Cover
Cover - shares | 9 Months Ended | |
May 01, 2021 | Jun. 04, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 1, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-15723 | |
Entity Registrant Name | UNITED NATURAL FOODS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 05-0376157 | |
Entity Address, Address Line One | 313 Iron Horse Way, | |
Entity Address, City or Town | Providence, | |
Entity Address, State or Province | RI | |
Entity Address, Postal Zip Code | 02908 | |
City Area Code | 401 | |
Local Phone Number | 528-8634 | |
Title of 12(b) Security | Common stock, par value $0.01 | |
Trading Symbol | UNFI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 56,349,864 | |
Entity Central Index Key | 0001020859 | |
Current Fiscal Year End Date | --07-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | May 01, 2021 | Aug. 01, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 39,495 | $ 46,993 |
Accounts receivable, net | 1,106,578 | 1,120,199 |
Inventories, net | 2,293,877 | 2,280,767 |
Prepaid expenses and other current assets | 140,948 | 251,891 |
Current assets of discontinued operations | 4,899 | 5,067 |
Total current assets | 3,585,797 | 3,704,917 |
Property and equipment, net | 1,715,034 | 1,701,216 |
Operating lease assets | 1,088,058 | 982,808 |
Goodwill | 20,495 | 19,607 |
Intangible assets, net | 909,590 | 969,600 |
Deferred income taxes | 105,332 | 107,624 |
Other long-term assets | 95,088 | 97,285 |
Long-term assets of discontinued operations | 1,430 | 3,915 |
Total assets | 7,520,824 | 7,586,972 |
Current liabilities: | ||
Accounts payable | 1,599,995 | 1,633,448 |
Accrued expenses and other current liabilities | 259,702 | 281,956 |
Accrued compensation and benefits | 235,677 | 228,832 |
Current portion of operating lease liabilities | 138,844 | 131,022 |
Current portion of long-term debt and finance lease liabilities | 23,700 | 83,378 |
Current liabilities of discontinued operations | 6,996 | 11,438 |
Total current liabilities | 2,264,914 | 2,370,074 |
Long-term debt | 2,314,215 | 2,426,994 |
Long-term operating lease liabilities | 976,691 | 873,990 |
Long-term finance lease liabilities | 132,975 | 143,303 |
Pension and other postretirement benefit obligations | 236,927 | 292,128 |
Other long-term liabilities | 294,025 | 336,487 |
Long-term liabilities of discontinued operations | 15 | 1,738 |
Total liabilities | 6,219,762 | 6,444,714 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, authorized 5,000 shares; none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, authorized 100,000 shares; 56,956 shares issued and 56,341 shares outstanding at May 1, 2021; 55,306 shares issued and 54,691 shares outstanding at August 1, 2020 | 570 | 553 |
Additional paid-in capital | 588,324 | 568,736 |
Treasury stock at cost | (24,231) | (24,231) |
Accumulated other comprehensive loss | (197,092) | (237,946) |
Retained earnings | 934,871 | 837,633 |
Total United Natural Foods, Inc. stockholders’ equity | 1,302,442 | 1,144,745 |
Noncontrolling interests | (1,380) | (2,487) |
Total stockholders’ equity | 1,301,062 | 1,142,258 |
Total liabilities and stockholders’ equity | $ 7,520,824 | $ 7,586,972 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares | May 01, 2021 | Aug. 01, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 56,956,000 | 55,306,000 |
Common stock, shares outstanding (in shares) | 56,341,000 | 54,691,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 01, 2021 | May 02, 2020 | May 01, 2021 | May 02, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 6,619,842 | $ 7,031,718 | $ 20,180,582 | $ 19,759,712 |
Cost of sales | 5,653,043 | 5,981,486 | 17,256,925 | 16,884,944 |
Gross profit | 966,799 | 1,050,232 | 2,923,657 | 2,874,768 |
Operating expenses | 866,463 | 911,007 | 2,634,305 | 2,657,427 |
Goodwill and asset impairment charges | 0 | 0 | 0 | 425,405 |
Restructuring, acquisition and integration related expenses | 9,867 | 14,557 | 44,078 | 65,751 |
(Gain) loss on sale of assets | (25) | 351 | 144 | 785 |
Operating income (loss) | 90,494 | 124,317 | 245,130 | (274,600) |
Other expense (income): | ||||
Net periodic benefit income, excluding service cost | (17,128) | (12,758) | (51,288) | (27,419) |
Interest expense, net | 43,500 | 47,269 | 163,577 | 145,814 |
Other, net | (989) | (1,842) | (3,461) | (3,462) |
Total other expense, net | 25,383 | 32,669 | 108,828 | 114,933 |
Income (loss) from continuing operations before income taxes | 65,111 | 91,648 | 136,302 | (389,533) |
Provision (benefit) for income taxes | 16,812 | (2,799) | 32,213 | (82,562) |
Net income (loss) from continuing operations | 48,299 | 94,447 | 104,089 | (306,971) |
Income (loss) from discontinued operations, net of tax | 1,653 | (4,078) | 6,752 | (16,128) |
Net income (loss) including noncontrolling interests | 49,952 | 90,369 | 110,841 | (323,099) |
Less net income attributable to noncontrolling interests | (1,394) | (2,238) | (4,366) | (3,407) |
Net income (loss) attributable to United Natural Foods, Inc. | $ 48,558 | $ 88,131 | $ 106,475 | $ (326,506) |
Basic earnings (loss) per share: | ||||
Continuing operations (in dollars per share) | $ 0.83 | $ 1.72 | $ 1.78 | $ (5.80) |
Discontinued operations (in dollars per share) | 0.03 | (0.08) | 0.12 | (0.30) |
Basic earnings (loss) per share (in dollars per share) | 0.86 | 1.64 | 1.90 | (6.10) |
Diluted earnings (loss) per share: | ||||
Continuing operations (in dollars per share) | 0.77 | 1.67 | 1.67 | (5.80) |
Discontinued operations (in dollars per share) | 0.03 | (0.08) | 0.11 | (0.30) |
Diluted earnings (loss) per share (in dollars per share) | $ 0.80 | $ 1.60 | $ 1.78 | $ (6.10) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 56,458 | 53,718 | 56,028 | 53,485 |
Diluted (in shares) | 60,539 | 55,217 | 59,676 | 53,485 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 01, 2021 | May 02, 2020 | May 01, 2021 | May 02, 2020 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) including noncontrolling interests | $ 49,952 | $ 90,369 | $ 110,841 | $ (323,099) | |
Other comprehensive income (loss): | |||||
Recognition of pension and other postretirement benefit obligations, net of tax | [1] | (301) | (574) | (807) | 7,368 |
Recognition of interest rate swap cash flow hedges, net of tax | [2] | 14,127 | (39,066) | 35,838 | (46,499) |
Foreign currency translation adjustments | 2,907 | (3,585) | 6,164 | (3,561) | |
Recognition of other cash flow derivatives, net of tax | [3] | (296) | 0 | (341) | 0 |
Total other comprehensive income (loss) | 16,437 | (43,225) | 40,854 | (42,692) | |
Less comprehensive income attributable to noncontrolling interests | (1,394) | (2,238) | (4,366) | (3,407) | |
Total comprehensive income (loss) attributable to United Natural Foods, Inc. | $ 64,995 | $ 44,906 | $ 147,329 | $ (369,198) | |
[1] | Amounts are net of tax (benefit) expense of $(0.1) million, $(0.2) million, $(0.3) million and $2.4 million, respectively. | ||||
[2] | Amounts are net of tax expense (benefit) of $4.8 million, $(13.4) million, $12.3 million and $(15.9) million, respectively. | ||||
[3] | Amounts are net of tax benefit of $(0.1) million, $— million, $(0.1) million and $— million, respectively. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
May 01, 2021 | May 02, 2020 | May 01, 2021 | May 02, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Recognition of pension and other postretirement benefit obligations, tax (benefit) expense | $ (0.1) | $ (0.2) | $ (0.3) | $ 2.4 |
Recognition of interest rate swap cash flow hedges, tax expense (benefit) | 4.8 | (13.4) | 12.3 | (15.9) |
Recognition of other cash flow derivatives, tax benefit | $ (0.1) | $ 0 | $ (0.1) | $ 0 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative effect of change in accounting principle | Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Retained EarningsCumulative effect of change in accounting principle | Total United Natural Foods, Inc. Stockholders’ Equity | Total United Natural Foods, Inc. Stockholders’ EquityCumulative effect of change in accounting principle | Noncontrolling Interests |
Beginning balance (in shares) at Aug. 03, 2019 | 53,501 | 615 | |||||||||
Beginning balance at Aug. 03, 2019 | $ 1,504,305 | $ (2,613) | $ 535 | $ (24,231) | $ 530,801 | $ (108,953) | $ 1,108,890 | $ (2,613) | $ 1,507,042 | $ (2,613) | $ (2,737) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Restricted stock vestings and stock option exercises (in shares) | 464 | ||||||||||
Restricted stock vestings | (1,015) | $ (5) | (1,020) | (1,015) | |||||||
Share-based compensation | 15,088 | 15,088 | 15,088 | ||||||||
Other comprehensive (loss) income | (42,692) | (42,692) | (42,692) | ||||||||
Distributions to noncontrolling interests | (2,525) | (2,525) | |||||||||
Proceeds from issuance of common stock, net (in shares) | 1,327 | ||||||||||
Proceeds from issuance of common stock, net | 13,882 | $ 13 | 13,869 | 13,882 | |||||||
Net income | (323,099) | (326,506) | (326,506) | 3,407 | |||||||
Ending balance (in shares) at May. 02, 2020 | 55,292 | 615 | |||||||||
Ending balance at May. 02, 2020 | 1,161,331 | $ 553 | $ (24,231) | 558,738 | (151,645) | 779,771 | 1,163,186 | (1,855) | |||
Beginning balance (in shares) at Feb. 01, 2020 | 54,175 | 615 | |||||||||
Beginning balance at Feb. 01, 2020 | 1,092,465 | $ 542 | $ (24,231) | 535,900 | (108,420) | 691,640 | 1,095,431 | (2,966) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Restricted stock vestings and stock option exercises (in shares) | 21 | ||||||||||
Restricted stock vestings | (143) | (143) | (143) | ||||||||
Share-based compensation | 11,137 | 11,137 | 11,137 | ||||||||
Other comprehensive (loss) income | (43,225) | (43,225) | (43,225) | ||||||||
Distributions to noncontrolling interests | (1,127) | (1,127) | |||||||||
Proceeds from issuance of common stock, net (in shares) | 1,096 | ||||||||||
Proceeds from issuance of common stock, net | 11,855 | $ 11 | 11,844 | 11,855 | |||||||
Net income | 90,369 | 88,131 | 88,131 | 2,238 | |||||||
Ending balance (in shares) at May. 02, 2020 | 55,292 | 615 | |||||||||
Ending balance at May. 02, 2020 | $ 1,161,331 | $ 553 | $ (24,231) | 558,738 | (151,645) | 779,771 | 1,163,186 | (1,855) | |||
Beginning balance (in shares) at Aug. 01, 2020 | 54,691 | 55,306 | 615 | ||||||||
Beginning balance at Aug. 01, 2020 | $ 1,142,258 | $ (9,237) | $ 553 | $ (24,231) | 568,736 | (237,946) | 837,633 | $ (9,237) | 1,144,745 | $ (9,237) | (2,487) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Restricted stock vestings and stock option exercises (in shares) | 1,606 | ||||||||||
Restricted stock vestings | (13,449) | $ (17) | (13,466) | (13,449) | |||||||
Share-based compensation | 32,847 | 32,847 | 32,847 | ||||||||
Other comprehensive (loss) income | 40,854 | 40,854 | 40,854 | ||||||||
Distributions to noncontrolling interests | (3,082) | (3,082) | |||||||||
Proceeds from issuance of common stock, net (in shares) | 44 | ||||||||||
Proceeds from issuance of common stock, net | 721 | 721 | 721 | ||||||||
Acquisition of noncontrolling interests | (691) | (514) | (514) | (177) | |||||||
Net income | $ 110,841 | 106,475 | 106,475 | 4,366 | |||||||
Ending balance (in shares) at May. 01, 2021 | 56,341 | 56,956 | 615 | ||||||||
Ending balance at May. 01, 2021 | $ 1,301,062 | $ 570 | $ (24,231) | 588,324 | (197,092) | 934,871 | 1,302,442 | (1,380) | |||
Beginning balance (in shares) at Jan. 30, 2021 | 56,763 | 615 | |||||||||
Beginning balance at Jan. 30, 2021 | 1,229,066 | $ 568 | $ (24,231) | 581,096 | (213,529) | 886,313 | 1,230,217 | (1,151) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Restricted stock vestings and stock option exercises (in shares) | 163 | ||||||||||
Restricted stock vestings | (3,052) | $ (2) | (3,054) | (3,052) | |||||||
Share-based compensation | 9,918 | 9,918 | 9,918 | ||||||||
Other comprehensive (loss) income | 16,437 | 16,437 | 16,437 | ||||||||
Distributions to noncontrolling interests | (1,622) | (1,622) | |||||||||
Proceeds from issuance of common stock, net (in shares) | 30 | ||||||||||
Proceeds from issuance of common stock, net | 514 | 514 | 514 | ||||||||
Acquisition of noncontrolling interests | (151) | (150) | (150) | (1) | |||||||
Net income | $ 49,952 | 48,558 | 48,558 | 1,394 | |||||||
Ending balance (in shares) at May. 01, 2021 | 56,341 | 56,956 | 615 | ||||||||
Ending balance at May. 01, 2021 | $ 1,301,062 | $ 570 | $ (24,231) | $ 588,324 | $ (197,092) | $ 934,871 | $ 1,302,442 | $ (1,380) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
May 01, 2021 | May 02, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) including noncontrolling interests | $ 110,841 | $ (323,099) |
Income (loss) from discontinued operations, net of tax | 6,752 | (16,128) |
Net income (loss) from continuing operations | 104,089 | (306,971) |
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by operating activities: | ||
Depreciation and amortization | 210,088 | 214,002 |
Share-based compensation | 32,847 | 15,088 |
Loss on sale of assets | 144 | 785 |
Closed property and other restructuring charges | 3,399 | 36,662 |
Goodwill and asset impairment charges | 0 | 425,405 |
Net pension and other postretirement benefit income | (51,252) | (27,419) |
Deferred income tax benefit | (2,076) | (17,381) |
LIFO charge | 18,741 | 20,463 |
(Recoveries) provision for losses on receivables, net | (2,672) | 44,238 |
Loss on debt extinguishment | 30,373 | 73 |
Non-cash interest expense and other adjustments | 15,127 | 10,993 |
Changes in operating assets and liabilities | (24,438) | 33,290 |
Net cash provided by operating activities of continuing operations | 334,370 | 449,228 |
Net cash provided by operating activities of discontinued operations | 2,074 | 3,051 |
Net cash provided by operating activities | 336,444 | 452,279 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Payments for capital expenditures | (165,457) | (126,803) |
Proceeds from dispositions of assets | 57,329 | 29,650 |
Other | (4,111) | (2,380) |
Net cash used in investing activities of continuing operations | (112,239) | (99,533) |
Net cash provided by investing activities of discontinued operations | 1,523 | 26,503 |
Net cash used in investing activities | (110,716) | (73,030) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from borrowings of long-term debt | 500,000 | 2,050 |
Proceeds from borrowings under revolving credit line | 3,451,529 | 3,244,573 |
Proceeds from issuance of other loans | 0 | 6,266 |
Repayments of borrowings under revolving credit line | (3,368,951) | (3,508,573) |
Repayments of long-term debt and finance leases | (787,232) | (111,923) |
Proceeds from the issuance of common stock and exercise of stock options | 721 | 5,662 |
Payment of employee restricted stock tax withholdings | (13,449) | (1,015) |
Payments for debt issuance costs | (12,339) | 0 |
Distributions to noncontrolling interests | (3,082) | (2,525) |
Repayments of other loans | (163) | 0 |
Other | (691) | 0 |
Net cash used in financing activities | (233,657) | (365,485) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 443 | (290) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (7,486) | 13,474 |
Cash and cash equivalents, at beginning of period | 47,117 | 45,263 |
Cash and cash equivalents, at end of period | 39,631 | 58,737 |
Less: cash and cash equivalents of discontinued operations | (136) | (120) |
Cash and cash equivalents | 39,495 | 58,617 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 118,441 | 139,040 |
Cash (refunds) for federal and state income taxes, net | (21,847) | (24,236) |
Leased assets obtained in exchange for new operating lease liabilities | 226,570 | 154,888 |
Leased assets obtained in exchange for new finance lease liabilities | 468 | 92,843 |
Additions of property and equipment included in accounts payable | $ 49,182 | $ 20,547 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
May 01, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 1—SIGNIFICANT ACCOUNTING POLICIES Nature of Business United Natural Foods, Inc. and its subsidiaries (the “Company”, “we”, ”us”, “UNFI”, or “our”) is a leading distributor of natural, organic, specialty, produce and conventional grocery and non-food products, and provider of support services to retailers. The Company sells its products primarily throughout the United States and Canada. Fiscal Year The Company’s fiscal year ends on the Saturday closest to July 31 and contain either 52 or 53 weeks. References to the third quarter of fiscal 2021 and 2020 relate to the 13-week fiscal quarters ended May 1, 2021 and May 2, 2020, respectively. References to fiscal 2021 and 2020 year-to-date relate to the 39-week fiscal periods ended May 1, 2021 and May 2, 2020, respectively. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Unless otherwise indicated, references to the Condensed Consolidated Statements of Operations, the Condensed Consolidated Balance Sheets and the Notes to the Condensed Consolidated Financial Statements exclude all amounts related to discontinued operations. Refer to Note 16—Discontinued Operations for additional information about the Company’s discontinued operations. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information, including the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and note disclosures normally required in complete financial statements prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted. In the Company’s opinion, these Condensed Consolidated Financial Statements include all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. However, the results of operations for interim periods may not be indicative of the results that may be expected for a full year. These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended August 1, 2020 (the “Annual Report”). There were no material changes in significant accounting policies from those described in the Company’s Annual Report. Discontinued Operations In the fourth quarter of fiscal 2020, the Company determined it no longer met the held for sale criterion for a probable sale to be completed within 12 months for the Cub Foods business and the majority of the remaining Shoppers locations excluding Shoppers locations that are held for sale within discontinued operations (collectively “Retail”). As a result, the Company revised its Condensed Consolidated Financial Statements to reclassify Retail from discontinued operations to continuing operations. This change in financial statement presentation resulted in the inclusion of Retail’s results of operations, financial position, cash flows and related disclosures within continuing operations. Prior periods presented in these Condensed Consolidated Financial Statements have been conformed to the current period presentation, resulting in Retail being presented in continuing operations for all periods. Use of Estimates The preparation of the Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with original maturities of three months or less. The Company’s banking arrangements allow it to fund outstanding checks when presented to the financial institution for payment. The Company funds all intraday bank balance overdrafts during the same business day. Checks outstanding in excess of bank balances create book overdrafts, which are recorded in Accounts payable in the Condensed Consolidated Balance Sheets and are reflected as an operating activity in the Condensed Consolidated Statements of Cash Flows. As of May 1, 2021 and August 1, 2020, the Company had net book overdrafts of $243.4 million and $267.8 million, respectively. Reclassifications Within the Condensed Consolidated Statements of Cash Flows certain immaterial amounts have been reclassified to conform with current year presentation. These reclassifications had no impact on reported net income, cash flows, or total assets and liabilities. Inventories, Net |
RECENTLY ADOPTED AND ISSUED ACC
RECENTLY ADOPTED AND ISSUED ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
May 01, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
RECENTLY ADOPTED AND ISSUED ACCOUNTING PRONOUNCEMENTS | NOTE 2—RECENTLY ADOPTED AND ISSUED ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) 2016‐13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance: ASU 2018‐19, ASU 2019‐04, ASU 2019‐05, and ASU 2019‐11 (collectively, “Topic 326”). Topic 326 changed the impairment model for most financial assets and certain other instruments. For trade and other receivables, guarantees and other instruments, entities are required to use a new forward‐looking expected loss model that replaces the previous incurred loss model and generally results in earlier recognition of credit losses. The Company adopted this standard in the first quarter of fiscal 2021 on August 2, 2020, the effective and initial application date, using a modified‐retrospective basis as required by the standard by means of a cumulative‐effect adjustment to the opening balance of Retained earnings in the Company’s Condensed Consolidated Statement of Stockholders’ Equity. The difference between reserves and allowances recorded under the former incurred loss model and the amount determined under the current expected loss model, net of the deferred tax impact, was recorded as an adjustment to Retained earnings. Adoption of this standard did not have a material impact to the Company’s Condensed Consolidated Financial Statements. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326 Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825 . This ASU clarifies the accounting treatment for the measurement of credit losses under ASC 326 and provides further clarification on previously issued updates including ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities and ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Since the Company adopted ASU 2017-12 in the fourth quarter of fiscal 2018, the amendments in ASU 2019-04 related to clarifications on Accounting for Hedging Activities, which were adopted by the Company in the first quarter of fiscal 2020, with no impact to Accumulated other comprehensive loss or Retained earnings for fiscal 2020, as the Company did not have separately measured ineffectiveness related to its cash flow hedges. The remaining amendments within ASU 2019-04 were adopted in the first quarter of fiscal 2021 with the adoption of Topic 326. Adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. ASU 2018-15 requires implementation costs incurred by customers in cloud computing arrangements (i.e. hosting arrangements) to be capitalized under the same premises as authoritative guidance for internal-use software, and deferred over the noncancellable term of the cloud computing arrangements plus any optional renewal periods that are reasonably certain to be exercised by the customer or for which the exercise is controlled by the service provider. The Company adopted this standard on a prospective basis in the first quarter of fiscal 2021. The Company expects to incur immaterial implementation costs in fiscal 2021. Under this standard, the Company is required to defer these costs and recognize these costs as a service expense over future periods. Adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans . ASU 2018-14 requires entities to disclose the weighted-average interest crediting rates used, reasons for significant gains and losses affecting benefit obligations, and an explanation of any other significant changes in the benefit obligation or plan assets. The amendment also removed certain required disclosures. The Company adopted this guidance in the first quarter of fiscal 2021. The provisions of the new standard do not have any effect on other disclosures in these Condensed Consolidated Financial Statements but will require disclosure updates in the Company’s annual audited consolidated financial statements. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . ASU 2019-12 eliminates certain exceptions to Topic 740’s general principles. The amendments also improve consistent application and simplifies its application. The Company is required to adopt this guidance in the first quarter of fiscal 2022. The Company is currently reviewing the provisions of the new standard and evaluating its impact on the Company’s consolidated financial statements. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
