XML 37 R21.htm IDEA: XBRL DOCUMENT v3.22.4
BUSINESS SEGMENTS
 6 Months Ended
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 Ended26-Week Period Ended
 (in millions)January 28, 2023January 29, 2022January 28, 2023January 29, 2022
Net sales:
Wholesale(1)
$7,514 $7,132 $14,773 $13,866 
Retail660 643 1,273 1,245 
Other56 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 
Other15 12 34 16 
Eliminations1 — (2)(1)
Adjustments:
Net income attributable to noncontrolling interests3 2 4 3 
Net periodic benefit income, excluding service cost7 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 
Retail10 8 18 15 
Other1 — 3 1 
Total depreciation and amortization$73 $69 $147 $138 
Payments for capital expenditures:
Wholesale$74 $46 $131 $98 
Retail10 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 
Retail637 599 
Other352 335 
Eliminations(38)(39)
Total assets$7,635 $7,628