Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Feb. 01, 2014 | Mar. 28, 2014 | Aug. 17, 2013 |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'KROGER CO | ' | ' |
Entity Central Index Key | '0000056873 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 1-Feb-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--02-01 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $19.80 |
Entity Common Stock, Shares Outstanding | ' | 510,765,637 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Feb. 01, 2014 | Feb. 02, 2013 |
In Millions, unless otherwise specified | ||
Current assets | ' | ' |
Cash and temporary cash investments | $401 | $238 |
Store deposits in-transit | 958 | 955 |
Receivables | 1,116 | 1,051 |
FIFO inventory | 6,801 | 6,244 |
LIFO reserve | -1,150 | -1,098 |
Prepaid and other current assets | 704 | 569 |
Total current assets | 8,830 | 7,959 |
Property, plant and equipment, net | 16,893 | 14,848 |
Intangibles, net | 702 | 130 |
Goodwill | 2,135 | 1,234 |
Other assets | 721 | 463 |
Total Assets | 29,281 | 24,634 |
Current liabilities | ' | ' |
Current portion of long-term debt including obligations under capital leases and financing obligations | 1,657 | 2,734 |
Trade accounts payable | 4,881 | 4,484 |
Accrued salaries and wages | 1,150 | 1,017 |
Deferred income taxes | 248 | 288 |
Other current liabilities | 2,769 | 2,538 |
Total current liabilities | 10,705 | 11,061 |
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 | 9,654 | 6,141 |
Adjustment to reflect fair-value interest rate hedges | -1 | 4 |
Long-term debt including obligations under capital leases and financing obligations | 9,653 | 6,145 |
Deferred income taxes | 1,381 | 796 |
Pension and postretirement benefit obligations | 901 | 1,291 |
Other long-term liabilities | 1,246 | 1,127 |
Total Liabilities | 23,886 | 20,420 |
Commitments and contingencies (see Note 13) | ' | ' |
SHAREOWNERS' EQUITY | ' | ' |
Preferred shares, $100 par per share, 5 shares authorized and unissued | ' | ' |
Common shares, $1 par per share, 1,000 shares authorized; 959 shares issued in 2013 and 2012 | 959 | 959 |
Additional paid-in capital | 3,549 | 3,451 |
Accumulated other comprehensive loss | -464 | -753 |
Accumulated earnings | 10,981 | 9,787 |
Common stock in treasury, at cost, 451 shares in 2013 and 445 shares in 2012 | -9,641 | -9,237 |
Total Shareowners' Equity - The Kroger Co. | 5,384 | 4,207 |
Noncontrolling interests | 11 | 7 |
Total Equity | 5,395 | 4,214 |
Total Liabilities and Equity | $29,281 | $24,634 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Feb. 01, 2014 | Feb. 02, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Preferred shares, per share (in dollars per share) | $100 | $100 |
Preferred shares, shares authorized | 5 | 5 |
Preferred shares, shares unissued | 5 | 5 |
Common shares, par per share (in dollars per share) | $1 | $1 |
Common shares, shares authorized | 1,000 | 1,000 |
Common shares, shares issued | 959 | 959 |
Common shares in treasury, shares | 451 | 445 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
In Millions, except Per Share data, unless otherwise specified | Feb. 01, 2014 | Nov. 09, 2013 | Aug. 17, 2013 | Feb. 02, 2013 | Nov. 03, 2012 | Aug. 11, 2012 | 25-May-13 | 19-May-12 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | $23,222 | $22,470 | $22,686 | $24,120 | $21,776 | $21,697 | $29,997 | $29,026 | $98,375 | $96,619 | $90,269 |
Merchandise costs, including advertising, warehousing, and transportation, excluding items shown separately below | 18,397 | 17,866 | 18,059 | 19,069 | 17,352 | 17,249 | 23,817 | 23,056 | 78,138 | 76,726 | 71,389 |
Operating, general and administrative | 3,558 | 3,537 | 3,506 | 3,689 | 3,305 | 3,391 | 4,593 | 4,464 | 15,196 | 14,849 | 15,345 |
Rent | 147 | 138 | 139 | 157 | 141 | 139 | 189 | 191 | 613 | 628 | 619 |
Depreciation | 402 | 395 | 387 | 386 | 382 | 383 | 519 | 501 | 1,703 | 1,652 | 1,638 |
Operating Profit | 718 | 534 | 595 | 819 | 596 | 535 | 879 | 814 | 2,725 | 2,764 | 1,278 |
Interest expense | 107 | 108 | 99 | 112 | 103 | 106 | 129 | 141 | 443 | 462 | 435 |
Earnings before income tax expense | 611 | 426 | 496 | 707 | 493 | 429 | 750 | 673 | 2,282 | 2,302 | 843 |
Income tax expense | 184 | 125 | 176 | 239 | 175 | 148 | 266 | 232 | 751 | 794 | 247 |
Net earnings including noncontrolling interests | 427 | 301 | 320 | 468 | 318 | 281 | 484 | 441 | 1,531 | 1,508 | 596 |
Net earnings (loss) attributable to noncontrolling interests | 5 | 2 | 3 | 6 | 1 | 2 | 3 | 2 | 12 | 11 | -6 |
Net earnings attributable to The Kroger Co. | $422 | $299 | $317 | $462 | $317 | $279 | $481 | $439 | $1,519 | $1,497 | $602 |
Net earnings attributable to The Kroger Co. per basic common share (in dollars per share) | $0.82 | $0.58 | $0.61 | $0.89 | $0.61 | $0.52 | $0.93 | $0.78 | $2.93 | $2.78 | $1.01 |
Average number of common shares used in basic calculation (in shares) | 511 | 515 | 515 | 514 | 518 | 538 | 514 | 556 | 514 | 533 | 590 |
Net earnings attributable to The Kroger Co. per diluted common share (in dollars per share) | $0.81 | $0.57 | $0.60 | $0.88 | $0.60 | $0.51 | $0.92 | $0.78 | $2.90 | $2.77 | $1.01 |
Average number of common shares used in diluted calculation (in shares) | 517 | 521 | 521 | 518 | 522 | 541 | 520 | 559 | 520 | 537 | 593 |
Dividends declared per common share (in dollars per share) | $0.17 | $0.17 | $0.15 | $0.15 | $0.15 | $0.12 | $0.15 | $0.12 | $0.63 | $0.53 | $0.44 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | |||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' | |||
Net earnings including noncontrolling interests | $1,531 | $1,508 | $596 | |||
Other comprehensive income (loss) | ' | ' | ' | |||
Unrealized gain on available for sale securities, net of income tax | 5 | [1] | ' | 2 | [1] | |
Change in pension and other postretirement defined benefit plans, net of income tax | 295 | [2] | 75 | [2] | -271 | [2] |
Unrealized gains and losses on cash flow hedging activities, net of income tax | -12 | [3] | 13 | [3] | -26 | [3] |
Amortization of unrealized gains and losses on cash flow hedging activities, net of income tax | 1 | [4] | 3 | [4] | 1 | [4] |
Total other comprehensive income (loss) | 289 | 91 | -294 | |||
Comprehensive income | 1,820 | 1,599 | 302 | |||
Comprehensive income (loss) attributable to noncontrolling interests | 12 | 11 | -6 | |||
Comprehensive income attributable to The Kroger Co. | $1,808 | $1,588 | $308 | |||
[1] | Amount is net of tax of $3 in 2013 and $1 in 2011. | |||||
[2] | Amount is net of tax of $173 in 2013, $45 in 2012 and $(154) in 2011. | |||||
[3] | Amount is net of tax of $(8) in 2013, $7 in 2012 and $(15) in 2011. | |||||
[4] | Amount is net of tax of $1 in 2013, $2 in 2012 and $1 in 2011. |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
Unrealized gain on available for sale securities, income tax | $3 | ' | $1 |
Change in pension and other postretirement defined benefit plans, income tax | 173 | 45 | -154 |
Unrealized loss on cash flow hedging activities, income tax | -8 | 7 | -15 |
Amortization of unrealized gains and losses on cash flow hedging activities, income tax | $1 | $2 | $1 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Cash Flows From Operating Activities: | ' | ' | ' |
Net earnings including noncontrolling interests | $1,531 | $1,508 | $596 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ' | ' | ' |
Depreciation | 1,703 | 1,652 | 1,638 |
Asset impairment charge | 39 | 18 | 37 |
LIFO charge | 52 | 55 | 216 |
Stock-based employee compensation | 107 | 82 | 81 |
Expense for Company-sponsored pension plans | 74 | 89 | 70 |
Deferred income taxes | 72 | 176 | 31 |
Other | 47 | 23 | 3 |
Changes in operating assets and liabilities net of effects from acquisitions of businesses: | ' | ' | ' |
Store deposits in-transit | 25 | -169 | -120 |
Inventories | -131 | -78 | -361 |
Receivables | -8 | -126 | -63 |
Prepaid expenses | -49 | -257 | 52 |
Trade accounts payable | 3 | 67 | 83 |
Accrued expenses | 77 | 67 | 215 |
Income taxes receivable and payable | -47 | 164 | -106 |
Contribution to Company-sponsored pension plans | -100 | -71 | -52 |
Other | -15 | -367 | 338 |
Net cash provided by operating activities | 3,380 | 2,833 | 2,658 |
Cash Flows From Investing Activities: | ' | ' | ' |
Payments for property and equipment, including payments for lease buyouts | -2,330 | -2,062 | -1,898 |
Proceeds from sale of assets | 24 | 49 | 51 |
Payments for acquisitions | -2,344 | -122 | -51 |
Other | -121 | -48 | -10 |
Net cash used by investing activities | -4,771 | -2,183 | -1,908 |
Cash Flows From Financing Activities: | ' | ' | ' |
Proceeds from issuance of long-term debt | 3,548 | 863 | 453 |
Payments on long-term debt | -1,060 | -1,445 | -547 |
Net (payments) borrowings of commercial paper | -395 | 1,275 | 370 |
Proceeds from issuance of capital stock | 196 | 110 | 118 |
Treasury stock purchases | -609 | -1,261 | -1,547 |
Dividends paid | -319 | -267 | -257 |
Net increase in book overdrafts | 193 | 121 | 19 |
Other | ' | 4 | 4 |
Net cash provided (used) by financing activities | 1,554 | -600 | -1,387 |
Net increase (decrease) in cash and temporary cash investments | 163 | 50 | -637 |
Cash and temporary cash investments: | ' | ' | ' |
Beginning of year | 238 | 188 | 825 |
End of year | 401 | 238 | 188 |
Reconciliation of capital investments: | ' | ' | ' |
Payments for property and equipment, including payments for lease buyouts | -2,330 | -2,062 | -1,898 |
Payments for lease buyouts | 108 | 73 | 60 |
Changes in construction-in-progress payables | -83 | -1 | -60 |
Total capital investments, excluding lease buyouts | -2,305 | -1,990 | -1,898 |
Disclosure of cash flow information: | ' | ' | ' |
Cash paid during the year for interest | 401 | 438 | 457 |
Cash paid during the year for income taxes | $679 | $468 | $296 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Gain (Loss) | Accumulated Earnings | Noncontrolling Interest |
In Millions, unless otherwise specified | |||||||
Balances at Jan. 29, 2011 | $5,298 | $959 | $3,394 | ($6,732) | ($550) | $8,225 | $2 |
Balances (in shares) at Jan. 29, 2011 | ' | 959 | ' | 339 | ' | ' | ' |
Issuance of common stock: | ' | ' | ' | ' | ' | ' | ' |
Stock options exercised | 118 | ' | ' | 118 | ' | ' | ' |
Stock options exercised (in shares) | ' | ' | ' | -6 | ' | ' | ' |
Restricted stock issued | -21 | ' | -55 | 34 | ' | ' | ' |
Restricted stock issued (in shares) | ' | ' | ' | -2 | ' | ' | ' |
Treasury stock activity: | ' | ' | ' | ' | ' | ' | ' |
Treasury stock purchases, at cost | -1,420 | ' | ' | -1,420 | ' | ' | ' |
Treasury stock purchases, at cost (in shares) | ' | ' | ' | 61 | ' | ' | ' |
Stock options exchanged | -127 | ' | ' | -127 | ' | ' | ' |
Stock options exchanged (in shares) | ' | ' | ' | 6 | ' | ' | ' |
Share-based employee compensation | 81 | ' | 81 | ' | ' | ' | ' |
Other comprehensive gain net of income tax of $169 in 2013, $54 in 2012 and $(167) in 2011 | -294 | ' | ' | ' | -294 | ' | ' |
Other | -9 | ' | 7 | -5 | ' | ' | -11 |
Cash dividends declared ($0.63 in 2013, $0.53 in 2012 and $0.44 in 2011 per common share) | -256 | ' | ' | ' | ' | -256 | ' |
Net earnings including non-controlling interests | 596 | ' | ' | ' | ' | 602 | -6 |
Balances at Jan. 28, 2012 | 3,966 | 959 | 3,427 | -8,132 | -844 | 8,571 | -15 |
Balances (in shares) at Jan. 28, 2012 | ' | 959 | ' | 398 | ' | ' | ' |
Issuance of common stock: | ' | ' | ' | ' | ' | ' | ' |
Stock options exercised | 110 | ' | ' | 110 | ' | ' | ' |
Stock options exercised (in shares) | ' | ' | ' | -7 | ' | ' | ' |
Restricted stock issued | -19 | ' | -59 | 40 | ' | ' | ' |
Restricted stock issued (in shares) | ' | ' | ' | -2 | ' | ' | ' |
Treasury stock activity: | ' | ' | ' | ' | ' | ' | ' |
Treasury stock purchases, at cost | -1,165 | ' | ' | -1,165 | ' | ' | ' |
Treasury stock purchases, at cost (in shares) | ' | ' | ' | 51 | ' | ' | ' |
Stock options exchanged | -96 | ' | ' | -96 | ' | ' | ' |
Stock options exchanged (in shares) | ' | ' | ' | 5 | ' | ' | ' |
Share-based employee compensation | 82 | ' | 82 | ' | ' | ' | ' |
Other comprehensive gain net of income tax of $169 in 2013, $54 in 2012 and $(167) in 2011 | 91 | ' | ' | ' | 91 | ' | ' |
Other | 18 | ' | 1 | 6 | ' | ' | 11 |
Cash dividends declared ($0.63 in 2013, $0.53 in 2012 and $0.44 in 2011 per common share) | -281 | ' | ' | ' | ' | -281 | ' |
Net earnings including non-controlling interests | 1,508 | ' | ' | ' | ' | 1,497 | 11 |
Balances at Feb. 02, 2013 | 4,214 | 959 | 3,451 | -9,237 | -753 | 9,787 | 7 |
Balances (in shares) at Feb. 02, 2013 | ' | 959 | ' | 445 | ' | ' | ' |
Issuance of common stock: | ' | ' | ' | ' | ' | ' | ' |
Stock options exercised | 196 | ' | ' | 196 | ' | ' | ' |
Stock options exercised (in shares) | ' | ' | ' | -9 | ' | ' | ' |
Restricted stock issued | -34 | ' | -60 | 26 | ' | ' | ' |
Restricted stock issued (in shares) | ' | ' | ' | -2 | ' | ' | ' |
Treasury stock activity: | ' | ' | ' | ' | ' | ' | ' |
Treasury stock purchases, at cost | -338 | ' | ' | -338 | ' | ' | ' |
Treasury stock purchases, at cost (in shares) | ' | ' | ' | 9 | ' | ' | ' |
Stock options exchanged | -271 | ' | ' | -271 | ' | ' | ' |
Stock options exchanged (in shares) | 8 | ' | ' | 8 | ' | ' | ' |
Share-based employee compensation | 107 | ' | 107 | ' | ' | ' | ' |
Other comprehensive gain net of income tax of $169 in 2013, $54 in 2012 and $(167) in 2011 | 289 | ' | ' | ' | 289 | ' | ' |
Other | 26 | ' | 51 | -17 | ' | ' | -8 |
Cash dividends declared ($0.63 in 2013, $0.53 in 2012 and $0.44 in 2011 per common share) | -325 | ' | ' | ' | ' | -325 | ' |
Net earnings including non-controlling interests | 1,531 | ' | ' | ' | ' | 1,519 | 12 |
Balances at Feb. 01, 2014 | $5,395 | $959 | $3,549 | ($9,641) | ($464) | $10,981 | $11 |
Balances (in shares) at Feb. 01, 2014 | ' | 959 | ' | 451 | ' | ' | ' |
CONSOLIDATED_STATEMENT_OF_CHAN1
CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
CONSOLIDATED STATEMENT OF CHANGES IN SHAREOWNERS' EQUITY | ' | ' | ' |
Other comprehensive gain, income tax | $169 | $54 | ($167) |
Cash dividends declared per common share (in dollars per share) | $0.63 | $0.53 | $0.44 |
ACCOUNTING_POLICIES
ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||||||
Feb. 01, 2014 | |||||||||||||||||
ACCOUNTING POLICIES | ' | ||||||||||||||||
ACCOUNTING POLICIES | ' | ||||||||||||||||
1. ACCOUNTING POLICIES | |||||||||||||||||
The following is a summary of the significant accounting policies followed in preparing these financial statements. | |||||||||||||||||
Description of Business, Basis of Presentation and Principles of Consolidation | |||||||||||||||||
The Kroger Co. (the “Company”) was founded in 1883 and incorporated in 1902. As of February 1, 2014, the Company was one of the largest retailers in the United States based on annual sales. The Company also manufactures and processes food for sale by its supermarkets. The accompanying financial statements include the consolidated accounts of the Company, its wholly-owned subsidiaries and the Variable Interest Entities (“VIEs”) in which the Company is the primary beneficiary. Significant intercompany transactions and balances have been eliminated. | |||||||||||||||||
Certain revenue transactions previously reported in sales and merchandise costs in the Consolidated Statements of Operations are now reported net within sales. Certain prior year amounts have been revised or reclassified to conform to the current year presentation. These amounts were not material to the prior periods. | |||||||||||||||||
Fiscal Year | |||||||||||||||||
The Company’s fiscal year ends on the Saturday nearest January 31. The last three fiscal years consist of the 52-week periods ended February 1, 2014 and January 28, 2012 and the 53-week period ended February 2, 2013. | |||||||||||||||||
Pervasiveness of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of consolidated revenues and expenses during the reporting period also is required. Actual results could differ from those estimates. | |||||||||||||||||
Inventories | |||||||||||||||||
Inventories are stated at the lower of cost (principally on a last-in, first-out “LIFO” basis) or market. In total, approximately 95% and 96% of inventories for 2013 and 2012, respectively, were valued using the LIFO method. Cost for the balance of the inventories, including substantially all fuel inventories, was determined using the first-in, first-out (“FIFO”) method. Replacement cost was higher than the carrying amount by $1,150 at February 1, 2014 and $1,098 at February 2, 2013. The Company follows the Link-Chain, Dollar-Value LIFO method for purposes of calculating its LIFO charge or credit. | |||||||||||||||||
The item-cost method of accounting to determine inventory cost before the LIFO adjustment is followed for substantially all store inventories at the Company’s supermarket divisions. This method involves counting each item in inventory, assigning costs to each of these items based on the actual purchase costs (net of vendor allowances and cash discounts) of each item and recording the cost of items sold. The item-cost method of accounting allows for more accurate reporting of periodic inventory balances and enables management to more precisely manage inventory. In addition, substantially all of the Company’s inventory consists of finished goods and is recorded at actual purchase costs (net of vendor allowances and cash discounts). | |||||||||||||||||
The Company evaluates inventory shortages throughout the year based on actual physical counts in its facilities. Allowances for inventory shortages are recorded based on the results of these counts to provide for estimated shortages as of the financial statement date. | |||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||
Property, plant and equipment are recorded at cost or, in the case of assets acquired in a business combination, at fair value. Depreciation expense, which includes the amortization of assets recorded under capital leases, is computed principally using the straight-line method over the estimated useful lives of individual assets. Buildings and land improvements are depreciated based on lives varying from 10 to 40 years. All new purchases of store equipment are assigned lives varying from three to nine years. Leasehold improvements are amortized over the shorter of the lease term to which they relate, which varies from four to 25 years, or the useful life of the asset. Manufacturing plant and distribution center equipment is depreciated over lives varying from three to 15 years. Information technology assets are generally depreciated over five years. Depreciation expense was $1,703 in 2013, $1,652 in 2012 and $1,638 in 2011. | |||||||||||||||||
Interest costs on significant projects constructed for the Company’s own use are capitalized as part of the costs of the newly constructed facilities. Upon retirement or disposal of assets, the cost and related accumulated depreciation are removed from the balance sheet and any gain or loss is reflected in net earnings. | |||||||||||||||||
Deferred Rent | |||||||||||||||||
The Company recognizes rent holidays, including the time period during which the Company has access to the property for construction of buildings or improvements and escalating rent provisions on a straight-line basis over the term of the lease. The deferred amount is included in Other Current Liabilities and Other Long-Term Liabilities on the Company’s Consolidated Balance Sheets. | |||||||||||||||||
Goodwill | |||||||||||||||||
The Company reviews goodwill for impairment during the fourth quarter of each year, and also upon the occurrence of trigger events. The Company performs reviews of each of its operating divisions and variable interest entities (collectively, our reporting units) that have goodwill balances. Generally, fair value is determined using a multiple of earnings, or discounted projected future cash flows, and is compared to the carrying value of a division for purposes of identifying potential impairment. Projected future cash flows are based on management’s knowledge of the current operating environment and expectations for the future. If potential for impairment is identified, the fair value of a division is measured against the fair value of its underlying assets and liabilities, excluding goodwill, to estimate an implied fair value of the division’s goodwill. Goodwill impairment is recognized for any excess of the carrying value of the division’s goodwill over the implied fair value. Results of the goodwill impairment reviews performed during 2013, 2012 and 2011 are summarized in Note 3 to the Consolidated Financial Statements. | |||||||||||||||||
Impairment of Long-Lived Assets | |||||||||||||||||
The Company monitors the carrying value of long-lived assets for potential impairment each quarter based on whether certain trigger events have occurred. These events include current period losses combined with a history of losses or a projection of continuing losses or a significant decrease in the market value of an asset. When a trigger event occurs, an impairment calculation is performed, comparing projected undiscounted future cash flows, utilizing current cash flow information and expected growth rates related to specific stores, to the carrying value for those stores. If the Company identifies impairment for long-lived assets to be held and used, the Company compares the assets’ current carrying value to the assets’ fair value. Fair value is based on current market values or discounted future cash flows. The Company records impairment when the carrying value exceeds fair market value. With respect to owned property and equipment held for sale, the value of the property and equipment is adjusted to reflect recoverable values based on previous efforts to dispose of similar assets and current economic conditions. Impairment is recognized for the excess of the carrying value over the estimated fair market value, reduced by estimated direct costs of disposal. The Company recorded asset impairments in the normal course of business totaling $39, $18 and $37 in 2013, 2012 and 2011, respectively. Costs to reduce the carrying value of long-lived assets for each of the years presented have been included in the Consolidated Statements of Operations as “Operating, general and administrative” expense. | |||||||||||||||||
Store Closing Costs | |||||||||||||||||
The Company provides for closed store liabilities relating to the present value of the estimated remaining non-cancellable lease payments after the closing date, net of estimated subtenant income. The Company estimates the net lease liabilities using a discount rate to calculate the present value of the remaining net rent payments on closed stores. The closed store lease liabilities usually are paid over the lease terms associated with the closed stores, which generally have remaining terms ranging from one to 20 years. Adjustments to closed store liabilities primarily relate to changes in subtenant income and actual exit costs differing from original estimates. Adjustments are made for changes in estimates in the period in which the change becomes known. Store closing liabilities are reviewed quarterly to ensure that any accrued amount that is not a sufficient estimate of future costs, or that no longer is needed for its originally intended purpose, is adjusted to income in the proper period. | |||||||||||||||||
Owned stores held for disposal are reduced to their estimated net realizable value. Costs to reduce the carrying values of property, equipment and leasehold improvements are accounted for in accordance with the Company’s policy on impairment of long-lived assets. Inventory write-downs, if any, in connection with store closings, are classified in “Merchandise costs.” Costs to transfer inventory and equipment from closed stores are expensed as incurred. | |||||||||||||||||
The following table summarizes accrual activity for future lease obligations of stores that were closed in the normal course of business and assumed in the merger with Harris Teeter Supermarkets, Inc. (“Harris Teeter”): | |||||||||||||||||
Future Lease | |||||||||||||||||
Obligations | |||||||||||||||||
Balance at January 28, 2012 | $ | 55 | |||||||||||||||
Additions | 6 | ||||||||||||||||
Payments | (10 | ) | |||||||||||||||
Other | (7 | ) | |||||||||||||||
Balance at February 2, 2013 | 44 | ||||||||||||||||
Additions | 7 | ||||||||||||||||
Payments | (9 | ) | |||||||||||||||
Other | (2 | ) | |||||||||||||||
Assumed from Harris Teeter | 18 | ||||||||||||||||
Balance at February 1, 2014 | $ | 58 | |||||||||||||||
Interest Rate Risk Management | |||||||||||||||||
The Company uses derivative instruments primarily to manage its exposure to changes in interest rates. The Company’s current program relative to interest rate protection and the methods by which the Company accounts for its derivative instruments are described in Note 7. | |||||||||||||||||
Commodity Price Protection | |||||||||||||||||
The Company enters into purchase commitments for various resources, including raw materials utilized in its manufacturing facilities and energy to be used in its stores, manufacturing facilities and administrative offices. The Company enters into commitments expecting to take delivery of and to utilize those resources in the conduct of the normal course of business. The Company’s current program relative to commodity price protection and the methods by which the Company accounts for its purchase commitments are described in Note 7. | |||||||||||||||||
Benefit Plans and Multi-Employer Pension Plans | |||||||||||||||||
The Company recognizes the funded status of its retirement plans on the Consolidated Balance Sheet. Actuarial gains or losses, prior service costs or credits and transition obligations that have not yet been recognized as part of net periodic benefit cost are required to be recorded as a component of Accumulated Other Comprehensive Income (“AOCI”). All plans are measured as of the Company’s fiscal year end. | |||||||||||||||||
The determination of the obligation and expense for Company-sponsored pension plans and other post-retirement benefits is dependent on the selection of assumptions used by actuaries and the Company in calculating those amounts. Those assumptions are described in Note 15 and include, among others, the discount rate, the expected long-term rate of return on plan assets and the rates of increase in compensation and health care costs. Actual results that differ from the assumptions are accumulated and amortized over future periods and, therefore, generally affect the recognized expense and recorded obligation in future periods. While the Company believes that the assumptions are appropriate, significant differences in actual experience or significant changes in assumptions may materially affect the pension and other post-retirement obligations and future expense. | |||||||||||||||||
The Company also participates in various multi-employer plans for substantially all union employees. Pension expense for these plans is recognized as contributions are funded. Refer to Note 16 for additional information regarding the Company’s participation in these various multi-employer plans and the United Food and Commercial Workers International Union (“UFCW”) consolidated fund. | |||||||||||||||||
The Company administers and makes contributions to the employee 401(k) retirement savings accounts. Contributions to the employee 401(k) retirement savings accounts are expensed when contributed. Refer to Note 15 for additional information regarding the Company’s benefit plans. | |||||||||||||||||
Stock Based Compensation | |||||||||||||||||
The Company accounts for stock options under fair value recognition provisions. Under this method, the Company recognizes compensation expense for all share-based payments granted. The Company recognizes share-based compensation expense, net of an estimated forfeiture rate, over the requisite service period of the award. In addition, the Company records expense for restricted stock awards in an amount equal to the fair market value of the underlying stock on the grant date of the award, over the period the awards lapse. | |||||||||||||||||
Deferred Income Taxes | |||||||||||||||||
Deferred income taxes are recorded to reflect the tax consequences of differences between the tax basis of assets and liabilities and their financial reporting basis. Refer to Note 5 for the types of differences that give rise to significant portions of deferred income tax assets and liabilities. Deferred income taxes are classified as a net current or noncurrent asset or liability based on the classification of the related asset or liability for financial reporting purposes. A deferred tax asset or liability that is not related to an asset or liability for financial reporting is classified according to the expected reversal date. | |||||||||||||||||
Uncertain Tax Positions | |||||||||||||||||
The Company reviews the tax positions taken or expected to be taken on tax returns to determine whether and to what extent a benefit can be recognized in its consolidated financial statements. Refer to Note 5 for the amount of unrecognized tax benefits and other related disclosures related to uncertain tax positions. | |||||||||||||||||
Various taxing authorities periodically audit the Company’s income tax returns. These audits include questions regarding the Company’s tax filing positions, including the timing and amount of deductions and the allocation of income to various tax jurisdictions. In evaluating the exposures connected with these various tax filing positions, including state and local taxes, the Company records allowances for probable exposures. A number of years may elapse before a particular matter, for which an allowance has been established, is audited and fully resolved. As of February 1, 2014, the Internal Revenue Service had concluded its field examination of the Company’s 2008 and 2009 federal tax returns. The Company has filed an administrative appeal with the Internal Revenue Service protesting certain adjustments proposed by the Internal Revenue Service as a result of their field work. | |||||||||||||||||
The assessment of the Company’s tax position relies on the judgment of management to estimate the exposures associated with the Company’s various filing positions. | |||||||||||||||||
Self-Insurance Costs | |||||||||||||||||
The Company is primarily self-insured for costs related to workers’ compensation and general liability claims. Liabilities are actuarially determined and are recognized based on claims filed and an estimate of claims incurred but not reported. The liabilities for workers’ compensation claims are accounted for on a present value basis. The Company has purchased stop-loss coverage to limit its exposure to any significant exposure on a per claim basis. The Company is insured for covered costs in excess of these per claim limits. | |||||||||||||||||
The following table summarizes the changes in the Company’s self-insurance liability through February 1, 2014. | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Beginning balance | $ | 537 | $ | 529 | $ | 514 | |||||||||||
Expense | 220 | 215 | 215 | ||||||||||||||
Claim payments | (215 | ) | (207 | ) | (200 | ) | |||||||||||
Assumed from Harris Teeter | 27 | ¾ | ¾ | ||||||||||||||
Ending balance | 569 | 537 | 529 | ||||||||||||||
Less: Current portion | (224 | ) | (205 | ) | (197 | ) | |||||||||||
Long-term portion | $ | 345 | $ | 332 | $ | 332 | |||||||||||
The current portion of the self-insured liability is included in “Other current liabilities,” and the long-term portion is included in “Other long-term liabilities” in the Consolidated Balance Sheets. | |||||||||||||||||
The Company maintains surety bonds related to self-insured workers’ compensation claims. These bonds are required by most states in which the Company is self-insured for workers’ compensation and are placed with third-party insurance providers to insure payment of our obligations in the event the Company is unable to meet its claim payment obligations up to its self-insured retention levels. These bonds do not represent liabilities of the Company, as the Company has recorded reserves for the claim costs. | |||||||||||||||||
The Company is similarly self-insured for property-related losses. The Company maintains stop loss coverage to limit its property loss exposures including coverage for earthquake, wind, flood and other catastrophic events. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
Revenues from the sale of products are recognized at the point of sale. Discounts provided to customers by the Company at the time of sale, including those provided in connection with loyalty cards, are recognized as a reduction in sales as the products are sold. Discounts provided by vendors, usually in the form of paper coupons, are not recognized as a reduction in sales provided the coupons are redeemable at any retailer that accepts coupons. The Company records a receivable from the vendor for the difference in sales price and cash received. Pharmacy sales are recorded when provided to the customer. Sales taxes are recorded as other accrued liabilities and not as a component of sales. The Company does not recognize a sale when it sells its own gift cards and gift certificates. Rather, it records a deferred liability equal to the amount received. A sale is then recognized when the gift card or gift certificate is redeemed to purchase the Company’s products. Gift card and certificate breakage is recognized when redemption is deemed remote and there is no legal obligation to remit the value of the unredeemed gift card. The amount of breakage has not been material for 2013, 2012 and 2011. | |||||||||||||||||
Merchandise Costs | |||||||||||||||||
The “Merchandise costs” line item of the Consolidated Statements of Operations includes product costs, net of discounts and allowances; advertising costs (see separate discussion below); inbound freight charges; warehousing costs, including receiving and inspection costs; transportation costs; and manufacturing production and operational costs. Warehousing, transportation and manufacturing management salaries are also included in the “Merchandise costs” line item; however, purchasing management salaries and administration costs are included in the “Operating, general, and administrative” line item along with most of the Company’s other managerial and administrative costs. Rent expense and depreciation expense are shown separately in the Consolidated Statements of Operations. | |||||||||||||||||
Warehousing and transportation costs include distribution center direct wages, repairs and maintenance, utilities, inbound freight and, where applicable, third party warehouse management fees, as well as transportation direct wages and repairs and maintenance. These costs are recognized in the periods the related expenses are incurred. | |||||||||||||||||
The Company believes the classification of costs included in merchandise costs could vary widely throughout the industry. The Company’s approach is to include in the “Merchandise costs” line item the direct, net costs of acquiring products and making them available to customers in its stores. The Company believes this approach most accurately presents the actual costs of products sold. | |||||||||||||||||
The Company recognizes all vendor allowances as a reduction in merchandise costs when the related product is sold. When possible, vendor allowances are applied to the related product cost by item and, therefore, reduce the carrying value of inventory by item. When the items are sold, the vendor allowance is recognized. When it is not possible, due to systems constraints, to allocate vendor allowances to the product by item, vendor allowances are recognized as a reduction in merchandise costs based on inventory turns and, therefore, recognized as the product is sold. | |||||||||||||||||
Advertising Costs | |||||||||||||||||
The Company’s advertising costs are recognized in the periods the related expenses are incurred and are included in the “Merchandise costs” line item of the Consolidated Statements of Operations. The Company’s pre-tax advertising costs totaled $587 in 2013, $553 in 2012 and $532 in 2011. The Company does not record vendor allowances for co-operative advertising as a reduction of advertising expense. | |||||||||||||||||
Cash, Temporary Cash Investments and Book Overdrafts | |||||||||||||||||
Cash and temporary cash investments represent store cash and short-term investments with original maturities of less than three months. Book overdrafts are included in trade accounts payable and accrued salaries and wages. | |||||||||||||||||
Deposits In-Transit | |||||||||||||||||
Deposits in-transit generally represent funds deposited to the Company’s bank accounts at the end of the year related to sales, a majority of which were paid for with debit cards, credit cards and checks, to which the Company does not have immediate access but that settle within a few days of the sales transaction. | |||||||||||||||||
Consolidated Statements of Cash Flows | |||||||||||||||||
For purposes of the Consolidated Statements of Cash Flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be temporary cash investments. | |||||||||||||||||
Segments | |||||||||||||||||
