BUSINESS SEGMENTS

6 Months Ended

Jan. 29, 2022

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 following table provides continuing operations information by reportable segment, including Net sales, Adjusted EBITDA with a reconciliation to Income from continuing operations before income taxes, depreciation and amortization, and payments for capital expenditures:

	13-Week Period Ended				26-Week Period Ended
(in millions)	January 29, 2022		January 30, 2021		January 29, 2022		January 30, 2021
Net sales:
Wholesale(1)	$	7,132	$	6,618	$	13,866	$	13,056
Retail	643		633		1,245		1,239
Other	50		55		106		111
Eliminations	(409)		(406)		(804)		(822)
Total Net sales	$	7,416	$	6,900	$	14,413	$	13,584
Continuing Operations Adjusted EBITDA:
Wholesale	$	159	$	188	$	323	$	311
Retail	30		26		52		51
Other	12		(8)		16		(4)
Eliminations	—		(2)		(1)		4
Adjustments:
Net income attributable to noncontrolling interests	2		2		3		3
Net periodic benefit income, excluding service cost	10		17		20		34
Interest expense, net	(44)		(51)		(84)		(120)
Other, net	2		2		1		3
Depreciation and amortization	(69)		(67)		(138)		(144)
Share-based compensation	(12)		(13)		(23)		(27)
Restructuring, acquisition and integration related expenses	(5)		(18)		(8)		(34)
Loss on sale of assets	(1)		—		(1)		—
Multi-employer pension plan withdrawal benefit	8		—		8		—
Other retail benefit (expense)	1		(1)		1		(3)
Income from continuing operations before income taxes	$	93	$	75	$	169	$	74
Depreciation and amortization:
Wholesale	$	61	$	59	$	122	$	127
Retail	8		7		15		14
Other	—		1		1		3
Total depreciation and amortization	$	69	$	67	$	138	$	144
Payments for capital expenditures:
Wholesale	$	46	$	46	$	98	$	84
Retail	4		5		8		8
Total capital expenditures	$	50	$	51	$	106	$	92

(1)As presented in Note 3—Revenue Recognition, for the second quarters of fiscal 2022 and 2021, the Company recorded $356 million and $354 million, respectively, and $695 million and $719 million in fiscal 2022 and 2021 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.

Total assets of continuing operations by reportable segment were as follows:

(in millions)	January 29, 2022		July 31, 2021
Assets:
Wholesale	$	6,851	$	6,536
Retail	597		566
Other	397		462
Eliminations	(44)		(43)
Total assets of continuing operations	$	7,801	$	7,521