HELD FOR SALE

4 Months Ended

May 25, 2024

HELD FOR SALE

HELD FOR SALE

9. HELD FOR SALE

During the first quarter of 2024, the Company announced a definitive agreement for the sale of its Kroger Specialty Pharmacy business, subject to customary closing conditions and any regulatory reviews, to CarelonRx, a subsidiary of Elevance Health, for approximately $485, which is expected to complete in the second half of 2024.

At May 25, 2024, the assets and liabilities related to the Company’s Kroger Specialty Pharmacy business were classified as held for sale in the Consolidated Balance Sheet. The business classified as held for sale will not be reported as discontinued operations, as the disposition does not represent a strategic shift that will have a major effect on the Company’s operations and financial results.

The “Cash and temporary cash investments” balance classified as held for sale is reflected within “Cash and temporary cash investments” in the Company’s Consolidated Statements of Cash Flows.

The following table presents information related to the major classes of assets and liabilities that were classified as assets and liabilities held for sale in the Consolidated Balance Sheet as of May 25, 2024:

	May 25,
	2024
Assets held for sale:
Cash and temporary cash investments	$	17
Receivables		149
FIFO inventory		145
Prepaid and other current assets		4
Property, plant and equipment, net		13
Operating lease assets		6
Goodwill		243
Other assets		30
Total assets held for sale	$	607
Liabilities held for sale:
Accounts payable	$	189
Accrued salaries and wages		6
Current portion of operating lease liabilities		2
Other current liabilities		40
Noncurrent operating lease liabilities		4
Other long-term liabilities		1
Total liabilities held for sale	$	242