CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | ||
In Millions, except Per Share data | 3 Months Ended
May. 22, 2010 | 3 Months Ended
May. 23, 2009 |
Sales | $24,764 | $22,789 |
Merchandise costs, including advertising, warehousing, and transportation, excluding items shown separately below | 19,168 | 17,266 |
Operating, general and administrative | 4,195 | 4,026 |
Rent | 200 | 200 |
Depreciation and amortization | 478 | 453 |
Operating profit | 723 | 844 |
Interest expense | 132 | 163 |
Earnings before income tax expense | 591 | 681 |
Income tax expense | 216 | 250 |
Net earnings including noncontrolling interests | 375 | 431 |
Net earnings (loss) attributable to noncontrolling interests | 1 | (4) |
Net earnings attributable to The Kroger Co. | $374 | $435 |
Net earnings attributable to The Kroger Co. per basic common share (in dollars per share) | 0.58 | 0.67 |
Average number of common shares used in basic calculation (in shares) | 641 | 648 |
Net earnings attributable to The Kroger Co. per diluted common share (in dollars per share) | 0.58 | 0.66 |
Average number of common shares used in diluted calculation (in shares) | 645 | 651 |
Dividends declared per common share (in dollars per share) | 0.095 | 0.09 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Millions | 3 Months Ended
May. 22, 2010 | 12 Months Ended
Jan. 30, 2010 |
Current assets | ||
Cash and temporary cash investments | $602 | $424 |
Deposits in-transit | 675 | 654 |
Receivables | 828 | 909 |
FIFO inventory | 5,557 | 5,705 |
LIFO reserve | (785) | (770) |
Prefunded employee benefits | 3 | 300 |
Prepaid and other current assets | 302 | 261 |
Total current assets | 7,182 | 7,483 |
Property, plant and equipment, net | 13,976 | 13,929 |
Goodwill | 1,158 | 1,158 |
Other assets | 565 | 556 |
Total Assets | 22,881 | 23,126 |
Current liabilities | ||
Current portion of long-term debt including obligations under capital leases and financing obligations | 528 | 579 |
Trade accounts payable | 3,963 | 3,890 |
Accrued salaries and wages | 832 | 786 |
Deferred income taxes | 354 | 354 |
Other current liabilities | 2,124 | 2,118 |
Total current liabilities | 7,801 | 7,727 |
Long-term debt including obligations under capital leases and financing obligations | ||
Face-value of long-term debt including obligations under capital leases and financing obligations | 6,936 | 7,420 |
Adjustment to reflect fair-value interest rate hedges | 61 | 57 |
Long-term debt including obligations under capital leases and financing obligations | 6,997 | 7,477 |
Deferred income taxes | 560 | 568 |
Pension and postretirement benefit obligations | 1,075 | 1,082 |
Other long-term liabilities | 1,342 | 1,346 |
Total Liabilities | 17,775 | 18,200 |
Commitments and contingencies (see Note 8) | ||
SHAREOWNERS' EQUITY | ||
Preferred stock, $100 par per share, 5 shares authorized and unissued | 0 | 0 |
Common stock, $1 par per share, 1,000 shares authorized; 959 shares issued in 2010 and 958 shares issued in 2009 | 959 | 958 |
Additional paid-in capital | 3,364 | 3,361 |
Accumulated other comprehensive loss | (577) | (593) |
Accumulated earnings | 7,676 | 7,364 |
Common stock in treasury, at cost, 319 shares in 2010 and 316 shares in 2009 | (6,314) | (6,238) |
Total Shareowners' Equity - The Kroger Co. | 5,108 | 4,852 |
Noncontrolling interests | (2) | 74 |
Total Equity | 5,106 | 4,926 |
Total Liabilities and Equity | $22,881 | $23,126 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | ||
Share data in Millions, except Per Share data | May. 22, 2010
| Jan. 30, 2010
|
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par per share (in dollars per share) | $100 | $100 |
Preferred stock, shares authorized | 5 | 5 |
Preferred stock, shares unissued | 5 | 5 |
Common stock, par per share (in dollars per share) | $1 | $1 |
Common stock, shares authorized | 1,000 | 1,000 |
Common stock, shares issued | 959 | 958 |
Common stock in treasury, shares | 319 | 316 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | ||
In Millions | 3 Months Ended
May. 22, 2010 | 3 Months Ended
May. 23, 2009 |
Cash Flows from Operating Activities: | ||
Net earnings including noncontrolling interests | $375 | $431 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 478 | 453 |
LIFO charge | 15 | 23 |
Stock-based employee compensation | 26 | 25 |
Expense for Company-sponsored pension plans | 22 | 12 |
Deferred income taxes | (8) | 54 |
Other | 10 | 6 |
Changes in operating assets and liabilities net of effects from acquisitions of businesses: | ||
Store deposits in-transit | (20) | (26) |
