KROGER CO, 10-Q filed on 12/13/2024
Quarterly Report
v3.24.3
Document and Entity Information - $ / shares
9 Months Ended
Nov. 09, 2024
Dec. 10, 2024
Document and Entity Information    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Nov. 09, 2024  
Document Transition Report false  
Securities Act 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   723,606,130
Entity Listing, Par Value Per Share $ 1  
Entity Central Index Key 0000056873  
Current Fiscal Year End Date --02-01  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q3  
Amendment Flag false  
v3.24.3
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Millions, $ in Millions
3 Months Ended 9 Months Ended
Nov. 09, 2024
Nov. 04, 2023
Nov. 09, 2024
Nov. 04, 2023
CONSOLIDATED STATEMENTS OF OPERATIONS        
Sales $ 33,634 $ 33,957 $ 112,815 $ 112,975
Operating expenses        
Merchandise costs, including advertising, warehousing, and transportation, excluding items shown separately below 25,948 26,477 87,332 88,032
Operating, general and administrative 5,898 5,646 19,388 19,974
Rent 203 201 672 671
Depreciation and amortization 757 721 2,486 2,396
Operating profit 828 912 2,937 1,902
Other income (expense)        
Net interest expense (86) (94) (294) (341)
Non-service component of company-sponsored pension plan benefits 3 7 9 24
(Loss) gain on investments (20) 26 (125) 317
Gain on the sale of business 79   79  
Net earnings before income tax expense 804 851 2,606 1,902
Income tax expense 187 204 568 472
Net earnings including noncontrolling interests 617 647 2,038 1,430
Net (loss) income attributable to noncontrolling interests (1) 1 7 2
Net earnings attributable to The Kroger Co. $ 618 $ 646 $ 2,031 $ 1,428
Net earnings attributable to The Kroger Co. per basic common share $ 0.85 $ 0.89 $ 2.79 $ 1.97
Average number of common shares used in basic calculation 723 719 722 718
Net earnings attributable to The Kroger Co. per diluted common share $ 0.84 $ 0.88 $ 2.77 $ 1.95
Average number of common shares used in diluted calculation 728 725 728 725
v3.24.3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Nov. 09, 2024
Nov. 04, 2023
Nov. 09, 2024
Nov. 04, 2023
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME        
Net earnings including noncontrolling interests $ 617 $ 647 $ 2,038 $ 1,430
Other comprehensive income (loss)        
Change in pension and other postretirement defined benefit plans, net of income tax(1) [1] (1) (3) (3) (10)
Unrealized gains and losses on cash flow hedging activities, net of income tax(2) [2] (50) 121 (103) 317
Amortization of unrealized gains and losses on cash flow hedging activities, net of income tax(3) [3] 2 1 6 4
Total other comprehensive (loss) income (49) 119 (100) 311
Comprehensive income 568 766 1,938 1,741
Comprehensive (loss) income attributable to noncontrolling interests (1) 1 7 2
Comprehensive income attributable to The Kroger Co. $ 569 $ 765 $ 1,931 $ 1,739
[1] Amount is net of tax of $(1) for the third quarter of 2023. Amount is net of tax of $(1) for the first three quarters of 2024 and $(3) for the first three quarters of 2023.
[2] Amount is net of tax of $(14) for the third quarter of 2024 and $36 for the third quarter of 2023. Amount is net of tax of $(30) for the first three quarters of 2024 and $96 for the first three quarters of 2023.
[3] Amount is net of tax of $1 for the third quarter of 2023. Amount is net of tax of $1 for the first three quarters of 2024 and $2 for the first three quarters of 2023.
v3.24.3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Nov. 09, 2024
Nov. 04, 2023
Nov. 09, 2024
Nov. 04, 2023
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME        
Change in pension and other postretirement defined benefit plans, income tax   $ (1) $ (1) $ (3)
Unrealized gains and losses on cash flow hedging activities, income tax $ (14) 36 (30) 96
Amortization of unrealized gains and losses on cash flow hedging activities, income tax   $ 1 $ 1 $ 2
v3.24.3
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Nov. 09, 2024
Feb. 03, 2024
Current assets    
Cash and temporary cash investments $ 13,358 $ 1,883
Store deposits in-transit 1,082 1,215
Receivables 2,193 2,136
FIFO inventory 9,960 9,414
LIFO reserve (2,375) (2,309)
Prepaid and other current assets 807 609
Total current assets 25,025 12,948
Property, plant and equipment, net 25,698 25,230
Operating lease assets 6,829 6,692
Intangibles, net 865 899
Goodwill 2,674 2,916
Other assets 1,327 1,820
Total Assets 62,418 50,505
Current liabilities    
Current portion of long-term debt including obligations under finance leases 187 198
Current portion of operating lease liabilities 667 670
Accounts payable 10,521 10,381
Accrued salaries and wages 1,185 1,323
Other current liabilities 3,714 3,486
Total current liabilities 16,274 16,058
Long-term debt including obligations under finance leases 22,414 12,028
Noncurrent operating lease liabilities 6,512 6,351
Deferred income taxes 1,556 1,579
Pension and postretirement benefit obligations 371 385
Other long-term liabilities 2,397 2,503
Total Liabilities 49,524 38,904
Commitments and contingencies see Note 5
SHAREOWNERS' 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 2024 and 2023 1,918 1,918
Additional paid-in capital 4,038 3,922
Accumulated other comprehensive loss (589) (489)
Accumulated earnings 28,299 26,946
Common shares in treasury, at cost, 1,194 shares in 2024 and 1,198 shares in 2023 (20,766) (20,682)
Total Shareowners' Equity - The Kroger Co. 12,900 11,615
Noncontrolling interests (6) (14)
Total Equity 12,894 11,601
Total Liabilities and Equity $ 62,418 $ 50,505
v3.24.3
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
shares in Millions
Nov. 09, 2024
Feb. 03, 2024
CONSOLIDATED BALANCE SHEETS    
Preferred shares, par 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 1,194 1,198
v3.24.3
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
9 Months Ended
Nov. 09, 2024
Nov. 04, 2023
Cash Flows from Operating Activities:    
Net earnings including noncontrolling interests $ 2,038 $ 1,430
Adjustments to reconcile net earnings including noncontrolling interests to net cash provided by operating activities:    
Depreciation and amortization 2,486 2,396
Operating lease asset amortization 465 472
LIFO charge 66 131
Share-based employee compensation 133 124
Deferred income taxes 9 (261)
Gain on the sale of assets (8) (45)
Gain on the sale of business (79)  
Loss (gain) on investments 125 (317)
Other 29 120
Changes in operating assets and liabilities:    
Store deposits in-transit 134 (70)
Receivables (238) 133
Inventories (662) (502)
Prepaid and other current assets (204) 45
Accounts payable 578 991
Accrued expenses 77 (387)
Income taxes receivable and payable 28 148
Operating lease liabilities (451) (539)
Other (136) 999
Net cash provided by operating activities 4,390 4,868
Cash Flows from Investing Activities:    
Payments for property and equipment, including payments for lease buyouts (3,133) (2,907)
Proceeds from sale of assets 310 94
Net proceeds from sale of business 464  
Other (43) 68
Net cash used by investing activities (2,402) (2,745)
Cash Flows from Financing Activities:    
Proceeds from issuance of long-term debt 10,499  
Payments on long-term debt including obligations under finance leases (145) (755)
Dividends paid (651) (586)
Financing fees paid (116)  
Proceeds from issuance of capital stock 106 42
Treasury stock purchases (125) (54)
Other (81) (60)
Net cash provided (used) by financing activities 9,487 (1,413)
Net increase in cash and temporary cash investments 11,475 710
Cash and temporary cash investments:    
Beginning of year 1,883 1,015
End of period 13,358 1,725
Reconciliation of capital investments:    
Payments for property and equipment, including payments for lease buyouts (3,133) (2,907)
Payments for lease buyouts 46  
Changes in construction-in-progress payables 271 421
