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BUSINESS SEGMENTS
 12 Months Ended
Jul. 31, 2021
Segment Reporting [Abstract]  
BUSINESS SEGMENTS
NOTE 16—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 professional 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 natural branded product lines, primarily Blue Marble Brands. 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.

The following table provides continuing operations net sales and Adjusted EBITDA by reportable segment and reconciles that information to Income (loss) from continuing operations before income taxes:
(in millions)202120202019
Net sales:
Wholesale(1)
$25,873 $25,525 $21,551 
Retail
2,442 2,375 1,687 
Other
219 228 235 
Eliminations
(1,584)(1,569)(1,132)
Total Net sales$26,950 $26,559 $22,341 
Continuing operations Adjusted EBITDA:
Wholesale
$654 $593 $465 
Retail
96 88 35 
Other
(9)(16)42 
Eliminations
1 (2)(1)
Adjustments:
Net income attributable to noncontrolling interests6 5 — 
Net periodic benefit income, excluding service cost85 39 35 
Interest expense, net(204)(192)(181)
Other, net8 4 1 
Depreciation and amortization(285)(282)(248)
Share-based compensation(49)(34)(40)
Restructuring, acquisition, and integration related expenses(56)(87)(148)
Goodwill impairment charges— (425)(293)
Gain (loss) on sale of assets4 (18)1 
Multi-employer pension plan withdrawal charges(63)— — 
Note receivable charges— (13)— 
Inventory fair value adjustment— — (10)
Legal (settlement income) reserve charge— (1)1 
Other retail expense(5)(1)— 
Income (loss) from continuing operations before income taxes$183 $(342)$(341)
Depreciation and amortization:
Wholesale
$252 $267 $228 
Retail
29 4 7 
Other
4 11 13 
Total depreciation and amortization
$285 $282 $248 
Payments for capital expenditures:
Wholesale
$285 $160 $207 
Retail
25 12 21 
Other
— 1 — 
Total capital expenditures
$310 $173 $228 
(1)As presented in Note 3—Revenue Recognition, for fiscal 2021, 2020 and 2019, the Company recorded $1,381 million, $1,348 million and $958 million, respectively, within Net sales in its Wholesale reportable segment attributable to Wholesale sales to its Retail segment that have been eliminated upon consolidation. For fiscal 2021, 2020 and 2019, the Company recorded $0 million, $0 million, and $12 million, respectively, within Net sales in its Wholesale reportable segment attributable to discontinued operations inter-company product purchases for certain retail banners it sold with a supply agreement. 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 millions)July 31,
2021		August 1,
2020
Assets:
Wholesale$6,536 $6,589 
Retail566 548 
Other462 498 
Eliminations(43)(55)
Total assets of continuing operations$7,521 $7,580