The Kroger Co. (KR) 10-Q15 Dec 202020 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - $ / shares	9 Months Ended
Document and Entity Information - $ / shares	Nov. 07, 2020	Dec. 08, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Nov. 7, 2020
Entity File Number	1-303
Entity Registrant Name	The Kroger Co.
Entity Incorporation, State or Country Code	OH
Entity Tax Identification Number	31-0345740
Entity Address, Address Line One	1014 Vine Street
Entity Address, City or Town	Cincinnati
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	45202
City Area Code	513
Local Phone Number	762-4000
Title of 12(b) Security	Common, $1.00 Par Value
Trading Symbol	KR
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		761,347,060
Entity Listing, Par Value Per Share	$ 1
Current Fiscal Year End Date	--01-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000056873
Amendment Flag	false

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Nov. 07, 2020	Nov. 09, 2019	Nov. 07, 2020	Nov. 09, 2019
CONSOLIDATED STATEMENTS OF OPERATIONS
Sales	$ 29,723	$ 27,974	$ 101,761	$ 93,393
Operating expenses
Merchandise costs, including advertising, warehousing, and transportation, excluding items shown separately below	22,901	21,798	77,906	72,787
Operating, general and administrative	5,194	5,097	18,162	16,223
Rent	205	201	682	675
Depreciation and amortization	631	624	2,073	1,994
Operating profit	792	254	2,938	1,714
Other income (expense)
Interest expense	(129)	(137)	(438)	(463)
Non-service component of company-sponsored pension plan costs	9	(1)	28	(2)
Gain on investments	162	106	952	166
Gain on sale of businesses				176
Net earnings before income tax expense	834	222	3,480	1,591
Income tax expense	202	79	816	398
Net earnings including noncontrolling interests	632	143	2,664	1,193
Net income (loss) attributable to noncontrolling interests	1	(120)	2	(139)
Net earnings attributable to The Kroger Co.	$ 631	$ 263	$ 2,662	$ 1,332
Net earnings attributable to The Kroger Co. per basic common share	$ 0.81	$ 0.32	$ 3.39	$ 1.65
Average number of common shares used in basic calculation	772	802	777	800
Net earnings attributable to The Kroger Co. per diluted common share	$ 0.80	$ 0.32	$ 3.35	$ 1.64
Average number of common shares used in diluted calculation	780	807	785	805

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Nov. 07, 2020	Nov. 09, 2019	Nov. 07, 2020	Nov. 09, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net earnings including noncontrolling interests		$ 632	$ 143	$ 2,664	$ 1,193
Other comprehensive income (loss)
Change in pension and other postretirement defined benefit plans, net of income tax	[1]	22	7	28	23
Unrealized gains and losses on cash flow hedging activities, net of income tax	[2]	7	34	(12)	(29)
Amortization of unrealized gains and losses on cash flow hedging activities, net of income tax	[3]	1	1	3	3
Cumulative effect of accounting change	[4]				(146)
Total other comprehensive income (loss)		30	42	19	(149)
Comprehensive income		662	185	2,683	1,044
Comprehensive income (loss) attributable to noncontrolling interests		1	(120)	2	(139)
Comprehensive income attributable to The Kroger Co.		$ 661	$ 305	$ 2,681	$ 1,183

[1]	Amount is net of tax of $2 for the third quarter of 2020 and $3 for the third quarter of 2019. Amount is net of tax of $5 for the first three quarters of 2020 and $8 for the first three quarters of 2019.
[2]	Amount is net of tax of $1 for the third quarter of 2020 and $10 for the third quarter of 2019. Amount is net of tax of ($9) for the first three quarters of 2020 and ($16 ) for the first three quarters of 2019.
[3]	Amount is net of tax of $1 for the third quarter of 2019. Amount is net of tax of $1 for the first three quarters of 2020 and $3 for the first three quarters of 2019.
[4]	Related to the adoption of Accounting Standards Update (“ASU”) 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income."

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 07, 2020	Nov. 09, 2019	Nov. 07, 2020	Nov. 09, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Change in pension and other postretirement defined benefit plans, income tax	$ 2	$ 3	$ 5	$ 8
Unrealized gains and losses on cash flow hedging activities, income tax	$ 1	10	(9)	(16)
Amortization of unrealized gains and losses on cash flow hedging activities, income tax		$ 1	$ 1	$ 3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Nov. 07, 2020	Feb. 01, 2020
Current assets
Cash and temporary cash investments	$ 2,180	$ 399
Store deposits in-transit	1,102	1,179
Receivables	1,610	1,706
FIFO inventory	8,935	8,464
LIFO reserve	(1,457)	(1,380)
Prepaid and other current assets	576	522
Total current assets	12,946	10,890
Property, plant and equipment, net	21,902	21,871
Operating lease assets	6,843	6,814
Intangibles, net	1,012	1,066
Goodwill	3,076	3,076
Other assets	2,686	1,539
Total Assets	48,465	45,256
Current liabilities
Current portion of long-term debt including obligations under finance leases	1,595	1,965
Current portion of operating lease liabilities	669	597
Trade accounts payable	7,355	6,349
Accrued salaries and wages	1,236	1,168
Other current liabilities	4,662	4,164
Total current liabilities	15,517	14,243
Long-term debt including obligations under finance leases	11,925	12,111
Noncurrent operating lease liabilities	6,482	6,505
Deferred income taxes	1,682	1,466
Pension and postretirement benefit obligations	543	608
Other long-term liabilities	2,272	1,750
Total Liabilities	38,421	36,683
Commitments and contingencies see Note 7
SHAREHOLDERS' EQUITY
Preferred shares, $100 par per share, 5 shares authorized and unissued
Common shares, $1 par per share, 2,000 shares authorized; 1,918 shares issued in 2020 and 2019	1,918	1,918
Additional paid-in capital	3,420	3,337
Accumulated other comprehensive loss	(621)	(640)
Accumulated earnings	23,234	20,978
Common shares in treasury, at cost, 1,152 shares in 2020 and 1,130 shares in 2019	(17,881)	(16,991)
Total Shareholders' Equity - The Kroger Co.	10,070	8,602
Noncontrolling interests	(26)	(29)
Total Equity	10,044	8,573
Total Liabilities and Equity	$ 48,465	$ 45,256

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions	Nov. 07, 2020	Feb. 01, 2020
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	2,000	2,000
Common shares, shares issued	1,918	1,918
Common shares in treasury, shares	1,152	1,130