The Company operates retail food and drug stores, multi-department stores, jewelry stores, and convenience stores throughout the United States. The Company’s retail operations, which represent over 99% of the Company’s consolidated sales and EBITDA, are its only reportable segment. The Company’s retail operating divisions have been aggregated into one reportable segment due to the operating divisions having similar economic characteristics with similar long-term financial performance. In addition, the Company’s operating divisions offer to its customers similar products, have similar distribution methods, operate in similar regulatory environments, purchase the majority of the Company’s merchandise for retail sale from similar (and in many cases identical) vendors on a coordinated basis from a centralized location, serve similar types of customers, and are allocated capital from a centralized location. The Company’s operating divisions reflect the manner in which the business is managed and how the Company’s Chief Executive Officer and Chief Operating Officer, who act as the Company’s chief operating decision makers, assess performance internally. All of the Company’s operations are domestic. | |||||||||||||||||
The following table presents sales revenue by type of product for 2013, 2012 and 2011. | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Amount | % of total | Amount | % of total | Amount | % of total | ||||||||||||
Non Perishable (1) | $ | 49,229 | 50 | % | $ | 48,663 | 50.4 | % | $ | 46,494 | 51.5 | % | |||||
Perishable (2) | 20,625 | 21 | % | 19,761 | 20.5 | % | 18,588 | 20.6 | % | ||||||||
Fuel | 18,962 | 19.3 | % | 18,896 | 19.5 | % | 16,901 | 18.7 | % | ||||||||
Pharmacy | 8,073 | 8.2 | % | 8,018 | 8.3 | % | 7,322 | 8.1 | % | ||||||||
Other (3) | 1,486 | 1.5 | % | 1,281 | 1.3 | % | 964 | 1.1 | % | ||||||||
Total Sales and other revenue | $ | 98,375 | 100 | % | $ | 96,619 | 100 | % | $ | 90,269 | 100 | % | |||||
(1) Consists primarily of grocery, general merchandise, health and beauty care and natural foods. | |||||||||||||||||
(2) Consists primarily of produce, floral, meat, seafood, deli and bakery. | |||||||||||||||||
(3) Consists primarily of jewelry store sales, outside manufacturing sales and sales from entities not controlled by the Company. |
MERGER
MERGER | 12 Months Ended | |||||||
Feb. 01, 2014 | ||||||||
MERGER | ' | |||||||
MERGER | ' | |||||||
2. MERGER | ||||||||
On January 28, 2014, the Company closed its merger with Harris Teeter by purchasing 100% of the Harris Teeter outstanding common stock for $2,436. The merger allows us to expand into the fast-growing southeastern and mid-Atlantic markets and into Washington, D.C. The merger was accounted for under the purchase method of accounting and was financed through a combination of commercial paper and long-term debt (see Note 6). In a business combination, the purchase price is allocated to assets acquired and liabilities assumed based on their fair values, with any excess of purchase price over fair value recognized as goodwill. In addition to recognizing the assets and liabilities on the acquired company’s balance sheet, the Company reviews supply contracts, leases, financial instruments, employment agreements and other significant agreements to identify potential assets or liabilities that require recognition in connection with the application of acquisition accounting under ASC 805. Intangible assets are recognized apart from goodwill when the asset arises from contractual or other legal rights, or are separable from the acquired entity such that they may be sold, transferred, licensed, rented or exchanged either on a standalone basis or in combination with a related contract, asset or liability. | ||||||||
Pending the finalization of the Company’s valuations and other items, the following table summarizes the preliminary fair values of the assets acquired and liabilities assumed: | ||||||||
January 28, | ||||||||
2014 | ||||||||
ASSETS | ||||||||
Cash and temporary cash investments | $ | 92 | ||||||
Store deposits in-transit | 28 | |||||||
Receivables | 41 | |||||||
FIFO inventory | 426 | |||||||
Prepaid and other current assets | 31 | |||||||
Total current assets | 618 | |||||||
Property, plant and equipment | 1,328 | |||||||
Intangibles | 558 | |||||||
Other assets | 238 | |||||||
Total Assets, excluding Goodwill | 2,742 | |||||||
LIABILITIES | ||||||||
Current portion of long-term debt including obligations under capital leases and financing obligations | (7 | ) | ||||||
Trade accounts payable | (202 | ) | ||||||
Accrued salaries and wages | (47 | ) | ||||||
Deferred income taxes | (20 | ) | ||||||
Other current liabilities | (159 | ) | ||||||
Total current liabilities | (435 | ) | ||||||
Fair-value of long-term debt including obligations under capital leases and financing obligations | (252 | ) | ||||||
Deferred income taxes | (285 | ) | ||||||
Pension and postretirement benefit obligations | (98 | ) | ||||||
Other long-term liabilities | (137 | ) | ||||||
Total Liabilities | (1,207 | ) | ||||||
Total Identifiable Net Assets | 1,535 | |||||||
Goodwill | 901 | |||||||
Total Purchase Price | $ | 2,436 | ||||||
Of the $558 allocated to intangible assets, $430 relates to the Harris Teeter trade name, to which we assigned an indefinite life and, therefore, will not be amortized. The Company also recorded $53 and $75 related to pharmacy prescription files and favorable leasehold interests, respectively. The Company will amortize the pharmacy prescription files and favorable leasehold interests over seven and 24 years, respectively. The goodwill recorded as part of the merger was attributable to the assembled workforce of Harris Teeter and operational synergies expected from the merger, as well as any intangible assets that do not qualify for separate recognition. The transaction was treated as a stock purchase for income tax purposes. The assets acquired and liabilities assumed as part of the merger did not result in a step up of the tax basis and goodwill is not expected to be deductible for tax purposes. The above amounts represent the preliminary allocation of the purchase price, and are subject to revision when the resulting valuations of property and intangible assets are finalized, which will occur prior to January 28, 2015. Due to the timing of the merger closing late in the year, the revenue and earnings of Harris Teeter in 2013 were not material. | ||||||||
Pro forma results of operations, assuming the transaction had taken place at the beginning of 2012, are included in the following table. The pro forma information includes historical results of operations of Harris Teeter and adjustments for interest expense that would have been incurred due to financing the acquisition, depreciation and amortization of the assets acquired and excludes the pre-acquisition transaction related expenses incurred by Harris Teeter and the Company. The pro forma information does not include efficiencies, cost reductions, synergies and investments in lower prices for our customers expected to result from the merger or immaterial acquisitions completed in 2012. The unaudited pro forma financial information is not necessarily indicative of the results that actually would have occurred had the merger been completed at the beginning of the 2012. | ||||||||
Fiscal year ended | Fiscal year ended | |||||||
February 1, 2014 | February 2, 2013 | |||||||
Sales | $ | 103,202 | $ | 101,214 | ||||
Net earnings including noncontrolling interests | 1,664 | 1,584 | ||||||
Net earnings attributable to noncontrolling interests | 12 | 11 | ||||||
Net earnings attributable to The Kroger Co. | $ | 1,652 | $ | 1,573 |
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||
Feb. 01, 2014 | ||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||
3. GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||
The following table summarizes the changes in the Company’s net goodwill balance through February 1, 2014. | ||||||||||||||
2013 | 2012 | |||||||||||||
Balance beginning of year | ||||||||||||||
Goodwill | $ | 3,766 | $ | 3,670 | ||||||||||
Accumulated impairment losses | (2,532 | ) | (2,532 | ) | ||||||||||
1,234 | 1,138 | |||||||||||||
Activity during the year | ||||||||||||||
Acquisitions | 901 | 96 | ||||||||||||
Balance end of year | ||||||||||||||
Goodwill | 4,667 | 3,766 | ||||||||||||
Accumulated impairment losses | (2,532 | ) | (2,532 | ) | ||||||||||
$ | 2,135 | $ | 1,234 | |||||||||||
In 2013, the Company acquired all the outstanding shares of Harris Teeter, a supermarket retailer in southeastern and mid-Atlantic markets and Washington, D.C., resulting in additional goodwill of $901. See Note 2 for additional information regarding the merger. | ||||||||||||||
In 2012, the Company acquired an interest in one of its suppliers and all the outstanding shares of Axium Pharmacy, a leading specialty pharmacy that provides specialized drug therapies and support services for patients with complex medical conditions, resulting in combined additional goodwill of $96. | ||||||||||||||
Testing for impairment must be performed annually, or on an interim basis upon the occurrence of a triggering event or a change in circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The annual evaluation of goodwill performed during the fourth quarter of 2013, 2012 and 2011 did not result in impairment. | ||||||||||||||
Based on current and future expected cash flows, the Company believes goodwill impairments are not reasonably likely. A 10% reduction in fair value of the Company’s reporting units would not indicate a potential for impairment of the Company’s remaining goodwill balance. | ||||||||||||||
The Company acquired definite and indefinite lived intangible assets totaling approximately $558 as a result of the merger with Harris Teeter. See Note 2 for additional information regarding the merger. | ||||||||||||||
The following table summarizes the Company’s intangible assets balance through February 1, 2014. | ||||||||||||||
2013 | 2012 | |||||||||||||
Gross carrying | Accumulated | Gross carrying | Accumulated | |||||||||||
amount | amortization(1) | amount | amortization(1) | |||||||||||
Definite-lived favorable leasehold interests | $ | 144 | $ | (61 | ) | $ | 69 | $ | (58 | ) | ||||
Definite-lived pharmacy prescription files | 95 | (28 | ) | 45 | (26 | ) | ||||||||
Definite-lived other | 78 | (10 | ) | 54 | (2 | ) | ||||||||
Indefinite-lived trade name | 430 | — | — | — | ||||||||||
Indefinite-lived liquor licenses | 54 | — | 48 | — | ||||||||||
Total | $ | 801 | $ | (99 | ) | $ | 216 | $ | (86 | ) | ||||
(1) Favorable leasehold interests are amortized to rent expense, pharmacy prescription files are amortized to merchandise costs and other intangibles are amortized to operating, general and administrative expense. | ||||||||||||||
Amortization expense associated with intangible assets totaled approximately $18, $13 and $12, during fiscal years 2013, 2012 and 2011, respectively. Future amortization expense associated with the net carrying amount of definite-lived intangible assets for the years subsequent to 2013 is estimated to be approximately: | ||||||||||||||
2014 | $ | 28 | ||||||||||||
2015 | 25 | |||||||||||||
2016 | 22 | |||||||||||||
2017 | 21 | |||||||||||||
2018 | 20 | |||||||||||||
Thereafter | 102 | |||||||||||||
Total future estimated amortization associated with definite-lived intangible assets | $ | 218 |
PROPERTY_PLANT_AND_EQUIPMENT_N
PROPERTY, PLANT AND EQUIPMENT, NET | 12 Months Ended | |||||||
Feb. 01, 2014 | ||||||||
PROPERTY, PLANT AND EQUIPMENT, NET | ' | |||||||
PROPERTY, PLANT AND EQUIPMENT, NET | ' | |||||||
4. PROPERTY, PLANT AND EQUIPMENT, NET | ||||||||
Property, plant and equipment, net consists of: | ||||||||
2013 | 2012 | |||||||
Land | $ | 2,639 | $ | 2,450 | ||||
Buildings and land improvements | 8,848 | 8,249 | ||||||
Equipment | 11,037 | 10,267 | ||||||
Leasehold improvements | 7,644 | 6,545 | ||||||
Construction-in-progress | 1,520 | 1,239 | ||||||
Leased property under capital leases and financing obligations | 691 | 593 | ||||||
Total property, plant and equipment | 32,379 | 29,343 | ||||||
Accumulated depreciation and amortization | (15,486 | ) | (14,495 | ) | ||||
Property, plant and equipment, net | $ | 16,893 | $ | 14,848 | ||||
Accumulated depreciation for leased property under capital leases was $339 at February 1, 2014 and $321 at February 2, 2013. | ||||||||
Approximately $232 and $236, original cost, of Property, Plant and Equipment collateralized certain mortgages at February 1, 2014 and February 2, 2013, respectively. |
TAXES_BASED_ON_INCOME
TAXES BASED ON INCOME | 12 Months Ended | ||||||||||
Feb. 01, 2014 | |||||||||||
TAXES BASED ON INCOME | ' | ||||||||||
TAXES BASED ON INCOME | ' | ||||||||||
5. TAXES BASED ON INCOME | |||||||||||
The provision for taxes based on income consists of: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Federal | |||||||||||
Current | $ | 638 | $ | 563 | $ | 146 | |||||
Deferred | 81 | 154 | 78 | ||||||||
Subtotal federal | 719 | 717 | 224 | ||||||||
State and local | |||||||||||
Current | 42 | 46 | 42 | ||||||||
Deferred | (10 | ) | 31 | (19 | ) | ||||||
Subtotal state and local | 32 | 77 | 23 | ||||||||
Total | $ | 751 | $ | 794 | $ | 247 | |||||
A reconciliation of the statutory federal rate and the effective rate follows: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | |||||
State income taxes, net of federal tax benefit | 0.9 | % | 2.2 | % | 1.8 | % | |||||
Credits | (1.3 | )% | (1.4 | )% | (3.6 | )% | |||||
Favorable resolution of issues | ¾ | (0.5 | )% | (3.4 | )% | ||||||
Domestic manufacturing deduction | (1.1 | )% | (0.5 | )% | (1.3 | )% | |||||
Other changes, net | (0.6 | )% | (0.3 | )% | 0.8 | % | |||||
32.9 | % | 34.5 | % | 29.3 | % | ||||||
The 2013 tax rate differed from the federal statutory rate primarily as a result of the utilization of tax credits, the Domestic Manufacturing Deduction and other changes, partially offset by the effect of state income taxes. The 2013 rate for state income taxes is lower than 2012 and 2011 due to an increase in state credits, including the benefit from filing amended returns to claim additional credits. The 2013 benefit from the Domestic Manufacturing Deduction increased from 2012 due to additional deductions taken in 2013, as well as the amendment of prior years’ tax returns to claim the additional benefit available in years still under review by the Internal Revenue Service. The 2011 effective tax rate was significantly lower than 2013 and 2012 due to the effect on pre-tax income of the UFCW consolidated pension plan charge of $953 ($591 after-tax) in 2011. The effect of the UFCW consolidated pension plan charge reduced pre-tax income thereby increasing the effect of credits and of the favorable resolution of tax issues on our 2011 effective tax rate. | |||||||||||
The tax effects of significant temporary differences that comprise tax balances were as follows: | |||||||||||
2013 | 2012 | ||||||||||
Current deferred tax assets: | |||||||||||
Net operating loss and credit carryforwards | $ | 4 | $ | 4 | |||||||
Compensation related costs | 103 | 79 | |||||||||
Other | 15 | ¾ | |||||||||
Subtotal | 122 | 83 | |||||||||
Valuation allowance | (9 | ) | (4 | ) | |||||||
Total current deferred tax assets | 113 | 79 | |||||||||
Current deferred tax liabilities: | |||||||||||
Insurance related costs | (96 | ) | (116 | ) | |||||||
Inventory related costs | (265 | ) | (234 | ) | |||||||
Other | ¾ | (17 | ) | ||||||||
Total current deferred tax liabilities | (361 | ) | (367 | ) | |||||||
Current deferred taxes | $ | (248 | ) | $ | (288 | ) | |||||
Long-term deferred tax assets: | |||||||||||
Compensation related costs | $ | 464 | $ | 564 | |||||||
Lease accounting | 115 | 87 | |||||||||
Closed store reserves | 54 | 56 | |||||||||
Insurance related costs | 66 | 77 | |||||||||
Net operating loss and credit carryforwards | 103 | 82 | |||||||||
Other | ¾ | 2 | |||||||||
Subtotal | 802 | 868 | |||||||||
Valuation allowance | (38 | ) | (28 | ) | |||||||
Total long-term deferred tax assets | 764 | 840 | |||||||||
Long-term deferred tax liabilities: | |||||||||||
Depreciation | (2,128 | ) | (1,636 | ) | |||||||
Other | (17 | ) | ¾ | ||||||||
Total long-term deferred tax liabilities | (2,145 | ) | (1,636 | ) | |||||||
Long-term deferred taxes | $ | (1,381 | ) | $ | (796 | ) | |||||
The long-term deferred tax liability for depreciation increased over the prior year due to the inclusion of Harris Teeter and an adjustment to the estimated tax depreciation used in the 2012 provision that resulted in a correction in the balance sheet between other current liabilities and long-term deferred income taxes in 2013. The amount of the correction was not material to any periods presented. | |||||||||||
At February 1, 2014, the Company had net operating loss carryforwards for state income tax purposes of $1,280. These net operating loss carryforwards expire from 2014 through 2032. The utilization of certain of the Company’s net operating loss carryforwards may be limited in a given year. Further, based on the analysis described below, the Company has recorded a valuation allowance against some of the deferred tax assets resulting from its net operating losses. | |||||||||||
At February 1, 2014, the Company had state credit carryforwards of $34, most of which expire from 2014 through 2027. The utilization of certain of the Company’s credits may be limited in a given year. Further, based on the analysis described below, the Company has recorded a valuation allowance against some of the deferred tax assets resulting from its state credits. | |||||||||||
The Company regularly reviews all deferred tax assets on a tax filer and jurisdictional basis to estimate whether these assets are more likely than not to be realized based on all available evidence. This evidence includes historical taxable income, projected future taxable income, the expected timing of the reversal of existing temporary differences and the implementation of tax planning strategies. Projected future taxable income is based on expected results and assumptions as to the jurisdiction in which the income will be earned. The expected timing of the reversals of existing temporary differences is based on current tax law and the Company’s tax methods of accounting. Unless deferred tax assets are more likely than not to be realized, a valuation allowance is established to reduce the carrying value of the deferred tax asset until such time that realization becomes more likely than not. Increases and decreases in these valuation allowances are included in “Income tax expense” in the Consolidated Statements of Operations. | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits, including positions impacting only the timing of tax benefits, is as follows: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Beginning balance | $ | 299 | $ | 310 | $ | 285 | |||||
Additions based on tax positions related to the current year | 23 | 45 | 24 | ||||||||
Reductions based on tax positions related to the current year | (10 | ) | (9 | ) | ¾ | ||||||
Additions for tax positions of prior years | 17 | 1 | 24 | ||||||||
Reductions for tax positions of prior years | (4 | ) | (27 | ) | (11 | ) | |||||
Settlements | ¾ | (21 | ) | (12 | ) | ||||||
Ending balance | $ | 325 | $ | 299 | $ | 310 | |||||
The Company does not anticipate that changes in the amount of unrecognized tax benefits over the next twelve months will have a significant impact on its results of operations or financial position. | |||||||||||
As of February 1, 2014, February 2, 2013 and January 28, 2012, the amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $98, $70 and $81 respectively. | |||||||||||
To the extent interest and penalties would be assessed by taxing authorities on any underpayment of income tax, such amounts have been accrued and classified as a component of income tax expense. During the years ended February 1, 2014, February 2, 2013 and January 28, 2012, the Company recognized approximately $10, $(8) and $(24), respectively, in interest and penalties (recoveries). The Company had accrued approximately $41 and $33 for the payment of interest and penalties as of February 1, 2014 and February 2, 2013, respectively. | |||||||||||
As of February 1, 2014, the Internal Revenue Service had concluded its field examination of the Company’s 2008 and 2009 federal tax returns and is currently auditing years 2010 and 2011. The 2010 and 2011 audits are expected to be completed in 2014. The Company has filed an administrative appeal with the Internal Revenue Service protesting certain adjustments proposed by the Internal Revenue Service as a result of their field work. | |||||||||||
On September 13, 2013, the U.S. Department of the Treasury and Internal Revenue Service released final tangible property regulations that provide guidance on the tax treatment regarding the deduction and capitalization of expenditures related to tangible property. These regulations are effective for tax years beginning on or after January 1, 2014. The Company is currently assessing these rules and their effect on its financial statements, and believes adoption of these regulations will not have an effect on net income and will not have a material effect on the reclassification between long-term deferred tax liabilities and current income tax liabilities. |
DEBT_OBLIGATIONS
DEBT OBLIGATIONS | 12 Months Ended | |||||||
Feb. 01, 2014 | ||||||||
DEBT OBLIGATIONS | ' | |||||||
DEBT OBLIGATIONS | ' | |||||||
6. DEBT OBLIGATIONS | ||||||||
Long-term debt consists of: | ||||||||
2013 | 2012 | |||||||
0.80% to 8.00% Senior notes due through 2043 | $ | 9,083 | $ | 6,587 | ||||
5.00% to 12.75% Mortgages due in varying amounts through 2034 | 64 | 60 | ||||||
0.27% to 0.45% Commercial paper due through February 2014 | 1,250 | 1,645 | ||||||
Other | 383 | 184 | ||||||
Total debt | 10,780 | 8,476 | ||||||
Less current portion | (1,616 | ) | (2,700 | ) | ||||
Total long-term debt | $ | 9,164 | $ | 5,776 | ||||
In 2013, the Company issued $600 of senior notes due in fiscal year 2023 bearing an interest rate of 3.85%, $400 of senior notes due in fiscal year 2043 bearing an interest rate of 5.15%, $500 of senior notes due in fiscal year 2016 bearing an interest rate of 3-month London Inter-Bank Offering Rate plus 53 basis points, $300 of senior notes due in fiscal year 2016 bearing an interest rate of 1.20%, $500 of senior notes due in fiscal year 2019 bearing an interest rate of 2.30%, $700 of senior notes due in fiscal year 2021 bearing an interest rate of 3.30% and $500 in senior notes due in fiscal year 2024 bearing an interest rate of 4.00%. In 2013, the Company repaid $400 of senior notes bearing an interest rate of 5.00% and $600 of senior notes bearing an interest rate of 7.50% upon their maturity. | ||||||||
In 2012, the Company issued $500 of senior notes due in fiscal year 2022 bearing an interest rate of 3.40% and $350 of senior notes due in fiscal year 2042 bearing an interest rate of 5.00%. In 2012, the Company repaid upon their maturity $491 of senior notes bearing an interest rate of 6.75%, $346 of senior notes bearing an interest rate of 6.20% and $500 of senior notes bearing an interest rate of 5.50%. | ||||||||
On January 25, 2012, the Company amended and extended its $2,000 unsecured revolving credit facility. The Company entered into the amended credit facility to amend and extend the Company’s existing credit facility which would have terminated on May 15, 2014. The amended credit facility provides for a $2,000 unsecured revolving credit facility (the “Credit Agreement”), with a termination date of January 25, 2017, unless extended as permitted under the Credit Agreement. The Company has the ability to increase the size of the Credit Agreement by up to an additional $500, subject to certain conditions. | ||||||||
Borrowings under the Credit Agreement bear interest at the Company’s option, at either (i) LIBOR plus a market rate spread, based on the Company’s Leverage Ratio or (ii) the base rate, defined as the highest of (a) the Bank of America prime rate, (b) the Federal Funds rate plus 0.5%, and (c) one-month LIBOR plus 1.0%, plus a market rate spread based on the Company’s Leverage Ratio. The Company will also pay a Commitment Fee based on the Leverage Ratio and Letter of Credit fees equal to a market rate spread based on the Company’s Leverage Ratio. The Credit Agreement contains covenants, which, among other things, require the maintenance of a Leverage Ratio of not greater than 3.50:1.00 and a Fixed Charge Coverage Ratio of not less than 1.70:1.00. In the first quarter of 2012, the covenants were amended to exclude up to $1,000 in expense related to the Company’s commitment to fund the UFCW consolidated pension plan. The Company may repay the Credit Agreement in whole or in part at any time without premium or penalty. The Credit Agreement is not guaranteed by the Company’s subsidiaries. | ||||||||
In addition to the Credit Agreement, the Company maintained two uncommitted money market lines totaling $75 in the aggregate. The money market lines allow the Company to borrow from banks at mutually agreed upon rates, usually at rates below the rates offered under the credit agreement. As of February 1, 2014, the Company had $1,250 of borrowings of commercial paper, with a weighted average interest rate of 0.27%, and no borrowings under its Credit Agreement and money market lines. As of February 2, 2013, the Company had $1,645 of borrowings of commercial paper, with a weighted average interest rate of 0.45%, and no borrowings under its Credit Agreement and money market lines. | ||||||||
As of February 1, 2014, the Company had outstanding letters of credit in the amount of $209, of which $12 reduces funds available under the Company’s Credit Agreement. The letters of credit are maintained primarily to support performance, payment, deposit or surety obligations of the Company. | ||||||||
Most of the Company’s outstanding public debt is subject to early redemption at varying times and premiums, at the option of the Company. In addition, subject to certain conditions, some of the Company’s publicly issued debt will be subject to redemption, in whole or in part, at the option of the holder upon the occurrence of a redemption event, upon not less than five days’ notice prior to the date of redemption, at a redemption price equal to the default amount, plus a specified premium. “Redemption Event” is defined in the indentures as the occurrence of (i) any person or group, together with any affiliate thereof, beneficially owning 50% or more of the voting power of the Company, (ii) any one person or group, or affiliate thereof, succeeding in having a majority of its nominees elected to the Company’s Board of Directors, in each case, without the consent of a majority of the continuing directors of the Company or (iii) both a change of control and a below investment grade rating. | ||||||||
The aggregate annual maturities and scheduled payments of long-term debt, as of year-end 2013, and for the years subsequent to 2013 are: | ||||||||
2014 | $ | 1,616 | ||||||
2015 | 524 | |||||||
2016 | 1,267 | |||||||
2017 | 708 | |||||||
2018 | 1,003 | |||||||
Thereafter | 5,662 | |||||||
Total debt | $ | 10,780 |
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||||||||||
Feb. 01, 2014 | |||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ' | ||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ' | ||||||||||||||||||||
7. DERIVATIVE FINANCIAL INSTRUMENTS | |||||||||||||||||||||
GAAP defines derivatives, requires that derivatives be carried at fair value on the balance sheet, and provides for hedge accounting when certain conditions are met. The Company’s derivative financial instruments are recognized on the balance sheet at fair value. Changes in the fair value of derivative instruments designated as “cash flow” hedges, to the extent the hedges are highly effective, are recorded in other comprehensive income, net of tax effects. Ineffective portions of cash flow hedges, if any, are recognized in current period earnings. Other comprehensive income or loss is reclassified into current period earnings when the hedged transaction affects earnings. Changes in the fair value of derivative instruments designated as “fair value” hedges, along with corresponding changes in the fair values of the hedged assets or liabilities, are recorded in current period earnings. Ineffective portions of fair value hedges, if any, are recognized in current period earnings. | |||||||||||||||||||||
The Company assesses, both at the inception of the hedge and on an ongoing basis, whether derivatives used as hedging instruments are highly effective in offsetting the changes in the fair value or cash flow of the hedged items. If it is determined that a derivative is not highly effective as a hedge or ceases to be highly effective, the Company discontinues hedge accounting prospectively. | |||||||||||||||||||||
Interest Rate Risk Management | |||||||||||||||||||||
The Company is exposed to market risk from fluctuations in interest rates. The Company manages its exposure to interest rate fluctuations through the use of a commercial paper program, interest rate swaps (fair value hedges) and forward-starting interest rate swaps (cash flow hedges). The Company’s current program relative to interest rate protection contemplates hedging the exposure to changes in the fair value of fixed-rate debt attributable to changes in interest rates. To do this, the Company uses the following guidelines: (i) use average daily outstanding borrowings to determine annual debt amounts subject to interest rate exposure, (ii) limit the average annual amount subject to interest rate reset and the amount of floating rate debt to a combined total of $2,500 or less, (iii) include no leveraged products, and (iv) hedge without regard to profit motive or sensitivity to current mark-to-market status. | |||||||||||||||||||||
The Company reviews compliance with these guidelines annually with the Financial Policy Committee of the Board of Directors. These guidelines may change as the Company’s needs dictate. | |||||||||||||||||||||
Fair Value Interest Rate Swaps | |||||||||||||||||||||
The table below summarizes the outstanding interest rate swaps designated as fair value hedges as of February 1, 2014 and February 2, 2013. | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Pay | Pay | Pay | Pay | ||||||||||||||||||
Floating | Fixed | Floating | Fixed | ||||||||||||||||||
Notional amount | $ | 100 | $ | — | $ | 475 | $ | — | |||||||||||||
Number of contracts | 2 | — | 6 | — | |||||||||||||||||
Duration in years | 4.94 | — | 1.41 | — | |||||||||||||||||
Average variable rate | 5.83 | % | — | 3.29 | % | — | |||||||||||||||
Average fixed rate | 6.8 | % | — | 5.38 | % | — | |||||||||||||||
Maturity | December 2018 | Between April 2013 and December 2018 | |||||||||||||||||||
During the first quarter of 2013, four of the Company’s fair value swaps, with a notional amount aggregating $375, matured. | |||||||||||||||||||||
The gain or loss on these derivative instruments as well as the offsetting gain or loss on the hedged items attributable to the hedged risk is recognized in current earnings as “Interest expense.” These gains and losses for 2013 and 2012 were as follows: | |||||||||||||||||||||
Year-To-Date | |||||||||||||||||||||
February 1, 2014 | February 2, 2013 | ||||||||||||||||||||
Consolidated Statement of Operations Classification | Gain/(Loss) on | Gain/(Loss) on | Gain/(Loss) on | Gain/(Loss) on | |||||||||||||||||
Swaps | Borrowings | Swaps | Borrowings | ||||||||||||||||||
Interest Expense | $ | (3 | ) | $ | 4 | $ | (24 | ) | $ | 16 | |||||||||||
The following table summarizes the location and fair value of derivative instruments designated as fair value hedges on the Company’s Consolidated Balance Sheets: | |||||||||||||||||||||
Asset Derivatives | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Derivatives Designated as Fair Value Hedging Instruments | February 1, | February 2, | Balance Sheet Location | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Interest Rate Hedges | $ | (2 | ) | $ | 1 | (Other Long-Term Liabilities)/Other Assets | |||||||||||||||
Cash Flow Forward-Starting Interest Rate Swaps | |||||||||||||||||||||
As of February 1, 2014, the Company did not have any outstanding forward-starting interest rate swap agreements. | |||||||||||||||||||||
As of February 2, 2013, the Company had 17 forward-starting interest rate swap agreements with maturity dates between April 2013 and January 2014 with an aggregate notional amount totaling $850. In 2012, the Company entered into seven of these forward-starting interest rate swap agreements with an aggregate notional amount totaling $350. A forward-starting interest rate swap is an agreement that effectively hedges the variability in future benchmark interest payments attributable to changes in interest rates on the forecasted issuance of fixed-rate debt. The Company entered into the forward-starting interest rate swaps in order to lock in fixed interest rates on its forecasted issuances of debt in fiscal year 2013. Accordingly, the forward-starting interest rate swaps were designated as cash-flow hedges as defined by GAAP. As of February 2, 2013, the fair value of the interest rate swaps was recorded in other assets and other long-term liabilities for $14 and $9, respectively, and AOCI and accumulated other comprehensive loss for $9 net of tax and $6 net of tax, respectively. | |||||||||||||||||||||
During 2013, the Company terminated 29 forward-starting interest rate swap agreements with maturity dates of April 2013 and January 2014 with an aggregate notional amount totaling $1,700. Twelve of these forward-starting interest rate swap agreements, with an aggregate notional amount totaling $850, were entered into and terminated in 2013. These forward-starting interest rate swap agreements were hedging the variability in future benchmark interest payments attributable to changing interest rates on the forecasted issuance of fixed-rate debt issued in 2013. As discussed in Note 6, the Company issued $3,500 of senior notes in 2013. Since these forward-starting interest rate swap agreements were classified as cash flow hedges, the unamortized loss of $15, $9 net of tax, has been deferred net of tax in AOCI and will be amortized to earnings as the interest payments are made. | |||||||||||||||||||||
The following table summarizes the effect of the Company’s derivative instruments designated as cash flow hedges for 2013 and 2012: | |||||||||||||||||||||
Year-To-Date | |||||||||||||||||||||
Derivatives in Cash Flow Hedging | Amount of Gain/(Loss) in | Amount of Gain/(Loss) | Location of Gain/(Loss) | ||||||||||||||||||
AOCI on Derivative | Reclassified from AOCI into | Reclassified into Income | |||||||||||||||||||
(Effective Portion) | Income (Effective Portion) | ||||||||||||||||||||
Relationships | 2013 | 2012 | 2013 | 2012 | (Effective Portion) | ||||||||||||||||
Forward-Starting Interest Rate Swaps, net of tax* | $ | (25 | ) | $ | (14 | ) | $ | (1 | ) | $ | (3 | ) | Interest expense | ||||||||
*The amounts of Gain/(Loss) in AOCI on derivatives include unamortized proceeds and payments from forward-starting interest rate swaps once classified as cash flow hedges that were terminated prior to end of 2013. | |||||||||||||||||||||
For the above fair value and cash flow interest rate swaps, the Company has entered into International Swaps and Derivatives Association master netting agreements that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits the Company or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. These master netting agreements generally also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. | |||||||||||||||||||||
Collateral is generally not required of the counterparties or of the Company under these master netting agreements. As of February 1, 2014 and February 2, 2013, no cash collateral was received or pledged under the master netting agreements. | |||||||||||||||||||||
The effect of the net settlement provisions of these master netting agreements on the Company’s derivative balances upon an event of default or termination event is as follows as of February 1, 2014 and February 2, 2013: | |||||||||||||||||||||
Net Amount | Gross Amounts Not Offset in the | ||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||
February 1, 2014 | Gross Amount | Gross Amounts Offset | Presented in the | Financial | Cash Collateral | Net Amount | |||||||||||||||
Recognized | in the Balance Sheet | Balance Sheet | Instruments | ||||||||||||||||||
Liabilities | |||||||||||||||||||||
Fair Value Interest Rate Swaps | $ | 2 | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||
Net Amount | Gross Amounts Not Offset in the | ||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||
February 2, 2013 | Gross Amount | Gross Amounts Offset | Presented in the | Financial | Cash Collateral | Net Amount | |||||||||||||||
Recognized | in the Balance Sheet | Balance Sheet | Instruments | ||||||||||||||||||
Assets | |||||||||||||||||||||
Cash Flow Forward-Starting Interest Rate Swaps | $ | 16 | $ | (2 | ) | $ | 14 | $ | — | $ | — | $ | 14 | ||||||||
Fair Value Interest Rate Swaps | 1 | — | 1 | — | — | 1 | |||||||||||||||
Total | $ | 17 | $ | (2 | ) | $ | 15 | $ | — | $ | — | $ | 15 | ||||||||
Liabilities | |||||||||||||||||||||
Cash Flow Forward-Starting Interest Rate Swaps | $ | 11 | $ | (2 | ) | $ | 9 | $ | — | $ | — | $ | 9 | ||||||||
Commodity Price Protection | |||||||||||||||||||||