Total capital investments, excluding lease buyouts (2,816) (2,486)
Disclosure of cash flow information:    
Cash paid during the year for net interest 150 380
Cash paid during the year for income taxes $ 526 $ 579
v3.24.3
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 Earnings
Noncontrolling Interest
Total
Balances at Jan. 28, 2023 $ 1,918 $ 3,805 $ (20,650) $ (632) $ 25,601 $ (28) $ 10,014
Balances (in shares) at Jan. 28, 2023 1,918            
Balances (in shares) at Jan. 28, 2023     1,202        
Issuance of common stock:              
Stock options exercised     $ 23       23
Stock options exercised (in shares)     (1)        
Restricted stock issued   (72) $ 30       (42)
Restricted stock issued (in shares)     (1)        
Treasury stock activity:              
Stock options exchanged     $ (29)       (29)
Share-based employee compensation   49         49
Other comprehensive income net of tax       88     88
Other   44 (44)     3 3
Cash dividends declared per common share         (188)   (188)
Net earnings (loss) including noncontrolling interests         962   962
Balances at May. 20, 2023 $ 1,918 3,826 $ (20,670) (544) 26,375 (25) 10,880
Balances (in shares) at May. 20, 2023 1,918            
Balances (in shares) at May. 20, 2023     1,200        
Balances at Jan. 28, 2023 $ 1,918 3,805 $ (20,650) (632) 25,601 (28) 10,014
Balances (in shares) at Jan. 28, 2023 1,918            
Balances (in shares) at Jan. 28, 2023     1,202        
Treasury stock activity:              
Other comprehensive income net of tax       311     311
Net earnings (loss) including noncontrolling interests             1,430
Balances at Nov. 04, 2023 $ 1,918 3,871 $ (20,680) (321) 26,421 (18) 11,191
Balances (in shares) at Nov. 04, 2023 1,918            
Balances (in shares) at Nov. 04, 2023     1,198        
Balances at May. 20, 2023 $ 1,918 3,826 $ (20,670) (544) 26,375 (25) 10,880
Balances (in shares) at May. 20, 2023 1,918            
Balances (in shares) at May. 20, 2023     1,200        
Issuance of common stock:              
Stock options exercised     $ 13       13
Stock options exercised (in shares)     (1)        
Restricted stock issued   (85) $ 55       (30)
Restricted stock issued (in shares)     (1)        
Treasury stock activity:              
Stock options exchanged     $ (18)       (18)
Share-based employee compensation   43         43
Other comprehensive income net of tax       104     104
Other   56 (56)     2 2
Cash dividends declared per common share         (211)   (211)
Net earnings (loss) including noncontrolling interests         (180) 1 (179)
Balances at Aug. 12, 2023 $ 1,918 3,840 $ (20,676) (440) 25,984 (22) 10,604
Balances (in shares) at Aug. 12, 2023 1,918            
Balances (in shares) at Aug. 12, 2023     1,198        
Issuance of common stock:              
Stock options exercised     $ 6       6
Restricted stock issued   (4)         (4)
Treasury stock activity:              
Stock options exchanged     (7)       (7)
Share-based employee compensation   32         32
Other comprehensive income net of tax       119     119
Other   3 (3)     3 3
Cash dividends declared per common share         (209)   (209)
Net earnings (loss) including noncontrolling interests         646 1 647
Balances at Nov. 04, 2023 $ 1,918 3,871 $ (20,680) (321) 26,421 (18) 11,191
Balances (in shares) at Nov. 04, 2023 1,918            
Balances (in shares) at Nov. 04, 2023     1,198        
Issuance of common stock:              
Stock options exercised     $ 8       8
Restricted stock issued   (2) $ 3       1
Restricted stock issued (in shares)     (1)        
Treasury stock activity:              
Stock options exchanged     $ (8)       (8)
Stock options exchanged (in shares)     1        
Share-based employee compensation   48         48
Other comprehensive income net of tax       (168)     (168)
Other   5 $ (5)     1 1
Cash dividends declared per common share         (211)   (211)
Net earnings (loss) including noncontrolling interests         736 3 739
Balances at Feb. 03, 2024 $ 1,918 3,922 $ (20,682) (489) 26,946 (14) $ 11,601
Balances (in shares) at Feb. 03, 2024 1,918           1,918
Balances (in shares) at Feb. 03, 2024     1,198       1,198
Issuance of common stock:              
Stock options exercised     $ 85       $ 85
Stock options exercised (in shares)     (3)        
Restricted stock issued   (76) $ 33       (43)
Restricted stock issued (in shares)     (1)        
Treasury stock activity:              
Stock options exchanged     $ (103)       (103)
Stock options exchanged (in shares)     2        
Share-based employee compensation   57         57
Other comprehensive income net of tax       70     70
Other   81 $ (81)        
Cash dividends declared per common share         (210)   (210)
Net earnings (loss) including noncontrolling interests         947 9 956
Balances at May. 25, 2024 $ 1,918 3,984 $ (20,748) (419) 27,683 (5) 12,413
Balances (in shares) at May. 25, 2024 1,918            
Balances (in shares) at May. 25, 2024     1,196        
Balances at Feb. 03, 2024 $ 1,918 3,922 $ (20,682) (489) 26,946 (14) $ 11,601
Balances (in shares) at Feb. 03, 2024 1,918           1,918
Balances (in shares) at Feb. 03, 2024     1,198       1,198
Treasury stock activity:              
Other comprehensive income net of tax       (100)     $ (100)
Net earnings (loss) including noncontrolling interests             2,038
Balances at Nov. 09, 2024 $ 1,918 4,038 $ (20,766) (589) 28,299 (6) $ 12,894
Balances (in shares) at Nov. 09, 2024 1,918           1,918
Balances (in shares) at Nov. 09, 2024     1,194       1,194
Balances at May. 25, 2024 $ 1,918 3,984 $ (20,748) (419) 27,683 (5) $ 12,413
Balances (in shares) at May. 25, 2024 1,918            
Balances (in shares) at May. 25, 2024     1,196        
Issuance of common stock:              
Stock options exercised     $ 8       8
Restricted stock issued   (96) $ 56       (40)
Restricted stock issued (in shares)     (2)        
Treasury stock activity:              
Stock options exchanged     $ (13)       (13)
Share-based employee compensation   32         32
Other comprehensive income net of tax       (121)     (121)
Other   67 (67)        
Cash dividends declared per common share         (232)   (232)
Net earnings (loss) including noncontrolling interests         466 (1) 465
Balances at Aug. 17, 2024 $ 1,918 3,987 $ (20,764) (540) 27,917 (6) 12,512
Balances (in shares) at Aug. 17, 2024 1,918            
Balances (in shares) at Aug. 17, 2024     1,194        
Issuance of common stock:              
Stock options exercised     $ 13       13
Restricted stock issued   (2) 3       1
Treasury stock activity:              
Stock options exchanged     (9)       (9)
Share-based employee compensation   44         44
Other comprehensive income net of tax       (49)     (49)
Other   9 (9)     1 1
Cash dividends declared per common share         (236)   (236)
Net earnings (loss) including noncontrolling interests         618 (1) 617
Balances at Nov. 09, 2024 $ 1,918 $ 4,038 $ (20,766) $ (589) $ 28,299 $ (6) $ 12,894
Balances (in shares) at Nov. 09, 2024 1,918           1,918
Balances (in shares) at Nov. 09, 2024     1,194       1,194
v3.24.3
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY (Parenthetical) - USD ($)
$ in Millions
3 Months Ended 4 Months Ended
Nov. 09, 2024
Aug. 17, 2024
Feb. 03, 2024
Nov. 04, 2023
Aug. 12, 2023
May 25, 2024
May 20, 2023
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS' EQUITY              
Other comprehensive income, tax $ (14) $ (38) $ (50) $ 36 $ 32 $ 22 $ 26
Cash dividends declared per common share (in dollars per share) $ 0.32 $ 0.32 $ 0.29 $ 0.29 $ 0.29 $ 0.29 $ 0.26
v3.24.3
ACCOUNTING POLICIES
9 Months Ended
Nov. 09, 2024
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 3, 2024 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 3, 2024.