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Nov. 07, 2020	Nov. 09, 2019
Cash Flows from Operating Activities:
Net earnings including noncontrolling interests	$ 2,664	$ 1,193
Adjustments to reconcile net earnings including noncontrolling interests to net cash provided by operating activities:
Depreciation and amortization	2,073	1,994
Operating lease asset amortization	481	494
LIFO charge	77	69
Stock-based employee compensation	147	117
Company-sponsored pension plan costs	(12)	32
Deferred income taxes	219	(46)
Gain on sale of businesses		(176)
Gain on the sale of assets	(24)	(150)
Gain on investments	(952)	(166)
Impairment of Lucky's Market		238
Other	119	(1)
Changes in operating assets and liabilities net of effects from mergers and disposals of businesses:
Store deposits in-transit	77	148
Receivables	42	93
Inventories	(471)	(636)
Prepaid and other current assets	(56)	66
Trade accounts payable	1,006	808
Accrued expenses	469	299
Income taxes receivable and payable	89	(145)
Operating lease liabilities	(464)	(477)
Proceeds from contract associated with sale of business		295
Other	413	(1)
Net cash provided by operating activities	5,897	4,048
Cash Flows from Investing Activities:
Payments for property and equipment, including payments for lease buyouts	(2,062)	(2,363)
Proceeds from sale of assets	99	257
Net proceeds from sale of businesses		327
Other	(85)	(45)
Net cash used by investing activities	(2,048)	(1,824)
Cash Flows from Financing Activities:
Proceeds from issuance of long-term debt	537	61
Payments on long-term debt including obligations under finance leases	(41)	(1,540)
Net payments on commercial paper	(1,150)	(235)
Dividends paid	(395)	(356)
Proceeds from issuance of capital stock	98	32
Treasury stock purchases	(989)	(34)
Other	(128)	(36)
Net cash used by financing activities	(2,068)	(2,108)
Net increase in cash and temporary cash investments	1,781	116
Cash and temporary cash investments:
Beginning of year	399	429
End of period	2,180	545
Reconciliation of capital investments:
Payments for property and equipment, including payments for lease buyouts	(2,062)	(2,363)
Payments for lease buyouts	42	24
Changes in construction-in-progress payables	(44)	96
Total capital investments, excluding lease buyouts	(2,064)	(2,243)
Disclosure of cash flow information:
Cash paid during the year for interest	474	407
Cash paid during the year for income taxes	$ 495	$ 633

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY - USD ($) shares in Millions, $ in Millions	Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Accumulated EarningsCumulative Effect, Period of Adoption, Adjustment	Accumulated Earnings	Noncontrolling Interest	Cumulative Effect, Period of Adoption, Adjustment	Total
Balances at Feb. 02, 2019	$ 1,918	$ 3,245	$ (16,612)	$ (346)	$ 146	$ 19,681	$ (51)	$ 146	$ 7,835
Balances (in shares) at Feb. 02, 2019	1,918		1,120
Issuance of common stock:
Stock options exercised			$ 12						12
Stock options exercised (in shares)			(1)
Restricted stock issued		(14)	$ 10						(4)
Treasury stock activity:
Stock options exchanged			(15)						(15)
Share-based employee compensation		48							48
Other comprehensive income (loss) net of income tax (benefit)				(146)					(146)
Other		8	(8)			(5)	11		6
Cash dividends declared per common share						(113)			(113)
Net earnings including noncontrolling interests						772	(9)		763
Balances at May. 25, 2019	$ 1,918	3,287	$ (16,613)	(492)		20,481	(49)		8,532
Balances (in shares) at May. 25, 2019	1,918		1,119
Balances at Feb. 02, 2019	$ 1,918	3,245	$ (16,612)	(346)	$ 146	19,681	(51)	$ 146	7,835
Balances (in shares) at Feb. 02, 2019	1,918		1,120
Treasury stock activity:
Other comprehensive income (loss) net of income tax (benefit)				(149)					(149)
Net earnings including noncontrolling interests									1,193
Balances at Nov. 09, 2019	$ 1,918	3,296	$ (16,585)	(495)		20,781	(187)		8,728
Balances (in shares) at Nov. 09, 2019	1,918		1,116
Balances at May. 25, 2019	$ 1,918	3,287	$ (16,613)	(492)		20,481	(49)		8,532
Balances (in shares) at May. 25, 2019	1,918		1,119
Issuance of common stock:
Stock options exercised			$ 6						6
Stock options exercised (in shares)			(1)
Restricted stock issued		(109)	$ 79						(30)
Restricted stock issued (in shares)			(2)
Treasury stock activity:
Stock options exchanged			$ (8)						(8)
Share-based employee compensation		41							41
Other comprehensive income (loss) net of income tax (benefit)				(45)					(45)
Other		51	(51)				1		1
Cash dividends declared per common share						(131)			(131)
Net earnings including noncontrolling interests						297	(10)		287
Balances at Aug. 17, 2019	$ 1,918	3,270	$ (16,587)	(537)		20,647	(58)		8,653
Balances (in shares) at Aug. 17, 2019	1,918		1,116
Issuance of common stock:
Stock options exercised			$ 14						14
Restricted stock issued		(3)	$ 1						(2)
Restricted stock issued (in shares)			(1)
Treasury stock activity:
Stock options exchanged			$ (11)						(11)
Stock options exchanged (in shares)			1
Share-based employee compensation		28							28
Other comprehensive income (loss) net of income tax (benefit)				42					42
Other		1	$ (2)				(9)		(10)
Cash dividends declared per common share						(129)			(129)
Net earnings including noncontrolling interests						263	(120)		143
Balances at Nov. 09, 2019	$ 1,918	3,296	$ (16,585)	(495)		20,781	(187)		8,728
Balances (in shares) at Nov. 09, 2019	1,918		1,116
Issuance of common stock:
Stock options exercised			$ 23						23
Stock options exercised (in shares)			(1)
Restricted stock issued		(2)	$ 2
Treasury stock activity:
Treasury stock purchases, at cost			$ (400)						(400)
Treasury stock purchases, at cost (in shares)			14
Stock options exchanged			$ (31)						(31)
Stock options exchanged (in shares)			1
Share-based employee compensation		38							38
Other comprehensive income (loss) net of income tax (benefit)				(145)					(145)
Other		5					(2)		3
Deconsolidation of Lucky's Market							168		168
Cash dividends declared per common share						(130)			(130)
Net earnings including noncontrolling interests						327	(8)		319
Balances at Feb. 01, 2020	$ 1,918	3,337	$ (16,991)	(640)		20,978	(29)		8,573
Balances (in shares) at Feb. 01, 2020	1,918		1,130
Issuance of common stock:
Stock options exercised			$ 57						57
Stock options exercised (in shares)			(4)
Restricted stock issued		(20)	$ 10						(10)
Treasury stock activity:
Treasury stock purchases, at cost			$ (355)						(355)
Treasury stock purchases, at cost (in shares)			12
Stock options exchanged			$ (67)						(67)
Stock options exchanged (in shares)			2
Share-based employee compensation		63							63
Other comprehensive income (loss) net of income tax (benefit)				(18)					(18)
Other		17	$ (17)				1		1
Cash dividends declared per common share						(128)			(128)
Net earnings including noncontrolling interests						1,212			1,212
Balances at May. 23, 2020	$ 1,918	3,397	$ (17,363)	(658)		22,062	(28)		9,328
Balances (in shares) at May. 23, 2020	1,918		1,140
Balances at Feb. 01, 2020	$ 1,918	3,337	$ (16,991)	(640)		20,978	(29)		8,573
Balances (in shares) at Feb. 01, 2020	1,918		1,130
Treasury stock activity:
Other comprehensive income (loss) net of income tax (benefit)				19					19
Net earnings including noncontrolling interests									2,664
Balances at Nov. 07, 2020	$ 1,918	3,420	$ (17,881)	(621)		23,234	(26)		10,044
Balances (in shares) at Nov. 07, 2020	1,918		1,152
Balances at May. 23, 2020	$ 1,918	3,397	$ (17,363)	(658)		22,062	(28)		9,328
Balances (in shares) at May. 23, 2020	1,918		1,140
Issuance of common stock:
Stock options exercised			$ 30						30
Stock options exercised (in shares)			(1)
Restricted stock issued		(109)	$ 57						(52)
Restricted stock issued (in shares)			(3)
Treasury stock activity:
Treasury stock purchases, at cost			$ (212)						(212)
Treasury stock purchases, at cost (in shares)			6
Stock options exchanged			$ (35)						(35)
Stock options exchanged (in shares)			1
Share-based employee compensation		44							44
Other comprehensive income (loss) net of income tax (benefit)				7					7
Other		47	$ (47)
Cash dividends declared per common share						(137)			(137)
Net earnings including noncontrolling interests						819	1		820
Balances at Aug. 15, 2020	$ 1,918	3,379	$ (17,570)	(651)		22,744	(27)		9,793
Balances (in shares) at Aug. 15, 2020	1,918		1,143
Issuance of common stock:
Stock options exercised			$ 11						11
Stock options exercised (in shares)			(1)
Restricted stock issued		(2)	$ 1						(1)
Treasury stock activity:
Treasury stock purchases, at cost			$ (304)						(304)
Treasury stock purchases, at cost (in shares)			9
Stock options exchanged			$ (16)						(16)
Stock options exchanged (in shares)			1
Share-based employee compensation		40							40
Other comprehensive income (loss) net of income tax (benefit)				30					30
Other		3	$ (3)
Cash dividends declared per common share						(141)			(141)
Net earnings including noncontrolling interests						631	1		632
Balances at Nov. 07, 2020	$ 1,918	$ 3,420	$ (17,881)	$ (621)		$ 23,234	$ (26)		$ 10,044
Balances (in shares) at Nov. 07, 2020	1,918		1,152

