Financial Analysis

NOTE 15COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS Guarantees and Contingent Liabilities The Company has outstanding guarantees related to certain lease obligations of various retailers as of May 2, 2026. These guarantees were generally made to support the business growth of wholesale customers. The guarantees are generally for the entire terms of the leases with remaining terms that range from less than one year to nine years, with a weighted average remaining term of approximately five years. For each guarantee issued, if the wholesale customer or other third-party defaults on a payment, the Company would be required to make payments under its guarantee. Generally, the guarantees are secured by indemnification agreements or personal guarantees. The Company reviews performance risk related to its guarantee obligations based on internal measures of credit performance. As of May 2, 2026, the maximum amount of undiscounted payments the Company would be required to make in the event of default of all guarantees was $8 million ($7 million on a discounted basis). Based on the indemnification agreements, personal guarantees and results of the reviews of performance risk, as of May 2, 2026, the Company has recorded a de minimis total estimated loss in the Condensed Consolidated Balance Sheets. The Company is a party to a variety of contractual agreements under which it may be obligated to indemnify the other party for certain matters in the ordinary course of busin …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 9LONG-TERM DEBT The Companys long-term debt consisted of the following: (in millions) Average Interest Rate at May 2, 2026 Fiscal Maturity Year May 2, 2026 August 2, 2025 Term Loan Facility (1) 8.40% 2031 $ 371 $ 383 ABL Credit Facility (2) 4.90% 2031 929 999 Senior Notes (3) 6.75% 2029 385 500 Debt issuance costs, net (16) (13) Original issue discount on debt (6) (7) Long-term debt, including current portion 1,663 1,862 Less: current portion of long-term debt (3) (3) Long-term debt $ 1,660 $ 1,859 (1) Face value before debt issuance costs of $4 million and $4 million, respectively, and an original issue discount on debt of $6 million and $7 million, respectively. (2) Face value before debt issuance costs of $9 million and $5 million, respectively. (3) Face value before debt issuance costs of $3 million and $4 million, respectively. Term Loan Facility The term loan agreement dated as of October 22, 2018 (as amended, the Term Loan Agreement) provides for a senior secured first lien term loan (the Term Loan Facility) in an initial principal amount of $500 million, which is scheduled to mature on May 1, 2031, with a springing maturity of 91 days prior to the maturity of the Senior Notes (defined below), in the event that at least $100 million in principal amount outstanding of such Senior Notes remains outstanding on such date. The obligations under the Term Loan Facility are guaranteed by most of the Companys wholly owned subsidiaries, subject to customary exceptions and l …

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NOTE 7FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS Recurring Fair Value Measurements The following tables provide the fair value hierarchy for financial assets and liabilities measured on a recurring basis: Condensed Consolidated Balance Sheets Location Fair Value at May 2, 2026 (in millions) Level 1 Level 2 Level 3 Assets: Fuel derivatives designated as hedging instruments Prepaid expenses and other current assets $ $ 5 $ Interest rate swaps designated as hedging instruments Other long-term assets $ $ 1 $ Liabilities: Interest rate swaps designated as hedging instruments Accrued expenses and other current liabilities $ $ 1 $ Condensed Consolidated Balance Sheets Location Fair Value at August 2, 2025 (in millions) Level 1 Level 2 Level 3 Assets: Interest rate swaps designated as hedging instruments Prepaid expenses and other current assets $ $ 1 $ Liabilities: Interest rate swaps designated as hedging instruments Other long-term liabilities $ $ 3 $ Interest Rate Swap Contracts The fair values of interest rate swap contracts are measured using Level 2 inputs. The interest rate swap contracts are valued using an income approach interest rate swap valuation model incorporating observable market inputs including interest rates, Secured Overnight Financing Rate (SOFR) swap rates and credit default swap rates. As of May 2, 2026, a 100-basis point increase in forward SOFR interest rates would increase the fair value of the interest rate swaps by approximately $7 million; a 100-b …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE 6GOODWILL AND INTANGIBLE ASSETS, NET The Companys Goodwill balance as of May 2, 2026 and August 2, 2025 was $19 million, net of accumulated goodwill impairment charges of $727 million, and was only attributable to the Natural reporting unit. There were no goodwill impairment charges during fiscal 2026 and 2025 year-to-date. Changes in the carrying value of Goodwill for fiscal 2026 and 2025 year-to-date were immaterial and due to changes in foreign exchange rates. Identifiable intangible assets, net consisted of the following: May 2, 2026 August 2, 2025 (in millions) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Amortizing intangible assets: Customer relationships $ 1,007 $ 516 $ 491 $ 1,007 $ 472 $ 535 Pharmacy prescription files 33 33 33 32 1 Operating lease intangibles 3 3 3 3 Trademarks and tradenames 85 75 10 85 70 15 Total amortizing intangible assets 1,128 627 501 1,128 577 551 Indefinite lived intangible assets: Trademarks and tradenames 25 25 25 25 Intangibles assets, net $ 1,153 $ 627 $ 526 $ 1,153 $ 577 $ 576 Amortization expense was $16 million and $17 million for the third quarters of fiscal 2026 and 2025, respectively, and $50 million and $53 million for fiscal 2026 and 2025 year-to-date, respectively. The estimated future amortization expense for each of the next five fiscal years and thereafter on amortizing intangible assets existing as of May 2, 2026 is as shown below: Fiscal Year: (in millions) Rem …

