v3.26.1
SEGMENT REPORTING
4 Months Ended
May 23, 2026
SEGMENT REPORTING  
SEGMENT REPORTING

7.

SEGMENT REPORTING

The Company operates supermarkets, multi-department stores and fulfillment centers throughout the United States. The Company’s retail operations, which represent substantially all of the Company’s consolidated sales, are its only reportable segment. The retail operations’ segment revenues are predominately earned as consumer products are sold to customers in our stores, fuel centers and via the Company’s eCommerce business. The Company aggregates its operating divisions into one reportable segment due to the operating divisions having similar economic characteristics with similar long-term financial performance. In addition, the Company’s operating divisions offer customers similar products, have similar distribution methods, operate in similar regulatory environments, purchase the majority of the merchandise for retail sale from similar (and in many cases identical) vendors on a coordinated basis from a centralized location, serve similar types of customers, and are allocated capital from a centralized location. Operating divisions are organized primarily on a geographical basis so the operating division management team can be responsive to local needs of the operating division and can execute company strategic plans and initiatives throughout the locations in their operating division. This geographical separation is the primary differentiation between these retail operating divisions. The geographical basis of organization reflects how the business is managed and how the Company’s principal executive officer, who acts as the Company’s chief operating decision maker (“CODM”), assesses performance internally. All of the Company’s operations are domestic.

The Company’s CODM assesses performance and allocates resources for the retail operations segment using segment FIFO earnings before net interest expense, income tax expense and depreciation and amortization (“EBITDA”). The Company defines FIFO EBITDA as EBITDA excluding the LIFO charge. The Company’s CODM also uses segment FIFO EBITDA to measure the operational effectiveness of the Company’s financial model, compare the performance of core operating results between periods, against budget and against competitors and evaluate whether to invest capital in the retail operations segment or in other parts of the Company, such as for share repurchases or dividend payments. The Company’s CODM is not provided asset information by reportable segment as asset information is provided to the CODM on a consolidated basis.

The following table presents the Company’s retail operations segment revenue, measure of segment profit or loss, significant segment expenses and reconciliation of retail operations segment FIFO EBITDA to consolidated net earnings before income tax expense and retail operations segment sales to consolidated sales for the first quarters of 2026 and 2025:

First Quarter Ended

May 23,

May 24,

  ​ ​ ​

2026

  ​ ​ ​

2025(1)

Retail operations segment sales

$

46,121

$

45,118

Retail operations segment expenses:

Merchandise costs, including advertising, warehousing, and transportation, excluding the LIFO charge

35,441

34,511

Operating, general, and administrative

7,963

7,923

Rent

269

271

Retail operations segment FIFO EBITDA

$

2,448

$

2,413

Reconciliation of net earnings before income tax expense:

Retail operations segment FIFO EBITDA

$

2,448

$

2,413

Depreciation and amortization

(989)

(1,051)

LIFO charge

(52)

(40)

Net interest expense

(209)

(199)

Non-service component of company-sponsored pension plan expense

(7)

(1)

Loss on investments

(14)

(19)

Consolidated net earnings before income tax expense

$

1,177

$

1,103

(1)The presentation of segment revenues and significant segments expenses for the first quarter ended May 24, 2025 has been recast to conform to the current year presentation and reflects operating segment information reviewed by the Company's current CODM.