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY (Parenthetical) - USD ($) $ in Millions	3 Months Ended					4 Months Ended
	Nov. 07, 2020	Aug. 15, 2020	Feb. 01, 2020	Nov. 09, 2019	Aug. 17, 2019	May 23, 2020	May 25, 2019
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY
Other comprehensive income net of income tax	$ 3	$ 2	$ (42)	$ 14	$ (14)	$ (8)	$ (5)
Cash dividends declared per common share (in dollars per share)	$ 0.18	$ 0.18	$ 0.16	$ 0.16	$ 0.16	$ 0.16	$ 0.14

ACCOUNTING POLICIES

ACCOUNTING POLICIES	9 Months Ended
ACCOUNTING POLICIES	Nov. 07, 2020
ACCOUNTING POLICIES
ACCOUNTING POLICIES	1. ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying financial statements include the consolidated accounts of The Kroger Co., its wholly-owned subsidiaries and other consolidated entities. The February 1, 2020 balance sheet was derived from audited financial statements and, due to its summary nature, does not include all disclosures required by generally accepted accounting principles (“GAAP”). Significant intercompany transactions and balances have been eliminated. References to the “Company” in these Consolidated Financial Statements mean the consolidated company. In the opinion of management, the accompanying unaudited Consolidated Financial Statements include adjustments, all of which are of a normal, recurring nature that are necessary for a fair statement of results of operations for such periods but should not be considered as indicative of results for a full year. The financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted, pursuant to SEC regulations. Accordingly, the accompanying Consolidated Financial Statements should be read in conjunction with the financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended February 1, 2020. The unaudited information in the Consolidated Financial Statements for the third quarters and three quarters ended November 7, 2020 and November 9, 2019, includes the results of operations of the Company for the 12 and 40-week periods then ended. Fair Value Measurements Fair value measurements are classified and disclosed in one of the following three categories: 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. The Company records 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 at approximated fair value. Certain other investments and derivatives are recorded as Level 1, 2 or 3 instruments. The equity investment in Ocado is measured at fair value through net earnings. The fair value of all shares owned, which is measured using Level 1 inputs, was as of November 7, 2020 and February 1, 2020, respectively, and is included in “Other assets” in the Company’s Consolidated Balance Sheets. The unrealized gain for this level 1 investment was approximately for the first three quarters of 2020 and 2019, respectively, and is included in “Gain on investments” in the Company’s Consolidated Statements of Operations. The unrealized gain for this level 1 investment was approximately for the third quarter ended 2020 and 2019, respectively, and is included in “Gain on investments” in the Company’s Consolidated Statements of Operations. The Company held other equity investments without a readily determinable fair value. These investments are measured initially at cost and remeasured for observable price changes to fair value through net earnings. The value of these investments, which were measured using Level 3 inputs, was at November 7, 2020 and February 1, 2020, respectively, and is included in “Other assets” in the Company’s Consolidated Balance Sheets. The unrealized gain for these level 3 investments was approximately Refer to Note 2 for the disclosure of debt instrument fair values.