May 01, 2021 | |
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 exclude stores included within the Supernatural and Other channels defined below; • Independent retailers , which include smaller size accounts and include single store and multiple store locations, but are not classified within Chains above or Other discussed below; • Supernatural , which consists of chain accounts that are national in scope and carry primarily natural products, and currently consists solely of Whole Foods Market; • Retail , which reflects our Retail segment, including the Cub Foods business and the remaining Shoppers locations, excluding Shoppers locations that are held for sale within discontinued operations; 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) (1) May 1, 2021 Customer Channel Wholesale Retail Other Eliminations (3) Consolidated Chains $ 2,949 $ — $ — $ — $ 2,949 Independent retailers 1,599 — — — 1,599 Supernatural 1,287 — — — 1,287 Retail — 578 — — 578 Other 525 — 55 — 580 Eliminations — — — (373) (373) Total $ 6,360 $ 578 $ 55 $ (373) $ 6,620 Net Sales for the 13-Week Period Ended (in millions) (1) May 2, 2020 (2) Customer Channel Wholesale Retail Other Eliminations (3) Consolidated Chains $ 3,125 $ — $ — $ — $ 3,125 Independent retailers 1,805 — — — 1,805 Supernatural 1,279 — — — 1,279 Retail — 637 — — 637 Other 541 — 58 — 599 Eliminations — — — (414) (414) Total $ 6,750 $ 637 $ 58 $ (414) $ 7,032 Net Sales for the 39-Week Period Ended (in millions) (1) May 1, 2021 Customer Channel Wholesale Retail Other Eliminations (3) Consolidated Chains $ 9,066 $ — $ — $ — $ 9,066 Independent retailers 4,972 — — — 4,972 Supernatural 3,799 — — — 3,799 Retail — 1,794 — — 1,794 Other 1,563 — 166 — 1,729 Eliminations — — — (1,179) (1,179) Total $ 19,400 $ 1,794 $ 166 $ (1,179) $ 20,181 Net Sales for the 39-Week Period Ended (in millions) (1) May 2, 2020 (2) Customer Channel Wholesale Retail Other Eliminations (3) Consolidated Chains $ 8,909 $ — $ — $ — $ 8,909 Independent retailers 4,923 — — — 4,923 Supernatural 3,601 — — — 3,601 Retail — 1,691 — — 1,691 Other 1,591 — 164 — 1,755 Eliminations — — — (1,120) (1,120) Total $ 19,024 $ 1,691 $ 164 $ (1,120) $ 19,760 (1) As a result of displaying amounts in millions, totals may not sum due to rounding. (2) In the first quarter of fiscal 2021, the presentation of net sales by customer channel was recast to present the Chains and Other channel exclusive of the intercompany eliminations and present total eliminations separately. There was no impact to the Condensed Consolidated Statements of Operations. The Company believes this modified basis better reflects its channel presentation, as it further aligns with segment presentation and how sales channel information would appear following the potential disposition of Retail, assuming all banners retain a supply agreement. In addition, during the fourth quarter of fiscal 2020, the presentation of net sales by customer channel was recast to be presented on a basis consistent with customer size. International customers other than Canada, and alternative format sales continue to be classified within Other. The main effect of the change was to re-categorize the former Supermarkets and Independents channels, previously classified by the majority of product carried by those customers between conventional and natural products, respectively, to classify those stores by the number of customer locations we supply. There was no impact to the Condensed Consolidated Statements of Operations as a result of the reclassification of customer types. The Company believes this modified basis better reflects the nature and economic risks of cash flows from customers. (3) Eliminations primarily includes the net sales elimination of Wholesale’s sales to the Retail segment 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 U.S. 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. No net sales were recorded within continuing operations for retail stores within discontinued operations that the Company disposed of and expects to dispose of without a supply agreement. These net sales have been eliminated upon consolidation within the Wholesale segment of continuing operations and amounted to $12.4 million and $16.8 million in the third quarters of fiscal 2021 and 2020, respectively, and $40.2 million and $108.9 million in fiscal 2021 and 2020 year-to-date, respectively. Accounts and Notes Receivable Balances Accounts and notes receivable are as follows: (in thousands) May 1, 2021 August 1, 2020 Customer accounts receivable $ 1,143,399 $ 1,156,694 Allowance for uncollectible receivables (51,502) (55,928) Other receivables, net 14,681 19,433 Accounts receivable, net $ 1,106,578 $ 1,120,199 Notes receivable, net, included within Prepaid expenses and other current assets $ 10,317 $ 49,268 Long-term notes receivable, net, included within Other assets $ 17,219 $ 25,800 |
RESTRUCTURING, ACQUISITION, AND
RESTRUCTURING, ACQUISITION, AND INTEGRATION RELATED EXPENSES | 9 Months Ended |
May 01, 2021 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING, ACQUISITION, AND INTEGRATION RELATED EXPENSES | NOTE 4—RESTRUCTURING, ACQUISITION AND INTEGRATION RELATED EXPENSES Restructuring, acquisition and integration related expenses incurred were as follows: 13-Week Period Ended 39-Week Period Ended (in thousands) May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 2019 SUPERVALU INC. restructuring expenses $ — $ 1,492 $ — $ 3,993 Restructuring and integration costs 12,047 552 41,489 25,257 Closed property (recoveries) charges and costs (2,180) 12,513 2,589 36,501 Total $ 9,867 $ 14,557 $ 44,078 $ 65,751 |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 9 Months Ended |
May 01, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | NOTE 5—GOODWILL AND INTANGIBLE ASSETS, NET The Company has five goodwill reporting units: two of which represent separate operating segments and are aggregated within the Wholesale reportable segment (U.S. Wholesale and Canada Wholesale); one separate Retail operating and reportable segment and two of which are separate operating segments (Woodstock Farms and Blue Marble Brands) that do not meet the criteria for being disclosed as separate reportable segments. The Canada Wholesale operating segment, which is aggregated with U.S. Wholesale, would not meet the quantitative thresholds for separate reporting if it did not meet the aggregation criteria. Fiscal 2020 Goodwill Impairment Review During the first quarter of fiscal 2020, the Company changed its management structure and internal financial reporting, which resulted in the requirement to combine the SUPERVALU INC. (“Supervalu”) Wholesale reporting unit and the legacy Company Wholesale reporting unit into one U.S. Wholesale reporting unit, and experienced a further sustained decline in market capitalization and enterprise value. As a result of the change in reporting units and the sustained decline in market capitalization and enterprise value, the Company performed an interim quantitative impairment review of goodwill for the Wholesale reporting units, which included a determination of the fair value of all reporting units. The Company estimated the fair values of all reporting units using both the market approach, applying a multiple of earnings based on observable multiples for guideline publicly traded companies, and the income approach, discounting projected future cash flows based on management’s expectations of the current and future operating environment for each reporting unit. The calculation of the impairment charge included substantial fact-based determinations and estimates including weighted average cost of capital, future revenue, profitability, cash flows and fair values of assets and liabilities. The rates used to discount projected future cash flows under the income approach reflect a weighted average cost of capital of 8.5%, which considered observable data about guideline publicly traded companies, an estimated market participant’s expectations about capital structure and risk premiums, including those reflected in the Company’s market capitalization. The Company corroborated the reasonableness of the estimated reporting unit fair values by reconciling to its enterprise value and market capitalization. Based on this analysis, the Company determined that the carrying value of its U.S. Wholesale reporting unit exceeded its fair value by an amount that exceeded its assigned goodwill. As a result, the Company recorded a goodwill impairment charge of $421.5 million in the first quarter of fiscal 2020. The goodwill impairment charge is reflected in Goodwill and asset impairment charges in the Condensed Consolidated Statements of Operations. The goodwill impairment charge reflected the impairment of all of the U.S. Wholesale reporting unit’s goodwill. Goodwill and Intangible Assets Changes Changes in the carrying value of Goodwill by reportable segment that have goodwill consisted of the following: (in thousands) Wholesale Other Total Goodwill as of August 1, 2020 $ 9,747 (1) $ 9,860 (2) $ 19,607 Change in foreign exchange rates 888 — 888 Goodwill as of May 1, 2021 $ 10,635 (1) $ 9,860 (2) $ 20,495 (1) Amounts are net of accumulated goodwill impairment charges of $716.5 million as of August 1, 2020 and May 1, 2021. (2) Amounts are net of accumulated goodwill impairment charges of $9.6 million as of August 1, 2020 and May 1, 2021. Identifiable intangible assets, net consisted of the following: May 1, 2021 August 1, 2020 (in thousands) Gross Carrying Accumulated Net Gross Carrying Accumulated Net Amortizing intangible assets: Customer relationships $ 1,008,194 $ 219,508 $ 788,686 $ 1,007,118 $ 172,832 $ 834,286 Pharmacy prescription files 32,900 11,772 21,128 32,900 7,964 24,936 Non-compete agreements — — — 12,900 11,500 1,400 Operating lease intangibles 7,763 4,721 3,042 8,193 4,020 4,173 Trademarks and tradenames 83,700 42,779 40,921 83,700 34,708 48,992 Total amortizing intangible assets 1,132,557 278,780 853,777 1,144,811 231,024 913,787 Indefinite lived intangible assets: Trademarks and tradenames 55,813 — 55,813 55,813 — 55,813 Intangible assets, net $ 1,188,370 $ 278,780 $ 909,590 $ 1,200,624 $ 231,024 $ 969,600 Amortization expense was $18.4 million and $21.9 million for the third quarters of fiscal 2021 and 2020, respectively, and $60.0 million and $65.5 million for fiscal 2021 and 2020 year-to-date, respectively. The estimated future amortization expense for each of the next five fiscal years and thereafter on definite lived intangible assets existing as of May 1, 2021 is shown below: Fiscal Year: (In thousands) Remaining fiscal 2021 $ 18,192 2022 72,170 2023 71,950 2024 72,399 2025 70,308 2026 and thereafter 548,758 $ 853,777 |
FAIR VALUE MEASUREMENTS OF FINA
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | 9 Months Ended |
May 01, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS | NOTE 6—FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS Recurring Fair Value Measurements The following tables provides the fair value hierarchy for financial assets and liabilities measured on a recurring basis: Condensed Consolidated Balance Sheets Location Fair Value at May 1, 2021 (in thousands) Level 1 Level 2 Level 3 Assets: Foreign currency derivatives not designated as hedging instruments Prepaid expenses and other current assets $ — $ 2 $ — Fuel derivatives designated as hedging instruments Prepaid expenses and other current assets $ — $ 1,101 $ — Mutual funds Other long-term assets $ 1,550 $ — $ — Liabilities: Foreign currency derivatives designated as hedging instruments Accrued expenses and other current liabilities $ — $ 1,904 $ — Interest rate swaps designated as hedging instruments Accrued expenses and other current liabilities $ — $ 32,156 $ — Interest rate swaps designated as hedging instruments Other long-term liabilities $ — $ 47,541 $ — Condensed Consolidated Balance Sheets Location Fair Value at August 1, 2020 (in thousands) Level 1 Level 2 Level 3 Assets: Foreign currency derivatives not designated as hedging instruments Prepaid expenses and other current assets $ — $ 26 $ — Fuel derivatives designated as hedging instruments Prepaid expenses and other current assets $ — $ 36 $ — Foreign currency derivatives designated as hedging instruments Prepaid expenses and other current assets $ — $ 94 $ — Fuel derivatives designated as hedging instruments Other long-term assets $ — $ 23 $ — Mutual funds Other long-term assets $ 1,678 $ — $ — Liabilities: Fuel derivatives designated as hedging instruments Accrued expenses and other current liabilities $ — $ 197 $ — Foreign currency derivatives designated as hedging instruments Accrued expenses and other current liabilities $ — $ 357 $ — Interest rate swaps designated as hedging instruments Accrued expenses and other current liabilities $ — $ 46,743 $ — Interest rate swaps designated as hedging instruments Other long-term liabilities $ — $ 91,994 $ — Interest Rate Swap Contracts The fair values of interest rate swap contracts are measured using Level 2 inputs. The interest rate swap contracts are valued using an income approach interest rate swap valuation model incorporating observable market inputs including interest rates, LIBOR swap rates and credit default swap rates. As of May 1, 2021, a 100 basis point increase in forward LIBOR interest rates would increase the fair value of the interest rate swaps by approximately $34.0 million; a 100 basis point decrease in forward LIBOR interest rates would decrease the fair value of the interest rate swaps by approximately $35.3 million. Refer to Note 7—Derivatives for further information on interest rate swap contracts. Mutual Funds Mutual fund assets consist of balances held in investments to fund certain deferred compensation plans. The fair values of mutual fund assets are based on quoted market prices of the mutual funds held by the plan at each reporting period. Mutual funds traded in active markets are classified within Level 1 of the fair value hierarchy. Fuel Supply Agreements and Derivatives To reduce diesel price risk, the Company has entered into derivative financial instruments and/or forward purchase commitments for a portion of our projected monthly diesel fuel requirements at fixed prices. The fair values of fuel derivative agreements are measured using Level 2 inputs. Foreign Exchange Derivatives To reduce foreign exchange risk, the Company has entered into derivative financial instruments for a portion of our projected monthly foreign currency requirements at fixed prices. The fair values of foreign exchange derivatives are measured using Level 2 inputs. Fair Value Estimates For certain of the Company’s financial instruments including cash and cash equivalents, receivables, accounts payable, accrued vacation, compensation and benefits, and other current assets and liabilities the fair values approximate carrying amounts due to their short maturities. The fair value of notes receivable is estimated by using a discounted cash flow approach prior to consideration for uncollectible amounts and is calculated by applying a market rate for similar instruments using Level 3 inputs. The fair value of debt is estimated based on market quotes, where available, or market values for similar instruments, using Level 2 and 3 inputs. In the table below, the carrying value of the Company’s long-term debt is net of original issue discounts and debt issuance costs. May 1, 2021 August 1, 2020 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Notes receivable, including current portion $ 35,445 $ 33,127 $ 77,598 $ 78,877 Long-term debt, including current portion $ 2,327,397 $ 2,417,797 $ 2,497,626 $ 2,535,851 |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
May 01, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | NOTE 7—DERIVATIVES Management of Interest Rate Risk The Company enters into interest rate swap contracts from time to time to mitigate its exposure to changes in market interest rates as part of its overall strategy to manage its debt portfolio to achieve an overall desired position of notional debt amounts subject to fixed and floating interest rates. Interest rate swap contracts are entered into for periods consistent with related underlying exposures and do not constitute positions independent of those exposures. The Company’s interest rate swap contracts are designated as cash flow hedges at May 1, 2021. Interest rate swap contracts are reflected at their fair values in the Condensed Consolidated Balance Sheets. Refer to Note 6—Fair Value Measurements of Financial Instruments for further information on the fair value of interest rate swap contracts. Details of active swap contracts as of May 1, 2021, which are all pay fixed and receive floating, are as follows: Effective Date Swap Maturity Notional Value (in millions) Pay Fixed Rate Receive Floating Rate (2) Floating Rate Reset Terms August 3, 2015 (1) August 15, 2022 $ 34.0 1.7950 % One-Month LIBOR Monthly October 26, 2018 October 31, 2022 100.0 2.8915 % One-Month LIBOR Monthly January 11, 2019 October 31, 2022 50.0 2.4678 % One-Month LIBOR Monthly January 23, 2019 October 31, 2022 50.0 2.5255 % One-Month LIBOR Monthly November 16, 2018 March 31, 2023 150.0 2.8950 % One-Month LIBOR Monthly January 23, 2019 March 31, 2023 50.0 2.5292 % One-Month LIBOR Monthly November 30, 2018 September 30, 2023 50.0 2.8315 % One-Month LIBOR Monthly October 26, 2018 October 31, 2023 100.0 2.9210 % One-Month LIBOR Monthly January 11, 2019 March 28, 2024 100.0 2.4770 % One-Month LIBOR Monthly January 23, 2019 March 28, 2024 100.0 2.5420 % One-Month LIBOR Monthly November 30, 2018 October 31, 2024 100.0 2.8480 % One-Month LIBOR Monthly January 11, 2019 October 31, 2024 100.0 2.5010 % One-Month LIBOR Monthly January 24, 2019 October 31, 2024 50.0 2.5210 % One-Month LIBOR Monthly October 26, 2018 October 22, 2025 50.0 2.9550 % One-Month LIBOR Monthly November 16, 2018 October 22, 2025 50.0 2.9590 % One-Month LIBOR Monthly November 16, 2018 October 22, 2025 50.0 2.9580 % One-Month LIBOR Monthly January 24, 2019 October 22, 2025 50.0 2.5558 % One-Month LIBOR Monthly $ 1,234.0 (1) The swap contract has an amortizing notional principal amount which is reduced by $1.0 million on a quarterly basis. (2) For these swap contracts that are indexed to LIBOR, the Company is monitoring and evaluating risks related to the expected future cessation of LIBOR. In the third quarter of fiscal 2021, in order to reduce its exposure to pay fixed and receive floating interest rate swap contracts due to lower levels of debt balances with floating interest rates, the Company paid $6.3 million to terminate certain outstanding interest rate swaps with a notional amount of $250.0 million. In the first quarter of fiscal 2021, in conjunction with the $500.0 million fixed rate senior unsecured notes offering described below in Note 8—Long-Term Debt, the Company paid $11.3 million to terminate or novate certain outstanding interest rate swaps with a notional amount of $504.0 million and certain forward starting interest rate swaps with a notional amount of $450.0 million. The payments equaled the fair value of the interest rate swaps at the time of their termination or novation. No gain or loss was recorded as a result of the swap termination and novations. Since the hedged interest payments remain probable of occurring, the unrecognized gains and losses resulting from the early termination or novation of these interest rate swap agreements will be amortized out of Accumulated other comprehensive income and into Interest expense, net over the remaining period of the original terminated or novated interest rate swap agreements. If any of the hedged interest payments were not probable of occurring, then a charge representing an accelerated amortization of the unrecognized gains and losses would be recorded. Cash payments resulting from the termination or novation of interest rate swaps are classified as operating activities in the Company’s Condensed Consolidated Statements of Cash Flows. The Company performs an initial quantitative assessment of hedge effectiveness using the “Hypothetical Derivative Method” in the period in which the hedging transaction is entered. Under this method, the Company assesses the effectiveness of each hedging relationship by comparing the changes in cash flows of the derivative hedging instrument with the changes in cash flows of the designated hedged transactions. In future reporting periods, the Company performs a qualitative analysis for quarterly prospective and retrospective assessments of hedge effectiveness. The Company also monitors the risk of counterparty default on an ongoing basis and noted that the counterparties are reputable financial institutions. The entire change in the fair value of the derivative is initially reported in Other comprehensive income (outside of earnings) in the Condensed Consolidated Statements of Comprehensive Income (Loss) and subsequently reclassified to earnings in Interest expense, net in the Condensed Consolidated Statements of Operations when the hedged transactions affect earnings. The location and amount of gains or losses recognized in the Condensed Consolidated Statements of Operations for interest rate swap contracts for each of the periods, presented on a pretax basis, are as follows: 13-Week Period Ended 39-Week Period Ended May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 (In thousands) Interest expense, net Interest expense, net Total amounts of expense line items presented in the Condensed Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 43,500 $ 47,269 $ 163,577 $ 145,814 Loss on cash flow hedging relationships: Loss reclassified from comprehensive income into earnings $ (14,623) $ (6,191) $ (35,186) $ (12,812) Gain (loss) on interest rate swap contracts not designated as hedging instruments: Gain (loss) recognized in earnings $ 2,969 $ — $ (2) $ — |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
