Customer relationships | 7-20\u00a0years |
Non-competition agreements | 2-10 years |
Trademarks and tradenames | 2-10\u00a0years |
Leases in place | 1-8 years |
Favorable operating leases | 1-8 years |
Unfavorable operating leases | 2-11 years |
Pharmacy prescription files | 7 years |
\u2022 | Level\u00a01 Inputs\u2014Unadjusted quoted prices in active markets for identical assets or liabilities. |
\u2022 | Level\u00a02 Inputs\u2014Inputs other than quoted prices included in Level\u00a01 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data. |
\u2022 | Level\u00a03 Inputs\u2014One or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. Level\u00a03 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, and significant management judgment or estimation. |
(in thousands) | 2020 | 2019 | 2018 | ||||||||
Beginning balance | $ | 88,838 | $ | 24,703 | $ | 22,776 | |||||
Assumed liabilities from the Supervalu acquisition | \u2014 | 55,213 | \u2014 | ||||||||
Expense | 44,125 | 42,764 | 14,274 | ||||||||
Claim payments | (36,395 | ) | (33,087 | ) | (12,347 | ) | |||||
Reclassifications | 4,177 | (755 | ) | \u2014 | |||||||
Ending balance | $ | 100,745 | $ | 88,838 | $ | 24,703 |
Customer relationships | 7-20\u00a0years |
Non-competition agreements | 2-10 years |
Trademarks and tradenames | 2-10\u00a0years |
Leases in place | 1-8 years |
Favorable operating leases | 1-8 years |
Unfavorable operating leases | 2-11 years |
Pharmacy prescription files | 7 years |
Customer relationships | 7-20\u00a0years |
Non-competition agreements | 2-10 years |
Trademarks and tradenames | 2-10\u00a0years |
Leases in place | 1-8 years |
Favorable operating leases | 1-8 years |
Unfavorable operating leases | 2-11 years |
Pharmacy prescription files | 7 years |
\u2022 | Level\u00a01 Inputs\u2014Unadjusted quoted prices in active markets for identical assets or liabilities. |
\u2022 | Level\u00a02 Inputs\u2014Inputs other than quoted prices included in Level\u00a01 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data. |
\u2022 | Level\u00a03 Inputs\u2014One or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. Level\u00a03 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, and significant management judgment or estimation. |
(in thousands) | 2020 | 2019 | 2018 | ||||||||
Beginning balance | $ | 88,838 | $ | 24,703 | $ | 22,776 | |||||
Assumed liabilities from the Supervalu acquisition | \u2014 | 55,213 | \u2014 | ||||||||
Expense | 44,125 | 42,764 | 14,274 | ||||||||
Claim payments | (36,395 | ) | (33,087 | ) | (12,347 | ) | |||||
Reclassifications | 4,177 | (755 | ) | \u2014 | |||||||
Ending balance | $ | 100,745 | $ | 88,838 | $ | 24,703 |
(in thousands) | 2020 | 2019 | 2018 | ||||||||
Beginning balance | $ | 88,838 | $ | 24,703 | $ | 22,776 | |||||
Assumed liabilities from the Supervalu acquisition | \u2014 | 55,213 | \u2014 | ||||||||
Expense | 44,125 | 42,764 | 14,274 | ||||||||
Claim payments | (36,395 | ) | (33,087 | ) | (12,347 | ) | |||||
Reclassifications | 4,177 | (755 | ) | \u2014 | |||||||
Ending balance | $ | 100,745 | $ | 88,838 | $ | 24,703 |
Balance at August 3, 2019 | Adjustments due to adoption of the new lease guidance | Adjusted Balance at August 4, 2019 | ||||||||||
Assets | ||||||||||||
Prepaid expenses and other current assets | $ | 235,774 | $ | (14,733 | ) | $ | 221,041 | |||||
Property and equipment, net | 1,896,164 | (142,541 | ) | 1,753,623 | ||||||||
Operating lease assets | \u2014 | 1,059,473 | 1,059,473 | |||||||||
Intangible assets, net | 1,089,846 | (17,671 | ) | 1,072,175 | ||||||||
Deferred income taxes | $ | 34,262 | (839 | ) | $ | 33,423 | ||||||
Total increase to assets | $ | 883,689 | ||||||||||
Liabilities and Stockholders\u2019 Equity | ||||||||||||
Accrued expense and other current liabilities | $ | 260,531 | $ | (7,260 | ) | $ | 253,271 | |||||
Current portion of operating lease liabilities | \u2014 | 137,741 | 137,741 | |||||||||
Current portion of long-term debt and finance lease liabilities | 112,103 | (6,936 | ) | 105,167 | ||||||||
Long-term operating lease liabilities | \u2014 | 936,728 | 936,728 | |||||||||
Long-term finance lease obligations | 108,208 | (37,565 | ) | 70,643 | ||||||||
Other long-term liabilities | 394,749 | (141,901 | ) | 252,848 | ||||||||
Total stockholders\u2019 equity | $ | 1,504,305 | 2,882 | $ | 1,507,187 | |||||||
Total increase to liabilities and stockholders\u2019 equity | $ | 883,689 |
Balance at August 3, 2019 | Adjustments due to adoption of the new lease guidance | Adjusted Balance at August 4, 2019 | ||||||||||
Assets | ||||||||||||
Prepaid expenses and other current assets | $ | 235,774 | $ | (14,733 | ) | $ | 221,041 | |||||
Property and equipment, net | 1,896,164 | (142,541 | ) | 1,753,623 | ||||||||
Operating lease assets | \u2014 | 1,059,473 | 1,059,473 | |||||||||
Intangible assets, net | 1,089,846 | (17,671 | ) | 1,072,175 | ||||||||
Deferred income taxes | $ | 34,262 | (839 | ) | $ | 33,423 | ||||||
Total increase to assets | $ | 883,689 | ||||||||||
Liabilities and Stockholders\u2019 Equity | ||||||||||||
Accrued expense and other current liabilities | $ | 260,531 | $ | (7,260 | ) | $ | 253,271 | |||||
Current portion of operating lease liabilities | \u2014 | 137,741 | 137,741 | |||||||||
Current portion of long-term debt and finance lease liabilities | 112,103 | (6,936 | ) | 105,167 | ||||||||
Long-term operating lease liabilities | \u2014 | 936,728 | 936,728 | |||||||||
Long-term finance lease obligations | 108,208 | (37,565 | ) | 70,643 | ||||||||
Other long-term liabilities | 394,749 | (141,901 | ) | 252,848 | ||||||||
Total stockholders\u2019 equity | $ | 1,504,305 | 2,882 | $ | 1,507,187 | |||||||
Total increase to liabilities and stockholders\u2019 equity | $ | 883,689 |
Balance at August 3, 2019 | Adjustments due to adoption of the new lease guidance | Adjusted Balance at August 4, 2019 | ||||||||||
Assets | ||||||||||||
Prepaid expenses and other current assets | $ | 235,774 | $ | (14,733 | ) | $ | 221,041 | |||||
Property and equipment, net | 1,896,164 | (142,541 | ) | 1,753,623 | ||||||||
Operating lease assets | \u2014 | 1,059,473 | 1,059,473 | |||||||||
Intangible assets, net | 1,089,846 | (17,671 | ) | 1,072,175 | ||||||||
Deferred income taxes | $ | 34,262 | (839 | ) | $ | 33,423 | ||||||
Total increase to assets | $ | 883,689 | ||||||||||
Liabilities and Stockholders\u2019 Equity | ||||||||||||
Accrued expense and other current liabilities | $ | 260,531 | $ | (7,260 | ) | $ | 253,271 | |||||
Current portion of operating lease liabilities | \u2014 | 137,741 | 137,741 | |||||||||
Current portion of long-term debt and finance lease liabilities | 112,103 | (6,936 | ) | 105,167 | ||||||||
Long-term operating lease liabilities | \u2014 | 936,728 | 936,728 | |||||||||
Long-term finance lease obligations | 108,208 | (37,565 | ) | 70,643 | ||||||||
Other long-term liabilities | 394,749 | (141,901 | ) | 252,848 | ||||||||
Total stockholders\u2019 equity | $ | 1,504,305 | 2,882 | $ | 1,507,187 | |||||||
Total increase to liabilities and stockholders\u2019 equity | $ | 883,689 |
\u2022 | Chains, which consists of customer accounts that typically have more than 10 operating stores and exclude stores included within the Supernatural and Other channels defined below; |
\u2022 | Independent retailers, which include smaller size accounts and include single store and multiple store locations, but are not classified within Chains above or Other discussed below; |
\u2022 | Supernatural, which consists of chain accounts that are national in scope and carry primarily natural products, and currently consists solely of Whole Foods Market; |
\u2022 | Retail, which includes our Retail segment, including the Cub Foods business and the majority of the remaining Shoppers locations, excluding five Shoppers locations that are held for sale; and |
\u2022 | Other, which includes international customers outside of Canada, foodservice, e-commerce, conventional military business and other sales. |
(in millions) | Net Sales for Fiscal 2020 (52 weeks) | |||||||||||||||||||
Customer\u00a0Channel | Wholesale | Retail | Other | Eliminations | Consolidated | |||||||||||||||
Chains | $ | 11,982 | $ | \u2014 | $ | \u2014 | $ | (1,319 | ) | $ | 10,663 | |||||||||
Independent retailers | 6,699 | \u2014 | \u2014 | \u2014 | 6,699 | |||||||||||||||
Supernatural | 4,720 | \u2014 | \u2014 | \u2014 | 4,720 | |||||||||||||||
Retail | \u2014 | 2,331 | \u2014 | \u2014 | 2,331 | |||||||||||||||
Other | 2,095 | \u2014 | 228 | (222 | ) | 2,101 | ||||||||||||||
Total | $ | 25,496 | $ | 2,331 | $ | 228 | $ | (1,541 | ) | $ | 26,514 |
(in millions) | Net Sales for Fiscal 2019(1)\u00a0(53 weeks) | |||||||||||||||||||
Customer\u00a0Channel | Wholesale | Retail | Other | Eliminations | Consolidated | |||||||||||||||
Chains | $ | 9,749 | $ | \u2014 | $ | \u2014 | $ | (937 | ) | $ | 8,812 | |||||||||
Independent retailers | 5,536 | \u2014 | \u2014 | \u2014 | 5,536 | |||||||||||||||
Supernatural | 4,394 | \u2014 | \u2014 | \u2014 | 4,394 | |||||||||||||||
Retail | \u2014 | 1,653 | \u2014 | \u2014 | 1,653 | |||||||||||||||
Other | 1,851 | \u2014 | 235 | (174 | ) | 1,912 | ||||||||||||||
Total | $ | 21,530 | $ | 1,653 | $ | 235 | $ | (1,111 | ) | $ | 22,307 |
(in millions) | Net Sales for Fiscal 2018(1) (52 weeks) | |||||||||||||||
Customer\u00a0Channel | Wholesale | Other | Eliminations | Consolidated | ||||||||||||
Chains | $ | 3,299 | $ | \u2014 | $ | \u2014 | $ | 3,299 | ||||||||
Supernatural | 3,758 | \u2014 | \u2014 | 3,758 | ||||||||||||
Independent retailers | 2,100 | \u2014 | \u2014 | 2,100 | ||||||||||||
Other | 1,014 | 228 | (172 | ) | 1,070 | |||||||||||
Total | $ | 10,171 | $ | 228 | $ | (172 | ) | $ | 10,227 |
(1) | Certain prior period amounts in the above tables have been reclassified to conform with the Company\u2019s current sales channel presentation. |
(in thousands) | August\u00a01, 2020 | August\u00a03, 2019 | |||||
Customer accounts receivable | $ | 1,156,694 | $ | 1,064,502 | |||
Allowance for uncollectible receivables | (55,928 | ) | (20,725 | ) | |||
Other receivables, net | 19,433 | 23,235 | |||||
Accounts receivable, net | $ | 1,120,199 | $ | 1,067,012 | |||
Notes receivable, net, included within Prepaid expenses and other current assets | $ | 49,268 | $ | 11,912 | |||
Long-term notes receivable, net, included within Other assets | $ | 25,800 | $ | 34,408 |
(in thousands) | 2020 | 2019 | 2018 | |||||||||
Balance at beginning of year | $ | 20,725 | $ | 15,996 | $ | 14,509 | ||||||
Additions charged to operating expenses | 37,849 | 9,749 | 12,006 | |||||||||
Reductions of net sales | 12,470 | 7,061 | \u2014 | |||||||||
Deductions | (15,116 | ) | (12,081 | ) | (10,519 | ) | ||||||
Balance at end of year | $ | 55,928 | $ | 20,725 | $ | 15,996 |
(in millions) | Net Sales for Fiscal 2020 (52 weeks) | |||||||||||||||||||
Customer\u00a0Channel | Wholesale | Retail | Other | Eliminations | Consolidated | |||||||||||||||
Chains | $ | 11,982 | $ | \u2014 | $ | \u2014 | $ | (1,319 | ) | $ | 10,663 | |||||||||
Independent retailers | 6,699 | \u2014 | \u2014 | \u2014 | 6,699 | |||||||||||||||
Supernatural | 4,720 | \u2014 | \u2014 | \u2014 | 4,720 | |||||||||||||||
Retail | \u2014 | 2,331 | \u2014 | \u2014 | 2,331 | |||||||||||||||
Other | 2,095 | \u2014 | 228 | (222 | ) | 2,101 | ||||||||||||||
Total | $ | 25,496 | $ | 2,331 | $ | 228 | $ | (1,541 | ) | $ | 26,514 |
(in millions) | Net Sales for Fiscal 2019(1)\u00a0(53 weeks) | |||||||||||||||||||
Customer\u00a0Channel | Wholesale | Retail | Other | Eliminations | Consolidated | |||||||||||||||
Chains | $ | 9,749 | $ | \u2014 | $ | \u2014 | $ | (937 | ) | $ | 8,812 | |||||||||
Independent retailers | 5,536 | \u2014 | \u2014 | \u2014 | 5,536 | |||||||||||||||
Supernatural | 4,394 | \u2014 | \u2014 | \u2014 | 4,394 | |||||||||||||||
Retail | \u2014 | 1,653 | \u2014 | \u2014 | 1,653 | |||||||||||||||
Other | 1,851 | \u2014 | 235 | (174 | ) | 1,912 | ||||||||||||||
Total | $ | 21,530 | $ | 1,653 | $ | 235 | $ | (1,111 | ) | $ | 22,307 |
(in millions) | Net Sales for Fiscal 2018(1) (52 weeks) | |||||||||||||||
Customer\u00a0Channel | Wholesale | Other | Eliminations | Consolidated | ||||||||||||
Chains | $ | 3,299 | $ | \u2014 | $ | \u2014 | $ | 3,299 | ||||||||
Supernatural | 3,758 | \u2014 | \u2014 | 3,758 | ||||||||||||
Independent retailers | 2,100 | \u2014 | \u2014 | 2,100 | ||||||||||||
Other | 1,014 | 228 | (172 | ) | 1,070 | |||||||||||
Total | $ | 10,171 | $ | 228 | $ | (172 | ) | $ | 10,227 |
(in thousands) | 2020 | 2019 | 2018 | |||||||||
Balance at beginning of year | $ | 20,725 | $ | 15,996 | $ | 14,509 | ||||||
Additions charged to operating expenses | 37,849 | 9,749 | 12,006 | |||||||||
Reductions of net sales | 12,470 | 7,061 | \u2014 | |||||||||
Deductions | (15,116 | ) | (12,081 | ) | (10,519 | ) | ||||||
Balance at end of year | $ | 55,928 | $ | 20,725 | $ | 15,996 |
(in thousands) | August\u00a01, 2020 | August\u00a03, 2019 | |||||
Customer accounts receivable | $ | 1,156,694 | $ | 1,064,502 | |||
Allowance for uncollectible receivables | (55,928 | ) | (20,725 | ) | |||
Other receivables, net | 19,433 | 23,235 | |||||
Accounts receivable, net | $ | 1,120,199 | $ | 1,067,012 | |||
Notes receivable, net, included within Prepaid expenses and other current assets | $ | 49,268 | $ | 11,912 | |||
Long-term notes receivable, net, included within Other assets | $ | 25,800 | $ | 34,408 |
(in thousands) | Final Acquisition Date Fair Values As Recast | |||
Consideration: | ||||
Outstanding shares | $ | 1,258,450 | ||
Outstanding debt, excluding acquired senior notes | 1,046,170 | |||
Equity-based awards | 18,411 | |||
Total consideration | $ | 2,323,031 | ||
Fair value of assets acquired and liabilities assumed: | ||||
Cash and cash equivalents | $ | 27,142 | ||
Accounts receivable | 554,311 | |||
Inventories | 1,274,624 | |||
Prepaid expenses and other current assets | 118,283 | |||
Current assets of discontinued operations | 69,201 | |||
Property, plant and equipment | 1,457,951 | |||
Goodwill | 376,181 | |||
Intangible assets | 967,003 | |||
Other assets | 77,093 | |||
Long-term assets of discontinued operations | 134,019 | |||
Accounts payable | (1,020,328 | ) | ||
Current portion of long-term debt and finance lease obligations | (579,565 | ) | ||
Other current liabilities | (380,239 | ) | ||
Current liabilities of discontinued operations | (54,142 | ) | ||
Long-term debt | (34,355 | ) | ||
Long-term finance lease obligations | (103,289 | ) | ||
Pension and other postretirement benefit obligations | (234,324 | ) | ||
Deferred income taxes | (18,254 | ) | ||
Other long-term liabilities | (309,144 | ) | ||
Long-term liabilities of discontinued operations | (770 | ) | ||
Noncontrolling interests | 1,633 | |||
