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, restructuring, acquisition, and integration related 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 January 26, 2019:
Net sales⁽¹⁾	$	6,130,276		$	57,859		$	(38,929	)	$	—	$	6,149,206
Goodwill and asset impairment charges	370,871			—			—			—		370,871
Restructuring, acquisition, and integration related expenses	4			47,121			—			—		47,125
Operating income (loss)	(312,208		)	(95,608		)	(319		)	—		(408,135		)
Total other expense, net	—			—			—			46,977		46,977
(Loss) income from continuing operations before income taxes	—			—			—			—		(455,112		)
Depreciation and amortization	62,336			10,864			—			—		73,200
Capital expenditures	63,673			83			—			—		63,756
Total assets of continuing operations	6,497,883			361,063			(36,203		)	—		6,822,743

13-Week Period Ended January 27, 2018:
Net sales	$	2,514,670		$	55,493		$	(42,152	)	$	—	$	2,528,011
Goodwill and asset impairment charges	67			11,175			—			—		11,242
Operating income (loss)	53,941			(16,549		)	2,812			—		40,204
Total other expense, net	—			—			—			3,719		3,719
(Loss) income from continuing operations before income taxes	—			—			—			—		36,485
Depreciation and amortization	21,437			370			—			—		21,807
Capital expenditures	9,426			852			—			—		10,278
Total assets of continuing operations	2,909,175			183,180			(42,675		)	—		3,049,680


(1)	For the second quarter of fiscal 2019, the Company recorded $265.2 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.



(in thousands)	Wholesale			Other			Eliminations			Unallocated (Income)/Expenses		Consolidated
26-Week Period Ended January 26, 2019:
Net sales⁽¹⁾	$	8,987,242		$	106,613		$	(76,493	)	$	—	$	9,017,362
Goodwill and asset impairment charges	370,871			—			—			—		370,871
Restructuring, acquisition, and integration related expenses	4			115,125			—			—		115,129
Operating income (loss)	(251,971		)	(173,937		)	(1,065		)	—		(426,973		)
Total other expense, net	—			—			—			53,755		53,755
(Loss) income from continuing operations before income taxes	—			—			—			—		(480,728		)
Depreciation and amortization	85,853			12,140			—			—		97,993
Capital expenditures	79,410			727			—			—		80,137

26-Week Period Ended January 27, 2018:
Net sales	$	4,959,328		$	112,925		$	(86,697	)	$	—	$	4,985,556
Goodwill and asset impairment charges	67			11,175			—			—		11,242
Operating income (loss)	113,897			(21,140		)	2,554			—		95,311
Total other expense, net	—			—			—			6,432		6,432
(Loss) income from continuing operations before income taxes	—			—			—			—		88,879
Depreciation and amortization	42,976			1,273			—			—		44,249
Capital expenditures	13,607			1,928			—			—		15,535


(1)	For the 26-week period ended January 26, 2019, the Company recorded $287.0 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.