The unaudited information in the Consolidated Financial Statements for the third quarters ended November 9, 2024 and November 4, 2023 includes the results of operations of the Company for the 12 and 40 week periods then ended.

Reclassifications

In the fourth quarter of 2023, the Company retrospectively reclassified certain liabilities from “Other current liabilities” to “Accounts payable” on the Consolidated Balance Sheets to better align the presentation of liabilities associated with its third-party financing arrangements and other current liabilities on the Consolidated Balance Sheets with management’s internal reporting. A similar reclassification was made to the Consolidated Statement of Cash Flows resulting in a change to “Accounts payable” and “Accrued expenses” within “Net cash provided by operating activities” for the quarter ended November 4, 2023. The reclassification did not affect total current liabilities on the Company’s Consolidated Balance Sheet or total operating cash flows on the Consolidated Statement of Cash Flows.

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 fair value of all financial instruments, measured using Level 1 inputs, was $205 and $578 as of November 9, 2024 and February 3, 2024, respectively, and is included in “Other assets” in the Company’s Consolidated Balance Sheets. An unrealized loss for the Company’s Level 1 investments of approximately $20 and $103 for the third quarters of 2024 and 2023, respectively, is included in “(Loss) gain on investments” in the Company’s Consolidated Statements of Operations. An unrealized loss for the Company’s Level 1 investments of approximately $93 and $12 for the first three quarters of 2024 and 2023, respectively, is included in “(Loss) gain on investments” in the Company’s Consolidated Statements of Operations.

In the first quarter of 2024, the Company fully exited its position in a Level 1 equity investment, receiving proceeds totaling approximately $303, resulting in a realized gain of $23, which is included in “(Loss) gain on investments” in the Company’s Consolidated Statements of Operations.

The Company's forward-starting interest rate swaps and treasury lock agreements are considered Level 2 instruments.  The Company values these forward-starting interest rate swaps and treasury locks using observable forward yield curves.  These forward yield curves are classified as Level 2 inputs.

Refer to Note 2 for the disclosure of debt instrument fair values.

Accounts Payable Financing Arrangement

The Company has an agreement with a third party to provide an accounts payable tracking system which facilitates participating suppliers’ ability to finance payment obligations from the Company with designated third-party financial institutions.  Participating suppliers may, at their sole discretion, make offers to finance one or more payment obligations of the Company prior to their scheduled due dates at a discounted price to participating financial institutions. The Company’s obligations to its suppliers, including amounts due and scheduled payment dates, are not affected by suppliers’ decisions to finance amounts under this arrangement. The payment term that the Company has with participating suppliers under these programs is approximately 90 days. 

As of November 9, 2024 and February 3, 2024, the Company had $350 and $325, respectively, in “Accounts payable” in the Company’s Consolidated Balance Sheets associated with financing arrangements.

v3.24.3
DEBT OBLIGATIONS
9 Months Ended
Nov. 09, 2024
DEBT OBLIGATIONS  
DEBT OBLIGATIONS

2.

