REVENUE RECOGNITION

6 Months Ended

Jan. 28, 2023

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

NOTE 3—REVENUE RECOGNITION

Disaggregation of Revenues

The Company records revenue to five customer channels within Net sales, which are described below:

•Chains, which consists of customer accounts that typically have more than 10 operating stores and excludes stores included within the Supernatural and Other channels defined below;

•Independent retailers, which includes smaller size accounts, including single store and multiple store locations, and group purchasing entities that are not classified within Chains above or Other discussed below;

•Supernatural, which consists of chain accounts that are national in scope and carry primarily natural products, and currently consists solely of one customer;

•Retail, which reflects the Company’s Retail segment, including Cub Foods and Shoppers stores, and

•Other, which includes international customers outside of Canada, foodservice, eCommerce, conventional military business and other sales.

The following tables detail the Company’s Net sales for the periods presented by customer channel for each of its segments. The Company does not record its revenues within its Wholesale reportable segment for financial reporting purposes by product group, and it is therefore impracticable for it to report them accordingly.

	Net Sales for the 13-Week Period Ended
(in millions)	January 28, 2023
Customer Channel	Wholesale		Retail		Other		Eliminations(1)		Consolidated
Chains	$	3,322	$	—	$	—	$	—	$	3,322
Independent retailers	1,980		—		—		—		1,980
Supernatural	1,659		—		—		—		1,659
Retail	—		660		—		—		660
Other	553		—		56		—		609
Eliminations	—		—		—		(414)		(414)
Total	$	7,514	$	660	$	56	$	(414)	$	7,816
	Net Sales for the 13-Week Period Ended
(in millions)	January 29, 2022
Customer Channel	Wholesale		Retail		Other		Eliminations(1)		Consolidated
Chains	$	3,243	$	—	$	—	$	—	$	3,243
Independent retailers	1,905		—		—		—		1,905
Supernatural	1,453		—		—		—		1,453
Retail	—		643		—		—		643
Other	531		—		50		—		581
Eliminations	—		—		—		(409)		(409)
Total	$	7,132	$	643	$	50	$	(409)	$	7,416
	Net Sales for the 26-Week Period Ended
(in millions)	January 28, 2023
Customer Channel	Wholesale		Retail		Other		Eliminations(1)		Consolidated
Chains	$	6,546	$	—	$	—	$	—	$	6,546
Independent retailers	3,927		—		—		—		3,927
Supernatural	3,172		—		—		—		3,172
Retail	—		1,273		—		—		1,273
Other	1,128		—		116		—		1,244
Eliminations	—		—		—		(814)		(814)
Total	$	14,773	$	1,273	$	116	$	(814)	$	15,348
	Net Sales for the 26-Week Period Ended
(in millions)	January 29, 2022
Customer Channel	Wholesale		Retail		Other		Eliminations(1)		Consolidated
Chains	$	6,325	$	—	$	—	$	—	$	6,325
Independent retailers	3,655		—		—		—		3,655
Supernatural	2,831		—		—		—		2,831
Retail	—		1,245		—		—		1,245
Other	1,055		—		106		—		1,161
Eliminations	—		—		—		(804)		(804)
Total	$	13,866	$	1,245	$	106	$	(804)	$	14,413

(1)Eliminations primarily includes the net sales elimination of Wholesale to Retail sales and the elimination of sales from segments included within Other to Wholesale.

The Company serves customers in the United States and Canada, as well as customers located in other countries. However, all of the Company’s revenue is earned in the United States and Canada, and international distribution occurs through freight-forwarders. The Company does not have any performance obligations on international shipments subsequent to delivery to the domestic port.

Accounts and Notes Receivable Balances

Accounts and notes receivable are as follows:

(in millions)	January 28, 2023		July 30, 2022
Customer accounts receivable	$	989	$	1,213
Allowance for uncollectible receivables	(17)		(18)
Other receivables, net	20		19
Accounts receivable, net	$	992	$	1,214
Notes receivable, net, included within Prepaid expenses and other current assets	$	5	$	6
Long-term notes receivable, net, included within Other long-term assets	$	10	$	12

During the second quarter of fiscal 2023, the Company entered into a purchase agreement with a third-party financial institution for the sale of certain customer accounts receivable up to a maximum outstanding amount of $300 million, without recourse, subject to eligibility criteria established by the financial institution. Pursuant to the terms of the agreement, certain customer receivables are sold to the third-party financial institution on a revolving basis, subject to certain limitations. After these sales, the Company does not retain any interest in the receivables. The Company’s continuing involvement in transferred receivables is limited to servicing the receivables.

Accounts receivable that the Company is servicing on behalf of the financial institution, which would have otherwise been outstanding as of January 28, 2023, was approximately $292 million. Net proceeds received are included within net cash provided by operating activities in the Condensed Consolidated Statements of Cash Flows in the period of sale. The loss on sale of receivables was $5 million during the second quarter of fiscal 2023 and is recorded within Loss (gain) on sale of assets in the Condensed Consolidated Statements of Operations.