v3.25.4
BUSINESS SEGMENTS
 6 Months Ended
Jan. 31, 2026
Segment Reporting [Abstract]  
BUSINESS SEGMENTS
NOTE 14—BUSINESS SEGMENTS

As disclosed in the Annual Report, the Company updated its segment reporting structure effective for the fourth quarter of fiscal 2025 to reflect organizational changes and align with how the business is now operated and managed. The Company has three reportable segments: Natural, Conventional and Retail. Prior periods have been recast to conform to the new reportable operating segments. Reportable segments are reviewed on an annual basis, or more frequently if events or circumstances indicate a change in reportable segments has occurred.

The Natural reportable segment is engaged in the wholesale distribution of natural, organic and specialty grocery and non-food products and services and includes the Company’s portfolio of natural owned brands and natural and organic snack food manufacturing business. The Conventional reportable segment is engaged in the wholesale distribution of conventional grocery and non-food products and services and includes the Company’s portfolio of conventional owned brands. The Retail reportable segment derives revenues from the sale of groceries and other products at the Company’s grocery and liquor stores operating under the Cub® Foods and Shoppers® banners. Intersegment sales represent sales between the segments, which are eliminated in consolidation. Intersegment transactions are generally recorded at amounts that approximate market value.

The Company’s Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer. The Company’s CODM uses segment Adjusted EBITDA as the measure of segment profitability to assess the performance and core business trends of each segment through regular review of financial information, and when making decisions about the allocation of resources to each segment. The Company’s CODM uses segment Adjusted EBITDA primarily as a part of the annual budget and forecasting process. Segment Adjusted EBITDA includes revenues and costs attributable to each of the respective business segments and certain allocated corporate expenses, based on the segment’s estimated consumption of corporately managed resources.

Unallocated corporate overhead includes a portion of centrally-managed corporate functions, which include, but are not limited to, corporate legal operations, investor relations, treasury, certain enterprise-wide information technology and other corporate operating expenses that are not integral to segment performance. Unallocated corporate overhead excludes items such as restructuring, acquisition and integration related expenses and share-based compensation. These items are excluded from the definition of Adjusted EBITDA and are added back to reconcile segment Adjusted EBITDA to Income (loss) before income taxes.
The Company does not report total assets by segment for internal or external reporting purposes as the Company’s CODM does not assess performance or allocate resources based on segment assets. Additionally, the Company does not record its revenues within its Natural nor Conventional reportable segments for financial reporting purposes by product group, and it is therefore impracticable for it to report them accordingly.