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NOTE 12INCOME TAXES The effective tax rate for the third quarter of fiscal 2026 was an expense rate of 21.4% on pre-tax income compared to a benefit rate of 56.3% on pre-tax loss for the third quarter of fiscal 2025. The change from the third quarter of fiscal 2025 is primarily driven by the impact of a partnership investment entered into in the third quarter of fiscal 2025, as well as a decrease in the discrete tax benefit for return to provision tax credits in the third quarter of fiscal 2026 compared to fiscal 2025, combined with an increase in pre-tax income for the third quarter of fiscal 2026. The primary driver for the variation between the Companys statutory tax rate and its effective tax rate was discrete tax benefits resulting from return to provision tax credits. The effective tax rate for fiscal 2026 year-to-date was an expense rate of 12.5% on pre-tax income compared to a benefit rate of 35.6% on pre-tax loss for fiscal 2025 year-to-date. The change from fiscal 2025 year-to-date is primarily driven by the increase in pre-tax income, discrete tax benefits from favorable tax audit settlements and employee stock award vestings during fiscal 2026, as well as the tax credit benefit of a solar array placed in service during the first quarter of fiscal 2026. The primary drivers for the variation between the Companys statutory tax rate and its effective tax rate were favorable audit settlements, discrete tax benefits resulting from employee stock award vestings and retur …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recently Issued Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 requires disclosure of specific categories in the rate reconciliation and additional information for reconciling items that meet a quantitative threshold. The amendments also require disclosure on an annual basis of income taxes paid disaggregated by federal, state and foreign taxes as well as the amount of income taxes paid by individual jurisdiction. In addition, the amendments require disclosures of disaggregated pretax income and income tax expense and remove the requirement to disclose certain items that are no longer considered cost beneficial or relevant. The Company is required to adopt the amendments in this update in fiscal 2026. Early adoption is permitted. The amendments in this update should be applied on a prospective basis but can also be applied retrospectively. The Company continues to evaluate the impact of adopting the amendments in this update on its consolidated financial statements. Other than the new annual disclosure requirements, the ASU is not expected to have a significant impact on the Companys consolidated financial statements. In November 2024, the FASB issued ASU 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses . ASU 2024-03 requires disclosure on an annual and interim basis, in …

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NOTE 11BENEFIT PLANS Net periodic benefit (income) costs for defined benefit pension plans consisted of the following: 13-Week Period Ended 39-Week Period Ended (in millions) May 2, 2026 May 3, 2025 May 2, 2026 May 3, 2025 Interest cost $ 17 $ 17 $ 50 $ 53 Expected return on plan assets (23) (23) (68) (69) Net periodic benefit income $ (6) $ (6) $ (18) $ (16) Other postretirement benefits costs for the third quarters and year-to-date fiscal 2026 and 2025 were de minimis. Contributions No cash pension contributions are required to be made to the SUPERVALU INC. Retirement Plan under the Employee Retirement Income Security Act of 1974, as amended (ERISA), in fiscal 2026. The Company expects to contribute approximately $1 million to its other defined benefit pension plans and $1 million to its postretirement benefit plans in fiscal 2026. Contributions for the third quarters and year-to-date fiscal 2026 and 2025 were de minimis. Multiemployer Pension Plans The Company contributed $12 million in the third quarters of fiscal 2026 and 2025, and $35 million and $37 million in fiscal 2026 and 2025 year-to-date, respectively, to multiemployer pension plans, which contributions are included within Operating expenses. …

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NOTE 4RESTRUCTURING, ACQUISITION AND INTEGRATION RELATED EXPENSES The Companys restructuring initiatives include optimization of its distribution center network, cost structure and retail footprint. The Company is unable to estimate the total amount of costs expected to be incurred in connection with the restructuring activities given their nature, including the consideration of multiple scenarios for the disposal of non-operating real estate. Restructuring, acquisition and integration related expenses were as follows: 13-Week Period Ended 39-Week Period Ended (in millions) May 2, 2026 May 3, 2025 May 2, 2026 May 3, 2025 Restructuring and integration costs $ 3 $ 12 $ 20 $ 28 Closed property charges and costs, net 7 2 20 7 Total Restructuring, acquisition and integration related expenses $ 10 $ 14 $ 40 $ 35 Restructuring and Integration Costs Restructuring and integration costs for fiscal 2026 year-to-date primarily include an adjustment to previously recorded multiemployer pension plan withdrawal liabilities and costs associated with certain employee severance and other employee separation costs related to strategic retail store closures and distribution network optimization. Restructuring and integration costs for fiscal 2025 year-to-date primarily include costs associated with certain employee severance and other employee separation costs related to the Companys strategic initiatives focused on optimizing our cost structure and better aligning corporate resources, and strat …