DEBT OBLIGATIONS

DEBT OBLIGATIONS	9 Months Ended
DEBT OBLIGATIONS	Nov. 07, 2020
DEBT OBLIGATIONS
DEBT OBLIGATIONS	2. DEBT OBLIGATIONS Long-term debt consists of: November 7, February 1, 2020 2020 2.20% to 8.00% Senior Notes due through 2049 $ 12,102 $ 11,598 1.77% Commercial paper borrowings — 1,150 Other 527 508 Total debt, excluding obligations under finance leases 12,629 13,256 Less current portion (1,545) (1,926) Total long-term debt, excluding obligations under finance leases $ 11,084 $ 11,330 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 November 7, 2020 and February 1, 2020. At November 7, 2020, the fair value of total debt was $14,942 compared to a carrying value of $12,629 . At February 1, 2020, the fair value of total debt was $14,649 compared to a carrying value of $13,256 . On March 18, 2020, the Company proactively borrowed $1,000 under the revolving credit facility. This was a precautionary measure in order to preserve financial flexibility, reduce reliance on the commercial paper market and maintain liquidity in response to the COVID-19 pandemic. During the first quarter of 2020, the Company fully repaid the $1,000 borrowed under the revolving credit facility and the entire $1,150 in outstanding commercial paper obligations, using cash generated by operations. In anticipation of future debt refinancing, the Company, in the first three quarters of 2020, entered into three forward-starting interest rate swap agreements with a maturity date of January 2021 with an aggregate notional amount totaling $150 . As of the end of the third quarter of 2020, the Company had a total of $500 notional amount of forward-starting interest rate swaps outstanding. The forward-starting interest rate swaps entered into in the first three quarters of 2020 were designated as cash-flow hedges. Additionally, in the first quarter of 2020, the Company issued $500 of senior notes due in fiscal year 2030 bearing an interest rate of 2.20 %. The net proceeds of the issuance were used for general corporate purposes.

BENEFIT PLANS

BENEFIT PLANS	9 Months Ended
BENEFIT PLANS	Nov. 07, 2020
BENEFIT PLANS
BENEFIT PLANS	3. BENEFIT PLANS The following table provides the components of net periodic benefit cost for the company-sponsored defined benefit pension plans and other post-retirement benefit plans for the third quarters of 2020 and 2019. Third Quarter Ended Pension Benefits Other Benefits November 7, November 9, November 7, November 9, 2020 2019 2020 2019 Components of net periodic benefit cost: Service cost $ 3 $ 6 $ 3 $ 2 Interest cost 26 32 1 2 Expected return on plan assets (39) (43) — — Amortization of: Prior service cost — — (3) (3) Actuarial loss (gain) 8 16 (2) (3) Net periodic benefit cost $ (2) $ 11 $ (1) $ (2) The following table provides the components of net periodic benefit cost for the company-sponsored defined benefit pension plans and other post-retirement benefit plans for the first three quarters of 2020 and 2019. Three Quarters Ended Pension Benefits Other Benefits November 7, November 9, November 7, November 9, 2020 2019 2020 2019 Components of net periodic benefit cost: Service cost $ 10 $ 24 $ 6 $ 6 Interest cost 86 105 4 6 Expected return on plan assets (130) (140) — — Amortization of: Prior service cost — — (9) (8) Actuarial loss (gain) 27 47 (6) (8) Net periodic benefit cost $ (7) $ 36 $ (5) $ (4) The Company is not required to make any contributions to its company-sponsored pension plans in 2020, but may make contributions to the extent such contributions are beneficial to the Company. The Company did not make any contributions to its company-sponsored pension plans in the first three quarters of 2020 and 2019. The Company contributed $227 and $209 to employee 401(k) retirement savings accounts in the first three quarters of 2020 and 2019, respectively. The Company also contributes to various multi-employer pension plans based on obligations arising from most of its collective bargaining agreements. These plans provide retirement benefits to participants based on their service to contributing employers. The Company recognizes expense in connection with these plans as contributions are funded. In addition to the recurring multi-employer pension contributions the Company makes in the normal course of business, in the first quarter of 2020, the Company contributed an incremental During the first three quarters of 2019, the Company incurred charges totaling $131, $101 net of tax, due to obligations related to withdrawal liabilities for certain multi-employer pension funds. This included charges in the third quarter of 2019, totaling $45, $35 net of tax, due to obligations related to withdrawal liabilities for certain multi-employer pension funds. The charges were recorded in the OG&A caption in the Consolidated Statements of Operations. Additionally, during the first three quarters of 2019, the Company sold an unused warehouse. The gain on the sale was used to contribute a similar amount into the UFCW Consolidated Pension Plan. During the third quarter of 2019, the Company approved and implemented a plan to reorganize certain portions of its division management structure. This reorganization has increased operational effectiveness and reduced overhead costs while maintaining a high quality customer experience. The Company recorded a charge for severance and related benefits of $80, $61 net of tax, in the third quarter of 2019, which is included in the OG&A caption within the Consolidated Statements of Operations.

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE	9 Months Ended
EARNINGS PER COMMON SHARE	Nov. 07, 2020
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE	4. EARNINGS PER COMMON SHARE Net earnings attributable to The Kroger Co. per basic common share equal 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 equal 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: Third Quarter Ended Third Quarter Ended November 7, 2020 November 9, 2019 Per Per Earnings Shares Share Earnings Shares Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Net earnings attributable to The Kroger Co. per basic common share $ 625 772 $ 0.81 $ 260 802 $ 0.32 Dilutive effect of stock options 8 5 Net earnings attributable to The Kroger Co. per diluted common share $ 625 780 $ 0.80 $ 260 807 $ 0.32 Three Quarters Ended Three Quarters Ended November 7, 2020 November 9, 2019 Per Per Earnings Shares Share Earnings Shares Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Net earnings attributable to The Kroger Co. per basic common share $ 2,631 777 $ 3.39 $ 1,317 800 $ 1.65 Dilutive effect of stock options 8 5 Net earnings attributable to The Kroger Co. per diluted common share $ 2,631 785 $ 3.35 $ 1,317 805 $ 1.64 The Company had combined undistributed and distributed earnings to participating securities totaling $6 and $3 in the third quarter of 2020 and 2019, respectively. For the first three quarters of 2020 and 2019, the Company had combined undistributed and distributed earnings to participating securities of $31 and $15, respectively. The Company had options outstanding for approximately 8 million and 18 million shares during the third quarter of 2020 and 2019, respectively, that were excluded from the computations of net earnings per diluted common share because their inclusion would have had an anti-dilutive effect on net earnings per share. The Company had options outstanding for approximately