Total consideration | 2,323,031 | |||
Less: Cash and cash equivalents(1) | (30,596 | ) | ||
Total consideration, net of cash and cash equivalents acquired | $ | 2,292,435 |
(1) | Includes cash and cash equivalents acquired attributable to continuing operations and discontinued operations. |
Final Acquisition Date Fair Values As Recast | ||||||||||
(in thousands) | Estimated Useful Life | Continuing Operations | Discontinued Operations | |||||||
Customer relationship assets | 10-17 years | $ | 810,000 | $ | \u2014 | |||||
Favorable operating leases | 1-19 years | 21,629 | \u2014 | |||||||
Leases in place | 1-8 years | 10,474 | \u2014 | |||||||
Tradenames | 2-9 years | 82,000 | 1,000 | |||||||
Pharmacy prescription files | 5-7 years | 32,900 | 13,000 | |||||||
Non-compete agreement | 2 years | 10,000 | \u2014 | |||||||
Unfavorable operating leases | 1-12 years | (21,754 | ) | \u2014 | ||||||
\u00a0\u00a0\u00a0\u00a0Total | $ | 945,249 | $ | 14,000 |
(unaudited, in thousands, except per share data) | August 3, 2019 As Recast (1) (53 weeks) | July 28, 2018 As Recast (2) (52 weeks) | ||||||
Net sales | $ | 25,639,516 | $ | 25,189,850 | ||||
Net (loss) income from continuing operations | $ | (225,544 | ) | $ | 48,394 | |||
Basic net (loss) income from continuing operations per share | $ | (4.40 | ) | $ | 0.96 | |||
Diluted net (loss) income from continuing operations per share | $ | (4.40 | ) | $ | 0.95 |
(1) | Includes 12 weeks of pro forma Supervalu results for the period ended September 8, 2018. |
(2) | Includes 52 weeks of pro forma Supervalu results for the period ended July 28, 2018, including 19 weeks of pro forma Associated Grocers of Florida, Inc. results, which was acquired by Supervalu on December 8, 2017. |
(in thousands) | Final Acquisition Date Fair Values As Recast | |||
Consideration: | ||||
Outstanding shares | $ | 1,258,450 | ||
Outstanding debt, excluding acquired senior notes | 1,046,170 | |||
Equity-based awards | 18,411 | |||
Total consideration | $ | 2,323,031 | ||
Fair value of assets acquired and liabilities assumed: | ||||
Cash and cash equivalents | $ | 27,142 | ||
Accounts receivable | 554,311 | |||
Inventories | 1,274,624 | |||
Prepaid expenses and other current assets | 118,283 | |||
Current assets of discontinued operations | 69,201 | |||
Property, plant and equipment | 1,457,951 | |||
Goodwill | 376,181 | |||
Intangible assets | 967,003 | |||
Other assets | 77,093 | |||
Long-term assets of discontinued operations | 134,019 | |||
Accounts payable | (1,020,328 | ) | ||
Current portion of long-term debt and finance lease obligations | (579,565 | ) | ||
Other current liabilities | (380,239 | ) | ||
Current liabilities of discontinued operations | (54,142 | ) | ||
Long-term debt | (34,355 | ) | ||
Long-term finance lease obligations | (103,289 | ) | ||
Pension and other postretirement benefit obligations | (234,324 | ) | ||
Deferred income taxes | (18,254 | ) | ||
Other long-term liabilities | (309,144 | ) | ||
Long-term liabilities of discontinued operations | (770 | ) | ||
Noncontrolling interests | 1,633 | |||
Total consideration | 2,323,031 | |||
Less: Cash and cash equivalents(1) | (30,596 | ) | ||
Total consideration, net of cash and cash equivalents acquired | $ | 2,292,435 |
(1) | Includes cash and cash equivalents acquired attributable to continuing operations and discontinued operations. |
Final Acquisition Date Fair Values As Recast | ||||||||||
(in thousands) | Estimated Useful Life | Continuing Operations | Discontinued Operations | |||||||
Customer relationship assets | 10-17 years | $ | 810,000 | $ | \u2014 | |||||
Favorable operating leases | 1-19 years | 21,629 | \u2014 | |||||||
Leases in place | 1-8 years | 10,474 | \u2014 | |||||||
Tradenames | 2-9 years | 82,000 | 1,000 | |||||||
Pharmacy prescription files | 5-7 years | 32,900 | 13,000 | |||||||
Non-compete agreement | 2 years | 10,000 | \u2014 | |||||||
Unfavorable operating leases | 1-12 years | (21,754 | ) | \u2014 | ||||||
\u00a0\u00a0\u00a0\u00a0Total | $ | 945,249 | $ | 14,000 |
(unaudited, in thousands, except per share data) | August 3, 2019 As Recast (1) (53 weeks) | July 28, 2018 As Recast (2) (52 weeks) | ||||||
Net sales | $ | 25,639,516 | $ | 25,189,850 | ||||
Net (loss) income from continuing operations | $ | (225,544 | ) | $ | 48,394 | |||
Basic net (loss) income from continuing operations per share | $ | (4.40 | ) | $ | 0.96 | |||
Diluted net (loss) income from continuing operations per share | $ | (4.40 | ) | $ | 0.95 |
(1) | Includes 12 weeks of pro forma Supervalu results for the period ended September 8, 2018. |
(in thousands) | 2020 | 2019 | 2018 | |||||||||
2019 SUPERVALU INC. restructuring expenses | $ | 4,898 | $ | 74,414 | $ | \u2014 | ||||||
Integration and acquisition costs | 41,610 | 51,245 | 4,967 | |||||||||
Closed property charges and costs | 39,875 | 22,536 | \u2014 | |||||||||
2018 Earth Origins Market restructuring expenses and loss on sale | \u2014 | \u2014 | 4,771 | |||||||||
Total | $ | 86,383 | $ | 148,195 | $ | 9,738 |
(in thousands) | 2019 SUPERVALU INC. | 2018 Earth Origins Market | 2017 Cost Saving and Efficiency Initiatives | Total | ||||||||||||
Balances at July\u00a028, 2018 | $ | \u2014 | $ | 383 | $ | 701 | $ | 1,084 | ||||||||
\u00a0\u00a0\u00a0\u00a0Restructuring program charge(1) | 74,414 | \u2014 | \u2014 | 74,414 | ||||||||||||
\u00a0\u00a0\u00a0\u00a0Acquired restructuring liability | 12,573 | \u2014 | \u2014 | 12,573 | ||||||||||||
\u00a0\u00a0\u00a0\u00a0Cash payments | (75,130 | ) | \u2014 | (75,130 | ) | |||||||||||
Balances at August\u00a03, 2019 | 11,857 | 383 | 701 | 12,941 | ||||||||||||
\u00a0\u00a0\u00a0\u00a0Restructuring program charge | 4,898 | \u2014 | \u2014 | 4,898 | ||||||||||||
\u00a0\u00a0\u00a0\u00a0Cash payments | (13,217 | ) | (383 | ) | (701 | ) | (14,301 | ) | ||||||||
Balances at August\u00a01, 2020 | $ | 3,538 | $ | \u2014 | $ | \u2014 | $ | 3,538 | ||||||||
Cumulative program charges incurred from inception to date | $ | 79,312 | $ | 2,219 | $ | 6,864 | $ | 88,395 |
(in thousands) | 2020 | 2019 | 2018 | |||||||||
2019 SUPERVALU INC. restructuring expenses | $ | 4,898 | $ | 74,414 | $ | \u2014 | ||||||
Integration and acquisition costs | 41,610 | 51,245 | 4,967 | |||||||||
Closed property charges and costs | 39,875 | 22,536 | \u2014 | |||||||||
2018 Earth Origins Market restructuring expenses and loss on sale | \u2014 | \u2014 | 4,771 | |||||||||
Total | $ | 86,383 | $ | 148,195 | $ | 9,738 |
(in thousands) | 2019 SUPERVALU INC. | 2018 Earth Origins Market | 2017 Cost Saving and Efficiency Initiatives | Total | ||||||||||||
Balances at July\u00a028, 2018 | $ | \u2014 | $ | 383 | $ | 701 | $ | 1,084 | ||||||||
\u00a0\u00a0\u00a0\u00a0Restructuring program charge(1) | 74,414 | \u2014 | \u2014 | 74,414 | ||||||||||||
\u00a0\u00a0\u00a0\u00a0Acquired restructuring liability | 12,573 | \u2014 | \u2014 | 12,573 | ||||||||||||
\u00a0\u00a0\u00a0\u00a0Cash payments | (75,130 | ) | \u2014 | (75,130 | ) | |||||||||||
Balances at August\u00a03, 2019 | 11,857 | 383 | 701 | 12,941 | ||||||||||||
\u00a0\u00a0\u00a0\u00a0Restructuring program charge | 4,898 | \u2014 | \u2014 | 4,898 | ||||||||||||
\u00a0\u00a0\u00a0\u00a0Cash payments | (13,217 | ) | (383 | ) | (701 | ) | (14,301 | ) | ||||||||
Balances at August\u00a01, 2020 | $ | 3,538 | $ | \u2014 | $ | \u2014 | $ | 3,538 | ||||||||
Cumulative program charges incurred from inception to date | $ | 79,312 | $ | 2,219 | $ | 6,864 | $ | 88,395 |
(in thousands) | Original Estimated Useful Lives | 2020 | 2019 | |||||||
Land | \u00a0 | $ | 142,737 | $ | 177,970 | |||||
Buildings and improvements | 20-40 years | 970,528 | 1,081,887 | |||||||
Leasehold improvements | 5-20 years | 205,537 | 151,311 | |||||||
Equipment | 3-30 years | 878,483 | 768,800 | |||||||
Motor vehicles | 3-7 years | 74,395 | 76,186 | |||||||
Finance lease assets | 1-11 years | 161,395 | 114,107 | |||||||
Construction in progress | \u00a0 | 79,145 | 169,999 | |||||||
Property and equipment | \u00a0 | 2,512,220 | 2,540,260 | |||||||
Less accumulated depreciation and amortization | \u00a0 | 811,004 | 644,096 | |||||||
Property and equipment, net | \u00a0 | $ | 1,701,216 | $ | 1,896,164 |
(in thousands) | Original Estimated Useful Lives | 2020 | 2019 | |||||||
Land | \u00a0 | $ | 142,737 | $ | 177,970 | |||||
Buildings and improvements | 20-40 years | 970,528 | 1,081,887 | |||||||
Leasehold improvements | 5-20 years | 205,537 | 151,311 | |||||||
Equipment | 3-30 years | 878,483 | 768,800 | |||||||
Motor vehicles | 3-7 years | 74,395 | 76,186 | |||||||
Finance lease assets | 1-11 years | 161,395 | 114,107 | |||||||
Construction in progress | \u00a0 | 79,145 | 169,999 | |||||||
Property and equipment | \u00a0 | 2,512,220 | 2,540,260 | |||||||
Less accumulated depreciation and amortization | \u00a0 | 811,004 | 644,096 | |||||||
Property and equipment, net | \u00a0 | $ | 1,701,216 | $ | 1,896,164 |
(in thousands) | Wholesale | Other | Total | |||||||||
Goodwill as of July 28, 2018(1)(2) | $ | 352,342 | $ | 10,153 | $ | 362,495 | ||||||
Goodwill from current fiscal year business combinations | 374,757 | \u2014 | 374,757 | |||||||||
\u00a0\u00a0Impairment charge | (292,757 | ) | \u2014 | (292,757 | ) | |||||||
Other adjustments | (1,951 | ) | \u2014 | (1,951 | ) | |||||||
\u00a0\u00a0Change in foreign exchange rates | (288 | ) | \u2014 | (288 | ) | |||||||
Goodwill as of August 3, 2019(1)(2) | 432,103 | 10,153 | 442,256 | |||||||||
\u00a0\u00a0Goodwill adjustment from prior fiscal year business combinations | 1,424 | \u2014 | 1,424 | |||||||||
\u00a0\u00a0Impairment charge | (423,712 | ) | (293 | ) | (424,005 | ) | ||||||
\u00a0\u00a0Change in foreign exchange rates | (68 | ) | \u2014 | (68 | ) | |||||||
Goodwill as of August 1, 2020(1)(2) | $ | 9,747 | $ | 9,860 | $ | 19,607 |
(1) | Wholesale amounts are net of accumulated goodwill impairment charges of $0.0 million, $292.8 million and $716.5 million for fiscal 2018, 2019 and 2020, respectively. |
(2) | Other amounts are net of accumulated goodwill impairment charges of $9.3 million, $9.3 million and $9.6 million for fiscal 2018, 2019 and 2020, respectively. |
2020 | 2019 | ||||||||||||||||||||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||
Amortizing intangible assets: | |||||||||||||||||||||||
Customer relationships | $ | 1,007,118 | $ | 172,832 | $ | 834,286 | $ | 1,007,089 | $ | 111,940 | $ | 895,149 | |||||||||||
Pharmacy prescription files | 32,900 | 7,964 | 24,936 | 32,900 | \u2014 | 32,900 | |||||||||||||||||
Non-compete agreements | 12,900 | 11,500 | 1,400 | 12,900 | 6,237 | 6,663 | |||||||||||||||||
Operating lease intangibles | 8,193 | 4,020 | 4,173 | 32,103 | 2,321 | 29,782 | |||||||||||||||||
Trademarks and tradenames | 83,700 | 34,708 | 48,992 | 83,700 | 14,161 | 69,539 | |||||||||||||||||
Total amortizing intangible assets | 1,144,811 | 231,024 | 913,787 | 1,168,692 | 134,659 | 1,034,033 | |||||||||||||||||
Indefinite lived intangible assets: | |||||||||||||||||||||||
Trademarks and tradenames | 55,813 | \u2014 | 55,813 | 55,813 | \u2014 | 55,813 | |||||||||||||||||
Intangibles assets, net | $ | 1,200,624 | $ | 231,024 | $ | 969,600 | $ | 1,224,505 | $ | 134,659 | $ | 1,089,846 |
Fiscal Year: | (In thousands) | ||
2021 | $ | 78,185 | |
2022 | 72,170 | ||
2023 | 71,950 | ||
2024 | 72,417 | ||
2025 | 70,305 | ||
Thereafter | 548,760 | ||
$ | 913,787 |
(in thousands) | Wholesale | Other | Total | |||||||||
Goodwill as of July 28, 2018(1)(2) | $ | 352,342 | $ | 10,153 | $ | 362,495 | ||||||
Goodwill from current fiscal year business combinations | 374,757 | \u2014 | 374,757 | |||||||||
\u00a0\u00a0Impairment charge | (292,757 | ) | \u2014 | (292,757 | ) | |||||||
Other adjustments | (1,951 | ) | \u2014 | (1,951 | ) | |||||||
\u00a0\u00a0Change in foreign exchange rates | (288 | ) | \u2014 | (288 | ) | |||||||
Goodwill as of August 3, 2019(1)(2) | 432,103 | 10,153 | 442,256 | |||||||||
\u00a0\u00a0Goodwill adjustment from prior fiscal year business combinations | 1,424 | \u2014 | 1,424 | |||||||||
\u00a0\u00a0Impairment charge | (423,712 | ) | (293 | ) | (424,005 | ) | ||||||
\u00a0\u00a0Change in foreign exchange rates | (68 | ) | \u2014 | (68 | ) | |||||||
Goodwill as of August 1, 2020(1)(2) | $ | 9,747 | $ | 9,860 | $ | 19,607 |
(1) | Wholesale amounts are net of accumulated goodwill impairment charges of $0.0 million, $292.8 million and $716.5 million for fiscal 2018, 2019 and 2020, respectively. |
2020 | 2019 | ||||||||||||||||||||||
(in thousands) | Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||
Amortizing intangible assets: | |||||||||||||||||||||||
Customer relationships | $ | 1,007,118 | $ | 172,832 | $ | 834,286 | $ | 1,007,089 | $ | 111,940 | $ | 895,149 | |||||||||||
Pharmacy prescription files | 32,900 | 7,964 | 24,936 | 32,900 | \u2014 | 32,900 | |||||||||||||||||
Non-compete agreements | 12,900 | 11,500 | 1,400 | 12,900 | 6,237 | 6,663 | |||||||||||||||||
Operating lease intangibles | 8,193 | 4,020 | 4,173 | 32,103 | 2,321 | 29,782 | |||||||||||||||||
Trademarks and tradenames | 83,700 | 34,708 | 48,992 | 83,700 | 14,161 | 69,539 | |||||||||||||||||
Total amortizing intangible assets | 1,144,811 | 231,024 | 913,787 | 1,168,692 | 134,659 | 1,034,033 | |||||||||||||||||
Indefinite lived intangible assets: | |||||||||||||||||||||||
Trademarks and tradenames | 55,813 | \u2014 | 55,813 | 55,813 | \u2014 | 55,813 | |||||||||||||||||
Intangibles assets, net | $ | 1,200,624 | $ | 231,024 | $ | 969,600 | $ | 1,224,505 | $ | 134,659 | $ | 1,089,846 |
Fiscal Year: | (In thousands) | ||
2021 | $ | 78,185 | |
2022 | 72,170 | ||
2023 | 71,950 | ||
2024 | 72,417 | ||
2025 | 70,305 | ||
Thereafter | 548,760 | ||
$ | 913,787 |
Fair Value at August\u00a01, 2020 | ||||||||||||||
(In\u00a0thousands) | Consolidated Balance Sheets Location | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | ||||||||||||||
Foreign currency derivatives not designated as hedging instruments | Prepaid expenses and other current assets | $ | \u2014 | $ | 26 | $ | \u2014 | |||||||
Fuel derivatives designated as hedging instruments | Prepaid expenses and other current assets | $ | \u2014 | $ | 36 | $ | \u2014 | |||||||
Foreign currency derivatives designated as hedging instruments | Prepaid expenses and other current assets | $ | \u2014 | $ | 94 | $ | \u2014 | |||||||
Fuel derivatives designated as hedging instruments | Other assets | $ | \u2014 | $ | 23 | $ | \u2014 | |||||||
Mutual funds | Other assets | $ | 1,678 | $ | \u2014 | $ | \u2014 | |||||||
Liabilities: | ||||||||||||||
Fuel derivatives designated as hedging instruments | Accrued expenses and other current liabilities | $ | \u2014 | $ | 197 | $ | \u2014 | |||||||
