BUSINESS SEGMENTS

3 Months Ended

Nov. 02, 2019

NOTE 15—BUSINESS SEGMENTS

The Company has two operating segments aggregated under the Wholesale reportable segment: Wholesale and Canada Wholesale. In addition, the Company’s Retail operating segment is a separate reportable segment, which consists of discontinued operations disposal groups. The 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, produce, and conventional grocery and non-food products, and is also a provider 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 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. The Company allocates certain corporate capital expenditures and identifiable assets to its business segments and retains certain depreciation expense related to those assets within Other. In the first quarter of fiscal 2020, the Company changed its measurement of segment profit, which resulted in additional Supervalu-related corporate expenses that were previously included in Other now being attributed to the Wholesale business. The change is immaterial with respect to the results presented in the first quarter of fiscal 2019, given the five day time period between the acquisition date and the end of the first quarter of fiscal 2019. 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 November 2, 2019:
Net sales⁽¹⁾	$	6,007,095		$	63,749		$	(51,259	)	$	—	$	6,019,585
Goodwill and asset impairment charges	423,703			1,702			—			—		425,405
Restructuring, acquisition and integration related expenses	7,952			6,298			—			—		14,250
Operating loss	(416,229		)	(29,310		)	1,512			—		(444,027		)
Total other expense, net	—			—			—			38,088		38,088
Loss from continuing operations before income taxes												(482,115		)
Depreciation and amortization	68,199			6,942			—			—		75,141
Capital expenditures	40,129			993			—			—		41,122
Total assets of continuing operations	6,996,425			513,174			(45,855		)	—		7,463,744

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


(1)	For the first quarter of fiscal 2020, the Company recorded $244.6 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.

(2)

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.