DISCONTINUED OPERATIONS (Tables)

9 Months Ended

Apr. 27, 2019

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations

The carrying amounts (in thousands) of major classes of assets and liabilities that were classified as held-for-sale on the Condensed Consolidated Balance Sheets follows in the table below. The assets and liabilities of discontinued operations were acquired as part of the Supervalu acquisition, and as of April 27, 2019, the purchase price allocation related to these assets and liabilities was preliminary and will be finalized when valuations are complete and final assessments of the fair value of other acquired assets and assumed liabilities are completed. There can be no assurance that such final assessments will not result in material changes from the preliminary purchase price allocations. Due to the recent closing of the transaction, some amounts reported are provisional pending the review of valuations obtained from third parties. The Company’s estimates and assumptions are subject to change during the measurement period (up to one year from the acquisition date), as the Company finalizes the valuations of certain tangible and intangible asset acquired and liabilities assumed. The fair value of discontinued operations, determined as of the acquisition date, includes estimated consideration expected to be received, less costs to sell. Within the Company’s determination of fair value of the respective disposal groups, the Company incorporates the impact of the fair value of off-balance sheet multiemployer pension plan obligations that it expects to sell so that long-lived assets are not reduced below their fair value.

(in thousands)	April 27, 2019
Current assets
Cash and cash equivalents	$	3,019
Receivables, net	2,182
Inventories	136,713
Other current assets	5,607
Total current assets of discontinued operations	147,521
Long-term assets
Property, plant and equipment	337,591
Intangible assets	53,486
Other assets	2,067
Total long-term assets of discontinued operations	393,143
Total assets of discontinued operations	$	540,664
Current liabilities
Accounts payable	$	55,261
Accrued compensation and benefits	39,497
Other current liabilities	21,352
Total current liabilities of discontinued operations	116,110
Long-term liabilities
Other long-term liabilities	935
Total long-term liabilities of discontinued operations	935
Total liabilities of discontinued operations	117,045
Net assets of discontinued operations	$	423,619

Operating results of discontinued operations (in thousands) are summarized below:

	13-Week Period Ended April 27, 2019			39-Week Period Ended April 27, 2019(1)
Net sales	$	640,121		$	1,413,756
Cost of sales	463,157			1,031,330
Gross profit	176,964			382,426
Operating expenses	145,191			321,777
Operating income	31,773			60,649
Interest expense	284			738
Net periodic benefit income, excluding service cost	(146		)	(304		)
Equity in earnings of unconsolidated subsidiaries	(507		)	(1,391		)
Income from discontinued operations before income taxes	32,142			61,606
Income tax provision	7,772			13,759
Income from discontinued operations, net of tax	$	24,370		$	47,847

(1) These results reflect retail operations from the Supervalu acquisition date of October 22, 2018 to April 27, 2019.