Foreign currency derivatives designated as hedging instruments | Accrued expenses and other current liabilities | $ | \u2014 | $ | 357 | $ | \u2014 | |||||||
Interest rate swaps designated as hedging instruments | Accrued expenses and other current liabilities | $ | \u2014 | $ | 46,743 | $ | \u2014 | |||||||
Interest rate swaps designated as hedging instruments | Other long-term liabilities | $ | \u2014 | $ | 91,994 | $ | \u2014 |
Fair Value at August\u00a03, 2019 | ||||||||||||||
(In\u00a0thousands) | Consolidated Balance Sheets Location | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | ||||||||||||||
Interest rate swaps designated as hedging instruments | Prepaid expenses and other current assets | $ | \u2014 | $ | 389 | $ | \u2014 | |||||||
Mutual Funds | Prepaid expenses and other current assets | $ | 7 | $ | \u2014 | $ | \u2014 | |||||||
Interest rate swaps designated as hedging instruments | Other assets | $ | \u2014 | $ | 145 | $ | \u2014 | |||||||
Mutual Funds | Other assets | $ | 1,799 | $ | \u2014 | $ | \u2014 | |||||||
Liabilities: | ||||||||||||||
Interest rate swaps designated as hedging instruments | Accrued expenses and other current liabilities | $ | \u2014 | $ | 16,360 | $ | \u2014 | |||||||
Interest rate swaps designated as hedging instruments | Other long-term liabilities | $ | \u2014 | $ | 60,737 | $ | \u2014 |
\u00a0 | August\u00a01, 2020 | August\u00a03, 2019 | ||||||||||||||
(in thousands) | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Notes receivable, including current portion | $ | 77,598 | $ | 78,877 | $ | 46,320 | $ | 46,320 | ||||||||
Long-term debt, including current portion | $ | 2,497,626 | $ | 2,535,851 | $ | 2,906,483 | $ | 2,730,271 |
Fair Value at August\u00a01, 2020 | ||||||||||||||
(In\u00a0thousands) | Consolidated Balance Sheets Location | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | ||||||||||||||
Foreign currency derivatives not designated as hedging instruments | Prepaid expenses and other current assets | $ | \u2014 | $ | 26 | $ | \u2014 | |||||||
Fuel derivatives designated as hedging instruments | Prepaid expenses and other current assets | $ | \u2014 | $ | 36 | $ | \u2014 | |||||||
Foreign currency derivatives designated as hedging instruments | Prepaid expenses and other current assets | $ | \u2014 | $ | 94 | $ | \u2014 | |||||||
Fuel derivatives designated as hedging instruments | Other assets | $ | \u2014 | $ | 23 | $ | \u2014 | |||||||
Mutual funds | Other assets | $ | 1,678 | $ | \u2014 | $ | \u2014 | |||||||
Liabilities: | ||||||||||||||
Fuel derivatives designated as hedging instruments | Accrued expenses and other current liabilities | $ | \u2014 | $ | 197 | $ | \u2014 | |||||||
Foreign currency derivatives designated as hedging instruments | Accrued expenses and other current liabilities | $ | \u2014 | $ | 357 | $ | \u2014 | |||||||
Interest rate swaps designated as hedging instruments | Accrued expenses and other current liabilities | $ | \u2014 | $ | 46,743 | $ | \u2014 | |||||||
Interest rate swaps designated as hedging instruments | Other long-term liabilities | $ | \u2014 | $ | 91,994 | $ | \u2014 |
Fair Value at August\u00a03, 2019 | ||||||||||||||
(In\u00a0thousands) | Consolidated Balance Sheets Location | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | ||||||||||||||
Interest rate swaps designated as hedging instruments | Prepaid expenses and other current assets | $ | \u2014 | $ | 389 | $ | \u2014 | |||||||
Mutual Funds | Prepaid expenses and other current assets | $ | 7 | $ | \u2014 | $ | \u2014 | |||||||
Interest rate swaps designated as hedging instruments | Other assets | $ | \u2014 | $ | 145 | $ | \u2014 | |||||||
Mutual Funds | Other assets | $ | 1,799 | $ | \u2014 | $ | \u2014 | |||||||
Liabilities: | ||||||||||||||
Interest rate swaps designated as hedging instruments | Accrued expenses and other current liabilities | $ | \u2014 | $ | 16,360 | $ | \u2014 | |||||||
Interest rate swaps designated as hedging instruments | Other long-term liabilities | $ | \u2014 | $ | 60,737 | $ | \u2014 |
\u00a0 | August\u00a01, 2020 | August\u00a03, 2019 | ||||||||||||||
(in thousands) | Carrying Value | Fair Value | Carrying Value | Fair Value | ||||||||||||
Notes receivable, including current portion | $ | 77,598 | $ | 78,877 | $ | 46,320 | $ | 46,320 | ||||||||
Long-term debt, including current portion | $ | 2,497,626 | $ | 2,535,851 | $ | 2,906,483 | $ | 2,730,271 |
Effective Date | Swap Maturity | Outstanding Notional Value (in millions) | Pay Fixed Rate | Receive Floating Rate(7) | Floating Rate Reset Terms | |||||||
October\u00a026, 2018 | October\u00a031, 2020 | $ | 100.0 | 2.8240 | % | One-Month LIBOR | Monthly | |||||
June\u00a09, 2016 | April\u00a029, 2021 | 25.0 | 1.0650 | % | One-Month LIBOR | Monthly | ||||||
June\u00a024, 2016 | April\u00a029, 2021 | 25.0 | 0.9260 | % | One-Month LIBOR | Monthly | ||||||
January\u00a023, 2019 | April\u00a029, 2021 | 50.0 | 2.5500 | % | One-Month LIBOR | Monthly | ||||||
April\u00a02, 2019 | June\u00a030, 2021 | 100.0 | 2.2520 | % | One-Month LIBOR | Monthly | ||||||
June\u00a010, 2019 | June\u00a030, 2021 | 50.0 | 2.2290 | % | One-Month LIBOR | Monthly | ||||||
November\u00a030, 2018 | October\u00a029, 2021 | 100.0 | 2.8084 | % | One-Month LIBOR | Monthly | ||||||
March\u00a021, 2019 | April\u00a015, 2022 | 100.0 | 2.3645 | % | One-Month LIBOR | Monthly | ||||||
April\u00a02, 2019 | June\u00a030, 2022 | 100.0 | 2.2170 | % | One-Month LIBOR | Monthly | ||||||
June\u00a028, 2019 | June\u00a030, 2022 | 50.0 | 2.1840 | % | One-Month LIBOR | Monthly | ||||||
August 3, 2015(1) | August\u00a015, 2022 | 55.5 | 1.7950 | % | One-Month LIBOR | Monthly | ||||||
August 3, 2015(2) | August\u00a015, 2022 | 37.0 | 1.7950 | % | One-Month LIBOR | Monthly | ||||||
October\u00a026, 2018 | October\u00a031, 2022 | 100.0 | 2.8915 | % | One-Month LIBOR | Monthly | ||||||
January\u00a011, 2019 | October\u00a031, 2022 | 50.0 | 2.4678 | % | One-Month LIBOR | Monthly | ||||||
January\u00a023, 2019 | October\u00a031, 2022 | 50.0 | 2.5255 | % | One-Month LIBOR | Monthly | ||||||
October 30, 2020(3) | October\u00a031, 2022 | \u2014 | 0.4540 | % | One-Month LIBOR | Monthly | ||||||
November\u00a016, 2018 | March\u00a031, 2023 | 150.0 | 2.8950 | % | One-Month LIBOR | Monthly | ||||||
January\u00a023, 2019 | March\u00a031, 2023 | 50.0 | 2.5292 | % | One-Month LIBOR | Monthly | ||||||
April 29, 2021(4) | April\u00a028, 2023 | \u2014 | 0.5680 | % | One-Month LIBOR | Monthly | ||||||
June 30, 2021(5) | June\u00a030, 2023 | \u2014 | 0.6070 | % | One-Month LIBOR | Monthly | ||||||
November\u00a030, 2018 | September\u00a030, 2023 | 50.0 | 2.8315 | % | One-Month LIBOR | Monthly | ||||||
October 29, 2021(6) | October\u00a020, 2023 | \u2014 | 0.6810 | % | One-Month LIBOR | Monthly | ||||||
October\u00a026, 2018 | October\u00a031, 2023 | 100.0 | 2.9210 | % | One-Month LIBOR | Monthly | ||||||
January\u00a011, 2019 | March\u00a028, 2024 | 100.0 | 2.4770 | % | One-Month LIBOR | Monthly | ||||||
January\u00a023, 2019 | March\u00a028, 2024 | 100.0 | 2.5420 | % | One-Month LIBOR | Monthly | ||||||
November\u00a030, 2018 | October\u00a031, 2024 | 100.0 | 2.8480 | % | One-Month LIBOR | Monthly | ||||||
January\u00a011, 2019 | October\u00a031, 2024 | 100.0 | 2.5010 | % | One-Month LIBOR | Monthly | ||||||
January\u00a024, 2019 | October\u00a031, 2024 | 50.0 | 2.5210 | % | One-Month LIBOR | Monthly | ||||||
October\u00a026, 2018 | October\u00a022, 2025 | 50.0 | 2.9550 | % | One-Month LIBOR | Monthly | ||||||
November\u00a016, 2018 | October\u00a022, 2025 | 50.0 | 2.9580 | % | One-Month LIBOR | Monthly | ||||||
November\u00a016, 2018 | October\u00a022, 2025 | 50.0 | 2.9590 | % | One-Month LIBOR | Monthly | ||||||
January\u00a024, 2019 | October\u00a022, 2025 | 50.0 | 2.5558 | % | One-Month LIBOR | Monthly | ||||||
$ | 1,992.5 |
(1) | On March 31, 2015, the Company amended the original contract to reduce the beginning notional principal amount from $140 million to $84 million. The swap contract has an amortizing notional principal amount which is reduced by $1.5 million on a quarterly basis. |
(2) | The swap contract has an amortizing notional principal amount which is reduced by $1.0 million on a quarterly basis. |
(3) | This forward starting swap contract has a notional principal amount of $100.0 million. |
(4) | This forward starting swap contract has a notional principal amount of $100.0 million. |
(5) | This forward starting swap contract has a notional principal amount of $150.0 million. |
(6) | This forward starting swap contract has a notional principal amount of $100.0 million. |
(7) | For these swap contracts that are indexed to LIBOR, the Company is monitoring and evaluating risks related to the expected future cessation of LIBOR. |
Interest Expense, net | ||||||||||||
(In\u00a0thousands) | 2020 | 2019 | 2018 | |||||||||
Total amounts of expense line items presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded | $ | 191,607 | $ | 180,789 | $ | 16,025 | ||||||
(Loss) or gain on cash flow hedging relationships: | ||||||||||||
(Loss) or gain reclassified from comprehensive income into income | $ | (24,505 | ) | $ | 13 | $ | 827 | |||||
Gain or (loss) on interest rate swap contracts not designated as hedging instruments: | ||||||||||||
Gain or (loss) recognized as interest expense | $ | \u2014 | $ | 51 | $ | \u2014 |
Effective Date | Swap Maturity | Outstanding Notional Value (in millions) | Pay Fixed Rate | Receive Floating Rate(7) | Floating Rate Reset Terms | |||||||
October\u00a026, 2018 | October\u00a031, 2020 | $ | 100.0 | 2.8240 | % | One-Month LIBOR | Monthly | |||||
June\u00a09, 2016 | April\u00a029, 2021 | 25.0 | 1.0650 | % | One-Month LIBOR | Monthly | ||||||
June\u00a024, 2016 | April\u00a029, 2021 | 25.0 | 0.9260 | % | One-Month LIBOR | Monthly | ||||||
January\u00a023, 2019 | April\u00a029, 2021 | 50.0 | 2.5500 | % | One-Month LIBOR | Monthly | ||||||
April\u00a02, 2019 | June\u00a030, 2021 | 100.0 | 2.2520 | % | One-Month LIBOR | Monthly | ||||||
June\u00a010, 2019 | June\u00a030, 2021 | 50.0 | 2.2290 | % | One-Month LIBOR | Monthly | ||||||
November\u00a030, 2018 | October\u00a029, 2021 | 100.0 | 2.8084 | % | One-Month LIBOR | Monthly | ||||||
March\u00a021, 2019 | April\u00a015, 2022 | 100.0 | 2.3645 | % | One-Month LIBOR | Monthly | ||||||
April\u00a02, 2019 | June\u00a030, 2022 | 100.0 | 2.2170 | % | One-Month LIBOR | Monthly | ||||||
June\u00a028, 2019 | June\u00a030, 2022 | 50.0 | 2.1840 | % | One-Month LIBOR | Monthly | ||||||
August 3, 2015(1) | August\u00a015, 2022 | 55.5 | 1.7950 | % | One-Month LIBOR | Monthly | ||||||
August 3, 2015(2) | August\u00a015, 2022 | 37.0 | 1.7950 | % | One-Month LIBOR | Monthly | ||||||
October\u00a026, 2018 | October\u00a031, 2022 | 100.0 | 2.8915 | % | One-Month LIBOR | Monthly | ||||||
January\u00a011, 2019 | October\u00a031, 2022 | 50.0 | 2.4678 | % | One-Month LIBOR | Monthly | ||||||
January\u00a023, 2019 | October\u00a031, 2022 | 50.0 | 2.5255 | % | One-Month LIBOR | Monthly | ||||||
October 30, 2020(3) | October\u00a031, 2022 | \u2014 | 0.4540 | % | One-Month LIBOR | Monthly | ||||||
November\u00a016, 2018 | March\u00a031, 2023 | 150.0 | 2.8950 | % | One-Month LIBOR | Monthly | ||||||
January\u00a023, 2019 | March\u00a031, 2023 | 50.0 | 2.5292 | % | One-Month LIBOR | Monthly | ||||||
April 29, 2021(4) | April\u00a028, 2023 | \u2014 | 0.5680 | % | One-Month LIBOR | Monthly | ||||||
June 30, 2021(5) | June\u00a030, 2023 | \u2014 | 0.6070 | % | One-Month LIBOR | Monthly | ||||||
November\u00a030, 2018 | September\u00a030, 2023 | 50.0 | 2.8315 | % | One-Month LIBOR | Monthly | ||||||
October 29, 2021(6) | October\u00a020, 2023 | \u2014 | 0.6810 | % | One-Month LIBOR | Monthly | ||||||
October\u00a026, 2018 | October\u00a031, 2023 | 100.0 | 2.9210 | % | One-Month LIBOR | Monthly | ||||||
January\u00a011, 2019 | March\u00a028, 2024 | 100.0 | 2.4770 | % | One-Month LIBOR | Monthly | ||||||
January\u00a023, 2019 | March\u00a028, 2024 | 100.0 | 2.5420 | % | One-Month LIBOR | Monthly | ||||||
November\u00a030, 2018 | October\u00a031, 2024 | 100.0 | 2.8480 | % | One-Month LIBOR | Monthly | ||||||
January\u00a011, 2019 | October\u00a031, 2024 | 100.0 | 2.5010 | % | One-Month LIBOR | Monthly | ||||||
January\u00a024, 2019 | October\u00a031, 2024 | 50.0 | 2.5210 | % | One-Month LIBOR | Monthly | ||||||
October\u00a026, 2018 | October\u00a022, 2025 | 50.0 | 2.9550 | % | One-Month LIBOR | Monthly | ||||||
November\u00a016, 2018 | October\u00a022, 2025 | 50.0 | 2.9580 | % | One-Month LIBOR | Monthly | ||||||
November\u00a016, 2018 | October\u00a022, 2025 | 50.0 | 2.9590 | % | One-Month LIBOR | Monthly | ||||||
January\u00a024, 2019 | October\u00a022, 2025 | 50.0 | 2.5558 | % | One-Month LIBOR | Monthly | ||||||
$ | 1,992.5 |
(1) | On March 31, 2015, the Company amended the original contract to reduce the beginning notional principal amount from $140 million to $84 million. The swap contract has an amortizing notional principal amount which is reduced by $1.5 million on a quarterly basis. |
(2) | The swap contract has an amortizing notional principal amount which is reduced by $1.0 million on a quarterly basis. |
(3) | This forward starting swap contract has a notional principal amount of $100.0 million. |
(4) | This forward starting swap contract has a notional principal amount of $100.0 million. |
(5) | This forward starting swap contract has a notional principal amount of $150.0 million. |
(6) | This forward starting swap contract has a notional principal amount of $100.0 million. |
Interest Expense, net | ||||||||||||
(In\u00a0thousands) | 2020 | 2019 | 2018 | |||||||||
Total amounts of expense line items presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded | $ | 191,607 | $ | 180,789 | $ | 16,025 | ||||||
(Loss) or gain on cash flow hedging relationships: | ||||||||||||
(Loss) or gain reclassified from comprehensive income into income | $ | (24,505 | ) | $ | 13 | $ | 827 | |||||
Gain or (loss) on interest rate swap contracts not designated as hedging instruments: | ||||||||||||
Gain or (loss) recognized as interest expense | $ | \u2014 | $ | 51 | $ | \u2014 |
(in thousands) | Average Interest Rate at August 1, 2020 | Fiscal Maturity Year | August\u00a01, 2020 | August\u00a03, 2019 | |||||||
Term Loan Facility | 4.41% | 2026 | $ | 1,773,000 | $ | 1,864,900 | |||||
ABL Credit Facility | 1.58% | 2024 | 756,712 | 1,080,000 | |||||||
Other secured loans | 5.19% | 2024-2025 | 49,268 | 57,649 | |||||||
Debt issuance costs, net | (45,846 | ) | (54,891 | ) | |||||||
Original issue discount on debt | (35,508 | ) | (41,175 | ) | |||||||
Long-term debt, including current portion | 2,497,626 | 2,906,483 | |||||||||
Less: current portion of long-term debt | (70,632 | ) | (87,433 | ) | |||||||
Long-term debt | $ | 2,426,994 | $ | 2,819,050 |
