BUSINESS SEGMENTS

9 Months Ended

May 02, 2020

NOTE 16—BUSINESS SEGMENTS

The Company has two operating segments aggregated under the Wholesale reportable segment: U.S. 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 U.S. 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, 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. 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 corporate expenses that were previously included in Other now being attributed to the Wholesale business. Prior period amounts have been recast to reflect this new measurement approach. 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 May 2, 2020:
Net sales⁽¹⁾	$	6,670,044		$	56,361		$	(58,724	)	$	—	$	6,667,681
Restructuring, acquisition and integration related expenses	4,030			6,419			—			—		10,449
Operating income (loss)	119,809			(47,505		)	(599		)	—		71,705
Total other expense, net	—			—			—			33,377		33,377
Income (loss) from continuing operations before income taxes												38,328
Depreciation and amortization	66,754			2,888			—			—		69,642
Capital expenditures	33,216			402			—			—		33,618
Total assets of continuing operations	6,686,382			614,356			(50,076		)	—		7,250,662

13-Week Period Ended April 27, 2019:
Net sales⁽²⁾	$	5,944,521		$	61,910		$	(43,811	)	$	—	$	5,962,620
Goodwill and asset impairment (adjustment) charges	(38,250		)	—			—			—		(38,250		)
Restructuring, acquisition and integration related expenses	—			19,438			—			—		19,438
Operating income (loss)	103,142			(31,278		)	(2,183		)	—		69,681
Total other expense, net	—			—			—			44,934		44,934
Income (loss) from continuing operations before income taxes												24,747
Depreciation and amortization	63,375			8,412			—			—		71,787
Capital expenditures	56,655			161			—			—		56,816
Total assets of continuing operations	6,403,512			423,663			(40,618		)	—		6,786,557


(1)	For the third quarter of fiscal 2020, the Company recorded $273.2 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 third quarter of fiscal 2019, the Company recorded $227.1 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.



(in thousands)	Wholesale			Other			Eliminations			Unallocated (Income)/Expenses		Consolidated
39-Week Period Ended May 2, 2020:
Net sales⁽¹⁾	$	18,821,520		$	158,377		$	(155,027	)	$	—	$	18,824,870
Goodwill and asset impairment (adjustment) charges	423,703			1,702			—			—		425,405
Restructuring, acquisition and integration related expenses	23,392			30,993			—			—		54,385
Operating income (loss)	(277,675		)	(99,632		)	(86		)	—		(377,393		)
Total other expense, net	—			—			—			116,289		116,289
Income (loss) from continuing operations before income taxes	—			—			—			—		(493,682		)
Depreciation and amortization	200,515			13,487			—			—		214,002
Capital expenditures	116,565			1,680			—			—		118,245

39-Week Period Ended April 27, 2019:
Net sales⁽²⁾	$	14,932,905		$	167,381		$	(120,304	)	$	—	14,979,982
Goodwill and asset impairment (adjustment) charges	332,621			—			—			—		332,621
Restructuring, acquisition and integration related expenses	4			134,563			—			—		134,567
Operating income (loss)	(189,299		)	(164,745		)	(3,248		)	—		(357,292		)
Total other expense, net	—			—			—			98,689		98,689
Income (loss) from continuing operations before income taxes	—			—			—			—		(455,981		)
Depreciation and amortization	156,693			13,087			—			—		169,780
Capital expenditures	136,065			888			—			—		136,953


(1)	For fiscal 2020 year-to-date, the Company recorded $756.9 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 fiscal 2019 year-to-date, the Company recorded $505.5 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.