DEBT OBLIGATIONS

Long-term debt consists of:

November 9,

February 3,

    

2024

    

2024

1.70% to 8.00% Senior Notes due through 2064

$

19,520

$

9,123

Other

 

1,058

 

1,064

Total debt, excluding obligations under finance leases

 

20,578

 

10,187

Less current portion

 

(10)

 

(25)

Total long-term debt, excluding obligations under finance leases

$

20,568

$

10,162

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 9, 2024 and February 3, 2024. At November 9, 2024, the fair value of total debt was $19,731 compared to a carrying value of $20,578. At February 3, 2024, the fair value of total debt was $9,401 compared to a carrying value of $10,187.

In the second quarter of 2024, the Company terminated five forward-starting interest rate swaps with a maturity date of August 1, 2027 and an aggregate notional amount totaling $5,350. These forward-starting interest rate swaps were hedging the variability in future benchmark interest payments attributable to changing interest rates on the forecasted issuance of fixed-rate debt that was issued in the third quarter of 2024.  A notional amount of $2,350 of these forward-starting interest rate swaps was designated as a cash-flow hedge as defined by GAAP.  Accordingly, the unamortized gain of $48, $36 net of tax, has been deferred in accumulated other comprehensive income and will be amortized to earnings as the interest payments are made.  The remainder of the notional amount of $3,000 of the forward-starting interest rate swaps was not designated as a cash-flow hedge. Accordingly, the changes in the fair value of these forward-starting interest rate swaps not designated as cash-flow hedges were recognized through net earnings. In the third quarter of 2023, the Company recognized an unrealized gain of $129 related to these forward-starting interest rate swaps that is included in “(Loss) gain on investments” in the Company’s Consolidated Statements of Operations. During the first three quarters of 2024 and 2023, the Company recognized a realized loss of $55 and an unrealized gain of $329, respectively, related to these forward-starting interest rate swaps that is included in “(Loss) gain on investments” in the Company’s Consolidated Statements of Operations.

In the second quarter of 2024, the Company entered into two 10-year treasury lock agreements with an aggregate notional amount of $2,100 and a weighted-average interest rate of 3.91% and two 30-year treasury lock agreements with an aggregate notional amount of $3,250 and a weighted-average interest rate of 4.11%. These treasury locks were an agreement used to hedge the U.S. Treasury benchmark interest rate associated with future interest payments on the forecasted issuance of fixed-rate debt that was issued in the third quarter of 2024. These treasury locks were designated as cash-flow hedges as defined by GAAP. Accordingly, the changes in fair value of these treasury locks are recorded to accumulated other comprehensive income and reclassified into net earnings when the hedged transaction affects net earnings. In the third quarter of 2024, the Company terminated these treasury lock agreements. The unamortized loss of $56, $43 net of tax, has been deferred in accumulated other comprehensive loss and will be amortized to earnings as the interest payments are made.

On September 13, 2024, the Company entered into an unsecured revolving credit facility (the “Credit Agreement”), with a termination date of September 13, 2029, unless extended as permitted under the Credit Agreement. This Credit Agreement amended the Company’s $2,750 credit facility that would otherwise have terminated on July 6, 2026.  Under the Credit Agreement, the aggregate amount of initial commitments under the revolving credit facility is $2,750, which could have been increased by $2,250 to $5,000 upon the closing date of the proposed merger with Albertsons (such additional commitments, the “Albertsons Closing Date Additional Commitments”). Concurrently with the termination of the Merger Agreement on December 11, 2024, the Albertsons Closing Date Additional Commitments were automatically terminated in accordance with the terms of the Credit Agreement. On and after December 11, 2024, the amount of outstanding commitments under the Credit Agreement is $2,750.

Cash paid for interest expense related to long term debt including obligations under finance leases was $355 and $467 for the three quarters ended November 9, 2024 and November 4, 2023, respectively. Interest income of approximately $147 and $29 for the third quarters of 2024 and 2023, respectively, is included in “Net interest expense” in the Company’s Consolidated Statements of Operations. Interest income of approximately $220 and $87 for the first three quarters of 2024 and 2023, respectively, is included in “Net interest expense” in the Company’s Consolidated Statements of Operations.

For additional information about the Company’s unsecured bridge term loan facility, term loan credit agreement and completed senior notes issuance, see Note 10 and Note 11 to the Consolidated Financial Statements.

v3.24.3
BENEFIT PLANS
9 Months Ended
Nov. 09, 2024
BENEFIT PLANS  
BENEFIT PLANS

3.

BENEFIT PLANS

The following table provides the components of net periodic benefit cost (benefit) for the company-sponsored defined benefit pension plans and other postretirement benefit plans for the third quarters of 2024 and 2023:

Third Quarter Ended

 

Pension Benefits

Other Benefits

 

November 9,

November 4,

November 9,

November 4,

 

    

2024

    

2023

    

2024

    

2023

 

Components of net periodic benefit cost (benefit): 

Service cost 

 

$

2

 

$

4

 

$

1

 

$

1

Interest cost 

 

30

 

29

 

2

 

3

Expected return on plan assets 

 

(34)

 

(35)

 

 

Amortization of: 

Prior service cost 

 

 

 

(1)

 

(3)

Actuarial loss (gain)

 

2

 

2

 

(2)

 

(3)

Net periodic benefit cost (benefit)

 

$

 

$

 

$

 

$

(2)

The following table provides the components of net periodic benefit cost (benefit) for the company-sponsored defined benefit pension plans and other postretirement benefit plans for the first three quarters of 2024 and 2023:

Three Quarters Ended

 

Pension Benefits

Other Benefits

 

November 9,

November 4,

November 9,

November 4,

 

    

2024

    

2023

    

2024

    

2023

 

Components of net periodic benefit cost (benefit): 

Service cost 

 

$

5

 

$

13

 

$

3

 

$

3

Interest cost 

 

101

 

98

 

8

 

6

Expected return on plan assets 

 

(114)

 

(115)

 

 

Amortization of: 

0

0

Prior service cost 

 

 

 

(3)

 

(9)

Actuarial loss (gain)

 

7

 

6

 

(8)

 

(10)

Net periodic benefit cost (benefit)

 

$

(1)

 

$

2

 

$

 

$

(10)

The Company is not required to make any contributions to its company-sponsored pension plans in 2024 but may make contributions to the extent such contributions are beneficial to the Company. The Company did not make any significant contributions to its company-sponsored pension plans in the first three quarters of 2024 or 2023.

The Company contributed $255 and $251 to employee 401(k) retirement savings accounts in the first three quarters of 2024 and 2023, respectively.

v3.24.3
EARNINGS PER COMMON SHARE
9 Months Ended
Nov. 09, 2024
EARNINGS PER COMMON SHARE  
EARNINGS PER COMMON SHARE

4.

