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BUSINESS SEGMENTS | 3 Months Ended
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Oct. 31, 2020
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 Wholesale reportable segment is the aggregation of two operating segments: U.S. Wholesale and Canada Wholesale. The U.S. Wholesale and Canada Wholesale operating segments have similar products and services, customer channels, distribution methods and economic characteristics. Reportable segments are reviewed on an annual basis, or more frequently if events or circumstances indicate a change in reportable segments has occurred. The Wholesale reportable segment is engaged in the national distribution of natural, organic, specialty, produce and conventional grocery and non-food products, and providing retail services in the United States and Canada. The Retail reportable segment derives revenues from the sale of groceries and other products at retail locations operated by the Company. 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, and the Company’s branded product lines. 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. Wholesale records revenues related to sales to Retail at gross margin rates consistent with sales to other similar wholesale customers of the acquired Supervalu business. Segment earnings include revenues and costs attributable to each of the respective business segments and allocated corporate overhead, based on the segment’s estimated consumption of corporately managed resources. 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. Non-operating expenses that are not allocated to the operating segments are included in the Other segment. In the fourth quarter of fiscal 2020, the Company updated its segment profit measure to Adjusted EBITDA. Prior period amounts have been recast to reflect this change in segment profit measure. The following table provides continuing operations net sales and Adjusted EBITDA by reportable segment and reconciles that information to Loss from continuing operations before income taxes:
|  | 13-Week Period Ended |  |
(in thousands) |  | October 31, 2020 |  | November 2, 2019 |  |  |  |
Net sales: |  |  |  |  |  |  |  |
Wholesale(1) |  | $ | 6,431,283 |  |  | $ | 6,067,307 |  |  |  |  |
Retail |  | 594,911 |  |  | 515,226 |  |  |  |  |
Other |  | 55,612 |  |  | 65,079 |  |  |  |  |
Eliminations |  | (409,199) |  |  | (351,000) |  |  |  |  |
Total Net sales |  | $ | 6,672,607 |  |  | $ | 6,296,612 |  |  |  |  |
Continuing Operations Adjusted EBITDA: |  |  |  |  |  |  |  |
Wholesale |  | $ | 122,961 |  |  | $ | 106,312 |  |  |  |  |
Retail |  | 24,282 |  |  | 10,562 |  |  |  |  |
Other |  | 4,150 |  |  | (1,597) |  |  |  |  |
Eliminations |  | 5,724 |  |  | 1,159 |  |  |  |  |
Adjustments: |  |  |  |  |  |  |  |
Net income attributable to noncontrolling interests |  | 1,367 |  |  | 519 |  |  |  |  |
Total other expense, net |  | (51,302) |  |  | (37,925) |  |  |  |  |
Depreciation and amortization |  | (77,189) |  |  | (75,141) |  |  |  |  |
Share-based compensation |  | (14,149) |  |  | (3,925) |  |  |  |  |
Restructuring, acquisition and integration related expenses |  | (16,428) |  |  | (14,672) |  |  |  |  |
Goodwill and asset impairment charges |  | — |  |  | (425,405) |  |  |  |  |
Gain on sale of assets |  | 230 |  |  | 90 |  |  |  |  |
Notes receivable charges |  | — |  |  | (12,516) |  |  |  |  |
Legal reserve charge |  | — |  |  | (1,850) |  |  |  |  |
Other retail expense |  | (1,609) |  |  | — |  |  |  |  |
Loss from continuing operations before income taxes |  | $ | (1,963) |  |  | $ | (454,389) |  |  |  |  |
Depreciation and amortization: |  |  |  |  |  |  |  |
Wholesale |  | $ | 67,821 |  |  | $ | 67,993 |  |  |  |  |
Retail |  | 7,388 |  |  | 1,458 |  |  |  |  |
Other |  | 1,980 |  |  | 5,690 |  |  |  |  |
Total depreciation and amortization |  | $ | 77,189 |  |  | $ | 75,141 |  |  |  |  |
Capital expenditures: |  |  |  |  |  |  |  |
Wholesale |  | $ | 37,991 |  |  | $ | 42,259 |  |  |  |  |
Retail |  | 3,201 |  |  | 2,676 |  |  |  |  |
Other |  | 188 |  |  | 113 |  |  |  |  |
Total capital expenditures |  | $ | 41,380 |  |  | $ | 45,048 |  |  |  |  |
(1)As presented in Note 3—Revenue Recognition, for the first quarters of fiscal 2021 and 2020, the Company recorded $357.6 million and $297.7 million, respectively, within Net sales in its Wholesale reportable segment attributable to Wholesale sales to its Retail segment that have been eliminated upon consolidation. Refer to Note 3—Revenue Recognition for additional information regarding Wholesale sales to discontinued operations. Total assets of continuing operations by reportable segment were as follows:
(in thousands) |  | October 31, 2020 |  | August 1, 2020
Assets: |  |  |  |
Wholesale |  | $ | 6,758,322 |  |  | $ | 6,588,836 |
Retail |  | 553,198 |  |  | 542,470 |
Other |  | 516,952 |  |  | 501,468 |
Eliminations |  | (52,969) |  |  | (54,784) |
Total assets of continuing operations |  | $ | 7,775,503 |  |  | $ | 7,577,990 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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