REVENUE RECOGNITION

9 Months Ended

Apr. 27, 2024

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

NOTE 3—REVENUE RECOGNITION

Disaggregation of Revenues

The Company records revenue to five customer channels within Net sales, which are described below:

•Chains, which consists of customer accounts that typically have more than 10 operating stores and excludes stores included within the Supernatural and Other channels defined below;

•Independent retailers, which includes smaller size accounts including single store and multiple store locations, and group purchasing entities that are not classified within Chains above or Other defined below;

•Supernatural, which consists of chain accounts that are national in scope and carry primarily natural products, and currently consists solely of one customer;

•Retail, which reflects the Company’s Retail segment, including Cub® Foods and Shoppers® stores; and

•Other, which includes international customers outside of Canada, foodservice, eCommerce, conventional military business and other sales.

The following tables detail the Company’s Net sales for the periods presented by customer channel for each of its segments. The Company does not record its revenues within its Wholesale reportable segment for financial reporting purposes by product group, and it is therefore impracticable for it to report them accordingly.

	Net Sales for the 13-Week Period Ended
(in millions)	April 27, 2024
Customer Channel	Wholesale		Retail		Other		Eliminations(1)		Consolidated
Chains	$	3,092	$	—	$	—	$	—	$	3,092
Independent retailers	1,816		—		—		—		1,816
Supernatural	1,734		—		—		—		1,734
Retail	—		571		—		—		571
Other	594		—		50		—		644
Eliminations	—		—		—		(359)		(359)
Total	$	7,236	$	571	$	50	$	(359)	$	7,498
	Net Sales for the 13-Week Period Ended
(in millions)	April 29, 2023
Customer Channel	Wholesale		Retail		Other		Eliminations(1)		Consolidated
Chains	$	3,129	$	—	$	—	$	—	$	3,129
Independent retailers	1,875		—		—		—		1,875
Supernatural	1,647		—		—		—		1,647
Retail	—		598		—		—		598
Other	584		—		56		—		640
Eliminations	—		—		—		(382)		(382)
Total	$	7,235	$	598	$	56	$	(382)	$	7,507
	Net Sales for the 39-Week Period Ended
(in millions)	April 27, 2024
Customer Channel	Wholesale		Retail		Other		Eliminations(1)		Consolidated
Chains	$	9,542	$	—	$	—	$	—	$	9,542
Independent retailers	5,622		—		—		—		5,622
Supernatural	5,097		—		—		—		5,097
Retail	—		1,808		—		—		1,808
Other	1,743		—		162		—		1,905
Eliminations	—		—		—		(1,149)		(1,149)
Total	$	22,004	$	1,808	$	162	$	(1,149)	$	22,825
	Net Sales for the 39-Week Period Ended
(in millions)	April 29, 2023
Customer Channel	Wholesale		Retail		Other		Eliminations(1)		Consolidated
Chains	$	9,675	$	—	$	—	$	—	$	9,675
Independent retailers	5,802		—		—		—		5,802
Supernatural	4,819		—		—		—		4,819
Retail	—		1,871		—		—		1,871
Other	1,712		—		172		—		1,884
Eliminations	—		—		—		(1,196)		(1,196)
Total	$	22,008	$	1,871	$	172	$	(1,196)	$	22,855

(1)Eliminations primarily includes the net sales elimination of Wholesale to Retail sales and the elimination of sales from segments included within Other to Wholesale.

The Company serves customers in the United States and Canada, as well as customers located in other countries. However, all of the Company’s revenue is earned in the United States and Canada, and international distribution occurs through freight-forwarders. The Company does not have any performance obligations on international shipments subsequent to delivery to the domestic port.

Accounts and Notes Receivable Balances

Accounts and notes receivable are as follows:

(in millions)	April 27, 2024		July 29, 2023
Customer accounts receivable	$	958	$	887
Allowance for uncollectible receivables	(16)		(17)
Other receivables, net	29		19
Accounts receivable, net	$	971	$	889
Notes receivable, net, included within Prepaid expenses and other current assets	$	3	$	3
Long-term notes receivable, net, included within Other long-term assets	$	7	$	7

In fiscal 2023, the Company entered into an agreement to sell, on a revolving basis, certain customer accounts receivable to a third-party financial institution. Accounts receivable that the Company is servicing on behalf of the financial institution, which would have otherwise been outstanding as of April 27, 2024 and July 29, 2023, was approximately $342 million and $310 million, respectively. Net proceeds received are included within cash from operating activities in the Condensed Consolidated Statements of Cash Flows in the period of sale. The loss on sale of receivables was $6 million and $4 million for the third quarters of fiscal 2024 and 2023, respectively, and $16 million and $9 million for fiscal 2024 and 2023 year-to-date, respectively, and is recorded within Loss on sale of assets and other asset charges in the Condensed Consolidated Statements of Operations.