The Company enters into purchase commitments for various resources, including raw materials utilized in its manufacturing facilities and energy to be used in its stores, warehouses, manufacturing facilities and administrative offices. The Company enters into commitments expecting to take delivery of and to utilize those resources in the conduct of normal business. Those commitments for which the Company expects to utilize or take delivery in a reasonable amount of time in the normal course of business qualify as normal purchases and normal sales. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||
Feb. 01, 2014 | ||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||
8. FAIR VALUE MEASUREMENTS | ||||||||||||||
GAAP establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of the fair value hierarchy defined in the standards are as follows: | ||||||||||||||
Level 1 — Quoted prices are available in active markets for identical assets or liabilities; | ||||||||||||||
Level 2 — Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable; | ||||||||||||||
Level 3 — Unobservable pricing inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing an asset or liability. | ||||||||||||||
For items carried at (or adjusted to) fair value in the consolidated financial statements, the following tables summarize the fair value of these instruments at February 1, 2014 and February 2, 2013: | ||||||||||||||
February 1, 2014 Fair Value Measurements Using | ||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | |||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||
for Identical | (Level 2) | Inputs | ||||||||||||
Assets | (Level 3) | |||||||||||||
(Level 1) | ||||||||||||||
Available-for-Sale Securities | $ | 36 | $ | — | $ | — | $ | 36 | ||||||
Warrants | — | 16 | — | 16 | ||||||||||
Long-Lived Assets | — | — | 29 | 29 | ||||||||||
Interest Rate Hedges | — | (2 | ) | — | (2 | ) | ||||||||
Total | $ | 36 | $ | 14 | $ | 29 | $ | 79 | ||||||
February 2, 2013 Fair Value Measurements Using | ||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | |||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||
for Identical | (Level 2) | Inputs | ||||||||||||
Assets | (Level 3) | |||||||||||||
(Level 1) | ||||||||||||||
Available-for-Sale Securities | $ | 8 | $ | — | $ | 20 | $ | 28 | ||||||
Long-Lived Assets | — | — | 8 | 8 | ||||||||||
Interest Rate Hedges | — | 6 | — | 6 | ||||||||||
Total | $ | 8 | $ | 6 | $ | 28 | $ | 42 | ||||||
In 2013, one of the Company’s available-for-sale securities began trading in an active market. Because of this, the Company transferred the $20 fair value of securities from a Level 3 asset to a Level 1 asset in 2013. In 2013, unrealized gains on the Level 1 available-for-sale securities totaled $8. | ||||||||||||||
The Company values warrants using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model is classified as a Level 2 input. | ||||||||||||||
The Company values interest rate hedges using observable forward yield curves. These forward yield curves are classified as Level 2 inputs. | ||||||||||||||
Fair value measurements of non-financial assets and non-financial liabilities are primarily used in the impairment analysis of goodwill, other intangible assets, long-lived assets and in the valuation of store lease exit costs. The Company reviews goodwill and other intangible assets for impairment annually, during the fourth quarter of each fiscal year, and as circumstances indicate the possibility of impairment. See Note 3 for further discussion related to the Company’s carrying value of goodwill. Long-lived assets and store lease exit costs were measured at fair value on a nonrecurring basis using Level 3 inputs as defined in the fair value hierarchy. See Note 1 for further discussion of the Company’s policies and recorded amounts for impairments of long-lived assets and valuation of store lease exit costs. In 2013, long-lived assets with a carrying amount of $68 were written down to their fair value of $29, resulting in an impairment charge of $39. In 2012, long-lived assets with a carrying amount of $26 were written down to their fair value of $8, resulting in an impairment charge of $18. | ||||||||||||||
Mergers are accounted for using the acquisition method of accounting, which requires that the purchase price paid for an acquisition be allocated to the assets and liabilities acquired based on their estimated fair values as of the effective date of the acquisition, with the excess of the purchase price over the net assets being recorded as goodwill. See Note 2 for further discussion related to the merger with Harris Teeter. | ||||||||||||||
Fair Value of Other Financial Instruments | ||||||||||||||
Current and Long-term Debt | ||||||||||||||
The fair value of the Company’s long-term debt, including current maturities, was estimated based on the quoted market prices 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 upon the net present value of the future cash flow using the forward interest rate yield curve in effect at respective year-ends. At February 1, 2014, the fair value of total debt was $11,547 compared to a carrying value of $10,780. At February 2, 2013, the fair value of total debt was $9,339 compared to a carrying value of $8,476. | ||||||||||||||
Cash and Temporary Cash Investments, Store Deposits In-Transit, Receivables, Prepaid and Other Current Assets, Trade Accounts Payable, Accrued Salaries and Wages and Other Current Liabilities | ||||||||||||||
The carrying amounts of these items approximated fair value. | ||||||||||||||
Other Assets | ||||||||||||||
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 February 1, 2014 and February 2, 2013, the carrying and fair value of long-term investments for which fair value is determinable were $51 and $44, respectively. |
OTHER_COMPREHENSIVE_INCOME_LOS
OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | |||||||||||||
Feb. 01, 2014 | ||||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | ' | |||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | ' | |||||||||||||
9. OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||
The following table represents the changes in AOCI by component for the year ended February 1, 2014: | ||||||||||||||
Cash Flow | Available for sale | Pension and | Total(1) | |||||||||||
Hedging | Securities(1) | Postretirement | ||||||||||||
Activities(1) | Defined Benefit | |||||||||||||
Plans(1) | ||||||||||||||
Balance at February 2, 2013 | $ | (14 | ) | $ | 7 | $ | (746 | ) | $ | (753 | ) | |||
OCI before reclassifications(2) | (12 | ) | 5 | 197 | 190 | |||||||||
Amounts reclassified out of AOCI | 1 | — | 98 | 99 | ||||||||||
Net current-period OCI | (11 | ) | 5 | 295 | 289 | |||||||||
Balance at February 1, 2014 | $ | (25 | ) | $ | 12 | $ | (451 | ) | $ | (464 | ) | |||
(1) All amounts are net of tax. | ||||||||||||||
(2) Net of tax of $(8), $3 and $116 for cash flow hedging activities, available for sale securities and pension and postretirement defined benefit plans, respectively. | ||||||||||||||
The following table represents the items reclassified out of AOCI and the related tax effects for the year ended February 1, 2014: | ||||||||||||||
February 1, 2014 | ||||||||||||||
Gains on cash flow hedging activities | ||||||||||||||
Amortization of unrealized gains and losses on cash flow hedging activities(1) | $ | 2 | ||||||||||||
Tax expense | (1 | ) | ||||||||||||
Net of tax | 1 | |||||||||||||
Pension and postretirement defined benefit plan items | ||||||||||||||
Amortization of amounts included in net periodic pension expense(2) | 155 | |||||||||||||
Tax expense | (57 | ) | ||||||||||||
Net of tax | 98 | |||||||||||||
Total reclassifications, net of tax | $ | 99 | ||||||||||||
(1) Reclassified from AOCI into interest expense. | ||||||||||||||
(2) Reclassified from AOCI into merchandise costs and operating, general and administrative expense. These components are included in the computation of net periodic pension expense (see Note 15 to the Company’s Consolidated Financial Statements for additional details). |
LEASES_AND_LEASEFINANCED_TRANS
LEASES AND LEASE-FINANCED TRANSACTIONS | 12 Months Ended | ||||||||||
Feb. 01, 2014 | |||||||||||
LEASES AND LEASE-FINANCED TRANSACTIONS | ' | ||||||||||
LEASES AND LEASE-FINANCED TRANSACTIONS | ' | ||||||||||
10. LEASES AND LEASE-FINANCED TRANSACTIONS | |||||||||||
While the Company’s current strategy emphasizes ownership of store real estate, the Company operates primarily in leased facilities. Lease terms generally range from 10 to 20 years with options to renew for varying terms. Terms of certain leases include escalation clauses, percentage rent based on sales or payment of executory costs such as property taxes, utilities or insurance and maintenance. Rent expense for leases with escalation clauses or other lease concessions are accounted for on a straight-line basis beginning with the earlier of the lease commencement date or the date the Company takes possession. Portions of certain properties are subleased to others for periods generally ranging from one to 20 years. | |||||||||||
Rent expense (under operating leases) consists of: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Minimum rentals | $ | 706 | $ | 727 | $ | 715 | |||||
Contingent payments | 13 | 13 | 13 | ||||||||
Tenant income | (106 | ) | (112 | ) | (109 | ) | |||||
Total rent expense | $ | 613 | $ | 628 | $ | 619 | |||||
Minimum annual rentals and payments under capital leases and lease-financed transactions for the five years subsequent to 2013 and in the aggregate are: | |||||||||||
Capital | Operating | Lease- | |||||||||
Leases | Leases | Financed | |||||||||
Transactions | |||||||||||
2014 | $ | 62 | $ | 832 | $ | 6 | |||||
2015 | 57 | 770 | 7 | ||||||||
2016 | 53 | 708 | 7 | ||||||||
2017 | 52 | 634 | 8 | ||||||||
2018 | 43 | 563 | 8 | ||||||||
Thereafter | 349 | 3,101 | 83 | ||||||||
616 | $ | 6,608 | $ | 119 | |||||||
Less estimated executory costs included in capital leases | — | ||||||||||
Net minimum lease payments under capital leases | 616 | ||||||||||
Less amount representing interest | 204 | ||||||||||
Present value of net minimum lease payments under capital leases | $ | 412 | |||||||||
Total future minimum rentals under noncancellable subleases at February 1, 2014, were $217. |
EARNINGS_PER_COMMON_SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended | |||||||||||||||||||||||||
Feb. 01, 2014 | ||||||||||||||||||||||||||
EARNINGS PER COMMON SHARE | ' | |||||||||||||||||||||||||
EARNINGS PER COMMON SHARE | ' | |||||||||||||||||||||||||
11. 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: | ||||||||||||||||||||||||||
For the year ended | For the year ended | For the year ended | ||||||||||||||||||||||||
February 1, 2014 | February 2, 2013 | January 28, 2012 | ||||||||||||||||||||||||
(in millions, except per share amounts) | Earnings | Shares | Per | Earnings | Shares | Per | Earnings | Shares | Per | |||||||||||||||||
(Numerator) | (Denominator) | Share | (Numerator) | (Denominator) | Share | (Numerator) | (Denominator) | Share | ||||||||||||||||||
Amount | Amount | Amount | ||||||||||||||||||||||||
Net earnings attributable to The | $ | 1,507 | 514 | $ | 2.93 | $ | 1,485 | 533 | $ | 2.78 | $ | 598 | 590 | $ | 1.01 | |||||||||||
Kroger Co. per basic common share | ||||||||||||||||||||||||||
Dilutive effect of stock options | 6 | 4 | 3 | |||||||||||||||||||||||
Net earnings attributable to The | $ | 1,507 | 520 | $ | 2.9 | $ | 1,485 | 537 | $ | 2.77 | $ | 598 | 593 | $ | 1.01 | |||||||||||
Kroger Co. per diluted common share | ||||||||||||||||||||||||||
The Company had undistributed and distributed earnings to participating securities totaling $12, $12 and $4 in 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||||
For the years ended February 1, 2014, February 2, 2013 and January 28, 2012, there were options outstanding for approximately 2.3 million, 12.2 million and 12.2 million common shares, respectively, which were excluded from the computation of net earnings attributable to The Kroger Co. per diluted common share. These shares were excluded because their inclusion would have had an anti-dilutive effect on EPS. |
STOCK_OPTION_PLANS
STOCK OPTION PLANS | 12 Months Ended | |||||||||||||
Feb. 01, 2014 | ||||||||||||||
STOCK OPTION PLANS | ' | |||||||||||||
STOCK OPTION PLANS | ' | |||||||||||||
12. STOCK OPTION PLANS | ||||||||||||||
The Company grants options for common shares (“stock options”) to employees under various plans at an option price equal to the fair market value of the stock at the date of grant. The Company accounts for stock options under the fair value recognition provisions. Under this method, the Company recognizes compensation expense for all share-based payments granted. The Company recognizes share-based compensation expense, net of an estimated forfeiture rate, over the requisite service period of the award. Equity awards may be made at one of four meetings of its Board of Directors occurring shortly after the Company’s release of quarterly earnings. The 2013 primary grant was made in conjunction with the June meeting of the Company’s Board of Directors. | ||||||||||||||
Stock options typically expire 10 years from the date of grant. Stock options vest between one and five years from the date of grant. At February 1, 2014, approximately 11 million common shares were available for future option grants under these plans. | ||||||||||||||
In addition to the stock options described above, the Company awards restricted stock to employees, as well as to non-employee directors, under various plans. The restrictions on these awards generally lapse between one and five years from the date of the awards. The Company records expense for restricted stock awards in an amount equal to the fair market value of the underlying shares on the grant date of the award, over the period the awards lapse. As of February 1, 2014, approximately 5 million common shares were available under the 2005, 2008 and 2011 Long-Term Incentive Plans (the “Plans”) for future restricted stock awards or shares issued to the extent performance criteria are achieved. The Company has the ability to convert shares available for stock options under the Plans to shares available for restricted stock awards. Under some of the Plans, four shares available for option awards can be converted into one share available for restricted stock awards. | ||||||||||||||
All awards become immediately exercisable upon certain changes of control of the Company. | ||||||||||||||
Stock Options | ||||||||||||||
Changes in options outstanding under the stock option plans are summarized below: | ||||||||||||||
Shares | Weighted- | |||||||||||||
subject | average | |||||||||||||
to option | exercise | |||||||||||||
(in millions) | price | |||||||||||||
Outstanding, year-end 2010 | 35.9 | $ | 21.45 | |||||||||||
Granted | 3.9 | $ | 24.69 | |||||||||||
Exercised | (5.9 | ) | $ | 20.28 | ||||||||||
Canceled or Expired | (2.9 | ) | $ | 24.43 | ||||||||||
Outstanding, year-end 2011 | 31 | $ | 21.8 | |||||||||||
Granted | 4.1 | $ | 22.04 | |||||||||||
Exercised | (6.7 | ) | $ | 18.35 | ||||||||||
Canceled or Expired | (1.9 | ) | $ | 23.28 | ||||||||||
Outstanding, year-end 2012 | 26.5 | $ | 22.61 | |||||||||||
Granted | 4.2 | $ | 37.68 | |||||||||||
Exercised | (8.8 | ) | $ | 22.22 | ||||||||||
Canceled or Expired | (0.2 | ) | $ | 25.47 | ||||||||||
Outstanding, year-end 2013 | 21.7 | $ | 25.66 | |||||||||||
A summary of options outstanding and exercisable at February 1, 2014 follows: | ||||||||||||||
Range of Exercise Prices | Number | Weighted- | Weighted- | Options | Weighted-average | |||||||||
outstanding | average | average | exercisable | exercise price | ||||||||||
remaining | exercise price | |||||||||||||
contractual life | ||||||||||||||
(in millions) | (in years) | (in millions) | ||||||||||||
$13.78 - $18.57 | 2.1 | 0.99 | $ | 16.62 | 2.1 | $ | 16.62 | |||||||
$18.58 - $20.97 | 3.6 | 4.8 | $ | 20.09 | 2.9 | $ | 20.06 | |||||||
$20.98 - $23.37 | 5.2 | 7.28 | $ | 22.11 | 2.6 | $ | 22.21 | |||||||
$23.38 - $28.17 | 3.1 | 7.22 | $ | 24.82 | 1.6 | $ | 24.89 | |||||||
$28.18 - $32.97 | 3.6 | 4.01 | $ | 28.51 | 3.5 | $ | 28.44 | |||||||
$32.98 - $40.99 | 4.1 | 9.44 | $ | 37.81 | — | $ | 37.76 | |||||||
$13.78 - $40.99 | 21.7 | 6.12 | $ | 25.66 | 12.7 | $ | 22.88 | |||||||
The weighted-average remaining contractual life for options exercisable at February 1, 2014, was approximately 4.5 years. The intrinsic value of options outstanding and exercisable at February 1, 2014 was $233 and $169, respectively. | ||||||||||||||
Restricted stock | ||||||||||||||
Changes in restricted stock outstanding under the restricted stock plans are summarized below: | ||||||||||||||
Restricted | Weighted-average | |||||||||||||
shares | grant-date | |||||||||||||
outstanding | fair value | |||||||||||||
(in millions) | ||||||||||||||
Outstanding, year-end 2010 | 4.4 | $ | 22.39 | |||||||||||
Granted | 2.5 | $ | 24.63 | |||||||||||
Lapsed | (2.5 | ) | $ | 21.96 | ||||||||||
Canceled or Expired | (0.2 | ) | $ | 23.8 | ||||||||||
Outstanding, year-end 2011 | 4.2 | $ | 23.92 | |||||||||||
Granted | 2.6 | $ | 22.23 | |||||||||||
Lapsed | (2.4 | ) | $ | 24.34 | ||||||||||
Canceled or Expired | (0.1 | ) | $ | 23.28 | ||||||||||
Outstanding, year-end 2012 | 4.3 | $ | 22.67 | |||||||||||
Granted | 3.2 | $ | 37.69 | |||||||||||
Lapsed | (2.5 | ) | $ | 22.97 | ||||||||||
Canceled or Expired | (0.1 | ) | $ | 27.31 | ||||||||||
Outstanding, year-end 2013 | 4.8 | $ | 32.31 | |||||||||||
The weighted-average grant date fair value of stock options granted during 2013, 2012 and 2011was $8.98, $4.39 and $6.00, respectively. The fair value of each stock option grant was estimated on the date of grant using the Black-Scholes option-pricing model, based on the assumptions shown in the table below. The Black-Scholes model utilizes extensive judgment and financial estimates, including the term employees are expected to retain their stock options before exercising them, the volatility of the Company’s stock price over that expected term, the dividend yield over the term and the number of awards expected to be forfeited before they vest. Using alternative assumptions in the calculation of fair value would produce fair values for stock option grants that could be different than those used to record stock-based compensation expense in the Consolidated Statements of Operations. The increase in the fair value of the stock options granted during 2013, compared to 2012, resulted primarily from an increase in the Company’s share price, an increase in the weighted average risk-free interest rate and a decrease in the expected dividend yield. The decrease in the fair value of the stock options granted during 2012, compared to 2011, resulted primarily from a decrease in the Company’s share price, a decrease in the weighted average risk-free interest rate and an increase in the expected dividend yield. | ||||||||||||||
The following table reflects the weighted-average assumptions used for grants awarded to option holders: | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Weighted average expected volatility | 26.34 | % | 26.49 | % | 26.31 | % | ||||||||
Weighted average risk-free interest rate | 1.87 | % | 0.97 | % | 2.16 | % | ||||||||
Expected dividend yield | 1.82 | % | 2.49 | % | 1.9 | % | ||||||||
Expected term (based on historical results) | 6.8 years | 6.9 years | 6.9 years | |||||||||||
The weighted-average risk-free interest rate was based on the yield of a treasury note as of the grant date, continuously compounded, which matures at a date that approximates the expected term of the options. The dividend yield was based on our history and expectation of dividend payouts. Expected volatility was determined based upon historical stock volatilities; however, implied volatility was also considered. Expected term was determined based upon a combination of historical exercise and cancellation experience as well as estimates of expected future exercise and cancellation experience. | ||||||||||||||
Total stock compensation recognized in 2013, 2012 and 2011 was $107, $82 and $81, respectively. Stock option compensation recognized in 2013, 2012 and 2011 was $24, $22 and $22, respectively. Restricted shares compensation recognized in 2013, 2012 and 2011 was $83, $60 and $59, respectively. | ||||||||||||||
The total intrinsic value of options exercised was $115, $44 and $24 in 2013, 2012 and 2011, respectively. The total amount of cash received in 2013 by the Company from the exercise of options granted under share-based payment arrangements was $196. As of February 1, 2014, there was $154 of total unrecognized compensation expense remaining related to non-vested share-based compensation arrangements granted under the Company’s equity award plans. This cost is expected to be recognized over a weighted-average period of approximately two years. The total fair value of options that vested was $20, $23 and $33 in 2013, 2012 and 2011, respectively. | ||||||||||||||
Shares issued as a result of stock option exercises may be newly issued shares or reissued treasury shares. Proceeds received from the exercise of options, and the related tax benefit, may be utilized to repurchase the Company’s common shares under a stock repurchase program adopted by the Company’s Board of Directors. During 2013, the Company repurchased approximately eight million common shares in such a manner. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Feb. 01, 2014 | |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | ' |
13. 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 Company’s estimates, future earnings will be charged or credited. | |
The principal contingencies are described below: | |
Insurance — The Company’s workers’ compensation risks are self-insured in most 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 all 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 — Various claims and lawsuits arising in the normal course of business, including suits charging violations of certain antitrust, wage and hour, or civil rights laws, are pending against the Company. Some of these suits purport or have been determined to be class actions and/or seek substantial damages. Any damages that may be awarded in antitrust cases will be automatically trebled. Although it is not possible at this time to evaluate the merits of all of these claims and lawsuits, nor their likelihood of success, the Company is of the belief that any resulting liability will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows. | |
The Company continually evaluates its exposure to loss contingencies arising from pending or threatened litigation and believes it has made provisions where the loss contingency can be reasonably estimated and an adverse outcome is probable. Nonetheless, assessing and predicting the outcomes of these matters involves substantial uncertainties. Management currently believes that the aggregate range of loss for the Company’s exposure is not material to the Company. It remains possible that despite management’s current belief, material differences in actual outcomes or changes in management’s evaluation or predictions could arise that could have a material adverse effect on the Company’s financial condition, results of operations, or cash flows. | |
Assignments — The Company is contingently liable for leases that have been assigned to various third parties in connection with facility closings and dispositions. The Company could be required to satisfy the obligations under the leases if any of the assignees is unable to fulfill its lease obligations. Due to the wide distribution of the Company’s assignments among third parties, and various other remedies available, the Company believes the likelihood that it will be required to assume a material amount of these obligations is remote. |
STOCK
STOCK | 12 Months Ended |
Feb. 01, 2014 | |
STOCK | ' |
STOCK | ' |
14. STOCK | |
Preferred Shares | |
The Company has authorized five million shares of voting cumulative preferred shares; two million shares were available for issuance at February 1, 2014. The shares have a par value of $100 per share and are issuable in series. | |
Common Shares | |
The Company has authorized one billion common shares, $1 par value per share. On May 20, 1999, the shareholders authorized an amendment to the Amended Articles of Incorporation to increase the number of authorized common shares from one billion to two billion when the Board of Directors determines it to be in the best interest of the Company. | |
Common Stock Repurchase Program | |
The Company maintains stock repurchase programs that comply with Securities Exchange Act Rule 10b5-1 to allow for the orderly repurchase of The Kroger Co. common shares, from time to time. The Company made open market purchases totaling $338, $1,165 and $1,420 under these repurchase programs in 2013, 2012 and 2011, respectively. In addition to these repurchase programs, in December 1999, the Company began a program to repurchase common shares to reduce dilution resulting from its employee stock option plans. This program is solely funded by proceeds from stock option exercises and the related tax benefit. The Company repurchased approximately $271, $96 and $127 under the stock option program during 2013, 2012 and 2011, respectively. |
COMPANYSPONSORED_BENEFIT_PLANS
COMPANY-SPONSORED BENEFIT PLANS | 12 Months Ended | ||||||||||||||||||||||||||||
Feb. 01, 2014 | |||||||||||||||||||||||||||||
COMPANY- SPONSORED BENEFIT PLANS | ' | ||||||||||||||||||||||||||||
COMPANY- SPONSORED BENEFIT PLANS | ' | ||||||||||||||||||||||||||||
15. COMPANY- SPONSORED BENEFIT PLANS | |||||||||||||||||||||||||||||
The Company administers non-contributory defined benefit retirement plans for some non-union employees and union-represented employees as determined by the terms and conditions of collective bargaining agreements. These include several qualified pension plans (the “Qualified Plans”) and non-qualified plans (the “Non-Qualified Plans”). The Non-Qualified Plans pay benefits to any employee that earns in excess of the maximum allowed for the Qualified Plans by Section 415 of the Internal Revenue Code. The Company only funds obligations under the Qualified Plans. Funding for the pension plans is based on a review of the specific requirements and on evaluation of the assets and liabilities of each plan. | |||||||||||||||||||||||||||||
In addition to providing pension benefits, the Company provides certain health care benefits for retired employees. The majority of the Company’s employees may become eligible for these benefits if they reach normal retirement age while employed by the Company. Funding of retiree health care benefits occurs as claims or premiums are paid. | |||||||||||||||||||||||||||||
The Company recognizes the funded status of its retirement plans on the Consolidated Balance Sheet. Actuarial gains or losses, prior service costs or credits and transition obligations that have not yet been recognized as part of net periodic benefit cost are required to be recorded as a component of AOCI. All plans are measured as of the Company’s fiscal year end. | |||||||||||||||||||||||||||||
Amounts recognized in AOCI as of February 1, 2014 and February 2, 2013 consist of the following (pre-tax): | |||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | Total | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 857 | $ | 1,201 | $ | (111 | ) | $ | (15 | ) | $ | 746 | $ | 1,186 | |||||||||||||||
Prior service cost (credit) | 2 | 3 | (35 | ) | (8 | ) | (33 | ) | (5 | ) | |||||||||||||||||||
Total | $ | 859 | $ | 1,204 | $ | (146 | ) | $ | (23 | ) | $ | 713 | $ | 1,181 | |||||||||||||||
Amounts in AOCI expected to be recognized as components of net periodic pension or postretirement benefit costs in the next fiscal year are as follows (pre-tax): | |||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | Total | |||||||||||||||||||||||||||
2014 | 2014 | 2014 | |||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 52 | $ | (6 | ) | $ | 46 | ||||||||||||||||||||||
Prior service cost (credit) | 1 | (7 | ) | (6 | ) | ||||||||||||||||||||||||
Total | $ | 53 | $ | (13 | ) | $ | 40 | ||||||||||||||||||||||
Other changes recognized in other comprehensive income in 2013, 2012 and 2011were as follows (pre-tax): | |||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | Total | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Incurred net actuarial loss (gain) | $ | (243 | ) | $ | (33 | ) | $ | 451 | $ | (97 | ) | $ | 6 | $ | 32 | $ | (340 | ) | $ | (27 | ) | $ | 483 | ||||||
Amortization of prior service credit (cost) | — | — | (1 | ) | 4 | 4 | 5 | 4 | 4 | 4 | |||||||||||||||||||
Amortization of net actuarial gain (loss) | (102 | ) | (97 | ) | (64 | ) | — | — | 2 | (102 | ) | (97 | ) | (62 | ) | ||||||||||||||
Other | — | — | — | (30 | ) | — | — | (30 | ) | — | — | ||||||||||||||||||
Total recognized in other comprehensive income | (345 | ) | (130 | ) | 386 | (123 | ) | 10 | 39 | (468 | ) | (120 | ) | 425 | |||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive income | $ | (271 | ) | $ | (41 | ) | $ | 456 | $ | (95 | ) | $ | 38 | $ | 62 | $ | (366 | ) | $ | (3 | ) | $ | 518 | ||||||
Information with respect to change in benefit obligation, change in plan assets, the funded status of the plans recorded in the Consolidated Balance Sheets, net amounts recognized at the end of fiscal years, weighted average assumptions and components of net periodic benefit cost follow: | |||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||
Qualified Plans | Non-Qualified Plans | Other Benefits | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||||||
Benefit obligation at beginning of fiscal year | $ | 3,443 | $ | 3,348 | $ | 221 | $ | 217 | $ | 402 | $ | 378 | |||||||||||||||||
Service cost | 40 | 44 | 3 | 3 | 17 | 16 | |||||||||||||||||||||||
Interest cost | 144 | 146 | 9 | 9 | 15 | 16 | |||||||||||||||||||||||
Plan participants’ contributions | — | — | — | — | 10 | 9 | |||||||||||||||||||||||
Actuarial (gain) loss | (308 | ) | 33 | (20 | ) | 3 | (97 | ) | 6 | ||||||||||||||||||||
Benefits paid | (136 | ) | (131 | ) | (10 | ) | (11 | ) | (25 | ) | (23 | ) | |||||||||||||||||
Other | — | 3 | — | — | (30 | ) | — | ||||||||||||||||||||||
Assumption of Harris Teeter benefit obligation | 326 | — | 60 | — | 2 | — | |||||||||||||||||||||||
Benefit obligation at end of fiscal year | $ | 3,509 | $ | 3,443 | $ | 263 | $ | 221 | $ | 294 | $ | 402 | |||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||
Fair value of plan assets at beginning of fiscal year | $ | 2,746 | $ | 2,523 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Actual return on plan assets | 139 | 278 | — | — | — | — | |||||||||||||||||||||||
Employer contributions | 100 | 71 | 10 | 11 | 15 | 14 | |||||||||||||||||||||||
Plan participants’ contributions | — | — | — | — | 10 | 9 | |||||||||||||||||||||||
Benefits paid | (136 | ) | (131 | ) | (10 | ) | (11 | ) | (25 | ) | (23 | ) | |||||||||||||||||
Other | — | 5 | — | — | — | — | |||||||||||||||||||||||
Assumption of Harris Teeter plan assets | 286 | — | — | — | — | — | |||||||||||||||||||||||
Fair value of plan assets at end of fiscal year | $ | 3,135 | $ | 2,746 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Funded status at end of fiscal year | $ | (374 | ) | $ | (697 | ) | $ | (263 | ) | $ | (221 | ) | $ | (294 | ) | $ | (402 | ) | |||||||||||
Net liability recognized at end of fiscal year | $ | (374 | ) | $ | (697 | ) | $ | (263 | ) | $ | (221 | ) | $ | (294 | ) | $ | (402 | ) | |||||||||||
As of February 1, 2014 and February 2, 2013, other current liabilities include $30 and $29, respectively, of net liability recognized for the above benefit plans. | |||||||||||||||||||||||||||||
The pension plan assets acquired and liabilities assumed in the Harris Teeter merger did not affect the Company’s net periodic benefit cost in 2013 due to the merger occurring close to year end. | |||||||||||||||||||||||||||||
As of February 1, 2014 and February 2, 2013, pension plan assets do not include common shares of The Kroger Co. | |||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||
Weighted average assumptions | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||
Discount rate — Benefit obligation | 4.99 | % | 4.29 | % | 4.55 | % | 4.68 | % | 4.11 | % | 4.4 | % | |||||||||||||||||
Discount rate — Net periodic benefit cost | 4.29 | % | 4.55 | % | 5.6 | % | 4.11 | % | 4.4 | % | 5.4 | % | |||||||||||||||||
Expected return on plan assets | 8.5 | % | 8.5 | % | 8.5 | % | |||||||||||||||||||||||
Rate of compensation increase — Net periodic benefit cost | 2.77 | % | 2.82 | % | 2.88 | % | |||||||||||||||||||||||
Rate of compensation increase — Benefit Obligation | 2.86 | % | 2.77 | % | 2.82 | % | |||||||||||||||||||||||
The Company’s discount rate assumptions were intended to reflect the rates at which the pension benefits could be effectively settled. They take into account the timing and amount of benefits that would be available under the plans. The Company’s policy for selecting the discount rates as of year-end 2013 and 2012 changed from the policy as of year-end 2011. In 2013 and 2012, the Company’s policy was to match the plan’s cash flows to that of a hypothetical bond portfolio whose cash flow from coupons and maturities match the plan’s projected benefit cash flows. The discount rates are the single rates that produce the same present value of cash flows. The selection of the 4.99% and 4.68% discount rates as of year-end 2013 for pension and other benefits, respectively, represents the hypothetical bond portfolio using bonds with an AA or better rating constructed with the assistance of an outside consultant. In 2011, the Company’s policy was to match the plan’s cash flows to that of a yield curve that provides the equivalent yields on zero-coupon corporate bonds for each maturity. Benefit cash flows due in a particular year can theoretically be “settled” by “investing” them in the zero-coupon bond that matures in the same year. The discount rates are the single rates that produce the same present value of cash flows. The selection of the 4.55% and 4.40% discount rates as of year-end 2011 for pension and other benefits, respectively, represents the equivalent single rates constructed under a broad-market AA yield curve constructed with the assistance of an outside consultant. A 100 basis point increase in the discount rate would decrease the projected pension benefit obligation as of February 1, 2014, by approximately $395. | |||||||||||||||||||||||||||||
To determine the expected rate of return on pension plan assets held by the Company for 2013, the Company considered current and forecasted plan asset allocations as well as historical and forecasted rates of return on various asset categories. Due to the Harris Teeter merger occurring close to year end, the expected rate of return on pension plan assets acquired in the Harris Teeter merger did not affect our net periodic benefit costs in 2013. For 2013, 2012 and 2011, the Company assumed a pension plan investment return rate of 8.5%. The Company pension plan’s average rate of return was 8.1% for the 10 calendar years ended December 31, 2013, net of all investment management fees and expenses. The value of all investments in the Company-sponsored defined benefit pension plans, excluding pension plan assets acquired in the Harris Teeter merger, during the calendar year ending December 31, 2013 increased 8.0%, net of investment management fees and expenses. For the past 20 years, the Company’s average annual rate of return has been 9.2%. Based on the above information and forward looking assumptions for investments made in a manner consistent with the Company’s target allocations, the Company believes an 8.5% rate of return assumption was reasonable for 2013, 2012 and 2011. | |||||||||||||||||||||||||||||
The Company calculates its expected return on plan assets by using the market-related value of plan assets. The market-related value of plan assets is determined by adjusting the actual fair value of plan assets for gains or losses on plan assets. Gains or losses represent the difference between actual and expected returns on plan investments for each plan year. Gains or losses on plan assets are recognized evenly over a five year period. Using a different method to calculate the market-related value of plan assets would provide a different expected return on plan assets. | |||||||||||||||||||||||||||||
The funded status increased in 2013, compared to 2012, due primarily to the increase in the discount rate, return on plan assets and contributions to the plan, offset slightly by the update in the mortality assumption. | |||||||||||||||||||||||||||||
The Company uses the RP-2000 projected 2021 mortality table in calculating the pension obligation. | |||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||
Qualified Plans | Non-Qualified Plan | Other Benefits | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||||||||||
Service cost | $ | 40 | $ | 44 | $ | 41 | $ | 3 | $ | 3 | $ | 3 | $ | 17 | $ | 16 | $ | 13 | |||||||||||
Interest cost | 144 | 146 | 158 | 9 | 9 | 10 | 15 | 16 | 17 | ||||||||||||||||||||
Expected return on plan assets | (224 | ) | (210 | ) | (207 | ) | — | — | — | — | — | — | |||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||
Prior service cost (credit) | — | — | — | — | — | 1 | (4 | ) | (4 | ) | (5 | ) | |||||||||||||||||
Actuarial (gain) loss | 93 | 88 | 57 | 9 | 9 | 7 | — | — | (2 | ) | |||||||||||||||||||
