Financial Analysis

NOTE 17COMMITMENTS, 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 August 1, 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 ten years, with a weighted average remaining term of approximately eight 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 August 1, 2026, the maximum amount of undiscounted payments the Company would be required to make in the event of default of all guarantees was $14 million ($11 million on a discounted basis). Based on the indemnification agreements, personal guarantees and results of the reviews of performance risk, as of August 1, 2026, the Company has recorded a de minimis total estimated loss in the 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 bus …

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 August 1, 2026 Fiscal Maturity Year August 1, 2026 August 2, 2025 Term Loan Facility (1) 7.73% 2031 $ 370 $ 383 ABL Credit Facility (2) 4.98% 2031 863 999 Senior Notes (3) 6.75% 2029 350 500 Debt issuance costs, net (15) (13) Original issue discount on debt (5) (7) Long-term debt, including current portion 1,563 1,862 Less: current portion of long-term debt (2) (3) Long-term debt $ 1,561 $ 1,859 (1) Face value before debt issuance costs of $5 million and $4 million, respectively and an original issue discount on debt of $5 million and $7 million, respectively. (2) Face value before debt issuance costs of $8 million and $5 million, respectively. (3) Face value before debt issuance costs of $2 million and $4 million, respectively. Future maturities of long-term debt, excluding debt issuance costs and original issue and purchase accounting discounts on debt, and contractual interest payments based on the face value and applicable interest rate as of August 1, 2026, consist of the following (in millions): Fiscal Year Long-term debt maturity Interest on long-term debt 2027 $ 4 $ 96 2028 4 96 2029 354 84 2030 4 73 2031 1,217 48 $ 1,583 $ 397 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 milli …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 12SHARE-BASED AWARDS As of August 1, 2026, the Company had restricted share unit (RSU) awards and performance-based restricted share unit (PSU) awards outstanding under the 2020 Equity Incentive Plan, as amended and restated from time to time (the 2020 Equity Incentive Plan). The terms of each stock-based award are determined by the Board of Directors or the Compensation Committee at the time of grant and in accordance with the Companys equity grant and settlement policy. As of August 1, 2026, the Company had 2.1 million shares authorized and available for grant under the 2020 Equity Incentive Plan. Share-Based Compensation Expense The following table presents information regarding share-based compensation expenses and the related tax impacts: (in millions) 2026 2025 2024 Restricted share unit awards (1) $ 41 $ 33 $ 33 Performance-based share awards 20 10 4 Share-based compensation expense recorded in Operating expenses 61 43 37 Income tax benefit (17) (12) (10) Share-based compensation expense, net of tax $ 44 $ 31 $ 27 Share-based compensation expense recorded in Restructuring, acquisition and integration related expenses $ $ $ 2 Income tax benefit (1) Share-based compensation expense recorded in Restructuring, acquisition and integration related expenses, net of tax $ $ $ 1 (1) Includes liability-classified awards of $14 million and equity-classified awards of $27 million for fiscal 2026, and liability-classified awards of $6 million and equity-classified awards of $2 …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

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: Fair Value at August 1, 2026 (in millions) Consolidated Balance Sheets Location Level 1 Level 2 Level 3 Assets: Fuel derivatives designated as hedging instruments Accounts receivable, net $ $ 1 $ Fuel derivatives designated as hedging instruments Prepaid expenses and other current assets $ $ 4 $ Interest rate swaps designated as hedging instruments Prepaid expenses and other current assets $ $ 1 $ Interest rate swaps designated as hedging instruments Other long-term assets $ $ 1 $ Fair Value at August 2, 2025 (in millions) Consolidated Balance Sheets Location 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. Refer to Note 8Derivatives for further information on interest rate swap contracts. Fuel Supply Agreements and Derivative …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