Receivables | 12 | 18 |
Inventories | 148 | 25 |
Prepaid expenses | 255 | 171 |
Trade accounts payable | 156 | 245 |
Accrued expenses | (55) | (97) |
Income taxes receivable and payable | 165 | 176 |
Contribution to Company-sponsored pension plans | (27) | (200) |
Other | 1 | (28) |
Net cash provided by operating activities | 1,553 | 1,288 |
Cash Flows from Investing Activities: | ||
Payments for property and equipment | (542) | (635) |
Proceeds from sale of assets | 8 | 6 |
Payments for acquisitions | (7) | |
Other | (3) | (5) |
Net cash used by investing activities | (544) | (634) |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of long-term debt | 3 | 3 |
Dividends paid | (61) | (59) |
Payments on long-term debt | (544) | (25) |
Payments on credit facility | (129) | |
Excess tax benefits on stock-based awards | 1 | |
Proceeds from issuance of capital stock | 12 | 2 |
Treasury stock purchases | (80) | (20) |
Decrease in book overdrafts | (83) | (53) |
Investment in the remaining interest of a variable interest entity | (86) | |
Other | 7 | 2 |
Net cash used by financing activities | (831) | (279) |
Net increase in cash and temporary cash investments | 178 | 375 |
Cash and temporary cash investments: | ||
Beginning of year | 424 | 263 |
End of quarter | 602 | 638 |
Reconciliation of capital expenditures: | ||
Payments for property and equipment | (542) | (635) |
Changes in construction-in-progress payables | (1) | (18) |
Total capital expenditures | (543) | (653) |
Disclosure of cash flow information: | ||
Cash paid during the quarter for interest | 149 | 163 |
Cash paid during the quarter for income taxes | $54 | $37 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY (USD $) | |||||||
In Millions | Common Stock
| Additional Paid-In Capital
| Treasury Stock
| Accumulated Other Comprehensive Gain (Loss)
| Accumulated Earnings
| Noncontrolling Interest
| Total
|
Balances at Jan. 31, 2009 | $955 | $3,266 | ($6,039) | ($495) | $7,538 | $95 | $5,320 |
Balances, (in shares) at Jan. 31, 2009 | 955 | 306 | |||||
Issuance of common stock: | |||||||
Stock options exercised | 2 | 2 | |||||
Restricted stock issued | (5) | 3 | (2) | ||||
Treasury stock activity: | |||||||
Treasury stock purchases, at cost | (17) | (17) | |||||
Treasury stock purchases, at cost (in shares) | 1 | ||||||
Stock options exchanged | (3) | (3) | |||||
Tax benefits (detriments) from exercise of stock options | 2 | 2 | |||||
Share-based employee compensation | 25 | 25 | |||||
Other comprehensive gain net of income tax of $6 in 2010 and $- in 2009 | 1 | 1 | |||||
Other | 1 | (7) | (6) | ||||
Cash dividends declared ($0.095 per common share in 2010 and $0.09 per common share in 2009) | (59) | (59) | |||||
Net earnings including noncontrolling interests | 435 | (4) | 431 | ||||
Balances at May. 23, 2009 | 955 | 3,291 | (6,056) | (494) | 7,914 | 84 | 5,694 |
Balances, (in shares) at May. 23, 2009 | 955 | 307 | |||||
Balances at Jan. 30, 2010 | 958 | 3,361 | (6,238) | (593) | 7,364 | 74 | 4,926 |
Balances, (in shares) at Jan. 30, 2010 | 958 | 316 | |||||
Issuance of common stock: | |||||||
Stock options exercised | 1 | 10 | 2 | 13 | |||
Stock options exercised (in shares) | 1 | ||||||
Restricted stock issued | (3) | 2 | (1) | ||||
Treasury stock activity: | |||||||
Treasury stock purchases, at cost | (59) | (59) | |||||
Treasury stock purchases, at cost (in shares) | 2 | ||||||
Stock options exchanged | (21) | (21) | |||||
Stock options exchanged (in shares) | 1 | ||||||
Tax benefits (detriments) from exercise of stock options | (8) | (8) | |||||
Share-based employee compensation | 26 | 26 | |||||
Other comprehensive gain net of income tax of $6 in 2010 and $- in 2009 | 16 | 16 | |||||
Other | (1) | (10) | (11) | ||||
Investment in the remaining interest of a variable interest entity | (22) | (67) | (89) | ||||
Cash dividends declared ($0.095 per common share in 2010 and $0.09 per common share in 2009) | (61) | (61) | |||||
Net earnings including noncontrolling interests | 374 | 1 | 375 | ||||
Balances at May. 22, 2010 | $959 | $3,364 | ($6,314) | ($577) | $7,676 | ($2) | $5,106 |
Balances, (in shares) at May. 22, 2010 | 959 | 319 |
1_CONSOLIDATED STATEMENTS OF CH
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY (Parenthetical) (USD $) | ||
In Millions, except Per Share data | 3 Months Ended
May. 22, 2010 | 3 Months Ended
May. 23, 2009 |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS' EQUITY | ||
Other comprehensive gain, income tax | $6 | $0 |
Cash dividends declared per common share (in dollars per share) | 0.095 | 0.09 |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | |
3 Months Ended
May. 22, 2010 | |
ACCOUNTING POLICIES | |
ACCOUNTING POLICIES | 1. ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying financial statements include the consolidated accounts of The Kroger Co., its wholly-owned subsidiaries, and the Variable Interest Entities (VIE) in which the Company is the primary beneficiary. The January 30, 2010 balance sheet was derived from audited financial statements and, due to its summary nature, does not include all disclosures required by generally accepted accounting principles (GAAP). Significant intercompany transactions and balances have been eliminated. References to the Company in these Consolidated Financial Statements mean the consolidated company. In the opinion of management, the accompanying unaudited Consolidated Financial Statements include all normal, recurring adjustments that are necessary for a fair presentation of results of operations for such periods but should not be considered as indicative of results for a full year. The financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted, pursuant to SEC regulations. Accordingly, the accompanying Consolidated Financial Statements should be read in conjunction with the 2009 Annual Report on Form 10-K of The Kroger Co. for the fiscal year ended January 30, 2010. The unaudited information in the Consolidated Financial Statements for the first quarter ended May 22, 2010, and May 23, 2009, includes the results of operations of the Company for the 16-week periods then ended. The Company reflects certain promotional allowances in its LIFO charge. During the first quarter of the 2010 LIFO analysis, the Company revised the LIFO reserve to reflect certain prior year promotional allowances in prior year LIFO indices. By not including these promotional allowances in all LIFO indices, the Company overstated its LIFO reserve for years 2007 and prior. The Company believes this correction is not material to any individual year or any quarterly period within the years presented. As a result, the Company has increased beginning accumulated earnings and reduced its LIFO reserve on the Consolidated Financial Statements by $33 ($20 after-tax). |
DEBT OBLIGATIONS
DEBT OBLIGATIONS | |
3 Months Ended
May. 22, 2010 | |
DEBT OBLIGATIONS | |
DEBT OBLIGATIONS | 2. DEBT OBLIGATIONS Long-term debt consists of: May 22, January 30, 2010 2010 3.90% to 8.00% Senior Notes and Debentures due through 2038 $ 6,808 $ 7,308 5.00% to 9.50% Mortgages due in varying amounts through 2034 81 105 Other 156 163 Total debt, excluding capital leases and financing obligations 7,045 7,576 Less current portion (497 ) (549 ) Total long-term debt, excluding capital leases and financing obligations $ 6,548 $ 7,027 With the proceeds received from the Companys third quarter of 2009 issuance of $500 of senior notes bearing an interest rate of 3.90% due in 2015, the Company repaid $500 of senior notes bearing an interest rate of 8.05% that matured in the first quarter of 2010. |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | |
3 Months Ended
May. 22, 2010 | |
COMPREHENSIVE INCOME | |
COMPREHENSIVE INCOME | 3. COMPREHENSIVE INCOME Comprehensive income is as follows: First Quarter Ended May 22,2010 May 23,2009 Net earnings including noncontrolling interests $ 375 $ 431 Unrealized gain on available for sale securities, net of income tax 7 Amortization of amounts included in net periodic pension expense, net of income tax(1) 8 Amortization of unrealized gains and losses on cash flow hedging activities, net of income tax 1 1 Comprehensive income 391 432 Comprehensive income (loss) attributable to noncontrolling interests 1 (4 ) Comprehensive income attributable to The Kroger Co. $ 390 $ 436 (1) Amount is net of tax of $6 for the first quarter of 2010. |
BENEFIT PLANS
BENEFIT PLANS | |
3 Months Ended
May. 22, 2010 | |
BENEFIT PLANS | |
BENEFIT PLANS | 4. BENEFIT PLANS The following table provides the components of net periodic benefit costs for the Company-sponsored pension plans and other post-retirement benefits for the first quarter of 2010 and 2009. First Quarter Pension Benefits Other Benefits 2010 2009 2010 2009 Components of net periodic benefit cost: Service cost $ 14 $ 10 $ 4 $ 3 Interest cost 52 54 6 5 Expected return on plan assets (60 ) (54 ) Amortization of: Prior service cost 1 (2 ) (2 ) Actuarial loss (gain) 16 1 (1 ) (1 ) Net periodic benefit cost $ 22 $ 12 $ 7 $ 5 The Company contributed $27 and $200 to Company-sponsored pension plans in the first quarter of 2010 and 2009, respectively. The Company contributed $37 and $35 to employee 401(k) retirement savings accounts in the first quarter of 2010 and 2009, respectively. The Company also contributes to various multi-employer pension plans based on obligations arising from most of its collective bargaining agreements. These plans provide retirement benefits to participants based on their service to contributing employers. The Company recognizes expense in connection with these plans as contributions are funded. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | |
3 Months Ended
May. 22, 2010 | |
EARNINGS PER COMMON SHARE | |
EARNINGS PER COMMON SHARE | 5. EARNINGS PER COMMON SHARE Net earnings attributable to The Kroger Co. per basic common share equals net earnings attributable to The Kroger Co. less income allocated to participating securities divided by the weighted average number of common shares outstanding. Net earnings attributable to The Kroger Co. per diluted common share equals net earnings attributable to The Kroger Co. less income allocated to participating securities divided by the weighted average number of common shares outstanding, after giving effect to dilutive stock options. The following table provides a reconciliation of net earnings attributable to The Kroger Co. and shares used in calculating net earnings attributable to The Kroger Co. per basic common share to those used in calculating net earnings attributable to The Kroger Co. per diluted common share: First Quarter Ended First Quarter Ended May 22, 2010 May 23, 2009 Earnings (Numerator) Shares (Denominator) Per Share Amount Earnings (Numerator) Shares (Denominator) Per Share Amount Net earnings attributable to The Kroger Co. per basic common share $ 371 641 $ 0.58 $ 432 648 $ 0.67 Dilutive effect of stock options 4 3 Net earnings attributable to The Kroger Co. per diluted common share $ 371 645 $ 0.58 $ 432 651 $ 0.66 The Company had undistributed and distributed earnings to participating securities totaling $3 in both the first quarters of 2010 and 2009. The Company had options outstanding for approximately 19 and 21 shares during the first quarter of 2010 and 2009, respectively, that were excluded from the computations of earnings per diluted common share because their inclusion would have had an anti-dilutive effect on earnings per share. |
RECENTLY ADOPTED ACCOUNTING STA
RECENTLY ADOPTED ACCOUNTING STANDARDS | |
3 Months Ended
May. 22, 2010 | |
RECENTLY ADOPTED ACCOUNTING STANDARDS | |
RECENTLY ADOPTED ACCOUNTING STANDARDS | 6. RECENTLY ADOPTED ACCOUNTING STANDARDS In January2010, the Financial Accounting Standards Board (FASB) amended its standards related to fair value measurements and disclosures, which are effective for interim and annual fiscal periods beginning after December15, 2009, except for disclosures about certain Level 3 activity that will not become effective until interim and annual periods beginning after December15, 2010. The new standard requires the Company to disclose transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers as well as activity in Level 3 fair value measurements. The new standard also requires a more detailed level of disaggregation of the assets and liabilities being measured as well as increased disclosures regarding inputs and valuation techniques of the fair value measurements. See Note 9 to the Consolidated Financial Statements for the Companys fair value measurements and disclosures. In June2009, the FASB amended its existing standards related to the consolidation of VIEs, which was effective for interim and annual fiscal periods beginning after November15, 2009. The new standard requires an entity to analyze whether its variable interests give it a controlling financial interest of a VIE and outlines what defines a primary beneficiary. The new standard amends GAAP by: (a)changing certain rulesfor determining whether an entity is a VIE; (b)replacing the quantitative approach previously required for determining the primary beneficiary with a more qualitative approach; and (c)requiring entities to continuously analyze whether they are the primary beneficiary of a VIE, among other amendments. The new standard also requires enhanced disclosures regarding an entitys involvement in a VIE. The adoption of these new standards did not have a material effect on the Companys Consolidated Financial Statements. |
GUARANTOR SUBSIDIARIES
GUARANTOR SUBSIDIARIES | |
3 Months Ended
May. 22, 2010 | |
GUARANTOR SUBSIDIARIES | |