Fiscal Year | (In thousands) | |||
2021 | $ | 84,773 | ||
2022 | 13,465 | |||
2023 | 14,196 | |||
2024 | 764,669 | |||
2025 | 18,877 | |||
2026 and thereafter | 1,683,000 | |||
$ | 2,578,980 |
Assets securing the ABL Credit Facility (in thousands)(1): | August\u00a01, 2020 | ||
Certain inventory assets included in Inventories and Current assets of discontinued operations | $ | 2,270,892 | |
Certain receivables included in Accounts receivable, net and Current assets of discontinued operations | $ | 1,077,682 |
(1) | The ABL Credit Facility is also secured by all of the Company\u2019s pharmacy scripts, which are included in Intangible assets, net in the Consolidated Balance Sheets as of August\u00a01, 2020. |
Unused available credit and fees under the ABL Credit Facility (in thousands, except percentages): | August\u00a01, 2020 | ||
Outstanding letters of credit | $ | 95,906 | |
Letter of credit fees | 1.375 | % | |
Unused available credit | $ | 1,234,758 | |
Unused facility fees | 0.25 | % |
(in thousands) | Average Interest Rate at August 1, 2020 | Fiscal Maturity Year | August\u00a01, 2020 | August\u00a03, 2019 | |||||||
Term Loan Facility | 4.41% | 2026 | $ | 1,773,000 | $ | 1,864,900 | |||||
ABL Credit Facility | 1.58% | 2024 | 756,712 | 1,080,000 | |||||||
Other secured loans | 5.19% | 2024-2025 | 49,268 | 57,649 | |||||||
Debt issuance costs, net | (45,846 | ) | (54,891 | ) | |||||||
Original issue discount on debt | (35,508 | ) | (41,175 | ) | |||||||
Long-term debt, including current portion | 2,497,626 | 2,906,483 | |||||||||
Less: current portion of long-term debt | (70,632 | ) | (87,433 | ) | |||||||
Long-term debt | $ | 2,426,994 | $ | 2,819,050 |
Fiscal Year | (In thousands) | |||
2021 | $ | 84,773 | ||
2022 | 13,465 | |||
2023 | 14,196 | |||
2024 | 764,669 | |||
2025 | 18,877 | |||
2026 and thereafter | 1,683,000 | |||
$ | 2,578,980 |
Assets securing the ABL Credit Facility (in thousands)(1): | August\u00a01, 2020 | ||
Certain inventory assets included in Inventories and Current assets of discontinued operations | $ | 2,270,892 | |
Certain receivables included in Accounts receivable, net and Current assets of discontinued operations | $ | 1,077,682 |
(1) | The ABL Credit Facility is also secured by all of the Company\u2019s pharmacy scripts, which are included in Intangible assets, net in the Consolidated Balance Sheets as of August\u00a01, 2020. |
Unused available credit and fees under the ABL Credit Facility (in thousands, except percentages): | August\u00a01, 2020 | ||
Outstanding letters of credit | $ | 95,906 | |
Letter of credit fees | 1.375 | % | |
Unused available credit | $ | 1,234,758 | |
Unused facility fees | 0.25 | % |
(in thousands) | Other Cash Flow Derivatives | Benefit Plans | Foreign Currency | Swap Agreements | Total | ||||||||||||||
Accumulated other comprehensive (loss) income at July 29, 2017 | $ | \u2014 | $ | \u2014 | $ | (15,262 | ) | $ | 1,299 | $ | (13,963 | ) | |||||||
Other comprehensive (loss) income before reclassifications | \u2014 | \u2014 | (3,791 | ) | 4,219 | 428 | |||||||||||||
Amortization of cash flow hedge | \u2014 | \u2014 | \u2014 | (644 | ) | (644 | ) | ||||||||||||
Net current period Other comprehensive (loss) income | \u2014 | \u2014 | (3,791 | ) | 3,575 | (216 | ) | ||||||||||||
Accumulated other comprehensive (loss) income at July 28, 2018 | $ | \u2014 | $ | \u2014 | $ | (19,053 | ) | $ | 4,874 | $ | (14,179 | ) | |||||||
Other comprehensive loss before reclassifications | \u2014 | (32,458 | ) | (1,029 | ) | (61,277 | ) | (94,764 | ) | ||||||||||
Amortization of cash flow hedge | \u2014 | \u2014 | \u2014 | (10 | ) | (10 | ) | ||||||||||||
Net current period Other comprehensive loss | \u2014 | (32,458 | ) | (1,029 | ) | (61,287 | ) | (94,774 | ) | ||||||||||
Accumulated other comprehensive loss at August 3, 2019 | $ | \u2014 | $ | (32,458 | ) | $ | (20,082 | ) | $ | (56,413 | ) | $ | (108,953 | ) | |||||
Other comprehensive loss before reclassifications | (88 | ) | (89,152 | ) | (1,337 | ) | (62,679 | ) | (153,256 | ) | |||||||||
Amortization of amounts included in net periodic benefit income | \u2014 | (2,296 | ) | \u2014 | \u2014 | (2,296 | ) | ||||||||||||
Amortization of cash flow hedges | 21 | \u2014 | \u2014 | 17,928 | 17,949 | ||||||||||||||
Pension settlement charge | \u2014 | 8,610 | \u2014 | \u2014 | 8,610 | ||||||||||||||
Net current period Other comprehensive loss | (67 | ) | (82,838 | ) | (1,337 | ) | (44,751 | ) | (128,993 | ) | |||||||||
Accumulated other comprehensive loss at August 1, 2020 | $ | (67 | ) | $ | (115,296 | ) | $ | (21,419 | ) | $ | (101,164 | ) | $ | (237,946 | ) |
(in thousands) | 2020 | 2019 | 2018 | Affected Line Item on the Consolidated Statements of Operations | ||||||||||
Pension and postretirement benefit plan obligations: | ||||||||||||||
Amortization of amounts included in net periodic benefit income(1) | $ | (3,107 | ) | $ | \u2014 | $ | \u2014 | Net periodic benefit income, excluding service cost | ||||||
Pension settlement charges | 11,303 | \u2014 | \u2014 | Net periodic benefit income, excluding service cost | ||||||||||
Total reclassifications | 8,196 | \u2014 | \u2014 | |||||||||||
Income tax benefit | 1,882 | \u2014 | \u2014 | (Benefit) provision for income taxes | ||||||||||
Total reclassifications, net of tax | $ | 6,314 | $ | \u2014 | $ | \u2014 | ||||||||
Swap agreements: | ||||||||||||||
Reclassification of cash flow hedge | $ | 24,505 | $ | (13 | ) | $ | (827 | ) | Interest expense, net | |||||
Income tax benefit (expense) | 6,577 | (3 | ) | (183 | ) | (Benefit) provision for income taxes | ||||||||
Total reclassifications, net of tax | $ | 17,928 | $ | (10 | ) | $ | (644 | ) | ||||||
Other cash flow hedges: | ||||||||||||||
Reclassification of cash flow hedge | $ | 29 | $ | \u2014 | $ | \u2014 | Cost of sales | |||||||
Income tax benefit | 8 | \u2014 | \u2014 | (Benefit) provision for income taxes | ||||||||||
Total reclassifications, net of tax | $ | 21 | $ | \u2014 | $ | \u2014 |
(1) | Amortization of amounts included in net periodic benefit income include amortization of prior service benefit and amortization of net actuarial loss as reflected in Note 14\u2014Benefit Plans. |
(in thousands) | Other Cash Flow Derivatives | Benefit Plans | Foreign Currency | Swap Agreements | Total | ||||||||||||||
Accumulated other comprehensive (loss) income at July 29, 2017 | $ | \u2014 | $ | \u2014 | $ | (15,262 | ) | $ | 1,299 | $ | (13,963 | ) | |||||||
Other comprehensive (loss) income before reclassifications | \u2014 | \u2014 | (3,791 | ) | 4,219 | 428 | |||||||||||||
Amortization of cash flow hedge | \u2014 | \u2014 | \u2014 | (644 | ) | (644 | ) | ||||||||||||
Net current period Other comprehensive (loss) income | \u2014 | \u2014 | (3,791 | ) | 3,575 | (216 | ) | ||||||||||||
Accumulated other comprehensive (loss) income at July 28, 2018 | $ | \u2014 | $ | \u2014 | $ | (19,053 | ) | $ | 4,874 | $ | (14,179 | ) | |||||||
Other comprehensive loss before reclassifications | \u2014 | (32,458 | ) | (1,029 | ) | (61,277 | ) | (94,764 | ) | ||||||||||
Amortization of cash flow hedge | \u2014 | \u2014 | \u2014 | (10 | ) | (10 | ) | ||||||||||||
Net current period Other comprehensive loss | \u2014 | (32,458 | ) | (1,029 | ) | (61,287 | ) | (94,774 | ) | ||||||||||
Accumulated other comprehensive loss at August 3, 2019 | $ | \u2014 | $ | (32,458 | ) | $ | (20,082 | ) | $ | (56,413 | ) | $ | (108,953 | ) | |||||
Other comprehensive loss before reclassifications | (88 | ) | (89,152 | ) | (1,337 | ) | (62,679 | ) | (153,256 | ) | |||||||||
Amortization of amounts included in net periodic benefit income | \u2014 | (2,296 | ) | \u2014 | \u2014 | (2,296 | ) | ||||||||||||
Amortization of cash flow hedges | 21 | \u2014 | \u2014 | 17,928 | 17,949 | ||||||||||||||
Pension settlement charge | \u2014 | 8,610 | \u2014 | \u2014 | 8,610 | ||||||||||||||
Net current period Other comprehensive loss | (67 | ) | (82,838 | ) | (1,337 | ) | (44,751 | ) | (128,993 | ) | |||||||||
Accumulated other comprehensive loss at August 1, 2020 | $ | (67 | ) | $ | (115,296 | ) | $ | (21,419 | ) | $ | (101,164 | ) | $ | (237,946 | ) |
(in thousands) | 2020 | 2019 | 2018 | Affected Line Item on the Consolidated Statements of Operations | ||||||||||
Pension and postretirement benefit plan obligations: | ||||||||||||||
Amortization of amounts included in net periodic benefit income(1) | $ | (3,107 | ) | $ | \u2014 | $ | \u2014 | Net periodic benefit income, excluding service cost | ||||||
Pension settlement charges | 11,303 | \u2014 | \u2014 | Net periodic benefit income, excluding service cost | ||||||||||
Total reclassifications | 8,196 | \u2014 | \u2014 | |||||||||||
Income tax benefit | 1,882 | \u2014 | \u2014 | (Benefit) provision for income taxes | ||||||||||
Total reclassifications, net of tax | $ | 6,314 | $ | \u2014 | $ | \u2014 | ||||||||
Swap agreements: | ||||||||||||||
Reclassification of cash flow hedge | $ | 24,505 | $ | (13 | ) | $ | (827 | ) | Interest expense, net | |||||
Income tax benefit (expense) | 6,577 | (3 | ) | (183 | ) | (Benefit) provision for income taxes | ||||||||
Total reclassifications, net of tax | $ | 17,928 | $ | (10 | ) | $ | (644 | ) | ||||||
Other cash flow hedges: | ||||||||||||||
Reclassification of cash flow hedge | $ | 29 | $ | \u2014 | $ | \u2014 | Cost of sales | |||||||
Income tax benefit | 8 | \u2014 | \u2014 | (Benefit) provision for income taxes | ||||||||||
Total reclassifications, net of tax | $ | 21 | $ | \u2014 | $ | \u2014 |
Lease Type | Consolidated Balance Sheets Location | August\u00a01, 2020 | ||||
Operating lease assets | Operating lease assets | $ | 982,808 | |||
Finance lease assets | Property and equipment, net | 129,517 | ||||
Total lease assets | $ | 1,112,325 | ||||
Operating liabilities | Current portion of operating lease liabilities | $ | 131,022 | |||
Finance liabilities | Current portion of long-term debt and finance lease liabilities | 12,746 | ||||
Operating liabilities | Long-term operating lease liabilities | 873,990 | ||||
Finance liabilities | Long-term finance lease liabilities | 143,303 | ||||
Total lease liabilities | $ | 1,161,061 |
(in thousands) | Consolidated Statements of Operations Location | August\u00a01, 2020 | ||||
Operating lease cost | Operating expenses | $ | 223,016 | |||
Short-term lease cost | Operating expenses | 30,992 | ||||
Variable lease cost | Operating expenses | 151,065 | ||||
Sublease income | Operating expenses | (3,504 | ) | |||
Sublease income | Net sales | (22,543 | ) | |||
Other sublease income, net | Restructuring, acquisition and integration related expenses(2) | (5,075 | ) | |||
Net operating lease cost(1) | 373,951 | |||||
Amortization of leased assets | Operating expenses | 16,052 | ||||
Interest on lease liabilities | Interest expense, net | 11,617 | ||||
Finance lease cost | 27,669 | |||||
Total net lease cost | $ | 401,620 |
(1) | Rent expense as presented here includes $6.8 million in fiscal 2020 of operating lease rent expense related to stores within discontinued operations, but for which GAAP requires the expense to be included within continuing operations, as the Company expects to remain primarily obligated under these leases. Rent expense as presented here also includes immaterial amounts of variable lease expense of discontinued operations. |
(2) | Includes $35.5 million of lease expense and $(40.6) million of lease income that is recorded within Restructuring, acquisition and integration related expenses for assigned leases related to previously sold locations and surplus, non-operating properties for which the Company is restructuring its obligations. |
(in thousands) | 2019 | 2018 | |||||
Rent expense(1) | $ | 211,807 | $ | 88,697 | |||
Less subtenant rentals recorded in Net sales | (17,475 | ) | \u2014 | ||||
Less subtenant rentals recorded in Operating expenses | (13,683 | ) | (1,649 | ) | |||
Total net rent expense | $ | 180,649 | $ | 87,048 |
(1) | Rent expense as presented here includes $9.5 million and $0.0 million in fiscal 2019 and 2018, respectively, of operating lease rent expense related to stores within discontinued operations, but for which GAAP requires the expense to be included within continuing operations, as we expect to remain primarily obligated under these leases. |
Lease Liabilities | Lease Receipts | Net Lease Obligations | ||||||||||||||||||||||
Fiscal Year | Operating Leases(1) | Finance Leases(2) | Operating Leases | Finance Leases | Operating Leases | Finance Leases | ||||||||||||||||||
2021 | $ | 226,081 | $ | 23,801 | $ | (51,750 | ) | $ | \u2014 | $ | 174,331 | $ | 23,801 | |||||||||||
2022 | 217,353 | 118,812 | (46,642 | ) | \u2014 | 170,711 | 118,812 | |||||||||||||||||
2023 | 184,360 | 14,717 | (36,361 | ) | \u2014 | 147,999 | 14,717 | |||||||||||||||||
2024 | 157,528 | 13,602 | (28,347 | ) | \u2014 | 129,181 | 13,602 | |||||||||||||||||
2025 | 114,577 | 9,316 | (18,155 | ) | \u2014 | 96,422 | 9,316 | |||||||||||||||||
Thereafter | 868,870 | 6,239 | (45,093 | ) | \u2014 | 823,777 | 6,239 | |||||||||||||||||
Total undiscounted lease liabilities and receipts | $ | 1,768,769 | $ | 186,487 | $ | (226,348 | ) | $ | \u2014 | $ | 1,542,421 | $ | 186,487 | |||||||||||
Less interest(3) | (763,757 | ) | (30,438 | ) | ||||||||||||||||||||
Present value of lease liabilities | 1,005,012 | 156,049 | ||||||||||||||||||||||
Less current lease liabilities | (131,022 | ) | (12,746 | ) | ||||||||||||||||||||
Long-term lease liabilities | $ | 873,990 | $ | 143,303 |
(1) | Operating lease payments include $11.4 million related to extension options that are reasonably certain of being exercised and exclude $23.0 million of legally binding minimum lease payments for leases signed but not yet commenced. |
(2) | Finance lease payments include $0.0 million related to extension options that are reasonably certain of being exercised and exclude $0.4 million of legally binding minimum lease payments for leases signed but not yet commenced. This table excludes a $59.5 million payment related to a facility the Company is deemed the accounting owner, which is recognized as a residual obligation, and is subject to an underlying lease. |
(3) | Calculated using the interest rate for each lease. |
Lease Obligations | Lease Receipts | Net Lease Obligations | ||||||||||||||||||||||
Fiscal Year | Operating Leases | Capital Leases | Operating Leases | Capital Leases | Operating Leases | Capital Leases | ||||||||||||||||||
2020 | $ | 223,612 | $ | 41,550 | $ | (55,922 | ) | $ | (319 | ) | $ | 167,690 | $ | 41,231 | ||||||||||
2021 | 190,845 | 32,804 | (41,425 | ) | \u2014 | 149,420 | 32,804 | |||||||||||||||||
2022 | 179,326 | 29,869 | (35,998 | ) | \u2014 | 143,328 | 29,869 | |||||||||||||||||
