The Company’s restructuring initiatives include optimization of its distribution center network, cost structure and retail footprint. The Company is unable to estimate the total amount of costs expected to be incurred in connection with the restructuring activities given their nature, including the consideration of multiple scenarios for the disposal of non-operating real estate.


	13-Week Period Ended				39-Week Period Ended
(in millions)	May 2, 2026		May 3, 2025		May 2, 2026		May 3, 2025
Restructuring and integration costs	$	3	$	12	$	20	$	28
Closed property charges and costs, net	7		2		20		7
Total Restructuring, acquisition and integration related expenses	$	10	$	14	$	40	$	35

Restructuring and integration costs for fiscal 2026 year-to-date primarily include an adjustment to previously recorded multiemployer pension plan withdrawal liabilities and costs associated with certain employee severance and other employee separation costs related to strategic retail store closures and distribution network optimization. Restructuring and integration costs for fiscal 2025 year-to-date primarily include costs associated with certain employee severance and other employee separation costs related to the Company’s strategic initiatives focused on optimizing our cost structure and better aligning corporate resources, and strategic retail store closures, as well as outsourcing certain corporate functions under restructuring initiatives.

Closed property charges for fiscal 2026 and 2025 year-to-date primarily relate to non-operating distribution centers as the Company optimizes its distribution center network, and non-operating retail stores.

Changes in certain restructuring liabilities, which are included in Accrued expenses and other current liabilities and Accrued compensation and benefits in the Condensed Consolidated Balance Sheets, consisted of the following:


(in millions)	Severance and other employee separation costs		Contract termination charges and costs
Balances at August 2, 2025	$	10	$	35
Restructuring-related charges	7		—
Cash settlements	(11)		(35)
Balances at May 2, 2026	$	6	$	—

In the fourth 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. In connection with this termination agreement, the Company incurred a $53 million charge in the fourth quarter of fiscal 2025 for contract termination payments. The supply agreement terminated on September 6, 2025, and the customer’s conventional products business in the Northeast transitioned to another wholesaler. All installment amounts owed related to the contract termination have been paid.