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:

Third Quarter Ended

Third Quarter Ended

November 9, 2024

November 4, 2023

 

    

    

    

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

$

613

 

723

$

0.85

$

641

 

719

$

0.89

Dilutive effect of stock options

 

5

 

6

Net earnings attributable to The Kroger Co. per diluted common share

$

613

 

728

$

0.84

$

641

 

725

$

0.88

Three Quarters Ended

Three Quarters Ended

November 9, 2024

November 4, 2023

    

    

    

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

$

2,015

 

722

$

2.79

$

1,416

 

718

$

1.97

Dilutive effect of stock options

 

6

 

7

Net earnings attributable to The Kroger Co. per diluted common share

$

2,015

 

728

$

2.77

$

1,416

 

725

$

1.95

The Company had combined undistributed and distributed earnings to participating securities totaling $5 in both the third quarters of 2024 and 2023. For the first three quarters of 2024 and 2023, the Company had combined undistributed and distributed earnings to participating securities of $16 and $12, respectively.

The Company had options outstanding for approximately 3 million shares during both the third quarters of 2024 and 2023 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 3 million during both the first three quarters of 2024 and 2023 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.

v3.24.3
COMMITMENTS AND CONTINGENCIES
9 Months Ended
Nov. 09, 2024
COMMITMENTS AND CONTINGENCIES  
COMMITMENTS AND CONTINGENCIES

5.

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 personal injury, contract disputes, employment discrimination, wage and hour and other regulatory claims are pending against the Company. Some of these suits purport or have been determined to be class actions and/or seek substantial damages. 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 when 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.

The Company is one of dozens of companies that have been named in various lawsuits alleging that defendants contributed to create a public nuisance through the distribution and dispensing of opioids.

On September 8, 2023, the Company announced that it reached an agreement in principle with plaintiffs to settle the majority of opioid claims that have been or could be brought against Kroger by states in which they operate, subdivisions, and Native American tribes. Along with the execution of certain non-monetary conditions, the Company has agreed to pay up to $1,200 to states and subdivisions and $36 to Native American tribes in funding for abatement efforts, and approximately $177 to cover attorneys’ fees and costs. The exact payment amount will depend on several factors, including the extent to which states take action to foreclose opioid lawsuits by political subdivisions (e.g., by passing laws barring or limiting opioid lawsuits by political subdivisions), and the extent to which additional political subdivisions in participating states file additional opioid lawsuits against the Company. The settlement would allow for the full resolution of all claims on behalf of participating states, subdivisions and Native American tribes and is not an admission of any wrongdoing or liability. Certain opioid-related cases against the Company will remain pending in the multidistrict litigation and in various state courts after the settlement becomes effective, including those brought by non-participating states and subdivisions and private parties such as hospitals and third-party payors. The Company continues to defend these cases.

As a result, the Company concluded that the agreement in principle for the settlement of opioid claims was probable, and for which the related loss was reasonably estimable. Accordingly, in the second quarter of 2023, the Company recognized opioid settlement charges of $1,413, $1,113 net of tax, relating to the nationwide opioid settlement framework. This charge was included in “Operating, general and administrative” in the Company’s Consolidated Statement of Operations.

The agreement described above includes payments of approximately $1,236 and $177, in equal installments over 11 years and 6 years, respectively. As of November 9, 2024 and February 3, 2024, the Company recorded $284 and $1,129 of the estimated settlement liability in “Other current liabilities” and “Other long-term liabilities,” respectively, in the Company’s Consolidated Balance Sheets. In the first quarter of 2024, the Company made its first annual payment for $138 into an escrow account, which is recorded in “Prepaid and other current assets” in the Company’s Consolidated Balance Sheets. This escrow payment is recorded in “Prepaid and other current assets” within “Changes in operating assets and liabilities” in the Company’s Consolidated Statement of Cash Flows for the first three quarters ended November 9, 2024.

In the first three quarters of 2024, certain states and subdivisions confirmed their participation or lack of participation in the agreement described above, which resulted in immaterial changes to the settlement amount and timing of payments. On October 31, 2024, the Company determined that there is sufficient participation in the settlement by states and subdivisions and elected to proceed with the settlement. The settlement with states and subdivisions is currently anticipated to become effective on December 30, 2024, and the settlement with Native American tribes is currently anticipated to become effective on December 31, 2024.

In the first quarter of 2023, the Company recorded a charge of $62 relating to a settlement of opioid litigation claims with the State of West Virginia. The agreed upon settlement framework resolves all opioid lawsuits and claims by the West Virginia Attorney General.

The foregoing settlements are not admissions of wrongdoing or liability by the Company and the Company will continue to vigorously defend against any other claims and lawsuits relating to opioids that the settlements do not resolve, including private plaintiff litigation. The Company continues to believe it has strong legal defenses and appellate arguments in those cases.

Because of the many uncertainties associated with any settlement arrangement or other resolution of opioid-related litigation matters, and because the Company continues to actively defend ongoing litigation for which it believes it has defenses and assertions that have merit, the Company is not able to reasonably estimate the range of ultimate possible loss for all opioid-related litigation matters at this time.

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 are unable to fulfill their 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.

v3.24.3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
9 Months Ended
Nov. 09, 2024
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS).  
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

6.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table represents the changes in AOCI by component for the first three quarters of 2024 and 2023:

Pension and

Cash Flow

Postretirement

Hedging

Defined Benefit

    

Activities(1)

    

Plans(1)

    

Total(1)

Balance at January 28, 2023

$

(129)

$

(503)

$

(632)

OCI before reclassifications(2)

317

 

317

Amounts reclassified out of AOCI(3)

4

 

(10)

 

(6)

Net current-period OCI

321

 

(10)

 

311

Balance at November 4, 2023

$

192

$

(513)

$

(321)

Balance at February 3, 2024

$

60

$

(549)

$

(489)

OCI before reclassifications(2)

 

(103)

 

 

(103)

Amounts reclassified out of AOCI(3)

 

6

(3)

 

3

Net current-period OCI

 

(97)

 

(3)

 

(100)

Balance at November 9, 2024

$

(37)

$

(552)

$

(589)

(1)All amounts are net of tax.
(2)Net of tax of $96 for cash flow hedging activities for the first three quarters of 2023 and $(30) for the first three quarters of 2024.
(3)Net of tax of $2 for cash flow hedging activities and $(3) for pension and postretirement defined benefit plans for the first three quarters of 2023. Net of tax of $1 for cash flow hedging activities and $(1) for pension and postretirement defined benefit plans for the first three quarters of 2024.

