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ACQUISITIONS (Tables)
 6 Months Ended
Jan. 26, 2019
Business Combinations [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The following table summarizes the consideration paid, preliminary fair values of the Supervalu assets acquired and liabilities assumed, and the resulting preliminary goodwill. Due to the recent closing of the transaction, management’s ongoing assessment of the fair values of acquired assets and liabilities, and its further review of certain disposal components being classified as held for sale, as of January 26, 2019, the purchase price allocation was preliminary and will be finalized when valuations are complete and final assessments of the fair value of other acquired assets and assumed liabilities are completed. There can be no assurance that such final assessments will not result in material changes from the preliminary purchase price allocations, and such changes may result in increases or decreases to the goodwill impairment charge recorded in the second quarter of fiscal 2019 due to changes in the opening balance sheet value of goodwill. The Company’s estimates and assumptions are subject to change during the measurement period (up to one year from the acquisition date), as the Company finalizes the valuations of certain tangible and intangible asset acquired and liabilities assumed.
 
As of October 22, 2018
(in thousands)
Preliminary as of October 27, 2018
 
Preliminary as of January 26, 2019
Cash and cash equivalents
$
25,102

 
$
25,102

Accounts receivable
557,680

 
556,562

Inventories
1,162,360

 
1,162,360

Prepaid expenses and other current assets
66,440

 
70,440

Current assets of discontinued operations(1)
196,615

 
196,615

Property, plant and equipment
1,148,001

 
1,221,925

Goodwill
347,485

 
491,695

Intangible assets(2)
1,077,541

 
885,658

Other assets(2)
109,445

 
80,105

Long-term assets of discontinued operations(1)
404,301

 
442,701

Accounts payable
(967,429
)
 
(972,340
)
Other current liabilities
(282,692
)
 
(327,713
)
Current portion of long term debt and capital lease obligations
(579,677
)
 
(579,677
)
Current liabilities of discontinued operations(1)
(150,611
)
 
(150,690
)
Long-term debt and capital lease obligations(3)
(179,262
)
 
(138,163
)
Pension and other postretirement benefit obligations
(234,324
)
 
(234,324
)
Deferred income taxes
(177,231
)
 
(100,612
)
Other long-term liabilities(3)
(200,913
)
 
(306,816
)
Long-term liabilities of discontinued operations(1)
(1,401
)
 
(1,398
)
Total fair value of net assets acquired
2,321,430

 
2,321,430

Plus: noncontrolling interests
1,633

 
1,633

Less: cash and cash equivalents(4)
(30,596
)
 
(30,596
)
Less: assumed equity award liabilities
(18,638
)
 
(18,638
)
Plus: cash paid for equity awards
—

 
8,105

Total consideration paid in cash
2,273,829

 
2,281,934

Plus: unpaid assumed equity award liabilities(5)
18,638

 
10,533

Total consideration
$
2,292,467

 
$
2,292,467

(1)
Refer to Note 18. “Discontinued Operations” for additional Condensed Consolidated Balance Sheets information regarding the carrying value of discontinued operations at the end of the second quarter of fiscal 2019, subsequent to the acquisition date.
(2)
During the second quarter of fiscal 2019, the Company reclassified favorable operating lease intangible assets from Other assets to in Intangible assets within this table.
(3)
During the second quarter of fiscal 2019, the Company reclassified residual financing obligations associated with build-to-suit properties for which the Company is not obligated to fund unless it is obligated under a future extension of a lease agreement. This reclassification resulted in a reduction of Long-term debt and capital lease obligations of $23.8 million, with an offsetting increase in Other long-term liabilities assumed within this table. If the terms of the respective leases are extended and a cash obligation for a portion of this residual value balance exists, the Company will present these contractual obligations within Long-term capital lease obligations within the Condensed Consolidated Balance Sheets.
(4)
Includes cash and cash equivalents acquired attributable to discontinued operations.
(5)
Includes equity consideration for share-based awards that have not yet been paid, which reflects non-cash consideration for the second quarter of fiscal 2019 that will become cash consideration in subsequent periods.
Schedule of Finite-Lived Intangible Assets Acquired
The following table summarizes the identifiable intangible assets recorded based on provisional valuations. The identifiable intangible assets are expected to be amortized on a straight-line basis over the estimated useful lives indicated. The preliminary fair value of identifiable intangible assets acquired was determined using income approaches. Significant assumptions utilized in the income approach were based on Company-specific information and projections, which are not observable in the market and are thus considered Level 3 measurements as defined by authoritative guidance.
 
 
 
As of October 22, 2018
(in thousands)
Estimated Useful Life
 
Continuing Operations
 
Discontinued Operations
Customer relationship assets
11–19 years
 
$
785,000

 
$
—

Favorable operating leases
3–25 years
 
23,658

 
—

Tradenames
2-9 years
 
66,000

 
17,000

Pharmacy prescription files
5–7 years
 
—

 
41,100

Non-compete agreement
2 years
 
11,000

 
—

Unfavorable operating leases
2 years
 
(20,777
)
 
—

Total Supervalu finite-lived intangibles acquired
 
 
$
864,881

 
$
58,100
Schedule of Unaudited Pro Forma Information
The following table presents unaudited supplemental pro forma consolidated Net sales and Net income from continuing operations based on Supervalu’s historical reporting periods as if the acquisition had occurred as of July 30, 2017:
 
13-Week Period Ended
 
26-Week Period Ended
(in thousands, except per share data)
January 27, 2018(2)
 
January 26, 2019(1)
 
January 27, 2018(2)
Net sales
$
6,159,106

 
$
12,134,176

 
$
12,056,161

Net loss from continuing operations
$
(25,388
)
 
$
(411,196
)
 
$
(34,349
)
Basic net loss from continuing operations per share
$
(0.50
)
 
$
(8.11
)
 
$
(0.68
)
Diluted net loss from continuing operations per share
$
(0.50
)
 
$
(8.11
)
 
$
(0.68
)
(1)
These pro forma results reflect an additional 12 weeks from Supervalu for the period ended, September 8, 2018.
(2)
These pro forma results reflect Supervalu’s and Associated Grocers of Florida, Inc.’s, which was acquired by Supervalu on December 8, 2017, 13-week and 26-week periods ended December 2, 2017, respectively.