The following tables provide financial information for each reportable segment, along with a reconciliation to Income (loss) before income taxes:
13-Week Period Ended January 31, 2026
(in millions)NaturalConventionalRetailTotal
Net sales (revenues from external customers)$4,279 $3,108 $560 $7,947 
Intersegment Net sales11 284 — 295 
4,290 3,392 560 $8,242 
Elimination of intersegment Net sales(295)
Net sales$7,947 
Less:
Cost of sales(1)
3,746 3,015 428 
Distribution expenses(1)
320 223 — 
Other(2)
94 80 137 
Segment Adjusted EBITDA130 74 (5)$199 
Adjustments:
Unallocated corporate overhead(20)
Net periodic benefit income, excluding service cost6 
Interest expense, net(32)
Other income, net(8)
Depreciation and amortization(74)
Share-based compensation(16)
LIFO charge(5)
Restructuring, acquisition, and integration related expenses(8)
Loss on sale of assets and other asset charges
(9)
Business transformation costs(13)
Cybersecurity incident3 
Income before income taxes
$23 
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2)Other segment items for each reportable segment include:
•Natural and Conventional – other operating costs such as selling, general and administrative expenses and certain allocated corporate costs
•Retail – other operating costs such as store compensation and occupancy costs, selling and administrative expenses as well as an adjustment for Net income attributable to noncontrolling interests, which is excluded from Adjusted EBITDA
13-Week Period Ended February 1, 2025(1)
(in millions)NaturalConventionalRetailTotal
Net sales (revenues from external customers)$4,007 $3,541 $610 $8,158 
Intersegment Net sales14 320 — 334 
4,021 3,861 610 $8,492 
Elimination of intersegment Net sales(334)
Net sales$8,158 
Less:
Cost of sales(2)
3,500 3,460 454 
Distribution expenses(2)
317 255 — 
Other(3)
107 87 149 
Segment Adjusted EBITDA97 59 7 $163 
Adjustments:
Elimination of intersegment loss
(2)
Unallocated corporate overhead(16)
Net income attributable to noncontrolling interests1 
Net periodic benefit income, excluding service cost5 
Interest expense, net(38)
Other income, net1 
Depreciation and amortization(81)
Share-based compensation(11)
LIFO charge(3)
Restructuring, acquisition, and integration related expenses(9)
Loss on sale of assets and other asset charges
(5)
Business transformation costs(8)
Other adjustments(2)
Loss before income taxes
$(5)
(1)Prior periods have been recast to conform to the Company’s new reportable operating segments effective for the fourth quarter of fiscal 2025. There was no impact to the Company’s consolidated results.
(2)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(3)Other segment items for each reportable segment include:
•Natural and Conventional – other operating costs such as selling, general and administrative expenses and certain allocated corporate costs
•Retail – other operating costs such as store compensation and occupancy costs, selling and administrative expenses as well as an adjustment for Net income attributable to noncontrolling interests, which is excluded from Adjusted EBITDA
26-Week Period Ended January 31, 2026
(in millions)NaturalConventionalRetailTotal
Net sales (revenues from external customers)$8,508 $6,165 $1,114 $15,787 
Intersegment Net sales22 552 — 574 
8,530 6,717 1,114 $16,361 
Elimination of intersegment Net sales(574)
Net sales$15,787 
Less:
Cost of sales(1)
7,438 5,966 848 
Distribution expenses(1)
651 449 — 
Other(2)
184 158 280 
Segment Adjusted EBITDA257 144 (14)$387 
Adjustments:
Elimination of intersegment loss
(1)
Unallocated corporate overhead(40)
Net periodic benefit income, excluding service cost12 
Interest expense, net(66)
Other income, net(8)
Depreciation and amortization(151)
Share-based compensation(27)
LIFO charge(10)
Restructuring, acquisition, and integration related expenses(30)
Loss on sale of assets and other asset charges
(23)
Business transformation costs(17)
Cybersecurity incident(1)
Other adjustments(11)
Income before income taxes
$14 
(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(2)Other segment items for each reportable segment include:
•Natural and Conventional – other operating costs such as selling, general and administrative expenses and certain allocated corporate costs
•Retail – other operating costs such as store compensation and occupancy costs, selling and administrative expenses as well as an adjustment for Net income attributable to noncontrolling interests, which is excluded from Adjusted EBITDA
26-Week Period Ended February 1, 2025(1)
(in millions)NaturalConventionalRetailTotal
Net sales (revenues from external customers)$7,828 $7,005 $1,196 $16,029 
Intersegment Net sales31 620 — 651 
7,859 7,625 1,196 $16,680 
Elimination of intersegment Net sales(651)
Net sales$16,029 
Less:
Cost of sales(2)
6,826 6,839 892 
Distribution expenses(2)
625 506 — 
Other(3)
209 176 296 
Segment Adjusted EBITDA199 104 8 $311 
Adjustments:
Unallocated corporate overhead(32)
Net income attributable to noncontrolling interests2 
Net periodic benefit income, excluding service cost10 
Interest expense, net(74)
Other income, net3 
Depreciation and amortization(161)
Share-based compensation(18)
LIFO charge(10)
Restructuring, acquisition, and integration related expenses(21)
Loss on sale of assets and other asset charges
(11)
Business transformation costs(26)
Other adjustments(2)
Loss before income taxes
$(29)
(1)Prior periods have been recast to conform to the Company’s new reportable operating segments effective for the fourth quarter of fiscal 2025. There was no impact to the Company’s consolidated results.
(2)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.
(3)Other segment items for each reportable segment include:
•Natural and Conventional – other operating costs such as selling, general and administrative expenses and certain allocated corporate costs
•Retail – other operating costs such as store compensation and occupancy costs, selling and administrative expenses as well as an adjustment for Net income attributable to noncontrolling interests, which is excluded from Adjusted EBITDA
The following table provides other significant items by reportable segment, along with a reconciliation to consolidated totals:
13-Week Period Ended26-Week Period Ended
 (in millions)January 31, 2026
February 1, 2025(1)
January 31, 2026
February 1, 2025(1)
Depreciation and amortization:
Natural$27 $25 $53 $50 
Conventional38 44 80 89 
Retail7 9 16 18 
Total segments72 78 149 157 
Unallocated corporate2 3 2 4 
Consolidated total$74 $81 $151 $161 
Payments for capital expenditures:
Natural$21 $41 $30 $79 
Conventional17 9 22 18 
Retail1 4 3 6 
Total segments39 54 55 103 
Unallocated corporate1 — 1 — 
Consolidated total$40 $54 $56 $103 
(1)Prior periods have been recast to conform to the Company’s new reportable operating segments effective for the fourth quarter of fiscal 2025. There was no impact to the Company’s consolidated results.