May 01, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | NOTE 8—LONG-TERM DEBT The Company’s long-term debt consisted of the following: (in thousands) Average Interest Rate at May 1, 2021 Fiscal Maturity Year May 1, August 1, Term Loan Facility 3.61% 2026 $ 1,002,253 $ 1,773,000 ABL Credit Facility 1.50% 2024 839,290 756,712 Senior Notes 6.75% 2029 500,000 — Other secured loans 5.17% 2024-2025 39,751 49,268 Debt issuance costs, net (36,374) (45,846) Original issue discount on debt (17,523) (35,508) Long-term debt, including current portion 2,327,397 2,497,626 Less: current portion of long-term debt (13,182) (70,632) Long-term debt $ 2,314,215 $ 2,426,994 Refinancing Activities During the third quarter of fiscal 2021, the Company entered into an amendment agreement (the “First Term Loan Amendment”) amending the Term Loan Agreement (as defined below). The amendment provides for, among other things, (i) the reduction of the applicable margin for LIBOR loans from 4.25% to 3.50% and the applicable margin for base rate loans from 3.25% to 2.50%, (ii) the appointment of a replacement administrative and collateral agent, and (iii) other administrative changes. The amendment did not change the aggregate amount or maturity date of the Term Loan Facility. During the third quarter of fiscal 2021, the Company made a voluntary prepayment of $9.9 million and a mandatory prepayment of $2.8 million under the Term Loan Facility with asset sale proceeds. During the second quarter of fiscal 2021, the Company made a voluntary prepayment of $150.0 million on the Term Lo an Facility (as defined below) funded with incremental borrowings under the ABL Credit Facility (as defined below) that reduces its interest costs. This prepayment will count towards any requirement from Excess Cash Flow (as defined in the Term Loan Agreement) generated during fiscal 2021, which would be due in fiscal 2022. In connection with this prepayment, the Company incurred a loss on debt extinguishment of $5.7 million related to unamortized debt issuance costs and a loss on unamortized original issue discount, which were recorded within Interest expense, net in the Condensed Consolidated Statement of Operations in the second quarter of fiscal 2021. During the first quarter of fiscal 2021, the Company repaid $500.0 million of outstanding borrowings under the Term Loan Facility funded primarily by the net proceeds from the issuance of new eight-year senior unsecured notes (as described below). This refinancing transaction extended the maturity of a significant portion of the Company’s outstanding debt by approximately three years. Also during the first quarter, the Company made $108.0 million of additional repayments under the Term Loan Facility, including $72.0 million related to the material cash flow generation in fiscal 2020, as required under the Term Loan Agreement (as described below) and a voluntary prepayment of $36.0 million with incremental borrowings under the ABL Credit Facility (as described below). In connection with the prepayments, the Company incurred a loss on debt extinguishment related to unamortized debt issuance costs and a loss on unamortized original issue discount of $12.0 million and $11.8 million, respectively, which were recorded within Interest expense, net in the Condensed Consolidated Statements of Operations in the first quarter of fiscal 2021. The Company also executed a third amendment to the ABL Loan Agreement (as defined below) during the first quarter of fiscal 2021, which added certain assets to the Borrowing Base (as defined below) and increased the Company’s capacity to issue letters of credit under the facility, in addition to other administrative changes. The amendment did not change the aggregate amount or maturity date of the ABL Credit Facility. Senior Notes On October 22, 2020, the Company issued $500.0 million of unsecured 6.750% Senior Notes due October 15, 2028 (the “Senior Notes”). The Senior Notes are guaranteed by each of the Company’s subsidiaries that are borrowers under or that guarantee the ABL Credit Facility or the Term Loan Facility. The net proceeds from the offering of the Senior Notes, together with borrowings under the ABL Credit Facility, were used to repay $500.0 million of the amounts outstanding under the Term B Tranche of the Term Loan Facility and for the payment of all financing costs related to the offering of the Senior Notes. Financing costs of $8.9 million were paid and capitalized in fiscal 2021 year-to-date. The Senior Notes contain covenants customary for debt securities of this type that limit the ability of the Company and its restricted subsidiaries to, among other things, incur debt, declare or pay dividends or make other distributions to stockholders of the Company, transfer or sell assets, create liens on our assets, engage in transactions with affiliates, and merge, consolidate or sell all or substantially all of the assets of the Company and its subsidiaries on a consolidated basis. The Company was in compliance with all such covenants for all periods presented. ABL Credit Facility On August 30, 2018, the Company entered into a loan agreement (as amended from time to time, the “ABL Loan Agreement”), by and among the Company and United Natural Foods West, Inc. (together with the Company, the “U.S. Borrowers”) and UNFI Canada, Inc. (the “Canadian Borrower” and, together with the U.S. Borrowers, the “Borrowers”), the financial institutions that are parties thereto as lenders (collectively, the “ABL Lenders”), Bank of America, N.A. as administrative agent for the ABL Lenders (the “ABL Administrative Agent”), Bank of America, N.A. (acting through its Canada branch), as Canadian agent for the ABL Lenders, and the other parties thereto. During the first quarter of fiscal 2021, on August 14, 2020, the Company entered into the Third Amendment to Loan Agreement, which provides for, among other things, (i) the addition of certain perishable inventory to the calculation of the Borrowing Base (as defined in the ABL Loan Agreement), (ii) the addition of income attributable to the business associated with the Cub Foods banner and the Shoppers banner accounted for within discontinued operations (if any) to the definition of Consolidated Net Income (as defined in the ABL Loan Agreement), (iii) an increase of the sublimit of availability for letters of credit to $300 million which includes an increased further sublimit for the Canadian Borrower of $25 million, and (iv) other administrative changes. The ABL Loan Agreement provides for a secured asset-based revolving credit facility (the “ABL Credit Facility” and the loans thereunder, the “ABL Loans”), of which up to (i) $2,050.0 million is available to the U.S. Borrowers and (ii) $50.0 million is available to the Canadian Borrower. The ABL Loan Agreement also provides for (i) a $300.0 million sublimit of availability for letters of credit of which there is a further $25.0 million sublimit for the Canadian Borrower and (ii) a $100.0 million sublimit for short-term borrowings on a swingline basis of which there is a further $3.5 million sublimit for the Canadian Borrower. The ABL Credit Facility replaced the Company’s $900.0 million prior asset-based revolving credit facility. Under the ABL Loan Agreement, the Borrowers may, at their option, increase the aggregate amount of the ABL Credit Facility in an amount of up to $600.0 million without the consent of any ABL Lenders not participating in such increase, subject to certain customary conditions and applicable lenders committing to provide the increase in funding. There is no assurance that additional funding would be available. The Borrowers’ obligations under the ABL Credit Facility are guaranteed by most of the Company’s wholly-owned subsidiaries who are not also Borrowers (collectively, the “ABL Guarantors”), subject to customary exceptions and limitations. The Borrowers’ obligations under the ABL Credit Facility and the ABL Guarantors’ obligations under the related guarantees are secured by (i) a first-priority lien on all of the Borrowers’ and ABL Guarantors’ accounts receivable, inventory and certain other assets arising therefrom or related thereto (including substantially all of their deposit accounts, collectively, the “ABL Assets”) and (ii) a second-priority lien on all of the Borrowers’ and ABL Guarantors’ assets that do not constitute ABL Assets, in each case, subject to customary exceptions and limitations. Availability under the ABL Credit Facility is subject to a borrowing base (the “Borrowing Base”), which is based on 90% of eligible accounts receivable, plus 90% of eligible credit card receivables, plus 90% of the net orderly liquidation value of eligible inventory, plus 90% of eligible pharmacy receivables, plus certain pharmacy scripts availability of the Borrowers, after adjusting for customary reserves. The aggregate amount of the ABL Loans made and letters of credit issued under the ABL Credit Facility shall at no time exceed the lesser of the aggregate commitments under the ABL Credit Facility (currently $2,100.0 million or, if increased at the Borrowers’ option as described above, up to $2,700.0 million) or the Borrowing Base. To the extent that the Borrowers’ Borrowing Base declines, the availability under the ABL Credit Facility may decrease below $2,100.0 million. As of May 1, 2021, the U.S. Borrowers’ Borrowing Base, net of $173.0 million of reserves, was $2,252.5 million, which is above the $2,050.0 million limit of availability to the U.S. Borrowers under the ABL Credit Facility. As of May 1, 2021, the Canadian Borrower’s Borrowing Base, net of $4.6 million of reserves, was $49.6 million, which is below the $50.0 million limit of availability to the Canadian Borrower under the ABL Credit facility, resulting in total availability of $2,099.6 million for ABL Loans and letters of credit under the ABL Credit Facility. As of May 1, 2021, the U.S. Borrowers had $839.3 million of ABL Loans outstanding and the Canadian Borrower had no ABL Loans outstanding under the ABL Credit Facility, which are presented net of debt issuance costs of $8.8 million and are included in Long-term debt in the Condensed Consolidated Balance Sheets. As of May 1, 2021, the U.S. Borrowers had $117.5 million in letters of credit and the Canadian Borrower had no letters of credit outstanding under the ABL Credit Facility. The Company’s resulting remaining availability under the ABL Credit Facility was $1,142.8 million as of May 1, 2021. The ABL Loans of the U.S. Borrowers under the ABL Credit Facility bear interest at rates that, at the U.S. Borrowers’ option, can be either: (i) a base rate and an applicable margin or (ii) a LIBOR rate and an applicable margin. As of May 1, 2021, the applicable margin for base rate loans was 0.25% and the applicable margin for LIBOR loans was 1.25%. The ABL Loan Agreement contains provisions for the establishment of an alternative rate of interest in the event that LIBOR is no longer available. The ABL Loans of the Canadian Borrower under the ABL Credit Facility bear interest at rates that, at the Canadian Borrower’s option, can be either: (i) prime rate and an applicable margin or (ii) a Canadian dollar bankers’ acceptance equivalent rate and an applicable margin. As of May 1, 2021, the applicable margin for prime rate loans was 0.25%, and the applicable margin for Canadian dollar bankers’ acceptance equivalent rate loans was 1.25%. Commencing on the first day of the calendar month following the ABL Administrative Agent’s receipt of the Company’s aggregate availability calculation for the prior fiscal quarter, the applicable margins for borrowings by the U.S. Borrowers and Canadian Borrower will be subject to adjustment based upon the aggregate availability under the ABL Credit Facility. Unutilized commitments under the ABL Credit Facility are subject to a per annum fee of (i) 0.375% if the average daily total outstandings were less than 25% of the aggregate commitments during the preceding fiscal quarter or (ii) 0.25% if such average daily total outstandings were 25% or more of the aggregate commitments during the preceding fiscal quarter. As of May 1, 2021, the unutilized commitment fee was 0.25% per annum. The Borrowers are also required to pay a letter of credit fronting fee to each letter of credit issuer equal to 0.125% per annum of the amount available to be drawn under each such letter of credit, as well as a fee to all lenders equal to the applicable margin for LIBOR or Canadian dollar bankers’ acceptance equivalent rate loans, as applicable, times the average daily amount available to be drawn under all outstanding letters of credit. The ABL Loan Agreement subjects the Company to a fixed charge coverage ratio (as defined in the ABL Loan Agreement) of at least 1.0 to 1.0 calculated at the end of each fiscal quarter on a rolling four quarter basis when the adjusted aggregate availability (as defined in the ABL Loan Agreement) is less than the greater of (i) $235.0 million and (ii) 10% of the aggregate borrowing base. The Company has not been subject to the fixed charge coverage ratio covenant under the ABL Loan Agreement, including through the filing date of this Quarterly Report. The assets included in the Condensed Consolidated Balance Sheets securing the outstanding obligations under the ABL Credit Facility on a first-priority basis, and the unused credit and fees under the ABL Credit Facility, were as follows: Assets securing the ABL Credit Facility (in thousands) (1) : May 1, August 1, Certain inventory assets included in Inventories, net and Current assets of discontinued operations $ 2,352,755 $ 2,270,892 Certain receivables included in Accounts receivable, net and Current assets of discontinued operations $ 1,064,392 $ 1,077,682 (1) The ABL Credit Facility is also secured by all of the Company’s pharmacy scripts, which are included in Intangibles, net in the Condensed Consolidated Balance Sheets as of May 1, 2021 and August 1, 2020. Unused credit and fees under the ABL Credit Facility (in thousands, except percentages): May 1, 2021 Outstanding letters of credit $ 117,501 Letter of credit fees 1.375 % Unused credit $ 1,142,800 Unused facility fees 0.25 % The ABL Loan Agreement contains other customary affirmative and negative covenants and customary representations and warranties that must be accurate in order for the Borrowers to borrow under the ABL Credit Facility. The ABL Loan Agreement also contains customary events of default, including, but not limited to, payment defaults, breaches of representations and warranties, covenant defaults, events of bankruptcy and insolvency, failure of any guaranty or security document supporting the ABL Credit Facility to be in full force and effect, and a change of control. If an event of default occurs and is continuing, the Borrowers may be required to immediately repay all amounts outstanding under the ABL Loan Agreement. Term Loan Facility On the Supervalu acquisition date (“Closing Date”), the Company entered into a new term loan agreement (the “Term Loan Agreement”), by and among the Company and Supervalu (collectively, the “Term Borrowers”), the financial institutions that are parties thereto as lenders (collectively, the “Term Lenders”), Goldman Sachs Bank USA, as administrative agent for the Lenders, and the other parties thereto. The Term Loan Agreement provides for senior secured first lien term loans in an aggregate principal amount of $1,950.0 million, consisting of a $1,800.0 million seven-year tranche (the “Term B Tranche”) and a $150.0 million 364-day tranche (the “364-day Tranche” and, together with the Term B Tranche, collectively, the “Term Loan Facility”). The entire amount of the net proceeds from the Term Loan Facility was used to finance the Supervalu acquisition and related transaction costs. The loans under the Term B Tranche will be payable in full on October 22, 2025; provided that, if on or prior to December 31, 2024, that certain Agreement for Distribution of Products, dated as of October 30, 2015, by and between Whole Foods Market Distribution, Inc., a Delaware corporation, and the Company (the “Whole Foods Supply Agreement”) has not been extended until at least October 23, 2025 on terms not materially less favorable, taken as a whole, to the Company and its subsidiaries than those in effect on the Closing Date, then the loans under the Term B Tranche will be payable in full on December 31, 2024. On March 3, 2021, the Company entered into an amendment to the Whole Foods Supply Agreement, which extended the term of the agreement from September 28, 2025 to September 27, 2027, and which satisfies the extension requirement in the Term Loan Agreement. In fiscal 2021 year-to-date, the Company made prepayments on the Term B Tranche of $770.7 million as described above. The loans under the 364-day Tranche were paid in full on October 21, 2019. The Company funded the scheduled maturity of the $52.8 million outstanding borrowings under the 364-day Tranche with incremental borrowings under the ABL Credit Facility on October 21, 2019. Under the Term Loan Agreement, the Term Borrowers may, at their option, increase the amount of the Term B Tranche, add one or more additional tranches of term loans or add one or more additional tranches of revolving credit commitments, without the consent of any Term Lenders not participating in such additional borrowings, up to an aggregate amount of $656.3 million plus additional amounts based on satisfaction of certain leverage ratio tests, subject to certain customary conditions and applicable lenders committing to provide the additional funding. There can be no assurance that additional funding would be available. The Term Borrowers’ obligations under the Term Loan Facility are guaranteed by most of the Company’s wholly-owned domestic subsidiaries who are not also Term Borrowers (collectively, the “Term Guarantors”), subject to customary exceptions and limitations, including an exception for immaterial subsidiaries designated by the Company from time to time. The Term Borrowers’ obligations under the Term Loan Facility and the Term Guarantors’ obligations under the related guarantees are secured by (i) a first-priority lien on substantially all of the Term Borrowers’ and the Term Guarantors’ assets other than the ABL Assets and (ii) a second-priority lien on substantially all of the Term Borrowers’ and the Term Guarantors’ ABL Assets, in each case, subject to customary exceptions and limitations, including an exception for owned real property with net book values of less than $10.0 million. As of May 1, 2021, there was $570.5 million of owned real property pledged as collateral that was included in Property and equipment, net in the Condensed Consolidated Balance Sheets. Subsequent to May 1, 2021, the Company pledged an additional $123.7 million of owned real property as collateral, which includes eight additional distribution centers. The loans under the Term Loan Facility may be voluntarily prepaid, subject to certain minimum payment thresholds and the payment of breakage or other similar costs. Under the Term Loan Facility, the Company is required, subject to certain exceptions and customary reinvestment rights, to apply 100 percent of Net Cash Proceeds (as defined in the Term Loan Agreement) from certain types of asset sales to prepay the loans outstanding under the Term Loan Facility. Commencing with the fiscal year ending August 1, 2020, the Company must also prepay loans outstanding under the Term Loan Facility no later than 130 days after the fiscal year end in an aggregate principal amount equal to a specified percentage (which percentage ranges from 0 to 75 percent depending on the Consolidated First Lien Net Leverage Ratio (as defined in the Term Loan Agreement) as of the last day of such fiscal year) of Excess Cash Flow (as defined in the Term Loan Agreement) in excess of $10.0 million for the fiscal year then ended, minus any voluntary prepayments of the loans under the Term Loan Facility, the ABL Credit Facility (to the extent they permanently reduce commitments under the ABL Facility) and certain other indebtedness made during such fiscal year. Based on the Company’s Excess Cash Flow in fiscal 2020, a $72.0 million prepayment was required and paid in the quarter ending October 31, 2020. The potential amount of prepayment from Excess Cash Flow in fiscal 2021 that may be required in fiscal 2022 is not reasonably estimable as of May 1, 2021. As of May 1, 2021, the borrowings under the Term B Tranche of the Term Loan Facility bear interest at rates that, at the Term Borrowers’ option, can be either: (i) a base rate and a margin of 2.50% or (ii) a LIBOR rate and a margin of 3.50%; provided that the LIBOR rate shall never be less than 0.0%. The Term Loan Agreement contains provisions for the establishment of an alternative rate of interest in the event that LIBOR is no longer available. The Term Loan Agreement does not include any financial maintenance covenants but contains other customary affirmative and negative covenants and customary representations and warranties. The Term Loan Agreement also contains customary events of default, including, but not limited to, payment defaults, breaches of representations and warranties, covenant defaults, events of bankruptcy and insolvency, failure of any guaranty or security document supporting the Term Loan Facility to be in full force and effect, and a change of control. If an event of default occurs and is continuing, the Term Borrowers may be required to immediately repay all amounts outstanding under the Term Loan Agreement. As of May 1, 2021, the Company had borrowings of $1,002.3 million outstanding under the Term B Tranche, which are presented net of debt issuance costs of $19.2 million and an original issue discount on debt of $17.3 million. As of May 1, 2021, no amount of the Term B Tranche was classified as current. |