Net periodic benefit cost | $ | 53 | $ | 68 | $ | 49 | $ | 21 | $ | 21 | $ | 21 | $ | 28 | $ | 28 | $ | 23 | |||||||||||
The following table provides the projected benefit obligation (“PBO”), accumulated benefit obligation (“ABO”) and the fair value of plan assets for all Company-sponsored pension plans. | |||||||||||||||||||||||||||||
Qualified Plans | Non-Qualified Plan | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
PBO at end of fiscal year | $ | 3,509 | $ | 3,443 | $ | 263 | $ | 221 | |||||||||||||||||||||
ABO at end of fiscal year | $ | 3,360 | $ | 3,278 | $ | 256 | $ | 211 | |||||||||||||||||||||
Fair value of plan assets at end of year | $ | 3,135 | $ | 2,746 | $ | — | $ | — | |||||||||||||||||||||
The following table provides information about the Company’s estimated future benefit payments. | |||||||||||||||||||||||||||||
Pension | Other | ||||||||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||||||
2014 | $ | 201 | $ | 16 | |||||||||||||||||||||||||
2015 | $ | 204 | $ | 18 | |||||||||||||||||||||||||
2016 | $ | 203 | $ | 19 | |||||||||||||||||||||||||
2017 | $ | 211 | $ | 21 | |||||||||||||||||||||||||
2018 | $ | 221 | $ | 23 | |||||||||||||||||||||||||
2019 — 2023 | $ | 1,232 | $ | 135 | |||||||||||||||||||||||||
The following table provides information about the weighted average target and actual pension plan asset allocations. | |||||||||||||||||||||||||||||
Target allocations | Actual | ||||||||||||||||||||||||||||
Allocations | |||||||||||||||||||||||||||||
2013 | 2013 | 2012 | |||||||||||||||||||||||||||
Pension plan asset allocation | |||||||||||||||||||||||||||||
Global equity securities | 14.6 | % | 15 | % | 19.2 | % | |||||||||||||||||||||||
Emerging market equity securities | 5.6 | 6.2 | 8.9 | ||||||||||||||||||||||||||
Investment grade debt securities | 11.6 | 10.4 | 8.1 | ||||||||||||||||||||||||||
High yield debt securities | 12.7 | 12.5 | 17.3 | ||||||||||||||||||||||||||
Private equity | 9.1 | 7.7 | 6 | ||||||||||||||||||||||||||
Hedge funds | 32.9 | 34.2 | 27.2 | ||||||||||||||||||||||||||
Real estate | 3.3 | 3.3 | 3.3 | ||||||||||||||||||||||||||
Other | 10.2 | 10.7 | 10 | ||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||
Investment objectives, policies and strategies are set by the Pension Investment Committees (the “Committees”) appointed by the CEO. The primary objectives include holding and investing the assets and distributing benefits to participants and beneficiaries of the pension plans. Investment objectives have been established based on a comprehensive review of the capital markets and each underlying plan’s current and projected financial requirements. The time horizon of the investment objectives is long-term in nature and plan assets are managed on a going-concern basis. | |||||||||||||||||||||||||||||
Investment objectives and guidelines specifically applicable to each manager of assets are established and reviewed annually. Derivative instruments may be used for specified purposes, including rebalancing exposures to certain asset classes. Any use of derivative instruments for a purpose or in a manner not specifically authorized is prohibited, unless approved in advance by the Committees. | |||||||||||||||||||||||||||||
The current target allocations shown represent a combination of the 2013 targets established by the Company in 2012 and allocation targets on assets acquired as part of the merger with Harris Teeter. The Company will rebalance by liquidating assets whose allocation materially exceeds target, if possible, and investing in assets whose allocation is materially below target. If markets are illiquid, the Company may not be able to rebalance to target quickly. To maintain actual asset allocations consistent with target allocations, assets are reallocated or rebalanced periodically. In addition, cash flow from employer contributions and participant benefit payments can be used to fund underweight asset classes and divest overweight asset classes, as appropriate. The Company expects that cash flow will be sufficient to meet most rebalancing needs. | |||||||||||||||||||||||||||||
The Company is not required and does not expect to make any contributions to the Company-sponsored defined benefit pension plans in 2014. If the Company does make any contributions in 2014, the Company expects these contributions will decrease its required contributions in future years. Among other things, investment performance of plan assets, the interest rates required to be used to calculate the pension obligations, and future changes in legislation, will determine the amounts of any contributions. The Company expects 2014 expense for Company-sponsored defined benefit pension plans to be approximately $40. In addition, the Company expects 401(k) Retirement Savings Account Plan cash contributions and expense from automatic and matching contributions to participants to increase approximately $30 in 2014 compared to 2013 primarily due to the Harris Teeter merger. | |||||||||||||||||||||||||||||
Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. The Company used a 7.10% initial health care cost trend rate and a 4.50% ultimate health care cost trend rate to determine its expense. A one-percentage-point change in the assumed health care cost trend rates would have the following effects: | |||||||||||||||||||||||||||||
1% Point | 1% Point | ||||||||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||||||
Effect on total of service and interest cost components | $ | 5 | $ | (4 | ) | ||||||||||||||||||||||||
Effect on postretirement benefit obligation | $ | 31 | $ | (26 | ) | ||||||||||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the Plan’s assets at fair value as of February 1, 2014 and February 2, 2013: | |||||||||||||||||||||||||||||
Assets at Fair Value as of February 1, 2014 | |||||||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | ||||||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 26 | $ | — | $ | — | $ | 26 | |||||||||||||||||||||
Corporate Stocks | 326 | — | — | 326 | |||||||||||||||||||||||||
Corporate Bonds | — | 94 | — | 94 | |||||||||||||||||||||||||
U.S. Government Securities | — | 60 | — | 60 | |||||||||||||||||||||||||
Mutual Funds/Collective Trusts | 303 | 419 | 39 | 761 | |||||||||||||||||||||||||
Partnerships/Joint Ventures | — | 317 | — | 317 | |||||||||||||||||||||||||
Hedge Funds | — | — | 1,073 | 1,073 | |||||||||||||||||||||||||
Private Equity | — | — | 243 | 243 | |||||||||||||||||||||||||
Real Estate | — | — | 96 | 96 | |||||||||||||||||||||||||
Other | — | 139 | — | 139 | |||||||||||||||||||||||||
Total | $ | 655 | $ | 1,029 | $ | 1,451 | $ | 3,135 | |||||||||||||||||||||
Assets at Fair Value as of February 2, 2013 | |||||||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | ||||||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 17 | $ | — | $ | — | $ | 17 | |||||||||||||||||||||
Corporate Stocks | 375 | — | — | 375 | |||||||||||||||||||||||||
Corporate Bonds | — | 72 | — | 72 | |||||||||||||||||||||||||
U.S. Government Securities | — | 66 | — | 66 | |||||||||||||||||||||||||
Mutual Funds/Collective Trusts | 130 | 559 | — | 689 | |||||||||||||||||||||||||
Partnerships/Joint Ventures | — | 378 | — | 378 | |||||||||||||||||||||||||
Hedge Funds | — | — | 739 | 739 | |||||||||||||||||||||||||
Private Equity | — | — | 180 | 180 | |||||||||||||||||||||||||
Real Estate | — | — | 91 | 91 | |||||||||||||||||||||||||
Other | — | 139 | — | 139 | |||||||||||||||||||||||||
Total | $ | 522 | $ | 1,214 | $ | 1,010 | $ | 2,746 | |||||||||||||||||||||
For measurements using significant unobservable inputs (Level 3) during 2013 and 2012, a reconciliation of the beginning and ending balances is as follows: | |||||||||||||||||||||||||||||
Hedge Funds | Private Equity | Real Estate | Collective Trusts | ||||||||||||||||||||||||||
Ending balance, January 28, 2012 | $ | 579 | $ | 159 | $ | 81 | $ | — | |||||||||||||||||||||
Contributions into Fund | 175 | 49 | 23 | — | |||||||||||||||||||||||||
Realized gains | 11 | 15 | 3 | — | |||||||||||||||||||||||||
Unrealized gains | 55 | — | 2 | — | |||||||||||||||||||||||||
Distributions | (81 | ) | (49 | ) | (22 | ) | — | ||||||||||||||||||||||
Other | — | 6 | 4 | — | |||||||||||||||||||||||||
Ending balance, February 2, 2013 | 739 | 180 | 91 | — | |||||||||||||||||||||||||
Contributions into Fund | 297 | 74 | 22 | — | |||||||||||||||||||||||||
Realized gains | 7 | 12 | 11 | — | |||||||||||||||||||||||||
Unrealized gains | 71 | 17 | — | — | |||||||||||||||||||||||||
Distributions | (88 | ) | (47 | ) | (27 | ) | — | ||||||||||||||||||||||
Other | — | 7 | (1 | ) | — | ||||||||||||||||||||||||
Assumption of Harris Teeter plan assets | 47 | — | — | 39 | |||||||||||||||||||||||||
Ending balance, February 1, 2014 | $ | 1,073 | $ | 243 | $ | 96 | $ | 39 | |||||||||||||||||||||
See Note 8 for a discussion of the levels of the fair value hierarchy. The assets’ fair value measurement level above is based on the lowest level of any input that is significant to the fair value measurement. | |||||||||||||||||||||||||||||
The following is a description of the valuation methods used for the plan’s assets measured at fair value in the above tables: | |||||||||||||||||||||||||||||
· Cash and cash equivalents: The carrying value approximates fair value. | |||||||||||||||||||||||||||||
· Corporate Stocks: The fair values of these securities are based on observable market quotations for identical assets and are valued at the closing price reported on the active market on which the individual securities are traded. | |||||||||||||||||||||||||||||
· Corporate Bonds: The fair values of these securities are primarily based on observable market quotations for similar bonds, valued at the closing price reported on the active market on which the individual securities are traded. When such quoted prices are not available, the bonds are valued using a discounted cash flow approach using current yields on similar instruments of issuers with similar credit ratings, including adjustments for certain risks that may not be observable, such as credit and liquidity risks. | |||||||||||||||||||||||||||||
· U.S. Government Securities: Certain U.S. Government securities are valued at the closing price reported in the active market in which the security is traded. Other U.S. government securities are valued based on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for similar securities, the security is valued under a discounted cash flow approach that maximizes observable inputs, such as current yields of similar instruments, but includes adjustments for certain risks that may not be observable, such as credit and liquidity risks. | |||||||||||||||||||||||||||||
· Mutual Funds/Collective Trusts: The mutual funds/collective trust funds are public investment vehicles valued using a Net Asset Value (NAV) provided by the manager of each fund. The NAV is based on the underlying net assets owned by the fund, divided by the number of shares outstanding. The NAV’s unit price is quoted on a private market that is not active. However, the NAV is based on the fair value of the underlying securities within the fund, which are traded on an active market, and valued at the closing price reported on the active market on which those individual securities are traded. | |||||||||||||||||||||||||||||
· Partnerships/Joint Ventures: These funds consist primarily of U.S. government securities, Corporate Bonds, Corporate Stocks, and derivatives, which are valued in a manner consistent with these types of investments, noted above. | |||||||||||||||||||||||||||||
· Hedge Funds: Hedge funds are private investment vehicles valued using a Net Asset Value (NAV) provided by the manager of each fund. The NAV is based on the underlying net assets owned by the fund, divided by the number of shares outstanding. The NAV’s unit price is quoted on a private market that is not active. The NAV is based on the fair value of the underlying securities within the funds, which may be traded on an active market, and valued at the closing price reported on the active market on which those individual securities are traded. For investments not traded on an active market, or for which a quoted price is not publicly available, a variety of unobservable valuation methodologies, including discounted cash flow, market multiple and cost valuation approaches, are employed by the fund manager to value investments. Fair values of all investments are adjusted annually, if necessary, based on audits of the Hedge Fund financial statements; such adjustments are reflected in the fair value of the plan’s assets. | |||||||||||||||||||||||||||||
· Private Equity: Private Equity investments are valued based on the fair value of the underlying securities within the fund, which include investments both traded on an active market and not traded on an active market. For those investments that are traded on an active market, the values are based on the closing price reported on the active market on which those individual securities are traded. For investments not traded on an active market, or for which a quoted price is not publicly available, a variety of unobservable valuation methodologies, including discounted cash flow, market multiple and cost valuation approaches, are employed by the fund manager to value investments. Fair values of all investments are adjusted annually, if necessary, based on audits of the private equity fund financial statements; such adjustments are reflected in the fair value of the plan’s assets. | |||||||||||||||||||||||||||||
· Real Estate: Real estate investments include investments in real estate funds managed by a fund manager. These investments are valued using a variety of unobservable valuation methodologies, including discounted cash flow, market multiple and cost valuation approaches. | |||||||||||||||||||||||||||||
The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement. | |||||||||||||||||||||||||||||
The Company contributed and expensed $148, $140 and $130 to employee 401(k) retirement savings accounts in 2013, 2012 and 2011, respectively. The 401(k) retirement savings account plan provides to eligible employees both matching contributions and automatic contributions from the Company based on participant contributions, compensation as defined by the plan, and length of service. | |||||||||||||||||||||||||||||
The Company also administers other defined contribution plans for eligible employees. The cost of these plans was $5, $7 and $6 for 2013, 2012 and 2011, respectively. |
MULTIEMPLOYER_PENSION_PLANS
MULTI-EMPLOYER PENSION PLANS | 12 Months Ended | ||||||||||||||||||||
Feb. 01, 2014 | |||||||||||||||||||||
MULTI-EMPLOYER PENSION PLANS | ' | ||||||||||||||||||||
MULTI-EMPLOYER PENSION PLANS | ' | ||||||||||||||||||||
16. MULTI-EMPLOYER PENSION PLANS | |||||||||||||||||||||
The Company contributes to various multi-employer pension plans based on obligations arising from collective bargaining agreements. These plans provide retirement benefits to participants based on their service to contributing employers. The benefits are paid from assets held in trust for that purpose. Trustees are appointed in equal number by employers and unions. The trustees typically are responsible for determining the level of benefits to be provided to participants as well as for such matters as the investment of the assets and the administration of the plans. | |||||||||||||||||||||
In the fourth quarter of 2011, the Company entered into a memorandum of understanding (“MOU”) with 14 locals of the UFCW that participated in four multi-employer pension funds. The MOU established a process that amended each of the collective bargaining agreements between the Company and the UFCW locals under which the Company made contributions to these funds and consolidated the four multi-employer pension funds into one multi-employer pension fund. | |||||||||||||||||||||
Under the terms of the MOU, the locals of the UFCW agreed to a future pension benefit formula through 2021. The Company was designated as the named fiduciary of the new consolidated pension plan with sole investment authority over the assets. If investment results fail to meet expectations, the Company could be responsible for the shortfall. The Company committed to contribute sufficient funds to cover the actuarial cost of current accruals and to fund the pre-consolidation Unfunded Actuarial Accrued Liability (“UAAL”) that existed as of December 31, 2011, in a series of installments on or before March 31, 2018. At January 1, 2012, the UAAL was estimated to be $911 (pre-tax). In accordance with GAAP, the Company expensed $911 in 2011 related to the UAAL. The expense was based on a preliminary estimate of the contractual commitment. In 2012, the Company finalized the UAAL contractual commitment and recorded an adjustment that reduced the 2011 estimated commitment by $53 (pre-tax). The final UAAL contractual commitment, at January 1, 2012, was $858 (pre-tax). In the fourth quarter of 2011, the Company contributed $650 to the consolidated multi-employer pension plan of which $600 was allocated to the UAAL and $50 was allocated to service and interest costs and expensed in 2011. In the fourth quarter of 2012, the Company contributed $258 to the consolidated multi-employer pension plan to fully fund the Company’s UAAL contractual commitment. Future contributions will be dependent, among other things, on the investment performance of assets in the plan. The funding commitments under the MOU replace the prior commitments under the four existing funds to pay an agreed upon amount per hour worked by eligible employees. | |||||||||||||||||||||
The Company recognizes expense in connection with its multi-employer pension plans as contributions are funded, or in the case of the UFCW consolidated pension plan, when commitments are made. The Company made contributions to these funds of $228 in 2013, $492 in 2012 and $946 in 2011. The cash contributions for 2012 and 2011 include the Company’s $258 and $650 contributions described above, respectively, to the UFCW consolidated pension plan in the fourth quarter of each year. | |||||||||||||||||||||
The risks of participating in multi-employer pension plans are different from the risks of participating in single-employer pension plans in the following respects: | |||||||||||||||||||||
a. Assets contributed to the multi-employer plan by one employer 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 allocable to such withdrawing employer may be borne by the remaining participating employers. | |||||||||||||||||||||
c. If the Company stops participating in some of its multi-employer pension plans, the Company may be required to pay those plans an amount based on its allocable share of the underfunded status of the plan, referred to as a withdrawal liability. | |||||||||||||||||||||
The Company’s participation in these plans is outlined in the following tables. The EIN / Pension Plan Number column provides the Employer Identification Number (“EIN”) and the three-digit pension plan number. The most recent Pension Protection Act Zone Status available in 2013 and 2012 is for the plan’s year-end at December 31, 2012 and December 31, 2011, respectively. Among other factors, generally, plans in the red zone are less than 65 percent funded, plans in the yellow zone are less than 80 percent funded and plans in the green zone are at least 80 percent funded. The FIP/RP Status Pending / Implemented Column indicates plans for which a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented. Unless otherwise noted, the information for these tables was obtained from the Forms 5500 filed for each plan’s year-end at December 31, 2012 and December 31, 2011. The multi-employer contributions listed in the table below are the Company’s multi-employer contributions made in fiscal years 2013, 2012 and 2011. | |||||||||||||||||||||
The following table contains information about the Company’s multi-employer pension plans: | |||||||||||||||||||||
FIP/RP | |||||||||||||||||||||
Pension Protection | Status | ||||||||||||||||||||
EIN / Pension | Act Zone Status | Pending/ | Multi-Employer Contributions | Surcharge | |||||||||||||||||
Pension Fund | Plan Number | 2013 | 2012 | Implemented | 2013 | 2012 | 2011 | Imposed(7) | |||||||||||||
SO CA UFCW Unions & Food Employers Joint Pension Trust Fund(1) (2) | 95-1939092 - 001 | Red | Red | Implemented | $ | 45 | $ | 43 | $ | 40 | No | ||||||||||
BD of Trustees of UNTD Food and Commercial(1)(5) | 58-6101602 - 001 | N/A | Red | N/A | — | — | 59 | No | |||||||||||||
Desert States Employers & UFCW Unions Pension Plan(1) | 84-6277982 - 001 | Green | Green | No | 23 | 22 | 20 | No | |||||||||||||
UFCW Unions and Food Employers Pension Plan of Central Ohio(1) (5) | 31-6089168 - 001 | N/A | Green | N/A | — | — | 23 | No | |||||||||||||
Sound Retirement Trust (formerly Retail Clerks Pension Plan)(1) (3) | 91-6069306 – 001 | Red | Red | Implemented | 13 | 12 | 10 | No | |||||||||||||
Rocky Mountain UFCW Unions and Employers Pension Plan(1) | 84-6045986 - 001 | Green | Green | No | 17 | 17 | 16 | No | |||||||||||||
Indiana UFCW Unions and Retail Food Employers Pension Plan(1) (5) | 35-6244695 - 001 | N/A | Red | N/A | — | — | 5 | No | |||||||||||||
Oregon Retail Employees Pension Plan(1) | 93-6074377 - 001 | Red | Red | Implemented | 7 | 7 | 6 | No | |||||||||||||
Bakery and Confectionary Union & Industry International Pension Fund(1) | 52-6118572 - 001 | Red | Red | Implemented | 12 | 10 | 9 | No | |||||||||||||
Washington Meat Industry Pension Trust(1) (4) | 91-6134141 - 001 | Red | Red | Implemented | 3 | 3 | 2 | No | |||||||||||||
Retail Food Employers & UFCW Local 711 Pension(1) | 51-6031512 - 001 | Red | Red | Implemented | 8 | 8 | 7 | No | |||||||||||||
Denver Area Meat Cutters and Employers Pension Plan(1) | 84-6097461 - 001 | Green | Green | No | 8 | 8 | 8 | No | |||||||||||||
United Food & Commercial Workers Intl Union — Industry Pension Fund(1) (4) | 51-6055922 - 001 | Green | Green | No | 33 | 33 | 33 | No | |||||||||||||
Northwest Ohio UFCW Union and Employers Joint Pension Fund(1) (5) | 34-0947187 - 001 | N/A | Green | N/A | — | — | 2 | No | |||||||||||||
Western Conference of Teamsters Pension Plan | 91-6145047 - 001 | Green | Green | No | 31 | 30 | 31 | No | |||||||||||||
Central States, Southeast & Southwest Areas Pension Plan | 36-6044243 - 001 | Red | Red | Implemented | 15 | 12 | 14 | No | |||||||||||||
UFCW Consolidated Pension Plan(1) (6) | 58-6101602 – 001 | Green | N/A | No | — | 275 | 650 | No | |||||||||||||
Other | 13 | 12 | 11 | ||||||||||||||||||
Total Contributions | $ | 228 | $ | 492 | $ | 946 | |||||||||||||||
-1 | The Company’s multi-employer contributions to these respective funds represent more than 5% of the total contributions received by the pension funds. | ||||||||||||||||||||
-2 | The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at March 31, 2013 and March 31, 2012. | ||||||||||||||||||||
-3 | The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at September 30, 2012 and September 30, 2011. | ||||||||||||||||||||
-4 | The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at June 30, 2012 and June 30, 2011. | ||||||||||||||||||||
-5 | As of December 31, 2011, these four pension funds were consolidated into the UFCW consolidated pension plan. See the above information regarding this multi-employer pension fund consolidation. | ||||||||||||||||||||
-6 | The UFCW consolidated pension plan was formed on January 1, 2012, as the result of the consolidation of four existing multi-employer pension plans. See the above information regarding this multi-employer pension fund consolidation. | ||||||||||||||||||||
-7 | Under the Pension Protection Act, a surcharge may be imposed when employers make contributions under a collective bargaining agreement that is not in compliance with a rehabilitation plan. As of February 1, 2014, the collective bargaining agreements under which the Company was making contributions were in compliance with rehabilitation plans adopted by the applicable pension fund. | ||||||||||||||||||||
The following table describes (a) the expiration date of the Company’s collective bargaining agreements and (b) the expiration date of the Company’s most significant collective bargaining agreements for each of the material multi-employer funds in which the Company participates. | |||||||||||||||||||||
Expiration Date | Most Significant Collective | ||||||||||||||||||||
of Collective | Bargaining Agreements(1) | ||||||||||||||||||||
Bargaining | (not in millions) | ||||||||||||||||||||
Pension Fund | Agreement | Count | Expiration | ||||||||||||||||||
SO CA UFCW Unions & Food Employers Joint Pension Trust Fund | March 2014(2) to June 2014 | 2 | March 2014(2) to June 2014 | ||||||||||||||||||
UFCW Consolidated Pension Plan(3) | July 2013(2) to June 2017 | 8 | October 2013(2) to June 2017 | ||||||||||||||||||
Desert States Employers & UFCW Unions Pension Plan | June 2014 to October 2014 | 1 | October 2014 | ||||||||||||||||||
Sound Retirement Trust (formerly Retail Clerks Pension Plan) | May 2016 to December 2016 | 2 | May 2016 to August 2016 | ||||||||||||||||||
Rocky Mountain UFCW Unions and Employers Pension Plan | September 2015 to October 2015 | 1 | September 2015 | ||||||||||||||||||
Oregon Retail Employees Pension Plan | April 2013(2) to October 2016 | 3 | August 2015 to June 2016 | ||||||||||||||||||
Bakery and Confectionary Union & Industry International Pension Fund | May 2011(2) to September 2017 | 4 | May 2014 to August 2016 | ||||||||||||||||||
Washington Meat Industry Pension Trust | January 2015 to July 2016 | 1 | May 2016 | ||||||||||||||||||
Retail Food Employers & UFCW Local 711 Pension | April 2013(2) to March 2015 | 2 | March 2015 | ||||||||||||||||||
Denver Area Meat Cutters and Employers Pension Plan | September 2015 to October 2015 | 1 | September 2015 | ||||||||||||||||||
United Food & Commercial Workers Intl Union — Industry Pension Fund | July 2013(2) to June 2017 | 2 | April 2015 to March 2017 | ||||||||||||||||||
Western Conference of Teamsters Pension Plan | April 2014 to April 2018 | 5 | July 2014 to September 2015 | ||||||||||||||||||
Central States, Southeast & Southwest Areas Pension Plan | September 2014 | 2 | September 2014 | ||||||||||||||||||
-1 | This column represents the number of significant collective bargaining agreements and their expiration date for each of the Company’s pension funds listed above. For purposes of this table, the “significant collective bargaining agreements” are the largest based on covered employees that, when aggregated, cover the majority of the employees for which we make multi-employer contributions for the referenced pension fund. | ||||||||||||||||||||
-2 | Certain collective bargaining agreements for each of these pension funds are operating under an extension. | ||||||||||||||||||||
-3 | As of January 1, 2012, four multi-employer pension funds were consolidated into the UFCW consolidated pension plan. See the above information regarding this multi-employer pension fund consolidation. | ||||||||||||||||||||
Based on the most recent information available to it, the Company believes that the present value of actuarial accrued liabilities in most of these multi-employer plans substantially exceeds the value of the assets held in trust to pay benefits. Moreover, if the Company were to exit certain markets or otherwise cease making contributions to these funds, the Company could trigger a substantial withdrawal liability. Any adjustment for withdrawal liability will be recorded when it is probable that a liability exists and can be reasonably estimated. | |||||||||||||||||||||
The Company also contributes to various other multi-employer benefit plans that provide health and welfare benefits to active and retired participants. Total contributions made by the Company to these other multi-employer benefit plans were approximately $1,100 in 2013, $1,100 in 2012 and $1,000 in 2011. |
RECENTLY_ADOPTED_ACCOUNTING_ST
RECENTLY ADOPTED ACCOUNTING STANDARDS | 12 Months Ended |
Feb. 01, 2014 | |
RECENTLY ADOPTED ACCOUNTING STANDARDS | ' |
RECENTLY ADOPTED ACCOUNTING STANDARDS | ' |
17. RECENTLY ADOPTED ACCOUNTING STANDARDS | |
In February 2013, the Financial Accounting Standards Board (“FASB”) amended its standards on comprehensive income by requiring disclosure of information about amounts reclassified out of accumulated other comprehensive income (“AOCI”) by component. Specifically, the amendment requires disclosure of the effect of significant reclassifications out of AOCI on the respective line items in net income in which the item was reclassified if the amount being reclassified is required to be reclassified to net income in its entirety in the same reporting period. It requires cross reference to other disclosures that provide additional detail for amounts that are not required to be reclassified in their entirety in the same reporting period. This new disclosure became effective for the Company beginning February 3, 2013, and is being adopted prospectively in accordance with the standard. See Note 9 to the Company’s Consolidated Financial Statements for the Company’s new disclosures related to this amended standard. | |
In December 2011, the FASB amended its standards related to offsetting assets and liabilities. This amendment requires entities to disclose both gross and net information about certain instruments and transactions eligible for offset in the statement of financial position and certain instruments and transactions subject to an agreement similar to a master netting agreement. This information is intended to enable users of the financial statements to understand the effect of these arrangements on the Company’s financial position. The new rules became effective for the Company on February 3, 2013. In January 2013, the FASB further amended this standard to limit its scope to derivatives, repurchase and reverse repurchase agreements, securities borrowings and lending transactions. See Note 7 to the Company’s Consolidated Financial Statements for the Company’s new disclosures related to this amended standard. |
RECENTLY_ISSUED_ACCOUNTING_STA
RECENTLY ISSUED ACCOUNTING STANDARDS | 12 Months Ended |
Feb. 01, 2014 | |
RECENTLY ISSUED ACCOUNTING STANDARDS | ' |
RECENTLY ISSUED ACCOUNTING STANDARDS | ' |
18. RECENTLY ISSUED ACCOUNTING STANDARDS | |
In July 2013, the FASB amended Accounting Standards Codification (“ASC”) 740, “Income Taxes.” The amendment provides guidance on the financial statement presentation of an unrecognized tax benefit, as either a reduction of a deferred tax asset or as a liability, when a net operating loss carryforward, similar tax loss, or a tax credit carryforward exists. The amendment will be effective for interim and annual periods beginning after December 15, 2013 and may be applied on a retrospective basis. Early adoption is permitted. The Company does not expect the adoption of this amendment to have a significant effect on the Company’s consolidated financial position or results of operations. |
QUARTERLY_DATA_UNAUDITED
QUARTERLY DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Feb. 01, 2014 | |||||||||||||||||
QUARTERLY DATA (UNAUDITED) | ' | ||||||||||||||||
QUARTERLY DATA (UNAUDITED) | ' | ||||||||||||||||
19. QUARTERLY DATA (UNAUDITED) | |||||||||||||||||
The two tables that follow reflect the unaudited results of operations for 2013 and 2012. | |||||||||||||||||
Quarter | |||||||||||||||||
2013 | First | Second | Third | Fourth | Total Year | ||||||||||||
(16 Weeks) | (12 Weeks) | (12 Weeks) | (12 Weeks) | (52 Weeks) | |||||||||||||
Sales | $ | 29,997 | $ | 22,686 | $ | 22,470 | $ | 23,222 | $ | 98,375 | |||||||
Merchandise costs, including advertising, warehousing, and transportation, excluding items shown separately below | 23,817 | 18,059 | 17,866 | 18,397 | 78,138 | ||||||||||||
Operating, general, and administrative | 4,593 | 3,506 | 3,537 | 3,558 | 15,196 | ||||||||||||
Rent | 189 | 139 | 138 | 147 | 613 | ||||||||||||
Depreciation and amortization | 519 | 387 | 395 | 402 | 1,703 | ||||||||||||
Operating profit | 879 | 595 | 534 | 718 | 2,725 | ||||||||||||
Interest expense | 129 | 99 | 108 | 107 | 443 | ||||||||||||
Earnings before income tax expense | 750 | 496 | 426 | 611 | 2,282 | ||||||||||||
Income tax expense | 266 | 176 | 125 | 184 | 751 | ||||||||||||
Net earnings including noncontrolling interests | 484 | 320 | 301 | 427 | 1,531 | ||||||||||||
Net earnings attributable to noncontrolling interests | 3 | 3 | 2 | 5 | 12 | ||||||||||||
Net earnings attributable to The Kroger Co. | $ | 481 | $ | 317 | $ | 299 | $ | 422 | $ | 1,519 | |||||||
Net earnings attributable to The Kroger Co. per basic common share | $ | 0.93 | $ | 0.61 | $ | 0.58 | $ | 0.82 | $ | 2.93 | |||||||
Average number of shares used in basic calculation | 514 | 515 | 515 | 511 | 514 | ||||||||||||
Net earnings attributable to The Kroger Co. per diluted common share | $ | 0.92 | $ | 0.6 | $ | 0.57 | $ | 0.81 | $ | 2.9 | |||||||
Average number of shares used in diluted calculation | 520 | 521 | 521 | 517 | 520 | ||||||||||||
Dividends declared per common share | $ | 0.15 | $ | 0.15 | $ | 0.165 | $ | 0.165 | $ | 0.63 | |||||||
Annual amounts may not sum due to rounding. | |||||||||||||||||
Certain revenue transactions previously reported in sales and merchandise costs in the Consolidated Statements of Operations are now reported net within sales. Also, certain expense transactions previously reported in operating, general, and administrative in the Consolidated Statements of Operations are now reported within merchandise costs. Prior quarter amounts have been revised or reclassified to conform to the current year presentation. These amounts were not material to the prior periods. | |||||||||||||||||
Quarter | |||||||||||||||||
2012 | First | Second | Third | Fourth | Total Year | ||||||||||||
(16 Weeks) | (12 Weeks) | (12 Weeks) | (13 Weeks) | (53 Weeks) | |||||||||||||
Sales | $ | 29,026 | $ | 21,697 | $ | 21,776 | $ | 24,120 | $ | 96,619 | |||||||
Merchandise costs, including advertising, warehousing, and transportation, excluding items shown separately below | 23,056 | 17,249 | 17,352 | 19,069 | 76,726 | ||||||||||||
Operating, general, and administrative | 4,464 | 3,391 | 3,305 | 3,689 | 14,849 | ||||||||||||
Rent | 191 | 139 | 141 | 157 | 628 | ||||||||||||
Depreciation and amortization | 501 | 383 | 382 | 386 | 1,652 | ||||||||||||
Operating profit | 814 | 535 | 596 | 819 | 2,764 | ||||||||||||
Interest expense | 141 | 106 | 103 | 112 | 462 | ||||||||||||
Earnings before income tax expense | 673 | 429 | 493 | 707 | 2,302 | ||||||||||||
Income tax expense | 232 | 148 | 175 | 239 | 794 | ||||||||||||
Net earnings including noncontrolling interests | 441 | 281 | 318 | 468 | 1,508 | ||||||||||||
Net earnings attributable to noncontrolling interests | 2 | 2 | 1 | 6 | 11 | ||||||||||||
Net earnings attributable to The Kroger Co. | $ | 439 | $ | 279 | $ | 317 | $ | 462 | $ | 1,497 | |||||||
Net earnings attributable to The Kroger Co. per basic common share | $ | 0.78 | $ | 0.52 | $ | 0.61 | $ | 0.89 | $ | 2.78 | |||||||
Average number of shares used in basic calculation | 556 | 538 | 518 | 514 | 533 | ||||||||||||
Net earnings attributable to The Kroger Co. per diluted common share | $ | 0.78 | $ | 0.51 | $ | 0.6 | $ | 0.88 | $ | 2.77 | |||||||
Average number of shares used in diluted calculation | 559 | 541 | 522 | 518 | 537 | ||||||||||||
Dividends declared per common share | $ | 0.115 | $ | 0.115 | $ | 0.15 | $ | 0.15 | $ | 0.53 | |||||||
Annual amounts may not sum due to rounding. | |||||||||||||||||
Certain revenue transactions previously reported in sales and merchandise costs in the Consolidated Statements of Operations are now reported net within sales. Prior quarter amounts have been revised or reclassified to conform to the current year presentation. These amounts were not material to the prior periods. |
ACCOUNTING_POLICIES_Policies
ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||||||
Feb. 01, 2014 | |||||||||||||||||
ACCOUNTING POLICIES | ' | ||||||||||||||||
Description of Business, Basis of Presentation and Principles of Consolidation | ' | ||||||||||||||||
Description of Business, Basis of Presentation and Principles of Consolidation | |||||||||||||||||
The Kroger Co. (the “Company”) was founded in 1883 and incorporated in 1902. As of February 1, 2014, the Company was one of the largest retailers in the United States based on annual sales. The Company also manufactures and processes food for sale by its supermarkets. The accompanying financial statements include the consolidated accounts of the Company, its wholly-owned subsidiaries and the Variable Interest Entities (“VIEs”) in which the Company is the primary beneficiary. Significant intercompany transactions and balances have been eliminated. | |||||||||||||||||
Certain revenue transactions previously reported in sales and merchandise costs in the Consolidated Statements of Operations are now reported net within sales. Certain prior year amounts have been revised or reclassified to conform to the current year presentation. These amounts were not material to the prior periods. | |||||||||||||||||
Fiscal Year | ' | ||||||||||||||||
Fiscal Year | |||||||||||||||||
The Company’s fiscal year ends on the Saturday nearest January 31. The last three fiscal years consist of the 52-week periods ended February 1, 2014 and January 28, 2012 and the 53-week period ended February 2, 2013. | |||||||||||||||||