NOTE 6GOODWILL AND INTANGIBLE ASSETS, NET The Company has four goodwill reporting units: Natural, Conventional and Retail, which are each separate operating and reportable segments; and Woodstock Farms, which does not meet the criteria of an operating segment and is reported within the Natural segment. In the fourth quarter of fiscal 2026, 2025 and 2024 the Company performed its annual goodwill impairment review and determined that it was more likely than not that the fair value of its reporting units exceeded their respective carrying values. No goodwill impairments were identified as a result of this annual test. Goodwill and Intangible Assets Changes The Companys Goodwill balance as of August 1, 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, 2025 or 2024. Changes in the carrying value of Goodwill for fiscal 2026 and fiscal 2025 were immaterial and due to changes in foreign exchange rates. Identifiable intangible assets, net consisted of the following: 2026 2025 (in millions) Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Amortizing intangible assets: Customer relationships $ 1,007 $ 530 $ 477 $ 1,007 $ 472 $ 535 Pharmacy prescription files 33 33 33 32 1 Operating lease intangibles 3 3 3 3 Trademarks and tradenames 84 77 7 85 70 15 Total amortizi …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 14INCOME TAXES Income Tax Expense (Benefit) The domestic and foreign components of income (loss) before income taxes were as follows: (in millions) 2026 2025 2024 U.S. operations $ 90 $ (163) $ (145) Foreign operations 12 9 8 Total $ 102 $ (154) $ (137) The income tax expense (benefit) was allocated as follows: (in millions) 2026 2025 2024 Income tax expense (benefit) $ 18 $ (39) $ (27) Other comprehensive income (loss) 2 2 (6) Total $ 20 $ (37) $ (33) Total income tax expense (benefit) consisted of the following: (in millions) 2026 2025 2024 Current: U.S. Federal $ (14) $ 11 $ 15 State and Local 2 3 5 Foreign 3 3 2 Total current (9) 17 22 Deferred: U.S. Federal 17 (42) (41) State and Local 10 (14) (8) Foreign Total deferred 27 (56) (49) Total $ 18 $ (39) $ (27) As a result of the adoption of ASU 2023-09, certain items in the effective tax rate reconciliation have been reclassified between categories to conform with current period presentation. These reclassifications did not have a material impact on any individual line items or the overall effective income tax rate. The reconciliation of the provision for income taxes at the U.S. federal income tax rate to the Companys income tax provision for the fiscal years 2026, 2025 and 2024 is as follows: 2026 2025 2024 (in millions, except percentages) Amount Percent Amount Percent Amount Percent U.S. federal statutory income tax rate $ 22 21.0 % $ (32) 21.0 % $ (29) 21.0 % State and local income tax, net of federal income tax e …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 11LEASES The Company leases certain of its distribution centers, retail stores, office facilities, transportation equipment and other operating equipment from third parties. Many of these leases include renewal options. The Companys lease agreements do not contain any material residual value guarantees or material restrictive covenants. Lease assets and liabilities, net, are as follows (in millions): Lease Type Consolidated Balance Sheets Location August 1, 2026 August 2, 2025 Operating lease assets Operating lease assets $ 1,334 $ 1,474 Finance lease assets Property and equipment, net 12 15 Total lease assets $ 1,346 $ 1,489 Operating liabilities Current portion of operating lease liabilities $ 143 $ 173 Finance liabilities Current portion of long-term debt and finance lease liabilities 3 5 Operating liabilities Long-term operating lease liabilities 1,316 1,400 Finance liabilities Long-term finance lease liabilities 10 11 Total lease liabilities $ 1,472 $ 1,589 During fiscal 2025, the Company entered into a lease agreement for a new distribution center in Sarasota, Florida. We recognized a $118 million right-of-use asset and operating lease liability for this distribution center in the Consolidated Balance Sheets upon its commencement in the first quarter of fiscal 2025. The Companys lease cost under ASC 842 is as follows (in millions): Lease Expense Type Consolidated Statements of Operations Location 2026 2025 2024 Operating lease cost Operating expenses $ 280 $ 316 $ …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently Adopted Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (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 adopted this standard in the fourth quarter of fiscal 2026 on a retrospective basis, which resulted in additional disclosures in the notes to the consolidated financial statements. Refer to Note 14Income Taxes for additional information. Recently Issued Accounting Pronouncements 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 the notes to the financial statements, of disaggregated information about specific categories underlying certain income statement expense line items. The Company is requir …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

NOTE 13BENEFIT PLANS The Companys employees who participate are covered by various contributory and non-contributory pension, 401(k) plans, and other health and welfare benefits. The Companys primary defined benefit pension plans are the SUPERVALU INC. Retirement Plan and certain supplemental executive retirement plans. All of these plans are closed to new participants. Service crediting in the SUPERVALU INC. Retirement Plan ended for all participants as of December 31, 2007, and pay increases were reflected in the amount of benefits accrued in this plan until December 31, 2012. Approximately 56% of the 11,341 union employees participate in multiemployer defined benefit pension plans under collective bargaining agreements. The remaining either participate in plans sponsored by the Company or are not currently eligible to participate in a retirement plan. In addition to sponsoring both defined benefit and defined contribution pension plans, the Company provides healthcare and life insurance benefits for eligible retired employees under postretirement benefit plans. The Company also provides certain health and welfare benefits, including short-term and long-term disability benefits, to inactive disabled employees prior to retirement. The terms of the postretirement benefit plans vary based on employment history, age and date of retirement. For many retirees, the Company provides a fixed dollar contribution and retirees pay contributions to fund the remaining cost. Defined Benef …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

