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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.