GUARANTOR SUBSIDIARIES | 7. GUARANTOR SUBSIDIARIES The Companys outstanding public debt (the Guaranteed Notes) is jointly and severally, fully and unconditionally guaranteed by The Kroger Co. and some of its subsidiaries (the Guarantor Subsidiaries). At May 22, 2010, a total of approximately $6,808 of Guaranteed Notes was outstanding. The Guarantor Subsidiaries and non-guarantor subsidiaries are wholly-owned subsidiaries of The Kroger Co. Separate financial statements of The Kroger Co. and each of the Guarantor Subsidiaries are not presented because the guarantees are full and unconditional and the Guarantor Subsidiaries are jointly and severally liable. The Company believes that separate financial statements and other disclosures concerning the Guarantor Subsidiaries would not be material to investors. The non-guaranteeing subsidiaries represent less than 3% on an individual and aggregate basis of consolidated assets, pre-tax earnings, cash flow, and equity. Therefore, the non-guarantor subsidiaries information is not separately presented in the tables below. There are no current restrictions on the ability of the Guarantor Subsidiaries to make payments under the guarantees referred to above, except, however, the obligations of each guarantor under its guarantee are limited to the maximum amount as will result in obligations of such guarantor under its guarantee not constituting a fraudulent conveyance or fraudulent transfer for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act, or any similar Federal or state law (e.g., adequate capital to pay dividends under corporate laws). The following tables present summarized financial information as of May 22, 2010 and January 30, 2010 and for the first quarter ended May 22, 2010 and May 23, 2009: Condensed Consolidating Balance Sheets As of May 22, 2010 The Kroger Co. GuarantorSubsidiaries Eliminations Consolidated Current assets Cash and temporary cash investments $ 25 $ 577 $ $ 602 Deposits in-transit 71 604 675 Receivables 2,172 655 (1,999 ) 828 Net inventories 505 4,267 4,772 Prepaid and other current assets 98 207 305 Total current assets 2,871 6,310 (1,999 ) 7,182 Property, plant and equipment, net 1,835 12,141 13,976 Goodwill 5 1,153 1,158 Other assets 870 1,801 (2,106 ) 565 Investment in and advances to subsidiaries 9,864 (9,864 ) Total assets $ 15,445 $ 21,405 $ (13,969 ) $ 22,881 Current liabilities Current portion of long-term debt including obligations under capital leases and financing obligations $ 528 $ $ $ 528 Trade accounts payable 364 3,599 3,963 Other current liabilities 875 6,540 (4,105 ) 3,310 Total current liabilities 1,767 10,139 (4,105 ) 7,801 Long-term debt including obligations under capital leases and financing obligations Face value of long-term debt including obligations under capital |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | |
3 Months Ended
May. 22, 2010 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 8. COMMITMENTS AND CONTINGENCIES The Company continuously evaluates contingencies based upon the best available evidence. The Company believes that allowances for loss have been provided to the extent necessary and that its assessment of contingencies is reasonable. To the extent that resolution of contingencies results in amounts that vary from the Companys estimates, future earnings will be charged or credited. The principal contingencies are described below: Insurance The Companys workers compensation risks are self-insured in certain states. In addition, other workers compensation risks and certain levels of insured general liability risks are based on retrospective premium plans, deductible plans, and self-insured retention plans. The liability for workers compensation risks is accounted for on a present value basis. Actual claim settlements and expenses incident thereto may differ from the provisions for loss. Property risks have been underwritten by a subsidiary and are reinsured with unrelated insurance companies. Operating divisions and subsidiaries have paid premiums, and the insurance subsidiary has provided loss allowances, based upon actuarially determined estimates. Litigation On October6, 2006, the Company petitioned the Tax Court (In Re: Ralphs Grocery Company and Subsidiaries, formerly known as Ralphs Supermarkets,Inc., Docket No.20364-06) for a redetermination of deficiencies set by the Commissioner of Internal Revenue. The dispute at issue involves a 1992 transaction in which Ralphs Holding Company acquired the stock of Ralphs Grocery Company and made an election under Section338(h)(10)of the Internal Revenue Code. The Commissioner has determined that the acquisition of the stock was