RECENTLY ADOPTED ACCOUNTING STA

RECENTLY ADOPTED ACCOUNTING STANDARDS	9 Months Ended
RECENTLY ADOPTED ACCOUNTING STANDARDS	Nov. 07, 2020
RECENTLY ADOPTED ACCOUNTING STANDARDS
RECENTLY ADOPTED ACCOUNTING STANDARDS	5. RECENTLY ADOPTED ACCOUNTING STANDARDS In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract.” Under the new standard, implementation costs related to a cloud computing arrangement will be deferred or expensed as incurred, in accordance with the existing internal-use software guidance for similar costs. The new standard also prescribes the balance sheet, income statement, and cash flow classification of the capitalized implementation costs and related amortization expense. The Company adopted this guidance on a prospective basis in the first quarter of 2020. The implementation costs the Company capitalized during the first three quarters of 2020 are included in “Other assets” in the Company’s Consolidated Balance Sheets. The corresponding cash flows related to these arrangements are included in “Net cash provided by operating activities” in the Company’s Consolidated Statements of Cash Flows.

RECENTLY ISSUED ACCOUNTING STAN

RECENTLY ISSUED ACCOUNTING STANDARDS	9 Months Ended
RECENTLY ISSUED ACCOUNTING STANDARDS	Nov. 07, 2020
RECENTLY ISSUED ACCOUNTING STANDARDS
RECENTLY ISSUED ACCOUNTING STANDARDS	6. RECENTLY ISSUED ACCOUNTING STANDARDS In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” This standard provides optional expedients and exceptions for applying GAAP to certain contract modifications and hedging relationships that reference LIBOR or other reference rates expected to be discontinued. This guidance is effective upon issuance and can be applied through December 31, 2022. The Company may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020. The Company is currently evaluating the effect of this standard on its Consolidated Financial Statements.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Nov. 07, 2020
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	7. 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. 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, as well as product liability cases, 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 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 it is reasonably possible to estimate and where an adverse outcome is probable. Nonetheless, assessing and predicting the outcomes of these matters involve 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.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	9 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	Nov. 07, 2020
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	8. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table represents the changes in AOCI by component for the first three quarters of 2020 and 2019: Pension and Cash Flow Postretirement Hedging Defined Benefit Activities (1) Plans (1) Total (1) Balance at February 2, 2019 $ 6 $ (352) $ (346) Cumulative effect of accounting change (2) (5) (141) (146) OCI before reclassifications (3) (29) — (29) Amounts reclassified out of AOCI (4) 3 23 26 Net current-period OCI (31) (118) (149) Balance at November 9, 2019 $ (25) $ (470) $ (495) Balance at February 1, 2020 $ (42) $ (598) $ (640) OCI before reclassifications (3) (12) 21 9 Amounts reclassified out of AOCI (4) 3 7 10 Net current-period OCI (9) 28 19 Balance at November 7, 2020 $ (51) $ (570) $ (621) (1) All amounts are net of tax. (2) Related to the adoption of ASU 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." (3) Net of tax of ($16 ) for cash flow hedging activities for the first three quarters of 2019. Net of tax of ($9) for cash flow hedging activities for the first three quarters of 2020. (4) Net of tax of $3 for cash flow hedging activities and $8 for pension and postretirement defined benefit plans for the first three quarters of 2019. Net of tax of $1 for cash flow hedging activities and $5 for pension and postretirement defined benefit plans for the first three quarters of 2020. The following table represents the items reclassified out of AOCI and the related tax effects for the third quarters and first three quarters of 2020 and 2019: Third Quarter Ended Three Quarters Ended November 7, November 9, November 7, November 9, 2020 2019 2020 2019 Cash flow hedging activity items Amortization of gains and losses on cash flow hedging activities (1) $ 1 $ 2 $ 4 $ 6 Tax expense — (1) (1) (3) Net of tax 1 1 3 3 Pension and postretirement defined benefit plan items Amortization of amounts included in net periodic pension cost (2) 3 10 12 31 Tax expense (2) (3) (5) (8) Net of tax 1 7 7 23 Total reclassifications, net of tax $ 2 $ 8 $ 10 $ 26 (1) Reclassified from AOCI into interest expense. (2) Reclassified from AOCI into non-service component of company-sponsored pension plan costs. These components are included in the computation of net periodic pension cost (see Note 3 for additional details).

INCOME TAXES

INCOME TAXES	9 Months Ended
INCOME TAXES	Nov. 07, 2020
TAXES BASED ON INCOME
INCOME TAXES	9. INCOME TAXES The effective income tax rate was 24.2% in the third quarter of 2020, compared to 35.6% in the third quarter of 2019. The effective income tax rate was 23.4% for the first three quarters of 2020, compared to 25.0% for the first three quarters of 2019. The effective income tax rate for the third quarter and the first three quarters of 2020 differed from the federal statutory rate due to the effect of state income taxes, partially offset by the utilization of tax credits and deductions and the benefit from share-based payments. The effective income tax rate for the third quarter and the first three quarters of 2019 differed from the federal statutory rate primarily due to the portion of the impairment of Lucky’s Market attributable to the minority interest, which reduces pre-tax income, but does not impact tax expense. The impact of this item on the effective income tax rate is approximately 12% for the third quarter and 2% for the first three quarters of 2019. The difference from the statutory rate is also impacted by the effect of state income taxes, partially offset by the utilization of tax credits and deductions. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was enacted on March 27, 2020, includes measures to assist companies in response to the COVID-19 pandemic. These measures include a provision that allows employers to defer the remittance of the employer portion of the social security tax. The deferred employment tax must be paid over two years, with half of the amount required to be paid by December 31, 2021 and the other half by December 31, 2022. During the first three quarters of 2020, the Company deferred the employer portion of social security tax of $505 which is included in “Other long-term liabilities” in the Company’s Consolidated Balance Sheets. The $505 deferral is included in “Other” within “Changes in operating assets and liabilities net of effects from mergers and disposals of businesses” in the Company’s Consolidated Statements of Cash Flows.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	3 Months Ended
SUBSEQUENT EVENT	Nov. 07, 2020
SUBSEQUENT EVENT.
SUBSEQUENT EVENT	10. SUBSEQUENT EVENT During the fourth quarter of 2020, the Company’s associates ratified an agreement with certain UFCW local unions to withdraw from the UFCW International Union-Industry Pension Fund (“National Fund”). Due to the ratification of the agreement, the Company expects to incur in the fourth quarter of 2020 a withdrawal liability charge of $962, on a pre-tax basis, to fulfill obligations for past service for associates and retirees in the National Fund. The Company also expects to make a $27 contribution to a transition reserve in the new variable annuity pension plan. On an after-tax basis, the withdrawal liability and contribution to the transition reserve total approximately $760. This withdrawal liability will be satisfied by payments to the National Fund over the next three years.