2023 | 154,812 | 26,699 | (25,591 | ) | \u2014 | 129,221 | 26,699 | |||||||||||||||||
2024 | 135,795 | 23,095 | (18,183 | ) | \u2014 | 117,612 | 23,095 | |||||||||||||||||
Thereafter | 1,063,674 | 46,999 | (59,186 | ) | \u2014 | 1,004,488 | 46,999 | |||||||||||||||||
Total future minimum obligations (receipts) | $ | 1,948,064 | $ | 201,016 | $ | (236,305 | ) | $ | (319 | ) | $ | 1,711,759 | $ | 200,697 | ||||||||||
Less interest | (68,138 | ) | ||||||||||||||||||||||
Present value of capital lease obligations | 132,878 | |||||||||||||||||||||||
Less current capital lease obligations | (24,670 | ) | ||||||||||||||||||||||
Long-term capital lease obligations | $ | 108,208 |
Lease Term and Discount Rate | August\u00a01, 2020 | ||
Weighted-average remaining lease term (years) | |||
Operating leases | 10.4 years | ||
Finance leases | 3.1 years | ||
Weighted-average discount rate | |||
Operating leases | 10.6 | % | |
Finance leases | 8.8 | % |
Other Information | ||||
(in thousands) | 2020 | |||
Cash paid for amounts included in the measurement of lease liabilities | ||||
Operating cash flows from operating leases | $ | 231,272 | ||
Operating cash flows from finance leases | 9,334 | |||
Financing cash flows from finance leases | 19,972 | |||
Leased assets obtained in exchange for new finance lease liabilities | 93,060 | |||
Leased assets obtained in exchange for new operating lease liabilities | 195,087 |
Lease Type | Consolidated Balance Sheets Location | August\u00a01, 2020 | ||||
Operating lease assets | Operating lease assets | $ | 982,808 | |||
Finance lease assets | Property and equipment, net | 129,517 | ||||
Total lease assets | $ | 1,112,325 | ||||
Operating liabilities | Current portion of operating lease liabilities | $ | 131,022 | |||
Finance liabilities | Current portion of long-term debt and finance lease liabilities | 12,746 | ||||
Operating liabilities | Long-term operating lease liabilities | 873,990 | ||||
Finance liabilities | Long-term finance lease liabilities | 143,303 | ||||
Total lease liabilities | $ | 1,161,061 |
(in thousands) | 2019 | 2018 | |||||
Rent expense(1) | $ | 211,807 | $ | 88,697 | |||
Less subtenant rentals recorded in Net sales | (17,475 | ) | \u2014 | ||||
Less subtenant rentals recorded in Operating expenses | (13,683 | ) | (1,649 | ) | |||
Total net rent expense | $ | 180,649 | $ | 87,048 |
Lease Liabilities | Lease Receipts | Net Lease Obligations | ||||||||||||||||||||||
Fiscal Year | Operating Leases(1) | Finance Leases(2) | Operating Leases | Finance Leases | Operating Leases | Finance Leases | ||||||||||||||||||
2021 | $ | 226,081 | $ | 23,801 | $ | (51,750 | ) | $ | \u2014 | $ | 174,331 | $ | 23,801 | |||||||||||
2022 | 217,353 | 118,812 | (46,642 | ) | \u2014 | 170,711 | 118,812 | |||||||||||||||||
2023 | 184,360 | 14,717 | (36,361 | ) | \u2014 | 147,999 | 14,717 | |||||||||||||||||
2024 | 157,528 | 13,602 | (28,347 | ) | \u2014 | 129,181 | 13,602 | |||||||||||||||||
2025 | 114,577 | 9,316 | (18,155 | ) | \u2014 | 96,422 | 9,316 | |||||||||||||||||
Thereafter | 868,870 | 6,239 | (45,093 | ) | \u2014 | 823,777 | 6,239 | |||||||||||||||||
Total undiscounted lease liabilities and receipts | $ | 1,768,769 | $ | 186,487 | $ | (226,348 | ) | $ | \u2014 | $ | 1,542,421 | $ | 186,487 | |||||||||||
Less interest(3) | (763,757 | ) | (30,438 | ) | ||||||||||||||||||||
Present value of lease liabilities | 1,005,012 | 156,049 | ||||||||||||||||||||||
Less current lease liabilities | (131,022 | ) | (12,746 | ) | ||||||||||||||||||||
Long-term lease liabilities | $ | 873,990 | $ | 143,303 |
(1) | Operating lease payments include $11.4 million related to extension options that are reasonably certain of being exercised and exclude $23.0 million of legally binding minimum lease payments for leases signed but not yet commenced. |
(2) | Finance lease payments include $0.0 million related to extension options that are reasonably certain of being exercised and exclude $0.4 million of legally binding minimum lease payments for leases signed but not yet commenced. This table excludes a $59.5 million payment related to a facility the Company is deemed the accounting owner, which is recognized as a residual obligation, and is subject to an underlying lease. |
(3) | Calculated using the interest rate for each lease. |
Lease Obligations | Lease Receipts | Net Lease Obligations | ||||||||||||||||||||||
Fiscal Year | Operating Leases | Capital Leases | Operating Leases | Capital Leases | Operating Leases | Capital Leases | ||||||||||||||||||
2020 | $ | 223,612 | $ | 41,550 | $ | (55,922 | ) | $ | (319 | ) | $ | 167,690 | $ | 41,231 | ||||||||||
2021 | 190,845 | 32,804 | (41,425 | ) | \u2014 | 149,420 | 32,804 | |||||||||||||||||
2022 | 179,326 | 29,869 | (35,998 | ) | \u2014 | 143,328 | 29,869 | |||||||||||||||||
2023 | 154,812 | 26,699 | (25,591 | ) | \u2014 | 129,221 | 26,699 | |||||||||||||||||
2024 | 135,795 | 23,095 | (18,183 | ) | \u2014 | 117,612 | 23,095 | |||||||||||||||||
Thereafter | 1,063,674 | 46,999 | (59,186 | ) | \u2014 | 1,004,488 | 46,999 | |||||||||||||||||
Total future minimum obligations (receipts) | $ | 1,948,064 | $ | 201,016 | $ | (236,305 | ) | $ | (319 | ) | $ | 1,711,759 | $ | 200,697 | ||||||||||
Less interest | (68,138 | ) | ||||||||||||||||||||||
Present value of capital lease obligations | 132,878 | |||||||||||||||||||||||
Less current capital lease obligations | (24,670 | ) | ||||||||||||||||||||||
Long-term capital lease obligations | $ | 108,208 |
Lease Term and Discount Rate | August\u00a01, 2020 | ||
Weighted-average remaining lease term (years) | |||
Operating leases | 10.4 years | ||
Finance leases | 3.1 years | ||
Weighted-average discount rate | |||
Operating leases | 10.6 | % | |
Finance leases | 8.8 | % |
Other Information | ||||
(in thousands) | 2020 | |||
Cash paid for amounts included in the measurement of lease liabilities | ||||
Operating cash flows from operating leases | $ | 231,272 | ||
Operating cash flows from finance leases | 9,334 | |||
Financing cash flows from finance leases | 19,972 | |||
Leased assets obtained in exchange for new finance lease liabilities | 93,060 | |||
Leased assets obtained in exchange for new operating lease liabilities | 195,087 |
(in thousands) | Consolidated Statements of Operations Location | August\u00a01, 2020 | ||||
Operating lease cost | Operating expenses | $ | 223,016 | |||
Short-term lease cost | Operating expenses | 30,992 | ||||
Variable lease cost | Operating expenses | 151,065 | ||||
Sublease income | Operating expenses | (3,504 | ) | |||
Sublease income | Net sales | (22,543 | ) | |||
Other sublease income, net | Restructuring, acquisition and integration related expenses(2) | (5,075 | ) | |||
Net operating lease cost(1) | 373,951 | |||||
Amortization of leased assets | Operating expenses | 16,052 | ||||
Interest on lease liabilities | Interest expense, net | 11,617 | ||||
Finance lease cost | 27,669 | |||||
Total net lease cost | $ | 401,620 |
(1) | Rent expense as presented here includes $6.8 million in fiscal 2020 of operating lease rent expense related to stores within discontinued operations, but for which GAAP requires the expense to be included within continuing operations, as the Company expects to remain primarily obligated under these leases. Rent expense as presented here also includes immaterial amounts of variable lease expense of discontinued operations. |
(in thousands) | 2020 | 2019 | 2018 | |||||||||
Restricted stock awards | $ | 23,260 | $ | 22,979 | $ | 19,872 | ||||||
Supervalu replacement awards(1) | 9,046 | 14,304 | \u2014 | |||||||||
Performance-based share awards | 1,494 | 3,013 | 5,569 | |||||||||
Stock option awards | (111 | ) | 199 | 342 | ||||||||
Share-based compensation expense recorded in Operating expenses | 33,689 | 40,495 | 25,783 | |||||||||
Income tax benefit | (9,043 | ) | (10,458 | ) | (6,538 | ) | ||||||
Share-based compensation expense, net of tax | $ | 24,646 | $ | 30,037 | $ | 19,245 | ||||||
Share-based compensation expense recorded in Restructuring, acquisition and integration related expenses(2) | $ | 1,023 | $ | 33,021 | $ | 107 | ||||||
Income tax benefit | (275 | ) | (8,870 | ) | (29 | ) | ||||||
Share-based compensation expense recorded in Restructuring, acquisition and integration related expenses, net of tax | $ | 748 | $ | 24,151 | $ | 78 |
(1) | Amounts are derived entirely from liability classified awards. |
(2) | Includes liability classified awards of $1.0 million and equity classified awards of $0.0 million for fiscal 2020, and liability classified awards $31.7 million and equity classified awards of $1.4 million for fiscal 2019. Amounts recorded in fiscal 2018 are derived entirely from equity classified awards. |
Number of Shares | Weighted Average Grant-Date Fair Value | ||||||
Outstanding at July 29, 2017 | 1,270,111 | $ | 44.56 | ||||
Granted | 716,952 | 40.06 | |||||
Vested | (434,730 | ) | 47.24 | ||||
Forfeited | (207,731 | ) | 41.38 | ||||
Outstanding at July 28 2018 | 1,344,602 | 41.78 | |||||
Supervalu replacement awards | 4,301,233 | 32.50 | |||||
Granted | 1,665,233 | 23.30 | |||||
Vested | (2,038,290 | ) | 34.81 | ||||
Forfeited | (852,045 | ) | 30.83 | ||||
Outstanding at August 3, 2019 | 4,420,733 | 31.11 | |||||
Granted | 6,058,519 | 7.67 | |||||
Vested | (1,043,628 | ) | 20.59 | ||||
Forfeited | (2,018,975 | ) | 12.39 | ||||
Outstanding at August 1, 2020 | 7,416,649 | $ | 18.54 |
(in thousands) | 2020 | 2019 | 2018 | |||||||||
Intrinsic value of restricted stock units vested | $ | 21,007 | $ | 36,071 | $ | 12,420 |
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||
Outstanding at beginning of year | 1,769,237 | $ | 43.06 | |||||||||
Exercised | (3,519 | ) | 14.77 | \u00a0 | \u00a0 | |||||||
Forfeited | (429,225 | ) | 51.52 | \u00a0 | \u00a0 | |||||||
Canceled | (206,420 | ) | 46.75 | \u00a0 | \u00a0 | |||||||
Outstanding at end of year | 1,130,073 | 46.46 | 4.4 years | $ | \u2014 | |||||||
Exercisable at end of year | 1,130,073 | $ | 46.46 | 4.4 years | $ | \u2014 |
(in thousands) | 2020 | 2019 | 2018 | |||||||||
Restricted stock awards | $ | 23,260 | $ | 22,979 | $ | 19,872 | ||||||
Supervalu replacement awards(1) | 9,046 | 14,304 | \u2014 | |||||||||
Performance-based share awards | 1,494 | 3,013 | 5,569 | |||||||||
Stock option awards | (111 | ) | 199 | 342 | ||||||||
Share-based compensation expense recorded in Operating expenses | 33,689 | 40,495 | 25,783 | |||||||||
Income tax benefit | (9,043 | ) | (10,458 | ) | (6,538 | ) | ||||||
Share-based compensation expense, net of tax | $ | 24,646 | $ | 30,037 | $ | 19,245 | ||||||
Share-based compensation expense recorded in Restructuring, acquisition and integration related expenses(2) | $ | 1,023 | $ | 33,021 | $ | 107 | ||||||
Income tax benefit | (275 | ) | (8,870 | ) | (29 | ) | ||||||
Share-based compensation expense recorded in Restructuring, acquisition and integration related expenses, net of tax | $ | 748 | $ | 24,151 | $ | 78 |
(1) | Amounts are derived entirely from liability classified awards. |
(2) | Includes liability classified awards of $1.0 million and equity classified awards of $0.0 million for fiscal 2020, and liability classified awards $31.7 million and equity classified awards of $1.4 million for fiscal 2019. Amounts recorded in fiscal 2018 are derived entirely from equity classified awards. |
Number of Shares | Weighted Average Grant-Date Fair Value | ||||||
Outstanding at July 29, 2017 | 1,270,111 | $ | 44.56 | ||||
Granted | 716,952 | 40.06 | |||||
Vested | (434,730 | ) | 47.24 | ||||
Forfeited | (207,731 | ) | 41.38 | ||||
Outstanding at July 28 2018 | 1,344,602 | 41.78 | |||||
Supervalu replacement awards | 4,301,233 | 32.50 | |||||
Granted | 1,665,233 | 23.30 | |||||
Vested | (2,038,290 | ) | 34.81 | ||||
Forfeited | (852,045 | ) | 30.83 | ||||
Outstanding at August 3, 2019 | 4,420,733 | 31.11 | |||||
Granted | 6,058,519 | 7.67 | |||||
Vested | (1,043,628 | ) | 20.59 | ||||
Forfeited | (2,018,975 | ) | 12.39 | ||||
Outstanding at August 1, 2020 | 7,416,649 | $ | 18.54 |
(in thousands) | 2020 | 2019 | 2018 | |||||||||
Intrinsic value of restricted stock units vested | $ | 21,007 | $ | 36,071 | $ | 12,420 |
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||
Outstanding at beginning of year | 1,769,237 | $ | 43.06 | |||||||||
Exercised | (3,519 | ) | 14.77 | \u00a0 | \u00a0 | |||||||
Forfeited | (429,225 | ) | 51.52 | \u00a0 | \u00a0 | |||||||
Canceled | (206,420 | ) | 46.75 | \u00a0 | \u00a0 | |||||||
Outstanding at end of year | 1,130,073 | 46.46 | 4.4 years | $ | \u2014 | |||||||
Exercisable at end of year | 1,130,073 | $ | 46.46 | 4.4 years | $ | \u2014 |
2020 | 2019 | |||||||||||||||
(in thousands) | Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | ||||||||||||
Changes in Benefit Obligation | ||||||||||||||||
Benefit Obligation at beginning of year | $ | 2,709,274 | $ | 37,682 | $ | \u2014 | $ | \u2014 | ||||||||
Benefit obligation at acquisition date of October 22, 2018 | \u2014 | \u2014 | 2,499,954 | 52,276 | ||||||||||||
Plan amendment | \u2014 | \u2014 | \u2014 | (4,199 | ) | |||||||||||
Service cost | \u2014 | 54 | \u2014 | 173 | ||||||||||||
Interest cost | 57,495 | 943 | 75,706 | 1,447 | ||||||||||||
Actuarial loss (gain) | 276,635 | 719 | 249,899 | (9,836 | ) | |||||||||||
Settlements paid | (689,989 | ) | \u2014 | \u2014 | \u2014 | |||||||||||
Benefits paid | (93,928 | ) | (2,285 | ) | (116,285 | ) | (2,179 | ) | ||||||||
Benefit obligation at end of year | 2,259,487 | 37,113 | 2,709,274 | 37,682 | ||||||||||||
Changes in Plan Assets | ||||||||||||||||
Fair value of plan assets at beginning of year | 2,496,547 | 11,243 | \u2014 | \u2014 | ||||||||||||
Fair value of plan assets at acquisition date of October 22, 2018 | \u2014 | \u2014 | 2,305,020 | 11,586 | ||||||||||||
Actual return on plan assets | 261,839 | 845 | 303,696 | 260 | ||||||||||||
Employer contributions | 16,099 | 2,601 | 4,116 | 1,636 | ||||||||||||
Settlements paid | (689,989 | ) | \u2014 | \u2014 | \u2014 | |||||||||||
Benefits paid | (93,928 | ) | (2,285 | ) | (116,285 | ) | (2,239 | ) | ||||||||
Fair value of plan assets at end of year | 1,990,568 | 12,404 | 2,496,547 | 11,243 | ||||||||||||
Unfunded status at end of year | $ | (268,919 | ) | $ | (24,709 | ) | $ | (212,727 | ) | $ | (26,439 | ) |
2020 | 2019 | |||||||||||||||
(in thousands) | Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | ||||||||||||
Net Periodic Benefit (Income) Cost | ||||||||||||||||
Service cost | $ | \u2014 | $ | 54 | $ | \u2014 | $ | 173 | ||||||||
Interest cost | 57,495 | 943 | 75,706 | 1,447 | ||||||||||||
Expected return on plan assets | (105,596 | ) | (215 | ) | (111,695 | ) | (184 | ) | ||||||||
Amortization of net actuarial gain | \u2014 | (3,107 | ) | \u2014 | \u2014 | |||||||||||
