QUARTERLY DATA (UNAUDITED)

12 Months Ended

Feb. 01, 2020

QUARTERLY DATA (UNAUDITED)

QUARTERLY DATA (UNAUDITED)

20. QUARTERLY DATA (UNAUDITED)

The two tables that follow reflect the unaudited results of operations for 2019 and 2018.

	Quarter
	First		Second		Third		Fourth		Total Year
2019	(16 Weeks)			(12 Weeks)		(12 Weeks)		(12 Weeks)		(52 Weeks)
Sales	$	37,251	$	28,168	$	27,974	$	28,893	$	122,286
Operating Expenses
Merchandise costs, including advertising, warehousing, and transportation, excluding items shown separately below		28,983		22,007		21,798		22,507		95,294
Operating, general and administrative		6,314		4,811		5,097		4,985		21,208
Rent		274		200		201		209		884
Depreciation and amortization		779		591		624		655		2,649
Operating profit		901		559		254		537		2,251
Other income (expense)
Interest expense		(197)		(130)		(137)		(140)		(603)
Non-service component of company sponsored pension plan costs		3		(4)		(1)		2		—
Mark to market gain (loss) on Ocado securities		106		(45)		106		(9)		157
Gain on sale of business		176		—		—		—		176
Net earnings before income tax expense		989		380		222		390		1,981
Income tax expense		226		93		79		71		469
Net earnings including noncontrolling interests		763		287		143		319		1,512
Net loss attributable to noncontrolling interests		(9)		(10)		(120)		(8)		(147)
Net earnings attributable to The Kroger Co.	$	772	$	297	$	263	$	327	$	1,659
Net earnings attributable to The Kroger Co. per basic common share	$	0.96	$	0.37	$	0.32	$	0.40	$	2.05
Average number of shares used in basic calculation		798		800		802		797		799
Net earnings attributable to The Kroger Co. per diluted common share	$	0.95	$	0.37	$	0.32	$	0.40	$	2.04
Average number of shares used in diluted calculation		805		805		807		804		805
Dividends declared per common share	$	0.14	$	0.16	$	0.16	$	0.16	$	0.62

Annual amounts may not sum due to rounding.

Net earnings for the first quarter of 2019 include charges to OG&A expenses of $59, $44 net of tax, for obligations related to withdrawal liabilities for certain local unions of the Central States multi-employer pension fund and a reduction to OG&A of $24, $18 net of tax, for the revaluation of Home Chef contingent consideration. Gains in other income of $106, $80 net of tax, related to the sale of Turkey Hill Dairy; $70, $52 net of tax, related to the sale of You Technology; and $106, $80 net of tax, for the mark to market gain on Ocado Group plc (“Ocado”) securities.

Net earnings for the second quarter of 2019 include charges to OG&A of $27, $22 net of tax, for obligations related to withdrawal liabilities for a certain multi-employer pension fund and $2, $2 net of tax, for the revaluation of Home Chef contingent consideration. A charge in other income (expense) of $45, $36 net of tax, for the mark to market loss on Ocado securities.

Net earnings for the third quarter of 2019 include a charge to OG&A of $45, $35 net of tax, for obligations related to withdrawal liabilities for a certain multi-employer pension fund; $80, $61 net of tax, for a severance charge and related benefits; $238 including $131 attributable to the Kroger Co., $100 net of tax, for impairment of Lucky’s Market; and $4, $3 net of tax, for the revaluation of Home Chef contingent consideration. A gain in other income of $106, $81 net of tax, for the mark to market gain on Ocado securities.

Net earnings for the fourth quarter of 2019 include charges to OG&A of $4, $3 net of tax, for obligations related to withdrawal liabilities for certain multi-employer pension funds; $174, $125 net of tax, for deconsolidation and impairment of Lucky’s Market; $52, $37 net of tax, for transformation costs, primarily including 35 planned store closures; and a reduction to OG&A of $51, $36 net of tax, for the revaluation of Home Chef contingent consideration. Loss in other income (expense) of $9, $6 net of tax, for the mark to market loss on Ocado securities.

	Quarter
	First		Second		Third		Fourth		Total Year
2018	(16 Weeks)		(12 Weeks)		(12 Weeks)		(12 Weeks)		(52 Weeks)
Sales	$	37,722	$	28,014	$	27,831	$	28,286	$	121,852
Operating Expenses
Merchandise costs, including advertising, warehousing, and transportation, excluding items shown separately below		29,419		21,976		21,753		21,955		95,103
Operating, general and administrative		6,257		4,711		4,661		5,155		20,786
Rent		276		204		200		204		884
Depreciation and amortization		741		574		570		581		2,465
Operating profit		1,029		549		647		391		2,614
Other income (expense)
Interest expense		(192)		(144)		(142)		(142)		(620)
Non-service component of company sponsored pension plan costs		(10)		(4)		(6)		(7)		(26)
Mark to market gain (loss) on Ocado securities		36		216		(100)		75		228
Gain on sale of business		1,771		11		—		—		1,782
Net earnings before income tax expense		2,634		628		399		317		3,978
Income tax expense		616		127		91		66		900
Net earnings including noncontrolling interests		2,018		501		308		251		3,078
Net loss attributable to noncontrolling interests		(8)		(7)		(9)		(8)		(32)
Net earnings attributable to The Kroger Co.	$	2,026	$	508	$	317	$	259	$	3,110
Net earnings attributable to The Kroger Co. per basic common share	$	2.39	$	0.63	$	0.39	$	0.32	$	3.80
Average number of shares used in basic calculation		839		797		797		798		810
Net earnings attributable to The Kroger Co. per diluted common share	$	2.37	$	0.62	$	0.39	$	0.32	$	3.76
Average number of shares used in diluted calculation		846		805		807		806		818
Dividends declared per common share	$	0.125	$	0.140	$	0.140	$	0.140	$	0.545

Annual amounts may not sum due to rounding.

Net earnings for the first quarter of 2018 include a reduction to OG&A expenses of $13, $10 net of tax, for adjustments to obligations related to certain local unions withdrawing from the Central States multi-employer pension fund, a reduction to depreciation and amortization expenses of $14, $11 net of tax, related to held for sale assets, gains in other income (expense) of $1,771, $1,352 net of tax, related to the sale of the convenience store business unit and $36, $27 net of tax, for the mark to market gain on Ocado securities.

Net earnings for the second quarter of 2018 include gains in other income (expense) of $11, $8 net of tax, related to the sale of the convenience store business unit and $216, $164 net of tax, for the mark to market gain on Ocado securities.

Net earnings for the third quarter of 2018 include a loss in other income (expense) of $100, $77 net of tax, for the mark to market loss on Ocado securities.

Net earnings for the fourth quarter of 2018 include charges to OG&A expenses of $168, $131 net of tax, for obligations related to certain local unions withdrawing from the Central States multi-employer pension fund, $33, $26 net of tax, for the revaluation of contingent consideration and $42, $33 net of tax, for an impairment of financial instrument, a gain in other income (expense) of $75, $59 net of tax, for the mark to market gain on Ocado securities.