ACCOUNTING POLICIES (Policies)

ACCOUNTING POLICIES (Policies)	9 Months Ended
ACCOUNTING POLICIES (Policies)	Nov. 07, 2020
ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying financial statements include the consolidated accounts of The Kroger Co., its wholly-owned subsidiaries and other consolidated entities. The February 1, 2020 balance sheet was derived from audited financial statements and, due to its summary nature, does not include all disclosures required by generally accepted accounting principles (“GAAP”). Significant intercompany transactions and balances have been eliminated. References to the “Company” in these Consolidated Financial Statements mean the consolidated company. In the opinion of management, the accompanying unaudited Consolidated Financial Statements include adjustments, all of which are of a normal, recurring nature that are necessary for a fair statement of results of operations for such periods but should not be considered as indicative of results for a full year. The financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted, pursuant to SEC regulations. Accordingly, the accompanying Consolidated Financial Statements should be read in conjunction with the financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended February 1, 2020. The unaudited information in the Consolidated Financial Statements for the third quarters and three quarters ended November 7, 2020 and November 9, 2019, includes the results of operations of the Company for the 12 and 40-week periods then ended.
Fair Value Measurements	Fair Value Measurements Fair value measurements are classified and disclosed in one of the following three categories: 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. The Company records 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 at approximated fair value. Certain other investments and derivatives are recorded as Level 1, 2 or 3 instruments. The equity investment in Ocado is measured at fair value through net earnings. The fair value of all shares owned, which is measured using Level 1 inputs, was as of November 7, 2020 and February 1, 2020, respectively, and is included in “Other assets” in the Company’s Consolidated Balance Sheets. The unrealized gain for this level 1 investment was approximately for the first three quarters of 2020 and 2019, respectively, and is included in “Gain on investments” in the Company’s Consolidated Statements of Operations. The unrealized gain for this level 1 investment was approximately for the third quarter ended 2020 and 2019, respectively, and is included in “Gain on investments” in the Company’s Consolidated Statements of Operations. The Company held other equity investments without a readily determinable fair value. These investments are measured initially at cost and remeasured for observable price changes to fair value through net earnings. The value of these investments, which were measured using Level 3 inputs, was at November 7, 2020 and February 1, 2020, respectively, and is included in “Other assets” in the Company’s Consolidated Balance Sheets. The unrealized gain for these level 3 investments was approximately Refer to Note 2 for the disclosure of debt instrument fair values.

DEBT OBLIGATIONS (Tables)

DEBT OBLIGATIONS (Tables)	9 Months Ended
DEBT OBLIGATIONS (Tables)	Nov. 07, 2020
DEBT OBLIGATIONS
Schedule of long-term debt	November 7, February 1, 2020 2020 2.20% to 8.00% Senior Notes due through 2049 $ 12,102 $ 11,598 1.77% Commercial paper borrowings — 1,150 Other 527 508 Total debt, excluding obligations under finance leases 12,629 13,256 Less current portion (1,545) (1,926) Total long-term debt, excluding obligations under finance leases $ 11,084 $ 11,330

BENEFIT PLANS (Tables)

BENEFIT PLANS (Tables)	9 Months Ended
BENEFIT PLANS (Tables)	Nov. 07, 2020
BENEFIT PLANS
Schedule of components of net periodic benefit cost	Third Quarter Ended Pension Benefits Other Benefits November 7, November 9, November 7, November 9, 2020 2019 2020 2019 Components of net periodic benefit cost: Service cost $ 3 $ 6 $ 3 $ 2 Interest cost 26 32 1 2 Expected return on plan assets (39) (43) — — Amortization of: Prior service cost — — (3) (3) Actuarial loss (gain) 8 16 (2) (3) Net periodic benefit cost $ (2) $ 11 $ (1) $ (2) Three Quarters Ended Pension Benefits Other Benefits November 7, November 9, November 7, November 9, 2020 2019 2020 2019 Components of net periodic benefit cost: Service cost $ 10 $ 24 $ 6 $ 6 Interest cost 86 105 4 6 Expected return on plan assets (130) (140) — — Amortization of: Prior service cost — — (9) (8) Actuarial loss (gain) 27 47 (6) (8) Net periodic benefit cost $ (7) $ 36 $ (5) $ (4)

EARNINGS PER COMMON SHARE (Tabl

EARNINGS PER COMMON SHARE (Tables)	9 Months Ended
EARNINGS PER COMMON SHARE (Tables)	Nov. 07, 2020
EARNINGS PER COMMON SHARE
Schedule of earnings per common and diluted shares	Third Quarter Ended Third Quarter Ended November 7, 2020 November 9, 2019 Per Per Earnings Shares Share Earnings Shares Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Net earnings attributable to The Kroger Co. per basic common share $ 625 772 $ 0.81 $ 260 802 $ 0.32 Dilutive effect of stock options 8 5 Net earnings attributable to The Kroger Co. per diluted common share $ 625 780 $ 0.80 $ 260 807 $ 0.32 Three Quarters Ended Three Quarters Ended November 7, 2020 November 9, 2019 Per Per Earnings Shares Share Earnings Shares Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Net earnings attributable to The Kroger Co. per basic common share $ 2,631 777 $ 3.39 $ 1,317 800 $ 1.65 Dilutive effect of stock options 8 5 Net earnings attributable to The Kroger Co. per diluted common share $ 2,631 785 $ 3.35 $ 1,317 805 $ 1.64