Pension settlement charge | 11,303 | \u2014 | \u2014 | \u2014 | ||||||||||||
Net periodic benefit (income) cost | (36,798 | ) | (2,325 | ) | (35,989 | ) | 1,436 | |||||||||
Other Changes in Plan Assets and Benefits Obligations Recognized in Other Comprehensive (Loss) Income | ||||||||||||||||
Prior service benefit | \u2014 | \u2014 | \u2014 | (4,199 | ) | |||||||||||
Amortization of prior service benefit | \u2014 | 1,400 | \u2014 | \u2014 | ||||||||||||
Net actuarial loss (gain) | 108,990 | 89 | 57,902 | (9,912 | ) | |||||||||||
Amortization of net actuarial loss | \u2014 | 1,707 | \u2014 | \u2014 | ||||||||||||
Total expense (benefit) recognized in Other comprehensive (loss) income | 108,990 | 3,196 | 57,902 | (14,111 | ) | |||||||||||
Total expense (benefit) recognized in net periodic benefit cost (income) and Other comprehensive (loss) income | $ | 72,192 | $ | 871 | $ | 21,913 | $ | (12,675 | ) |
August\u00a01, 2020 | August\u00a03, 2019 | |||||||||||||||
(in thousands) | Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | ||||||||||||
Accrued compensation and benefits | $ | 1,500 | $ | \u2014 | $ | 1,900 | $ | \u2014 | ||||||||
Pension and other postretirement benefit obligations | 267,419 | 24,709 | 210,827 | 26,439 | ||||||||||||
Total | $ | 268,919 | $ | 24,709 | $ | 212,727 | $ | 26,439 |
2020 | 2019 | |||||
Benefit obligation assumptions: | ||||||
Discount rate | 1.74% - 2.37% | 2.99% - 3.49% | ||||
Net periodic benefit cost assumptions: | ||||||
Discount rate | 2.99% - 3.49% | 4.30% - 4.42% | ||||
Rate of compensation increase | \u2014 | \u2014 | % | |||
Expected return on plan assets(1) | 2.00% - 5.75% | 2.25% - 6.50% |
(1) | Expected return on plan assets is estimated by utilizing forward-looking, long-term return, risk and correlation assumptions developed and updated annually by the Company. These assumptions are weighted by the actual or target allocation to each underlying asset class represented in the pension plan asset portfolio. We also assess the expected long-term return on plan assets assumption by comparison to long-term historical performance on an asset class to ensure the assumption is reasonable. Long-term trends are also evaluated relative to market factors such as inflation, interest rates, and fiscal and monetary policies in order to assess the capital market assumptions. |
Asset Category | Target | 2020 | 2019 | ||||||
Domestic equity | 22.4 | % | 22.6 | % | 22.1 | % | |||
International equity | 6.8 | % | 6.0 | % | 6.2 | % | |||
Private equity | 5.3 | % | 4.7 | % | 4.2 | % | |||
Fixed income | 59.7 | % | 60.4 | % | 62.3 | % | |||
Real estate | 5.8 | % | 6.3 | % | 5.2 | % | |||
\u00a0\u00a0\u00a0\u00a0Total | 100.0 | % | 100.0 | % | 100.0 | % |
Level\u00a01 | Level\u00a02 | Level\u00a03 | Measured at NAV as a Practical Expedient | Total | ||||||||||||||||
Common stock | $ | 334,194 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | 334,194 | ||||||||||
Common collective trusts | \u2014 | 901,258 | \u2014 | 59,454 | 960,712 | |||||||||||||||
Corporate bonds | \u2014 | 310,694 | \u2014 | \u2014 | 310,694 | |||||||||||||||
Government securities | \u2014 | 131,424 | \u2014 | \u2014 | 131,424 | |||||||||||||||
Mutual funds | 456 | 42,867 | \u2014 | \u2014 | 43,323 | |||||||||||||||
Mortgage-backed securities | \u2014 | 3,979 | \u2014 | \u2014 | 3,979 | |||||||||||||||
Other | 10,314 | 23,137 | \u2014 | \u2014 | 33,451 | |||||||||||||||
Private equity and real estate partnerships | \u2014 | \u2014 | \u2014 | 172,791 | 172,791 | |||||||||||||||
Total plan assets at fair value | $ | 344,964 | $ | 1,413,359 | $ | \u2014 | $ | 232,245 | $ | 1,990,568 |
Level\u00a01 | Level\u00a02 | Level\u00a03 | Measured at NAV as a Practical Expedient | Total | ||||||||||||||||
Common stock | $ | 397,800 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | 397,800 | ||||||||||
Common collective trusts | \u2014 | 1,046,590 | \u2014 | 83,504 | 1,130,094 | |||||||||||||||
Corporate bonds | \u2014 | 362,251 | \u2014 | \u2014 | 362,251 | |||||||||||||||
Government securities | \u2014 | 248,872 | \u2014 | \u2014 | 248,872 | |||||||||||||||
Mutual funds | 469 | 62,254 | \u2014 | \u2014 | 62,723 | |||||||||||||||
Mortgage-backed securities | \u2014 | 10,920 | \u2014 | \u2014 | 10,920 | |||||||||||||||
Other | 5,603 | 73,745 | \u2014 | \u2014 | 79,348 | |||||||||||||||
Private equity and real estate partnerships | \u2014 | \u2014 | \u2014 | 204,539 | 204,539 | |||||||||||||||
Total plan assets at fair value | $ | 403,872 | $ | 1,804,632 | $ | \u2014 | $ | 288,043 | $ | 2,496,547 |
Fiscal Year | Pension\u00a0Benefits | Other\u00a0 Postretirement Benefits | ||||||
2021 | $ | 117,700 | $ | 3,800 | ||||
2022 | 112,900 | 3,600 | ||||||
2023 | 114,500 | 3,400 | ||||||
2024 | 118,000 | 3,200 | ||||||
2025 | 123,200 | 3,000 | ||||||
Years 2026-2030 | 592,300 | 12,000 |
Post-Employment Benefits | ||||||||
August\u00a01, 2020 | August\u00a03, 2019 | |||||||
Accrued compensation and benefits | $ | 2,356 | $ | 2,356 | ||||
Other long-term liabilities | 5,053 | 5,053 | ||||||
Total | $ | 7,409 | $ | 7,409 |
a. | Assets contributed to the multiemployer plan by one employer are held in trust and may be used to provide benefits to employees of other participating employers. |
b. | If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. |
c. | If we choose to stop participating in some multiemployer plans, or make market exits or closures or otherwise have participation in the plan drop below certain levels, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. |
Pension Protection Act Zone Status | Contributions | ||||||||||||||||||
Pension Fund | EIN-Pension Plan Number | Plan Month/Day End\u00a0Date | 2020 | FIP/RP Status Pending/Implemented | 2020 | 2019 | Surcharges Imposed(1) | Amortization Provisions | |||||||||||
Minneapolis Food Distributing Industry Pension Plan | 416047047-001 | 12/31 | Green | No | $ | 11 | $ | 8 | No | \u2610 | |||||||||
Minneapolis Retail Meat Cutters and Food Handlers Pension Fund | 410905139-001 | 2/28 | Red | Implemented | 9 | 7 | No | \u2612 | |||||||||||
Minneapolis Retail Meat Cutters and Food Handlers Variable Annuity Pension Fund | 832598425-001 | 12/31 | NA | NA | 3 | 1 | NA | \u2610 | |||||||||||
Central States, Southeast and Southwest Areas Pension Fund | 366044243-001 | 12/31 | Deep Red | Implemented | 6 | 5 | No | \u2612 | |||||||||||
UFCW Unions and Participating Employer Pension Fund(2) | 526117495-001 | 12/31 | Red | Implemented | 7 | 4 | No | \u2610 | |||||||||||
Western Conference of Teamsters Pension Plan Trust | 916145047-001 | 12/31 | Green | No | 13 | 12 | No | \u2610 | |||||||||||
UFCW Unions and Employers Pension Plan | 396069053-001 | 10/31 | Deep Red | Implemented | 1 | 1 | No | \u2612 | |||||||||||
All Other Multiemployer Pension Plans(3) | 2 | 3 | |||||||||||||||||
Total | $ | 52 | $ | 41 |
(1) | PPA surcharges are 5 percent or 10 percent of eligible contributions and may not apply to all collective bargaining agreements or total contributions to each plan. |
(2) | These multiemployer pension plans are associated with continued and discontinued operations. |
(3) | All Other Multiemployer Pension Plans include 7 plans, none of which is individually significant when considering contributions to the plan, severity of the underfunded status or other factors. |
Most Significant Collective Bargaining Agreement | |||||||||||
Pension Fund | Range of Collective Bargaining Agreement Expiration Dates | Total Collective Bargaining Agreements | Expiration Date | % of Associates under Collective Bargaining Agreement (1) | Over 5% Contributions 2020 | ||||||
Minneapolis Food Distributing Industry Pension Plan | 5/31/2022 | 1 | 5/31/2022 | 100.0 | % | \u2612 | |||||
Minneapolis Retail Meat Cutters and Food Handlers Pension Fund | 3/4/2023 | 1 | 3/4/2023 | 100.0 | % | \u2612 | |||||
Minneapolis Retail Meat Cutters and Food Handlers Variable Annuity Pension Fund | 3/4/2023 | 1 | 3/4/2023 | 100.0 | % | \u2612 | |||||
Central States, Southeast and Southwest Areas Pension Fund | 9/14/2019 - 5/31/2025 | 4 | 8/3/2024 | 39.2 | % | \u2610 | |||||
UFCW Unions and Participating Employer Pension Fund(2) | 11/8/2020 | 2 | 11/8/2020 | 66.2 | % | \u2612 | |||||
Western Conference of Teamsters Pension Plan Trust | 5/31/2020 - 4/22/2023 | 15 | 9/19/2020 | 20.7 | % | \u2610 | |||||
UFCW Unions and Employers Pension Plan | 4/9/2022 | 1 | 4/9/2022 | 100.0 | % | \u2612 |
(1) | Company participating employees in the most significant collective bargaining agreement as a percent of all Company employees participating in the respective fund. |
(2) | These multiemployer pension plans are associated with continued and discontinued operations. |
2020 | 2019 | |||||||||||||||
(in thousands) | Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | ||||||||||||
Net Periodic Benefit (Income) Cost | ||||||||||||||||
Service cost | $ | \u2014 | $ | 54 | $ | \u2014 | $ | 173 | ||||||||
Interest cost | 57,495 | 943 | 75,706 | 1,447 | ||||||||||||
Expected return on plan assets | (105,596 | ) | (215 | ) | (111,695 | ) | (184 | ) | ||||||||
Amortization of net actuarial gain | \u2014 | (3,107 | ) | \u2014 | \u2014 | |||||||||||
Pension settlement charge | 11,303 | \u2014 | \u2014 | \u2014 | ||||||||||||
Net periodic benefit (income) cost | (36,798 | ) | (2,325 | ) | (35,989 | ) | 1,436 | |||||||||
Other Changes in Plan Assets and Benefits Obligations Recognized in Other Comprehensive (Loss) Income | ||||||||||||||||
Prior service benefit | \u2014 | \u2014 | \u2014 | (4,199 | ) | |||||||||||
Amortization of prior service benefit | \u2014 | 1,400 | \u2014 | \u2014 | ||||||||||||
Net actuarial loss (gain) | 108,990 | 89 | 57,902 | (9,912 | ) | |||||||||||
Amortization of net actuarial loss | \u2014 | 1,707 | \u2014 | \u2014 | ||||||||||||
Total expense (benefit) recognized in Other comprehensive (loss) income | 108,990 | 3,196 | 57,902 | (14,111 | ) | |||||||||||
Total expense (benefit) recognized in net periodic benefit cost (income) and Other comprehensive (loss) income | $ | 72,192 | $ | 871 | $ | 21,913 | $ | (12,675 | ) |
2020 | 2019 | |||||||||||||||
(in thousands) | Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | ||||||||||||
Changes in Benefit Obligation | ||||||||||||||||
Benefit Obligation at beginning of year | $ | 2,709,274 | $ | 37,682 | $ | \u2014 | $ | \u2014 | ||||||||
Benefit obligation at acquisition date of October 22, 2018 | \u2014 | \u2014 | 2,499,954 | 52,276 | ||||||||||||
Plan amendment | \u2014 | \u2014 | \u2014 | (4,199 | ) | |||||||||||
Service cost | \u2014 | 54 | \u2014 | 173 | ||||||||||||
Interest cost | 57,495 | 943 | 75,706 | 1,447 | ||||||||||||
Actuarial loss (gain) | 276,635 | 719 | 249,899 | (9,836 | ) | |||||||||||
Settlements paid | (689,989 | ) | \u2014 | \u2014 | \u2014 | |||||||||||
Benefits paid | (93,928 | ) | (2,285 | ) | (116,285 | ) | (2,179 | ) | ||||||||
Benefit obligation at end of year | 2,259,487 | 37,113 | 2,709,274 | 37,682 | ||||||||||||
Changes in Plan Assets | ||||||||||||||||
Fair value of plan assets at beginning of year | 2,496,547 | 11,243 | \u2014 | \u2014 | ||||||||||||
Fair value of plan assets at acquisition date of October 22, 2018 | \u2014 | \u2014 | 2,305,020 | 11,586 | ||||||||||||
Actual return on plan assets | 261,839 | 845 | 303,696 | 260 | ||||||||||||
Employer contributions | 16,099 | 2,601 | 4,116 | 1,636 | ||||||||||||
Settlements paid | (689,989 | ) | \u2014 | \u2014 | \u2014 | |||||||||||
Benefits paid | (93,928 | ) | (2,285 | ) | (116,285 | ) | (2,239 | ) | ||||||||
Fair value of plan assets at end of year | 1,990,568 | 12,404 | 2,496,547 | 11,243 | ||||||||||||
Unfunded status at end of year | $ | (268,919 | ) | $ | (24,709 | ) | $ | (212,727 | ) | $ | (26,439 | ) |
August\u00a01, 2020 | August\u00a03, 2019 | |||||||||||||||
(in thousands) | Pension Benefits | Other Postretirement Benefits | Pension Benefits | Other Postretirement Benefits | ||||||||||||
Accrued compensation and benefits | $ | 1,500 | $ | \u2014 | $ | 1,900 | $ | \u2014 | ||||||||
Pension and other postretirement benefit obligations | 267,419 | 24,709 | 210,827 | 26,439 | ||||||||||||
Total | $ | 268,919 | $ | 24,709 | $ | 212,727 | $ | 26,439 |
Post-Employment Benefits | ||||||||
August\u00a01, 2020 | August\u00a03, 2019 | |||||||
Accrued compensation and benefits | $ | 2,356 | $ | 2,356 | ||||
Other long-term liabilities | 5,053 | 5,053 | ||||||
Total | $ | 7,409 | $ | 7,409 |
2020 | 2019 | |||||
Benefit obligation assumptions: | ||||||
Discount rate | 1.74% - 2.37% | 2.99% - 3.49% | ||||
Net periodic benefit cost assumptions: | ||||||
Discount rate | 2.99% - 3.49% | 4.30% - 4.42% | ||||
Rate of compensation increase | \u2014 | \u2014 | % | |||
Expected return on plan assets(1) | 2.00% - 5.75% | 2.25% - 6.50% |
Asset Category | Target | 2020 | 2019 | ||||||
Domestic equity | 22.4 | % | 22.6 | % | 22.1 | % | |||
International equity | 6.8 | % | 6.0 | % | 6.2 | % | |||
Private equity | 5.3 | % | 4.7 | % | 4.2 | % | |||
Fixed income | 59.7 | % | 60.4 | % | 62.3 | % | |||
Real estate | 5.8 | % | 6.3 | % | 5.2 | % | |||
\u00a0\u00a0\u00a0\u00a0Total | 100.0 | % | 100.0 | % | 100.0 | % |
Level\u00a01 | Level\u00a02 | Level\u00a03 | Measured at NAV as a Practical Expedient | Total | ||||||||||||||||
Common stock | $ | 334,194 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | 334,194 | ||||||||||
Common collective trusts | \u2014 | 901,258 | \u2014 | 59,454 | 960,712 | |||||||||||||||
Corporate bonds | \u2014 | 310,694 | \u2014 | \u2014 | 310,694 | |||||||||||||||
Government securities | \u2014 | 131,424 | \u2014 | \u2014 | 131,424 | |||||||||||||||
Mutual funds | 456 | 42,867 | \u2014 | \u2014 | 43,323 | |||||||||||||||
Mortgage-backed securities | \u2014 | 3,979 | \u2014 | \u2014 | 3,979 | |||||||||||||||
Other | 10,314 | 23,137 | \u2014 | \u2014 | 33,451 | |||||||||||||||
Private equity and real estate partnerships | \u2014 | \u2014 | \u2014 | 172,791 | 172,791 | |||||||||||||||
Total plan assets at fair value | $ | 344,964 | $ | 1,413,359 | $ | \u2014 | $ | 232,245 | $ | 1,990,568 |
Level\u00a01 | Level\u00a02 | Level\u00a03 | Measured at NAV as a Practical Expedient | Total | ||||||||||||||||
Common stock | $ | 397,800 | $ | \u2014 | $ | \u2014 | $ | \u2014 | $ | 397,800 | ||||||||||
Common collective trusts | \u2014 | 1,046,590 | \u2014 | 83,504 | 1,130,094 | |||||||||||||||
Corporate bonds | \u2014 | 362,251 | \u2014 | \u2014 | 362,251 | |||||||||||||||
Government securities | \u2014 | 248,872 | \u2014 | \u2014 | 248,872 | |||||||||||||||
Mutual funds | 469 | 62,254 | \u2014 | \u2014 | 62,723 | |||||||||||||||
Mortgage-backed securities | \u2014 | 10,920 | \u2014 | \u2014 | 10,920 | |||||||||||||||
Other | 5,603 | 73,745 | \u2014 | \u2014 | 79,348 | |||||||||||||||
