BUSINESS SEGMENTS

12 Months Ended

Jul. 30, 2022

Segment Reporting [Abstract]

BUSINESS SEGMENTS

NOTE 16—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 Company organizes and operates the Wholesale reportable segment through four U.S geographic regions: Atlantic; South; Central and Pacific, and Canada Wholesale, which is operated separately from the U.S. Wholesale business. 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 distribution of grocery and non-food products, and support services provider to retailers 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 single location food manufacturing business, 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 natural branded product lines, primarily Blue Marble Brands. 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.

Segment earnings include revenues and costs attributable to each of the respective business segments and certain allocated corporate overhead, based on the segment’s estimated consumption of corporately managed resources. The Company’s measure of segment profit is Adjusted EBITDA, as disclosed below. 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 fiscal 2022, the Company changed its measure of segment profit to exclude the non-cash LIFO charge or benefit from Adjusted EBITDA. Prior period Adjusted EBITDA amounts and the reconciliation to Income (loss) from continuing operations before income taxes have been recast to reflect this change in the measure of segment profit.

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:

(in millions)	2022		2021		2020
Net sales:
Wholesale(1)	$	27,824	$	25,873	$	25,525
Retail	2,468		2,442		2,375
Other	219		219		228
Eliminations	(1,583)		(1,584)		(1,569)
Total Net sales	$	28,928	$	26,950	$	26,559
Continuing operations Adjusted EBITDA:
Wholesale	$	696	$	677	$	610
Retail	98		98		89
Other	44		(10)		(16)
Eliminations	(9)		1		(2)
Adjustments:
Net income attributable to noncontrolling interests	6		6		5
Net periodic benefit income, excluding service cost	40		85		39
Interest expense, net	(155)		(204)		(192)
Other, net	2		8		4
Depreciation and amortization	(285)		(285)		(282)
Share-based compensation(2)	(43)		(49)		(34)
LIFO charge(3)	(158)		(24)		(18)
Restructuring, acquisition, and integration related expenses	(21)		(56)		(87)
Goodwill impairment charges	—		—		(425)
Gain (loss) on sale of assets	87		4		(18)
Multi-employer pension plan withdrawal benefit (charges)	8		(63)		—
Note receivable charges	—		—		(13)
Legal settlement income	—		—		(1)
Other retail expense	—		(5)		(1)
Income (loss) from continuing operations before income taxes	$	310	$	183	$	(342)
Depreciation and amortization:
Wholesale	$	254	$	252	$	267
Retail	29		29		4
Other	2		4		11
Total depreciation and amortization	$	285	$	285	$	282
Payments for capital expenditures:
Wholesale	$	224	$	285	$	160
Retail	27		25		12
Other	—		—		1
Total capital expenditures	$	251	$	310	$	173

(1)For fiscal 2022, 2021 and 2020, the Company recorded $1,358 million, $1,381 million and $1,348 million, respectively, within Net sales in its Wholesale reportable segment attributable to Wholesale sales to its Retail segment that have been eliminated upon consolidation.

(2)Includes an immaterial amount of liability-settled share compensation expense.

(3)As a result of the segment profit measurement revision discussed above, previously reported Adjusted EBITDA disclosures by segment and the reconciliation to Income from continuing operations before income taxes has been recast to exclude the impact of the non-cash LIFO charge.

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

(in millions)	July 30, 2022		July 31, 2021
Assets:
Wholesale	$	6,733	$	6,536
Retail	599		566
Other	335		462
Eliminations	(39)		(43)
Total assets	$	7,628	$	7,521