BUSINESS SEGMENTS

12 Months Ended

Jul. 29, 2023

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 three U.S geographic regions: East, Central and West, 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.

The Wholesale reportable segment is engaged in the distribution of grocery and non-food products, and provides support services 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.

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

(in millions)	2023		2022		2021
Net sales:
Wholesale(1)	$	29,142	$	27,824	$	25,873
Retail	2,480		2,468		2,442
Other	224		219		219
Eliminations	(1,574)		(1,583)		(1,584)
Total Net sales	$	30,272	$	28,928	$	26,950
Continuing operations Adjusted EBITDA:
Wholesale	$	540	$	696	$	677
Retail	70		98		98
Other	31		44		(10)
Eliminations	(1)		(9)		1
Adjustments:
Net income attributable to noncontrolling interests	6		6		6
Net periodic benefit income, excluding service cost	29		40		85
Interest expense, net	(144)		(155)		(204)
Other income, net	2		2		8
Depreciation and amortization	(304)		(285)		(285)
Share-based compensation(2)	(38)		(43)		(49)
LIFO charge	(119)		(158)		(24)
Restructuring, acquisition, and integration related expenses	(8)		(21)		(56)
(Loss) gain on sale of assets and other asset charges	(30)		87		4
Multi-employer pension plan withdrawal (charges) benefit	(1)		8		(63)
Other retail expense	(1)		—		(5)
Business transformation costs	(25)		—		—
Income from continuing operations before income taxes	$	7	$	310	$	183
Depreciation and amortization:
Wholesale	$	263	$	254	$	252
Retail	36		29		29
Other	5		2		4
Total depreciation and amortization	$	304	$	285	$	285
Payments for capital expenditures:
Wholesale	$	290	$	224	$	285
Retail	33		27		25
Total capital expenditures	$	323	$	251	$	310

(1)For fiscal 2023, 2022 and 2021, as presented in Note 3—Revenue Recognition, the Company recorded $1,331 million, $1,358 million and $1,381 million, respectively, within Net sales in its Wholesale reportable segment attributable to Wholesale to Retail sales that have been eliminated upon consolidation.

(2)Fiscal 2022 and 2021 include an immaterial amount of liability-settled share compensation expense.

Total assets by reportable segment were as follows:

(in millions)	July 29, 2023		July 30, 2022
Assets:
Wholesale	$	6,405	$	6,733
Retail	648		599
Other	377		335
Eliminations	(36)		(39)
Total assets	$	7,394	$	7,628