Private equity and real estate partnerships | \u2014 | \u2014 | \u2014 | 204,539 | 204,539 | |||||||||||||||
Total plan assets at fair value | $ | 403,872 | $ | 1,804,632 | $ | \u2014 | $ | 288,043 | $ | 2,496,547 |
Fiscal Year | Pension\u00a0Benefits | Other\u00a0 Postretirement Benefits | ||||||
2021 | $ | 117,700 | $ | 3,800 | ||||
2022 | 112,900 | 3,600 | ||||||
2023 | 114,500 | 3,400 | ||||||
2024 | 118,000 | 3,200 | ||||||
2025 | 123,200 | 3,000 | ||||||
Years 2026-2030 | 592,300 | 12,000 |
Pension Protection Act Zone Status | Contributions | ||||||||||||||||||
Pension Fund | EIN-Pension Plan Number | Plan Month/Day End\u00a0Date | 2020 | FIP/RP Status Pending/Implemented | 2020 | 2019 | Surcharges Imposed(1) | Amortization Provisions | |||||||||||
Minneapolis Food Distributing Industry Pension Plan | 416047047-001 | 12/31 | Green | No | $ | 11 | $ | 8 | No | \u2610 | |||||||||
Minneapolis Retail Meat Cutters and Food Handlers Pension Fund | 410905139-001 | 2/28 | Red | Implemented | 9 | 7 | No | \u2612 | |||||||||||
Minneapolis Retail Meat Cutters and Food Handlers Variable Annuity Pension Fund | 832598425-001 | 12/31 | NA | NA | 3 | 1 | NA | \u2610 | |||||||||||
Central States, Southeast and Southwest Areas Pension Fund | 366044243-001 | 12/31 | Deep Red | Implemented | 6 | 5 | No | \u2612 | |||||||||||
UFCW Unions and Participating Employer Pension Fund(2) | 526117495-001 | 12/31 | Red | Implemented | 7 | 4 | No | \u2610 | |||||||||||
Western Conference of Teamsters Pension Plan Trust | 916145047-001 | 12/31 | Green | No | 13 | 12 | No | \u2610 | |||||||||||
UFCW Unions and Employers Pension Plan | 396069053-001 | 10/31 | Deep Red | Implemented | 1 | 1 | No | \u2612 | |||||||||||
All Other Multiemployer Pension Plans(3) | 2 | 3 | |||||||||||||||||
Total | $ | 52 | $ | 41 |
(1) | PPA surcharges are 5 percent or 10 percent of eligible contributions and may not apply to all collective bargaining agreements or total contributions to each plan. |
(2) | These multiemployer pension plans are associated with continued and discontinued operations. |
Most Significant Collective Bargaining Agreement | |||||||||||
Pension Fund | Range of Collective Bargaining Agreement Expiration Dates | Total Collective Bargaining Agreements | Expiration Date | % of Associates under Collective Bargaining Agreement (1) | Over 5% Contributions 2020 | ||||||
Minneapolis Food Distributing Industry Pension Plan | 5/31/2022 | 1 | 5/31/2022 | 100.0 | % | \u2612 | |||||
Minneapolis Retail Meat Cutters and Food Handlers Pension Fund | 3/4/2023 | 1 | 3/4/2023 | 100.0 | % | \u2612 | |||||
Minneapolis Retail Meat Cutters and Food Handlers Variable Annuity Pension Fund | 3/4/2023 | 1 | 3/4/2023 | 100.0 | % | \u2612 | |||||
Central States, Southeast and Southwest Areas Pension Fund | 9/14/2019 - 5/31/2025 | 4 | 8/3/2024 | 39.2 | % | \u2610 | |||||
UFCW Unions and Participating Employer Pension Fund(2) | 11/8/2020 | 2 | 11/8/2020 | 66.2 | % | \u2612 | |||||
Western Conference of Teamsters Pension Plan Trust | 5/31/2020 - 4/22/2023 | 15 | 9/19/2020 | 20.7 | % | \u2610 | |||||
UFCW Unions and Employers Pension Plan | 4/9/2022 | 1 | 4/9/2022 | 100.0 | % | \u2612 |
(1) | Company participating employees in the most significant collective bargaining agreement as a percent of all Company employees participating in the respective fund. |
(in thousands) | 2020 | 2019 | 2018 | ||||||||
Continuing operations | $ | (90,445 | ) | $ | (58,936 | ) | $ | 47,215 | |||
Discontinued operations | (4,465 | ) | (3,723 | ) | \u2014 | ||||||
Total | $ | (94,910 | ) | $ | (62,659 | ) | $ | 47,215 |
(in thousands) | 2020 | 2019 | 2018 | ||||||||
Income tax expense | $ | (90,445 | ) | $ | (58,936 | ) | $ | 47,215 | |||
Other comprehensive income | (45,700 | ) | (33,854 | ) | 1,561 | ||||||
Total | $ | (136,145 | ) | $ | (92,790 | ) | $ | 48,776 |
(in thousands) | Current | Deferred | Total | ||||||||
Fiscal 2020 | \u00a0 | \u00a0 | \u00a0 | ||||||||
U.S. Federal | $ | (22,681 | ) | $ | (45,315 | ) | $ | (67,996 | ) | ||
State\u00a0and Local | 654 | (23,058 | ) | (22,404 | ) | ||||||
Foreign | 2,515 | (2,560 | ) | (45 | ) | ||||||
$ | (19,512 | ) | $ | (70,933 | ) | $ | (90,445 | ) | |||
Fiscal 2019 | \u00a0 | \u00a0 | \u00a0 | ||||||||
U.S. Federal | $ | 11,402 | $ | (59,528 | ) | $ | (48,126 | ) | |||
State\u00a0and Local | (11,049 | ) | (1,767 | ) | (12,816 | ) | |||||
Foreign | 1,919 | 87 | 2,006 | ||||||||
$ | 2,272 | $ | (61,208 | ) | $ | (58,936 | ) | ||||
Fiscal 2018 | \u00a0 | \u00a0 | \u00a0 | ||||||||
U.S. Federal | $ | 46,210 | $ | (16,508 | ) | $ | 29,702 | ||||
State\u00a0and Local | 13,310 | 1,878 | 15,188 | ||||||||
Foreign | 2,374 | (49 | ) | 2,325 | |||||||
$ | 61,894 | $ | (14,679 | ) | $ | 47,215 |
(in thousands) | 2020 | 2019 | 2018 | ||||||||
Computed \u201cexpected\u201d tax expense | $ | (72,335 | ) | $ | (70,740 | ) | $ | 57,499 | |||
State and local income tax, net of Federal income tax benefit | (19,344 | ) | (17,524 | ) | 10,501 | ||||||
Non-deductible expenses | 3,033 | 5,670 | 955 | ||||||||
Tax effect of share-based compensation | 2,715 | 125 | 149 | ||||||||
General business credits | (1,855 | ) | (1,757 | ) | (552 | ) | |||||
Unrecognized tax benefits | (7,441 | ) | (8,130 | ) | 618 | ||||||
Nondeductible goodwill impairment | 44,226 | 32,619 | \u2014 | ||||||||
Impacts related to the TCJA | \u2014 | \u2014 | (21,719 | ) | |||||||
Impacts related to the CARES Act | (39,497 | ) | \u2014 | \u2014 | |||||||
Other, net | 53 | 801 | (236 | ) | |||||||
Total income tax expense | $ | (90,445 | ) | $ | (58,936 | ) | $ | 47,215 |
(in thousands) | 2020 | 2019 | 2018 | ||||||||
Unrecognized tax benefits at beginning of period | $ | 40,142 | $ | 1,104 | $ | 478 | |||||
Unrecognized tax benefits added during the period | 5,950 | \u2014 | 626 | ||||||||
Unrecognized tax benefits assumed in a business combination | \u2014 | 49,566 | \u2014 | ||||||||
Decreases in unrecognized tax benefits due to statute expiration | (1,595 | ) | (10,528 | ) | \u2014 | ||||||
Decreases in unrecognized tax benefits due to settlements | (12,375 | ) | \u2014 | \u2014 | |||||||
Unrecognized tax benefits at end of period | $ | 32,122 | $ | 40,142 | $ | 1,104 |
(in thousands) | August\u00a01, 2020 | August\u00a03, 2019 | |||||
Deferred tax assets: | \u00a0 | \u00a0 | |||||
Inventories, principally due to additional costs inventoried for tax purposes | $ | 78 | $ | 2 | |||
Compensation and benefits related | 103,312 | 100,942 | |||||
Accounts receivable, principally due to allowances for uncollectible accounts | 12,217 | 3,355 | |||||
Accrued expenses | 32,844 | 15,022 | |||||
Net operating loss carryforwards | 13,464 | 44,396 | |||||
Other tax carryforwards (interest, charitable contributions) | 6,971 | 10,143 | |||||
Foreign tax credits | 445 | 445 | |||||
Intangible assets | 67,226 | 5,869 | |||||
Interest rate swap agreements | 36,949 | 20,518 | |||||
Other deferred tax assets | 5,258 | 2,946 | |||||
Total gross deferred tax assets | 278,764 | 203,638 | |||||
Less valuation allowance | (3,098 | ) | (445 | ) | |||
Net deferred tax assets | $ | 275,666 | $ | 203,193 | |||
Deferred tax liabilities: | \u00a0 | \u00a0 | |||||
Plant and equipment, principally due to differences in depreciation | $ | 125,463 | $ | 117,195 | |||
Inventories | 42,579 | 51,392 | |||||
Intangible assets | \u2014 | 1,016 | |||||
Other | \u2014 | 370 | |||||
Total deferred tax liabilities | 168,042 | 169,973 | |||||
Net deferred tax assets | $ | 107,624 | $ | 33,220 |
(in thousands) | Current | Deferred | Total | ||||||||
Fiscal 2020 | \u00a0 | \u00a0 | \u00a0 | ||||||||
U.S. Federal | $ | (22,681 | ) | $ | (45,315 | ) | $ | (67,996 | ) | ||
State\u00a0and Local | 654 | (23,058 | ) | (22,404 | ) | ||||||
Foreign | 2,515 | (2,560 | ) | (45 | ) | ||||||
$ | (19,512 | ) | $ | (70,933 | ) | $ | (90,445 | ) | |||
Fiscal 2019 | \u00a0 | \u00a0 | \u00a0 | ||||||||
U.S. Federal | $ | 11,402 | $ | (59,528 | ) | $ | (48,126 | ) | |||
State\u00a0and Local | (11,049 | ) | (1,767 | ) | (12,816 | ) | |||||
Foreign | 1,919 | 87 | 2,006 | ||||||||
$ | 2,272 | $ | (61,208 | ) | $ | (58,936 | ) | ||||
Fiscal 2018 | \u00a0 | \u00a0 | \u00a0 | ||||||||
U.S. Federal | $ | 46,210 | $ | (16,508 | ) | $ | 29,702 | ||||
State\u00a0and Local | 13,310 | 1,878 | 15,188 | ||||||||
Foreign | 2,374 | (49 | ) | 2,325 | |||||||
$ | 61,894 | $ | (14,679 | ) | $ | 47,215 |
(in thousands) | 2020 | 2019 | 2018 | ||||||||
Income tax expense | $ | (90,445 | ) | $ | (58,936 | ) | $ | 47,215 | |||
Other comprehensive income | (45,700 | ) | (33,854 | ) | 1,561 | ||||||
Total | $ | (136,145 | ) | $ | (92,790 | ) | $ | 48,776 |
(in thousands) | 2020 | 2019 | 2018 | ||||||||
Continuing operations | $ | (90,445 | ) | $ | (58,936 | ) | $ | 47,215 | |||
Discontinued operations | (4,465 | ) | (3,723 | ) | \u2014 | ||||||
Total | $ | (94,910 | ) | $ | (62,659 | ) | $ | 47,215 |
(in thousands) | 2020 | 2019 | 2018 | ||||||||
Computed \u201cexpected\u201d tax expense | $ | (72,335 | ) | $ | (70,740 | ) | $ | 57,499 | |||
State and local income tax, net of Federal income tax benefit | (19,344 | ) | (17,524 | ) | 10,501 | ||||||
Non-deductible expenses | 3,033 | 5,670 | 955 | ||||||||
Tax effect of share-based compensation | 2,715 | 125 | 149 | ||||||||
General business credits | (1,855 | ) | (1,757 | ) | (552 | ) | |||||
Unrecognized tax benefits | (7,441 | ) | (8,130 | ) | 618 | ||||||
Nondeductible goodwill impairment | 44,226 | 32,619 | \u2014 | ||||||||
Impacts related to the TCJA | \u2014 | \u2014 | (21,719 | ) | |||||||
Impacts related to the CARES Act | (39,497 | ) | \u2014 | \u2014 | |||||||
Other, net | 53 | 801 | (236 | ) | |||||||
Total income tax expense | $ | (90,445 | ) | $ | (58,936 | ) | $ | 47,215 |
(in thousands) | 2020 | 2019 | 2018 | ||||||||
Unrecognized tax benefits at beginning of period | $ | 40,142 | $ | 1,104 | $ | 478 | |||||
Unrecognized tax benefits added during the period | 5,950 | \u2014 | 626 | ||||||||
Unrecognized tax benefits assumed in a business combination | \u2014 | 49,566 | \u2014 | ||||||||
Decreases in unrecognized tax benefits due to statute expiration | (1,595 | ) | (10,528 | ) | \u2014 | ||||||
Decreases in unrecognized tax benefits due to settlements | (12,375 | ) | \u2014 | \u2014 | |||||||
Unrecognized tax benefits at end of period | $ | 32,122 | $ | 40,142 | $ | 1,104 |
(in thousands) | August\u00a01, 2020 | August\u00a03, 2019 | |||||
Deferred tax assets: | \u00a0 | \u00a0 | |||||
Inventories, principally due to additional costs inventoried for tax purposes | $ | 78 | $ | 2 | |||
Compensation and benefits related | 103,312 | 100,942 | |||||
Accounts receivable, principally due to allowances for uncollectible accounts | 12,217 | 3,355 | |||||
Accrued expenses | 32,844 | 15,022 | |||||
Net operating loss carryforwards | 13,464 | 44,396 | |||||
Other tax carryforwards (interest, charitable contributions) | 6,971 | 10,143 | |||||
Foreign tax credits | 445 | 445 | |||||
Intangible assets | 67,226 | 5,869 | |||||
Interest rate swap agreements | 36,949 | 20,518 | |||||
Other deferred tax assets | 5,258 | 2,946 | |||||
Total gross deferred tax assets | 278,764 | 203,638 | |||||
Less valuation allowance | (3,098 | ) | (445 | ) | |||
Net deferred tax assets | $ | 275,666 | $ | 203,193 | |||
Deferred tax liabilities: | \u00a0 | \u00a0 | |||||
Plant and equipment, principally due to differences in depreciation | $ | 125,463 | $ | 117,195 | |||
Inventories | 42,579 | 51,392 | |||||
Intangible assets | \u2014 | 1,016 | |||||
Other | \u2014 | 370 | |||||
Total deferred tax liabilities | 168,042 | 169,973 | |||||
Net deferred tax assets | $ | 107,624 | $ | 33,220 |
(in thousands, except per share data) | 2020 | 2019 | 2018 | |||||||||
Basic weighted average shares outstanding | 53,778 | 51,245 | 50,530 | |||||||||
Net effect of dilutive stock awards based upon the treasury stock method | \u2014 | \u2014 | 307 | |||||||||
Diluted weighted average shares outstanding | 53,778 | 51,245 | 50,837 | |||||||||
Basic (loss) earnings per share: | ||||||||||||
Continuing operations | $ | (4.81 | ) | $ | (5.57 | ) | $ | 3.22 | ||||
Discontinued operations | $ | (0.28 | ) | $ | 0.02 | $ | \u2014 | |||||
Basic (loss) income per share | $ | (5.10 | ) | $ | (5.56 | ) | $ | 3.22 | ||||
Diluted (loss) earnings per share: | ||||||||||||
Continuing operations | $ | (4.81 | ) | $ | (5.57 | ) | $ | 3.20 | ||||
Discontinued operations(1) | $ | (0.28 | ) | $ | 0.02 | $ | \u2014 | |||||
Diluted (loss) income per share | $ | (5.10 | ) | $ | (5.56 | ) | $ | 3.20 | ||||
Anti-dilutive stock-based awards excluded from the calculation of diluted earnings per share | 3,649 | 3,434 | 93 |
(in thousands, except per share data) | 2020 | 2019 | 2018 | |||||||||
Basic weighted average shares outstanding | 53,778 | 51,245 | 50,530 | |||||||||
Net effect of dilutive stock awards based upon the treasury stock method | \u2014 | \u2014 | 307 | |||||||||
Diluted weighted average shares outstanding | 53,778 | 51,245 | 50,837 | |||||||||
Basic (loss) earnings per share: | ||||||||||||
Continuing operations | $ | (4.81 | ) | $ | (5.57 | ) | $ | 3.22 | ||||
Discontinued operations | $ | (0.28 | ) | $ | 0.02 | $ | \u2014 | |||||
Basic (loss) income per share | $ | (5.10 | ) | $ | (5.56 | ) | $ | 3.22 | ||||
Diluted (loss) earnings per share: | ||||||||||||
Continuing operations | $ | (4.81 | ) | $ | (5.57 | ) | $ | 3.20 | ||||
Discontinued operations(1) | $ | (0.28 | ) | $ | 0.02 | $ | \u2014 | |||||
Diluted (loss) income per share | $ | (5.10 | ) | $ | (5.56 | ) | $ | 3.20 | ||||
Anti-dilutive stock-based awards excluded from the calculation of diluted earnings per share | 3,649 | 3,434 | 93 |
(in thousands) | 2020 | 2019 | 2018 | |||||||||
Net sales: | ||||||||||||
Wholesale(1) | $ | 25,496,597 | $ | 21,530,183 | $ | 10,169,840 | ||||||
Retail | 2,330,694 | 1,653,596 | \u2014 | |||||||||
Other | 227,984 | 234,838 | 228,465 | |||||||||
Eliminations | (1,541,008 | ) | (1,111,161 | ) | (171,622 | ) | ||||||
Total Net sales | $ | 26,514,267 | $ | 22,307,456 | $ | 10,226,683 | ||||||
Continuing operations Adjusted EBITDA: | ||||||||||||
Wholesale | 591,028 | 462,996 | 343,104 | |||||||||
Retail | 86,401 | 34,149 | \u2014 | |||||||||
Other | (15,903 | ) | 41,918 | 12,337 | ||||||||
Eliminations | (2,464 | ) | (1,162 | ) | 3,425 | |||||||
Adjustments: | ||||||||||||
Net income attributable to noncontrolling interests | 4,929 | 107 | \u2014 | |||||||||
Total other expense, net | (148,839 | ) | (144,685 | ) | (14,480 | ) | ||||||
Depreciation and amortization | (281,535 | ) | (247,746 | ) | (87,631 | ) | ||||||
Share-based compensation | (33,689 | ) | (40,495 | ) | (25,783 | ) | ||||||
Restructuring, impairment, acquisition, and integration related expenses | (86,383 | ) | (148,195 | ) | (9,738 | ) | ||||||
