v3.26.3
Divestiture of SMART Brazil (Tables)
 12 Months Ended
Aug. 28, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations
Assets and liabilities of SMART Brazil as of the November 29, 2023 disposal date were as follows:
As ofNovember 29,
2023
Cash and cash equivalents$40,927 
Accounts receivable, net16,482 
Inventories26,103 
Other current assets17,800 
Total current assets101,312 
Property and equipment, net66,870 
Operating lease right-of-use assets6,912 
Goodwill19,856 
Other noncurrent assets27,490 
Total assets222,440 
Impairment of SMART Brazil assets(153,036)
Total assets, net of impairment69,404 
Accounts payable and accrued expenses20,576 
Current debt3,872 
Other current liabilities1,023 
Total current liabilities25,471 
Long-term debt11,938 
Noncurrent operating lease liabilities5,686 
Noncurrent deferred tax liabilities28,564 
Other noncurrent liabilities93 
Total liabilities71,752 
Net liabilities of discontinued operations$(2,348)
The following table presents the results of operations for SMART Brazil:
Year endedAugust 30,
2024
Net sales$55,159 
Cost of sales50,560 
Gross profit4,599 
Operating expenses:
Research and development157 
Selling, general and administrative5,421 
Other operating (income) expense64 
Total operating expenses5,642 
Operating loss(1,043)
Non-operating expense:
Loss from divestiture of 81% interest in SMART Brazil
10,888 
Interest income, net(1,262)
Other non-operating expense138 
Total non-operating expense9,764 
Loss before taxes(10,807)
Income tax benefit2,659 
Net loss from discontinued operations$(8,148)
The following table presents the calculation of the loss from the divestiture of an 81% interest in SMART Brazil:
Proceeds, less costs to sell and other expenses:
Consideration$194,092 
Costs to sell and other expenses(4,150)
189,942 
Basis in 81% interest in SMART Brazil:
Net assets of SMART Brazil145,194 
Cumulative translation adjustment (1)
212,397 
357,591 
Gain on revalue of 19% Retained Interest in SMART Brazil (2)
3,725 
Pre-tax loss on divestiture of 81% interest in SMART Brazil
163,924 
Income tax provision26,580 
Loss on divestiture of 81% interest in SMART Brazil$190,504 
(1)The sale of an 81% interest in SMART Brazil resulted in the de-consolidation of SMART Brazil and, accordingly, the release of the related cumulative translation adjustment. Included in the basis calculation above is the balance of cumulative translation adjustment for SMART Brazil as of the closing. The release of the cumulative translation adjustment is included in net income (loss) from discontinued operations in the accompanying consolidated statement of operations.
(2)In connection with the transaction, we revalued our 19% Retained Interest in SMART Brazil based on the implied value for 100% of SMART Brazil, adjusted for lack of control premium.
Recognition Periods: The loss from the divestiture of an 81% interest in SMART Brazil was recognized as follows:
Three Months Ended
December 1,
2023		August 25,
2023		Total
Pre-tax loss on divestiture of 81% interest in SMART Brazil
$10,888 $153,036 $163,924 
Income tax provision (benefit)(1,984)28,564 26,580 
Loss on divestiture of 81% interest in SMART Brazil$8,904 $181,600 $190,504