 2023
Net sales	$	11	$	140
Cost of sales	118		261
Gross profit	(107)		(121)
Selling and administrative expenses	(56)		45
Other operating income, net	—		(3)
Loss from discontinued Commercial business operations	$	(51)	$	(163)