COMPREHENSIVE (LOSS) INCOME AND
COMPREHENSIVE (LOSS) INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
May 01, 2021 | |
Equity [Abstract] | |
COMPREHENSIVE (LOSS) INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 9—COMPREHENSIVE (LOSS) INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in Accumulated other comprehensive loss by component, net of tax, for fiscal 2021 year-to-date are as follows: (in thousands) Other Cash Flow Derivatives Benefit Plans Foreign Currency Translation Swap Agreements Total Accumulated other comprehensive loss at August 1, 2020 $ (67) $ (115,296) $ (21,419) $ (101,164) $ (237,946) Other comprehensive (loss) income before reclassifications (13) — 6,164 10,096 16,247 Reclassification of amounts included in net periodic benefit income — (807) — — (807) Reclassification of cash flow hedges (328) — — 25,742 25,414 Net current period Other comprehensive (loss) income (341) (807) 6,164 35,838 40,854 Accumulated other comprehensive loss at May 1, 2021 $ (408) $ (116,103) $ (15,255) $ (65,326) $ (197,092) Changes in Accumulated other comprehensive loss by component, net of tax, for fiscal 2020 year-to-date are as follows: (in thousands) Benefit Plans Foreign Currency Translation Swap Agreements Total Accumulated other comprehensive loss at August 3, 2019 $ (32,458) $ (20,082) $ (56,413) $ (108,953) Other comprehensive income (loss) before reclassifications 1,480 (3,561) (55,874) (57,955) Reclassification of amounts included in net periodic benefit income (1,722) — — (1,722) Reclassification of cash flow hedges — — 9,375 9,375 Pension settlement charge 7,610 — — 7,610 Net current period Other comprehensive income (loss) 7,368 (3,561) (46,499) (42,692) Accumulated other comprehensive loss at May 2, 2020 $ (25,090) $ (23,643) $ (102,912) $ (151,645) Items reclassified out of Accumulated other comprehensive loss had the following impact on the Condensed Consolidated Statements of Operations: 13-Week Period Ended 39-Week Period Ended Affected Line Item on the Condensed Consolidated Statements of Operations (in thousands) May 1, May 2, May 1, May 2, Pension and postretirement benefit plan obligations: Reclassification of amounts included in net periodic benefit income (1) $ (404) $ (777) $ (1,117) $ (2,328) Net periodic benefit income, excluding service cost Pension settlement charge — — — 10,303 Net periodic benefit income, excluding service cost Total reclassifications (404) (777) (1,117) 7,975 Income tax expense (benefit) 103 203 310 (2,087) Provision (benefit) for income taxes Total reclassifications, net of tax $ (301) $ (574) $ (807) $ 5,888 Swap agreements: Reclassification of cash flow hedge $ 11,652 $ 6,191 $ 35,186 $ 12,812 Interest expense, net Income tax benefit (3,127) (1,661) (9,444) (3,437) Provision (benefit) for income taxes Total reclassifications, net of tax $ 8,525 $ 4,530 $ 25,742 $ 9,375 Other cash flow hedges: Reclassification of cash flow hedge $ (612) $ — $ (448) $ — Cost of sales Income tax expense 164 — 120 — Provision (benefit) for income taxes Total reclassifications, net of tax $ (448) $ — $ (328) $ — (1) Reclassification of amounts included in net periodic benefit income include reclassification of prior service benefit and reclassification of net actuarial loss as reflected in Note 11—Benefit Plans. As of May 1, 2021, the Company expects to reclassify $43.1 million out of Accumulated other comprehensive loss and primarily into Interest expense, net during the following twelve-month period. |
SHARE-BASED AWARDS
SHARE-BASED AWARDS | 9 Months Ended |
May 01, 2021 | |
Share-Based Awards [Abstract] | |
SHARE-BASED AWARDS | NOTE 10—SHARE-BASED AWARDS During the second quarter of fiscal 2021, the Company authorized for issuance and registered an additional 3.6 million shares of common stock under the Amended and Restated 2020 Equity Incentive Plan. In fiscal 2021 year-to-date, the Company granted restricted stock units and performance share units to its directors, executive officers, and certain employees representing a right to receive an aggregate of 2.7 million shares. As of May 1, 2021, there were 3.9 million shares available for issuance under the Amended and Restated 2020 Equity Incentive Plan. |
BENEFIT PLANS
BENEFIT PLANS | 9 Months Ended |
May 01, 2021 | |
Retirement Benefits [Abstract] | |
BENEFIT PLANS | NOTE 11—BENEFIT PLANS Net periodic benefit income and contributions to defined benefit pension and other post-retirement benefit plans consisted of the following: 13-Week Period Ended Pension Benefits Other Postretirement Benefits (in thousands) May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 Net Periodic Benefit (Income) Cost Service cost $ — $ — $ 12 $ 14 Interest cost 9,164 13,602 103 236 Expected return on plan assets (25,965) (25,765) (26) (54) Amortization of prior service credit — — (350) (350) Amortization of net actuarial loss (gain) 261 3 (315) (430) Net periodic benefit income $ (16,540) $ (12,160) $ (576) $ (584) Contributions to benefit plans $ (375) $ (1,500) $ (950) $ (175) 39-Week Period Ended Pension Benefits Other Postretirement Benefits (in thousands) May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 Net Periodic Benefit (Income) Cost Service cost $ — $ — $ 36 $ 42 Interest cost 27,492 43,894 309 708 Expected return on plan assets (77,894) (79,834) (78) (162) Amortization of prior service credit — — (1,050) (1,050) Amortization of net actuarial loss (gain) 878 9 (945) (1,287) Pension settlement charge — 10,303 — — Net periodic benefit income $ (49,524) $ (25,628) $ (1,728) $ (1,749) Contributions to benefit plans $ (1,125) $ (6,750) $ (2,850) $ (335) Pension Contributions No minimum pension contributions are required to be made under either the SUPERVALU Inc. Retirement Plan or the Unified Grocers, Inc. Cash Balance Plan under the Employee Retirement Income Security Act of 1974, as amended, (“ERISA”) in fiscal 2021. The Company expects to contribute approximately $5.3 million to its other non-qualified pension plans and postretirement benefit plans in fiscal 2021. Multiemployer Pension Plans The Company contributed $12.2 million and $12.3 million in the third quarters of fiscal 2021 and 2020, respectively, and $35.9 million and $38.4 million in fiscal 2021 and 2020 year-to-date, respectively, to continuing and discontinued operations multiemployer pension plans. In connection with the Company’s consolidation of distribution centers in the Pacific Northwest, during the second quarter of fiscal 2020, the Company recorded a $10.6 million multiemployer pension plan withdrawal liability, under which payments will be made over a one-year period the timing of which is dependent upon the plan’s assessment. The withdrawal liability is included in Other long-term liabilities and the withdrawal charge was recorded within Restructuring, acquisition and integration related expenses. Lump Sum Pension Settlement On August 1, 2019, the Company amended the SUPERVALU Retirement Plan to provide for a lump sum settlement window. On August 2, 2019, the Company sent plan participants lump sum settlement election offerings that committed the plan to pay certain deferred vested pension plan participants and retirees, who make such an election, a lump sum payment in exchange for their rights to receive ongoing payments from the plan. The lump sum payment amounts are equal to the present value of the participant’s pension benefits, and were made to certain (i) retired associates and beneficiaries who are receiving their monthly pension benefit payment and (ii) terminated associates who are deferred vested in the plan, had not yet begun receiving monthly pension benefit payments and who are not eligible for any prior lump sum offerings under the plan. Benefit obligations associated with the lump sum offering have been incorporated into the funded status utilizing the actuarially determined lump sum payments based on estimated offer acceptances. The plan made aggregate lump sum settlement payments of $664.0 million to plan participants during the second quarter of fiscal 2020. The lump sum settlement payments resulted in a non-cash pension settlement charge of $10.3 million in the second quarter of fiscal 2020 from the acceleration of a portion of the accumulated unrecognized actuarial loss, which was based on the fair value of SUPERVALU Retirement Plan assets and remeasured liabilities. As a result of the settlement payments, the SUPERVALU Retirement Plan obligations were remeasured using a discount rate of 3.1 percent and the MP-2019 mortality improvement scale. This remeasurement resulted in a $1.5 million decrease to Accumulated other comprehensive loss. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
May 01, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 12—INCOME TAXES The effective income tax rate for continuing operations was an expense of 25.8% compared to a benefit of 3.1% on pre-tax income for the third quarters of fiscal 2021 and 2020, respectively. The change in the rate for the quarter was primarily driven by the impact of a tax benefit from the revaluation of net operating loss deferred tax assets in the third quarter of fiscal 2020 due to passage of the CARES Act. The effective income tax rate for continuing operations was an expense of 23.6% on pre-tax income compared to a benefit of 21.2% on pre-tax losses for fiscal 2021 year-to-date and fiscal 2020 year-to-date, respectively. The change in the year-to-date rate was primarily driven by the impact of the goodwill impairment charge recorded in fiscal 2020, partially offset by the impact of a tax benefit from the revaluation of net operating loss deferred tax assets in the third quarter of fiscal 2020 due to passage of the CARES Act. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended |
May 01, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | NOTE 13—EARNINGS (LOSS) PER SHARE The following is a reconciliation of the basic and diluted number of shares used in computing earnings (loss) per share: 13-Week Period Ended 39-Week Period Ended (in thousands, except per share data) May 1, May 2, May 1, May 2, Basic weighted average shares outstanding 56,458 53,718 56,028 53,485 Net effect of dilutive stock awards based upon the treasury stock method 4,081 1,499 3,648 — Diluted weighted average shares outstanding 60,539 55,217 59,676 53,485 Basic earnings (loss) per share: Continuing operations $ 0.83 $ 1.72 $ 1.78 $ (5.80) Discontinued operations $ 0.03 $ (0.08) $ 0.12 $ (0.30) Basic earnings (loss) per share $ 0.86 $ 1.64 $ 1.90 $ (6.10) Diluted earnings (loss) per share: Continuing operations $ 0.77 $ 1.67 $ 1.67 $ (5.80) Discontinued operations (1) $ 0.03 $ (0.08) $ 0.11 $ (0.30) Diluted earnings (loss) per share $ 0.80 $ 1.60 $ 1.78 $ (6.10) Anti-dilutive stock-based awards excluded from the calculation of diluted earnings per share 790 1,771 1,152 1,868 (1) The computation of diluted earnings per share from discontinued operations excludes the net effect of dilutive stock awards based on the treasury stock method of approximately 1.5 million shares for the third quarter of fiscal 2020. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 9 Months Ended |
May 01, 2021 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | NOTE 14—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 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. 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. In the fourth quarter of fiscal 2020, the Company updated its segment profit measure to Adjusted EBITDA. Prior period amounts have been recast to reflect this change in segment profit measure. 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: 13-Week Period Ended 39-Week Period Ended (in thousands) May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 Net sales: Wholesale (1) $ 6,359,810 $ 6,749,984 $ 19,399,868 $ 19,024,209 Retail 578,246 636,887 1,794,028 1,690,742 Other 54,808 58,359 165,848 164,511 Eliminations (373,022) (413,512) (1,179,162) (1,119,750) Total Net sales $ 6,619,842 $ 7,031,718 $ 20,180,582 $ 19,759,712 Continuing Operations Adjusted EBITDA: Wholesale $ 161,073 $ 199,884 $ 470,802 $ 408,650 Retail 21,547 36,931 71,159 58,921 Other 85 (17,247) (3,610) (4,419) Eliminations (5,375) 53 (1,429) 547 Adjustments: Net income attributable to noncontrolling interests 1,394 2,238 4,366 3,407 Total other expense, net (25,383) (32,669) (108,828) (114,933) Depreciation and amortization (66,365) (69,642) (210,088) (214,002) Share-based compensation (11,668) (12,992) (38,490) (22,051) Restructuring, acquisition and integration related expenses (9,867) (14,557) (44,078) (65,751) Goodwill and asset impairment charges — — — (425,405) Gain (loss) on sale of assets 25 (351) (144) (785) Notes receivable charges — — — (12,516) Legal reserve charge — — — (1,196) Other retail expense (355) — (3,358) — Income (loss) from continuing operations before income taxes $ 65,111 $ 91,648 $ 136,302 $ (389,533) Depreciation and amortization: Wholesale $ 58,136 $ 66,754 $ 184,723 $ 200,515 Retail 6,776 611 20,928 2,912 Other 1,453 2,277 4,437 10,575 Total depreciation and amortization $ 66,365 $ 69,642 $ 210,088 $ 214,002 Capital expenditures: Wholesale $ 66,282 $ 33,456 $ 150,155 $ 119,085 Retail 7,512 2,131 14,822 7,426 Other 147 88 480 292 Total capital expenditures $ 73,941 $ 35,675 $ 165,457 $ 126,803 (1) As presented in Note 3—Revenue Recognition, for the third quarters of fiscal 2021 and 2020, the Company recorded $323.5 million and $352.8 million, respectively, and $1,026.4 million and $958.6 million in fiscal 2021 and 2020 year-to-date, respectively, within Net sales in its Wholesale reportable segment attributable to Wholesale sales to its Retail segment that have been eliminated upon consolidation. 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 thousands) May 1, August 1, Assets: Wholesale $ 6,580,627 $ 6,588,836 Retail 560,725 542,470 Other 436,251 501,468 Eliminations (63,108) (54,784) Total assets of continuing operations $ 7,514,495 $ 7,577,990 |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS | 9 Months Ended |
May 01, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS | NOTE 15—COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS Guarantees and Contingent Liabilities The Company has outstanding guarantees related to certain leases, fixture financing loans and other debt obligations of various retailers as of May 1, 2021. These guarantees were generally made to support the business growth of wholesale customers. The guarantees are generally for the entire terms of the leases, fixture financing loans or other debt obligations with remaining terms that range from less than one year to nine years, with a weighted average remaining term of approximately five years. For each guarantee issued, if the wholesale customer or other third-party defaults on a payment, the Company would be required to make payments under its guarantee. Generally, the guarantees are secured by indemnification agreements or personal guarantees. The Company reviews performance risk related to its guarantee obligations based on internal measures of credit performance. As of May 1, 2021, the maximum amount of undiscounted payments the Company would be required to make in the event of default of all guarantees was $28.0 million ($24.4 million on a discounted basis). Based on the indemnification agreements, personal guarantees and results of the reviews of performance risk, as of May 1, 2021, a total estimated loss of $1.0 million is recorded in the Condensed Consolidated Balance Sheets. The Company is contingently liable for leases that have been assigned to various third parties in connection with facility closings and dispositions. The Company could be required to satisfy the obligations under the leases if any of the assignees are unable to fulfill their lease obligations. Due to the wide distribution of the Company’s lease assignments among third parties, and various other remedies available, the Company believes the likelihood that it will be required to assume a material amount of these obligations is remote. For leases that have been assigned, the Company has recorded the associated right of use operating lease assets and obligations within the Condensed Consolidated Balance Sheets. No associated lessor receivables are reflected on the Condensed Consolidated Balance Sheets; however, the Company expects its assignees to make lease payments to its landlords. For the Company’s lease guarantee arrangements, no amounts have been recorded within the Condensed Consolidated Balance Sheets as the fair value has been determined to be de minimis. The Company is a party to a variety of contractual agreements under which it may be obligated to indemnify the other party for certain matters in the ordinary course of business, which indemnities may be secured by operation of law or otherwise. These agreements primarily relate to the Company’s commercial contracts, service agreements, contracts entered into for the purchase and sale of stock or assets, operating leases and other real estate contracts, financial agreements, agreements to provide services to the Company and agreements to indemnify officers, directors and employees in the performance of their work. While the Company’s aggregate indemnification obligations could result in a material liability, the Company is not aware of any matters that are expected to result in a material liability. No amount has been recorded in the Condensed Consolidated Balance Sheets for these contingent obligations as the fair value has been determined to be de minimis. In connection with Supervalu’s sale of New Albertson’s, Inc. (“NAI”) on March 21, 2013, the Company remains contingently liable with respect to certain self-insurance commitments and other guarantees as a result of parental guarantees issued by Supervalu with respect to the obligations of NAI that were incurred while NAI was Supervalu’s subsidiary. Based on the expected settlement of the self-insurance claims that underlie the Company’s commitments, the Company believes that such contingent liabilities will continue to decline. Subsequent to the sale of NAI, NAI collateralized most of these obligations with letters of credit and surety bonds to numerous state governmental authorities. Because NAI remains a primary obligor on these self-insurance and other obligations and has collateralized most of the self-insurance obligations for which the Company remains contingently liable, the Company believes that the likelihood that it will be required to assume a material amount of these obligations is remote. Accordingly, no amount has been recorded in the Condensed Consolidated Balance Sheets for these guarantees, as the fair value has been determined to be de minimis. Agreements with Save-A-Lot and Onex The Agreement and Plan of Merger pursuant to which Supervalu sold the Save-A-Lot business in 2016 (the “SAL Merger Agreement”) contains customary indemnification obligations of each party with respect to breaches of their respective representations, warranties and covenants, and certain other specified matters, on the terms and subject to the limitations set forth in the SAL Merger Agreement. Similarly, Supervalu entered into a Separation Agreement (the “Separation Agreement”) with Moran Foods, LLC d/b/a Save-A-Lot (“Moran Foods”), which contains indemnification obligations and covenants related to the separation of the assets and liabilities of the Save-A-Lot business from the Company. The Company also entered into a Services Agreement with Moran Foods (the “Services Agreement”), pursuant to which the Company is providing Save-A-Lot with various technical, human resources, finance and other operational services for a term of five years, subject to termination provisions that can be exercised by each party. The initial annual base charge under the Services Agreement is $30 million, subject to adjustments. The Company expects that services provided under the Services Agreement will wind down at or near the end of the initial term in December 2021. The Services Agreement generally requires each party to indemnify the other party against third-party claims arising out of the performance of or the provision or receipt of services under the Services Agreement. While the Company’s aggregate indemnification obligations to Save-A-Lot and Onex, the purchaser of Save-A-Lot, could result in a material liability, the Company is not aware of any matters that are expected to result in a material liability. The Company has recorded the fair value of the guarantee in the Condensed Consolidated Balance Sheets within Other long-term liabilities. Other Contractual Commitments In the ordinary course of business, the Company enters into supply contracts to purchase products for resale, and service contracts for fixed asset and information technology systems. These contracts typically include either volume commitments or fixed expiration dates, termination provisions and other standard contractual considerations. As of May 1, 2021, the Company had approximately $243 million of non-cancelable future purchase obligations. Legal Proceedings The Company is one of dozens of companies that have been named in various lawsuits alleging that drug manufacturers, retailers and distributors contributed to the national opioid epidemic. Currently, UNFI, primarily through its subsidiary, Advantage Logistics, is named in approximately 42 suits pending in the United States District Court for the Northern District of Ohio where over 1,800 cases have been consolidated as Multi-District Litigation (“MDL”). In accordance with the Stock Purchase Agreement dated January 10, 2013, between New Albertson’s Inc. (“New Albertson’s”) and the Company (the “Stock Purchase Agreement”), New Albertson’s is defending and indemnifying UNFI in a majority of the cases under a reservation of rights as those cases relate to New Albertson’s pharmacies. In one of the MDL cases, MDL No. 2804 filed by The Blackfeet Tribe of the Blackfeet Indian Reservation, all defendants were ordered to Answer the Complaint, which UNFI did on July 26, 2019. To date, no discovery has been conducted against UNFI in any of the actions. UNFI is vigorously defending these matters, which it believes are without merit. On January 21, 2021, various health plans filed a complaint in Minnesota state court against the Company, Albertson’s Companies, LLC (“Albertson’s”) and Safeway, Inc. alleging the defendants committed fraud by