SUBSEQUENT EVENTS |
9 Months Ended |
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May 03, 2025 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 15—SUBSEQUENT EVENTS Subsequent to the third quarter of fiscal 2025, the Company mutually agreed to terminate its supply agreement with a customer in the East region, pursuant to which the Company served as the customer’s primary grocery wholesaler in the Northeast. The supply agreement will terminate on or around September 20, 2025, and the customer’s conventional products business in the Northeast will transition to another wholesaler. In connection with this termination agreement, the Company will make a contract termination payment of $53 million, which is expected to be made in installment payments over a transition period ending in the first quarter of fiscal 2026. The termination charge will be recorded within Restructuring, acquisition and integration related expenses in the fourth quarter of fiscal 2025. As a result of this expected loss in volume, the Company concluded in the third quarter of fiscal 2025 that it was more likely than not that it would discontinue operations at the Allentown, Pennsylvania distribution center, and recorded a $24 million non-cash asset impairment charge during the third quarter of fiscal 2025. The fair value utilized in the Company’s impairment analysis was determined based on the income approach, and the impairment charge is recorded within Loss on sale of assets and other asset charges in the Condensed Consolidated Statements of Operations.
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