BUSINESS SEGMENTS

The Company has three operating segments, legacy Company wholesale, Supervalu wholesale and Canada wholesale, aggregated under the wholesale reportable segment. In addition, the Company’s Retail operating segment is a separate reportable segment, which is primarily comprised of discontinued operations activities. The legacy Company wholesale, Supervalu wholesale and Canada wholesale operating segments have similar products and services, customer channels, distribution methods and economic characteristics. The wholesale reportable segment is engaged in the national distribution of natural, organic, specialty, and conventional grocery and non-food products, and in the provision of support services in the United States and Canada. 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 former retail division, that engaged in the sale of natural foods and related products to the general public through retail storefronts on the east coast of the United States, a manufacturing division, which engages in the importing, roasting, packaging, and distributing of nuts, dried fruit, seeds, trail mixes, granola, natural and organic snack items and confections, the Company’s branded product lines, and the Company’s brokerage business, which markets various products on behalf of food vendors directly and exclusively to the Company’s customers. “Other” also includes certain corporate operating expenses that are not allocated to operating segments, which include, among other expenses, share-based compensation, and salaries, retainers, and other related expenses of certain officers and all directors. Non-operating expenses that are not allocated to the operating segments are under the caption of “Unallocated (Income)/Expenses.”



(in thousands)	Wholesale		Other			Eliminations			Unallocated (Income)/Expenses		Consolidated
13-Week Period Ended October 27, 2018:
Net sales⁽¹⁾	$	2,856,966	$	48,754		$	(37,564	)	$	—	$	2,868,156
Restructuring, acquisition, and integration related expenses	—		68,004			—			—		68,004
Operating income (loss)	60,237		(78,329		)	(746		)	—		(18,838		)
Total other expense, net	—		—			—			6,778		6,778
(Loss) income from continuing operations before income taxes	—		—			—			—		(25,616		)
Depreciation and amortization	23,517		1,276			—			—		24,793
Capital expenditures	15,737		644			—			—		16,381
Goodwill	697,797		10,153			—			—		707,950
Total assets of continuing operations	7,164,623		847,897			(39,013		)	—		7,973,507

13-Week Period Ended October 28, 2017:
Net sales	$	2,444,658	$	57,432		$	(44,545	)	$	—	$	2,457,545
Operating income (loss)	59,956		(4,591		)	(258		)	—		55,107
Total other expense, net	—		—			—			2,713		2,713
Income from continuing operations before income taxes	—		—			—			—		52,394
Depreciation and amortization	21,539		903			—			—		22,442
Capital expenditures	4,177		1,080			—			—		5,257
Goodwill	352,786		18,025			—			—		370,811
Total assets of continuing operations	2,919,476		171,239			(44,403		)	—		3,046,312


(1)	For the first quarter of fiscal 2019, the Company recorded $21.8 million within Net sales in its wholesale reportable segment attributable to discontinued operations inter-company product purchases from its Retail operating segment, which it expects will continue subsequent to the sale of certain retail banners.