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	9 Months Ended
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)	Nov. 07, 2020
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).
Schedule of changes in AOCI by component	Pension and Cash Flow Postretirement Hedging Defined Benefit Activities (1) Plans (1) Total (1) Balance at February 2, 2019 $ 6 $ (352) $ (346) Cumulative effect of accounting change (2) (5) (141) (146) OCI before reclassifications (3) (29) — (29) Amounts reclassified out of AOCI (4) 3 23 26 Net current-period OCI (31) (118) (149) Balance at November 9, 2019 $ (25) $ (470) $ (495) Balance at February 1, 2020 $ (42) $ (598) $ (640) OCI before reclassifications (3) (12) 21 9 Amounts reclassified out of AOCI (4) 3 7 10 Net current-period OCI (9) 28 19 Balance at November 7, 2020 $ (51) $ (570) $ (621) (1) All amounts are net of tax. (2) Related to the adoption of ASU 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." (3) Net of tax of ($16 ) for cash flow hedging activities for the first three quarters of 2019. Net of tax of ($9) for cash flow hedging activities for the first three quarters of 2020. (4) Net of tax of $3 for cash flow hedging activities and $8 for pension and postretirement defined benefit plans for the first three quarters of 2019. Net of tax of $1 for cash flow hedging activities and $5 for pension and postretirement defined benefit plans for the first three quarters of 2020.
Schedule of items reclassified out of AOCI and the related tax effects	Third Quarter Ended Three Quarters Ended November 7, November 9, November 7, November 9, 2020 2019 2020 2019 Cash flow hedging activity items Amortization of gains and losses on cash flow hedging activities (1) $ 1 $ 2 $ 4 $ 6 Tax expense — (1) (1) (3) Net of tax 1 1 3 3 Pension and postretirement defined benefit plan items Amortization of amounts included in net periodic pension cost (2) 3 10 12 31 Tax expense (2) (3) (5) (8) Net of tax 1 7 7 23 Total reclassifications, net of tax $ 2 $ 8 $ 10 $ 26 (1) Reclassified from AOCI into interest expense. (2) Reclassified from AOCI into non-service component of company-sponsored pension plan costs. These components are included in the computation of net periodic pension cost (see Note 3 for additional details).

ACCOUNTING POLICIES - DESCRIPTI

ACCOUNTING POLICIES - DESCRIPTION OF BUSINESS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 07, 2020	Nov. 09, 2019	Nov. 07, 2020	Nov. 09, 2019	Feb. 01, 2020
Fiscal Year
Length of fiscal period	84 days	84 days	280 days	280 days
FAIR VALUE MEASUREMENTS
Unrealized gain on equity securities	$ 162	$ 106	$ 952	$ 166
Level 1
FAIR VALUE MEASUREMENTS
Unrealized gain on equity securities	162	$ 106	879	$ 166
Level 3
FAIR VALUE MEASUREMENTS
Unrealized gain on equity securities			73
Other Assets \| Level 1
FAIR VALUE MEASUREMENTS
Fair value of equity securities	1,655		1,655		$ 776
Other Assets \| Level 3
FAIR VALUE MEASUREMENTS
Other equity investments of fair value	$ 145		$ 145		$ 41

DEBT OBLIGATIONS (Details)

DEBT OBLIGATIONS (Details) $ in Millions	4 Months Ended
DEBT OBLIGATIONS (Details) $ in Millions	May 23, 2020USD ($)	Nov. 07, 2020USD ($)DerivativeInstrument	Mar. 18, 2020USD ($)	Feb. 01, 2020USD ($)
Debt
Total debt, excluding capital leases and financing obligations		$ 12,629		$ 13,256
Less current portion		(1,545)		(1,926)
Total long-term debt, excluding capital leases and financing obligations		11,084		11,330
Fair value of total debt		14,942		14,649
Forward starting Interest Rate Swaps
Debt
Notional amount		$ 500
Forward Starting Interest Rate Swap With Maturity Dates of January 2021 \| Cash flow hedges
Debt
Number of interest-rate swaps \| DerivativeInstrument		3
Notional amount		$ 150
Senior Notes due through 2049
Debt
Total debt, excluding capital leases and financing obligations		$ 12,102		11,598
Senior Notes due through 2049 \| Minimum
Debt
Interest rate (as a percent)		2.20%
Senior Notes due through 2049 \| Maximum
Debt
Interest rate (as a percent)		8.00%
Commercial paper borrowings
Debt
Total debt, excluding capital leases and financing obligations				$ 1,150
Interest rate (as a percent)				1.77%
Repayment of debt	$ 1,150
Other
Debt
Total debt, excluding capital leases and financing obligations		$ 527		$ 508
Senior notes due in fiscal year 2030
Debt
Debt issued	$ 500
Interest rate (as a percent)	2.20%
Credit Agreement
Debt
Debt issued			$ 1,000
Repayment of debt	$ 1,000

BENEFIT PLANS - COMPONENTS OF N

BENEFIT PLANS - COMPONENTS OF NET PERIODIC BENEFIT COSTS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 07, 2020	Nov. 09, 2019	Nov. 07, 2020	Nov. 09, 2019
Pension Benefits
Components of net periodic benefit cost:
Service cost	$ 3	$ 6	$ 10	$ 24
Interest cost	26	32	86	105
Expected return on plan assets	(39)	(43)	(130)	(140)
Amortization of:
Actuarial loss (gain)	8	16	27	47
Net periodic benefit cost	(2)	11	(7)	36
Contributions into Fund			0	0
Other Benefits
Components of net periodic benefit cost:
Service cost	3	2	6	6
Interest cost	1	2	4	6
Amortization of:
Prior service cost	(3)	(3)	(9)	(8)
Actuarial loss (gain)	(2)	(3)	(6)	(8)
Net periodic benefit cost	$ (1)	$ (2)	$ (5)	$ (4)

BENEFIT PLANS - DEFINED CONTRIB

BENEFIT PLANS - DEFINED CONTRIBUTION PLAN INFORMATION (Details) - USD ($) $ in Millions	9 Months Ended
	Nov. 07, 2020	Nov. 09, 2019
BENEFIT PLANS
Contribution to 401(k) retirement savings accounts	$ 227	$ 209

BENEFIT PLANS - MULTI EMPLOYER

BENEFIT PLANS - MULTI EMPLOYER PLAN (Details) - Pension Benefits - USD ($) $ in Millions	3 Months Ended	4 Months Ended	9 Months Ended
	Nov. 09, 2019	May 23, 2020	Nov. 09, 2019
Multiemployer Plans
Incremental contributions (before-tax)		$ 236
Incremental contributions (after-tax)		$ 180
Charge (before-tax) related to withdrawal liabilities for multi-employer pension plan funds	$ 45		$ 131
Charge (after-tax) related to withdrawal liabilities for multi-employer pension plan funds	$ 35		$ 101