The following table represents the items reclassified out of AOCI and the related tax effects for the first three quarters of 2024 and 2023:

Third Quarter Ended

Three Quarters Ended

 

    

November 9,

    

November 4,

    

November 9,

    

November 4,

 

2024

2023

2024

2023

Cash flow hedging activity items:

Amortization of gains and losses on cash flow hedging activities(1)

$

2

$

2

$

7

$

6

Tax expense

 

 

(1)

 

(1)

 

(2)

Net of tax

 

2

 

1

 

6

 

4

Pension and postretirement defined benefit plan items:

Amortization of amounts included in net periodic pension cost(2)

 

(1)

 

(4)

 

 

(4)

 

 

(13)

Tax expense

 

 

 

 

1

 

 

1

 

 

3

Net of tax

 

 

(1)

 

 

(3)

 

 

(3)

 

 

(10)

Total reclassifications, net of tax

 

$

1

 

$

(2)

 

$

3

 

$

(6)

(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).
v3.24.3
INCOME TAXES
9 Months Ended
Nov. 09, 2024
INCOME TAXES  
INCOME TAXES

7.

INCOME TAXES

The effective income tax rate was 23.3% for the third quarter of 2024 and 23.9% for the third quarter of 2023. The effective income tax rate was 21.8% for the first three quarters of 2024 and 24.8% for the first three quarters of 2023. The effective income tax rate for the third quarter of 2024 differed from the federal statutory rate due to the effect of state income taxes, partially offset by the utilization of tax credits and deductions. The effective income tax rate for the first three quarters of 2024 differed from the federal statutory rate due to the effect of state income taxes, partially offset by a tax benefit related to classifying Kroger Specialty Pharmacy as held for sale and the utilization of tax credits and deductions. The effective income tax rate for the third quarter of 2023 differed from the federal statutory rate due to the effect of state income taxes and certain nondeductible expenses, partially offset by the utilization of tax credits. The effective income tax rate for the first three quarters of 2023 differed from the federal statutory rate due to the effect of state income taxes, the nondeductible portion of opioid settlement charges and certain nondeductible expenses, partially offset by the utilization of tax credits.

v3.24.3
RECENTLY ISSUED ACCOUNTING STANDARDS
9 Months Ended
Nov. 09, 2024
RECENTLY ISSUED ACCOUNTING STANDARDS  
RECENTLY ISSUED ACCOUNTING STANDARDS

8.

RECENTLY ISSUED ACCOUNTING STANDARDS

In November 2024, the FASB issued ASU 2024-03, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.” The guidance requires disclosures about specific expense categories, including but not limited to, purchases of inventory, employee compensation, depreciation, amortization and selling expenses. The ASU is effective for annual reporting periods beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027. The Company is currently assessing the effect that adoption of this guidance will have on its Consolidated Financial Statements.

In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This guidance amends existing income tax disclosure guidance, primarily requiring more detailed disclosure for income taxes paid and the effective tax rate reconciliation. The ASU is effective for annual reporting periods beginning after December 15, 2024, with early adoption permitted and can be applied on either a prospective or retroactive basis. The Company is currently assessing the effect that adoption of this guidance will have on its Consolidated Financial Statements.

In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The amendments improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The ASU is effective for annual reporting periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024 with early adoption permitted and should be applied on a retroactive basis. The Company is currently assessing the effect that adoption of this guidance will have on its Consolidated Financial Statements and segment disclosures.

v3.24.3
SALE OF KROGER SPECIALTY PHARMACY
9 Months Ended
Nov. 09, 2024
SALE OF KROGER SPECIALTY PHARMACY  
SALE OF KROGER SPECIALTY PHARMACY

9.

SALE OF KROGER SPECIALTY PHARMACY

On October 4, 2024, the Company completed the sale of its Kroger Specialty Pharmacy business to Elevance Health, for $464. In the third quarter of 2024, the Company recognized a gain on sale for $79, $60 net of tax, due to the sale. For the first three quarters of 2024, the Company recognized a gain on sale for $79, $91 net of tax, which includes the reduction to income tax expense of $31 related to deferred tax assets recognized in the first quarter of 2024 due to recording Kroger Specialty Pharmacy as held for sale.

v3.24.3
TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC.
9 Months Ended
Nov. 09, 2024
TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC.  
TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC.

10.

TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC.

As previously disclosed, on October 13, 2022, the Company entered into a merger agreement (the “Merger Agreement”) with Albertsons Companies, Inc. (“Albertsons”) pursuant to which all of the outstanding shares of Albertsons common and preferred stock (on an as converted basis) automatically would have been converted into the right to receive $34.10 per share, subject to certain reductions following a $6.85 per share pre-closing cash dividend that was paid on January 20, 2023 to Albertsons shareholders of record as of October 24, 2022. The adjusted per share cash purchase price was expected to be $27.25.

On December 10, 2024, pursuant to a decision of United States District Court for the District of Oregon in the case Federal Trade Commission et al. v. The Kroger Company and Albertsons Companies, Inc. (Case No.: 3:24-cv-00347-AN), as further described below, the court issued a preliminary injunction enjoining the consummation of the merger. On December 11, 2024, the Company delivered a notice to Albertsons terminating the merger agreement (the ‘Termination Notice”). The Termination Notice further notified Albertsons that a prior termination letter sent by Albertsons to Kroger on December 10, 2024, was not an effective termination. In connection with the Termination Notice, Kroger notified Albertsons that Kroger has no obligation to pay the Parent Termination Fee (as defined in the Merger Agreement) because Albertsons failed to perform and comply in all material respects with its covenants under the Merger Agreement.

In connection with obtaining the requisite regulatory clearance necessary to consummate the transaction, the Company and Albertsons expected to make store divestitures. On September 8, 2023, the Company and Albertsons announced that they entered into a comprehensive divestiture plan with C&S Wholesale Grocers, LLC (“C&S”).

On April 22, 2024, the Company and Albertsons announced they had amended their definitive agreement with C&S, which was a further divestiture package with additional stores, facilities, agreements, banners, private label brands and certain other rights. The definitive amended and restated agreement was subject to fulfillment of customary closing conditions, including clearance by the Federal Trade Commission (“FTC”). Following the termination of the merger with Albertsons, the Company terminated the amended and restated purchase agreement with C&S.