Pervasiveness of Estimates | ' | ||||||||||||||||
Pervasiveness of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of consolidated revenues and expenses during the reporting period also is required. Actual results could differ from those estimates. | |||||||||||||||||
Inventories | ' | ||||||||||||||||
Inventories | |||||||||||||||||
Inventories are stated at the lower of cost (principally on a last-in, first-out “LIFO” basis) or market. In total, approximately 95% and 96% of inventories for 2013 and 2012, respectively, were valued using the LIFO method. Cost for the balance of the inventories, including substantially all fuel inventories, was determined using the first-in, first-out (“FIFO”) method. Replacement cost was higher than the carrying amount by $1,150 at February 1, 2014 and $1,098 at February 2, 2013. The Company follows the Link-Chain, Dollar-Value LIFO method for purposes of calculating its LIFO charge or credit. | |||||||||||||||||
The item-cost method of accounting to determine inventory cost before the LIFO adjustment is followed for substantially all store inventories at the Company’s supermarket divisions. This method involves counting each item in inventory, assigning costs to each of these items based on the actual purchase costs (net of vendor allowances and cash discounts) of each item and recording the cost of items sold. The item-cost method of accounting allows for more accurate reporting of periodic inventory balances and enables management to more precisely manage inventory. In addition, substantially all of the Company’s inventory consists of finished goods and is recorded at actual purchase costs (net of vendor allowances and cash discounts). | |||||||||||||||||
The Company evaluates inventory shortages throughout the year based on actual physical counts in its facilities. Allowances for inventory shortages are recorded based on the results of these counts to provide for estimated shortages as of the financial statement date. | |||||||||||||||||
Property, Plant and Equipment | ' | ||||||||||||||||
Property, Plant and Equipment | |||||||||||||||||
Property, plant and equipment are recorded at cost or, in the case of assets acquired in a business combination, at fair value. Depreciation expense, which includes the amortization of assets recorded under capital leases, is computed principally using the straight-line method over the estimated useful lives of individual assets. Buildings and land improvements are depreciated based on lives varying from 10 to 40 years. All new purchases of store equipment are assigned lives varying from three to nine years. Leasehold improvements are amortized over the shorter of the lease term to which they relate, which varies from four to 25 years, or the useful life of the asset. Manufacturing plant and distribution center equipment is depreciated over lives varying from three to 15 years. Information technology assets are generally depreciated over five years. Depreciation expense was $1,703 in 2013, $1,652 in 2012 and $1,638 in 2011. | |||||||||||||||||
Interest costs on significant projects constructed for the Company’s own use are capitalized as part of the costs of the newly constructed facilities. Upon retirement or disposal of assets, the cost and related accumulated depreciation are removed from the balance sheet and any gain or loss is reflected in net earnings. | |||||||||||||||||
Deferred Rent | ' | ||||||||||||||||
Deferred Rent | |||||||||||||||||
The Company recognizes rent holidays, including the time period during which the Company has access to the property for construction of buildings or improvements and escalating rent provisions on a straight-line basis over the term of the lease. The deferred amount is included in Other Current Liabilities and Other Long-Term Liabilities on the Company’s Consolidated Balance Sheets. | |||||||||||||||||
Goodwill | ' | ||||||||||||||||
Goodwill | |||||||||||||||||
The Company reviews goodwill for impairment during the fourth quarter of each year, and also upon the occurrence of trigger events. The Company performs reviews of each of its operating divisions and variable interest entities (collectively, our reporting units) that have goodwill balances. Generally, fair value is determined using a multiple of earnings, or discounted projected future cash flows, and is compared to the carrying value of a division for purposes of identifying potential impairment. Projected future cash flows are based on management’s knowledge of the current operating environment and expectations for the future. If potential for impairment is identified, the fair value of a division is measured against the fair value of its underlying assets and liabilities, excluding goodwill, to estimate an implied fair value of the division’s goodwill. Goodwill impairment is recognized for any excess of the carrying value of the division’s goodwill over the implied fair value. Results of the goodwill impairment reviews performed during 2013, 2012 and 2011 are summarized in Note 3 to the Consolidated Financial Statements. | |||||||||||||||||
Impairment of Long-Lived Assets | ' | ||||||||||||||||
Impairment of Long-Lived Assets | |||||||||||||||||
The Company monitors the carrying value of long-lived assets for potential impairment each quarter based on whether certain trigger events have occurred. These events include current period losses combined with a history of losses or a projection of continuing losses or a significant decrease in the market value of an asset. When a trigger event occurs, an impairment calculation is performed, comparing projected undiscounted future cash flows, utilizing current cash flow information and expected growth rates related to specific stores, to the carrying value for those stores. If the Company identifies impairment for long-lived assets to be held and used, the Company compares the assets’ current carrying value to the assets’ fair value. Fair value is based on current market values or discounted future cash flows. The Company records impairment when the carrying value exceeds fair market value. With respect to owned property and equipment held for sale, the value of the property and equipment is adjusted to reflect recoverable values based on previous efforts to dispose of similar assets and current economic conditions. Impairment is recognized for the excess of the carrying value over the estimated fair market value, reduced by estimated direct costs of disposal. The Company recorded asset impairments in the normal course of business totaling $39, $18 and $37 in 2013, 2012 and 2011, respectively. Costs to reduce the carrying value of long-lived assets for each of the years presented have been included in the Consolidated Statements of Operations as “Operating, general and administrative” expense. | |||||||||||||||||
Store Closing Costs | ' | ||||||||||||||||
Store Closing Costs | |||||||||||||||||
The Company provides for closed store liabilities relating to the present value of the estimated remaining non-cancellable lease payments after the closing date, net of estimated subtenant income. The Company estimates the net lease liabilities using a discount rate to calculate the present value of the remaining net rent payments on closed stores. The closed store lease liabilities usually are paid over the lease terms associated with the closed stores, which generally have remaining terms ranging from one to 20 years. Adjustments to closed store liabilities primarily relate to changes in subtenant income and actual exit costs differing from original estimates. Adjustments are made for changes in estimates in the period in which the change becomes known. Store closing liabilities are reviewed quarterly to ensure that any accrued amount that is not a sufficient estimate of future costs, or that no longer is needed for its originally intended purpose, is adjusted to income in the proper period. | |||||||||||||||||
Owned stores held for disposal are reduced to their estimated net realizable value. Costs to reduce the carrying values of property, equipment and leasehold improvements are accounted for in accordance with the Company’s policy on impairment of long-lived assets. Inventory write-downs, if any, in connection with store closings, are classified in “Merchandise costs.” Costs to transfer inventory and equipment from closed stores are expensed as incurred. | |||||||||||||||||
The following table summarizes accrual activity for future lease obligations of stores that were closed in the normal course of business and assumed in the merger with Harris Teeter Supermarkets, Inc. (“Harris Teeter”): | |||||||||||||||||
Future Lease | |||||||||||||||||
Obligations | |||||||||||||||||
Balance at January 28, 2012 | $ | 55 | |||||||||||||||
Additions | 6 | ||||||||||||||||
Payments | (10 | ) | |||||||||||||||
Other | (7 | ) | |||||||||||||||
Balance at February 2, 2013 | 44 | ||||||||||||||||
Additions | 7 | ||||||||||||||||
Payments | (9 | ) | |||||||||||||||
Other | (2 | ) | |||||||||||||||
Assumed from Harris Teeter | 18 | ||||||||||||||||
Balance at February 1, 2014 | $ | 58 | |||||||||||||||
Interest Rate Risk Management | ' | ||||||||||||||||
Interest Rate Risk Management | |||||||||||||||||
The Company uses derivative instruments primarily to manage its exposure to changes in interest rates. The Company’s current program relative to interest rate protection and the methods by which the Company accounts for its derivative instruments are described in Note 7. | |||||||||||||||||
Commodity Price Protection | ' | ||||||||||||||||
Commodity Price Protection | |||||||||||||||||
The Company enters into purchase commitments for various resources, including raw materials utilized in its manufacturing facilities and energy to be used in its stores, manufacturing facilities and administrative offices. The Company enters into commitments expecting to take delivery of and to utilize those resources in the conduct of the normal course of business. The Company’s current program relative to commodity price protection and the methods by which the Company accounts for its purchase commitments are described in Note 7. | |||||||||||||||||
Benefit Plans and Multi-Employer Pension Plans | ' | ||||||||||||||||
Benefit Plans and Multi-Employer Pension Plans | |||||||||||||||||
The Company recognizes the funded status of its retirement plans on the Consolidated Balance Sheet. Actuarial gains or losses, prior service costs or credits and transition obligations that have not yet been recognized as part of net periodic benefit cost are required to be recorded as a component of Accumulated Other Comprehensive Income (“AOCI”). All plans are measured as of the Company’s fiscal year end. | |||||||||||||||||
The determination of the obligation and expense for Company-sponsored pension plans and other post-retirement benefits is dependent on the selection of assumptions used by actuaries and the Company in calculating those amounts. Those assumptions are described in Note 15 and include, among others, the discount rate, the expected long-term rate of return on plan assets and the rates of increase in compensation and health care costs. Actual results that differ from the assumptions are accumulated and amortized over future periods and, therefore, generally affect the recognized expense and recorded obligation in future periods. While the Company believes that the assumptions are appropriate, significant differences in actual experience or significant changes in assumptions may materially affect the pension and other post-retirement obligations and future expense. | |||||||||||||||||
The Company also participates in various multi-employer plans for substantially all union employees. Pension expense for these plans is recognized as contributions are funded. Refer to Note 16 for additional information regarding the Company’s participation in these various multi-employer plans and the United Food and Commercial Workers International Union (“UFCW”) consolidated fund. | |||||||||||||||||
The Company administers and makes contributions to the employee 401(k) retirement savings accounts. Contributions to the employee 401(k) retirement savings accounts are expensed when contributed. Refer to Note 15 for additional information regarding the Company’s benefit plans. | |||||||||||||||||
Stock Based Compensation | ' | ||||||||||||||||
Stock Based Compensation | |||||||||||||||||
The Company accounts for stock options under fair value recognition provisions. Under this method, the Company recognizes compensation expense for all share-based payments granted. The Company recognizes share-based compensation expense, net of an estimated forfeiture rate, over the requisite service period of the award. In addition, the Company records expense for restricted stock awards in an amount equal to the fair market value of the underlying stock on the grant date of the award, over the period the awards lapse. | |||||||||||||||||
Deferred Income Taxes | ' | ||||||||||||||||
Deferred Income Taxes | |||||||||||||||||
Deferred income taxes are recorded to reflect the tax consequences of differences between the tax basis of assets and liabilities and their financial reporting basis. Refer to Note 5 for the types of differences that give rise to significant portions of deferred income tax assets and liabilities. Deferred income taxes are classified as a net current or noncurrent asset or liability based on the classification of the related asset or liability for financial reporting purposes. A deferred tax asset or liability that is not related to an asset or liability for financial reporting is classified according to the expected reversal date. | |||||||||||||||||
Uncertain Tax Positions | ' | ||||||||||||||||
Uncertain Tax Positions | |||||||||||||||||
The Company reviews the tax positions taken or expected to be taken on tax returns to determine whether and to what extent a benefit can be recognized in its consolidated financial statements. Refer to Note 5 for the amount of unrecognized tax benefits and other related disclosures related to uncertain tax positions. | |||||||||||||||||
Various taxing authorities periodically audit the Company’s income tax returns. These audits include questions regarding the Company’s tax filing positions, including the timing and amount of deductions and the allocation of income to various tax jurisdictions. In evaluating the exposures connected with these various tax filing positions, including state and local taxes, the Company records allowances for probable exposures. A number of years may elapse before a particular matter, for which an allowance has been established, is audited and fully resolved. As of February 1, 2014, the Internal Revenue Service had concluded its field examination of the Company’s 2008 and 2009 federal tax returns. The Company has filed an administrative appeal with the Internal Revenue Service protesting certain adjustments proposed by the Internal Revenue Service as a result of their field work. | |||||||||||||||||
The assessment of the Company’s tax position relies on the judgment of management to estimate the exposures associated with the Company’s various filing positions. | |||||||||||||||||
Self-Insurance Costs | ' | ||||||||||||||||
Self-Insurance Costs | |||||||||||||||||
The Company is primarily self-insured for costs related to workers’ compensation and general liability claims. Liabilities are actuarially determined and are recognized based on claims filed and an estimate of claims incurred but not reported. The liabilities for workers’ compensation claims are accounted for on a present value basis. The Company has purchased stop-loss coverage to limit its exposure to any significant exposure on a per claim basis. The Company is insured for covered costs in excess of these per claim limits. | |||||||||||||||||
The following table summarizes the changes in the Company’s self-insurance liability through February 1, 2014. | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Beginning balance | $ | 537 | $ | 529 | $ | 514 | |||||||||||
Expense | 220 | 215 | 215 | ||||||||||||||
Claim payments | (215 | ) | (207 | ) | (200 | ) | |||||||||||
Assumed from Harris Teeter | 27 | ¾ | ¾ | ||||||||||||||
Ending balance | 569 | 537 | 529 | ||||||||||||||
Less: Current portion | (224 | ) | (205 | ) | (197 | ) | |||||||||||
Long-term portion | $ | 345 | $ | 332 | $ | 332 | |||||||||||
The current portion of the self-insured liability is included in “Other current liabilities,” and the long-term portion is included in “Other long-term liabilities” in the Consolidated Balance Sheets. | |||||||||||||||||
The Company maintains surety bonds related to self-insured workers’ compensation claims. These bonds are required by most states in which the Company is self-insured for workers’ compensation and are placed with third-party insurance providers to insure payment of our obligations in the event the Company is unable to meet its claim payment obligations up to its self-insured retention levels. These bonds do not represent liabilities of the Company, as the Company has recorded reserves for the claim costs. | |||||||||||||||||
The Company is similarly self-insured for property-related losses. The Company maintains stop loss coverage to limit its property loss exposures including coverage for earthquake, wind, flood and other catastrophic events. | |||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||
Revenue Recognition | |||||||||||||||||
Revenues from the sale of products are recognized at the point of sale. Discounts provided to customers by the Company at the time of sale, including those provided in connection with loyalty cards, are recognized as a reduction in sales as the products are sold. Discounts provided by vendors, usually in the form of paper coupons, are not recognized as a reduction in sales provided the coupons are redeemable at any retailer that accepts coupons. The Company records a receivable from the vendor for the difference in sales price and cash received. Pharmacy sales are recorded when provided to the customer. Sales taxes are recorded as other accrued liabilities and not as a component of sales. The Company does not recognize a sale when it sells its own gift cards and gift certificates. Rather, it records a deferred liability equal to the amount received. A sale is then recognized when the gift card or gift certificate is redeemed to purchase the Company’s products. Gift card and certificate breakage is recognized when redemption is deemed remote and there is no legal obligation to remit the value of the unredeemed gift card. The amount of breakage has not been material for 2013, 2012 and 2011. | |||||||||||||||||
Merchandise Costs | ' | ||||||||||||||||
Merchandise Costs | |||||||||||||||||
The “Merchandise costs” line item of the Consolidated Statements of Operations includes product costs, net of discounts and allowances; advertising costs (see separate discussion below); inbound freight charges; warehousing costs, including receiving and inspection costs; transportation costs; and manufacturing production and operational costs. Warehousing, transportation and manufacturing management salaries are also included in the “Merchandise costs” line item; however, purchasing management salaries and administration costs are included in the “Operating, general, and administrative” line item along with most of the Company’s other managerial and administrative costs. Rent expense and depreciation expense are shown separately in the Consolidated Statements of Operations. | |||||||||||||||||
Warehousing and transportation costs include distribution center direct wages, repairs and maintenance, utilities, inbound freight and, where applicable, third party warehouse management fees, as well as transportation direct wages and repairs and maintenance. These costs are recognized in the periods the related expenses are incurred. | |||||||||||||||||
The Company believes the classification of costs included in merchandise costs could vary widely throughout the industry. The Company’s approach is to include in the “Merchandise costs” line item the direct, net costs of acquiring products and making them available to customers in its stores. The Company believes this approach most accurately presents the actual costs of products sold. | |||||||||||||||||
The Company recognizes all vendor allowances as a reduction in merchandise costs when the related product is sold. When possible, vendor allowances are applied to the related product cost by item and, therefore, reduce the carrying value of inventory by item. When the items are sold, the vendor allowance is recognized. When it is not possible, due to systems constraints, to allocate vendor allowances to the product by item, vendor allowances are recognized as a reduction in merchandise costs based on inventory turns and, therefore, recognized as the product is sold. | |||||||||||||||||
Advertising Costs | ' | ||||||||||||||||
Advertising Costs | |||||||||||||||||
The Company’s advertising costs are recognized in the periods the related expenses are incurred and are included in the “Merchandise costs” line item of the Consolidated Statements of Operations. The Company’s pre-tax advertising costs totaled $587 in 2013, $553 in 2012 and $532 in 2011. The Company does not record vendor allowances for co-operative advertising as a reduction of advertising expense. | |||||||||||||||||
Cash, Temporary Cash Investments and Book Overdrafts | ' | ||||||||||||||||
Cash, Temporary Cash Investments and Book Overdrafts | |||||||||||||||||
Cash and temporary cash investments represent store cash and short-term investments with original maturities of less than three months. Book overdrafts are included in trade accounts payable and accrued salaries and wages. | |||||||||||||||||
Deposits In-Transit | ' | ||||||||||||||||
Deposits In-Transit | |||||||||||||||||
Deposits in-transit generally represent funds deposited to the Company’s bank accounts at the end of the year related to sales, a majority of which were paid for with debit cards, credit cards and checks, to which the Company does not have immediate access but that settle within a few days of the sales transaction. | |||||||||||||||||
Consolidated Statements of Cash Flows | ' | ||||||||||||||||
Consolidated Statements of Cash Flows | |||||||||||||||||
For purposes of the Consolidated Statements of Cash Flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be temporary cash investments. | |||||||||||||||||
Segments | ' | ||||||||||||||||
Segments | |||||||||||||||||
The Company operates retail food and drug stores, multi-department stores, jewelry stores, and convenience stores throughout the United States. The Company’s retail operations, which represent over 99% of the Company’s consolidated sales and EBITDA, are its only reportable segment. The Company’s retail operating divisions have been aggregated into one reportable segment due to the operating divisions having similar economic characteristics with similar long-term financial performance. In addition, the Company’s operating divisions offer to its customers similar products, have similar distribution methods, operate in similar regulatory environments, purchase the majority of the Company’s merchandise for retail sale from similar (and in many cases identical) vendors on a coordinated basis from a centralized location, serve similar types of customers, and are allocated capital from a centralized location. The Company’s operating divisions reflect the manner in which the business is managed and how the Company’s Chief Executive Officer and Chief Operating Officer, who act as the Company’s chief operating decision makers, assess performance internally. All of the Company’s operations are domestic. | |||||||||||||||||
The following table presents sales revenue by type of product for 2013, 2012 and 2011. | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Amount | % of total | Amount | % of total | Amount | % of total | ||||||||||||
Non Perishable (1) | $ | 49,229 | 50 | % | $ | 48,663 | 50.4 | % | $ | 46,494 | 51.5 | % | |||||
Perishable (2) | 20,625 | 21 | % | 19,761 | 20.5 | % | 18,588 | 20.6 | % | ||||||||
Fuel | 18,962 | 19.3 | % | 18,896 | 19.5 | % | 16,901 | 18.7 | % | ||||||||
Pharmacy | 8,073 | 8.2 | % | 8,018 | 8.3 | % | 7,322 | 8.1 | % | ||||||||
Other (3) | 1,486 | 1.5 | % | 1,281 | 1.3 | % | 964 | 1.1 | % | ||||||||
Total Sales and other revenue | $ | 98,375 | 100 | % | $ | 96,619 | 100 | % | $ | 90,269 | 100 | % | |||||
(1) Consists primarily of grocery, general merchandise, health and beauty care and natural foods. | |||||||||||||||||
(2) Consists primarily of produce, floral, meat, seafood, deli and bakery. | |||||||||||||||||
(3) Consists primarily of jewelry store sales, outside manufacturing sales and sales from entities not controlled by the Company. |
ACCOUNTING_POLICIES_Tables
ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||||||
Feb. 01, 2014 | |||||||||||||||||
ACCOUNTING POLICIES | ' | ||||||||||||||||
Summary of accrual activity for future lease obligations of stores that were closed | ' | ||||||||||||||||
Future Lease | |||||||||||||||||
Obligations | |||||||||||||||||
Balance at January 28, 2012 | $ | 55 | |||||||||||||||
Additions | 6 | ||||||||||||||||
Payments | (10 | ) | |||||||||||||||
Other | (7 | ) | |||||||||||||||
Balance at February 2, 2013 | 44 | ||||||||||||||||
Additions | 7 | ||||||||||||||||
Payments | (9 | ) | |||||||||||||||
Other | (2 | ) | |||||||||||||||
Assumed from Harris Teeter | 18 | ||||||||||||||||
Balance at February 1, 2014 | $ | 58 | |||||||||||||||
Summary of changes in self-insurance liability | ' | ||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Beginning balance | $ | 537 | $ | 529 | $ | 514 | |||||||||||
Expense | 220 | 215 | 215 | ||||||||||||||
Claim payments | (215 | ) | (207 | ) | (200 | ) | |||||||||||
Assumed from Harris Teeter | 27 | ¾ | ¾ | ||||||||||||||
Ending balance | 569 | 537 | 529 | ||||||||||||||
Less: Current portion | (224 | ) | (205 | ) | (197 | ) | |||||||||||
Long-term portion | $ | 345 | $ | 332 | $ | 332 | |||||||||||
Summary of sales revenue by type of product | ' | ||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Amount | % of total | Amount | % of total | Amount | % of total | ||||||||||||
Non Perishable (1) | $ | 49,229 | 50 | % | $ | 48,663 | 50.4 | % | $ | 46,494 | 51.5 | % | |||||
Perishable (2) | 20,625 | 21 | % | 19,761 | 20.5 | % | 18,588 | 20.6 | % | ||||||||
Fuel | 18,962 | 19.3 | % | 18,896 | 19.5 | % | 16,901 | 18.7 | % | ||||||||
Pharmacy | 8,073 | 8.2 | % | 8,018 | 8.3 | % | 7,322 | 8.1 | % | ||||||||
Other (3) | 1,486 | 1.5 | % | 1,281 | 1.3 | % | 964 | 1.1 | % | ||||||||
Total Sales and other revenue | $ | 98,375 | 100 | % | $ | 96,619 | 100 | % | $ | 90,269 | 100 | % | |||||
(1) Consists primarily of grocery, general merchandise, health and beauty care and natural foods. | |||||||||||||||||
(2) Consists primarily of produce, floral, meat, seafood, deli and bakery. | |||||||||||||||||
(3) Consists primarily of jewelry store sales, outside manufacturing sales and sales from entities not controlled by the Company. |
MERGER_Tables
MERGER (Tables) | 12 Months Ended | |||||||
Feb. 01, 2014 | ||||||||
MERGER | ' | |||||||
Summary of preliminary fair values of the assets acquired and liabilities assumed | ' | |||||||
January 28, | ||||||||
2014 | ||||||||
ASSETS | ||||||||
Cash and temporary cash investments | $ | 92 | ||||||
Store deposits in-transit | 28 | |||||||
Receivables | 41 | |||||||
FIFO inventory | 426 | |||||||
Prepaid and other current assets | 31 | |||||||
Total current assets | 618 | |||||||
Property, plant and equipment | 1,328 | |||||||
Intangibles | 558 | |||||||
Other assets | 238 | |||||||
Total Assets, excluding Goodwill | 2,742 | |||||||
LIABILITIES | ||||||||
Current portion of long-term debt including obligations under capital leases and financing obligations | (7 | ) | ||||||
Trade accounts payable | (202 | ) | ||||||
Accrued salaries and wages | (47 | ) | ||||||
Deferred income taxes | (20 | ) | ||||||
Other current liabilities | (159 | ) | ||||||
Total current liabilities | (435 | ) | ||||||
Fair-value of long-term debt including obligations under capital leases and financing obligations | (252 | ) | ||||||
Deferred income taxes | (285 | ) | ||||||
Pension and postretirement benefit obligations | (98 | ) | ||||||
Other long-term liabilities | (137 | ) | ||||||
Total Liabilities | (1,207 | ) | ||||||
Total Identifiable Net Assets | 1,535 | |||||||
Goodwill | 901 | |||||||
Total Purchase Price | $ | 2,436 | ||||||
Schedule of pro forma results of operations | ' | |||||||
Fiscal year ended | Fiscal year ended | |||||||
February 1, 2014 | February 2, 2013 | |||||||
Sales | $ | 103,202 | $ | 101,214 | ||||
Net earnings including noncontrolling interests | 1,664 | 1,584 | ||||||
Net earnings attributable to noncontrolling interests | 12 | 11 | ||||||
Net earnings attributable to The Kroger Co. | $ | 1,652 | $ | 1,573 |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||
Feb. 01, 2014 | ||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||
Summary of the changes in net goodwill | ' | |||||||||||||
2013 | 2012 | |||||||||||||
Balance beginning of year | ||||||||||||||
Goodwill | $ | 3,766 | $ | 3,670 | ||||||||||
Accumulated impairment losses | (2,532 | ) | (2,532 | ) | ||||||||||
1,234 | 1,138 | |||||||||||||
Activity during the year | ||||||||||||||
Acquisitions | 901 | 96 | ||||||||||||
Balance end of year | ||||||||||||||
Goodwill | 4,667 | 3,766 | ||||||||||||
Accumulated impairment losses | (2,532 | ) | (2,532 | ) | ||||||||||
$ | 2,135 | $ | 1,234 | |||||||||||
Summary of intangible assets | ' | |||||||||||||
2013 | 2012 | |||||||||||||
Gross carrying | Accumulated | Gross carrying | Accumulated | |||||||||||
amount | amortization(1) | amount | amortization(1) | |||||||||||
Definite-lived favorable leasehold interests | $ | 144 | $ | (61 | ) | $ | 69 | $ | (58 | ) | ||||
Definite-lived pharmacy prescription files | 95 | (28 | ) | 45 | (26 | ) | ||||||||
Definite-lived other | 78 | (10 | ) | 54 | (2 | ) | ||||||||
Indefinite-lived trade name | 430 | — | — | — | ||||||||||
Indefinite-lived liquor licenses | 54 | — | 48 | — | ||||||||||
Total | $ | 801 | $ | (99 | ) | $ | 216 | $ | (86 | ) | ||||
(1) Favorable leasehold interests are amortized to rent expense, pharmacy prescription files are amortized to merchandise costs and other intangibles are amortized to operating, general and administrative expense. | ||||||||||||||
Schedule of future amortization expense associated with the net carrying amount of definite-lived intangible assets | ' | |||||||||||||
2014 | $ | 28 | ||||||||||||
2015 | 25 | |||||||||||||
2016 | 22 | |||||||||||||
2017 | 21 | |||||||||||||
2018 | 20 | |||||||||||||
Thereafter | 102 | |||||||||||||
Total future estimated amortization associated with definite-lived intangible assets | $ | 218 |
PROPERTY_PLANT_AND_EQUIPMENT_N1
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 12 Months Ended | |||||||
Feb. 01, 2014 | ||||||||
PROPERTY, PLANT AND EQUIPMENT, NET | ' | |||||||
Schedule of property, plant and equipment, net | ' | |||||||
2013 | 2012 | |||||||
Land | $ | 2,639 | $ | 2,450 | ||||
Buildings and land improvements | 8,848 | 8,249 | ||||||
Equipment | 11,037 | 10,267 | ||||||
Leasehold improvements | 7,644 | 6,545 | ||||||
Construction-in-progress | 1,520 | 1,239 | ||||||
Leased property under capital leases and financing obligations | 691 | 593 | ||||||
Total property, plant and equipment | 32,379 | 29,343 | ||||||
Accumulated depreciation and amortization | (15,486 | ) | (14,495 | ) | ||||
Property, plant and equipment, net | $ | 16,893 | $ | 14,848 |
TAXES_BASED_ON_INCOME_Tables
TAXES BASED ON INCOME (Tables) | 12 Months Ended | ||||||||||
Feb. 01, 2014 | |||||||||||
TAXES BASED ON INCOME | ' | ||||||||||
Provision for income taxes | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
Federal | |||||||||||
Current | $ | 638 | $ | 563 | $ | 146 | |||||
Deferred | 81 | 154 | 78 | ||||||||
Subtotal federal | 719 | 717 | 224 | ||||||||
State and local | |||||||||||
Current | 42 | 46 | 42 | ||||||||
Deferred | (10 | ) | 31 | (19 | ) | ||||||
Subtotal state and local | 32 | 77 | 23 | ||||||||
Total | $ | 751 | $ | 794 | $ | 247 | |||||
Reconciliation of the statutory federal rate and the effective rate | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | |||||
State income taxes, net of federal tax benefit | 0.9 | % | 2.2 | % | 1.8 | % | |||||
Credits | (1.3 | )% | (1.4 | )% | (3.6 | )% | |||||
Favorable resolution of issues | ¾ | (0.5 | )% | (3.4 | )% | ||||||
Domestic manufacturing deduction | (1.1 | )% | (0.5 | )% | (1.3 | )% | |||||
Other changes, net | (0.6 | )% | (0.3 | )% | 0.8 | % | |||||
32.9 | % | 34.5 | % | 29.3 | % | ||||||
Significant temporary differences that comprise tax balances | ' | ||||||||||
2013 | 2012 | ||||||||||
Current deferred tax assets: | |||||||||||
Net operating loss and credit carryforwards | $ | 4 | $ | 4 | |||||||
Compensation related costs | 103 | 79 | |||||||||
Other | 15 | ¾ | |||||||||
Subtotal | 122 | 83 | |||||||||
Valuation allowance | (9 | ) | (4 | ) | |||||||
Total current deferred tax assets | 113 | 79 | |||||||||
Current deferred tax liabilities: | |||||||||||
Insurance related costs | (96 | ) | (116 | ) | |||||||
Inventory related costs | (265 | ) | (234 | ) | |||||||
Other | ¾ | (17 | ) | ||||||||
Total current deferred tax liabilities | (361 | ) | (367 | ) | |||||||
Current deferred taxes | $ | (248 | ) | $ | (288 | ) | |||||
Long-term deferred tax assets: | |||||||||||
Compensation related costs | $ | 464 | $ | 564 | |||||||
Lease accounting | 115 | 87 | |||||||||
Closed store reserves | 54 | 56 | |||||||||
Insurance related costs | 66 | 77 | |||||||||
Net operating loss and credit carryforwards | 103 | 82 | |||||||||
Other | ¾ | 2 | |||||||||
Subtotal | 802 | 868 | |||||||||
Valuation allowance | (38 | ) | (28 | ) | |||||||
Total long-term deferred tax assets | 764 | 840 | |||||||||
Long-term deferred tax liabilities: | |||||||||||
Depreciation | (2,128 | ) | (1,636 | ) | |||||||
Other | (17 | ) | ¾ | ||||||||
Total long-term deferred tax liabilities | (2,145 | ) | (1,636 | ) | |||||||
Long-term deferred taxes | $ | (1,381 | ) | $ | (796 | ) | |||||
Reconciliation of beginning and ending amounts of unrecognized tax benefits | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
Beginning balance | $ | 299 | $ | 310 | $ | 285 | |||||
Additions based on tax positions related to the current year | 23 | 45 | 24 | ||||||||
Reductions based on tax positions related to the current year | (10 | ) | (9 | ) | ¾ | ||||||
Additions for tax positions of prior years | 17 | 1 | 24 | ||||||||
Reductions for tax positions of prior years | (4 | ) | (27 | ) | (11 | ) | |||||
Settlements | ¾ | (21 | ) | (12 | ) | ||||||
Ending balance | $ | 325 | $ | 299 | $ | 310 |
DEBT_OBLIGATIONS_Tables
DEBT OBLIGATIONS (Tables) | 12 Months Ended | |||||||
Feb. 01, 2014 | ||||||||
DEBT OBLIGATIONS | ' | |||||||
Schedule of long-term debt | ' | |||||||
2013 | 2012 | |||||||
0.80% to 8.00% Senior notes due through 2043 | $ | 9,083 | $ | 6,587 | ||||
5.00% to 12.75% Mortgages due in varying amounts through 2034 | 64 | 60 | ||||||
0.27% to 0.45% Commercial paper due through February 2014 | 1,250 | 1,645 | ||||||
Other | 383 | 184 | ||||||
Total debt | 10,780 | 8,476 | ||||||
Less current portion | (1,616 | ) | (2,700 | ) | ||||
Total long-term debt | $ | 9,164 | $ | 5,776 | ||||
Aggregate annual maturities and scheduled payments of long-term debt | ' | |||||||
2014 | $ | 1,616 | ||||||
2015 | 524 | |||||||
2016 | 1,267 | |||||||
2017 | 708 | |||||||
2018 | 1,003 | |||||||
Thereafter | 5,662 | |||||||
Total debt | $ | 10,780 |
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||
Feb. 01, 2014 | |||||||||||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ' | ||||||||||||||||||||
Summary of outstanding interest rate swaps designated as fair value hedges | ' | ||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Pay | Pay | Pay | Pay | ||||||||||||||||||
Floating | Fixed | Floating | Fixed | ||||||||||||||||||
Notional amount | $ | 100 | $ | — | $ | 475 | $ | — | |||||||||||||
Number of contracts | 2 | — | 6 | — | |||||||||||||||||
Duration in years | 4.94 | — | 1.41 | — | |||||||||||||||||
Average variable rate | 5.83 | % | — | 3.29 | % | — | |||||||||||||||
Average fixed rate | 6.8 | % | — | 5.38 | % | — | |||||||||||||||
Maturity | December 2018 | Between April 2013 and December 2018 | |||||||||||||||||||
Schedule of gains or losses on fair value hedges and hedged items and the fair value of derivative instruments designated as fair value hedges | ' | ||||||||||||||||||||
Year-To-Date | |||||||||||||||||||||
February 1, 2014 | February 2, 2013 | ||||||||||||||||||||
Consolidated Statement of Operations Classification | Gain/(Loss) on | Gain/(Loss) on | Gain/(Loss) on | Gain/(Loss) on | |||||||||||||||||
Swaps | Borrowings | Swaps | Borrowings | ||||||||||||||||||
Interest Expense | $ | (3 | ) | $ | 4 | $ | (24 | ) | $ | 16 | |||||||||||
Asset Derivatives | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Derivatives Designated as Fair Value Hedging Instruments | February 1, | February 2, | Balance Sheet Location | ||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Interest Rate Hedges | $ | (2 | ) | $ | 1 | (Other Long-Term Liabilities)/Other Assets | |||||||||||||||