BENEFIT PLANS - RESTRUCTURING C

BENEFIT PLANS - RESTRUCTURING COSTS (Details) $ in Millions	3 Months Ended
BENEFIT PLANS - RESTRUCTURING COSTS (Details) $ in Millions	Nov. 09, 2019USD ($)
BENEFIT PLANS
Severance and related benefits	$ 80
Severance and related benefits, net of tax	$ 61

EARNINGS PER COMMON SHARE (Deta

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Nov. 07, 2020	Nov. 09, 2019	Nov. 07, 2020	Nov. 09, 2019
EARNINGS PER COMMON SHARE
Net earnings numerator (basic)	$ 625	$ 260	$ 2,631	$ 1,317
Net earnings numerator (diluted)	$ 625	$ 260	$ 2,631	$ 1,317
Average number of common shares used in basic calculation	772	802	777	800
Net earnings attributable to The Kroger Co. per basic common share	$ 0.81	$ 0.32	$ 3.39	$ 1.65
Dilutive effect of stock options (in shares)	8	5	8	5
Average number of common shares used in diluted calculation	780	807	785	805
Net earnings attributable to The Kroger Co. per diluted common share	$ 0.80	$ 0.32	$ 3.35	$ 1.64
Undistributed and distributed earnings to participating securities	$ 6	$ 3	$ 31	$ 15
Shares excluded from the earnings per share calculation due to anti-dilutive effect on earnings per share	8	18	9	24

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - CHANGES IN AOCI BY COMPONENT (Details) - USD ($) $ in Millions		3 Months Ended					4 Months Ended		9 Months Ended
		Nov. 07, 2020	Aug. 15, 2020	Feb. 01, 2020	Nov. 09, 2019	Aug. 17, 2019	May 23, 2020	May 25, 2019	Nov. 07, 2020	Nov. 09, 2019
Accumulated other comprehensive income (loss)
Balance at the beginning of the period							$ 8,602		$ 8,602
Cumulative effect of accounting change	[1]									$ (146)
Amounts reclassified out of AOCI		$ 2			$ 8				10	26
Total other comprehensive income (loss)		30	$ 7	$ (145)	42	$ (45)	(18)	$ (146)	19	(149)
Balance at the end of the period		10,070		8,602					10,070
Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss)
Balance at the beginning of the period				(495)			(640)	(346)	(640)	(346)
Cumulative effect of accounting change										(146)
OCI before reclassifications									9	(29)
Amounts reclassified out of AOCI									10	26
Total other comprehensive income (loss)		30	$ 7	(145)	42	$ (45)	(18)	(146)	19	(149)
Balance at the end of the period		(621)		(640)	(495)				(621)	(495)
Cash Flow Hedging Activities
Accumulated other comprehensive income (loss)
Balance at the beginning of the period				(25)			(42)	6	(42)	6
Cumulative effect of accounting change										(5)
OCI before reclassifications									(12)	(29)
Amounts reclassified out of AOCI									3	3
Total other comprehensive income (loss)									(9)	(31)
Balance at the end of the period		(51)		(42)	(25)				(51)	(25)
OCI before reclassifications, tax									(9)	(16)
Amounts reclassified out of AOCI, tax									1	3
Pension and Postretirement Defined Benefit Plans
Accumulated other comprehensive income (loss)
Balance at the beginning of the period				(470)			$ (598)	$ (352)	(598)	(352)
Cumulative effect of accounting change										(141)
OCI before reclassifications									21
Amounts reclassified out of AOCI		1			7				7	23
Total other comprehensive income (loss)									28	(118)
Balance at the end of the period		(570)		$ (598)	(470)				(570)	(470)
Amounts reclassified out of AOCI, tax		$ 2			$ 3				$ 5	$ 8

[1]	Related to the adoption of Accounting Standards Update (“ASU”) 2018-02, "Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income."

ACCUMULATED OTHER COMPREHENSI_4

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - ITEMS RECLASSIFIED OUT OF AOCI (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 07, 2020	Nov. 09, 2019	Nov. 07, 2020	Nov. 09, 2019
Reclassification out of AOCI and the related tax effects
Amortization of gains and losses on cash flow hedging activities	$ 129	$ 137	$ 438	$ 463
Tax expense	202	79	816	398
Net of tax	(631)	(263)	(2,662)	(1,332)
Total reclassifications, net of tax	2	8	10	26
Cash Flow Hedging Activities
Reclassification out of AOCI and the related tax effects
Tax expense			(1)	(3)
Total reclassifications, net of tax			3	3
Pension and Postretirement Defined Benefit Plans
Reclassification out of AOCI and the related tax effects
Amortization of amounts included in net periodic pension expense	3	10	12	31
Tax expense	(2)	(3)	(5)	(8)
Total reclassifications, net of tax	1	7	7	23
Reclassification out of AOCI \| Cash Flow Hedging Activities
Reclassification out of AOCI and the related tax effects
Amortization of gains and losses on cash flow hedging activities	1	2	4	6
Tax expense		(1)	(1)	(3)
Net of tax	$ 1	$ 1	$ 3	$ 3

INCOME TAXES - EFFECTIVE INCOME

INCOME TAXES - EFFECTIVE INCOME TAX RATE (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 07, 2020	Nov. 09, 2019	Nov. 07, 2020	Nov. 09, 2019
Effective income tax rate (as a percent)	24.20%	35.60%	23.40%	25.00%
Effective income tax rate due to portion of the impairment of Lucky's Market		12.00%		2.00%
Deferred social security tax payment period			two years
Other long-term liabilities
Deferred payment of social security taxes	$ 505		$ 505

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) - Subsequent event - Forecast $ in Millions	3 Months Ended
	Jan. 30, 2021USD ($)
SUBSEQUENT EVENTS
Total withdrawal liability and contribution to transition reserve, after-tax	$ 760
Period of installment payments for the withdrawal liability to be satisfied	3 years
United Food and Commercial Workers International Union (UFCW)
SUBSEQUENT EVENTS
Charge (before-tax) related to withdrawal liabilities for multi-employer pension plan funds	$ 962
New Variable Annuity Pension Plan
SUBSEQUENT EVENTS
Contribution to transition reserve	$ 27