not a purchase as defined by Section338(h)(3)of the Internal Revenue Code and that the acquisition does not qualify as a purchase. The Company believes that it has strong arguments in favor of its position and believes it is more likely than not that its position will be sustained. However, due to the inherent uncertainty involved in the litigation process, there can be no assurances that the Tax Court will rulein favor of the Company. A decision on this case is expected within the next 12 months. As of May22, 2010, an adverse decision would require a cash payment up to approximately $496, including interest. Any accounting implications of an adverse decision in this case would be charged through the statement of operations. On February2, 2004, the Attorney General for the State of California filed an action in Los Angeles federal court (California, ex rel Lockyer v. Safeway,Inc. dba Vons, a Safeway Company; Albertsons,Inc. and Ralphs Grocery Company, a division of The Kroger Co., United States District Court Central District of California, Case No.CV04-0687) alleging that the Mutual Strike Assistance Agreement (the Agreement) between the Company, Albertsons,Inc. and Safeway Inc. (collectively, the Retailers), which was designed to prevent the union from placing disproportionate pressure on one or more of the Retailers by picketing such Retailer(s)but not the other Retailer(s)during the labor dispute in southern Californ |
FAIR VALUE MEASUREMENTS AND DER
FAIR VALUE MEASUREMENTS AND DERIVATIVE FINANCIAL INSTRUMENTS | |
3 Months Ended
May. 22, 2010 | |
FAIR VALUE MEASUREMENTS AND DERIVATIVE FINANCIAL INSTRUMENTS | |
FAIR VALUE MEASUREMENTS AND DERIVATIVE FINANCIAL INSTRUMENTS | 9. FAIR VALUE MEASUREMENTS AND DERIVATIVE FINANCIAL INSTRUMENTS The Company has certain derivative and financial instruments recorded at fair value, which primarily relate to fair value hedges on fixed to floating interest rate swaps on certain debt. These instruments have not materially changed in fair value since disclosure in the Annual Report on Form10-K of The Kroger Co. for the fiscal year ended January30, 2010. Fair Value of Other Financial Instruments Current and Long-term Debt The fair value of the Companys long-term debt, including current maturities, was estimated based on the quoted market price for the same or similar issues adjusted for illiquidity based on available market evidence. If quoted market prices were not available, the fair value was based on the net present value of the future cash flows using the forward interest rate yield curve in effect at May22, 2010, and January30, 2010. At May22, 2010, the fair value of total debt was $7,919 compared to a carrying value of $7,045. At January30, 2010, the fair value of total debt was $8,283 compared to a carrying value of $7,576. Cash and Temporary Cash Investments, Store Deposits In-Transit, Receivables, Prepaid and Other Current Assets, Accounts Payable, Accrued Salaries and Wages and Other Current Liabilities The carrying amounts of these items approximated fair value. Long-term Investments The fair values of these investments were estimated based on quoted market prices for those or similar investments, or estimated cash flows, if appropriate. At May22, 2010, and January30, 2010, the carrying and fair value of long-term investments for which fair value is determinable was $76 and $68, respectively. |
INVESTMENT IN VARIABLE INTEREST
INVESTMENT IN VARIABLE INTEREST ENTITY | |
3 Months Ended
May. 22, 2010 | |
INVESTMENT IN VARIABLE INTEREST ENTITY | |
INVESTMENT IN VARIABLE INTEREST ENTITY | 10. INVESTMENT IN VARIABLE INTEREST ENTITY In February2010, the Company purchased the remaining interest of The Little Clinic LLC for $86. Since The Little Clinic LLC was consolidated as a VIE prior to the February2010 purchase, the Company recorded the additional investment as an equity transaction. Accordingly, no gain or loss was recorded on the additional investment. As of the purchase date, the Company will continue to consolidate The Little Clinic LLC as a wholly-owned subsidiary. |
Document And Entity Information
Document And Entity Information | ||
3 Months Ended
May. 22, 2010 | Jun. 25, 2010
| |
Document and Entity Information | ||
Entity Registrant Name | KROGER CO | |
Entity Central Index Key | 0000056873 | |
Document Type | 10-Q | |
Document Period End Date | 2010-05-22 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --01-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 642,071,330 | |
Document Fiscal Year Focus | 2,010 | |
Document Fiscal Period Focus | Q1 |