Schedule of effect of derivative instruments designated as cash flow hedges | ' | ||||||||||||||||||||
Year-To-Date | |||||||||||||||||||||
Derivatives in Cash Flow Hedging | Amount of Gain/(Loss) in | Amount of Gain/(Loss) | Location of Gain/(Loss) | ||||||||||||||||||
AOCI on Derivative | Reclassified from AOCI into | Reclassified into Income | |||||||||||||||||||
(Effective Portion) | Income (Effective Portion) | ||||||||||||||||||||
Relationships | 2013 | 2012 | 2013 | 2012 | (Effective Portion) | ||||||||||||||||
Forward-Starting Interest Rate Swaps, net of tax* | $ | (25 | ) | $ | (14 | ) | $ | (1 | ) | $ | (3 | ) | Interest expense | ||||||||
*The amounts of Gain/(Loss) in AOCI on derivatives include unamortized proceeds and payments from forward-starting interest rate swaps once classified as cash flow hedges that were terminated prior to end of 2013. | |||||||||||||||||||||
Schedule of effects of master netting agreements | ' | ||||||||||||||||||||
Net Amount | Gross Amounts Not Offset in the | ||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||
February 1, 2014 | Gross Amount | Gross Amounts Offset | Presented in the | Financial | Cash Collateral | Net Amount | |||||||||||||||
Recognized | in the Balance Sheet | Balance Sheet | Instruments | ||||||||||||||||||
Liabilities | |||||||||||||||||||||
Fair Value Interest Rate Swaps | $ | 2 | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||
Net Amount | Gross Amounts Not Offset in the | ||||||||||||||||||||
Balance Sheet | |||||||||||||||||||||
February 2, 2013 | Gross Amount | Gross Amounts Offset | Presented in the | Financial | Cash Collateral | Net Amount | |||||||||||||||
Recognized | in the Balance Sheet | Balance Sheet | Instruments | ||||||||||||||||||
Assets | |||||||||||||||||||||
Cash Flow Forward-Starting Interest Rate Swaps | $ | 16 | $ | (2 | ) | $ | 14 | $ | — | $ | — | $ | 14 | ||||||||
Fair Value Interest Rate Swaps | 1 | — | 1 | — | — | 1 | |||||||||||||||
Total | $ | 17 | $ | (2 | ) | $ | 15 | $ | — | $ | — | $ | 15 | ||||||||
Liabilities | |||||||||||||||||||||
Cash Flow Forward-Starting Interest Rate Swaps | $ | 11 | $ | (2 | ) | $ | 9 | $ | — | $ | — | $ | 9 | ||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | |||||||||||||
Feb. 01, 2014 | ||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||
Summary of fair value measurements | ' | |||||||||||||
February 1, 2014 Fair Value Measurements Using | ||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | |||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||
for Identical | (Level 2) | Inputs | ||||||||||||
Assets | (Level 3) | |||||||||||||
(Level 1) | ||||||||||||||
Available-for-Sale Securities | $ | 36 | $ | — | $ | — | $ | 36 | ||||||
Warrants | — | 16 | — | 16 | ||||||||||
Long-Lived Assets | — | — | 29 | 29 | ||||||||||
Interest Rate Hedges | — | (2 | ) | — | (2 | ) | ||||||||
Total | $ | 36 | $ | 14 | $ | 29 | $ | 79 | ||||||
February 2, 2013 Fair Value Measurements Using | ||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | |||||||||||
Active Markets | Observable Inputs | Unobservable | ||||||||||||
for Identical | (Level 2) | Inputs | ||||||||||||
Assets | (Level 3) | |||||||||||||
(Level 1) | ||||||||||||||
Available-for-Sale Securities | $ | 8 | $ | — | $ | 20 | $ | 28 | ||||||
Long-Lived Assets | — | — | 8 | 8 | ||||||||||
Interest Rate Hedges | — | 6 | — | 6 | ||||||||||
Total | $ | 8 | $ | 6 | $ | 28 | $ | 42 |
OTHER_COMPREHENSIVE_INCOME_LOS1
OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | |||||||||||||
Feb. 01, 2014 | ||||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | ' | |||||||||||||
Schedule of changes in AOCI by component | ' | |||||||||||||
Cash Flow | Available for sale | Pension and | Total(1) | |||||||||||
Hedging | Securities(1) | Postretirement | ||||||||||||
Activities(1) | Defined Benefit | |||||||||||||
Plans(1) | ||||||||||||||
Balance at February 2, 2013 | $ | (14 | ) | $ | 7 | $ | (746 | ) | $ | (753 | ) | |||
OCI before reclassifications(2) | (12 | ) | 5 | 197 | 190 | |||||||||
Amounts reclassified out of AOCI | 1 | — | 98 | 99 | ||||||||||
Net current-period OCI | (11 | ) | 5 | 295 | 289 | |||||||||
Balance at February 1, 2014 | $ | (25 | ) | $ | 12 | $ | (451 | ) | $ | (464 | ) | |||
(1) All amounts are net of tax. | ||||||||||||||
(2) Net of tax of $(8), $3 and $116 for cash flow hedging activities, available for sale securities and pension and postretirement defined benefit plans, respectively. | ||||||||||||||
Schedule of items reclassified out of AOCI and the related tax effects | ' | |||||||||||||
February 1, 2014 | ||||||||||||||
Gains on cash flow hedging activities | ||||||||||||||
Amortization of unrealized gains and losses on cash flow hedging activities(1) | $ | 2 | ||||||||||||
Tax expense | (1 | ) | ||||||||||||
Net of tax | 1 | |||||||||||||
Pension and postretirement defined benefit plan items | ||||||||||||||
Amortization of amounts included in net periodic pension expense(2) | 155 | |||||||||||||
Tax expense | (57 | ) | ||||||||||||
Net of tax | 98 | |||||||||||||
Total reclassifications, net of tax | $ | 99 | ||||||||||||
(1) Reclassified from AOCI into interest expense. | ||||||||||||||
(2) Reclassified from AOCI into merchandise costs and operating, general and administrative expense. These components are included in the computation of net periodic pension expense (see Note 15 to the Company’s Consolidated Financial Statements for additional details). |
LEASES_AND_LEASEFINANCED_TRANS1
LEASES AND LEASE-FINANCED TRANSACTIONS (Tables) | 12 Months Ended | ||||||||||
Feb. 01, 2014 | |||||||||||
LEASES AND LEASE-FINANCED TRANSACTIONS | ' | ||||||||||
Schedule of rent expense (under operating leases) | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
Minimum rentals | $ | 706 | $ | 727 | $ | 715 | |||||
Contingent payments | 13 | 13 | 13 | ||||||||
Tenant income | (106 | ) | (112 | ) | (109 | ) | |||||
Total rent expense | $ | 613 | $ | 628 | $ | 619 | |||||
Minimum annual rentals and payments under capital leases and lease-financed transactions | ' | ||||||||||
Capital | Operating | Lease- | |||||||||
Leases | Leases | Financed | |||||||||
Transactions | |||||||||||
2014 | $ | 62 | $ | 832 | $ | 6 | |||||
2015 | 57 | 770 | 7 | ||||||||
2016 | 53 | 708 | 7 | ||||||||
2017 | 52 | 634 | 8 | ||||||||
2018 | 43 | 563 | 8 | ||||||||
Thereafter | 349 | 3,101 | 83 | ||||||||
616 | $ | 6,608 | $ | 119 | |||||||
Less estimated executory costs included in capital leases | — | ||||||||||
Net minimum lease payments under capital leases | 616 | ||||||||||
Less amount representing interest | 204 | ||||||||||
Present value of net minimum lease payments under capital leases | $ | 412 |
EARNINGS_PER_COMMON_SHARE_Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Feb. 01, 2014 | ||||||||||||||||||||||||||
EARNINGS PER COMMON SHARE | ' | |||||||||||||||||||||||||
Schedule of earnings per common and diluted shares | ' | |||||||||||||||||||||||||
For the year ended | For the year ended | For the year ended | ||||||||||||||||||||||||
February 1, 2014 | February 2, 2013 | January 28, 2012 | ||||||||||||||||||||||||
(in millions, except per share amounts) | Earnings | Shares | Per | Earnings | Shares | Per | Earnings | Shares | Per | |||||||||||||||||
(Numerator) | (Denominator) | Share | (Numerator) | (Denominator) | Share | (Numerator) | (Denominator) | Share | ||||||||||||||||||
Amount | Amount | Amount | ||||||||||||||||||||||||
Net earnings attributable to The | $ | 1,507 | 514 | $ | 2.93 | $ | 1,485 | 533 | $ | 2.78 | $ | 598 | 590 | $ | 1.01 | |||||||||||
Kroger Co. per basic common share | ||||||||||||||||||||||||||
Dilutive effect of stock options | 6 | 4 | 3 | |||||||||||||||||||||||
Net earnings attributable to The | $ | 1,507 | 520 | $ | 2.9 | $ | 1,485 | 537 | $ | 2.77 | $ | 598 | 593 | $ | 1.01 | |||||||||||
Kroger Co. per diluted common share | ||||||||||||||||||||||||||
STOCK_OPTION_PLANS_Tables
STOCK OPTION PLANS (Tables) | 12 Months Ended | |||||||||||||
Feb. 01, 2014 | ||||||||||||||
STOCK OPTION PLANS | ' | |||||||||||||
Summary of changes in stock options outstanding | ' | |||||||||||||
Shares | Weighted- | |||||||||||||
subject | average | |||||||||||||
to option | exercise | |||||||||||||
(in millions) | price | |||||||||||||
Outstanding, year-end 2010 | 35.9 | $ | 21.45 | |||||||||||
Granted | 3.9 | $ | 24.69 | |||||||||||
Exercised | (5.9 | ) | $ | 20.28 | ||||||||||
Canceled or Expired | (2.9 | ) | $ | 24.43 | ||||||||||
Outstanding, year-end 2011 | 31 | $ | 21.8 | |||||||||||
Granted | 4.1 | $ | 22.04 | |||||||||||
Exercised | (6.7 | ) | $ | 18.35 | ||||||||||
Canceled or Expired | (1.9 | ) | $ | 23.28 | ||||||||||
Outstanding, year-end 2012 | 26.5 | $ | 22.61 | |||||||||||
Granted | 4.2 | $ | 37.68 | |||||||||||
Exercised | (8.8 | ) | $ | 22.22 | ||||||||||
Canceled or Expired | (0.2 | ) | $ | 25.47 | ||||||||||
Outstanding, year-end 2013 | 21.7 | $ | 25.66 | |||||||||||
Summary of options outstanding and exercisable | ' | |||||||||||||
A summary of options outstanding and exercisable at February 1, 2014 follows: | ||||||||||||||
Range of Exercise Prices | Number | Weighted- | Weighted- | Options | Weighted-average | |||||||||
outstanding | average | average | exercisable | exercise price | ||||||||||
remaining | exercise price | |||||||||||||
contractual life | ||||||||||||||
(in millions) | (in years) | (in millions) | ||||||||||||
$13.78 - $18.57 | 2.1 | 0.99 | $ | 16.62 | 2.1 | $ | 16.62 | |||||||
$18.58 - $20.97 | 3.6 | 4.8 | $ | 20.09 | 2.9 | $ | 20.06 | |||||||
$20.98 - $23.37 | 5.2 | 7.28 | $ | 22.11 | 2.6 | $ | 22.21 | |||||||
$23.38 - $28.17 | 3.1 | 7.22 | $ | 24.82 | 1.6 | $ | 24.89 | |||||||
$28.18 - $32.97 | 3.6 | 4.01 | $ | 28.51 | 3.5 | $ | 28.44 | |||||||
$32.98 - $40.99 | 4.1 | 9.44 | $ | 37.81 | — | $ | 37.76 | |||||||
$13.78 - $40.99 | 21.7 | 6.12 | $ | 25.66 | 12.7 | $ | 22.88 | |||||||
Summary of changes in restricted stock outstanding | ' | |||||||||||||
Restricted | Weighted-average | |||||||||||||
shares | grant-date | |||||||||||||
outstanding | fair value | |||||||||||||
(in millions) | ||||||||||||||
Outstanding, year-end 2010 | 4.4 | $ | 22.39 | |||||||||||
Granted | 2.5 | $ | 24.63 | |||||||||||
Lapsed | (2.5 | ) | $ | 21.96 | ||||||||||
Canceled or Expired | (0.2 | ) | $ | 23.8 | ||||||||||
Outstanding, year-end 2011 | 4.2 | $ | 23.92 | |||||||||||
Granted | 2.6 | $ | 22.23 | |||||||||||
Lapsed | (2.4 | ) | $ | 24.34 | ||||||||||
Canceled or Expired | (0.1 | ) | $ | 23.28 | ||||||||||
Outstanding, year-end 2012 | 4.3 | $ | 22.67 | |||||||||||
Granted | 3.2 | $ | 37.69 | |||||||||||
Lapsed | (2.5 | ) | $ | 22.97 | ||||||||||
Canceled or Expired | (0.1 | ) | $ | 27.31 | ||||||||||
Outstanding, year-end 2013 | 4.8 | $ | 32.31 | |||||||||||
Summary of weighted average assumptions used for grants awarded to option holders | ' | |||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Weighted average expected volatility | 26.34 | % | 26.49 | % | 26.31 | % | ||||||||
Weighted average risk-free interest rate | 1.87 | % | 0.97 | % | 2.16 | % | ||||||||
Expected dividend yield | 1.82 | % | 2.49 | % | 1.9 | % | ||||||||
Expected term (based on historical results) | 6.8 years | 6.9 years | 6.9 years |
COMPANYSPONSORED_BENEFIT_PLANS1
COMPANY-SPONSORED BENEFIT PLANS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Feb. 01, 2014 | |||||||||||||||||||||||||||||
COMPANY- SPONSORED BENEFIT PLANS | ' | ||||||||||||||||||||||||||||
Amounts recognized in AOCI (pre-tax) | ' | ||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | Total | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 857 | $ | 1,201 | $ | (111 | ) | $ | (15 | ) | $ | 746 | $ | 1,186 | |||||||||||||||
Prior service cost (credit) | 2 | 3 | (35 | ) | (8 | ) | (33 | ) | (5 | ) | |||||||||||||||||||
Total | $ | 859 | $ | 1,204 | $ | (146 | ) | $ | (23 | ) | $ | 713 | $ | 1,181 | |||||||||||||||
Amounts in AOCI expected to be recognized as components of net periodic pension or postretirement benefit costs over the next fiscal year (pre-tax) | ' | ||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | Total | |||||||||||||||||||||||||||
2014 | 2014 | 2014 | |||||||||||||||||||||||||||
Net actuarial loss (gain) | $ | 52 | $ | (6 | ) | $ | 46 | ||||||||||||||||||||||
Prior service cost (credit) | 1 | (7 | ) | (6 | ) | ||||||||||||||||||||||||
Total | $ | 53 | $ | (13 | ) | $ | 40 | ||||||||||||||||||||||
Other changes recognized in other comprehensive income (pre-tax) | ' | ||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | Total | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Incurred net actuarial loss (gain) | $ | (243 | ) | $ | (33 | ) | $ | 451 | $ | (97 | ) | $ | 6 | $ | 32 | $ | (340 | ) | $ | (27 | ) | $ | 483 | ||||||
Amortization of prior service credit (cost) | — | — | (1 | ) | 4 | 4 | 5 | 4 | 4 | 4 | |||||||||||||||||||
Amortization of net actuarial gain (loss) | (102 | ) | (97 | ) | (64 | ) | — | — | 2 | (102 | ) | (97 | ) | (62 | ) | ||||||||||||||
Other | — | — | — | (30 | ) | — | — | (30 | ) | — | — | ||||||||||||||||||
Total recognized in other comprehensive income | (345 | ) | (130 | ) | 386 | (123 | ) | 10 | 39 | (468 | ) | (120 | ) | 425 | |||||||||||||||
Total recognized in net periodic benefit cost and other comprehensive income | $ | (271 | ) | $ | (41 | ) | $ | 456 | $ | (95 | ) | $ | 38 | $ | 62 | $ | (366 | ) | $ | (3 | ) | $ | 518 | ||||||
Change in benefit obligation, change in plan assets, the funded status of the plans recorded in the Consolidated Balance Sheets and net amounts recognized at the end of fiscal years | ' | ||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||
Qualified Plans | Non-Qualified Plans | Other Benefits | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Change in benefit obligation: | |||||||||||||||||||||||||||||
Benefit obligation at beginning of fiscal year | $ | 3,443 | $ | 3,348 | $ | 221 | $ | 217 | $ | 402 | $ | 378 | |||||||||||||||||
Service cost | 40 | 44 | 3 | 3 | 17 | 16 | |||||||||||||||||||||||
Interest cost | 144 | 146 | 9 | 9 | 15 | 16 | |||||||||||||||||||||||
Plan participants’ contributions | — | — | — | — | 10 | 9 | |||||||||||||||||||||||
Actuarial (gain) loss | (308 | ) | 33 | (20 | ) | 3 | (97 | ) | 6 | ||||||||||||||||||||
Benefits paid | (136 | ) | (131 | ) | (10 | ) | (11 | ) | (25 | ) | (23 | ) | |||||||||||||||||
Other | — | 3 | — | — | (30 | ) | — | ||||||||||||||||||||||
Assumption of Harris Teeter benefit obligation | 326 | — | 60 | — | 2 | — | |||||||||||||||||||||||
Benefit obligation at end of fiscal year | $ | 3,509 | $ | 3,443 | $ | 263 | $ | 221 | $ | 294 | $ | 402 | |||||||||||||||||
Change in plan assets: | |||||||||||||||||||||||||||||
Fair value of plan assets at beginning of fiscal year | $ | 2,746 | $ | 2,523 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Actual return on plan assets | 139 | 278 | — | — | — | — | |||||||||||||||||||||||
Employer contributions | 100 | 71 | 10 | 11 | 15 | 14 | |||||||||||||||||||||||
Plan participants’ contributions | — | — | — | — | 10 | 9 | |||||||||||||||||||||||
Benefits paid | (136 | ) | (131 | ) | (10 | ) | (11 | ) | (25 | ) | (23 | ) | |||||||||||||||||
Other | — | 5 | — | — | — | — | |||||||||||||||||||||||
Assumption of Harris Teeter plan assets | 286 | — | — | — | — | — | |||||||||||||||||||||||
Fair value of plan assets at end of fiscal year | $ | 3,135 | $ | 2,746 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Funded status at end of fiscal year | $ | (374 | ) | $ | (697 | ) | $ | (263 | ) | $ | (221 | ) | $ | (294 | ) | $ | (402 | ) | |||||||||||
Net liability recognized at end of fiscal year | $ | (374 | ) | $ | (697 | ) | $ | (263 | ) | $ | (221 | ) | $ | (294 | ) | $ | (402 | ) | |||||||||||
Weighted-average assumptions used in determining the benefit obligation and net periodic benefit cost | ' | ||||||||||||||||||||||||||||
Pension Benefits | Other Benefits | ||||||||||||||||||||||||||||
Weighted average assumptions | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||
Discount rate — Benefit obligation | 4.99 | % | 4.29 | % | 4.55 | % | 4.68 | % | 4.11 | % | 4.4 | % | |||||||||||||||||
Discount rate — Net periodic benefit cost | 4.29 | % | 4.55 | % | 5.6 | % | 4.11 | % | 4.4 | % | 5.4 | % | |||||||||||||||||
Expected return on plan assets | 8.5 | % | 8.5 | % | 8.5 | % | |||||||||||||||||||||||
Rate of compensation increase — Net periodic benefit cost | 2.77 | % | 2.82 | % | 2.88 | % | |||||||||||||||||||||||
Rate of compensation increase — Benefit Obligation | 2.86 | % | 2.77 | % | 2.82 | % | |||||||||||||||||||||||
Schedule of components of net periodic benefit cost | ' | ||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||
Qualified Plans | Non-Qualified Plan | Other Benefits | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||||||||||
Service cost | $ | 40 | $ | 44 | $ | 41 | $ | 3 | $ | 3 | $ | 3 | $ | 17 | $ | 16 | $ | 13 | |||||||||||
Interest cost | 144 | 146 | 158 | 9 | 9 | 10 | 15 | 16 | 17 | ||||||||||||||||||||
Expected return on plan assets | (224 | ) | (210 | ) | (207 | ) | — | — | — | — | — | — | |||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||
Prior service cost (credit) | — | — | — | — | — | 1 | (4 | ) | (4 | ) | (5 | ) | |||||||||||||||||
Actuarial (gain) loss | 93 | 88 | 57 | 9 | 9 | 7 | — | — | (2 | ) | |||||||||||||||||||
Net periodic benefit cost | $ | 53 | $ | 68 | $ | 49 | $ | 21 | $ | 21 | $ | 21 | $ | 28 | $ | 28 | $ | 23 | |||||||||||
Projected benefit obligation ("PBO"), accumulated benefit obligation ("ABO"), and the fair value of plan assets for all Company-sponsored pension plans | ' | ||||||||||||||||||||||||||||
Qualified Plans | Non-Qualified Plan | ||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
PBO at end of fiscal year | $ | 3,509 | $ | 3,443 | $ | 263 | $ | 221 | |||||||||||||||||||||
ABO at end of fiscal year | $ | 3,360 | $ | 3,278 | $ | 256 | $ | 211 | |||||||||||||||||||||
Fair value of plan assets at end of year | $ | 3,135 | $ | 2,746 | $ | — | $ | — | |||||||||||||||||||||
Estimated future benefit payments for defined benefit pension plans and other benefits | ' | ||||||||||||||||||||||||||||
Pension | Other | ||||||||||||||||||||||||||||
Benefits | Benefits | ||||||||||||||||||||||||||||
2014 | $ | 201 | $ | 16 | |||||||||||||||||||||||||
2015 | $ | 204 | $ | 18 | |||||||||||||||||||||||||
2016 | $ | 203 | $ | 19 | |||||||||||||||||||||||||
2017 | $ | 211 | $ | 21 | |||||||||||||||||||||||||
2018 | $ | 221 | $ | 23 | |||||||||||||||||||||||||
2019 — 2023 | $ | 1,232 | $ | 135 | |||||||||||||||||||||||||
Weighted average target and actual pension plan asset allocations | ' | ||||||||||||||||||||||||||||
Target allocations | Actual | ||||||||||||||||||||||||||||
Allocations | |||||||||||||||||||||||||||||
2013 | 2013 | 2012 | |||||||||||||||||||||||||||
Pension plan asset allocation | |||||||||||||||||||||||||||||
Global equity securities | 14.6 | % | 15 | % | 19.2 | % | |||||||||||||||||||||||
Emerging market equity securities | 5.6 | 6.2 | 8.9 | ||||||||||||||||||||||||||
Investment grade debt securities | 11.6 | 10.4 | 8.1 | ||||||||||||||||||||||||||
High yield debt securities | 12.7 | 12.5 | 17.3 | ||||||||||||||||||||||||||
Private equity | 9.1 | 7.7 | 6 | ||||||||||||||||||||||||||
Hedge funds | 32.9 | 34.2 | 27.2 | ||||||||||||||||||||||||||
Real estate | 3.3 | 3.3 | 3.3 | ||||||||||||||||||||||||||
Other | 10.2 | 10.7 | 10 | ||||||||||||||||||||||||||
Total | 100 | % | 100 | % | 100 | % | |||||||||||||||||||||||
Effects of one-percentage-point change in assumed health care cost trend rates | ' | ||||||||||||||||||||||||||||
1% Point | 1% Point | ||||||||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||||||
Effect on total of service and interest cost components | $ | 5 | $ | (4 | ) | ||||||||||||||||||||||||
Effect on postretirement benefit obligation | $ | 31 | $ | (26 | ) | ||||||||||||||||||||||||
Fair values of defined benefit pension plan assets | ' | ||||||||||||||||||||||||||||
Assets at Fair Value as of February 1, 2014 | |||||||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | ||||||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 26 | $ | — | $ | — | $ | 26 | |||||||||||||||||||||
Corporate Stocks | 326 | — | — | 326 | |||||||||||||||||||||||||
Corporate Bonds | — | 94 | — | 94 | |||||||||||||||||||||||||
U.S. Government Securities | — | 60 | — | 60 | |||||||||||||||||||||||||
Mutual Funds/Collective Trusts | 303 | 419 | 39 | 761 | |||||||||||||||||||||||||
Partnerships/Joint Ventures | — | 317 | — | 317 | |||||||||||||||||||||||||
Hedge Funds | — | — | 1,073 | 1,073 | |||||||||||||||||||||||||
Private Equity | — | — | 243 | 243 | |||||||||||||||||||||||||
Real Estate | — | — | 96 | 96 | |||||||||||||||||||||||||
Other | — | 139 | — | 139 | |||||||||||||||||||||||||
Total | $ | 655 | $ | 1,029 | $ | 1,451 | $ | 3,135 | |||||||||||||||||||||
Assets at Fair Value as of February 2, 2013 | |||||||||||||||||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | ||||||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 17 | $ | — | $ | — | $ | 17 | |||||||||||||||||||||
Corporate Stocks | 375 | — | — | 375 | |||||||||||||||||||||||||
Corporate Bonds | — | 72 | — | 72 | |||||||||||||||||||||||||
U.S. Government Securities | — | 66 | — | 66 | |||||||||||||||||||||||||
Mutual Funds/Collective Trusts | 130 | 559 | — | 689 | |||||||||||||||||||||||||
Partnerships/Joint Ventures | — | 378 | — | 378 | |||||||||||||||||||||||||
Hedge Funds | — | — | 739 | 739 | |||||||||||||||||||||||||
Private Equity | — | — | 180 | 180 | |||||||||||||||||||||||||
Real Estate | — | — | 91 | 91 | |||||||||||||||||||||||||
Other | — | 139 | — | 139 | |||||||||||||||||||||||||
Total | $ | 522 | $ | 1,214 | $ | 1,010 | $ | 2,746 | |||||||||||||||||||||
Reconciliation of beginning and ending balances for measurements using significant unobservable inputs (Level 3) | ' | ||||||||||||||||||||||||||||
Hedge Funds | Private Equity | Real Estate | Collective Trusts | ||||||||||||||||||||||||||
Ending balance, January 28, 2012 | $ | 579 | $ | 159 | $ | 81 | $ | — | |||||||||||||||||||||
Contributions into Fund | 175 | 49 | 23 | — | |||||||||||||||||||||||||
Realized gains | 11 | 15 | 3 | — | |||||||||||||||||||||||||
Unrealized gains | 55 | — | 2 | — | |||||||||||||||||||||||||
Distributions | (81 | ) | (49 | ) | (22 | ) | — | ||||||||||||||||||||||
Other | — | 6 | 4 | — | |||||||||||||||||||||||||
Ending balance, February 2, 2013 | 739 | 180 | 91 | — | |||||||||||||||||||||||||
Contributions into Fund | 297 | 74 | 22 | — | |||||||||||||||||||||||||
Realized gains | 7 | 12 | 11 | — | |||||||||||||||||||||||||
Unrealized gains | 71 | 17 | — | — | |||||||||||||||||||||||||
Distributions | (88 | ) | (47 | ) | (27 | ) | — | ||||||||||||||||||||||
Other | — | 7 | (1 | ) | — | ||||||||||||||||||||||||
Assumption of Harris Teeter plan assets | 47 | — | — | 39 | |||||||||||||||||||||||||
Ending balance, February 1, 2014 | $ | 1,073 | $ | 243 | $ | 96 | $ | 39 |
MULTIEMPLOYER_PENSION_PLANS_Ta
MULTI-EMPLOYER PENSION PLANS (Tables) | 12 Months Ended | ||||||||||||||||||||
Feb. 01, 2014 | |||||||||||||||||||||
Collective Bargaining Agreements | ' | ||||||||||||||||||||
MULTI-EMPLOYER PENSION PLANS | ' | ||||||||||||||||||||
Schedule of multi-employer contributions | ' | ||||||||||||||||||||
Expiration Date | Most Significant Collective | ||||||||||||||||||||
of Collective | Bargaining Agreements(1) | ||||||||||||||||||||
Bargaining | (not in millions) | ||||||||||||||||||||
Pension Fund | Agreement | Count | Expiration | ||||||||||||||||||
SO CA UFCW Unions & Food Employers Joint Pension Trust Fund | March 2014(2) to June 2014 | 2 | March 2014(2) to June 2014 | ||||||||||||||||||
UFCW Consolidated Pension Plan(3) | July 2013(2) to June 2017 | 8 | October 2013(2) to June 2017 | ||||||||||||||||||
Desert States Employers & UFCW Unions Pension Plan | June 2014 to October 2014 | 1 | October 2014 | ||||||||||||||||||
Sound Retirement Trust (formerly Retail Clerks Pension Plan) | May 2016 to December 2016 | 2 | May 2016 to August 2016 | ||||||||||||||||||
Rocky Mountain UFCW Unions and Employers Pension Plan | September 2015 to October 2015 | 1 | September 2015 | ||||||||||||||||||
Oregon Retail Employees Pension Plan | April 2013(2) to October 2016 | 3 | August 2015 to June 2016 | ||||||||||||||||||
Bakery and Confectionary Union & Industry International Pension Fund | May 2011(2) to September 2017 | 4 | May 2014 to August 2016 | ||||||||||||||||||
Washington Meat Industry Pension Trust | January 2015 to July 2016 | 1 | May 2016 | ||||||||||||||||||
Retail Food Employers & UFCW Local 711 Pension | April 2013(2) to March 2015 | 2 | March 2015 | ||||||||||||||||||
Denver Area Meat Cutters and Employers Pension Plan | September 2015 to October 2015 | 1 | September 2015 | ||||||||||||||||||
United Food & Commercial Workers Intl Union — Industry Pension Fund | July 2013(2) to June 2017 | 2 | April 2015 to March 2017 | ||||||||||||||||||
Western Conference of Teamsters Pension Plan | April 2014 to April 2018 | 5 | July 2014 to September 2015 | ||||||||||||||||||
Central States, Southeast & Southwest Areas Pension Plan | September 2014 | 2 | September 2014 | ||||||||||||||||||
-1 | This column represents the number of significant collective bargaining agreements and their expiration date for each of the Company’s pension funds listed above. For purposes of this table, the “significant collective bargaining agreements” are the largest based on covered employees that, when aggregated, cover the majority of the employees for which we make multi-employer contributions for the referenced pension fund. | ||||||||||||||||||||
-2 | Certain collective bargaining agreements for each of these pension funds are operating under an extension. | ||||||||||||||||||||
-3 | As of January 1, 2012, four multi-employer pension funds were consolidated into the UFCW consolidated pension plan. See the above information regarding this multi-employer pension fund consolidation. | ||||||||||||||||||||
Multiemployer Pension Plans | ' | ||||||||||||||||||||
MULTI-EMPLOYER PENSION PLANS | ' | ||||||||||||||||||||
Schedule of multi-employer contributions | ' | ||||||||||||||||||||
FIP/RP | |||||||||||||||||||||
Pension Protection | Status | ||||||||||||||||||||
EIN / Pension | Act Zone Status | Pending/ | Multi-Employer Contributions | Surcharge | |||||||||||||||||
Pension Fund | Plan Number | 2013 | 2012 | Implemented | 2013 | 2012 | 2011 | Imposed(7) | |||||||||||||
SO CA UFCW Unions & Food Employers Joint Pension Trust Fund(1) (2) | 95-1939092 - 001 | Red | Red | Implemented | $ | 45 | $ | 43 | $ | 40 | No | ||||||||||
BD of Trustees of UNTD Food and Commercial(1)(5) | 58-6101602 - 001 | N/A | Red | N/A | — | — | 59 | No | |||||||||||||
Desert States Employers & UFCW Unions Pension Plan(1) | 84-6277982 - 001 | Green | Green | No | 23 | 22 | 20 | No | |||||||||||||
UFCW Unions and Food Employers Pension Plan of Central Ohio(1) (5) | 31-6089168 - 001 | N/A | Green | N/A | — | — | 23 | No | |||||||||||||
Sound Retirement Trust (formerly Retail Clerks Pension Plan)(1) (3) | 91-6069306 – 001 | Red | Red | Implemented | 13 | 12 | 10 | No | |||||||||||||
Rocky Mountain UFCW Unions and Employers Pension Plan(1) | 84-6045986 - 001 | Green | Green | No | 17 | 17 | 16 | No | |||||||||||||
Indiana UFCW Unions and Retail Food Employers Pension Plan(1) (5) | 35-6244695 - 001 | N/A | Red | N/A | — | — | 5 | No | |||||||||||||
Oregon Retail Employees Pension Plan(1) | 93-6074377 - 001 | Red | Red | Implemented | 7 | 7 | 6 | No | |||||||||||||
Bakery and Confectionary Union & Industry International Pension Fund(1) | 52-6118572 - 001 | Red | Red | Implemented | 12 | 10 | 9 | No | |||||||||||||
Washington Meat Industry Pension Trust(1) (4) | 91-6134141 - 001 | Red | Red | Implemented | 3 | 3 | 2 | No | |||||||||||||
Retail Food Employers & UFCW Local 711 Pension(1) | 51-6031512 - 001 | Red | Red | Implemented | 8 | 8 | 7 | No | |||||||||||||
Denver Area Meat Cutters and Employers Pension Plan(1) | 84-6097461 - 001 | Green | Green | No | 8 | 8 | 8 | No | |||||||||||||
United Food & Commercial Workers Intl Union — Industry Pension Fund(1) (4) | 51-6055922 - 001 | Green | Green | No | 33 | 33 | 33 | No | |||||||||||||
Northwest Ohio UFCW Union and Employers Joint Pension Fund(1) (5) | 34-0947187 - 001 | N/A | Green | N/A | — | — | 2 | No | |||||||||||||
Western Conference of Teamsters Pension Plan | 91-6145047 - 001 | Green | Green | No | 31 | 30 | 31 | No | |||||||||||||
Central States, Southeast & Southwest Areas Pension Plan | 36-6044243 - 001 | Red | Red | Implemented | 15 | 12 | 14 | No | |||||||||||||
UFCW Consolidated Pension Plan(1) (6) | 58-6101602 – 001 | Green | N/A | No | — | 275 | 650 | No | |||||||||||||
Other | 13 | 12 | 11 | ||||||||||||||||||
Total Contributions | $ | 228 | $ | 492 | $ | 946 | |||||||||||||||
-1 | The Company’s multi-employer contributions to these respective funds represent more than 5% of the total contributions received by the pension funds. | ||||||||||||||||||||
-2 | The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at March 31, 2013 and March 31, 2012. | ||||||||||||||||||||
-3 | The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at September 30, 2012 and September 30, 2011. | ||||||||||||||||||||
-4 | The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at June 30, 2012 and June 30, 2011. | ||||||||||||||||||||
-5 | As of December 31, 2011, these four pension funds were consolidated into the UFCW consolidated pension plan. See the above information regarding this multi-employer pension fund consolidation. | ||||||||||||||||||||
-6 | The UFCW consolidated pension plan was formed on January 1, 2012, as the result of the consolidation of four existing multi-employer pension plans. See the above information regarding this multi-employer pension fund consolidation. | ||||||||||||||||||||
-7 | Under the Pension Protection Act, a surcharge may be imposed when employers make contributions under a collective bargaining agreement that is not in compliance with a rehabilitation plan. As of February 1, 2014, the collective bargaining agreements under which the Company was making contributions were in compliance with rehabilitation plans adopted by the applicable pension fund. |
QUARTERLY_DATA_UNAUDITED_Table
QUARTERLY DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Feb. 01, 2014 | |||||||||||||||||
QUARTERLY DATA (UNAUDITED) | ' | ||||||||||||||||
Schedule of Quarterly Data (unaudited) | ' | ||||||||||||||||
Quarter | |||||||||||||||||
2013 | First | Second | Third | Fourth | Total Year | ||||||||||||
(16 Weeks) | (12 Weeks) | (12 Weeks) | (12 Weeks) | (52 Weeks) | |||||||||||||
Sales | $ | 29,997 | $ | 22,686 | $ | 22,470 | $ | 23,222 | $ | 98,375 | |||||||
Merchandise costs, including advertising, warehousing, and transportation, excluding items shown separately below | 23,817 | 18,059 | 17,866 | 18,397 | 78,138 | ||||||||||||
Operating, general, and administrative | 4,593 | 3,506 | 3,537 | 3,558 | 15,196 | ||||||||||||
Rent | 189 | 139 | 138 | 147 | 613 | ||||||||||||
Depreciation and amortization | 519 | 387 | 395 | 402 | 1,703 | ||||||||||||
Operating profit | 879 | 595 | 534 | 718 | 2,725 | ||||||||||||
Interest expense | 129 | 99 | 108 | 107 | 443 | ||||||||||||
Earnings before income tax expense | 750 | 496 | 426 | 611 | 2,282 | ||||||||||||
Income tax expense | 266 | 176 | 125 | 184 | 751 | ||||||||||||
Net earnings including noncontrolling interests | 484 | 320 | 301 | 427 | 1,531 | ||||||||||||
Net earnings attributable to noncontrolling interests | 3 | 3 | 2 | 5 | 12 | ||||||||||||
Net earnings attributable to The Kroger Co. | $ | 481 | $ | 317 | $ | 299 | $ | 422 | $ | 1,519 | |||||||
Net earnings attributable to The Kroger Co. per basic common share | $ | 0.93 | $ | 0.61 | $ | 0.58 | $ | 0.82 | $ | 2.93 | |||||||
Average number of shares used in basic calculation | 514 | 515 | 515 | 511 | 514 | ||||||||||||
Net earnings attributable to The Kroger Co. per diluted common share | $ | 0.92 | $ | 0.6 | $ | 0.57 | $ | 0.81 | $ | 2.9 | |||||||
Average number of shares used in diluted calculation | 520 | 521 | 521 | 517 | 520 | ||||||||||||
Dividends declared per common share | $ | 0.15 | $ | 0.15 | $ | 0.165 | $ | 0.165 | $ | 0.63 | |||||||
Quarter | |||||||||||||||||
2012 | First | Second | Third | Fourth | Total Year | ||||||||||||
(16 Weeks) | (12 Weeks) | (12 Weeks) | (13 Weeks) | (53 Weeks) | |||||||||||||
Sales | $ | 29,026 | $ | 21,697 | $ | 21,776 | $ | 24,120 | $ | 96,619 | |||||||
Merchandise costs, including advertising, warehousing, and transportation, excluding items shown separately below | 23,056 | 17,249 | 17,352 | 19,069 | 76,726 | ||||||||||||
Operating, general, and administrative | 4,464 | 3,391 | 3,305 | 3,689 | 14,849 | ||||||||||||
Rent | 191 | 139 | 141 | 157 | 628 | ||||||||||||
Depreciation and amortization | 501 | 383 | 382 | 386 | 1,652 | ||||||||||||
Operating profit | 814 | 535 | 596 | 819 | 2,764 | ||||||||||||
Interest expense | 141 | 106 | 103 | 112 | 462 | ||||||||||||
Earnings before income tax expense | 673 | 429 | 493 | 707 | 2,302 | ||||||||||||
Income tax expense | 232 | 148 | 175 | 239 | 794 | ||||||||||||
Net earnings including noncontrolling interests | 441 | 281 | 318 | 468 | 1,508 | ||||||||||||
Net earnings attributable to noncontrolling interests | 2 | 2 | 1 | 6 | 11 | ||||||||||||
Net earnings attributable to The Kroger Co. | $ | 439 | $ | 279 | $ | 317 | $ | 462 | $ | 1,497 | |||||||
Net earnings attributable to The Kroger Co. per basic common share | $ | 0.78 | $ | 0.52 | $ | 0.61 | $ | 0.89 | $ | 2.78 | |||||||
Average number of shares used in basic calculation | 556 | 538 | 518 | 514 | 533 | ||||||||||||
Net earnings attributable to The Kroger Co. per diluted common share | $ | 0.78 | $ | 0.51 | $ | 0.6 | $ | 0.88 | $ | 2.77 | |||||||
Average number of shares used in diluted calculation | 559 | 541 | 522 | 518 | 537 | ||||||||||||
Dividends declared per common share | $ | 0.115 | $ | 0.115 | $ | 0.15 | $ | 0.15 | $ | 0.53 |
ACCOUNTING_POLICIES_Details
ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Feb. 01, 2014 | Nov. 09, 2013 | Aug. 17, 2013 | Feb. 02, 2013 | Nov. 03, 2012 | Aug. 11, 2012 | 25-May-13 | 19-May-12 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Fiscal Year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Length of fiscal year | ' | ' | ' | ' | ' | ' | ' | ' | '364 days | '371 days | '364 days |
Inventories | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of inventory valued at LIFO method | 95.00% | ' | ' | 96.00% | ' | ' | ' | ' | 95.00% | 96.00% | ' |
Replacement cost over carrying value | $1,150 | ' | ' | $1,098 | ' | ' | ' | ' | $1,150 | $1,098 | ' |
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation | 402 | 395 | 387 | 386 | 382 | 383 | 519 | 501 | 1,703 | 1,652 | 1,638 |
Impairment of Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset impairment charge | ' | ' | ' | ' | ' | ' | ' | ' | 39 | 18 | 37 |
Increase (Decrease) in the accrual activity for future lease obligations of closed stores | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | ' | ' | ' | ' | 44 | 55 | 44 | 55 | ' |
Additions | ' | ' | ' | ' | ' | ' | ' | ' | 7 | 6 | ' |
Payments | ' | ' | ' | ' | ' | ' | ' | ' | -9 | -10 | ' |
Other | ' | ' | ' | ' | ' | ' | ' | ' | -2 | -7 | ' |
Assumed from Harris Teeter | ' | ' | ' | ' | ' | ' | ' | ' | 18 | ' | ' |
Balance at the end of the period | 58 | ' | ' | 44 | ' | ' | ' | ' | 58 | 44 | 55 |
Changes in self-insurance liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | ' | ' | ' | ' | 537 | 529 | 537 | 529 | 514 |
Expense | ' | ' | ' | ' | ' | ' | ' | ' | 220 | 215 | 215 |
Claim payments | ' | ' | ' | ' | ' | ' | ' | ' | -215 | -207 | -200 |
Assumed from Harris Teeter | ' | ' | ' | ' | ' | ' | ' | ' | 27 | ' | ' |
Balance at the end of the period | 569 | ' | ' | 537 | ' | ' | ' | ' | 569 | 537 | 529 |
Less: Current portion | -224 | ' | ' | -205 | ' | ' | ' | ' | -224 | -205 | -197 |
Long-term portion | 345 | ' | ' | 332 | ' | ' | ' | ' | 345 | 332 | 332 |
Advertising Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Advertising costs | ' | ' | ' | ' | ' | ' | ' | ' | $587 | $553 | $532 |
Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Store closing costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining lease terms of closed stores | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' |
Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Store closing costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining lease terms of closed stores | ' | ' | ' | ' | ' | ' | ' | ' | '20 years | ' | ' |
Buildings and land improvements | Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life of the assets | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' |
Buildings and land improvements | Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life of the assets | ' | ' | ' | ' | ' | ' | ' | ' | '40 years | ' | ' |
Store equipment | Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life of the assets | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' |
Store equipment | Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life of the assets | ' | ' | ' | ' | ' | ' | ' | ' | '9 years | ' | ' |
Leasehold improvements | Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life of the assets | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' |
Leasehold improvements | Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life of the assets | ' | ' | ' | ' | ' | ' | ' | ' | '25 years | ' | ' |
