BUSINESS SEGMENTS

The Company has three operating segments: legacy Company Wholesale; Supervalu Wholesale and Canada Wholesale, aggregated under the Wholesale reportable segment. In addition, the Company’s Retail operating segment is a separate reportable segment, which is primarily comprised of discontinued operations activities. The legacy Company Wholesale, Supervalu Wholesale and Canada Wholesale operating segments have similar products and services, customer channels, distribution methods and economic characteristics. The Wholesale reportable segment is engaged in the national distribution of natural, organic, specialty, and conventional grocery and non-food products, and in the provision of support services in the United States and Canada. The Company has additional operating segments that do not meet the quantitative thresholds for reportable segments and are therefore aggregated under the caption of “Other.” “Other” includes a former retail division, that engaged in the sale of natural foods and related products to the general public through retail storefronts on the east coast of the United States, a manufacturing division, which engages in the importing, roasting, packaging, and distributing of nuts, dried fruit, seeds, trail mixes, granola, natural and organic snack items and confections, the Company’s branded product lines, and the Company’s brokerage business, which markets various products on behalf of food vendors directly and exclusively to the Company’s customers. “Other” also includes certain corporate operating expenses that are not allocated to operating segments, which include, among other expenses, restructuring, acquisition, and integration related expenses, share-based compensation, and salaries, retainers, and other related expenses of certain officers and all directors. The Company allocates certain corporate Supervalu capital expenditures and identifiable assets to its business segments and retains certain depreciation expense related to those assets within “Other.” Non-operating expenses that are not allocated to the operating segments are under the caption of “Unallocated (Income)/Expenses.”



(in thousands)	Wholesale			Other			Eliminations			Unallocated (Income)/Expenses		Consolidated
13-Week Period Ended April 27, 2019:
Net sales⁽¹⁾	$	5,943,928		$	62,503		$	(43,811	)	$	—	$	5,962,620
Goodwill and asset impairment (adjustment) charges	(38,250		)	—			—			—		(38,250		)
Restructuring, acquisition, and integration related expenses	—			19,438			—			—		19,438
Operating income (loss)	131,888			(60,024		)	(2,183		)	—		69,681
Total other expense, net	—			—			—			44,934		44,934
Income (loss) from continuing operations before income taxes	—			—			—			—		24,747
Depreciation and amortization	63,348			8,439			—			—		71,787
Capital expenditures	56,655			161			—			—		56,816
Total assets of continuing operations	6,403,512			423,663			(40,618		)	—		6,786,557

13-Week Period Ended April 28, 2018:
Net sales	$	2,633,024		$	62,158		$	(46,303	)	$	—	$	2,648,879
Restructuring, acquisition, and integration related expenses	—			151			—			—		151
Operating income (loss)	86,633			(3,984		)	(492		)	—		82,157
Total other expense, net	—			—			—			4,323		4,323
Income (loss) from continuing operations before income taxes	—			—			—			—		77,834
Depreciation and amortization	21,261			472			—			—		21,733
Capital expenditures	13,694			417			—			—		14,111
Total assets of continuing operations	2,935,420			184,301			(40,875		)	—		3,078,846


(1)	For the third quarter of fiscal 2019, the Company recorded $233.4 million within Net sales in its wholesale reportable segment attributable to discontinued operations inter-company product purchases from its Retail operating segment, which it expects will continue subsequent to the sale of certain retail banners.



(in thousands)	Wholesale			Other			Eliminations			Unallocated (Income)/Expenses		Consolidated
39-Week Period Ended April 27, 2019:
Net sales⁽¹⁾	$	14,931,170		$	169,116		$	(120,304	)	$	—	$	14,979,982
Goodwill and asset impairment (adjustment) charges	332,621			—			—			—		332,621
Restructuring, acquisition, and integration related expenses	4			134,563			—			—		134,567
Operating income (loss)	(120,083		)	(233,961		)	(3,248		)	—		(357,292		)
Total other expense, net	—			—			—			98,689		98,689
Income (loss) from continuing operations before income taxes	—			—			—			—		(455,981		)
Depreciation and amortization	149,201			20,579			—			—		169,780
Capital expenditures	136,065			888			—			—		136,953

39-Week Period Ended April 28, 2018:
Net sales	$	7,592,352		$	175,083		$	(133,000	)	$	—	$	7,634,435
Goodwill and asset impairment (adjustment) charges	67			11,175			—			—		11,242
Restructuring, acquisition, and integration related expenses	—			151			—			—		151
Operating income (loss)	200,530			(25,124		)	2,062			—		177,468
Total other expense, net	—			—			—			10,755		10,755
Income (loss) from continuing operations before income taxes	—			—			—			—		166,713
Depreciation and amortization	64,237			1,745			—			—		65,982
Capital expenditures	27,297			2,349			—			—		29,646


(1)	For the 39-week period ended April 27, 2019, the Company recorded $520.4 million within Net sales in its wholesale reportable segment attributable to discontinued operations inter-company product purchases from its Retail operating segment, which it expects will continue subsequent to the sale of certain retail banners.