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NOTE 3REVENUE RECOGNITION The Company serves customers in the United States and Canada, as well as customers located in other countries. However, all of the Companys revenue is earned in the United States and Canada, and international distribution occurs through freight-forwarders. The Company does not have any performance obligations on international shipments subsequent to delivery to the domestic port. The Company disaggregates revenue by business division based on product and service offerings and determined that disaggregating revenue at the segment level achieves the disclosure objective to depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Refer to Note 14Business Segments for Net sales by reportable segment. Accounts and Notes Receivable Balances Accounts and notes receivable are as follows: (in millions) May 2, 2026 August 2, 2025 Customer accounts receivable $ 943 $ 1,062 Allowance for uncollectible receivables (34) (37) Other receivables, net 64 68 Accounts receivable, net $ 973 $ 1,093 Notes receivable, net, included within Prepaid expenses and other current assets $ 2 $ 2 Long-term notes receivable, net, included within Other long-term assets $ 13 $ 7 In fiscal 2023, the Company entered into an agreement to sell, on a revolving basis, certain customer accounts receivable to a third-party financial institution. As of May 2, 2026, the agreement allows for the Company to sell up to a maximum amount of $5 …

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NOTE 14BUSINESS SEGMENTS As disclosed in the Annual Report, the Company updated its segment reporting structure effective for the fourth quarter of fiscal 2025 to reflect organizational changes and align with how the business is now operated and managed. The Company has three reportable segments: Natural, Conventional and Retail. Prior periods have been recast to conform to the new reportable operating segments. Reportable segments are reviewed on an annual basis, or more frequently if events or circumstances indicate a change in reportable segments has occurred. The Natural reportable segment is engaged in the wholesale distribution of natural, organic and specialty grocery and non-food products and services and includes the Companys portfolio of natural owned brands and natural and organic snack food manufacturing business. The Conventional reportable segment is engaged in the wholesale distribution of conventional grocery and non-food products and services and includes the Companys portfolio of conventional owned brands. The Retail reportable segment derives revenues from the sale of groceries and other products at the Companys grocery and liquor stores operating under the Cub Foods and Shoppers banners. Intersegment sales represent sales between the segments, which are eliminated in consolidation. Intersegment transactions are generally recorded at amounts that approximate market value. The Companys Chief Operating Decision Maker (CODM) is the Chief Executive Officer. The …

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NOTE 10COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in Accumulated other comprehensive loss by component, net of tax, for fiscal 2026 year-to-date were as follows: (in millions) Other Cash Flow Derivatives Benefit Plans Foreign Currency Translation Swap Agreements Total Accumulated other comprehensive loss at August 2, 2025 $ $ (16) $ (23) $ (3) $ (42) Other comprehensive income before reclassifications 4 1 3 8 Amortization of amounts included in net periodic benefit income Amortization of cash flow hedges (1) (1) (2) Net current period Other comprehensive income 3 1 2 6 Accumulated other comprehensive income (loss) at May 2, 2026 $ 3 $ (16) $ (22) $ (1) $ (36) Changes in Accumulated other comprehensive loss by component, net of tax, for fiscal 2025 year-to-date were as follows: (in millions) Other Cash Flow Derivatives Benefit Plans Foreign Currency Translation Swap Agreements Total Accumulated other comprehensive loss at August 3, 2024 $ $ (22) $ (24) $ (1) $ (47) Other comprehensive income before reclassifications 1 4 5 Amortization of amounts included in net periodic benefit income 1 1 Amortization of cash flow hedges (1) (5) (6) Net current period Other comprehensive (loss) income (1) 1 1 (1) Accumulated other comprehensive loss at May 3, 2025 $ (1) $ (21) $ (23) $ (2) $ (47) Items reclassified out of Accumulated other comprehensive loss had the following impact on the Condensed Consolidated Statements of Operations: 13-Week Period Ended 3 …

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NOTE 16SUBSEQUENT EVENTS Subsequent to the end of the third quarter of fiscal 2026, the Company completed the sale of a surplus distribution center, which was previously classified as held for sale within Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. In connection with the sale, the Company expects to record an $18 million gain on sale within Loss on sale of assets and other asset charges in the Condensed Consolidated Statements of Operations in the fourth quarter of fiscal 2026. The Company used the proceeds from the sale of this property to repay borrowings under the ABL Credit Facility. …

SubsequentEventsTextBlock · excerpt; the full note is in the filing