BUSINESS SEGMENTS

3 Months Ended

Oct. 28, 2023

Segment Reporting [Abstract]

BUSINESS SEGMENTS

NOTE 14—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 following table provides information by reportable segment, including Net sales, Adjusted EBITDA, with a reconciliation to (Loss) income before income taxes, depreciation and amortization, and payments for capital expenditures:

	13-Week Period Ended
(in millions)	October 28, 2023		October 29, 2022
Net sales:
Wholesale(1)	$	7,281	$	7,259
Retail	606		613
Other	60		60
Eliminations	(395)		(400)
Total Net sales	$	7,552	$	7,532
Adjusted EBITDA:
Wholesale	$	117	$	171
Retail	(1)		20
Other	3		19
Eliminations	(2)		(3)
Adjustments:
Net income attributable to noncontrolling interests	—		1
Net periodic benefit income, excluding service cost	3		7
Interest expense, net	(35)		(35)
Other income, net	—		1
Depreciation and amortization	(78)		(74)
Share-based compensation	(6)		(12)
LIFO charge	(7)		(21)
Restructuring, acquisition and integration related expenses	(4)		(2)
(Loss) gain on sale of assets and other asset charges	(19)		5
Business transformation costs	(15)		(5)
Other adjustments	(4)		—
(Loss) income before income taxes	$	(48)	$	72
Depreciation and amortization:
Wholesale	$	67	$	64
Retail	8		8
Other	3		2
Total depreciation and amortization	$	78	$	74
Payments for capital expenditures:
Wholesale	$	71	$	57
Retail	3		10
Total capital expenditures	$	74	$	67

(1)As presented in Note 3—Revenue Recognition, the Company recorded $321 million and $334 million for the first quarters of fiscal 2024 and 2023, respectively, within Net sales in its Wholesale reportable segment attributable to Wholesale to Retail sales that have been eliminated upon consolidation.

Total assets by reportable segment were as follows:

(in millions)	October 28, 2023		July 29, 2023
Assets:
Wholesale	$	6,858	$	6,405
Retail	649		648
Other	380		377
Eliminations	(39)		(36)
Total assets	$	7,848	$	7,394