improperly reporting inflated prices for prescription drugs for members of health plans. The Plaintiffs assert six causes of action against the defendants: common law fraud, fraudulent nondisclosure, negligent misrepresentation, unjust enrichment, violation of the Minnesota Uniform Deceptive Trade Practices Act and violation of the Minnesota Prevention of Consumer Fraud Act. The plaintiffs allege that between 2006 and 2016, Supervalu overcharged the health plans by not providing the health plans, as part of usual and customary prices, the benefit of discounts given to customers purchasing prescription medication who requested that Supervalu match competitor prices. Plaintiffs seek an unspecified amount of damages. Similar to the above case, for the majority of the relevant period Supervalu and Albertson’s operated as a combined company. In March 2013, Supervalu divested Albertson’s and pursuant to the Stock Purchase Agreement, Albertson’s is responsible for any claims regarding its pharmacies. On February 19, 2021, Albertson’s and Safeway removed the case to Minnesota Federal District Court and on March 22, 2021 plaintiffs’ filed a motion to remand to state court. On February 26, 2021, defendants filed a motion to dismiss. The hearing on the remand motion and motions to dismiss occurred on May 20, 2021. The Company believes these claims are without merit and intends to vigorously defend this matter. UNFI is currently subject to a qui tam action alleging violations of the False Claims Act (“FCA”). In United States ex rel. Schutte and Yarberry v. Supervalu, New Albertson’s, Inc., et al, which is pending in the U.S. District Court for the Central District of Illinois, the relators allege that defendants overcharged government healthcare programs by not providing the government, as a part of usual and customary prices, the benefit of discounts given to customers purchasing prescription medication who requested that defendants match competitor prices. The complaint was originally filed under seal and amended on November 30, 2015. The government previously investigated the relators’ allegations and declined to intervene. Violations of the FCA are subject to treble damages and penalties of up to a specified dollar amount per false claim. Relators elected to pursue the case on their own and have alleged FCA damages against Supervalu and New Albertson’s in excess of $100 million, not including trebling and statutory penalties. For the majority of the relevant period Supervalu and New Albertson’s operated as a combined company. In March 2013, Supervalu divested New Albertson’s (and related assets) pursuant to the Stock Purchase Agreement. Based on the claims that are currently pending and the Stock Purchase Agreement, Supervalu’s share of a potential award (at the currently claimed value by relators) would be approximately $24 million, not including trebling and statutory penalties. Both sides moved for summary judgment. On August 5, 2019, the Court granted one of the relators’ summary judgment motions finding that the defendants’ lower matched prices are the usual and customary prices and that Medicare Part D and Medicaid were entitled to those prices. On July 2, 2020 the Court granted the defendants’ summary judgment motion and denied the relators’ motion, dismissing the case. On July 9, 2020 the relators filed a notice of appeal with the 7th Circuit Court of Appeals, and on September 30, 2020 filed an appellate brief. On November 30, 2020, the Company filed its response. The hearing before the 7th Circuit Court of Appeals occurred on January 19, 2021. From time to time, the Company receives notice of claims or potential claims or becomes involved in litigation, alternative dispute resolution, such as arbitration, or other legal and regulatory proceedings that arise in the ordinary course of its business, including investigations and claims regarding employment law, including wage and hour; pension plans; labor union disputes, including unfair labor practices, such as claims for back-pay in the context of labor contract negotiations; supplier, customer and service provider contract terms and claims, including matters related to supplier or customer insolvency or general inability to pay obligations as they become due; product liability claims; real estate and environmental matters, including claims in connection with its ownership and lease of a substantial amount of real property, both retail and warehouse properties; and antitrust. Other than as described above, there are no pending material legal proceedings to which the Company is a party or to which its property is subject. Predicting the outcomes of claims and litigation and estimating related costs and exposures involves substantial uncertainties that could cause actual outcomes, costs and exposures to vary materially from current expectations. Management regularly monitors the Company’s exposure to the loss contingencies associated with these matters and may from time to time change its predictions with respect to outcomes and estimates with respect to related costs and exposures. As of May 1, 2021, no material accrued obligations, individually or in the aggregate, have been recorded for these legal proceedings. Although management believes it has made appropriate assessments of potential and contingent loss in each of these cases based on current facts and circumstances, and application of prevailing legal principles, there can be no assurance that material differences in actual outcomes from management’s current assessments, costs and exposures relative to current predictions and estimates, or material changes in such predictions or estimates will not occur. The occurrence of any of the foregoing, could have a material adverse effect on our financial condition, results of operations or cash flows. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
May 01, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | NOTE 16—DISCONTINUED OPERATIONS In conjunction with the Supervalu acquisition, the Company announced its plan to sell the remaining acquired retail operations of Supervalu. Since the acquisition, the Company sold Hornbacher’s, and sold and exited the retail operations of certain Shoppers locations, Shop ‘n Save St. Louis and Shop ‘n Save East. As discussed further in Note 1—Significant Accounting Policies, in the fourth quarter of fiscal 2020, the Company determined Retail no longer qualified for held for sale presentation and the results of operations, financial position and cash flows of Retail have been revised in order to present Retail within continuing operations. Subsequent to the presentation changes in the fourth quarter of fiscal 2020, discontinued operations contains the historical results of operations, financial position and cash flows of Hornbacher’s, certain Shoppers locations, Shop ‘n Save St. Louis and Shop ‘n Save East. As of May 1, 2021, only four Shoppers locations are contained in remaining disposal groups that continue to be classified as operations held for sale as discontinued operations. In the second quarter of fiscal 2020, the Company entered into agreements to sell 13 Shoppers stores and decided to close six locations. During fiscal 2020 year-to-date, within discontinued operations the Company incurred approximately $28.3 million in pre-tax aggregate costs and charges related to Shoppers stores that remain within discontinued operations, consisting of $22.9 million of operating losses, severance costs and transaction costs during the period of wind-down and $5.5 million of property and equipment impairment charges related to impairment reviews. Operating results of discontinued operations are summarized below: 13-Week Period Ended 39-Week Period Ended (In thousands) May 1, May 2, May 1, May 2, Net sales $ 20,009 $ 30,115 $ 67,798 $ 200,786 Cost of sales 13,172 21,548 45,692 143,187 Gross profit 6,837 8,567 22,106 57,599 Operating expenses 4,658 6,046 14,417 46,350 Restructuring expenses and charges (187) 6,686 596 30,870 Operating income (loss) 2,366 (4,165) 7,093 (19,621) Other income, net — (107) — (171) Income (loss) from discontinued operations before income taxes 2,366 (4,058) 7,093 (19,450) Provision (benefit) for income taxes 713 20 341 (3,322) Income (loss) from discontinued operations, net of tax $ 1,653 $ (4,078) $ 6,752 $ (16,128) No net sales were recorded within continuing operations for retail stores within discontinued operations that the Company disposed of and expects to dispose of without a supply agreement. These net sales have been eliminated upon consolidation within the Wholesale segment of continuing operations and amounted to $12.4 million and $16.8 million in the third quarters of fiscal 2021 and 2020, respectively, and $40.2 million and $108.9 million in fiscal 2021 and 2020 year-to-date, respectively. The following table summarizes the carrying amounts of major classes of assets and liabilities that were classified as held-for-sale on the Condensed Consolidated Balance Sheets: (In thousands) May 1, 2021 August 1, 2020 Current assets Cash and cash equivalents $ 136 $ 119 Accounts receivable, net 477 350 Inventories, net 3,876 4,233 Other current assets 410 365 Total current assets of discontinued operations 4,899 5,067 Long-term assets Property and equipment 965 3,450 Other long-term assets 465 465 Total long-term assets of discontinued operations 1,430 3,915 Total assets of discontinued operations $ 6,329 $ 8,982 Current liabilities Accounts payable $ 2,757 $ 3,613 Accrued compensation and benefits 2,332 4,501 Other current liabilities 1,907 3,324 Total current liabilities of discontinued operations 6,996 11,438 Long-term liabilities Other long-term liabilities 15 1,738 Total liabilities of discontinued operations 7,011 13,176 Net liabilities of discontinued operations $ (682) $ (4,194) |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
May 01, 2021 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business United Natural Foods, Inc. and its subsidiaries (the “Company”, “we”, ”us”, “UNFI”, or “our”) is a leading distributor of natural, organic, specialty, produce and conventional grocery and non-food products, and provider of support services to retailers. The Company sells its products primarily throughout the United States and Canada. |
Fiscal Year | Fiscal Year The Company’s fiscal year ends on the Saturday closest to July 31 and contain either 52 or 53 weeks. References to the third quarter of fiscal 2021 and 2020 relate to the 13-week fiscal quarters ended May 1, 2021 and May 2, 2020, respectively. References to fiscal 2021 and 2020 year-to-date relate to the 39-week fiscal periods ended May 1, 2021 and May 2, 2020, respectively. |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Unless otherwise indicated, references to the Condensed Consolidated Statements of Operations, the Condensed Consolidated Balance Sheets and the Notes to the Condensed Consolidated Financial Statements exclude all amounts related to discontinued operations. Refer to Note 16—Discontinued Operations for additional information about the Company’s discontinued operations. |
Discontinued Operations | Discontinued OperationsIn the fourth quarter of fiscal 2020, the Company determined it no longer met the held for sale criterion for a probable sale to be completed within 12 months for the Cub Foods business and the majority of the remaining Shoppers locations excluding Shoppers locations that are held for sale within discontinued operations (collectively “Retail”). As a result, the Company revised its Condensed Consolidated Financial Statements to reclassify Retail from discontinued operations to continuing operations. This change in financial statement presentation resulted in the inclusion of Retail’s results of operations, financial position, cash flows and related disclosures within continuing operations. Prior periods presented in these Condensed Consolidated Financial Statements have been conformed to the current period presentation, resulting in Retail being presented in continuing operations for all periods. |
Use of Estimates | Use of Estimates The preparation of the Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash equivalents consist of highly liquid investments with original maturities of three months or less. The Company’s banking arrangements allow it to fund outstanding checks when presented to the financial institution for payment. The Company funds all intraday bank balance overdrafts during the same business day. Checks outstanding in excess of bank balances create book overdrafts, which are recorded in Accounts payable in the Condensed Consolidated Balance Sheets and are reflected as an operating activity in the Condensed Consolidated Statements of Cash Flows. |
Reclassifications | Reclassifications Within the Condensed Consolidated Statements of Cash Flows certain immaterial amounts have been reclassified to conform with current year presentation. These reclassifications had no impact on reported net income, cash flows, or total assets and liabilities. |
Inventories, Net | Inventories, NetInventories are valued at the lower of cost or market. Substantially all of the Company’s inventories consist of finished goods and a substantial portion of its inventories have a last-in, first-out (“LIFO”) reserve applied. Interim LIFO calculations are based on the Company’s estimates of expected year end inventory levels and costs, as the actual valuation of inventory under the LIFO method is computed at the end of each fiscal year based on the inventory levels and costs at that time. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) 2016‐13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments and subsequent amendments to the initial guidance: ASU 2018‐19, ASU 2019‐04, ASU 2019‐05, and ASU 2019‐11 (collectively, “Topic 326”). Topic 326 changed the impairment model for most financial assets and certain other instruments. For trade and other receivables, guarantees and other instruments, entities are required to use a new forward‐looking expected loss model that replaces the previous incurred loss model and generally results in earlier recognition of credit losses. The Company adopted this standard in the first quarter of fiscal 2021 on August 2, 2020, the effective and initial application date, using a modified‐retrospective basis as required by the standard by means of a cumulative‐effect adjustment to the opening balance of Retained earnings in the Company’s Condensed Consolidated Statement of Stockholders’ Equity. The difference between reserves and allowances recorded under the former incurred loss model and the amount determined under the current expected loss model, net of the deferred tax impact, was recorded as an adjustment to Retained earnings. Adoption of this standard did not have a material impact to the Company’s Condensed Consolidated Financial Statements. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326 Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825 . This ASU clarifies the accounting treatment for the measurement of credit losses under ASC 326 and provides further clarification on previously issued updates including ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities and ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Since the Company adopted ASU 2017-12 in the fourth quarter of fiscal 2018, the amendments in ASU 2019-04 related to clarifications on Accounting for Hedging Activities, which were adopted by the Company in the first quarter of fiscal 2020, with no impact to Accumulated other comprehensive loss or Retained earnings for fiscal 2020, as the Company did not have separately measured ineffectiveness related to its cash flow hedges. The remaining amendments within ASU 2019-04 were adopted in the first quarter of fiscal 2021 with the adoption of Topic 326. Adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. ASU 2018-15 requires implementation costs incurred by customers in cloud computing arrangements (i.e. hosting arrangements) to be capitalized under the same premises as authoritative guidance for internal-use software, and deferred over the noncancellable term of the cloud computing arrangements plus any optional renewal periods that are reasonably certain to be exercised by the customer or for which the exercise is controlled by the service provider. The Company adopted this standard on a prospective basis in the first quarter of fiscal 2021. The Company expects to incur immaterial implementation costs in fiscal 2021. Under this standard, the Company is required to defer these costs and recognize these costs as a service expense over future periods. Adoption of this standard did not have a material impact on the Company’s Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans . ASU 2018-14 requires entities to disclose the weighted-average interest crediting rates used, reasons for significant gains and losses affecting benefit obligations, and an explanation of any other significant changes in the benefit obligation or plan assets. The amendment also removed certain required disclosures. The Company adopted this guidance in the first quarter of fiscal 2021. The provisions of the new standard do not have any effect on other disclosures in these Condensed Consolidated Financial Statements but will require disclosure updates in the Company’s annual audited consolidated financial statements. Recently Issued Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . ASU 2019-12 eliminates certain exceptions to Topic 740’s general principles. The amendments also improve consistent application and simplifies its application. The Company is required to adopt this guidance in the first quarter of fiscal 2022. The Company is currently reviewing the provisions of the new standard and evaluating its impact on the Company’s consolidated financial statements. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
May 01, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | 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) (1) May 1, 2021 Customer Channel Wholesale Retail Other Eliminations (3) Consolidated Chains $ 2,949 $ — $ — $ — $ 2,949 Independent retailers 1,599 — — — 1,599 Supernatural 1,287 — — — 1,287 Retail — 578 — — 578 Other 525 — 55 — 580 Eliminations — — — (373) (373) Total $ 6,360 $ 578 $ 55 $ (373) $ 6,620 Net Sales for the 13-Week Period Ended (in millions) (1) May 2, 2020 (2) Customer Channel Wholesale Retail Other Eliminations (3) Consolidated Chains $ 3,125 $ — $ — $ — $ 3,125 Independent retailers 1,805 — — — 1,805 Supernatural 1,279 — — — 1,279 Retail — 637 — — 637 Other 541 — 58 — 599 Eliminations — — — (414) (414) Total $ 6,750 $ 637 $ 58 $ (414) $ 7,032 Net Sales for the 39-Week Period Ended (in millions) (1) May 1, 2021 Customer Channel Wholesale Retail Other Eliminations (3) Consolidated Chains $ 9,066 $ — $ — $ — $ 9,066 Independent retailers 4,972 — — — 4,972 Supernatural 3,799 — — — 3,799 Retail — 1,794 — — 1,794 Other 1,563 — 166 — 1,729 Eliminations — — — (1,179) (1,179) Total $ 19,400 $ 1,794 $ 166 $ (1,179) $ 20,181 Net Sales for the 39-Week Period Ended (in millions) (1) May 2, 2020 (2) Customer Channel Wholesale Retail Other Eliminations (3) Consolidated Chains $ 8,909 $ — $ — $ — $ 8,909 Independent retailers 4,923 — — — 4,923 Supernatural 3,601 — — — 3,601 Retail — 1,691 — — 1,691 Other 1,591 — 164 — 1,755 Eliminations — — — (1,120) (1,120) Total $ 19,024 $ 1,691 $ 164 $ (1,120) $ 19,760 (1) As a result of displaying amounts in millions, totals may not sum due to rounding. (2) In the first quarter of fiscal 2021, the presentation of net sales by customer channel was recast to present the Chains and Other channel exclusive of the intercompany eliminations and present total eliminations separately. There was no impact to the Condensed Consolidated Statements of Operations. The Company believes this modified basis better reflects its channel presentation, as it further aligns with segment presentation and how sales channel information would appear following the potential disposition of Retail, assuming all banners retain a supply agreement. In addition, during the fourth quarter of fiscal 2020, the presentation of net sales by customer channel was recast to be presented on a basis consistent with customer size. International customers other than Canada, and alternative format sales continue to be classified within Other. The main effect of the change was to re-categorize the former Supermarkets and Independents channels, previously classified by the majority of product carried by those customers between conventional and natural products, respectively, to classify those stores by the number of customer locations we supply. There was no impact to the Condensed Consolidated Statements of Operations as a result of the reclassification of customer types. The Company believes this modified basis better reflects the nature and economic risks of cash flows from customers. (3) Eliminations primarily includes the net sales elimination of Wholesale’s sales to the Retail segment and the elimination of sales from segments included within Other to Wholesale. |
Schedule of Accounts, Notes, Loans and Financing Receivable | Accounts and notes receivable are as follows: (in thousands) May 1, 2021 August 1, 2020 Customer accounts receivable $ 1,143,399 $ 1,156,694 Allowance for uncollectible receivables (51,502) (55,928) Other receivables, net 14,681 19,433 Accounts receivable, net $ 1,106,578 $ 1,120,199 Notes receivable, net, included within Prepaid expenses and other current assets $ 10,317 $ 49,268 Long-term notes receivable, net, included within Other assets $ 17,219 $ 25,800 |
RESTRUCTURING, ACQUISITION, A_2
RESTRUCTURING, ACQUISITION, AND INTEGRATION RELATED EXPENSES (Tables) | 9 Months Ended |
May 01, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Acquisition and Integration Related Expenses Incurred | Restructuring, acquisition and integration related expenses incurred were as follows: 13-Week Period Ended 39-Week Period Ended (in thousands) May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 2019 SUPERVALU INC. restructuring expenses $ — $ 1,492 $ — $ 3,993 Restructuring and integration costs 12,047 552 41,489 25,257 Closed property (recoveries) charges and costs (2,180) 12,513 2,589 36,501 Total $ 9,867 $ 14,557 $ 44,078 $ 65,751 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended |
