v3.26.1
BUSINESS SEGMENTS
 9 Months Ended
May 02, 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 May 2, 2026
(in millions)NaturalConventionalRetailTotal
Net sales (revenues from external customers)$4,331 $2,877 $515 $7,723 
Intersegment Net sales11 259 — 270 
4,342 3,136 515 $7,993 
Elimination of intersegment Net sales(270)
Net sales$7,723 
Less:
Cost of sales(1)
3,769 2,778 389 
Distribution expenses(1)
328 217 — 
Other(2)
99 77 135 
Segment Adjusted EBITDA146 64 (9)$201 
Adjustments:
Elimination of intersegment profit
2 
Unallocated corporate overhead(20)
Net periodic benefit income, excluding service cost6 
Interest expense, net(31)
Other income, net1 
Depreciation and amortization(74)
Share-based compensation(18)
LIFO charge(8)
Restructuring, acquisition, and integration related expenses(10)
Loss on sale of assets and other asset charges
(19)
Business transformation costs(7)
Cybersecurity incident19 
Income before income taxes
$42 
(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 May 3, 2025(1)
(in millions)NaturalConventionalRetailTotal
Net sales (revenues from external customers)$4,149 $3,337 $573 $8,059 
Intersegment Net sales11 291 — 302 
4,160 3,628 573 $8,361 
Elimination of intersegment Net sales(302)
Net sales$8,059 
Less:
Cost of sales(2)
3,608 3,248 428 
Distribution expenses(2)
318 246 — 
Other(3)
110 87 144 
Segment Adjusted EBITDA124 47 1 $172 
Adjustments:
Elimination of intersegment profit
1 
Unallocated corporate overhead(16)
Net periodic benefit income, excluding service cost5 
Interest expense, net(36)
Depreciation and amortization(81)
Share-based compensation(10)
LIFO benefit5 
Restructuring, acquisition, and integration related expenses(14)
Loss on sale of assets and other asset charges
(28)
Business transformation costs(14)
Loss before income taxes
$(16)
(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
39-Week Period Ended May 2, 2026
(in millions)NaturalConventionalRetailTotal
Net sales (revenues from external customers)$12,839 $9,042 $1,629 $23,510 
Intersegment Net sales33 811 — 844 
12,872 9,853 1,629 $24,354 
Elimination of intersegment Net sales(844)
Net sales$23,510 
Less:
Cost of sales(1)
11,207 8,744 1,237 
Distribution expenses(1)
979 666 — 
Other(2)
283 235 415 
Segment Adjusted EBITDA403 208 (23)$588 
Adjustments:
Elimination of intersegment profit
1 
Unallocated corporate overhead(60)
Net periodic benefit income, excluding service cost18 
Interest expense, net(97)
Other income, net(7)
Depreciation and amortization(225)
Share-based compensation(45)
LIFO charge(18)
Restructuring, acquisition, and integration related expenses(40)
Loss on sale of assets and other asset charges
(42)
Business transformation costs(24)
Cybersecurity incident18 
Other adjustments(11)
Income before income taxes
$56 
(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
39-Week Period Ended May 3, 2025(1)
(in millions)NaturalConventionalRetailTotal
Net sales (revenues from external customers)$11,977 $10,342 $1,769 $24,088 
Intersegment Net sales42 911 — 953 
12,019 11,253 1,769 $25,041 
Elimination of intersegment Net sales(953)
Net sales$24,088 
Less:
Cost of sales(2)
10,434 10,087 1,320 
Distribution expenses(2)
943 752 — 
Other(3)
319 263 440 
Segment Adjusted EBITDA323 151 9 $483 
Adjustments:
Elimination of intersegment profit
1 
Unallocated corporate overhead(48)
Net income attributable to noncontrolling interests2 
Net periodic benefit income, excluding service cost15 
Interest expense, net(110)
Other income, net3 
Depreciation and amortization(242)
Share-based compensation(28)
LIFO charge(5)
Restructuring, acquisition, and integration related expenses(35)
Loss on sale of assets and other asset charges
(39)
Business transformation costs(40)
Other adjustments(2)
Loss before income taxes
$(45)
(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 Ended39-Week Period Ended
 (in millions)May 2, 2026
May 3, 2025(1)
May 2, 2026
May 3, 2025(1)
Depreciation and amortization:
Natural$26 $27 $79 $77 
Conventional41 45 121 134 
Retail7 9 23 27 
Total segments74 81 223 238 
Unallocated corporate— — 2 4 
Consolidated total$74 $81 $225 $242 
Payments for capital expenditures:
Natural$15 $30 $45 $109 
Conventional24 15 46 33 
Retail3 8 6 14 
Total segments42 53 97 156 
Unallocated corporate2 1 3 1 
Consolidated total$44 $54 $100 $157 
(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.