Goodwill and asset impairment | (425,405 | ) | (292,770 | ) | (11,242 | ) | ||||||
(Loss) gain on sale of assets | (17,132 | ) | 499 | \u2014 | ||||||||
Note receivable and lost customer bankruptcy charge | (12,516 | ) | \u2014 | \u2014 | ||||||||
Inventory fair value adjustment | \u2014 | (10,463 | ) | \u2014 | ||||||||
Legal reserve charge | (1,196 | ) | 1,390 | \u2014 | ||||||||
Other retail expense | (1,750 | ) | \u2014 | \u2014 | ||||||||
(Loss) income from continuing operations before income taxes | $ | (344,454 | ) | $ | (344,457 | ) | $ | 209,992 | ||||
Depreciation and amortization: | ||||||||||||
Wholesale | $ | 267,236 | $ | 227,946 | $ | 84,971 | ||||||
Retail | 3,493 | 6,430 | \u2014 | |||||||||
Other | 10,806 | 13,370 | 2,660 | |||||||||
Total depreciation and amortization | $ | 281,535 | $ | 247,746 | $ | 87,631 | ||||||
Capital expenditures: | ||||||||||||
Wholesale | $ | 159,758 | $ | 206,812 | $ | 43,402 | ||||||
Retail | 12,344 | 20,660 | \u2014 | |||||||||
Other | 466 | 1,005 | 1,206 | |||||||||
Total capital expenditures | $ | 172,568 | $ | 228,477 | $ | 44,608 |
(1) | As presented in Note 3\u2014Revenue Recognition, for fiscal 2020 and 2019, the Company recorded $1,319 million and $937 million, respectively, within Net sales in its Wholesale reportable segment attributable to Wholesale sales to its Retail segment that have been eliminated upon consolidation. For fiscal 2020 and 2019, the Company recorded $0.0 million and $12.4 million, respectively, within Net sales in its Wholesale reportable segment attributable to discontinued operations inter-company product purchases for certain retail banners it sold with a supply agreement. |
(in thousands) | August 1, 2020 | August 3, 2019 | ||||||
Assets: | ||||||||
Wholesale | $ | 6,588,836 | $ | 6,246,306 | ||||
Retail | 542,470 | 545,050 | ||||||
Other | 501,468 | 362,100 | ||||||
Eliminations | (54,784 | ) | (45,072 | ) | ||||
Total assets of continuing operations | $ | 7,577,990 | $ | 7,108,384 |
(in thousands) | 2020 | 2019 | 2018 | |||||||||
Net sales: | ||||||||||||
Wholesale(1) | $ | 25,496,597 | $ | 21,530,183 | $ | 10,169,840 | ||||||
Retail | 2,330,694 | 1,653,596 | \u2014 | |||||||||
Other | 227,984 | 234,838 | 228,465 | |||||||||
Eliminations | (1,541,008 | ) | (1,111,161 | ) | (171,622 | ) | ||||||
Total Net sales | $ | 26,514,267 | $ | 22,307,456 | $ | 10,226,683 | ||||||
Continuing operations Adjusted EBITDA: | ||||||||||||
Wholesale | 591,028 | 462,996 | 343,104 | |||||||||
Retail | 86,401 | 34,149 | \u2014 | |||||||||
Other | (15,903 | ) | 41,918 | 12,337 | ||||||||
Eliminations | (2,464 | ) | (1,162 | ) | 3,425 | |||||||
Adjustments: | ||||||||||||
Net income attributable to noncontrolling interests | 4,929 | 107 | \u2014 | |||||||||
Total other expense, net | (148,839 | ) | (144,685 | ) | (14,480 | ) | ||||||
Depreciation and amortization | (281,535 | ) | (247,746 | ) | (87,631 | ) | ||||||
Share-based compensation | (33,689 | ) | (40,495 | ) | (25,783 | ) | ||||||
Restructuring, impairment, acquisition, and integration related expenses | (86,383 | ) | (148,195 | ) | (9,738 | ) | ||||||
Goodwill and asset impairment | (425,405 | ) | (292,770 | ) | (11,242 | ) | ||||||
(Loss) gain on sale of assets | (17,132 | ) | 499 | \u2014 | ||||||||
Note receivable and lost customer bankruptcy charge | (12,516 | ) | \u2014 | \u2014 | ||||||||
Inventory fair value adjustment | \u2014 | (10,463 | ) | \u2014 | ||||||||
Legal reserve charge | (1,196 | ) | 1,390 | \u2014 | ||||||||
Other retail expense | (1,750 | ) | \u2014 | \u2014 | ||||||||
(Loss) income from continuing operations before income taxes | $ | (344,454 | ) | $ | (344,457 | ) | $ | 209,992 | ||||
Depreciation and amortization: | ||||||||||||
Wholesale | $ | 267,236 | $ | 227,946 | $ | 84,971 | ||||||
Retail | 3,493 | 6,430 | \u2014 | |||||||||
Other | 10,806 | 13,370 | 2,660 | |||||||||
Total depreciation and amortization | $ | 281,535 | $ | 247,746 | $ | 87,631 | ||||||
Capital expenditures: | ||||||||||||
Wholesale | $ | 159,758 | $ | 206,812 | $ | 43,402 | ||||||
Retail | 12,344 | 20,660 | \u2014 | |||||||||
Other | 466 | 1,005 | 1,206 | |||||||||
Total capital expenditures | $ | 172,568 | $ | 228,477 | $ | 44,608 |
(in thousands) | August 1, 2020 | August 3, 2019 | ||||||
Assets: | ||||||||
Wholesale | $ | 6,588,836 | $ | 6,246,306 | ||||
Retail | 542,470 | 545,050 | ||||||
Other | 501,468 | 362,100 | ||||||
Eliminations | (54,784 | ) | (45,072 | ) | ||||
Total assets of continuing operations | $ | 7,577,990 | $ | 7,108,384 |
(in thousands) | 2020 | 2019(1) (41 weeks) | ||||||
Net sales | $ | 228,523 | $ | 440,450 | ||||
Cost of sales | 162,099 | 312,200 | ||||||
Gross profit | 66,424 | 128,250 | ||||||
Operating expenses | 52,625 | 105,981 | ||||||
Restructuring expenses and charges | 33,470 | 24,944 | ||||||
Operating loss | (19,671 | ) | (2,675 | ) | ||||
Other (income) expense, net | (4 | ) | 150 | |||||
Loss from discontinued operations before income taxes | (19,667 | ) | (2,825 | ) | ||||
Benefit for income taxes | (4,465 | ) | (3,723 | ) | ||||
(Loss) income from discontinued operations, net of tax | $ | (15,202 | ) | $ | 898 |
(1) | These results reflect retail operations from the Supervalu acquisition date of October 22, 2018 to August\u00a03, 2019. |
(in thousands) | August\u00a01, 2020 | August\u00a03, 2019 | ||||||
Current assets | ||||||||
\u00a0\u00a0\u00a0\u00a0Cash and cash equivalents | $ | 119 | $ | 799 | ||||
\u00a0\u00a0\u00a0\u00a0Receivables, net | 350 | 158 | ||||||
\u00a0\u00a0\u00a0\u00a0Inventories | 4,233 | 18,885 | ||||||
\u00a0\u00a0\u00a0\u00a0Other current assets | 365 | 1,152 | ||||||
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total current assets of discontinued operations | 5,067 | 20,994 | ||||||
Long-term assets | ||||||||
\u00a0\u00a0\u00a0\u00a0Property and equipment | 3,450 | 44,489 | ||||||
\u00a0\u00a0\u00a0\u00a0Other assets | 465 | 468 | ||||||
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total long-term assets of discontinued operations | 3,915 | 44,957 | ||||||
Total assets of discontinued operations | $ | 8,982 | $ | 65,951 | ||||
Current liabilities | ||||||||
\u00a0\u00a0\u00a0\u00a0Accounts payable | $ | 3,613 | $ | 6,181 | ||||
\u00a0\u00a0\u00a0\u00a0Accrued compensation and benefits | 4,501 | 3,637 | ||||||
\u00a0\u00a0\u00a0\u00a0Other current liabilities | 3,324 | 5,699 | ||||||
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total current liabilities of discontinued operations | 11,438 | 15,517 | ||||||
Long-term liabilities | ||||||||
\u00a0\u00a0\u00a0\u00a0Other long-term liabilities | 1,738 | 770 | ||||||
Total liabilities of discontinued operations | 13,176 | 16,287 | ||||||
Net (liabilities) assets of discontinued operations | $ | (4,194 | ) | $ | 49,664 |
(in thousands) | August\u00a01, 2020 | August\u00a03, 2019 | ||||||
Current assets | ||||||||
\u00a0\u00a0\u00a0\u00a0Cash and cash equivalents | $ | 119 | $ | 799 | ||||
\u00a0\u00a0\u00a0\u00a0Receivables, net | 350 | 158 | ||||||
\u00a0\u00a0\u00a0\u00a0Inventories | 4,233 | 18,885 | ||||||
\u00a0\u00a0\u00a0\u00a0Other current assets | 365 | 1,152 | ||||||
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total current assets of discontinued operations | 5,067 | 20,994 | ||||||
Long-term assets | ||||||||
\u00a0\u00a0\u00a0\u00a0Property and equipment | 3,450 | 44,489 | ||||||
\u00a0\u00a0\u00a0\u00a0Other assets | 465 | 468 | ||||||
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total long-term assets of discontinued operations | 3,915 | 44,957 | ||||||
Total assets of discontinued operations | $ | 8,982 | $ | 65,951 | ||||
Current liabilities | ||||||||
\u00a0\u00a0\u00a0\u00a0Accounts payable | $ | 3,613 | $ | 6,181 | ||||
\u00a0\u00a0\u00a0\u00a0Accrued compensation and benefits | 4,501 | 3,637 | ||||||
\u00a0\u00a0\u00a0\u00a0Other current liabilities | 3,324 | 5,699 | ||||||
\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total current liabilities of discontinued operations | 11,438 | 15,517 | ||||||
Long-term liabilities | ||||||||
\u00a0\u00a0\u00a0\u00a0Other long-term liabilities | 1,738 | 770 | ||||||
Total liabilities of discontinued operations | 13,176 | 16,287 | ||||||
Net (liabilities) assets of discontinued operations | $ | (4,194 | ) | $ | 49,664 |
(in thousands) | 2020 | 2019(1) (41 weeks) | ||||||
Net sales | $ | 228,523 | $ | 440,450 | ||||
Cost of sales | 162,099 | 312,200 | ||||||
Gross profit | 66,424 | 128,250 | ||||||
Operating expenses | 52,625 | 105,981 | ||||||
Restructuring expenses and charges | 33,470 | 24,944 | ||||||
Operating loss | (19,671 | ) | (2,675 | ) | ||||
Other (income) expense, net | (4 | ) | 150 | |||||
Loss from discontinued operations before income taxes | (19,667 | ) | (2,825 | ) | ||||
Benefit for income taxes | (4,465 | ) | (3,723 | ) | ||||
(Loss) income from discontinued operations, net of tax | $ | (15,202 | ) | $ | 898 |
2020 | |||||||||||||||||||
(In thousands except per share data) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter(1) | Full Year(1) | ||||||||||||||
Net sales | $ | 6,296,612 | $ | 6,431,382 | $ | 7,031,718 | $ | 6,754,555 | $ | 26,514,267 | |||||||||
Gross profit | 907,211 | 917,325 | 1,050,232 | 1,000,024 | 3,874,792 | ||||||||||||||
Net (loss) income from continuing operations | (387,434 | ) | (13,984 | ) | 94,447 | 52,962 | (254,009 | ) | |||||||||||
(Loss) income from discontinued operations, net of tax | 4,026 | (16,076 | ) | (4,078 | ) | 926 | (15,202 | ) | |||||||||||
Net (loss) income including noncontrolling interests | (383,408 | ) | (30,060 | ) | 90,369 | 53,888 | (269,211 | ) | |||||||||||
Net (loss) income attributable to United Natural Foods, Inc. | (383,927 | ) | (30,710 | ) | 88,131 | 52,366 | (274,140 | ) | |||||||||||
Basic (loss) earnings per share: | \u00a0 | ||||||||||||||||||
Continuing operations | $ | (7.29 | ) | $ | (0.27 | ) | $ | 1.72 | $ | 0.94 | $ | (4.81 | ) | ||||||
Basic (loss) earnings per share | $ | (7.21 | ) | $ | (0.57 | ) | $ | 1.64 | $ | 0.96 | $ | (5.10 | ) | ||||||
Diluted (loss) earnings per share: | |||||||||||||||||||
Continuing operations | $ | (7.29 | ) | $ | (0.27 | ) | $ | 1.67 | $ | 0.88 | $ | (4.81 | ) | ||||||
Diluted (loss) earnings per share | $ | (7.21 | ) | $ | (0.57 | ) | $ | 1.60 | $ | 0.89 | $ | (5.10 | ) |
(1) | Fiscal 2020 results reflect 52 weeks of operating results, as compared to fiscal 2019 53 weeks. The fourth quarter of fiscal 2020 includes 13 weeks and the fourth quarter of fiscal 2019 contains 14 weeks. |
2019 | |||||||||||||||||||
(In thousands except per share data) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||||
Net sales | 2,879,158 | 6,449,542 | 6,247,462 | 6,731,294 | $ | 22,307,456 | |||||||||||||
Gross profit | 419,367 | 898,087 | 922,173 | 968,979 | 3,208,606 | ||||||||||||||
Net income from continuing operations | (19,579 | ) | (344,241 | ) | 56,493 | 21,806 | (285,521 | ) | |||||||||||
Income from discontinued operations, net of tax | 288 | 2,345 | 651 | (2,386 | ) | 898 | |||||||||||||
Net income (loss) including noncontrolling interests | (19,291 | ) | (341,896 | ) | 57,144 | 19,420 | (284,623 | ) | |||||||||||
Net income (loss) attributable to United Natural Foods, Inc. | (19,294 | ) | (341,725 | ) | 57,092 | 19,197 | (284,730 | ) | |||||||||||
Basic earnings per share: | \u00a0 | ||||||||||||||||||
Continuing operations | $ | (0.39 | ) | $ | (6.77 | ) | $ | 1.11 | $ | 0.41 | $ | (5.57 | ) | ||||||
Basic income (loss) per share | $ | (0.38 | ) | $ | (6.72 | ) | $ | 1.12 | $ | 0.36 | $ | (5.56 | ) | ||||||
Diluted earnings per share: | |||||||||||||||||||
Continuing operations | $ | (0.39 | ) | $ | (6.77 | ) | $ | 1.11 | $ | 0.41 | $ | (5.57 | ) | ||||||
Diluted income (loss) per share | $ | (0.38 | ) | $ | (6.72 | ) | $ | 1.12 | $ | 0.36 | $ | (5.56 | ) |
2020 | |||||||||||||||||||
(In thousands except per share data) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter(1) | Full Year(1) | ||||||||||||||
Net sales | $ | 6,296,612 | $ | 6,431,382 | $ | 7,031,718 | $ | 6,754,555 | $ | 26,514,267 | |||||||||
Gross profit | 907,211 | 917,325 | 1,050,232 | 1,000,024 | 3,874,792 | ||||||||||||||
Net (loss) income from continuing operations | (387,434 | ) | (13,984 | ) | 94,447 | 52,962 | (254,009 | ) | |||||||||||
(Loss) income from discontinued operations, net of tax | 4,026 | (16,076 | ) | (4,078 | ) | 926 | (15,202 | ) | |||||||||||
Net (loss) income including noncontrolling interests | (383,408 | ) | (30,060 | ) | 90,369 | 53,888 | (269,211 | ) | |||||||||||
Net (loss) income attributable to United Natural Foods, Inc. | (383,927 | ) | (30,710 | ) | 88,131 | 52,366 | (274,140 | ) | |||||||||||
Basic (loss) earnings per share: | \u00a0 | ||||||||||||||||||
Continuing operations | $ | (7.29 | ) | $ | (0.27 | ) | $ | 1.72 | $ | 0.94 | $ | (4.81 | ) | ||||||
Basic (loss) earnings per share | $ | (7.21 | ) | $ | (0.57 | ) | $ | 1.64 | $ | 0.96 | $ | (5.10 | ) | ||||||
Diluted (loss) earnings per share: | |||||||||||||||||||
Continuing operations | $ | (7.29 | ) | $ | (0.27 | ) | $ | 1.67 | $ | 0.88 | $ | (4.81 | ) | ||||||
Diluted (loss) earnings per share | $ | (7.21 | ) | $ | (0.57 | ) | $ | 1.60 | $ | 0.89 | $ | (5.10 | ) |
(1) | Fiscal 2020 results reflect 52 weeks of operating results, as compared to fiscal 2019 53 weeks. The fourth quarter of fiscal 2020 includes 13 weeks and the fourth quarter of fiscal 2019 contains 14 weeks. |
2019 | |||||||||||||||||||
(In thousands except per share data) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Full Year | ||||||||||||||
Net sales | 2,879,158 | 6,449,542 | 6,247,462 | 6,731,294 | $ | 22,307,456 | |||||||||||||
Gross profit | 419,367 | 898,087 | 922,173 | 968,979 | 3,208,606 | ||||||||||||||
Net income from continuing operations | (19,579 | ) | (344,241 | ) | 56,493 | 21,806 | (285,521 | ) | |||||||||||
Income from discontinued operations, net of tax | 288 | 2,345 | 651 | (2,386 | ) | 898 | |||||||||||||
Net income (loss) including noncontrolling interests | (19,291 | ) | (341,896 | ) | 57,144 | 19,420 | (284,623 | ) | |||||||||||
Net income (loss) attributable to United Natural Foods, Inc. | (19,294 | ) | (341,725 | ) | 57,092 | 19,197 | (284,730 | ) | |||||||||||
Basic earnings per share: | \u00a0 | ||||||||||||||||||
Continuing operations | $ | (0.39 | ) | $ | (6.77 | ) | $ | 1.11 | $ | 0.41 | $ | (5.57 | ) | ||||||
Basic income (loss) per share | $ | (0.38 | ) | $ | (6.72 | ) | $ | 1.12 | $ | 0.36 | $ | (5.56 | ) | ||||||
Diluted earnings per share: | |||||||||||||||||||
Continuing operations | $ | (0.39 | ) | $ | (6.77 | ) | $ | 1.11 | $ | 0.41 | $ | (5.57 | ) | ||||||
Diluted income (loss) per share | $ | (0.38 | ) | $ | (6.72 | ) | $ | 1.12 | $ | 0.36 | $ | (5.56 | ) |