May 01, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Value of Goodwill | Changes in the carrying value of Goodwill by reportable segment that have goodwill consisted of the following: (in thousands) Wholesale Other Total Goodwill as of August 1, 2020 $ 9,747 (1) $ 9,860 (2) $ 19,607 Change in foreign exchange rates 888 — 888 Goodwill as of May 1, 2021 $ 10,635 (1) $ 9,860 (2) $ 20,495 (1) Amounts are net of accumulated goodwill impairment charges of $716.5 million as of August 1, 2020 and May 1, 2021. (2) Amounts are net of accumulated goodwill impairment charges of $9.6 million as of August 1, 2020 and May 1, 2021. |
Identifiable Intangible Assets | Identifiable intangible assets, net consisted of the following: May 1, 2021 August 1, 2020 (in thousands) Gross Carrying Accumulated Net Gross Carrying Accumulated Net Amortizing intangible assets: Customer relationships $ 1,008,194 $ 219,508 $ 788,686 $ 1,007,118 $ 172,832 $ 834,286 Pharmacy prescription files 32,900 11,772 21,128 32,900 7,964 24,936 Non-compete agreements — — — 12,900 11,500 1,400 Operating lease intangibles 7,763 4,721 3,042 8,193 4,020 4,173 Trademarks and tradenames 83,700 42,779 40,921 83,700 34,708 48,992 Total amortizing intangible assets 1,132,557 278,780 853,777 1,144,811 231,024 913,787 Indefinite lived intangible assets: Trademarks and tradenames 55,813 — 55,813 55,813 — 55,813 Intangible assets, net $ 1,188,370 $ 278,780 $ 909,590 $ 1,200,624 $ 231,024 $ 969,600 |
Estimated Future Amortization Expense | The estimated future amortization expense for each of the next five fiscal years and thereafter on definite lived intangible assets existing as of May 1, 2021 is shown below: Fiscal Year: (In thousands) Remaining fiscal 2021 $ 18,192 2022 72,170 2023 71,950 2024 72,399 2025 70,308 2026 and thereafter 548,758 $ 853,777 |
FAIR VALUE MEASUREMENTS OF FI_2
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
May 01, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables provides the fair value hierarchy for financial assets and liabilities measured on a recurring basis: Condensed Consolidated Balance Sheets Location Fair Value at May 1, 2021 (in thousands) Level 1 Level 2 Level 3 Assets: Foreign currency derivatives not designated as hedging instruments Prepaid expenses and other current assets $ — $ 2 $ — Fuel derivatives designated as hedging instruments Prepaid expenses and other current assets $ — $ 1,101 $ — Mutual funds Other long-term assets $ 1,550 $ — $ — Liabilities: Foreign currency derivatives designated as hedging instruments Accrued expenses and other current liabilities $ — $ 1,904 $ — Interest rate swaps designated as hedging instruments Accrued expenses and other current liabilities $ — $ 32,156 $ — Interest rate swaps designated as hedging instruments Other long-term liabilities $ — $ 47,541 $ — Condensed Consolidated Balance Sheets Location Fair Value at August 1, 2020 (in thousands) Level 1 Level 2 Level 3 Assets: Foreign currency derivatives not designated as hedging instruments Prepaid expenses and other current assets $ — $ 26 $ — Fuel derivatives designated as hedging instruments Prepaid expenses and other current assets $ — $ 36 $ — Foreign currency derivatives designated as hedging instruments Prepaid expenses and other current assets $ — $ 94 $ — Fuel derivatives designated as hedging instruments Other long-term assets $ — $ 23 $ — Mutual funds Other long-term assets $ 1,678 $ — $ — Liabilities: Fuel derivatives designated as hedging instruments Accrued expenses and other current liabilities $ — $ 197 $ — Foreign currency derivatives designated as hedging instruments Accrued expenses and other current liabilities $ — $ 357 $ — Interest rate swaps designated as hedging instruments Accrued expenses and other current liabilities $ — $ 46,743 $ — Interest rate swaps designated as hedging instruments Other long-term liabilities $ — $ 91,994 $ — |
Fair Value, By Balance Sheet Grouping | In the table below, the carrying value of the Company’s long-term debt is net of original issue discounts and debt issuance costs. May 1, 2021 August 1, 2020 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Notes receivable, including current portion $ 35,445 $ 33,127 $ 77,598 $ 78,877 Long-term debt, including current portion $ 2,327,397 $ 2,417,797 $ 2,497,626 $ 2,535,851 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
May 01, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | Details of active swap contracts as of May 1, 2021, which are all pay fixed and receive floating, are as follows: Effective Date Swap Maturity Notional Value (in millions) Pay Fixed Rate Receive Floating Rate (2) Floating Rate Reset Terms August 3, 2015 (1) August 15, 2022 $ 34.0 1.7950 % One-Month LIBOR Monthly October 26, 2018 October 31, 2022 100.0 2.8915 % One-Month LIBOR Monthly January 11, 2019 October 31, 2022 50.0 2.4678 % One-Month LIBOR Monthly January 23, 2019 October 31, 2022 50.0 2.5255 % One-Month LIBOR Monthly November 16, 2018 March 31, 2023 150.0 2.8950 % One-Month LIBOR Monthly January 23, 2019 March 31, 2023 50.0 2.5292 % One-Month LIBOR Monthly November 30, 2018 September 30, 2023 50.0 2.8315 % One-Month LIBOR Monthly October 26, 2018 October 31, 2023 100.0 2.9210 % One-Month LIBOR Monthly January 11, 2019 March 28, 2024 100.0 2.4770 % One-Month LIBOR Monthly January 23, 2019 March 28, 2024 100.0 2.5420 % One-Month LIBOR Monthly November 30, 2018 October 31, 2024 100.0 2.8480 % One-Month LIBOR Monthly January 11, 2019 October 31, 2024 100.0 2.5010 % One-Month LIBOR Monthly January 24, 2019 October 31, 2024 50.0 2.5210 % One-Month LIBOR Monthly October 26, 2018 October 22, 2025 50.0 2.9550 % One-Month LIBOR Monthly November 16, 2018 October 22, 2025 50.0 2.9590 % One-Month LIBOR Monthly November 16, 2018 October 22, 2025 50.0 2.9580 % One-Month LIBOR Monthly January 24, 2019 October 22, 2025 50.0 2.5558 % One-Month LIBOR Monthly $ 1,234.0 (1) The swap contract has an amortizing notional principal amount which is reduced by $1.0 million on a quarterly basis. (2) For these swap contracts that are indexed to LIBOR, the Company is monitoring and evaluating risks related to the expected future cessation of LIBOR. |
Schedule of Interest Rate Derivatives | The location and amount of gains or losses recognized in the Condensed Consolidated Statements of Operations for interest rate swap contracts for each of the periods, presented on a pretax basis, are as follows: 13-Week Period Ended 39-Week Period Ended May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 (In thousands) Interest expense, net Interest expense, net Total amounts of expense line items presented in the Condensed Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 43,500 $ 47,269 $ 163,577 $ 145,814 Loss on cash flow hedging relationships: Loss reclassified from comprehensive income into earnings $ (14,623) $ (6,191) $ (35,186) $ (12,812) Gain (loss) on interest rate swap contracts not designated as hedging instruments: Gain (loss) recognized in earnings $ 2,969 $ — $ (2) $ — |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
May 01, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s long-term debt consisted of the following: (in thousands) Average Interest Rate at May 1, 2021 Fiscal Maturity Year May 1, August 1, Term Loan Facility 3.61% 2026 $ 1,002,253 $ 1,773,000 ABL Credit Facility 1.50% 2024 839,290 756,712 Senior Notes 6.75% 2029 500,000 — Other secured loans 5.17% 2024-2025 39,751 49,268 Debt issuance costs, net (36,374) (45,846) Original issue discount on debt (17,523) (35,508) Long-term debt, including current portion 2,327,397 2,497,626 Less: current portion of long-term debt (13,182) (70,632) Long-term debt $ 2,314,215 $ 2,426,994 |
Schedule of Line of Credit Facilities | The assets included in the Condensed Consolidated Balance Sheets securing the outstanding obligations under the ABL Credit Facility on a first-priority basis, and the unused credit and fees under the ABL Credit Facility, were as follows: Assets securing the ABL Credit Facility (in thousands) (1) : May 1, August 1, Certain inventory assets included in Inventories, net and Current assets of discontinued operations $ 2,352,755 $ 2,270,892 Certain receivables included in Accounts receivable, net and Current assets of discontinued operations $ 1,064,392 $ 1,077,682 (1) The ABL Credit Facility is also secured by all of the Company’s pharmacy scripts, which are included in Intangibles, net in the Condensed Consolidated Balance Sheets as of May 1, 2021 and August 1, 2020. Unused credit and fees under the ABL Credit Facility (in thousands, except percentages): May 1, 2021 Outstanding letters of credit $ 117,501 Letter of credit fees 1.375 % Unused credit $ 1,142,800 Unused facility fees 0.25 % |
COMPREHENSIVE (LOSS) INCOME A_2
COMPREHENSIVE (LOSS) INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
May 01, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in Accumulated other comprehensive loss by component, net of tax, for fiscal 2021 year-to-date are as follows: (in thousands) Other Cash Flow Derivatives Benefit Plans Foreign Currency Translation Swap Agreements Total Accumulated other comprehensive loss at August 1, 2020 $ (67) $ (115,296) $ (21,419) $ (101,164) $ (237,946) Other comprehensive (loss) income before reclassifications (13) — 6,164 10,096 16,247 Reclassification of amounts included in net periodic benefit income — (807) — — (807) Reclassification of cash flow hedges (328) — — 25,742 25,414 Net current period Other comprehensive (loss) income (341) (807) 6,164 35,838 40,854 Accumulated other comprehensive loss at May 1, 2021 $ (408) $ (116,103) $ (15,255) $ (65,326) $ (197,092) Changes in Accumulated other comprehensive loss by component, net of tax, for fiscal 2020 year-to-date are as follows: (in thousands) Benefit Plans Foreign Currency Translation Swap Agreements Total Accumulated other comprehensive loss at August 3, 2019 $ (32,458) $ (20,082) $ (56,413) $ (108,953) Other comprehensive income (loss) before reclassifications 1,480 (3,561) (55,874) (57,955) Reclassification of amounts included in net periodic benefit income (1,722) — — (1,722) Reclassification of cash flow hedges — — 9,375 9,375 Pension settlement charge 7,610 — — 7,610 Net current period Other comprehensive income (loss) 7,368 (3,561) (46,499) (42,692) Accumulated other comprehensive loss at May 2, 2020 $ (25,090) $ (23,643) $ (102,912) $ (151,645) |
Reclassification Out of Accumulated Other Comprehensive Income | Items reclassified out of Accumulated other comprehensive loss had the following impact on the Condensed Consolidated Statements of Operations: 13-Week Period Ended 39-Week Period Ended Affected Line Item on the Condensed Consolidated Statements of Operations (in thousands) May 1, May 2, May 1, May 2, Pension and postretirement benefit plan obligations: Reclassification of amounts included in net periodic benefit income (1) $ (404) $ (777) $ (1,117) $ (2,328) Net periodic benefit income, excluding service cost Pension settlement charge — — — 10,303 Net periodic benefit income, excluding service cost Total reclassifications (404) (777) (1,117) 7,975 Income tax expense (benefit) 103 203 310 (2,087) Provision (benefit) for income taxes Total reclassifications, net of tax $ (301) $ (574) $ (807) $ 5,888 Swap agreements: Reclassification of cash flow hedge $ 11,652 $ 6,191 $ 35,186 $ 12,812 Interest expense, net Income tax benefit (3,127) (1,661) (9,444) (3,437) Provision (benefit) for income taxes Total reclassifications, net of tax $ 8,525 $ 4,530 $ 25,742 $ 9,375 Other cash flow hedges: Reclassification of cash flow hedge $ (612) $ — $ (448) $ — Cost of sales Income tax expense 164 — 120 — Provision (benefit) for income taxes Total reclassifications, net of tax $ (448) $ — $ (328) $ — (1) Reclassification of amounts included in net periodic benefit income include reclassification of prior service benefit and reclassification of net actuarial loss as reflected in Note 11—Benefit Plans. |
BENEFIT PLANS (Tables)
BENEFIT PLANS (Tables) | 9 Months Ended |
May 01, 2021 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost (Income) Recognized in Other Comprehensive Income (Loss) | Net periodic benefit income and contributions to defined benefit pension and other post-retirement benefit plans consisted of the following: 13-Week Period Ended Pension Benefits Other Postretirement Benefits (in thousands) May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 Net Periodic Benefit (Income) Cost Service cost $ — $ — $ 12 $ 14 Interest cost 9,164 13,602 103 236 Expected return on plan assets (25,965) (25,765) (26) (54) Amortization of prior service credit — — (350) (350) Amortization of net actuarial loss (gain) 261 3 (315) (430) Net periodic benefit income $ (16,540) $ (12,160) $ (576) $ (584) Contributions to benefit plans $ (375) $ (1,500) $ (950) $ (175) 39-Week Period Ended Pension Benefits Other Postretirement Benefits (in thousands) May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 Net Periodic Benefit (Income) Cost Service cost $ — $ — $ 36 $ 42 Interest cost 27,492 43,894 309 708 Expected return on plan assets (77,894) (79,834) (78) (162) Amortization of prior service credit — — (1,050) (1,050) Amortization of net actuarial loss (gain) 878 9 (945) (1,287) Pension settlement charge — 10,303 — — Net periodic benefit income $ (49,524) $ (25,628) $ (1,728) $ (1,749) Contributions to benefit plans $ (1,125) $ (6,750) $ (2,850) $ (335) |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 9 Months Ended |
May 01, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share | The following is a reconciliation of the basic and diluted number of shares used in computing earnings (loss) per share: 13-Week Period Ended 39-Week Period Ended (in thousands, except per share data) May 1, May 2, May 1, May 2, Basic weighted average shares outstanding 56,458 53,718 56,028 53,485 Net effect of dilutive stock awards based upon the treasury stock method 4,081 1,499 3,648 — Diluted weighted average shares outstanding 60,539 55,217 59,676 53,485 Basic earnings (loss) per share: Continuing operations $ 0.83 $ 1.72 $ 1.78 $ (5.80) Discontinued operations $ 0.03 $ (0.08) $ 0.12 $ (0.30) Basic earnings (loss) per share $ 0.86 $ 1.64 $ 1.90 $ (6.10) Diluted earnings (loss) per share: Continuing operations $ 0.77 $ 1.67 $ 1.67 $ (5.80) Discontinued operations (1) $ 0.03 $ (0.08) $ 0.11 $ (0.30) Diluted earnings (loss) per share $ 0.80 $ 1.60 $ 1.78 $ (6.10) Anti-dilutive stock-based awards excluded from the calculation of diluted earnings per share 790 1,771 1,152 1,868 (1) The computation of diluted earnings per share from discontinued operations excludes the net effect of dilutive stock awards based on the treasury stock method of approximately 1.5 million shares for the third quarter of fiscal 2020. |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 9 Months Ended |
May 01, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Business Segment Information | 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: 13-Week Period Ended 39-Week Period Ended (in thousands) May 1, 2021 May 2, 2020 May 1, 2021 May 2, 2020 Net sales: Wholesale (1) $ 6,359,810 $ 6,749,984 $ 19,399,868 $ 19,024,209 Retail 578,246 636,887 1,794,028 1,690,742 Other 54,808 58,359 165,848 164,511 Eliminations (373,022) (413,512) (1,179,162) (1,119,750) Total Net sales $ 6,619,842 $ 7,031,718 $ 20,180,582 $ 19,759,712 Continuing Operations Adjusted EBITDA: Wholesale $ 161,073 $ 199,884 $ 470,802 $ 408,650 Retail 21,547 36,931 71,159 58,921 Other 85 (17,247) (3,610) (4,419) Eliminations (5,375) 53 (1,429) 547 Adjustments: Net income attributable to noncontrolling interests 1,394 2,238 4,366 3,407 Total other expense, net (25,383) (32,669) (108,828) (114,933) Depreciation and amortization (66,365) (69,642) (210,088) (214,002) Share-based compensation (11,668) (12,992) (38,490) (22,051) Restructuring, acquisition and integration related expenses (9,867) (14,557) (44,078) (65,751) Goodwill and asset impairment charges — — — (425,405) Gain (loss) on sale of assets 25 (351) (144) (785) Notes receivable charges — — — (12,516) Legal reserve charge — — — (1,196) Other retail expense (355) — (3,358) — Income (loss) from continuing operations before income taxes $ 65,111 $ 91,648 $ 136,302 $ (389,533) Depreciation and amortization: Wholesale $ 58,136 $ 66,754 $ 184,723 $ 200,515 Retail 6,776 611 20,928 2,912 Other 1,453 2,277 4,437 10,575 Total depreciation and amortization $ 66,365 $ 69,642 $ 210,088 $ 214,002 Capital expenditures: Wholesale $ 66,282 $ 33,456 $ 150,155 $ 119,085 Retail 7,512 2,131 14,822 7,426 Other 147 88 480 292 Total capital expenditures $ 73,941 $ 35,675 $ 165,457 $ 126,803 (1) As presented in Note 3—Revenue Recognition, for the third quarters of fiscal 2021 and 2020, the Company recorded $323.5 million and $352.8 million, respectively, and $1,026.4 million and $958.6 million in fiscal 2021 and 2020 year-to-date, respectively, within Net sales in its Wholesale reportable segment attributable to Wholesale sales to its Retail segment that have been eliminated upon consolidation. 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 thousands) May 1, August 1, Assets: Wholesale $ 6,580,627 $ 6,588,836 Retail 560,725 542,470 Other 436,251 501,468 Eliminations (63,108) (54,784) Total assets of continuing operations $ 7,514,495 $ 7,577,990 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
May 01, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Operating results of discontinued operations are summarized below: 13-Week Period Ended 39-Week Period Ended (In thousands) May 1, May 2, May 1, May 2, Net sales $ 20,009 $ 30,115 $ 67,798 $ 200,786 Cost of sales 13,172 21,548 45,692 143,187 Gross profit 6,837 8,567 22,106 57,599 Operating expenses 4,658 6,046 14,417 46,350 Restructuring expenses and charges (187) 6,686 596 30,870 Operating income (loss) 2,366 (4,165) 7,093 (19,621) Other income, net — (107) — (171) Income (loss) from discontinued operations before income taxes 2,366 (4,058) 7,093 (19,450) Provision (benefit) for income taxes 713 20 341 (3,322) Income (loss) from discontinued operations, net of tax $ 1,653 $ (4,078) $ 6,752 $ (16,128) The following table summarizes the carrying amounts of major classes of assets and liabilities that were classified as held-for-sale on the Condensed Consolidated Balance Sheets: (In thousands) May 1, 2021 August 1, 2020 Current assets Cash and cash equivalents $ 136 $ 119 Accounts receivable, net 477 350 Inventories, net 3,876 4,233 Other current assets 410 365 Total current assets of discontinued operations 4,899 5,067 Long-term assets Property and equipment 965 3,450 Other long-term assets 465 465 Total long-term assets of discontinued operations 1,430 3,915 Total assets of discontinued operations $ 6,329 $ 8,982 Current liabilities Accounts payable $ 2,757 $ 3,613 Accrued compensation and benefits 2,332 4,501 Other current liabilities 1,907 3,324 Total current liabilities of discontinued operations 6,996 11,438 Long-term liabilities Other long-term liabilities 15 1,738 Total liabilities of discontinued operations 7,011 13,176 Net liabilities of discontinued operations $ (682) $ (4,194) |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions | May 01, 2021 | Aug. 01, 2020 |
Accounting Policies [Abstract] | ||
Net book overdrafts | $ 243.4 | $ 267.8 |
FIFO inventory amount | $ 62 | $ 43.3 |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
May 01, 2021USD ($)channelstore | May 02, 2020USD ($) | May 01, 2021USD ($)channelstore | May 02, 2020USD ($) | |
Disaggregation of Revenue [Line Items] | ||||
Number of customer channels | channel | 5 | 5 | ||
Wholesale | Discontinued operations | Operating segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ | $ 12.4 | $ 16.8 | $ 40.2 | $ 108.9 |
Chains | ||||
Disaggregation of Revenue [Line Items] | ||||
Number of stores | store | 10 | 10 |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 01, 2021 | May 02, 2020 | May 01, 2021 | May 02, 2020 | |
Revenue from External Customer [Line Items] | ||||
Net sales | $ 6,619,842 | $ 7,031,718 | $ 20,180,582 | $ 19,759,712 |
Chains | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 2,949,000 | 3,125,000 | 9,066,000 | 8,909,000 |
Independent retailers | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 1,599,000 | 1,805,000 | 4,972,000 | 4,923,000 |
Supernatural | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 1,287,000 | 1,279,000 | 3,799,000 | 3,601,000 |
Retail | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 578,000 | 637,000 | 1,794,000 | 1,691,000 |
Other | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 580,000 | 599,000 | 1,729,000 | 1,755,000 |
Operating segments | Wholesale | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 6,360,000 | 6,750,000 | 19,400,000 | 19,024,000 |
Operating segments | Wholesale | Chains | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 2,949,000 | 3,125,000 | 9,066,000 | 8,909,000 |
Operating segments | Wholesale | Independent retailers | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 1,599,000 | 1,805,000 | 4,972,000 | 4,923,000 |
Operating segments | Wholesale | Supernatural | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 1,287,000 | 1,279,000 | 3,799,000 | 3,601,000 |
Operating segments | Wholesale | Retail | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating segments | Wholesale | Other | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 525,000 | 541,000 | 1,563,000 | 1,591,000 |
Operating segments | Retail | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 578,246 | 636,887 | 1,794,028 | 1,690,742 |
Operating segments | Retail | Chains | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating segments | Retail | Independent retailers | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating segments | Retail | Supernatural | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating segments | Retail | Retail | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 578,000 | 637,000 | 1,794,000 | 1,691,000 |
Operating segments | Retail | Other | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating segments | Other | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 54,808 | 58,359 | 165,848 | 164,511 |
Operating segments | Other | Chains | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating segments | Other | Independent retailers | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating segments | Other | Supernatural | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating segments | Other | Retail | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating segments | Other | Other | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 55,000 | 58,000 | 166,000 | 164,000 |
Operating segments | Other | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 164,000 | |||
Eliminations | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | $ (373,000) | $ (414,000) | $ (1,179,000) | $ (1,120,000) |
