BUSINESS SEGMENTS

6 Months Ended

Feb. 01, 2020

NOTE 16—BUSINESS SEGMENTS

The Company has two operating segments aggregated under the Wholesale reportable segment: Wholesale and Canada Wholesale. In addition, the Company’s Retail operating segment is a separate reportable segment, which consists of discontinued operations disposal groups. The 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, produce, and conventional grocery and non-food products, and is also a provider 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 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, and the Company’s branded product lines. 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 capital expenditures and identifiable assets to its business segments and retains certain depreciation expense related to those assets within Other. In the first quarter of fiscal 2020, the Company changed its measurement of segment profit, which resulted in additional corporate expenses that were previously included in Other now being attributed to the Wholesale business. Prior period amounts have been recast to reflect this new measurement approach. 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 February 1, 2020:
Net sales⁽¹⁾	$	6,144,381		$	38,267		$	(45,044	)	$	—	$	6,137,604
Restructuring, acquisition and integration related expenses	11,410			18,276			—			—		29,686
Operating loss	18,745			(22,817		)	(999		)	—		(5,071		)
Total other expense, net										44,824		44,824
Loss from continuing operations before income taxes												(49,895		)
Depreciation and amortization	65,562			3,657			—			—		69,219
Capital expenditures	43,220			285						—		43,505
Total assets of continuing operations	6,622,768			633,031			(46,644		)	—		7,209,155

13-Week Period Ended January 26, 2019:
Net sales⁽²⁾	$	6,131,418		$	56,717		$	(38,929	)	$	—	$	6,149,206
Restructuring, acquisition and integration related expenses	4			47,121			—			—		47,125
Operating loss	(352,678		)	(55,138		)	(319		)	—		(408,135		)
Total other expense, net	—			—			—			46,977		46,977
Loss from continuing operations before income taxes												(455,112		)
Depreciation and amortization	69,801			3,399			—			—		73,200
Capital expenditures	63,673			83			—			—		63,756
Total assets of continuing operations	6,497,883			361,063			(36,203		)	—		6,822,743


(1)	For the second quarter of fiscal 2020, the Company recorded $251.5 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.


(2)	For the second quarter of fiscal 2019, the Company recorded $265.2 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
26-Week Period Ended February 1, 2020:
Net sales⁽¹⁾	$	12,151,476		$	102,016		$	(96,303	)	$	—	$	12,157,189
Goodwill and asset impairment charges	423,703			1,702			—			—		425,405
Restructuring, acquisition and integration related expenses	19,362			24,574			—			—		43,936
Operating loss	(397,484		)	(52,127		)	513			—		(449,098		)
Total other expense, net	—			—			—			82,912		82,912
Loss from continuing operations before income taxes	—			—			—			—		(532,010		)
Depreciation and amortization	133,761			10,599			—			—		144,360
Capital expenditures	83,349			1,278			—			—		84,627

26-Week Period Ended January 26, 2019:
Net sales⁽²⁾	$	8,988,384		$	105,471		$	(76,493	)	$	—	9,017,362
Goodwill and asset impairment charges	370,871			—			—			—		370,871
Restructuring, acquisition and integration related expenses	4			115,125			—			—		115,129
Operating loss	(292,441		)	(133,467		)	(1,065		)	—		(426,973		)
Total other expense, net	—			—			—			53,755		53,755
Loss from continuing operations before income taxes	—			—			—			—		(480,728		)
Depreciation and amortization	93,318			4,675			—			—		97,993
Capital expenditures	79,410			727			—			—		80,137


(1)	For fiscal 2020 year-to-date, the Company recorded $496.1 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.

(2)

For fiscal 2019 year-to-date, the Company recorded $287.0 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.