Manufacturing plant and distribution center equipment | Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life of the assets | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' |
Manufacturing plant and distribution center equipment | Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life of the assets | ' | ' | ' | ' | ' | ' | ' | ' | '15 years | ' | ' |
Information Technology | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful life of the assets | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' |
ACCOUNTING_POLICIES_Details_2
ACCOUNTING POLICIES (Details 2) (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Feb. 01, 2014 | Nov. 09, 2013 | Aug. 17, 2013 | Feb. 02, 2013 | Nov. 03, 2012 | Aug. 11, 2012 | 25-May-13 | 19-May-12 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
item | item | item | |||||||||
Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Sales and other revenue | $23,222 | $22,470 | $22,686 | $24,120 | $21,776 | $21,697 | $29,997 | $29,026 | $98,375 | $96,619 | $90,269 |
Percentage of total sales | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | 100.00% |
Company's retail operations (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 99.00% | ' | ' |
Number of segments | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | 1 |
Non Perishable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Sales and other revenue | ' | ' | ' | ' | ' | ' | ' | ' | 49,229 | 48,663 | 46,494 |
Percentage of total sales | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.40% | 51.50% |
Perishable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Sales and other revenue | ' | ' | ' | ' | ' | ' | ' | ' | 20,625 | 19,761 | 18,588 |
Percentage of total sales | ' | ' | ' | ' | ' | ' | ' | ' | 21.00% | 20.50% | 20.60% |
Fuel | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Sales and other revenue | ' | ' | ' | ' | ' | ' | ' | ' | 18,962 | 18,896 | 16,901 |
Percentage of total sales | ' | ' | ' | ' | ' | ' | ' | ' | 19.30% | 19.50% | 18.70% |
Pharmacy | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Sales and other revenue | ' | ' | ' | ' | ' | ' | ' | ' | 8,073 | 8,018 | 7,322 |
Percentage of total sales | ' | ' | ' | ' | ' | ' | ' | ' | 8.20% | 8.30% | 8.10% |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Sales and other revenue | ' | ' | ' | ' | ' | ' | ' | ' | $1,486 | $1,281 | $964 |
Percentage of total sales | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 1.30% | 1.10% |
MERGER_Details
MERGER (Details) (USD $) | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Jan. 28, 2014 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2014 | Jan. 28, 2014 | Jan. 28, 2014 |
In Millions, unless otherwise specified | Harris Teeter | Harris Teeter | Harris Teeter | Harris Teeter | Harris Teeter | Harris Teeter | |||
Pharmacy prescription files | Favorable leasehold interests | Trade name | |||||||
Merger | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding common stock acquired | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' |
Purchase price of outstanding common stock acquired | ' | ' | ' | $2,436 | ' | ' | ' | ' | ' |
ASSETS | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and temporary cash investments | ' | ' | ' | 92 | ' | ' | ' | ' | ' |
Store deposits in-transit | ' | ' | ' | 28 | ' | ' | ' | ' | ' |
Receivables | ' | ' | ' | 41 | ' | ' | ' | ' | ' |
FIFO inventory | ' | ' | ' | 426 | ' | ' | ' | ' | ' |
Prepaid and other current assets | ' | ' | ' | 31 | ' | ' | ' | ' | ' |
Total current assets | ' | ' | ' | 618 | ' | ' | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | 1,328 | ' | ' | ' | ' | ' |
Intangibles | ' | ' | ' | 558 | ' | ' | ' | ' | ' |
Other assets | ' | ' | ' | 238 | ' | ' | ' | ' | ' |
Total Assets, excluding Goodwill | ' | ' | ' | 2,742 | ' | ' | ' | ' | ' |
LIABILITIES | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current portion of long-term debt including obligations under capital leases and financing obligations | ' | ' | ' | -7 | ' | ' | ' | ' | ' |
Trade accounts payable | ' | ' | ' | -202 | ' | ' | ' | ' | ' |
Accrued salaries and wages | ' | ' | ' | -47 | ' | ' | ' | ' | ' |
Deferred income taxes | ' | ' | ' | -20 | ' | ' | ' | ' | ' |
Other current liabilities | ' | ' | ' | -159 | ' | ' | ' | ' | ' |
Total current liabilities | ' | ' | ' | -435 | ' | ' | ' | ' | ' |
Fair-value of long-term debt including obligations under capital leases and financing obligations | ' | ' | ' | -252 | ' | ' | ' | ' | ' |
Deferred income taxes | ' | ' | ' | -285 | ' | ' | ' | ' | ' |
Pension and postretirement benefit obligations | ' | ' | ' | -98 | ' | ' | ' | ' | ' |
Other long-term liabilities | ' | ' | ' | -137 | ' | ' | ' | ' | ' |
Total Liabilities | ' | ' | ' | -1,207 | ' | ' | ' | ' | ' |
Additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Identifiable Net Assets | ' | ' | ' | 1,535 | ' | ' | ' | ' | ' |
Goodwill | 2,135 | 1,234 | 1,138 | 901 | ' | ' | ' | ' | ' |
Total Purchase Price | ' | ' | ' | 2,436 | ' | ' | ' | ' | ' |
Indefinite intangibles | ' | ' | ' | ' | ' | ' | ' | ' | 430 |
Definite-lived intangibles | ' | ' | ' | ' | ' | ' | 53 | 75 | ' |
Weighted-average amortizable lives | ' | ' | ' | ' | ' | ' | '7 years | '24 years | ' |
Pro forma results of operations | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | 103,202 | 101,214 | ' | ' | ' |
Net earnings including noncontrolling interests | ' | ' | ' | ' | 1,664 | 1,584 | ' | ' | ' |
Net earnings attributable to noncontrolling interests | ' | ' | ' | ' | 12 | 11 | ' | ' | ' |
Net earnings attributable to The Kroger Co. | ' | ' | ' | ' | $1,652 | $1,573 | ' | ' | ' |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 02, 2013 | Feb. 01, 2014 | Feb. 02, 2013 | Feb. 01, 2014 | Feb. 02, 2013 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2014 |
item | Trade name | Liquor licenses | Liquor licenses | Favorable leasehold interests | Favorable leasehold interests | Pharmacy prescription files | Pharmacy prescription files | Other | Other | Harris Teeter | |||
Goodwill Balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, Gross, Beginning Balance | $3,766 | $3,670 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated impairment losses, beginning balance | -2,532 | -2,532 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, beginning balance | 1,234 | 1,138 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 901 |
Acquisitions | 901 | 96 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, Gross, Ending Balance | 4,667 | 3,766 | 3,670 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated impairment losses, ending balance | -2,532 | -2,532 | -2,532 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill, ending balance | 2,135 | 1,234 | 1,138 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 901 |
Number of suppliers in which interest acquired | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage reduction in fair value of reporting units used by the entity for determining potential impairment | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangibles | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 558 |
Intangible Assets, Gross (Excluding Goodwill) | 801 | 216 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Definite-lived, Gross carrying amount | ' | ' | ' | ' | ' | ' | 144 | 69 | 95 | 45 | 78 | 54 | ' |
Definite-lived, Accumulated amortization | -99 | -86 | ' | ' | ' | ' | -61 | -58 | -28 | -26 | -10 | -2 | ' |
Indefinite-lived, Gross carrying amount | ' | ' | ' | 430 | 54 | 48 | ' | ' | ' | ' | ' | ' | ' |
Amortization expense associated with intangible assets | 18 | 13 | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future amortization expense associated with the net carrying amount of definite-lived intangible assets for the years subsequent to 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 28 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 102 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total future estimated amortization associated with definite-lived intangible assets | $218 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PROPERTY_PLANT_AND_EQUIPMENT_N2
PROPERTY, PLANT AND EQUIPMENT, NET (Details) (USD $) | Feb. 01, 2014 | Feb. 02, 2013 |
In Millions, unless otherwise specified | ||
Property, plant and equipment | ' | ' |
Total property, plant and equipment | $32,379 | $29,343 |
Accumulated depreciation and amortization | -15,486 | -14,495 |
Property, plant and equipment, net | 16,893 | 14,848 |
Accumulated depreciation for leased property under capital leases | 339 | 321 |
Property, plant and equipment collateralized, original cost | 232 | 236 |
Land | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | 2,639 | 2,450 |
Buildings and land improvements | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | 8,848 | 8,249 |
Equipment | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | 11,037 | 10,267 |
Leasehold improvements | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | 7,644 | 6,545 |
Construction-in-progress | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | 1,520 | 1,239 |
Leased property under capital leases and financing obligations | ' | ' |
Property, plant and equipment | ' | ' |
Total property, plant and equipment | $691 | $593 |
TAXES_BASED_ON_INCOME_Details
TAXES BASED ON INCOME (Details) (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Feb. 01, 2014 | Nov. 09, 2013 | Aug. 17, 2013 | Feb. 02, 2013 | Nov. 03, 2012 | Aug. 11, 2012 | 25-May-13 | 19-May-12 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current | ' | ' | ' | ' | ' | ' | ' | ' | $638 | $563 | $146 |
Deferred | ' | ' | ' | ' | ' | ' | ' | ' | 81 | 154 | 78 |
Subtotal federal | ' | ' | ' | ' | ' | ' | ' | ' | 719 | 717 | 224 |
State and local | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current | ' | ' | ' | ' | ' | ' | ' | ' | 42 | 46 | 42 |
Deferred | ' | ' | ' | ' | ' | ' | ' | ' | -10 | 31 | -19 |
Subtotal state and local | ' | ' | ' | ' | ' | ' | ' | ' | 32 | 77 | 23 |
Total income tax provision | 184 | 125 | 176 | 239 | 175 | 148 | 266 | 232 | 751 | 794 | 247 |
Reconciliation of statutory federal rate and effective rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Statutory rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 0.90% | 2.20% | 1.80% |
Credits (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -1.30% | -1.40% | -3.60% |
Favorable resolution of issues (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | -0.50% | -3.40% |
Domestic manufacturing deduction (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -1.10% | -0.50% | -1.30% |
Other changes, net (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | -0.60% | -0.30% | 0.80% |
Total (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 32.90% | 34.50% | 29.30% |
Before-tax UFCW consolidated pension plan charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 953 |
After-tax UFCW consolidated pension plan charge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 591 |
Current deferred tax assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net operating loss and credit carryforwards | 4 | ' | ' | 4 | ' | ' | ' | ' | 4 | 4 | ' |
Compensation related costs | 103 | ' | ' | 79 | ' | ' | ' | ' | 103 | 79 | ' |
Other | 15 | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' |
Subtotal | 122 | ' | ' | 83 | ' | ' | ' | ' | 122 | 83 | ' |
Valuation allowance | -9 | ' | ' | -4 | ' | ' | ' | ' | -9 | -4 | ' |
Total current deferred tax assets | 113 | ' | ' | 79 | ' | ' | ' | ' | 113 | 79 | ' |
Current deferred tax liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Insurance related costs | -96 | ' | ' | -116 | ' | ' | ' | ' | -96 | -116 | ' |
Inventory related costs | -265 | ' | ' | -234 | ' | ' | ' | ' | -265 | -234 | ' |
Other | ' | ' | ' | -17 | ' | ' | ' | ' | ' | -17 | ' |
Total current deferred tax liabilities | -361 | ' | ' | -367 | ' | ' | ' | ' | -361 | -367 | ' |
Current deferred taxes | -248 | ' | ' | -288 | ' | ' | ' | ' | -248 | -288 | ' |
Long-term deferred tax assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation related costs | 464 | ' | ' | 564 | ' | ' | ' | ' | 464 | 564 | ' |
Lease accounting | 115 | ' | ' | 87 | ' | ' | ' | ' | 115 | 87 | ' |
Closed store reserves | 54 | ' | ' | 56 | ' | ' | ' | ' | 54 | 56 | ' |
Insurance related costs | 66 | ' | ' | 77 | ' | ' | ' | ' | 66 | 77 | ' |
Net operating loss and credit carryforwards | 103 | ' | ' | 82 | ' | ' | ' | ' | 103 | 82 | ' |
Other | ' | ' | ' | 2 | ' | ' | ' | ' | ' | 2 | ' |
Subtotal | 802 | ' | ' | 868 | ' | ' | ' | ' | 802 | 868 | ' |
Valuation allowance | -38 | ' | ' | -28 | ' | ' | ' | ' | -38 | -28 | ' |
Total long-term deferred tax assets | 764 | ' | ' | 840 | ' | ' | ' | ' | 764 | 840 | ' |
Long-term deferred tax liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation | -2,128 | ' | ' | -1,636 | ' | ' | ' | ' | -2,128 | -1,636 | ' |
Other | -17 | ' | ' | ' | ' | ' | ' | ' | -17 | ' | ' |
Total long-term deferred tax liabilities | -2,145 | ' | ' | -1,636 | ' | ' | ' | ' | -2,145 | -1,636 | ' |
Long-term deferred taxes | -1,381 | ' | ' | -796 | ' | ' | ' | ' | -1,381 | -796 | ' |
State and Local Jurisdiction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating loss carryforwards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net operating loss carryforwards for state income tax | 1,280 | ' | ' | ' | ' | ' | ' | ' | 1,280 | ' | ' |
State credit carryforwards | $34 | ' | ' | ' | ' | ' | ' | ' | $34 | ' | ' |
TAXES_BASED_ON_INCOME_Details_
TAXES BASED ON INCOME (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Reconciliation of the beginning and ending amount of unrecognized tax benefits | ' | ' | ' |
Balance at the beginning of the period | $299 | $310 | $285 |
Additions based on tax positions related to the current year | 23 | 45 | 24 |
Reductions based on tax positions related to the current year | -10 | -9 | ' |
Additions for tax positions of prior years | 17 | 1 | 24 |
Reductions for tax positions of prior years | -4 | -27 | -11 |
Settlements | ' | -21 | -12 |
Balance at the end of the period | 325 | 299 | 310 |
Impact on effective tax rate, if amount of unrecognized tax benefits is recognized | 98 | 70 | 81 |
Interest and penalties recognized (recoveries) | 10 | -8 | -24 |
Interest and penalties accrued | $41 | $33 | ' |
DEBT_OBLIGATIONS_Details
DEBT OBLIGATIONS (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 |
Debt | ' | ' |
Total debt | $10,780 | $8,476 |
Less current portion | -1,616 | -2,700 |
Total long-term debt | 9,164 | 5,776 |
New issue of senior notes | 3,500 | ' |
Commercial paper due through February 2014 | ' | ' |
Debt | ' | ' |
Total debt | 1,250 | 1,645 |
Interest rate, minimum range (as a percent) | 0.27% | 0.27% |
Interest rate, maximum range (as a percent) | 0.45% | 0.45% |
Weighted average interest rate (as a percent) | 0.27% | 0.45% |
Senior notes due through 2043 | ' | ' |
Debt | ' | ' |
Total debt | 9,083 | 6,587 |
Interest rate, minimum range (as a percent) | 0.80% | 0.80% |
Interest rate, maximum range (as a percent) | 8.00% | 8.00% |
Senior notes 3.40% due 2022 | ' | ' |
Debt | ' | ' |
New issue of senior notes | ' | 500 |
Interest rate of additional borrowings (as a percent) | ' | 3.40% |
Senior notes 5.00% due 2042 | ' | ' |
Debt | ' | ' |
New issue of senior notes | ' | 350 |
Interest rate of additional borrowings (as a percent) | ' | 5.00% |
Senior notes 6.75% | ' | ' |
Debt | ' | ' |
Repayment of senior notes | ' | 491 |
Interest rate of debt repaid (as a percent) | ' | 6.75% |
Senior notes 6.20% | ' | ' |
Debt | ' | ' |
Repayment of senior notes | ' | 346 |
Interest rate of debt repaid (as a percent) | ' | 6.20% |
Senior notes 5.50% | ' | ' |
Debt | ' | ' |
Repayment of senior notes | ' | 500 |
Interest rate of debt repaid (as a percent) | ' | 5.50% |
Senior notes 3.85% due 2023 | ' | ' |
Debt | ' | ' |
New issue of senior notes | 600 | ' |
Interest rate of additional borrowings (as a percent) | 3.85% | ' |
Senior notes 5.15% due 2043 | ' | ' |
Debt | ' | ' |
New issue of senior notes | 400 | ' |
Interest rate of additional borrowings (as a percent) | 5.15% | ' |
Senior notes 5.00% | ' | ' |
Debt | ' | ' |
Repayment of senior notes | 400 | ' |
Interest rate of debt repaid (as a percent) | 5.00% | ' |
Senior notes due in 2016 | 3-month London Inter-Bank Offering Rate | ' | ' |
Debt | ' | ' |
New issue of senior notes | 500 | ' |
Debt instrument variable basis rate | '3-month London Inter-Bank Offering Rate | ' |
Interest rate margin (as a percent) | 0.53% | ' |
Senior notes 1.20% due 2016 | ' | ' |
Debt | ' | ' |
New issue of senior notes | 300 | ' |
Interest rate of additional borrowings (as a percent) | 1.20% | ' |
Senior notes 2.30% due 2019 | ' | ' |
Debt | ' | ' |
New issue of senior notes | 500 | ' |
Interest rate of additional borrowings (as a percent) | 2.30% | ' |
Senior notes 3.30% due 2021 | ' | ' |
Debt | ' | ' |
New issue of senior notes | 700 | ' |
Interest rate of additional borrowings (as a percent) | 3.30% | ' |
Senior notes 4.00% due 2024 | ' | ' |
Debt | ' | ' |
New issue of senior notes | 500 | ' |
Interest rate of additional borrowings (as a percent) | 4.00% | ' |
Senior notes 7.50% | ' | ' |
Debt | ' | ' |
Repayment of senior notes | 600 | ' |
Interest rate of debt repaid (as a percent) | 7.50% | ' |
Mortgages due in varying amounts through 2034 | ' | ' |
Debt | ' | ' |
Total debt | 64 | 60 |
Interest rate, minimum range (as a percent) | 5.00% | 5.00% |
Interest rate, maximum range (as a percent) | 12.75% | 12.75% |
Other | ' | ' |
Debt | ' | ' |
Total debt | $383 | $184 |
DEBT_OBLIGATIONS_Details_2
DEBT OBLIGATIONS (Details 2) (USD $) | 12 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Feb. 01, 2014 | Feb. 02, 2013 | 19-May-12 | Feb. 01, 2014 | Jan. 25, 2012 | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 01, 2014 |
item | Credit Agreement and money market lines | Credit Agreement and money market lines | UFCW Consolidated Pension Plan | Unsecured revolving credit facility | Unsecured revolving credit facility | Unsecured revolving credit facility | Unsecured revolving credit facility | Unsecured revolving credit facility | Unsecured revolving credit facility | ||
LIBOR plus a market rate spread based on the company's leverage ratio | Bank of America prime rate | Federal Funds Rate | One-month LIBOR plus 1.0 percent plus a market rate spread based on the company's leverage ratio | ||||||||
Debt obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | $2,000 | ' | ' | ' | ' |
Additional borrowing capacity | ' | ' | ' | ' | ' | 500 | ' | ' | ' | ' | ' |
Debt instrument variable basis rate | ' | ' | ' | ' | ' | ' | ' | 'LIBOR plus a market rate spread based on the company's leverage ratio | 'Bank of America prime rate | 'Federal Funds Rate | 'One-month LIBOR plus 1.0 percent plus a market rate spread based on the company's leverage ratio |
Interest rate margin (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 1.00% |
Maximum leverage ratio (as a percent) | ' | ' | ' | ' | ' | 3.5 | ' | ' | ' | ' | ' |
Minimum fixed charge coverage ratio (as a percent) | ' | ' | ' | ' | ' | 1.7 | ' | ' | ' | ' | ' |
Maximum amount excluded from expense related to the commitment to fund the UFCW consolidated pension plan | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' |
Total debt | 10,780 | 8,476 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' |
Line of credit agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of uncommitted money market lines | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Money market lines aggregate amount | 75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit | 209 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reduction in funds available under letter of credit agreement | $12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum number of days notice required prior to the date of redemption | '5 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption event | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
DEBT_OBLIGATIONS_Details_3
DEBT OBLIGATIONS (Details 3) (USD $) | Feb. 01, 2014 | Feb. 02, 2013 |
In Millions, unless otherwise specified | ||
Aggregate annual maturities and scheduled payments of long-term debt, as of year-end 2013, and for the years subsequent to 2013 | ' | ' |
2014 | $1,616 | ' |
2015 | 524 | ' |
2016 | 1,267 | ' |
2017 | 708 | ' |
2018 | 1,003 | ' |
Thereafter | 5,662 | ' |
Total debt | $10,780 | $8,476 |
DERIVATIVE_FINANCIAL_INSTRUMEN2
DERIVATIVE FINANCIAL INSTRUMENTS (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||
In Millions, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Feb. 02, 2013 | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 02, 2013 | 25-May-13 | Feb. 01, 2014 | Feb. 02, 2013 | Feb. 02, 2013 | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 02, 2013 | Feb. 01, 2014 | Feb. 02, 2013 | Feb. 02, 2013 | Feb. 02, 2013 | |||
item | Fair value hedges | Fair value hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Designated | Designated | Designated | Designated | Designated | Designated | Designated | Designated | Designated | Designated | Designated | Designated | Designated | ||||||
Interest rate swaps | Interest rate swaps | Forward-starting interest rate swaps | Forward-starting interest rate swaps | Forward-starting interest rate swaps | Forward-starting interest rate swaps | Fair value hedges | Fair value hedges | Fair value hedges | Fair value hedges | Fair value hedges | Fair value hedges | Fair value hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | Cash flow hedges | |||||||
Terminated hedge | Terminated with maturity dates of April 2013 and January 2014 | Entered into and terminated during period | Interest rate swaps | Interest rate swaps | Interest rate swaps | Interest rate swaps | Interest rate swaps | Interest rate swaps | Interest rate swaps | Forward-starting interest rate swaps | Forward-starting interest rate swaps | Forward-starting interest rate swaps | Forward-starting interest rate swaps | Forward-starting interest rate swaps | Forward-starting interest rate swaps | ||||||||||
instrument | instrument | instrument | instrument | instrument | Interest expense | Interest expense | Other Assets | Other long-term liabilities | instrument | Interest expense | Interest expense | Other Assets | Other long-term liabilities | ||||||||||||
Interest Rate Risk Management | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Combined average annual limit of aggregate amount of debt subject to interest rate reset and floating rate debt, to reduce interest rate risk | $2,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of leveraged products | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Notional amount | ' | ' | ' | ' | ' | ' | ' | 1,700 | 850 | 100 | 475 | ' | ' | ' | ' | ' | ' | 850 | ' | ' | ' | ' | |||
Number of contracts | ' | ' | ' | ' | ' | ' | ' | 29 | 12 | 2 | 6 | ' | ' | ' | ' | ' | ' | 17 | ' | ' | ' | ' | |||
Duration | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years 11 months 8 days | '1 year 4 months 28 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Average variable rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.83% | 3.29% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Average fixed rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.80% | 5.38% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of matured contracts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Interest rate swap agreements, notional matured amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 375 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of new contracts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' | |||
Interest rate swap agreements, notional entered amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350 | ' | ' | ' | ' | |||
Gain/(loss) on interest rate swaps, fair value hedges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3 | -24 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Gain/(loss) on hedged borrowings, fair value hedges | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 16 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Fair value of asset derivatives | ' | 15 | ' | ' | 1 | 14 | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | 14 | ' | |||
Fair value of liability derivatives | ' | ' | ' | 2 | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | 9 | |||
Gain/(Loss) in AOCI on Derivatives (Effective Portion) | -12 | [1] | 13 | [1] | -26 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -9 | -6 |
New issue of senior notes | 3,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Unamortized (gain) loss on terminated cash flow forward-starting interest rate swaps, before tax | ' | ' | ' | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Unamortized gain (loss) on cash flow forward-starting interest rate swaps, net of tax | ' | ' | ' | ' | ' | ' | -9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -25 | -14 | ' | ' | ' | ' | |||
Gain/(Loss) Reclassified from AOCI into Income (Effective Portion) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($1) | ($3) | ' | ' | |||
[1] | Amount is net of tax of $(8) in 2013, $7 in 2012 and $(15) in 2011. |
DERIVATIVE_FINANCIAL_INSTRUMEN3
DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) (USD $) | Feb. 01, 2014 | Feb. 02, 2013 |
In Millions, unless otherwise specified | ||
Derivative Assets | ' | ' |
Gross Amount Recognized | ' | $17 |
Gross Amounts Offset in the Balance Sheet | ' | -2 |
Net Amount Presented in the Balance Sheet | ' | 15 |
Net Amount | ' | 15 |
Cash Collateral | 0 | 0 |
Derivative Liabilities | ' | ' |
Cash Collateral | 0 | 0 |
Cash flow hedges | Forward-Starting Interest Rate Swaps | ' | ' |
Derivative Assets | ' | ' |
Gross Amount Recognized | ' | 16 |
Gross Amounts Offset in the Balance Sheet | ' | -2 |
Net Amount Presented in the Balance Sheet | ' | 14 |
Net Amount | ' | 14 |
Derivative Liabilities | ' | ' |
Gross Amount Recognized | ' | 11 |
Gross Amounts Offset in the Balance Sheet | ' | -2 |
Net Amount Presented in the Balance Sheet | ' | 9 |
Net Amount | ' | 9 |
Fair value hedges | Interest Rate Swaps | ' | ' |
Derivative Assets | ' | ' |
Gross Amount Recognized | ' | 1 |
Net Amount Presented in the Balance Sheet | ' | 1 |
Net Amount | ' | 1 |
Derivative Liabilities | ' | ' |
Gross Amount Recognized | 2 | ' |
Net Amount Presented in the Balance Sheet | 2 | ' |
Net Amount | $2 | ' |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Fair value of financial instruments carried at fair value | ' | ' | ' |
Assets transferred from Level 3 to Level 1 | $20 | ' | ' |
Asset impairment charge | 39 | 18 | 37 |
Carrying Value | ' | ' | ' |
Fair value of financial instruments carried at fair value | ' | ' | ' |
Total debt | 10,780 | 8,476 | ' |
Other assets | 51 | 44 | ' |
Carrying Value | Before impairment | ' | ' | ' |
Fair value of financial instruments carried at fair value | ' | ' | ' |
Long-Lived Assets | 68 | 26 | ' |
Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Fair value of financial instruments carried at fair value | ' | ' | ' |
Total | 29 | 28 | ' |
Fair value | ' | ' | ' |
Fair value of financial instruments carried at fair value | ' | ' | ' |
Long-Lived Assets | 29 | 8 | ' |
Total | 79 | 42 | ' |
Total debt | 11,547 | 9,339 | ' |
Other assets | 51 | 44 | ' |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' |
Fair value of financial instruments carried at fair value | ' | ' | ' |
Available-for-Sale Securities | 36 | 8 | ' |
Total | 36 | 8 | ' |
Unrealized gains on Available-for-Sale Securities | 8 | ' | ' |
Recurring | Significant Other Observable Inputs (Level 2) | ' | ' | ' |
Fair value of financial instruments carried at fair value | ' | ' | ' |
Warrants | 16 | ' | ' |
Total | 14 | 6 | ' |
Recurring | Significant Other Observable Inputs (Level 2) | Interest Rate Hedges | ' | ' | ' |
Fair value of financial instruments carried at fair value | ' | ' | ' |
Interest Rate Hedges | -2 | 6 | ' |
Recurring | Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Fair value of financial instruments carried at fair value | ' | ' | ' |
Available-for-Sale Securities | ' | 20 | ' |
Recurring | Fair value | ' | ' | ' |
Fair value of financial instruments carried at fair value | ' | ' | ' |
Available-for-Sale Securities | 36 | 28 | ' |
Warrants | 16 | ' | ' |
Recurring | Fair value | Interest Rate Hedges | ' | ' | ' |
Fair value of financial instruments carried at fair value | ' | ' | ' |
Interest Rate Hedges | -2 | 6 | ' |
Nonrecurring | Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Fair value of financial instruments carried at fair value | ' | ' | ' |
Long-Lived Assets | $29 | $8 | ' |
OTHER_COMPREHENSIVE_INCOME_LOS2
OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Other comprehensive income (loss) | ' | ' | ' |
Balance at the beginning of the period | ($753) | ' | ' |
OCI before reclassifications | 190 | ' | ' |
Amounts reclassified out of AOCI | 99 | ' | ' |
Total other comprehensive income (loss) | 289 | 91 | -294 |
Balance at the end of the period | -464 | -753 | ' |
OCI before reclassifications, tax | -8 | 7 | -15 |
Cash Flow Hedging Activities | ' | ' | ' |
Other comprehensive income (loss) | ' | ' | ' |
Balance at the beginning of the period | -14 | ' | ' |
OCI before reclassifications | -12 | ' | ' |
Amounts reclassified out of AOCI | 1 | ' | ' |
Total other comprehensive income (loss) | -11 | ' | ' |
Balance at the end of the period | -25 | ' | ' |
OCI before reclassifications, tax | -8 | ' | ' |
Available for sale Securities | ' | ' | ' |
Other comprehensive income (loss) | ' | ' | ' |
Balance at the beginning of the period | 7 | ' | ' |
OCI before reclassifications | 5 | ' | ' |
Total other comprehensive income (loss) | 5 | ' | ' |
Balance at the end of the period | 12 | ' | ' |
OCI before reclassifications, tax | 3 | ' | ' |
Pension and Postretirement Defined Benefit Plans | ' | ' | ' |
Other comprehensive income (loss) | ' | ' | ' |
Balance at the beginning of the period | -746 | ' | ' |
OCI before reclassifications | 197 | ' | ' |
Amounts reclassified out of AOCI | 98 | ' | ' |
Total other comprehensive income (loss) | 295 | ' | ' |
Balance at the end of the period | -451 | ' | ' |
OCI before reclassifications, tax | $116 | ' | ' |
OTHER_COMPREHENSIVE_INCOME_LOS3
OTHER COMPREHENSIVE INCOME (LOSS) (Details 2) (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Feb. 01, 2014 | Nov. 09, 2013 | Aug. 17, 2013 | Feb. 02, 2013 | Nov. 03, 2012 | Aug. 11, 2012 | 25-May-13 | 19-May-12 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Reclassification out of AOCI and the related tax effects | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of unrealized gains and losses on cash flow hedging activities | ($107) | ($108) | ($99) | ($112) | ($103) | ($106) | ($129) | ($141) | ($443) | ($462) | ($435) |
Amortization of amounts included in net periodic pension expense | ' | ' | ' | ' | ' | ' | ' | ' | 102 | 97 | 62 |
Tax expense | -184 | -125 | -176 | -239 | -175 | -148 | -266 | -232 | -751 | -794 | -247 |
Net earnings attributable to The Kroger Co. | 422 | 299 | 317 | 462 | 317 | 279 | 481 | 439 | 1,519 | 1,497 | 602 |
Reclassification out of AOCI | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification out of AOCI and the related tax effects | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings attributable to The Kroger Co. | ' | ' | ' | ' | ' | ' | ' | ' | 99 | ' | ' |
Reclassification out of AOCI | Gains on cash flow hedging activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification out of AOCI and the related tax effects | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of unrealized gains and losses on cash flow hedging activities | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Tax expense | ' | ' | ' | ' | ' | ' | ' | ' | -1 | ' | ' |
Net earnings attributable to The Kroger Co. | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Reclassification out of AOCI | Pension and postretirement defined benefit plan items | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification out of AOCI and the related tax effects | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of amounts included in net periodic pension expense | ' | ' | ' | ' | ' | ' | ' | ' | 155 | ' | ' |
Tax expense | ' | ' | ' | ' | ' | ' | ' | ' | -57 | ' | ' |
Net earnings attributable to The Kroger Co. | ' | ' | ' | ' | ' | ' | ' | ' | $98 | ' | ' |
LEASES_AND_LEASEFINANCED_TRANS2
LEASES AND LEASE-FINANCED TRANSACTIONS (Details) (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Feb. 01, 2014 | Nov. 09, 2013 | Aug. 17, 2013 | Feb. 02, 2013 | Nov. 03, 2012 | Aug. 11, 2012 | 25-May-13 | 19-May-12 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Rent expense under operating leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum rentals | ' | ' | ' | ' | ' | ' | ' | ' | $706 | $727 | $715 |
Contingent payments | ' | ' | ' | ' | ' | ' | ' | ' | 13 | 13 | 13 |
Tenant income | ' | ' | ' | ' | ' | ' | ' | ' | -106 | -112 | -109 |
Total rent expense | 147 | 138 | 139 | 157 | 141 | 139 | 189 | 191 | 613 | 628 | 619 |
Capital Leases, Future minimum annual rentals and payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital Leases, 2014 | 62 | ' | ' | ' | ' | ' | ' | ' | 62 | ' | ' |
Capital Leases, 2015 | 57 | ' | ' | ' | ' | ' | ' | ' | 57 | ' | ' |
Capital Leases, 2016 | 53 | ' | ' | ' | ' | ' | ' | ' | 53 | ' | ' |
Capital Leases, 2017 | 52 | ' | ' | ' | ' | ' | ' | ' | 52 | ' | ' |
Capital Leases, 2018 | 43 | ' | ' | ' | ' | ' | ' | ' | 43 | ' | ' |
Capital Leases, Thereafter | 349 | ' | ' | ' | ' | ' | ' | ' | 349 | ' | ' |
Minimum capital lease annual rentals and payments | 616 | ' | ' | ' | ' | ' | ' | ' | 616 | ' | ' |
Less amount representing interest | -204 | ' | ' | ' | ' | ' | ' | ' | -204 | ' | ' |
Present value of net minimum lease payments under capital leases | 412 | ' | ' | ' | ' | ' | ' | ' | 412 | ' | ' |
Future minimum rentals under noncancelable subleases | 217 | ' | ' | ' | ' | ' | ' | ' | 217 | ' | ' |
Operating Leases, Future minimum annual rentals and payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Leases, 2014 | 832 | ' | ' | ' | ' | ' | ' | ' | 832 | ' | ' |
Operating Leases, 2015 | 770 | ' | ' | ' | ' | ' | ' | ' | 770 | ' | ' |
Operating Leases, 2016 | 708 | ' | ' | ' | ' | ' | ' | ' | 708 | ' | ' |
Operating Leases, 2017 | 634 | ' | ' | ' | ' | ' | ' | ' | 634 | ' | ' |
Operating Leases, 2018 | 563 | ' | ' | ' | ' | ' | ' | ' | 563 | ' | ' |
Operating Leases, Thereafter | 3,101 | ' | ' | ' | ' | ' | ' | ' | 3,101 | ' | ' |
Minimum operating lease annual rentals and payments | 6,608 | ' | ' | ' | ' | ' | ' | ' | 6,608 | ' | ' |
Lease-Financed Transactions, Future minimum annual rentals and payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease-Financed Transactions, 2014 | 6 | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' |
Lease-Financed Transactions, 2015 | 7 | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' |
Lease-Financed Transactions, 2016 | 7 | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' |
Lease-Financed Transactions, 2017 | 8 | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' |
Lease-Financed Transactions, 2018 | 8 | ' | ' | ' | ' | ' | ' | ' | 8 | ' | ' |
Lease-Financed Transactions, Thereafter | 83 | ' | ' | ' | ' | ' | ' | ' | 83 | ' | ' |
Minimum lease-financed transactions annual rentals and payments | $119 | ' | ' | ' | ' | ' | ' | ' | $119 | ' | ' |
Minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leases and lease-financed transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease term | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' |
Sublease term | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' |
Maximum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leases and lease-financed transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease term | ' | ' | ' | ' | ' | ' | ' | ' | '20 years | ' | ' |
Sublease term | ' | ' | ' | ' | ' | ' | ' | ' | '20 years | ' | ' |
EARNINGS_PER_COMMON_SHARE_Deta
EARNINGS PER COMMON SHARE (Details) (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
In Millions, except Per Share data, unless otherwise specified | Feb. 01, 2014 | Nov. 09, 2013 | Aug. 17, 2013 | Feb. 02, 2013 | Nov. 03, 2012 | Aug. 11, 2012 | 25-May-13 | 19-May-12 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
EARNINGS PER COMMON SHARE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings attributable to The Kroger Co. per basic common share | ' | ' | ' | ' | ' | ' | ' | ' | $1,507 | $1,485 | $598 |
Average number of common shares used in basic calculation | 511 | 515 | 515 | 514 | 518 | 538 | 514 | 556 | 514 | 533 | 590 |
Net earnings attributable to The Kroger Co. per basic common share (in dollars per share) | $0.82 | $0.58 | $0.61 | $0.89 | $0.61 | $0.52 | $0.93 | $0.78 | $2.93 | $2.78 | $1.01 |
Dilutive effect of stock options (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 6 | 4 | 3 |
Net earnings attributable to The Kroger Co. per diluted common share | ' | ' | ' | ' | ' | ' | ' | ' | 1,507 | 1,485 | 598 |
Average number of common shares used in diluted calculation | 517 | 521 | 521 | 518 | 522 | 541 | 520 | 559 | 520 | 537 | 593 |
Net earnings attributable to The Kroger Co. per diluted common share (in dollars per share) | $0.81 | $0.57 | $0.60 | $0.88 | $0.60 | $0.51 | $0.92 | $0.78 | $2.90 | $2.77 | $1.01 |
Undistributed and distributed earnings to participating securities | ' | ' | ' | ' | ' | ' | ' | ' | $12 | $12 | $4 |