In connection with the Merger Agreement, on October 13, 2022, the Company entered into a commitment letter with certain lenders pursuant to which the lenders committed to provide a $17,400 senior unsecured bridge term loan facility, which, if entered into, would have matured 364 days after the closing date of the merger. The commitments were intended to be drawn to finance the merger with Albertsons only to the extent the Company did not arrange for alternative financing prior to closing. As alternative financing for the merger was secured, the commitments with respect to the bridge term loan facility under the commitment letter were reduced. The entry into the term loan credit agreement mentioned below reduced the commitments under the Company’s $17,400 bridge facility commitment by $4,750 to $12,650. On April 12, 2024, the Company and the lenders to the bridge facility, at the Company’s request, further reduced the bridge facility commitment by $2,000 to $10,650. During the third quarter of 2024, the Company terminated the bridge term loan facility due to issuing $10,500 of senior notes mentioned below, net proceeds of which were expected to partially fund the cash consideration for the proposed merger and for general corporate purposes. On July 26, 2024, the Company and the commitment parties under the bridge facility agreed to extend the outside date with respect to the bridge facility commitments to the earlier of the Merger Outside Date (as defined herein) and December 31, 2024. Fees with respect to the bridge term loan facility are included in “Other” in the Company’s Consolidated Statements of Cash Flows within “Cash Flows from Financing Activities” and were recognized as operating, general and administrative expense in the Company’s Consolidated Statements of Operations over the commitment period.

On November 9, 2022, the Company executed a term loan credit agreement with certain lenders pursuant to which the lenders committed to provide, contingent upon the completion of the merger with Albertsons and certain other customary conditions to funding, (1) senior unsecured term loans in an aggregate principal amount of $3,000 maturing on the third anniversary of the merger closing date and (2) senior unsecured term loans in an aggregate principal amount of $1,750 maturing on the date that is 18 months after the merger closing date (collectively, the “Term Loan Facilities”). Borrowings under the Term Loan Facilities were to be used to pay a portion of the consideration and other amounts payable in connection with the merger with Albertsons. In the third quarter of 2024, the Company entered into a second amendment to the term loan agreement to, among other things, amend certain covenants applicable thereto. Concurrently with the termination of the Merger Agreement on December 11, 2024, all of the commitments with respect to the Term Loan Facilities were automatically terminated in accordance with the terms thereof.

On August 20, 2024, the Company issued $1,000 of its 4.70% Senior Notes due 2026 (the “2026 notes”); $1,000 of its 4.60% Senior Notes due 2027 (the “2027 notes”); $1,400 of its 4.65% Senior Notes due 2029 (the “2029 notes”); $1,300 of its 4.90% Senior Notes due 2031 (the “2031 notes”); $2,200 of its 5.00% Senior Notes due 2034 (the “2034 notes”); $2,100 of its 5.50% Senior Notes due 2054 (the “2054 notes”); and $1,500 of its 5.65% Senior Notes due 2064 (the “2064 notes”) to pay a portion of the cash consideration for its proposed merger with Albertsons and general corporate purposes.  The 2026 notes, 2027 notes, 2029 notes and the 2031 notes (collectively, the “SMR Notes”) are subject to a special mandatory redemption (at a price equal to 101% of the aggregate principal amount of such series of notes plus accrued and unpaid interest to, but excluding, the date of the special mandatory redemption) under certain circumstances if the proposed merger is terminated or does not close by an agreed upon date. In connection with the termination of the Merger Agreement, the Company sent a notice to the trustee in respect of the SMR Notes, setting a redemption date of December 18, 2024 to redeem the SMR Notes in accordance with their terms. For additional information, see Note 11 to the Consolidated Financial Statements.

On August 15, 2024, the Company commenced an exchange offer for any and all outstanding notes (the “ACI Notes”) issued by Albertsons and certain of its subsidiaries for up to approximately $7,442 aggregate principal amount of new senior notes to be issued by the Company and cash. In conjunction with the exchange offers (the “Exchange Offers”), the Company concurrently solicited consents (collectively, the “Consent Solicitations”) to adopt certain proposed amendments (the “Proposed Amendments”) to each of the indentures (each an “ACI Indenture” and, collectively, the “ACI Indentures”) governing the ACI Notes.

On August 29, 2024, the Company announced that it has received the requisite number of consents to adopt the Proposed Amendments with respect to certain series of ACI Notes (the “Consented Series”) based on the early tenders in the Exchange Offers and Consent Solicitations. The applicable parties to the applicable ACI Indentures executed supplemental indentures to the applicable ACI Indentures implementing the Proposed Amendments with respect to the Consented Series, which will not become operative until the settlement of the Exchange Offers. The Company had previously extended the expiration date of the Exchange Offers with respect to all series of ACI Notes. In connection with the termination of the Merger Agreement, the Company has terminated the Exchange Offers and Consent Solicitations. For additional information, see Note 11 to the Consolidated Financial Statements.

On February 26, 2024, the FTC instituted an administrative proceeding (the “FTC Administrative Proceeding”) to prohibit the merger. Simultaneously, the FTC (joined by nine states) filed the FTC Federal Litigation in the United States District Court for the District of Oregon (the “FTC Federal Litigation”) requesting a preliminary injunction to block the merger. On January 15, 2024 and February 14, 2024, the attorneys general of Washington and Colorado, respectively, filed suit in their respective state courts, also seeking to enjoin the merger. On December 10, 2024, the federal court in the FTC Federal Litigation granted the FTC’s request for a preliminary injunction to block the merger. The Washington court also issued a permanent injunction blocking the merger in the Washington case on December 10, 2024. The Colorado court has not yet issued a decision. In addition to these governmental actions, private plaintiffs have filed suit in the United States District Court for the Northern District of California also seeking to enjoin the transaction. That case has been stayed pending resolution of the FTC’s motion for a preliminary injunction in the FTC Federal Litigation.

v3.24.3
SUBSEQUENT EVENTS
9 Months Ended
Nov. 09, 2024
SUBSEQUENT EVENTS  
SUBSEQUENT EVENTS

11.SUBSEQUENT EVENTS

On December 10, 2024, the court in the FTC Federal Litigation issued a preliminary injunction enjoining the consummation of the merger with Albertsons. On December 10, 2024, in the Washington case, the King County Superior Court for the State of Washington issued a permanent injunction enjoining the consummation of the merger.