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. The Company did not incur any acquisition or integration related expenses in any of the periods presented. Restructuring expenses were as follows: (in millions) 2026 2025 2024 Severance and other labor-related costs 24 30 30 Closed property charges and costs, net 28 11 6 Contract termination charges and costs $ $ 53 $ Total Restructuring, acquisition and integration related expenses $ 52 $ 94 $ 36 Severance and Other Labor-Related Costs Restructuring costs for fiscal 2026 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, strategic retail store closures and distribution network optimization and adjustments to previously recorded multiemployer pension plan withdrawal liabilities. Restructuring costs for fiscal 2025 primarily include costs associated with certain employee severance and other employee separation costs related to the Companys strategic initiatives …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 3REVENUE RECOGNITION Product sales The Company enters into wholesale customer distribution agreements that provide terms and conditions of our order fulfillment. The Companys distribution agreements often specify levels of required minimum purchases in order to earn certain rebates or incentives. Certain contracts include rebates and other forms of variable consideration, including consideration payable to the customer up-front, over time or at the end of a contract term. Many of the Companys contracts with customers outline various other promises to be performed in conjunction with the sale of product. The Company determined that these promises provided are immaterial within the overall context of the respective contract, and as such has not allocated the transaction price to these obligations. In transactions for goods or services where the Company engages third parties to participate in its order fulfillment process, it evaluates whether it is the principal or an agent in the transaction. The Companys analysis considers whether it controls the goods or services before they are transferred to its customer, including an evaluation of whether the Company has the ability to direct the use of, and obtain substantially all the remaining benefits from, the specified good or service before it is transferred to the customer. Agent transactions primarily reflect circumstances where the Company is not involved in order fulfillment or where it is involved in the order fulfillment …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

NOTE 16BUSINESS SEGMENTS The Company has three reportable segments: Natural, Conventional and Retail. 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 food 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 food 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 Companys CODM uses segment Adjusted EBITDA as the measure of segment profitability to assess the performance and core business trends of each segment through regular review of financial information, and when making decisions about the allocation of resources to each segment. The Companys CODM uses segment Adjusted EBI …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 10COMPREHENSIVE INCOME (LOSS) AND ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in Accumulated other comprehensive loss by component, net of tax, for fiscal 2026, 2025 and 2024 are as follows: (in millions) Other Cash Flow Derivatives Benefit Plans Foreign Currency Swap Agreements Total Accumulated other comprehensive (loss) income at July 29, 2023 $ $ (21) $ (21) $ 14 $ (28) Other comprehensive (loss) income before reclassifications (2) (3) (3) (1) (9) Amortization of amounts included in net periodic benefit income 2 2 Amortization of cash flow hedges 2 (14) (12) Net current period Other comprehensive (loss) income (1) (3) (15) (19) Accumulated other comprehensive loss at August 3, 2024 $ $ (22) $ (24) $ (1) $ (47) Other comprehensive (loss) income before reclassifications (1) 5 1 4 9 Amortization of amounts included in net periodic benefit income 1 1 Amortization of cash flow hedges 1 (6) (5) Net current period Other comprehensive income (loss) 6 1 (2) 5 Accumulated other comprehensive loss at August 2, 2025 $ $ (16) $ (23) $ (3) $ (42) Other comprehensive income (loss) before reclassifications 5 (1) (1) 5 8 Amortization of amounts included in net periodic benefit income (1) (1) Amortization of cash flow hedges (2) (1) (3) Net current period Other comprehensive income (loss) 3 (2) (1) 4 4 Accumulated other comprehensive income (loss) at August 1, 2026 $ 3 $ (18) $ (24) $ 1 $ (38) Items reclassified out of Accumulated other comprehensive loss had the following impact on …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

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 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

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 …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

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 …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

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. …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

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 …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

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 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

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 …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

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 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

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. …

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