Shares excluded from the earnings per share calculation due to anti-dilutive effect on earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 2.3 | 12.2 | 12.2 |
STOCK_OPTION_PLANS_Details
STOCK OPTION PLANS (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
STOCK OPTION PLANS | ' | ' | ' |
Frequency of equity grants made | 'at one of four meetings of Board of Directors | ' | ' |
Stock options | ' | ' | ' |
Stock-based compensation, expiration, vesting and number of shares available | ' | ' | ' |
Stock options, expiration period from date of grant | '10 years | ' | ' |
Common stock available for future grants (in shares) | 11 | ' | ' |
Ratio at which shares available for stock options can be converted into shares available for restricted stock awards | 4 | ' | ' |
Stock Options | ' | ' | ' |
Stock options outstanding at the beginning of the period (in shares) | 26.5 | 31 | 35.9 |
Stock options granted (in shares) | 4.2 | 4.1 | 3.9 |
Stock options exercised (in shares) | -8.8 | -6.7 | -5.9 |
Stock options canceled or expired (in shares) | -0.2 | -1.9 | -2.9 |
Stock options outstanding at the end of the period (in shares) | 21.7 | 26.5 | 31 |
Weighted-average exercise price | ' | ' | ' |
Weighted-average exercise price outstanding options at the beginning of the period (in dollars per share) | $22.61 | $21.80 | $21.45 |
Weighted-average exercise price options granted (in dollars per share) | $37.68 | $22.04 | $24.69 |
Weighted-average exercise price options exercised (in dollars per share) | $22.22 | $18.35 | $20.28 |
Weighted-average exercise price options canceled or expired (in dollars per share) | $25.47 | $23.28 | $24.43 |
Weighted-average exercise price outstanding options at the end of the period (in dollars per share) | $25.66 | $22.61 | $21.80 |
Weighted-average grant-date fair value | ' | ' | ' |
Weighted-average grant date fair value of stock options granted in period (in dollars per share) | $8.98 | $4.39 | $6 |
Weighted average assumptions for grants awarded to option holders | ' | ' | ' |
Expected volatility (as a percent) | 26.34% | 26.49% | 26.31% |
Risk-free interest rate (as a percent) | 1.87% | 0.97% | 2.16% |
Expected dividend yield (as a percent) | 1.82% | 2.49% | 1.90% |
Expected term | '6 years 9 months 18 days | '6 years 10 months 24 days | '6 years 10 months 24 days |
Stock options | Minimum | ' | ' | ' |
Stock-based compensation, expiration, vesting and number of shares available | ' | ' | ' |
Vesting period from date of grant | '1 year | ' | ' |
Stock options | Maximum | ' | ' | ' |
Stock-based compensation, expiration, vesting and number of shares available | ' | ' | ' |
Vesting period from date of grant | '5 years | ' | ' |
Restricted stock | ' | ' | ' |
Stock-based compensation, expiration, vesting and number of shares available | ' | ' | ' |
Common stock available for future grants (in shares) | 5 | ' | ' |
Restricted Stock | ' | ' | ' |
Restricted shares outstanding at the beginning of the period (in shares) | 4.3 | 4.2 | 4.4 |
Restricted shares granted (in shares) | 3.2 | 2.6 | 2.5 |
Restricted shares lapsed (in shares) | -2.5 | -2.4 | -2.5 |
Restricted shares canceled or expired (in shares) | -0.1 | -0.1 | -0.2 |
Restricted shares outstanding at the end of the period (in shares) | 4.8 | 4.3 | 4.2 |
Weighted-average grant-date fair value | ' | ' | ' |
Weighted-average grant-date fair value, restricted shares outstanding at beginning of the period (in dollars per share) | $22.67 | $23.92 | $22.39 |
Weighted-average grant-date fair value, restricted shares granted (in dollars per share) | $37.69 | $22.23 | $24.63 |
Weighted-average grant-date fair value, restricted shares lapsed (in dollars per share) | $22.97 | $24.34 | $21.96 |
Weighted-average grant-date fair value, restricted shares canceled or expired (in dollars per share) | $27.31 | $23.28 | $23.80 |
Weighted-average grant-date fair value, restricted shares outstanding at the end of the period (in dollars per share) | $32.31 | $22.67 | $23.92 |
Restricted stock | Minimum | ' | ' | ' |
Stock-based compensation, expiration, vesting and number of shares available | ' | ' | ' |
Vesting period from date of grant | '1 year | ' | ' |
Restricted stock | Maximum | ' | ' | ' |
Stock-based compensation, expiration, vesting and number of shares available | ' | ' | ' |
Vesting period from date of grant | '5 years | ' | ' |
STOCK_OPTION_PLANS_Details_2
STOCK OPTION PLANS (Details 2) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Options outstanding and exercisable | ' | ' | ' |
Weighted-average remaining contractual life for options exercisable | '4 years 6 months | ' | ' |
Intrinsic value of options outstanding | $233 | ' | ' |
Intrinsic value of options exercisable | 169 | ' | ' |
Stock-based employee compensation | 107 | 82 | 81 |
Stock option compensation | 24 | 22 | 22 |
Restricted shares compensation | 83 | 60 | 59 |
Intrinsic value of options exercised | 115 | 44 | 24 |
Cash received from the exercise of options | 196 | ' | ' |
Compensation expenses related to non-vested share-based compensation arrangements | 154 | ' | ' |
Weighted-average period for recognition of expenses related to non-vested share-based compensation arrangements | '2 years | ' | ' |
Total fair value of options vested | $20 | $23 | $33 |
Common stock repurchase from proceeds of stock option exercises (in shares) | 8 | ' | ' |
Range of exercise prices from $13.78 to $40.99 | Stock options | ' | ' | ' |
Options outstanding and exercisable | ' | ' | ' |
Number outstanding (in shares) | 21.7 | ' | ' |
Weighted average remaining contractual life | '6 years 1 month 13 days | ' | ' |
Weighted-average exercise price (in dollars per share) | $25.66 | ' | ' |
Options exercisable (in shares) | 12.7 | ' | ' |
Weighted-average exercise price (in dollars per share) | $22.88 | ' | ' |
Exercise price, low end of the range (in dollars per share) | $13.78 | ' | ' |
Exercise price, high end of the range (in dollars per share) | $40.99 | ' | ' |
$13.78 - $18.57 | Stock options | ' | ' | ' |
Options outstanding and exercisable | ' | ' | ' |
Number outstanding (in shares) | 2.1 | ' | ' |
Weighted average remaining contractual life | '11 months 26 days | ' | ' |
Weighted-average exercise price (in dollars per share) | $16.62 | ' | ' |
Options exercisable (in shares) | 2.1 | ' | ' |
Weighted-average exercise price (in dollars per share) | $16.62 | ' | ' |
Exercise price, low end of the range (in dollars per share) | $13.78 | ' | ' |
Exercise price, high end of the range (in dollars per share) | $18.57 | ' | ' |
$18.58 - $20.97 | Stock options | ' | ' | ' |
Options outstanding and exercisable | ' | ' | ' |
Number outstanding (in shares) | 3.6 | ' | ' |
Weighted average remaining contractual life | '4 years 9 months 18 days | ' | ' |
Weighted-average exercise price (in dollars per share) | $20.09 | ' | ' |
Options exercisable (in shares) | 2.9 | ' | ' |
Weighted-average exercise price (in dollars per share) | $20.06 | ' | ' |
Exercise price, low end of the range (in dollars per share) | $18.58 | ' | ' |
Exercise price, high end of the range (in dollars per share) | $20.97 | ' | ' |
$20.98 - $23.37 | Stock options | ' | ' | ' |
Options outstanding and exercisable | ' | ' | ' |
Number outstanding (in shares) | 5.2 | ' | ' |
Weighted average remaining contractual life | '7 years 3 months 11 days | ' | ' |
Weighted-average exercise price (in dollars per share) | $22.11 | ' | ' |
Options exercisable (in shares) | 2.6 | ' | ' |
Weighted-average exercise price (in dollars per share) | $22.21 | ' | ' |
Exercise price, low end of the range (in dollars per share) | $20.98 | ' | ' |
Exercise price, high end of the range (in dollars per share) | $23.37 | ' | ' |
$23.38 - $28.17 | Stock options | ' | ' | ' |
Options outstanding and exercisable | ' | ' | ' |
Number outstanding (in shares) | 3.1 | ' | ' |
Weighted average remaining contractual life | '7 years 2 months 19 days | ' | ' |
Weighted-average exercise price (in dollars per share) | $24.82 | ' | ' |
Options exercisable (in shares) | 1.6 | ' | ' |
Weighted-average exercise price (in dollars per share) | $24.89 | ' | ' |
Exercise price, low end of the range (in dollars per share) | $23.38 | ' | ' |
Exercise price, high end of the range (in dollars per share) | $28.17 | ' | ' |
$28.18 - $32.97 | Stock options | ' | ' | ' |
Options outstanding and exercisable | ' | ' | ' |
Number outstanding (in shares) | 3.6 | ' | ' |
Weighted average remaining contractual life | '4 years 4 days | ' | ' |
Weighted-average exercise price (in dollars per share) | $28.51 | ' | ' |
Options exercisable (in shares) | 3.5 | ' | ' |
Weighted-average exercise price (in dollars per share) | $28.44 | ' | ' |
Exercise price, low end of the range (in dollars per share) | $28.18 | ' | ' |
Exercise price, high end of the range (in dollars per share) | $32.97 | ' | ' |
$32.98 - $40.99 | Stock options | ' | ' | ' |
Options outstanding and exercisable | ' | ' | ' |
Number outstanding (in shares) | 4.1 | ' | ' |
Weighted average remaining contractual life | '9 years 5 months 8 days | ' | ' |
Weighted-average exercise price (in dollars per share) | $37.81 | ' | ' |
Weighted-average exercise price (in dollars per share) | $37.76 | ' | ' |
Exercise price, low end of the range (in dollars per share) | $32.98 | ' | ' |
Exercise price, high end of the range (in dollars per share) | $40.99 | ' | ' |
STOCK_Details
STOCK (Details) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | 20-May-99 |
Preferred Stock | ' | ' | ' | ' |
Preferred shares, shares authorized | 5,000,000 | 5,000,000 | ' | ' |
Preferred stock, shares available for issuance | 2,000,000 | ' | ' | ' |
Preferred shares, per share (in dollars per share) | $100 | $100 | ' | ' |
Common Stock | ' | ' | ' | ' |
Common shares, par per share (in dollars per share) | $1 | $1 | ' | ' |
Common shares, shares authorized | 1,000,000,000 | 1,000,000,000 | ' | ' |
Common stock, amendment in authorized shares | ' | ' | ' | 2,000,000,000 |
Common Stock Repurchase Program | ' | ' | ' | ' |
Open market purchases under repurchase programs | $338 | $1,165 | $1,420 | ' |
Common stock repurchased from stock option proceeds | $271 | $96 | $127 | ' |
COMPANYSPONSORED_BENEFIT_PLANS2
COMPANY-SPONSORED BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Amounts recognized in AOCI (pre-tax): | ' | ' | ' |
Net actuarial loss (gain) | $746 | $1,186 | ' |
Prior service cost (credit) | -33 | -5 | ' |
Total | 713 | 1,181 | ' |
Amounts in AOCI expected to be recognized as components of net periodic pension or postretirement benefit costs in the next fiscal year (pre-tax): | ' | ' | ' |
Net actuarial loss (gain) | 46 | ' | ' |
Prior service cost (credit) | -6 | ' | ' |
Total | 40 | ' | ' |
Other changes recognized in other comprehensive income (pre-tax): | ' | ' | ' |
Incurred net actuarial loss (gain) | -340 | -27 | 483 |
Amortization of prior service credit (cost) | 4 | 4 | 4 |
Amortization of net actuarial gain (loss) | -102 | -97 | -62 |
Other | -30 | ' | ' |
Total recognized in other comprehensive income | -468 | -120 | 425 |
Total recognized in net periodic benefit cost and other comprehensive income | -366 | -3 | 518 |
Pension Benefits | ' | ' | ' |
Amounts recognized in AOCI (pre-tax): | ' | ' | ' |
Net actuarial loss (gain) | 857 | 1,201 | ' |
Prior service cost (credit) | 2 | 3 | ' |
Total | 859 | 1,204 | ' |
Amounts in AOCI expected to be recognized as components of net periodic pension or postretirement benefit costs in the next fiscal year (pre-tax): | ' | ' | ' |
Net actuarial loss (gain) | 52 | ' | ' |
Prior service cost (credit) | 1 | ' | ' |
Total | 53 | ' | ' |
Other changes recognized in other comprehensive income (pre-tax): | ' | ' | ' |
Incurred net actuarial loss (gain) | -243 | -33 | 451 |
Amortization of prior service credit (cost) | ' | ' | -1 |
Amortization of net actuarial gain (loss) | -102 | -97 | -64 |
Total recognized in other comprehensive income | -345 | -130 | 386 |
Total recognized in net periodic benefit cost and other comprehensive income | -271 | -41 | 456 |
Other Benefits | ' | ' | ' |
Amounts recognized in AOCI (pre-tax): | ' | ' | ' |
Net actuarial loss (gain) | -111 | -15 | ' |
Prior service cost (credit) | -35 | -8 | ' |
Total | -146 | -23 | ' |
Amounts in AOCI expected to be recognized as components of net periodic pension or postretirement benefit costs in the next fiscal year (pre-tax): | ' | ' | ' |
Net actuarial loss (gain) | -6 | ' | ' |
Prior service cost (credit) | -7 | ' | ' |
Total | -13 | ' | ' |
Other changes recognized in other comprehensive income (pre-tax): | ' | ' | ' |
Incurred net actuarial loss (gain) | -97 | 6 | 32 |
Amortization of prior service credit (cost) | 4 | 4 | 5 |
Amortization of net actuarial gain (loss) | ' | ' | 2 |
Other | -30 | ' | ' |
Total recognized in other comprehensive income | -123 | 10 | 39 |
Total recognized in net periodic benefit cost and other comprehensive income | ($95) | $38 | $62 |
COMPANYSPONSORED_BENEFIT_PLANS3
COMPANY-SPONSORED BENEFIT PLANS (Details 2) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Change in plan assets: | ' | ' | ' |
Other current liabilities | $30 | $29 | ' |
Qualified Plans | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligations at beginning of fiscal year | 3,443 | 3,348 | ' |
Service cost | 40 | 44 | 41 |
Interest cost | 144 | 146 | 158 |
Actuarial (gain) loss | -308 | 33 | ' |
Benefits paid | -136 | -131 | ' |
Other | ' | 3 | ' |
Assumption of Harris Teeter benefit obligation | 326 | ' | ' |
Benefit obligations at end of fiscal year | 3,509 | 3,443 | 3,348 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets at beginning of fiscal year | 2,746 | 2,523 | ' |
Actual return on plan assets | 139 | 278 | ' |
Employer contributions | 100 | 71 | ' |
Benefits paid | -136 | -131 | ' |
Other | ' | 5 | ' |
Assumption of Harris Teeter plan assets | 286 | ' | ' |
Fair value of plan assets at end of fiscal year | 3,135 | 2,746 | 2,523 |
Funded status at end of fiscal year | -374 | -697 | ' |
Net liability recognized at end of fiscal year | -374 | -697 | ' |
Non-Qualified Plan | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligations at beginning of fiscal year | 221 | 217 | ' |
Service cost | 3 | 3 | 3 |
Interest cost | 9 | 9 | 10 |
Actuarial (gain) loss | -20 | 3 | ' |
Benefits paid | -10 | -11 | ' |
Assumption of Harris Teeter benefit obligation | 60 | ' | ' |
Benefit obligations at end of fiscal year | 263 | 221 | 217 |
Change in plan assets: | ' | ' | ' |
Employer contributions | 10 | 11 | ' |
Benefits paid | -10 | -11 | ' |
Funded status at end of fiscal year | -263 | -221 | ' |
Net liability recognized at end of fiscal year | -263 | -221 | ' |
Other Benefits | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligations at beginning of fiscal year | 402 | 378 | ' |
Service cost | 17 | 16 | 13 |
Interest cost | 15 | 16 | 17 |
Plan participants' contributions | 10 | 9 | ' |
Actuarial (gain) loss | -97 | 6 | ' |
Benefits paid | -25 | -23 | ' |
Other | -30 | ' | ' |
Assumption of Harris Teeter benefit obligation | 2 | ' | ' |
Benefit obligations at end of fiscal year | 294 | 402 | 378 |
Change in plan assets: | ' | ' | ' |
Employer contributions | 15 | 14 | ' |
Plan participants' contributions | 10 | 9 | ' |
Benefits paid | -25 | -23 | ' |
Funded status at end of fiscal year | -294 | -402 | ' |
Net liability recognized at end of fiscal year | ($294) | ($402) | ' |
COMPANYSPONSORED_BENEFIT_PLANS4
COMPANY-SPONSORED BENEFIT PLANS (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Weighted average assumptions used to determine pension benefits and other benefits | ' | ' | ' |
The number of years in which the Company average annual return rate and the average annual return rate of the S&P 500 have been at the current rates | '20 years | ' | ' |
Average annual rate of return for the past 20 years (as a percent) | 9.20% | ' | ' |
Average annual return for the S&P 500 for the past 20 years (as a percent) | 8.50% | 8.50% | 8.50% |
Period of recognition of gains or losses on plan assets | '5 years | ' | ' |
Pension Benefits | ' | ' | ' |
Weighted average assumptions used to determine pension benefits and other benefits | ' | ' | ' |
Discount rate - Benefit obligation (as a percent) | 4.99% | 4.29% | 4.55% |
Discount rate - Net periodic benefit cost (as a percent) | 4.29% | 4.55% | 5.60% |
Expected return on plan assets (as a percent) | 8.50% | 8.50% | 8.50% |
Rate of compensation increase - Net periodic benefit cost (as a percent) | 2.77% | 2.82% | 2.88% |
Rate of compensation increase - Benefit Obligation (as a percent) | 2.86% | 2.77% | 2.82% |
Increase in discount rate used to determine pension benefit obligation, as compared to prior year (in basis points) | 100 | ' | ' |
Decrease in pension benefit obligation due to change in discount rate | 395 | ' | ' |
Pension plan's average rate of return for the 10 calendar years ended December 31, net of all investment management fees and expenses (as a percent) | 8.10% | ' | ' |
The measurement period for the pension plan's average annual rate of return, rate in calendar years | '10 years | ' | ' |
Percentage increase in value of all investments in Company-sponsored defined benefit pension plans, net of investment management fees and expenses | 8.00% | ' | ' |
Other Benefits | ' | ' | ' |
Weighted average assumptions used to determine pension benefits and other benefits | ' | ' | ' |
Discount rate - Benefit obligation (as a percent) | 4.68% | 4.11% | 4.40% |
Discount rate - Net periodic benefit cost (as a percent) | 4.11% | 4.40% | 5.40% |
COMPANYSPONSORED_BENEFIT_PLANS5
COMPANY-SPONSORED BENEFIT PLANS (Details 4) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Target and actual pension plan asset allocations | ' | ' | ' |
Expected contribution to employee 401(k) retirement savings accounts | $30 | ' | ' |
Initial health care cost trend rate (as a percent) | 7.10% | ' | ' |
Ultimate health care cost trend rate (as a percent) | 4.50% | ' | ' |
One-percentage-point change in assumed health care cost trend rates | ' | ' | ' |
Effect of a one-percentage-point increase to total of service and interest cost components | 5 | ' | ' |
Effect of a one-percentage-point decrease to total of service and interest cost components | -4 | ' | ' |
Effect of a one-percentage-point increase to post-retirement benefit obligation | 31 | ' | ' |
Effect of a one-percentage-point decrease to post-retirement benefit obligation | -26 | ' | ' |
2014 Forecast | ' | ' | ' |
Target and actual pension plan asset allocations | ' | ' | ' |
Expected expense in 2014 | 40 | ' | ' |
Pension Benefits | ' | ' | ' |
Estimated future benefit payments | ' | ' | ' |
2014 | 201 | ' | ' |
2015 | 204 | ' | ' |
2016 | 203 | ' | ' |
2017 | 211 | ' | ' |
2018 | 221 | ' | ' |
2019-2023 | 1,232 | ' | ' |
Target and actual pension plan asset allocations | ' | ' | ' |
Target allocations (as a percent) | 100.00% | ' | ' |
Total actual allocations (as a percent) | 100.00% | 100.00% | ' |
Pension Benefits | Global equity securities | ' | ' | ' |
Target and actual pension plan asset allocations | ' | ' | ' |
Target allocations (as a percent) | 14.60% | ' | ' |
Total actual allocations (as a percent) | 15.00% | 19.20% | ' |
Pension Benefits | Emerging market equity securities | ' | ' | ' |
Target and actual pension plan asset allocations | ' | ' | ' |
Target allocations (as a percent) | 5.60% | ' | ' |
Total actual allocations (as a percent) | 6.20% | 8.90% | ' |
Pension Benefits | Investment grade debt securities | ' | ' | ' |
Target and actual pension plan asset allocations | ' | ' | ' |
Target allocations (as a percent) | 11.60% | ' | ' |
Total actual allocations (as a percent) | 10.40% | 8.10% | ' |
Pension Benefits | High yield debt securities | ' | ' | ' |
Target and actual pension plan asset allocations | ' | ' | ' |
Target allocations (as a percent) | 12.70% | ' | ' |
Total actual allocations (as a percent) | 12.50% | 17.30% | ' |
Pension Benefits | Private Equity | ' | ' | ' |
Target and actual pension plan asset allocations | ' | ' | ' |
Target allocations (as a percent) | 9.10% | ' | ' |
Total actual allocations (as a percent) | 7.70% | 6.00% | ' |
Pension Benefits | Hedge Funds | ' | ' | ' |
Target and actual pension plan asset allocations | ' | ' | ' |
Target allocations (as a percent) | 32.90% | ' | ' |
Total actual allocations (as a percent) | 34.20% | 27.20% | ' |
Pension Benefits | Real Estate | ' | ' | ' |
Target and actual pension plan asset allocations | ' | ' | ' |
Target allocations (as a percent) | 3.30% | ' | ' |
Total actual allocations (as a percent) | 3.30% | 3.30% | ' |
Pension Benefits | Other | ' | ' | ' |
Target and actual pension plan asset allocations | ' | ' | ' |
Target allocations (as a percent) | 10.20% | ' | ' |
Total actual allocations (as a percent) | 10.70% | 10.00% | ' |
Qualified Plans | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' |
Service cost | 40 | 44 | 41 |
Interest cost | 144 | 146 | 158 |
Expected return on plan assets | -224 | -210 | -207 |
Amortization of: | ' | ' | ' |
Actuarial gain (loss) | 93 | 88 | 57 |
Net periodic benefit cost | 53 | 68 | 49 |
Projected benefit obligation ("PBO"), accumulated benefit obligation ("ABO") and the fair value of plan assets for all Company-sponsored pension plans: | ' | ' | ' |
PBO at end of fiscal year | 3,509 | 3,443 | 3,348 |
ABO at end of fiscal year | 3,360 | 3,278 | ' |
Fair value of plan assets at end of year | 3,135 | 2,746 | 2,523 |
Target and actual pension plan asset allocations | ' | ' | ' |
Employer contributions | 100 | 71 | ' |
Non-Qualified Plan | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' |
Service cost | 3 | 3 | 3 |
Interest cost | 9 | 9 | 10 |
Amortization of: | ' | ' | ' |
Prior service cost (credit) | ' | ' | 1 |
Actuarial gain (loss) | 9 | 9 | 7 |
Net periodic benefit cost | 21 | 21 | 21 |
Projected benefit obligation ("PBO"), accumulated benefit obligation ("ABO") and the fair value of plan assets for all Company-sponsored pension plans: | ' | ' | ' |
PBO at end of fiscal year | 263 | 221 | 217 |
ABO at end of fiscal year | 256 | 211 | ' |
Target and actual pension plan asset allocations | ' | ' | ' |
Employer contributions | 10 | 11 | ' |
Other Benefits | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' |
Service cost | 17 | 16 | 13 |
Interest cost | 15 | 16 | 17 |
Amortization of: | ' | ' | ' |
Prior service cost (credit) | -4 | -4 | -5 |
Actuarial gain (loss) | ' | ' | -2 |
Net periodic benefit cost | 28 | 28 | 23 |
Projected benefit obligation ("PBO"), accumulated benefit obligation ("ABO") and the fair value of plan assets for all Company-sponsored pension plans: | ' | ' | ' |
PBO at end of fiscal year | 294 | 402 | 378 |
Estimated future benefit payments | ' | ' | ' |
2014 | 16 | ' | ' |
2015 | 18 | ' | ' |
2016 | 19 | ' | ' |
2017 | 21 | ' | ' |
2018 | 23 | ' | ' |
2019-2023 | 135 | ' | ' |
Target and actual pension plan asset allocations | ' | ' | ' |
Employer contributions | $15 | $14 | ' |
COMPANYSPONSORED_BENEFIT_PLANS6
COMPANY-SPONSORED BENEFIT PLANS (Details 5) (USD $) | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
In Millions, unless otherwise specified | |||
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | $655 | $522 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 26 | 17 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate Stocks | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 326 | 375 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual Funds/Collective Trusts | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 303 | 130 | ' |
Significant Other Observable Inputs (Level 2) | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 1,029 | 1,214 | ' |
Significant Other Observable Inputs (Level 2) | Corporate Bonds | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 94 | 72 | ' |
Significant Other Observable Inputs (Level 2) | U.S. Government Securities | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 60 | 66 | ' |
Significant Other Observable Inputs (Level 2) | Mutual Funds/Collective Trusts | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 419 | 559 | ' |
Significant Other Observable Inputs (Level 2) | Partnerships/Joint Ventures | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 317 | 378 | ' |
Significant Other Observable Inputs (Level 2) | Other | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 139 | 139 | ' |
Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 1,451 | 1,010 | ' |
Significant Unobservable Inputs (Level 3) | Mutual Funds/Collective Trusts | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 39 | ' | ' |
Significant Unobservable Inputs (Level 3) | Hedge Funds | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 1,073 | 739 | 579 |
Significant Unobservable Inputs (Level 3) | Private Equity | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 243 | 180 | 159 |
Significant Unobservable Inputs (Level 3) | Real Estate | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 96 | 91 | 81 |
Fair value | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 3,135 | 2,746 | ' |
Fair value | Cash and cash equivalents | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 26 | 17 | ' |
Fair value | Corporate Stocks | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 326 | 375 | ' |
Fair value | Corporate Bonds | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 94 | 72 | ' |
Fair value | U.S. Government Securities | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 60 | 66 | ' |
Fair value | Mutual Funds/Collective Trusts | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 761 | 689 | ' |
Fair value | Partnerships/Joint Ventures | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 317 | 378 | ' |
Fair value | Hedge Funds | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 1,073 | 739 | ' |
Fair value | Private Equity | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 243 | 180 | ' |
Fair value | Real Estate | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | 96 | 91 | ' |
Fair value | Other | ' | ' | ' |
Defined benefit plan, disclosure | ' | ' | ' |
Fair value of plan assets | $139 | $139 | ' |
COMPANYSPONSORED_BENEFIT_PLANS7
COMPANY-SPONSORED BENEFIT PLANS (Details 6) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Roll-Forwards of assets measured at fair value using Level 3 inputs | ' | ' | ' |
Contribution to employee 401(k) retirement savings accounts | $148 | $140 | $130 |
Cost of other defined contribution plans | 5 | 7 | 6 |
Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Roll-Forwards of assets measured at fair value using Level 3 inputs | ' | ' | ' |
Fair value of plan assets at end of fiscal year | 1,451 | 1,010 | ' |
Hedge Funds | Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Roll-Forwards of assets measured at fair value using Level 3 inputs | ' | ' | ' |
Fair value of plan assets at beginning of fiscal year | 739 | 579 | ' |
Contributions into Fund | 297 | 175 | ' |
Realized gains (losses) | 7 | 11 | ' |
Unrealized gains | 71 | 55 | ' |
Distributions | -88 | -81 | ' |
Assumption of Harris Teeter plan assets | 47 | ' | ' |
Fair value of plan assets at end of fiscal year | 1,073 | 739 | ' |
Private Equity | Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Roll-Forwards of assets measured at fair value using Level 3 inputs | ' | ' | ' |
Fair value of plan assets at beginning of fiscal year | 180 | 159 | ' |
Contributions into Fund | 74 | 49 | ' |
Realized gains (losses) | 12 | 15 | ' |
Unrealized gains | 17 | ' | ' |
Distributions | -47 | -49 | ' |
Other | 7 | 6 | ' |
Fair value of plan assets at end of fiscal year | 243 | 180 | ' |
Real Estate | Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Roll-Forwards of assets measured at fair value using Level 3 inputs | ' | ' | ' |
Fair value of plan assets at beginning of fiscal year | 91 | 81 | ' |
Contributions into Fund | 22 | 23 | ' |
Realized gains (losses) | 11 | 3 | ' |
Unrealized gains | ' | 2 | ' |
Distributions | -27 | -22 | ' |
Other | -1 | 4 | ' |
Fair value of plan assets at end of fiscal year | 96 | 91 | ' |
Collective Trusts | Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Roll-Forwards of assets measured at fair value using Level 3 inputs | ' | ' | ' |
Assumption of Harris Teeter plan assets | 39 | ' | ' |
Fair value of plan assets at end of fiscal year | $39 | ' | ' |
MULTIEMPLOYER_PENSION_PLANS_De
MULTI-EMPLOYER PENSION PLANS (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
In Millions, unless otherwise specified | Jan. 28, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Jan. 01, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Jan. 28, 2012 | Dec. 31, 2011 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Jan. 28, 2012 | Dec. 31, 2011 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Jan. 28, 2012 | Dec. 31, 2011 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Jan. 28, 2012 | Dec. 31, 2011 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 | Feb. 02, 2013 | Jan. 28, 2012 | Feb. 02, 2013 | Jan. 28, 2012 | Feb. 01, 2014 | Jan. 01, 2012 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Red zone | Yellow zone | Green zone | Memorandum of understanding with United Food and Commercial Workers International Union | Memorandum of understanding with United Food and Commercial Workers International Union | Memorandum of understanding with United Food and Commercial Workers International Union | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | Pension Fund | |||||
Maximum | Maximum | Minimum | item | SO CA UFCW Unions & Food Employers Joint Pension Trust Fund | SO CA UFCW Unions & Food Employers Joint Pension Trust Fund | SO CA UFCW Unions & Food Employers Joint Pension Trust Fund | BD of Trustees of UNTD Food and Commercial | BD of Trustees of UNTD Food and Commercial | Desert States Employers & UFCW Unions Pension Plan | Desert States Employers & UFCW Unions Pension Plan | Desert States Employers & UFCW Unions Pension Plan | UFCW Unions and Food Employers Pension Plan of Central Ohio | UFCW Unions and Food Employers Pension Plan of Central Ohio | Sound Retirement Trust (formerly Retail Clerks Pension Plan) | Sound Retirement Trust (formerly Retail Clerks Pension Plan) | Sound Retirement Trust (formerly Retail Clerks Pension Plan) | Rocky Mountain UFCW Unions and Employers Pension Plan | Rocky Mountain UFCW Unions and Employers Pension Plan | Rocky Mountain UFCW Unions and Employers Pension Plan | Indiana UFCW Unions and Retail Food Employers Pension Plan | Indiana UFCW Unions and Retail Food Employers Pension Plan | Oregon Retail Employees Pension Plan | Oregon Retail Employees Pension Plan | Oregon Retail Employees Pension Plan | Bakery and Confectionary Union & Industry International Pension Fund | Bakery and Confectionary Union & Industry International Pension Fund | Bakery and Confectionary Union & Industry International Pension Fund | Washington Meat Industry Pension Trust | Washington Meat Industry Pension Trust | Washington Meat Industry Pension Trust | Retail Food Employers & UFCW Local 711 Pension | Retail Food Employers & UFCW Local 711 Pension | Retail Food Employers & UFCW Local 711 Pension | Denver Area Meat Cutters and Employers Pension Plan | Denver Area Meat Cutters and Employers Pension Plan | Denver Area Meat Cutters and Employers Pension Plan | United Food & Commercial Workers Intl Union - Industry Pension Fund | United Food & Commercial Workers Intl Union - Industry Pension Fund | United Food & Commercial Workers Intl Union - Industry Pension Fund | Northwest Ohio UFCW Union and Employers Joint Pension Fund | Northwest Ohio UFCW Union and Employers Joint Pension Fund | Western Conference of Teamsters Pension Plan | Western Conference of Teamsters Pension Plan | Western Conference of Teamsters Pension Plan | Central States, Southeast & Southwest Areas Pension Plan | Central States, Southeast & Southwest Areas Pension Plan | Central States, Southeast & Southwest Areas Pension Plan | UFCW Consolidated Pension Plan | UFCW Consolidated Pension Plan | UFCW Consolidated Pension Plan | UFCW Consolidated Pension Plan | UFCW Consolidated Pension Plan | UFCW Consolidated Pension Plan | Other | Other | Other | ||||||||||
item | item | item | item | item | item | item | item | item | item | item | item | item | item | item | item | item | item | |||||||||||||||||||||||||||||||||||||||||||||||||
MULTI-EMPLOYER PLANS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of locals of the United Food and Commercial Workers International Union that participate in the four multi-employer pension funds | ' | ' | ' | ' | ' | ' | ' | ' | 14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of multi-employer pension funds | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of multi-employer pension funds after the consolidation | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pre-tax underfunded amount of the four existing multi-employer pension plans before adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | $911 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pre-tax underfunded amount of the four existing multi-employer pension plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | 858 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of adjustment recorded reducing estimated commitment | ' | ' | ' | ' | ' | ' | ' | 53 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contribution allocated to Unfunded Actuarial Accrued Liability | 600 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contribution allocated to service and interest costs and expense | 50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of funded status | ' | ' | ' | ' | 65.00% | 80.00% | 80.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employer contribution to multi-employer benefit plans | ' | $1,100 | $1,100 | $1,000 | ' | ' | ' | ' | ' | ' | $228 | $492 | $946 | $45 | $43 | $40 | $59 | ' | $23 | $22 | $20 | $23 | ' | $13 | $12 | $10 | $17 | $17 | $16 | $5 | ' | $7 | $7 | $6 | $12 | $10 | $9 | $3 | $3 | $2 | $8 | $8 | $7 | $8 | $8 | $8 | $33 | $33 | $33 | $2 | ' | $31 | $30 | $31 | $15 | $12 | $14 | $258 | $650 | $275 | $650 | ' | ' | $13 | $12 | $11 |
Minimum percentage of total contributions received by pension fund | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | 5.00% | 5.00% | ' | 5.00% | 5.00% | 5.00% | 5.00% | ' | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | ' | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | ' | ' | ' | ' |
Number of multi-employer pension funds | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of multi-employer pension funds before consolidation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' |
Most Significant Collective Bargaining Agreements Count | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | 1 | ' | ' | ' | ' | 2 | ' | ' | 1 | ' | ' | ' | ' | 3 | ' | ' | 4 | ' | ' | 1 | ' | ' | 2 | ' | ' | 1 | ' | ' | 2 | ' | ' | ' | ' | 5 | ' | ' | 2 | ' | ' | ' | 8 | ' | ' | ' | ' | ' | ' |
QUARTERLY_DATA_UNAUDITED_Detai
QUARTERLY DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||
In Millions, except Per Share data, unless otherwise specified | Feb. 01, 2014 | Nov. 09, 2013 | Aug. 17, 2013 | Feb. 02, 2013 | Nov. 03, 2012 | Aug. 11, 2012 | 25-May-13 | 19-May-12 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
QUARTERLY DATA (UNAUDITED) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Length of Quarter | '84 days | '84 days | '84 days | '91 days | '84 days | '84 days | '112 days | '112 days | '364 days | '371 days | ' |
Sales | $23,222 | $22,470 | $22,686 | $24,120 | $21,776 | $21,697 | $29,997 | $29,026 | $98,375 | $96,619 | $90,269 |
Merchandise costs, including advertising, warehousing, and transportation, excluding items shown separately below | 18,397 | 17,866 | 18,059 | 19,069 | 17,352 | 17,249 | 23,817 | 23,056 | 78,138 | 76,726 | 71,389 |
Operating, general, and administrative | 3,558 | 3,537 | 3,506 | 3,689 | 3,305 | 3,391 | 4,593 | 4,464 | 15,196 | 14,849 | 15,345 |
Rent | 147 | 138 | 139 | 157 | 141 | 139 | 189 | 191 | 613 | 628 | 619 |
Depreciation and amortization | 402 | 395 | 387 | 386 | 382 | 383 | 519 | 501 | 1,703 | 1,652 | 1,638 |
Operating Profit | 718 | 534 | 595 | 819 | 596 | 535 | 879 | 814 | 2,725 | 2,764 | 1,278 |
Interest expense | 107 | 108 | 99 | 112 | 103 | 106 | 129 | 141 | 443 | 462 | 435 |
Earnings before income tax expense | 611 | 426 | 496 | 707 | 493 | 429 | 750 | 673 | 2,282 | 2,302 | 843 |
Income tax expense | 184 | 125 | 176 | 239 | 175 | 148 | 266 | 232 | 751 | 794 | 247 |
Net earnings including noncontrolling interests | 427 | 301 | 320 | 468 | 318 | 281 | 484 | 441 | 1,531 | 1,508 | 596 |
Net earnings attributable to noncontrolling interests | 5 | 2 | 3 | 6 | 1 | 2 | 3 | 2 | 12 | 11 | -6 |
Net earnings attributable to The Kroger Co. | $422 | $299 | $317 | $462 | $317 | $279 | $481 | $439 | $1,519 | $1,497 | $602 |
Net earnings attributable to The Kroger Co. per basic common share (in dollars per share) | $0.82 | $0.58 | $0.61 | $0.89 | $0.61 | $0.52 | $0.93 | $0.78 | $2.93 | $2.78 | $1.01 |
Average number of common shares used in basic calculation (in shares) | 511 | 515 | 515 | 514 | 518 | 538 | 514 | 556 | 514 | 533 | 590 |
Net earnings attributable to The Kroger Co. per diluted common share (in dollars per share) | $0.81 | $0.57 | $0.60 | $0.88 | $0.60 | $0.51 | $0.92 | $0.78 | $2.90 | $2.77 | $1.01 |
Average number of common shares used in diluted calculation (in shares) | 517 | 521 | 521 | 518 | 522 | 541 | 520 | 559 | 520 | 537 | 593 |
Dividends declared per common share (in dollars per share) | $0.17 | $0.17 | $0.15 | $0.15 | $0.15 | $0.12 | $0.15 | $0.12 | $0.63 | $0.53 | $0.44 |