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REVENUE RECOGNITION
6 Months Ended
Feb. 01, 2020
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION
NOTE 3—REVENUE RECOGNITION

Disaggregation of Revenues

The Company records revenue to four customer channels, which are described below:

Supernatural, which consists of chain accounts that are national in scope and carry primarily natural products, and currently consists solely of Whole Foods Market.
Supermarkets, which include accounts that also carry conventional products, and include chain accounts, supermarket independents, and gourmet and ethnic specialty stores.
Independents, which include single store and chain accounts (excluding supernatural, as defined above), which carry primarily natural products and buying clubs of consumer groups joined to buy products.
Other, which includes conventional military business, international customers outside of Canada, as well as sales to Amazon.com, Inc., e-commerce, and foodservice

The following tables detail the Company’s revenue recognition for the periods presented by customer channel for each of its segments. The Company does not record its revenues within its wholesale reportable segment for financial reporting purposes by product group, and it is therefore impracticable for it to report them accordingly.
 
 
Net Sales for the 13-Week Period Ended
(in millions)
 
February 1, 2020
Customer Channel
 
Wholesale
 
Other
 
Eliminations
 
Consolidated
Supermarkets
 
$
3,879

 
$

 
$

 
$
3,879

Supernatural
 
1,210

 

 

 
1,210

Independents
 
631

 

 

 
631

Other
 
425

 
38

 
(45
)
 
418

Total
 
$
6,145

 
$
38

 
$
(45
)
 
$
6,138

 
 
 
 
 
 
 
 
 
 
 
Net Sales for the 13-Week Period Ended
(in millions)
 
January 26, 2019(1)
Customer Channel
 
Wholesale
 
Other
 
Eliminations
 
Consolidated
Supermarkets
 
$
3,928

 
$

 
$

 
$
3,928

Supernatural
 
1,100

 

 

 
1,100

Independents
 
675

 

 

 
675

Other
 
428

 
57

 
(39
)
 
446

Total
 
$
6,131

 
$
57

 
$
(39
)
 
$
6,149

 
 
 
 
 
 
 
 
 
 
 
Net Sales for the 26-Week Period Ended
(in millions)
 
February 1, 2020(1)
Customer Channel
 
Wholesale
 
Other
 
Eliminations
 
Consolidated
Supermarkets
 
$
7,648

 
$

 
$

 
$
7,648

Supernatural
 
2,321

 

 

 
$
2,321

Independents
 
1,299

 

 

 
1,299

Other
 
883

 
102

 
(96
)
 
889

Total
 
$
12,151

 
$
102

 
$
(96
)
 
$
12,157

 
 
 
 
 
 
 
 
 
 
 
Net Sales for the 26-Week Period Ended
(in millions)
 
January 26, 2019(1)
Customer Channel
 
Wholesale
 
Other
 
Eliminations
 
Consolidated
Supermarkets
 
$
4,858

 
$

 
$

 
$
4,858

Supernatural
 
2,127

 

 

 
2,127

Independents
 
1,334

 

 

 
1,334

Other
 
668

 
106

 
(76
)
 
698

Total
 
$
8,987

 
$
106

 
$
(76
)
 
$
9,017


(1)
During the first quarter of fiscal 2020, the presentation of net sales by customer channel was adjusted to reflect reclassification of customer types resulting from management’s determination that a customer serviced by both Supervalu and legacy UNFI should be classified as a Supermarket customer given that customer’s operations. During the second quarter of fiscal 2020, the presentation of net sales by customer channel was adjusted to reflect conventional military sales within Other instead of Independents based on management’s determination to better reflect the focus of its ongoing business and the definition of customer channels above. There was no impact to the Condensed Consolidated Statements of Operations as a result of the reclassification of customer types. As a result of these adjustments, net sales to the Company’s Supermarkets channel for the second quarter of fiscal 2019 and for fiscal 2019 year-to-date increased approximately $26 million and $51 million, respectively, compared to the previously reported amounts, while net sales to the Other channel for the second quarter of fiscal 2019 and for fiscal 2019 year-to-date increased $109 million and $117 million, respectively, compared to previously reported amounts. Net sales to the Company’s Independents channel for the second quarter of fiscal 2019 and fiscal 2019 year-to-date decreased $135 million and $168 million, respectively, compared to the previously reported amounts. In addition, net sales to the Company’s Other channel for the first quarter of fiscal 2020 increased $90 million compared to the previously reported amounts, with an offsetting elimination to the Independents channel.

The Company serves customers in the United States and Canada, as well as customers located in other countries. However, all of the Company’s revenue is earned in the U.S. and Canada, as international distribution occurs through freight-forwarders. The Company does not have any performance obligations related to international shipments subsequent to delivery to the domestic port.

Sales from the Company’s Wholesale segment to its retail discontinued operations are presented within Net Sales when the Company holds the business for sale with a supply agreement that it anticipates the sale of the retail banner to include upon its disposal. The Company recorded $251.5 million and $265.2 million within Net sales from continuing operations attributable to discontinued operations inter-company product purchases in the second quarters of fiscal 2020 and 2019, respectively, and $496.1 million and $287.0 million for fiscal 2020 and 2019 year-to-date, respectively, which the Company expects will continue subsequent to the sale of certain retail banners. These amounts were recorded at gross margin rates consistent with sales to other similar wholesale customers of the acquired Supervalu business. No sales were recorded within continuing operations for purchases by retail banners that the Company expects to dispose of without a supply agreement, which were eliminated upon consolidation within continuing operations and amounted to $96.6 million and $153.6 million in the second quarters of fiscal 2020 and 2019, respectively, and $209.6 million and $163.4 million in fiscal 2020 and 2019 year-to-date, respectively.

Contract Balances

Accounts and notes receivable are as follows:
(in thousands)
 
February 1, 2020
 
August 3, 2019
Customer accounts receivable
 
$
1,111,173

 
$
1,063,167

Allowance for uncollectible receivables
 
(59,724
)
 
(20,725
)
Other receivables, net
 
23,492

 
23,257

Accounts receivable, net
 
$
1,074,941

 
$
1,065,699

 
 
 
 
 
Customer notes receivable, net, included within Prepaid expenses and other current assets
 
$
12,878

 
$
11,912

Long-term notes receivable, net, included within Other assets
 
$
24,344

 
$
34,408