REVENUE RECOGNITION - Accounts
REVENUE RECOGNITION - Accounts Receivable (Details) - USD ($) $ in Thousands | May 01, 2021 | Aug. 01, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Customer accounts receivable | $ 1,143,399 | $ 1,156,694 |
Allowance for uncollectible receivables | (51,502) | (55,928) |
Other receivables, net | 14,681 | 19,433 |
Accounts receivable, net | 1,106,578 | 1,120,199 |
Notes receivable, net, included within Prepaid expenses and other current assets | 10,317 | 49,268 |
Long-term notes receivable, net, included within Other assets | $ 17,219 | $ 25,800 |
RESTRUCTURING, ACQUISITION, A_3
RESTRUCTURING, ACQUISITION, AND INTEGRATION RELATED EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 01, 2021 | May 02, 2020 | May 01, 2021 | May 02, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, acquisition and integration related expenses | $ 9,867 | $ 14,557 | $ 44,078 | $ 65,751 |
Restructuring and integration costs | 12,047 | 552 | 41,489 | 25,257 |
Closed property (recoveries) charges and costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, acquisition and integration related expenses | (2,180) | 12,513 | 2,589 | 36,501 |
Supervalu | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, acquisition and integration related expenses | $ 0 | $ 1,492 | $ 0 | $ 3,993 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, NET - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
May 01, 2021USD ($) | May 02, 2020USD ($) | Nov. 02, 2019USD ($) | May 01, 2021reportingUnit | May 01, 2021reportableSegment | May 01, 2021USD ($) | May 01, 2021segment | May 02, 2020USD ($) | |
Goodwill [Line Items] | ||||||||
Number of reporting units | reportingUnit | 5 | |||||||
Projected future cash flows weighted average cost of capital | 8.50% | |||||||
Amortization expense | $ | $ 18.4 | $ 21.9 | $ 60 | $ 65.5 | ||||
Wholesale | ||||||||
Goodwill [Line Items] | ||||||||
Number of operating segments | 2 | 2 | ||||||
Goodwill and asset impairment charges | $ | $ 421.5 | |||||||
Retail | ||||||||
Goodwill [Line Items] | ||||||||
Number of operating segments | reportableSegment | 1 | |||||||
Woodstock Farms and Blue Marble Brands | ||||||||
Goodwill [Line Items] | ||||||||
Number of operating segments | reportableSegment | 2 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS, NET - Carrying Value of Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | |
May 01, 2021 | Aug. 01, 2020 | |
Goodwill [Roll Forward] | ||
Goodwill as of August 1, 2020 | $ 19,607 | |
Change in foreign exchange rates | 888 | |
Goodwill as of May 1, 2021 | 20,495 | |
Operating segments | Wholesale | ||
Goodwill [Roll Forward] | ||
Goodwill as of August 1, 2020 | 9,747 | |
Change in foreign exchange rates | 888 | |
Goodwill as of May 1, 2021 | 10,635 | |
Accumulated goodwill impairment charges | 716,500 | $ 716,500 |
Operating segments | Other | ||
Goodwill [Roll Forward] | ||
Goodwill as of August 1, 2020 | 9,860 | |
Change in foreign exchange rates | 0 | |
Goodwill as of May 1, 2021 | 9,860 | |
Accumulated goodwill impairment charges | $ 9,600 | $ 9,600 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS, NET - Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | May 01, 2021 | Aug. 01, 2020 |
Schedule of Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 1,132,557 | $ 1,144,811 |
Intangible assets, accumulated amortization | 278,780 | 231,024 |
Finite-lived intangible assets, net | 853,777 | 913,787 |
Indefinite-lived intangible assets, gross carrying amount | 1,188,370 | 1,200,624 |
Indefinite-lived intangible assets, accumulated amortization | 278,780 | 231,024 |
Indefinite-lived intangible assets, net carrying value | 909,590 | 969,600 |
Trademarks and tradenames | ||
Schedule of Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets, gross | 55,813 | 55,813 |
Indefinite-lived intangible assets, accumulated amortization | 0 | 0 |
Indefinite-lived intangible assets, net | 55,813 | 55,813 |
Customer relationships | ||
Schedule of Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 1,008,194 | 1,007,118 |
Intangible assets, accumulated amortization | 219,508 | 172,832 |
Finite-lived intangible assets, net | 788,686 | 834,286 |
Pharmacy prescription files | ||
Schedule of Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 32,900 | 32,900 |
Intangible assets, accumulated amortization | 11,772 | 7,964 |
Finite-lived intangible assets, net | 21,128 | 24,936 |
Non-compete agreements | ||
Schedule of Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 0 | 12,900 |
Intangible assets, accumulated amortization | 0 | 11,500 |
Finite-lived intangible assets, net | 0 | 1,400 |
Operating lease intangibles | ||
Schedule of Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 7,763 | 8,193 |
Intangible assets, accumulated amortization | 4,721 | 4,020 |
Finite-lived intangible assets, net | 3,042 | 4,173 |
Trademarks and tradenames | ||
Schedule of Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 83,700 | 83,700 |
Intangible assets, accumulated amortization | 42,779 | 34,708 |
Finite-lived intangible assets, net | $ 40,921 | $ 48,992 |
GOODWILL AND INTANGIBLE ASSET_6
GOODWILL AND INTANGIBLE ASSETS, NET - Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | May 01, 2021 | Aug. 01, 2020 |
Goodwill and Intangible Assets [Abstract] | ||
Remaining fiscal 2021 | $ 18,192 | |
2022 | 72,170 | |
2023 | 71,950 | |
2024 | 72,399 | |
2025 | 70,308 | |
2026 and thereafter | 548,758 | |
Finite-lived intangible assets, net | $ 853,777 | $ 913,787 |
FAIR VALUE MEASUREMENTS OF FI_3
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS - Recurring Fair Value Measurements (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands | May 01, 2021 | Aug. 01, 2020 |
Level 1 | Other long-term assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Mutual funds | $ 1,550 | $ 1,678 |
Level 1 | Foreign currency derivatives | Prepaid expenses and other current assets | Not designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap assets | 0 | 0 |
Level 1 | Foreign currency derivatives | Prepaid expenses and other current assets | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap assets | 0 | |
Level 1 | Foreign currency derivatives | Accrued expenses and other current liabilities | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap liabilities | 0 | 0 |
Level 1 | Fuel derivatives | Prepaid expenses and other current assets | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap assets | 0 | 0 |
Level 1 | Fuel derivatives | Other long-term assets | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap assets | 0 | |
Level 1 | Fuel derivatives | Accrued expenses and other current liabilities | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap liabilities | 0 | |
Level 1 | Interest rate swaps | Accrued expenses and other current liabilities | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap liabilities | 0 | 0 |
Level 1 | Interest rate swaps | Other long-term liabilities | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap liabilities | 0 | 0 |
Level 2 | Other long-term assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Mutual funds | 0 | 0 |
Level 2 | Foreign currency derivatives | Prepaid expenses and other current assets | Not designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap assets | 2 | 26 |
Level 2 | Foreign currency derivatives | Prepaid expenses and other current assets | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap assets | 94 | |
Level 2 | Foreign currency derivatives | Accrued expenses and other current liabilities | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap liabilities | 1,904 | 357 |
Level 2 | Fuel derivatives | Prepaid expenses and other current assets | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap assets | 1,101 | 36 |
Level 2 | Fuel derivatives | Other long-term assets | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap assets | 23 | |
Level 2 | Fuel derivatives | Accrued expenses and other current liabilities | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap liabilities | 197 | |
Level 2 | Interest rate swaps | Accrued expenses and other current liabilities | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap liabilities | 32,156 | 46,743 |
Level 2 | Interest rate swaps | Other long-term liabilities | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap liabilities | 47,541 | 91,994 |
Level 3 | Other long-term assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Mutual funds | 0 | 0 |
Level 3 | Foreign currency derivatives | Prepaid expenses and other current assets | Not designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap assets | 0 | 0 |
Level 3 | Foreign currency derivatives | Prepaid expenses and other current assets | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap assets | 0 | |
Level 3 | Foreign currency derivatives | Accrued expenses and other current liabilities | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap liabilities | 0 | 0 |
Level 3 | Fuel derivatives | Prepaid expenses and other current assets | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap assets | 0 | 0 |
Level 3 | Fuel derivatives | Other long-term assets | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap assets | 0 | |
Level 3 | Fuel derivatives | Accrued expenses and other current liabilities | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap liabilities | 0 | |
Level 3 | Interest rate swaps | Accrued expenses and other current liabilities | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap liabilities | 0 | 0 |
Level 3 | Interest rate swaps | Other long-term liabilities | Designated as hedging instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Swap liabilities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS OF FI_4
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS - Narrative (Details) $ in Millions | May 01, 2021USD ($) |
Fair Value Disclosures [Abstract] | |
Effect of one percent increase on fair value of interest rate fair value hedging instruments | $ 34 |
Effect of one percent decrease on fair value of interest rate fair value hedging instruments | $ 35.3 |
FAIR VALUE MEASUREMENTS OF FI_5
FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS - Fair Value Estimates (Details) - USD ($) $ in Thousands | May 01, 2021 | Aug. 01, 2020 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | $ 2,327,397 | $ 2,497,626 |
Notes receivable, including current portion | 35,445 | 77,598 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long-term debt, including current portion | 2,417,797 | 2,535,851 |
Notes receivable, including current portion | $ 33,127 | $ 78,877 |
DERIVATIVES - Outstanding Swap
DERIVATIVES - Outstanding Swap Contracts (Details) - USD ($) | May 01, 2021 | Oct. 31, 2020 | Aug. 03, 2015 |
Derivative [Line Items] | |||
Derivative, notional value | $ 1,234,000,000 | ||
Interest rate swap due August 15, 2022 | |||
Derivative [Line Items] | |||
Derivative, notional value | $ 34,000,000 | ||
Derivative, forward interest rate | 1.795% | ||
Interest rate swap due October 31, 2022 | |||
Derivative [Line Items] | |||
Derivative, notional value | $ 100,000,000 | ||
Derivative, forward interest rate | 2.8915% | ||
Interest rate swap due October 31, 2022 | |||
Derivative [Line Items] | |||
Derivative, notional value | $ 50,000,000 | ||
Derivative, forward interest rate | 2.4678% | ||
Interest rate swap due October 31, 2022 | |||
Derivative [Line Items] | |||
Derivative, notional value | $ 50,000,000 | ||
Derivative, forward interest rate | 2.5255% | ||
Interest rate swap due March 31, 2023 | |||
Derivative [Line Items] | |||
Derivative, notional value | $ 150,000,000 | ||
Derivative, forward interest rate | 2.895% | ||
Interest rate swap due March 31, 2023 | |||
Derivative [Line Items] | |||
Derivative, notional value | $ 50,000,000 | ||
Derivative, forward interest rate | 2.5292% | ||
Interest rate swap due September 30, 2023 | |||
Derivative [Line Items] | |||
Derivative, notional value | $ 50,000,000 | ||
Derivative, forward interest rate | 2.8315% | ||
Interest rate swap due October 31, 2023 | |||
Derivative [Line Items] | |||
Derivative, notional value | $ 100,000,000 | ||
Derivative, forward interest rate | 2.921% | ||
Interest rate swap due March 28, 2024 | |||
Derivative [Line Items] | |||
Derivative, notional value | $ 100,000,000 | ||
Derivative, forward interest rate | 2.477% | ||
Interest rate swap due March 28, 2024 | |||
Derivative [Line Items] | |||
Derivative, notional value | $ 100,000,000 | ||
Derivative, forward interest rate | 2.542% | ||
Interest rate swap due October 31, 2024 | |||
Derivative [Line Items] | |||
Derivative, notional value | $ 100,000,000 | ||
Derivative, forward interest rate | 2.848% | ||
Interest rate swap due October 31, 2024 | |||
Derivative [Line Items] | |||
Derivative, notional value | $ 100,000,000 | ||
Derivative, forward interest rate | 2.501% | ||
Interest rate swap due October 31, 2024 | |||
Derivative [Line Items] | |||
Derivative, notional value | $ 50,000,000 | ||
Derivative, forward interest rate | 2.521% | ||
Interest rate swap due October 22, 2025 | |||
Derivative [Line Items] | |||
Derivative, notional value | $ 50,000,000 | ||
Derivative, forward interest rate | 2.955% | ||
Interest rate swap due October 22, 2025 | |||
Derivative [Line Items] | |||
Derivative, notional value | $ 50,000,000 | ||
Derivative, forward interest rate | 2.959% | ||
Interest rate swap due October 22, 2025 | |||
Derivative [Line Items] | |||
Derivative, notional value | $ 50,000,000 | ||
Derivative, forward interest rate | 2.958% | ||
Interest rate swap due October 22, 2025 | |||
Derivative [Line Items] | |||
Derivative, notional value | $ 50,000,000 | ||
Derivative, forward interest rate | 2.5558% | ||
Interest rate swaps | |||
Derivative [Line Items] | |||
Derivative, notional value | $ 250,000,000 | $ 504,000,000 | |
Quarterly notional principal reduction | $ 1,000,000 |
DERIVATIVES - Narrative (Detail
DERIVATIVES - Narrative (Details) - USD ($) | 3 Months Ended | |
May 01, 2021 | Oct. 31, 2020 | |
Derivative [Line Items] | ||
Payment to terminate interest rate swaps | $ 11,300,000 | |
Derivative, notional value | $ 1,234,000,000 | |
Gain (loss) resulting from termination of interest rate swaps | 0 | |
Senior Notes due 2028, 6.750% | ||
Derivative [Line Items] | ||
Debt instrument, face amount | 500,000,000 | |
Interest rate swaps | ||
Derivative [Line Items] | ||
Payment to terminate interest rate swaps | 6,300,000 | |
Derivative, notional value | $ 250,000,000 | 504,000,000 |
Forward starting interest rate swaps | ||
Derivative [Line Items] | ||
Derivative, notional value | $ 450,000,000 |
DERIVATIVES - Interest Rate Swa
DERIVATIVES - Interest Rate Swap Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 01, 2021 | May 02, 2020 | May 01, 2021 | May 02, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Total amounts of expense line items presented in the Condensed Consolidated Statements of Operations in which the effects of cash flow hedges are recorded | $ 43,500 | $ 47,269 | $ 163,577 | $ 145,814 |
Loss reclassified from comprehensive income into earnings | (14,623) | (6,191) | (35,186) | (12,812) |
Gain (loss) recognized in earnings | $ 2,969 | $ 0 | $ (2) | $ 0 |
LONG-TERM DEBT - Schedule of De
LONG-TERM DEBT - Schedule of Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | |
May 01, 2021 | Aug. 01, 2020 | |
Debt Instrument [Line Items] | ||
Debt issuance costs, net | $ (36,374) | $ (45,846) |
Original issue discount on debt | (17,523) | (35,508) |
Long-term debt, including current portion | 2,327,397 | 2,497,626 |
Less: current portion of long-term debt | (13,182) | (70,632) |
Long-term debt | $ 2,314,215 | 2,426,994 |
ABL Credit Facility | ||
Debt Instrument [Line Items] | ||
Average Interest Rate | 1.50% | |
Long-term debt, gross | $ 839,290 | 756,712 |
Other secured loans | ||
Debt Instrument [Line Items] | ||
Average Interest Rate | 5.17% | |
Long-term debt, gross | $ 39,751 | 49,268 |
Secured Debt | Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Average Interest Rate | 3.61% | |
Long-term debt, gross | $ 1,002,253 | 1,773,000 |
Debt issuance costs, net | (19,200) | |
Original issue discount on debt | $ (17,300) | |
Senior Notes | Senior Notes due 2028, 6.750% | ||
Debt Instrument [Line Items] | ||
Average Interest Rate | 6.75% | |
Long-term debt, gross | $ 500,000 | $ 0 |
LONG-TERM DEBT - Refinancing Ac
LONG-TERM DEBT - Refinancing Activities, Narrative (Details) - USD ($) $ in Millions | Oct. 22, 2020 | Oct. 22, 2018 | May 01, 2021 | Jan. 30, 2021 | Oct. 31, 2020 | May 01, 2021 |
Debt Instrument [Line Items] | ||||||
Debt maturity, extension period | 3 years | |||||
First Term Loan Amendment | LIBOR | Secured debt | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 3.50% | 4.25% | ||||
First Term Loan Amendment | Base rate | Secured debt | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 2.50% | 3.25% | ||||
Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Voluntary repayments of debt | $ 150 | |||||
Term Loan Facility, Term B Tranche | Secured debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, term | 7 years | |||||
Term Loan Facility, Term B Tranche | LIBOR | Secured debt | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 3.50% | |||||
Term Loan Facility, Term B Tranche | Base rate | Secured debt | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate (as a percent) | 2.50% | |||||
Senior Notes due 2028, 6.750% | Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, term | 8 years | |||||
ABL Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Voluntary repayments of debt | $ 36 | |||||
Secured debt | Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Voluntary repayments of debt | $ 9.9 | |||||
Required prepayments of debt | $ 2.8 | 72 | ||||
Write off of unamortized debt issuance costs | $ 5.7 | |||||
Repayments of debt | 108 | |||||
Secured debt | Term Loan Facility, Term B Tranche | ||||||
Debt Instrument [Line Items] | ||||||
Required prepayments of debt | 72 | |||||
Write off of unamortized debt issuance costs | 12 | |||||
Repayments of debt | $ 500 | 500 | $ 770.7 | |||
Write off of unamortized debt issue discount | $ 11.8 |
LONG-TERM DEBT - Senior Notes,
LONG-TERM DEBT - Senior Notes, Narrative (Details) - USD ($) | Oct. 22, 2020 | Oct. 31, 2020 | May 01, 2021 |
Senior Notes due 2028, 6.750% | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 500,000,000 | ||
Term Loan Facility, Term B Tranche | Secured debt | |||
Debt Instrument [Line Items] | |||
Repayments of debt | $ 500,000,000 | $ 500,000,000 | $ 770,700,000 |
Senior Notes | Senior Notes due 2028, 6.750% | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 500,000,000 | ||
Stated interest rate | 6.75% | ||
Capitalized financing costs | $ 8,900,000 |
LONG-TERM DEBT - ABL Credit Fac
LONG-TERM DEBT - ABL Credit Facility, Narrative (Details) - USD ($) | 9 Months Ended | ||||
May 01, 2021 | Aug. 14, 2020 | Aug. 01, 2020 | Oct. 19, 2018 | Aug. 30, 2018 | |
Debt Instrument [Line Items] | |||||
Notes payable | $ 2,314,215,000 | $ 2,426,994,000 | |||
Debt issuance costs, net | $ 36,374,000 | $ 45,846,000 | |||
Line of credit | Letter of credit | ABL Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, fronting fee percentage | 0.125% | ||||
Debt instrument, covenant, fixed charge coverage ratio, minimum | 1 | ||||
Line of credit facility, maximum aggregate availability of the aggregate borrowing base | $ 235,000,000 | ||||
Line of credit facility, maximum percentage of aggregate availability of the aggregate borrowing base | 10.00% | ||||
Line of credit | Letter of credit | ABL Credit Facility | United States | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 300,000,000 | $ 300,000,000 | |||
Line of credit | Letter of credit | ABL Credit Facility | Canada | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 25,000,000 | 25,000,000 | |||
Line of credit | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Remaining availability under ABL credit facility | $ 1,142,800,000 | ||||
Unused facility fees (as a percent) | 0.25% | ||||
Line of credit | Revolving credit facility | ABL Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 2,100,000,000 | ||||
Line of credit facility, maximum borrowing capacity, optional increase | 600,000,000 | ||||
Line of credit facility, maximum borrowing capacity, including optional increase | $ 2,700,000,000 | ||||
Remaining availability under ABL credit facility | $ 1,142,800,000 | ||||
Unused facility fees (as a percent) | 0.25% | ||||
Line of credit | Revolving credit facility | ABL Credit Facility | Outstanding borrowings less than 25 percent of aggregate commitments | |||||
Debt Instrument [Line Items] | |||||
Unused facility fees (as a percent) | 0.375% | ||||
Percentage of average daily total outstanding to aggregate commitments | 25.00% | ||||
Line of credit | Revolving credit facility | ABL Credit Facility | Outstanding borrowings equal or greater than 25 percent of aggregate commitments | |||||
Debt Instrument [Line Items] | |||||
Unused facility fees (as a percent) | 0.25% | ||||
Percentage of average daily total outstanding to aggregate commitments | 25.00% | ||||
Line of credit | Revolving credit facility | ABL Credit Facility | Accounts receivable | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, borrowing base, eligibility percent | 90.00% | ||||
Line of credit | Revolving credit facility | ABL Credit Facility | Credit card receivable | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, borrowing base, eligibility percent | 90.00% | ||||
Line of credit | Revolving credit facility | ABL Credit Facility | Inventories | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, borrowing base, eligibility percent | 90.00% | ||||
Line of credit | Revolving credit facility | ABL Credit Facility | Pharmacy receivable | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, borrowing base, eligibility percent | 90.00% | ||||
Line of credit | Revolving credit facility | ABL Credit Facility | United States | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 2,050,000,000 | $ 2,050,000,000 | |||
Line of credit facility, borrowing capacity, reserves | 173,000,000 | ||||
Line of credit facility, current borrowing capacity | 2,252,500,000 | ||||
Notes payable | 839,300,000 | ||||
Debt issuance costs, net | 8,800,000 | ||||
Letters of credit outstanding, amount | $ 117,500,000 | ||||
Line of credit | Revolving credit facility | ABL Credit Facility | United States | Base rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.25% | ||||
Line of credit | Revolving credit facility | ABL Credit Facility | United States | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 1.25% | ||||
