XML 37 R22.htm IDEA: XBRL DOCUMENT v3.21.1
BUSINESS SEGMENTS
9 Months Ended
May 01, 2021
Segment Reporting [Abstract]  
BUSINESS SEGMENTS
NOTE 14—BUSINESS SEGMENTS

The Company has two reportable segments: Wholesale and Retail. These reportable segments are two distinct businesses, each with a different customer base, marketing strategy and management structure. The Wholesale reportable segment is the aggregation of two operating segments: U.S. Wholesale and Canada Wholesale. The U.S. Wholesale and Canada Wholesale operating segments have similar products and services, customer channels, distribution methods and economic characteristics. Reportable segments are reviewed on an annual basis, or more frequently if events or circumstances indicate a change in reportable segments has occurred.

The Wholesale reportable segment is engaged in the national distribution of natural, organic, specialty, produce and conventional grocery and non-food products, and providing professional services in the United States and Canada. The Retail reportable segment derives revenues from the sale of groceries and other products at retail locations operated by the Company. 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. Wholesale records revenues related to sales to Retail at gross margin rates consistent with sales to other similar wholesale customers of the acquired Supervalu business.

Segment earnings include revenues and costs attributable to each of the respective business segments and allocated corporate overhead, based on the segment’s estimated consumption of corporately managed resources. 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. Non-operating expenses that are not allocated to the operating segments are included in the Other segment. In the fourth quarter of fiscal 2020, the Company updated its segment profit measure to Adjusted EBITDA. Prior period amounts have been recast to reflect this change in segment profit measure.

The following table provides continuing operations net sales and Adjusted EBITDA by reportable segment and reconciles that information to Income (loss) from continuing operations before income taxes:
13-Week Period Ended39-Week Period Ended
 (in thousands)May 1, 2021May 2, 2020May 1, 2021May 2, 2020
Net sales:
Wholesale(1)
$6,359,810 $6,749,984 $19,399,868 $19,024,209 
Retail578,246 636,887 1,794,028 1,690,742 
Other54,808 58,359 165,848 164,511 
Eliminations(373,022)(413,512)(1,179,162)(1,119,750)
Total Net sales$6,619,842 $7,031,718 $20,180,582 $19,759,712 
Continuing Operations Adjusted EBITDA:
Wholesale$161,073 $199,884 $470,802 $408,650 
Retail21,547 36,931 71,159 58,921 
Other85 (17,247)(3,610)(4,419)
Eliminations(5,375)53 (1,429)547 
Adjustments:
Net income attributable to noncontrolling interests1,394 2,238 4,366 3,407 
Total other expense, net(25,383)(32,669)(108,828)(114,933)
Depreciation and amortization(66,365)(69,642)(210,088)(214,002)
Share-based compensation(11,668)(12,992)(38,490)(22,051)
Restructuring, acquisition and integration related expenses(9,867)(14,557)(44,078)(65,751)
Goodwill and asset impairment charges— — — (425,405)
Gain (loss) on sale of assets25 (351)(144)(785)
Notes receivable charges— — — (12,516)
Legal reserve charge— — — (1,196)
Other retail expense(355)— (3,358)— 
Income (loss) from continuing operations before income taxes$65,111 $91,648 $136,302 $(389,533)
Depreciation and amortization:
Wholesale$58,136 $66,754 $184,723 $200,515 
Retail6,776 611 20,928 2,912 
Other1,453 2,277 4,437 10,575 
Total depreciation and amortization$66,365 $69,642 $210,088 $214,002 
Capital expenditures:
Wholesale$66,282 $33,456 $150,155 $119,085 
Retail7,512 2,131 14,822 7,426 
Other147 88 480 292 
Total capital expenditures$73,941 $35,675 $165,457 $126,803 
(1)As presented in Note 3—Revenue Recognition, for the third quarters of fiscal 2021 and 2020, the Company recorded $323.5 million and $352.8 million, respectively, and $1,026.4 million and $958.6 million in fiscal 2021 and 2020 year-to-date, respectively, within Net sales in its Wholesale reportable segment attributable to Wholesale sales to its Retail segment that have been eliminated upon consolidation. Refer to Note 3—Revenue Recognition for additional information regarding Wholesale sales to discontinued operations.
Total assets of continuing operations by reportable segment were as follows:
(in thousands)May 1,
2021
August 1,
2020
Assets:
Wholesale$6,580,627 $6,588,836 
Retail560,725 542,470 
Other436,251 501,468 
Eliminations(63,108)(54,784)
Total assets of continuing operations$7,514,495 $7,577,990