REVENUE RECOGNITION

3 Months Ended

Oct. 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 defined 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)	October 28, 2023
Customer Channel	Wholesale		Retail		Other		Eliminations(1)		Consolidated
Chains	$	3,184	$	—	$	—	$	—	$	3,184
Independent retailers	1,899		—		—		—		1,899
Supernatural	1,612		—		—		—		1,612
Retail	—		606		—		—		606
Other	586		—		60		—		646
Eliminations	—		—		—		(395)		(395)
Total	$	7,281	$	606	$	60	$	(395)	$	7,552
	Net Sales for the 13-Week Period Ended
(in millions)	October 29, 2022
Customer Channel	Wholesale		Retail		Other		Eliminations(1)		Consolidated
Chains	$	3,224	$	—	$	—	$	—	$	3,224
Independent retailers	1,947		—		—		—		1,947
Supernatural	1,513		—		—		—		1,513
Retail	—		613		—		—		613
Other	575		—		60		—		635
Eliminations	—		—		—		(400)		(400)
Total	$	7,259	$	613	$	60	$	(400)	$	7,532

(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)	October 28, 2023		July 29, 2023
Customer accounts receivable	$	1,004	$	887
Allowance for uncollectible receivables	(17)		(17)
Other receivables, net	26		19
Accounts receivable, net	$	1,013	$	889
Notes receivable, net, included within Prepaid expenses and other current assets	$	4	$	3
Long-term notes receivable, net, included within Other long-term assets	$	7	$	7

During the prior year, the Company entered into an agreement to sell, on a revolving basis, certain customer accounts receivable to a third-party financial institution. Accounts receivable that the Company is servicing on behalf of the financial institution, which would have otherwise been outstanding as of October 28, 2023 and July 29, 2023, was approximately $326 million and $310 million, respectively. Net proceeds received are included within cash from 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 first quarter of fiscal 2024, and is recorded within Loss (gain) on sale of assets and other asset charges in the Condensed Consolidated Statements of Operations.