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BUSINESS SEGMENTS | 6 Months Ended
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Jan. 28, 2023
Segment Reporting [Abstract] |
BUSINESS SEGMENTS | NOTE 13—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 Company organizes and operates the Wholesale reportable segment through four U.S geographic regions: Atlantic; South; Central; and Pacific; and Canada Wholesale, which is operated separately from the U.S. Wholesale business. The U.S. Wholesale and Canada Wholesale operating segments have similar products and services, customer channels, distribution methods and economic characteristics, and therefore have been aggregated into a single reportable segment. Reportable segments are reviewed on an annual basis, or more frequently if events or circumstances indicate a change in reportable segments has occurred. In fiscal 2022, the Company changed its measure of segment profit to exclude the impact of the non-cash LIFO charge or benefit from Adjusted EBITDA. Prior period Adjusted EBITDA amounts and the reconciliation to Income before income taxes have been recast to reflect this change in the measure of segment profit. The following table provides Net sales and Adjusted EBITDA by reportable segment and reconciles that information to consolidated Net sales and Income before income taxes, respectively:
|  | 13-Week Period Ended |  | 26-Week Period Ended
(in millions) |  | January 28, 2023 |  | January 29, 2022 |  | January 28, 2023 |  | January 29, 2022
Net sales: |  |  |  |  |  |  |  |
Wholesale(1) |  | $ | 7,514 |  |  | $ | 7,132 |  |  | $ | 14,773 |  |  | $ | 13,866 |
Retail |  | 660 |  |  | 643 |  |  | 1,273 |  |  | 1,245 |
Other |  | 56 |  |  | 50 |  |  | 116 |  |  | 106 |
Eliminations |  | (414) |  |  | (409) |  |  | (814) |  |  | (804) |
Total Net sales |  | $ | 7,816 |  |  | $ | 7,416 |  |  | $ | 15,348 |  |  | $ | 14,413 |
Adjusted EBITDA: |  |  |  |  |  |  |  |
Wholesale(2) |  | $ | 137 |  |  | $ | 176 |  |  | $ | 308 |  |  | $ | 351 |
Retail(2) |  | 28 |  |  | 32 |  |  | 48 |  |  | 54 |
Other |  | 15 |  |  | 12 |  |  | 34 |  |  | 16 |
Eliminations |  | 1 |  |  | — |  |  | (2) |  |  | (1) |
Adjustments: |  |  |  |  |  |  |  |
Net income attributable to noncontrolling interests |  | 3 |  |  | 2 |  |  | 4 |  |  | 3 |
Net periodic benefit income, excluding service cost |  | 7 |  |  | 10 |  |  | 14 |  |  | 20 |
Interest expense, net |  | (39) |  |  | (44) |  |  | (74) |  |  | (84) |
Other income, net |  | — |  |  | 2 |  |  | 1 |  |  | 1 |
Depreciation and amortization |  | (73) |  |  | (69) |  |  | (147) |  |  | (138) |
Share-based compensation |  | (11) |  |  | (12) |  |  | (23) |  |  | (23) |
LIFO charge(2) |  | (29) |  |  | (19) |  |  | (50) |  |  | (30) |
Restructuring, acquisition and integration related expenses |  | (3) |  |  | (5) |  |  | (5) |  |  | (8) |
(Loss) gain on sale of assets |  | (1) |  |  | (1) |  |  | 4 |  |  | (1) |
Multiemployer pension plan withdrawal benefit |  | — |  |  | 8 |  |  | — |  |  | 8 |
Other retail benefit |  | — |  |  | 1 |  |  | — |  |  | 1 |
Business transformation costs |  | (4) |  |  | — |  |  | (9) |  |  | — |
Income before income taxes |  | $ | 31 |  |  | $ | 93 |  |  | $ | 103 |  |  | $ | 169 |
Depreciation and amortization: |  |  |  |  |  |  |  |
Wholesale |  | $ | 62 |  |  | $ | 61 |  |  | $ | 126 |  |  | $ | 122 |
Retail |  | 10 |  |  | 8 |  |  | 18 |  |  | 15 |
Other |  | 1 |  |  | — |  |  | 3 |  |  | 1 |
Total depreciation and amortization |  | $ | 73 |  |  | $ | 69 |  |  | $ | 147 |  |  | $ | 138 |
Payments for capital expenditures: |  |  |  |  |  |  |  |
Wholesale |  | $ | 74 |  |  | $ | 46 |  |  | $ | 131 |  |  | $ | 98 |
Retail |  | 10 |  |  | 4 |  |  | 20 |  |  | 8 |
Total capital expenditures |  | $ | 84 |  |  | $ | 50 |  |  | $ | 151 |  |  | $ | 106 |
(1)As presented in Note 3—Revenue Recognition, the Company recorded $353 million and $356 million for the second quarters of fiscal 2023 and 2022, respectively, and $687 million and $695 million in fiscal 2023 and 2022 year-to-date, respectively, within Net sales in its Wholesale reportable segment attributable to Wholesale to Retail sales that have been eliminated upon consolidation. (2)As a result of the segment profit measurement revision discussed above, previously reported Adjusted EBITDA disclosures by segment and the reconciliation to Income before income taxes has been recast to exclude the impact of the non-cash LIFO charge. Total assets by reportable segment were as follows:
(in millions) |  | January 28, 2023 |  | July 30, 2022
Assets: |  |  |  |
Wholesale |  | $ | 6,684 |  |  | $ | 6,733 |
Retail |  | 637 |  |  | 599 |
Other |  | 352 |  |  | 335 |
Eliminations |  | (38) |  |  | (39) |
Total assets |  | $ | 7,635 |  |  | $ | 7,628 |

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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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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