BUSINESS SEGMENTS

3 Months Ended

Oct. 29, 2022

Segment Reporting [Abstract]

BUSINESS SEGMENTS

NOTE 13—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, and therefore have been aggregated into a single reportable segment. Reportable segments are reviewed on an annual basis, or more frequently if events or circumstances indicate a change in reportable segments has occurred.

In fiscal 2022, the Company changed its measure of segment profit to exclude the impact of the non-cash LIFO charge or benefit from Adjusted EBITDA. Prior-period Adjusted EBITDA amounts and the reconciliation to Income before income taxes have been recast to reflect this change in the measure of segment profit.

The following table provides Net sales and Adjusted EBITDA by reportable segment and reconciles that information to consolidated Net sales and Income before income taxes, respectively:

	13-Week Period Ended
(in millions)	October 29, 2022		October 30, 2021
Net sales:
Wholesale(1)	$	7,259	$	6,734
Retail	613		602
Other	60		56
Eliminations	(400)		(395)
Total Net sales	$	7,532	$	6,997
Adjusted EBITDA:
Wholesale(2)	$	171	$	175
Retail(2)	20		22
Other	19		4
Eliminations	(3)		(1)
Adjustments:
Net income attributable to noncontrolling interests	1		1
Net periodic benefit income, excluding service cost	7		10
Interest expense, net	(35)		(40)
Other (income) expense, net	1		(1)
Depreciation and amortization	(74)		(69)
Share-based compensation	(12)		(11)
LIFO charge(2)	(21)		(11)
Restructuring, acquisition and integration related expenses	(2)		(3)
Gain on sale of assets	5		—
Other(3)	(5)		—
Income before income taxes	$	72	$	76
Depreciation and amortization:
Wholesale	$	64	$	61
Retail	8		7
Other	2		1
Total depreciation and amortization	$	74	$	69
Payments for capital expenditures:
Wholesale	$	57	$	52
Retail	10		4
Total capital expenditures	$	67	$	56

(1)As presented in Note 3—Revenue Recognition, for the first quarters of fiscal 2023 and 2022, the Company recorded $334 million and $339 million, respectively, within Net sales in its Wholesale reportable segment attributable to Wholesale to Retail sales that have been eliminated upon consolidation.

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

(3)Includes costs for certain technology-related initiatives.

Total assets by reportable segment were as follows:

(in millions)	October 29, 2022		July 30, 2022
Assets:
Wholesale	$	7,261	$	6,733
Retail	631		599
Other	352		335
Eliminations	(45)		(39)
Total assets	$	8,199	$	7,628