Line of credit | Revolving credit facility | ABL Credit Facility | Canada | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 50,000,000 | 50,000,000 | |||
Line of credit facility, borrowing capacity, reserves | 4,600,000 | ||||
Line of credit facility, current borrowing capacity | 49,600,000 | ||||
Remaining availability under ABL credit facility | 2,099,600,000 | ||||
Letters of credit outstanding, amount | $ 0 | ||||
Line of credit | Revolving credit facility | ABL Credit Facility | Canada | Prime rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 0.25% | ||||
Line of credit | Revolving credit facility | ABL Credit Facility | Canada | Bankers acceptance equivalent rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 1.25% | ||||
Line of credit | Revolving credit facility | Former ABL credit facility | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 900,000,000 | ||||
Line of credit | Bridge loan | ABL Credit Facility | United States | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | 100,000,000 | ||||
Line of credit | Bridge loan | ABL Credit Facility | Canada | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 3,500,000 |
LONG-TERM DEBT - Schedule of Li
LONG-TERM DEBT - Schedule of Line of Credit Facilities (Details) - Line of credit - USD ($) $ in Thousands | 9 Months Ended | |
May 01, 2021 | Aug. 01, 2020 | |
Revolving credit facility | ||
Line of Credit Facility [Line Items] | ||
Unused credit | $ 1,142,800 | |
Unused facility fees (as a percent) | 0.25% | |
Revolving credit facility | Certain inventory assets included in Inventories, net and Current assets of discontinued operations | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, collateral amount | $ 2,352,755 | $ 2,270,892 |
Revolving credit facility | Certain receivables included in Accounts receivable, net and Current assets of discontinued operations | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, collateral amount | 1,064,392 | $ 1,077,682 |
Letter of credit | ||
Line of Credit Facility [Line Items] | ||
Outstanding letters of credit | $ 117,501 | |
Letter of credit fees (as a percent) | 1.375% |
LONG-TERM DEBT - Term Loan Faci
LONG-TERM DEBT - Term Loan Facility, Narrative (Details) | Oct. 22, 2020USD ($) | Oct. 21, 2019USD ($) | Oct. 22, 2018USD ($) | May 01, 2021USD ($) | Oct. 31, 2020USD ($) | May 01, 2021USD ($) | Jun. 09, 2021USD ($)property | Aug. 01, 2020USD ($) |
Debt Instrument [Line Items] | ||||||||
Pledged assets separately reported, real estate pledged as collateral, at fair value | $ 570,500,000 | $ 570,500,000 | ||||||
Debt issuance costs, net | 36,374,000 | 36,374,000 | $ 45,846,000 | |||||
Original issue discount on debt | 17,523,000 | 17,523,000 | 35,508,000 | |||||
Current portion of long-term debt | $ 13,182,000 | 13,182,000 | $ 70,632,000 | |||||
LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, minimum variable rate (as a percent) | 0.00% | |||||||
Subsequent event | ||||||||
Debt Instrument [Line Items] | ||||||||
Pledged assets separately reported, real estate pledged as collateral, at fair value | $ 123,700,000 | |||||||
Subsequent event | Asset Pledged as Collateral | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of real estate properties | property | 8 | |||||||
Term Loan Facility | Secured debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of debt | $ 108,000,000 | |||||||
Required prepayments of debt | $ 2,800,000 | 72,000,000 | ||||||
Term Loan Facility, Term B Tranche | Secured debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of debt | $ 500,000,000 | 500,000,000 | $ 770,700,000 | |||||
Required prepayments of debt | 72,000,000 | |||||||
Senior Notes due 2028, 6.750% | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 500,000,000 | |||||||
Secured debt | Term Loan Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 1,950,000,000 | |||||||
Line of credit, additional borrowing capacity | 656,300,000 | |||||||
Debt instrument, guarantees exception, carrying value of owned real property | 10,000,000 | |||||||
Debt instrument, covenant compliance, percentage of proceeds from certain types of asset sales to be used to prepay loans outstanding (as a percent) | 100.00% | |||||||
Debt instrument, covenant compliance, threshold, loans outstanding required to be paid following specified term following fiscal year end | 10,000,000 | $ 10,000,000 | ||||||
Debt issuance costs, net | 19,200,000 | 19,200,000 | ||||||
Original issue discount on debt | 17,300,000 | $ 17,300,000 | ||||||
Secured debt | Term Loan Facility | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Period to prepay loans outstanding | 130 days | |||||||
Debt instrument, covenant compliance, percentage of loans outstanding required to be paid following specified term following fiscal year end (as a percent) | 75.00% | |||||||
Secured debt | Term Loan Facility | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, covenant compliance, percentage of loans outstanding required to be paid following specified term following fiscal year end (as a percent) | 0.00% | |||||||
Secured debt | Term Loan Facility, Term B Tranche | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 1,800,000,000 | 1,002,300,000 | $ 1,002,300,000 | |||||
Debt instrument, term | 7 years | |||||||
Current portion of long-term debt | $ 0 | $ 0 | ||||||
Secured debt | Term Loan Facility, Term B Tranche | Base rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (as a percent) | 2.50% | |||||||
Secured debt | Term Loan Facility, Term B Tranche | LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate (as a percent) | 3.50% | |||||||
Secured debt | Term Loan Facility, 364-day Tranche | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 150,000,000 | |||||||
Debt instrument, term | 364 days | |||||||
Outstanding borrowings | $ 52,800,000 |
COMPREHENSIVE (LOSS) INCOME A_3
COMPREHENSIVE (LOSS) INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS - Changes by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 01, 2021 | May 02, 2020 | May 01, 2021 | May 02, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 1,229,066 | $ 1,092,465 | $ 1,142,258 | $ 1,504,305 |
Other comprehensive income (loss) before reclassifications | 16,247 | (57,955) | ||
Pension settlement charge | 7,610 | |||
Net current period Other comprehensive (loss) income | 16,437 | (43,225) | 40,854 | (42,692) |
Ending balance | 1,301,062 | 1,161,331 | 1,301,062 | 1,161,331 |
AOCI Attributable to Parent | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (237,946) | (108,953) | ||
Ending balance | (197,092) | (151,645) | (197,092) | (151,645) |
Cash Flow Derivatives | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Reclassification | 25,414 | 9,375 | ||
Cash Flow Derivatives | Other Cash Flow Derivatives | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (67) | |||
Other comprehensive income (loss) before reclassifications | (13) | |||
Reclassification | (328) | |||
Net current period Other comprehensive (loss) income | (341) | |||
Ending balance | (408) | (408) | ||
Cash Flow Derivatives | Swap Agreements | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (101,164) | (56,413) | ||
Other comprehensive income (loss) before reclassifications | 10,096 | (55,874) | ||
Reclassification | 25,742 | 9,375 | ||
Net current period Other comprehensive (loss) income | 35,838 | (46,499) | ||
Ending balance | (65,326) | (102,912) | (65,326) | (102,912) |
Benefit Plans | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (115,296) | (32,458) | ||
Other comprehensive income (loss) before reclassifications | 0 | 1,480 | ||
Reclassification | (807) | (1,722) | ||
Pension settlement charge | 7,610 | |||
Net current period Other comprehensive (loss) income | (807) | 7,368 | ||
Ending balance | (116,103) | (25,090) | (116,103) | (25,090) |
Foreign Currency Translation | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Beginning balance | (21,419) | (20,082) | ||
Other comprehensive income (loss) before reclassifications | 6,164 | (3,561) | ||
Net current period Other comprehensive (loss) income | 6,164 | (3,561) | ||
Ending balance | $ (15,255) | $ (23,643) | $ (15,255) | $ (23,643) |
COMPREHENSIVE (LOSS) INCOME A_4
COMPREHENSIVE (LOSS) INCOME AND ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassification out of Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 01, 2021 | May 02, 2020 | May 01, 2021 | May 02, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense, net | $ (14,623) | $ (6,191) | $ (35,186) | $ (12,812) |
Cost of sales | 5,653,043 | 5,981,486 | 17,256,925 | 16,884,944 |
Total reclassifications | 43,100 | |||
Provision (benefit) for income taxes | 16,812 | (2,799) | 32,213 | (82,562) |
Net income (loss) | 49,952 | 90,369 | 110,841 | (323,099) |
Reclassification out of accumulated other comprehensive income | Benefit plans | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net periodic benefit income, excluding service cost | (404) | (777) | (1,117) | (2,328) |
Pension settlement charge | 0 | 0 | 0 | 10,303 |
Total reclassifications | (404) | (777) | (1,117) | 7,975 |
Provision (benefit) for income taxes | 103 | 203 | 310 | (2,087) |
Net income (loss) | (301) | (574) | (807) | 5,888 |
Reclassification out of accumulated other comprehensive income | Cash flow derivatives | Swap Agreements | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense, net | 11,652 | 6,191 | 35,186 | 12,812 |
Provision (benefit) for income taxes | (3,127) | (1,661) | (9,444) | (3,437) |
Net income (loss) | 8,525 | 4,530 | 25,742 | 9,375 |
Reclassification out of accumulated other comprehensive income | Cash flow derivatives | Other Cash Flow Derivatives | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | (612) | 0 | (448) | 0 |
Provision (benefit) for income taxes | 164 | 0 | 120 | 0 |
Net income (loss) | $ (448) | $ 0 | $ (328) | $ 0 |
SHARE-BASED AWARDS (Details)
SHARE-BASED AWARDS (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended |
Jan. 30, 2021 | May 01, 2021 | |
Amended and Restated 2020 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, additional shares authorized (in shares) | 3.6 | |
2020 Equity incentive plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, number of shares available for grant (in shares) | 3.9 | |
Restricted stock units (RSUs) and performance share units (PSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period (in shares) | 2.7 |
BENEFIT PLANS - Net Periodic Be
BENEFIT PLANS - Net Periodic Benefit Cost (Income) Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 01, 2021 | May 02, 2020 | May 01, 2021 | May 02, 2020 | |
Pension Benefits | ||||
Net Periodic Benefit (Income) Cost | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 9,164 | 13,602 | 27,492 | 43,894 |
Expected return on plan assets | (25,965) | (25,765) | (77,894) | (79,834) |
Amortization of prior service credit | 0 | 0 | 0 | 0 |
Amortization of net actuarial loss (gain) | 261 | 3 | 878 | 9 |
Pension settlement charge | 0 | 10,303 | ||
Net periodic benefit income | (16,540) | (12,160) | (49,524) | (25,628) |
Contributions to benefit plans | (375) | (1,500) | (1,125) | (6,750) |
Other Postretirement Benefits | ||||
Net Periodic Benefit (Income) Cost | ||||
Service cost | 12 | 14 | 36 | 42 |
Interest cost | 103 | 236 | 309 | 708 |
Expected return on plan assets | (26) | (54) | (78) | (162) |
Amortization of prior service credit | (350) | (350) | (1,050) | (1,050) |
Amortization of net actuarial loss (gain) | (315) | (430) | (945) | (1,287) |
Pension settlement charge | 0 | 0 | ||
Net periodic benefit income | (576) | (584) | (1,728) | (1,749) |
Contributions to benefit plans | $ (950) | $ (175) | $ (2,850) | $ (335) |
BENEFIT PLANS - Narrative (Deta
BENEFIT PLANS - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 01, 2021USD ($) | May 02, 2020USD ($) | Feb. 01, 2020USD ($) | May 01, 2021USD ($) | May 02, 2020USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, expected future employer contributions, current fiscal year | $ 5,300 | $ 5,300 | |||
Multiemployer pension plan, withdrawal liability | $ 10,600 | ||||
Multiemployer pension plan, payment period | 1 year | ||||
Remeasurement, effect on AOCI | $ (7,610) | ||||
SUPERVALU Retirement Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Lump sum settlement payments | $ 664,000 | ||||
Non-cash pension settlement charge | 10,300 | ||||
Remeasurement, effect on AOCI | $ 1,500 | ||||
SUPERVALU Retirement Plan | Measurement Input, Discount Rate | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Measurement input | 0.031 | ||||
Other Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Multiemployer plan, contributions by employer | $ 12,200 | $ 12,300 | $ 35,900 | $ 38,400 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 9 Months Ended | ||
May 01, 2021 | May 02, 2020 | May 01, 2021 | May 02, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate, continuing operations, percent | 25.80% | (3.10%) | 23.60% | 21.20% |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
May 01, 2021 | May 02, 2020 | May 01, 2021 | May 02, 2020 | |
Reconciliation of the basic and diluted number of shares used in computing earnings per share: | ||||
Basic weighted average shares outstanding (in shares) | 56,458 | 53,718 | 56,028 | 53,485 |
Net effect of dilutive stock awards based upon the treasury stock method (in shares) | 4,081 | 1,499 | 3,648 | 0 |
Diluted weighted average shares outstanding (in shares) | 60,539 | 55,217 | 59,676 | 53,485 |
Basic earnings (loss) per share: | ||||
Continuing operations (in dollars per share) | $ 0.83 | $ 1.72 | $ 1.78 | $ (5.80) |
Discontinued operations (in dollars per share) | 0.03 | (0.08) | 0.12 | (0.30) |
Basic earnings (loss) per share (in dollars per share) | 0.86 | 1.64 | 1.90 | (6.10) |
Diluted earnings (loss) per share: | ||||
Continuing operations (in dollars per share) | 0.77 | 1.67 | 1.67 | (5.80) |
Discontinued operations (in dollars per share) | 0.03 | (0.08) | 0.11 | (0.30) |
Diluted earnings (loss) per share (in dollars per share) | $ 0.80 | $ 1.60 | $ 1.78 | $ (6.10) |
Anti-dilutive stock-based awards excluded from the calculation of diluted earnings per share (in shares) | 790 | 1,771 | 1,152 | 1,868 |
Shares attributable to dilutive effect of stock awards | 1,500 |
BUSINESS SEGMENTS - Narrative (
BUSINESS SEGMENTS - Narrative (Details) - 9 months ended May 01, 2021 | reportableSegment | reportingUnit | segment |
Segment Reporting [Abstract] | |||
Number of reportable segments | 2 | ||
Wholesale | |||
Business segment information | |||
Number of operating segments | 2 | 2 |
BUSINESS SEGMENTS - Segment Inf
BUSINESS SEGMENTS - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
May 01, 2021 | May 02, 2020 | May 01, 2021 | May 02, 2020 | Aug. 01, 2020 | |
Business segment information | |||||
Net sales | $ 6,619,842 | $ 7,031,718 | $ 20,180,582 | $ 19,759,712 | |
Total other expense, net | (25,383) | (32,669) | (108,828) | (114,933) | |
Restructuring, acquisition and integration related expenses | 9,867 | 14,557 | 44,078 | 65,751 | |
Goodwill and asset impairment charges | 0 | 425,405 | |||
Income (loss) from continuing operations before income taxes | 65,111 | 91,648 | 136,302 | (389,533) | |
Depreciation and amortization | 66,365 | 69,642 | 210,088 | 214,002 | |
Capital expenditures | 73,941 | 35,675 | 165,457 | 126,803 | |
Assets | 7,520,824 | 7,520,824 | $ 7,586,972 | ||
Continuing operations | |||||
Business segment information | |||||
Assets | 7,514,495 | 7,514,495 | 7,577,990 | ||
Operating segments | Wholesale | |||||
Business segment information | |||||
Net sales | 6,359,810 | 6,749,984 | 19,399,868 | 19,024,209 | |
Adjusted EBITDA | 161,073 | 199,884 | 470,802 | 408,650 | |
Depreciation and amortization | 58,136 | 66,754 | 184,723 | 200,515 | |
Capital expenditures | 66,282 | 33,456 | 150,155 | 119,085 | |
Operating segments | Wholesale | Continuing operations | |||||
Business segment information | |||||
Net sales | 323,500 | 352,800 | 1,026,400 | 958,600 | |
Assets | 6,580,627 | 6,580,627 | 6,588,836 | ||
Operating segments | Retail | |||||
Business segment information | |||||
Net sales | 578,246 | 636,887 | 1,794,028 | 1,690,742 | |
Adjusted EBITDA | 21,547 | 36,931 | 71,159 | 58,921 | |
Depreciation and amortization | 6,776 | 611 | 20,928 | 2,912 | |
Capital expenditures | 7,512 | 2,131 | 14,822 | 7,426 | |
Operating segments | Retail | Continuing operations | |||||
Business segment information | |||||
Assets | 560,725 | 560,725 | 542,470 | ||
Operating segments | Other | |||||
Business segment information | |||||
Net sales | 54,808 | 58,359 | 165,848 | 164,511 | |
Adjusted EBITDA | 85 | (17,247) | (3,610) | (4,419) | |
Depreciation and amortization | 1,453 | 2,277 | 4,437 | 10,575 | |
Capital expenditures | 147 | 88 | 480 | 292 | |
Operating segments | Other | Continuing operations | |||||
Business segment information | |||||
Assets | 436,251 | 436,251 | 501,468 | ||
Eliminations | |||||
Business segment information | |||||
Net sales | (373,022) | (413,512) | (1,179,162) | (1,119,750) | |
Adjusted EBITDA | (5,375) | 53 | (1,429) | 547 | |
Eliminations | Continuing operations | |||||
Business segment information | |||||
Assets | (63,108) | (63,108) | $ (54,784) | ||
Adjustments | |||||
Business segment information | |||||
Net income attributable to noncontrolling interests | 1,394 | 2,238 | 4,366 | 3,407 | |
Total other expense, net | (25,383) | (32,669) | (108,828) | (114,933) | |
Depreciation and amortization | (66,365) | (69,642) | (210,088) | (214,002) | |
Share-based compensation | (11,668) | (12,992) | (38,490) | (22,051) | |
Restructuring, acquisition and integration related expenses | (9,867) | (14,557) | (44,078) | (65,751) | |
Goodwill and asset impairment charges | 0 | 0 | 0 | (425,405) | |
Gain (loss) on sale of assets | 25 | (351) | (144) | (785) | |
Notes receivable charges | 0 | 0 | 0 | (12,516) | |
Legal reserve charge | 0 | 0 | 0 | (1,196) | |
Other retail expense | $ (355) | $ 0 | $ (3,358) | $ 0 |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS (Details) | Jan. 21, 2021case | May 01, 2021USD ($)case |
Loss Contingencies [Line Items] | ||
Lessor receivables | $ 0 | |
Non-cancelable future purchase obligations | $ 243,000,000 | |
Multi-District Litigation | ||
Loss Contingencies [Line Items] | ||
Number of suits pending | case | 42 | |
Number of cases consolidated | case | 1,800 | |
Complaint from Various Health Plans | ||
Loss Contingencies [Line Items] | ||
Number of new causes of action | case | 6 | |
Schutte and Yarberry v. SuperValu, New Albertson's, Inc., et al | ||
Loss Contingencies [Line Items] | ||
Alleged damages (in excess of) | $ 100,000,000 | |
Share of potential award | $ 24,000,000 | |
Moran Foods, LLC | ||
Loss Contingencies [Line Items] | ||
Professional services agreement term | 5 years | |
Professional services agreement, base amount | $ 30,000,000 | |
Guarantee Obligations | ||
Loss Contingencies [Line Items] | ||
Estimated loss | 1,000,000 | |
Lease Guarantee Arrangements | ||
Loss Contingencies [Line Items] | ||
Estimated loss | 0 | |
Indemnification Agreement | ||
Loss Contingencies [Line Items] | ||
Estimated loss | 0 | |
Payment guarantee | ||
Loss Contingencies [Line Items] | ||
Guarantor obligations, maximum exposure, undiscounted | 28,000,000 | |
Guarantor obligations, maximum exposure, discounted | $ 24,400,000 | |
Payment guarantee | Minimum | ||
Loss Contingencies [Line Items] | ||
Guarantor obligations, guarantees term | 1 year | |
Payment guarantee | Maximum | ||
Loss Contingencies [Line Items] | ||
Guarantor obligations, guarantees term | 9 years | |
Payment guarantee | Weighted average | ||
Loss Contingencies [Line Items] | ||
Guarantor obligations, guarantees term | 5 years |
DISCONTINUED OPERATIONS - Narra
DISCONTINUED OPERATIONS - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
May 01, 2021USD ($)store | May 02, 2020USD ($) | Feb. 01, 2020store | May 01, 2021USD ($)store | May 02, 2020USD ($) | Aug. 01, 2020USD ($) | |
Operating segments | Wholesale Segment | Discontinued operations | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Revenues | $ 12.4 | $ 16.8 | $ 40.2 | $ 108.9 | ||
Discontinued Operations, Disposed of by Sale | Shop 'n Save | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of stores closed | store | 13 | |||||
Pre-tax aggregate costs and charges | $ 28.3 | |||||
Operating losses and transaction costs | 22.9 | |||||
Property and equipment impairment charges | $ 5.5 | |||||
Discontinued Operations, Disposed of by Means Other than Sale | Shop 'n Save | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of stores closed | store | 6 | |||||
Retail | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of stores held for sale | store | 4 | 4 |
DISCONTINUED OPERATIONS - Opera
DISCONTINUED OPERATIONS - Operating Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
May 01, 2021 | May 02, 2020 | May 01, 2021 | May 02, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Net sales | $ 20,009 | $ 30,115 | $ 67,798 | $ 200,786 |
Cost of sales | 13,172 | 21,548 | 45,692 | 143,187 |
Gross profit | 6,837 | 8,567 | 22,106 | 57,599 |
Operating expenses | 4,658 | 6,046 | 14,417 | 46,350 |
Restructuring expenses and charges | (187) | 6,686 | 596 | 30,870 |
Operating income (loss) | 2,366 | (4,165) | 7,093 | (19,621) |
Other income, net | 0 | (107) | 0 | (171) |
Income (loss) from discontinued operations before income taxes | 2,366 | (4,058) | 7,093 | (19,450) |
Provision (benefit) for income taxes | 713 | 20 | 341 | (3,322) |
Income (loss) from discontinued operations, net of tax | $ 1,653 | $ (4,078) | $ 6,752 | $ (16,128) |
DISCONTINUED OPERATIONS - Balan
DISCONTINUED OPERATIONS - Balance Sheet (Details) - USD ($) $ in Thousands | May 01, 2021 | Aug. 01, 2020 |
Current assets | ||
Cash and cash equivalents | $ 136 | $ 119 |
Accounts receivable, net | 477 | 350 |
Inventories, net | 3,876 | 4,233 |
Other current assets | 410 | 365 |
Total current assets of discontinued operations | 4,899 | 5,067 |
Long-term assets | ||
Property and equipment | 965 | 3,450 |
Other long-term assets | 465 | 465 |
Total long-term assets of discontinued operations | 1,430 | 3,915 |
Total assets of discontinued operations | 6,329 | 8,982 |
Current liabilities | ||
Accounts payable | 2,757 | 3,613 |
Accrued compensation and benefits | 2,332 | 4,501 |
Other current liabilities | 1,907 | 3,324 |
Total current liabilities of discontinued operations | 6,996 | 11,438 |
Long-term liabilities | ||
Other long-term liabilities | 15 | 1,738 |
Total liabilities of discontinued operations | 7,011 | 13,176 |
Net liabilities of discontinued operations | $ (682) | $ (4,194) |