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:


	2025		2024
Workers' compensation costs from former textile operations	$	(69)	$	(94)
Environmental remediation costs from former textile operations	5		—
Commercial business operations	(276)		(696)

Loss from discontinued operations, before taxes	$	(340)	$	(790)
Income tax benefit	—		—
Loss from discontinued operations, net of tax	$	(340)	$	(790)

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.

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 $2,120 as of December 27, 2025 and $2,174 as of December 28, 2024. 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.

In accordance with the Asset Purchase Agreement dated September 13, 2021, the Company sold assets that include 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 five years following September 13, 2021. The agreement allowed for the Company to sell the commercial inventory retained by the company after the divestiture.


	2025		2024
Long Term Assets of Discontinued Operations:
Other assets	$	1,053	$	1,064
Long Term Assets Held for Discontinued Operations	$	1,053	$	1,064

Current Liabilities of Discontinued Operations:
Accounts payable	$	120	$	121
Accrued expenses	953		1,035

Current Liabilities Held for Discontinued Operations	$	1,073	$	1,156

Long Term Liabilities of Discontinued Operations:
Other long term liabilities	$	3,321	$	3,398
Long Term Liabilities Held for Discontinued Operations	$	3,321	$	3,398

For the twelve months ended December 27, 2025 and December 28, 2024, the Company reclassified the following operations of the Commercial business included in discontinued operations in the accompanying Consolidated Statements of Operations:


	2025		2024
Net sales	$	—	$	—
Cost of sales	276		554
Gross profit (loss)	(276)		(554)

Selling and administrative expenses	—		(34)
Other operating expense, net	—		176
Loss from discontinued Commercial business before taxes	$	(276)	$	(696)