On December 10, 2024, Albertsons sued the Company in the Delaware Court of Chancery for alleged breaches of the Merger Agreement and the implied covenant of good faith and fair dealing. Albertsons seeks payment of a $600 termination fee that Albertsons alleges it is owed under the Merger Agreement, as well as additional damages in unspecified amounts, including expenses paid by Albertsons in connection with the Merger and the lost premium Albertsons alleges is owed to its shareholders, as well as other relief. No schedule has been set, and the Company’s time to respond to the complaint has not yet run. The Company denies the allegations and intends to vigorously defend itself in the litigation.

On December 11, 2024, the Company delivered the Termination Notice to Albertsons, terminating the Merger Agreement. The Termination Notice further notified Albertsons that a prior termination letter sent by Albertsons to the Company, dated December 10, 2024, is not an effective termination. In connection with the Termination Notice, the Company notified Albertsons that the Company has no obligation to pay the Parent Termination Fee (as defined in the Merger Agreement) because Albertsons has failed to perform and comply in all material respects with its covenants under the Merger Agreement. Following the termination of the merger with Albertsons, the Company terminated the amended and restated purchase agreement with C&S.

On December 11, 2024, the Company terminated the Exchange Offers and Consent Solicitations. On December 12, 2024, the Company sent a notice to the trustee in respect of the SMR Notes, setting a redemption date of December 18, 2024 to redeem the SMR Notes at a redemption price equal to 101% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date.

On September 9, 2022, the Company’s Board of Directors had approved a $1,000 share repurchase program to reacquire shares via open market purchase or privately negotiated transactions, block trades, or pursuant to trades intending to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the “September 2022 Repurchase Program”). On December 11, 2024, the Company announced that its Board of Directors terminated the September 2022 Repurchase Program and authorized a new share repurchase program in an aggregate amount of $7,500, of which $5,000 is expected to be repurchased by means of an accelerated share repurchase program. The remaining amounts under the program may be repurchased by means of open market transactions, privately negotiated transactions, accelerated share repurchase programs or other derivative transactions, or any combination of the foregoing.

v3.24.3
Pay vs Performance Disclosure - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Nov. 09, 2024
Nov. 04, 2023
Nov. 09, 2024
Nov. 04, 2023
Pay vs Performance Disclosure        
Net Income (Loss) $ 618 $ 646 $ 2,031 $ 1,428
v3.24.3
Insider Trading Arrangements
3 Months Ended
Nov. 09, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.3
ACCOUNTING POLICIES (Policies)
9 Months Ended
Nov. 09, 2024
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 3, 2024 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 3, 2024.

The unaudited information in the Consolidated Financial Statements for the third quarters ended November 9, 2024 and November 4, 2023 includes the results of operations of the Company for the 12 and 40 week periods then ended.

Reclassifications

Reclassifications

In the fourth quarter of 2023, the Company retrospectively reclassified certain liabilities from “Other current liabilities” to “Accounts payable” on the Consolidated Balance Sheets to better align the presentation of liabilities associated with its third-party financing arrangements and other current liabilities on the Consolidated Balance Sheets with management’s internal reporting. A similar reclassification was made to the Consolidated Statement of Cash Flows resulting in a change to “Accounts payable” and “Accrued expenses” within “Net cash provided by operating activities” for the quarter ended November 4, 2023. The reclassification did not affect total current liabilities on the Company’s Consolidated Balance Sheet or total operating cash flows on the Consolidated Statement of Cash Flows.

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 fair value of all financial instruments, measured using Level 1 inputs, was $205 and $578 as of November 9, 2024 and February 3, 2024, respectively, and is included in “Other assets” in the Company’s Consolidated Balance Sheets. An unrealized loss for the Company’s Level 1 investments of approximately $20 and $103 for the third quarters of 2024 and 2023, respectively, is included in “(Loss) gain on investments” in the Company’s Consolidated Statements of Operations. An unrealized loss for the Company’s Level 1 investments of approximately $93 and $12 for the first three quarters of 2024 and 2023, respectively, is included in “(Loss) gain on investments” in the Company’s Consolidated Statements of Operations.

In the first quarter of 2024, the Company fully exited its position in a Level 1 equity investment, receiving proceeds totaling approximately $303, resulting in a realized gain of $23, which is included in “(Loss) gain on investments” in the Company’s Consolidated Statements of Operations.

The Company's forward-starting interest rate swaps and treasury lock agreements are considered Level 2 instruments.  The Company values these forward-starting interest rate swaps and treasury locks using observable forward yield curves.  These forward yield curves are classified as Level 2 inputs.

Refer to Note 2 for the disclosure of debt instrument fair values.

Accounts Payable Financing Arrangement

Accounts Payable Financing Arrangement

The Company has an agreement with a third party to provide an accounts payable tracking system which facilitates participating suppliers’ ability to finance payment obligations from the Company with designated third-party financial institutions.  Participating suppliers may, at their sole discretion, make offers to finance one or more payment obligations of the Company prior to their scheduled due dates at a discounted price to participating financial institutions. The Company’s obligations to its suppliers, including amounts due and scheduled payment dates, are not affected by suppliers’ decisions to finance amounts under this arrangement. The payment term that the Company has with participating suppliers under these programs is approximately 90 days. 

As of November 9, 2024 and February 3, 2024, the Company had $350 and $325, respectively, in “Accounts payable” in the Company’s Consolidated Balance Sheets associated with financing arrangements.

v3.24.3
DEBT OBLIGATIONS (Tables)
9 Months Ended
Nov. 09, 2024
DEBT OBLIGATIONS  
Schedule of long-term debt

November 9,

February 3,

    

2024

    

2024

1.70% to 8.00% Senior Notes due through 2064

$

19,520

$

9,123

Other

 

1,058

 

1,064

Total debt, excluding obligations under finance leases

 

20,578

 

10,187

Less current portion

 

(10)

 

(25)

Total long-term debt, excluding obligations under finance leases

$

20,568

$

10,162

v3.24.3
BENEFIT PLANS (Tables)
9 Months Ended
Nov. 09, 2024
BENEFIT PLANS  
Schedule of components of net periodic benefit cost (benefit)

Third Quarter Ended

 

Pension Benefits

Other Benefits

 

November 9,

November 4,

November 9,

November 4,

 

    

2024

    

2023

    

2024

    

2023

 

Components of net periodic benefit cost (benefit): 

Service cost 

 

$

2

 

$

4

 

$

1

 

$

1

Interest cost 

 

30

 

29

 

2

 

3

Expected return on plan assets 

 

(34)

 

(35)

 

 

Amortization of: 

Prior service cost 

 

 

 

(1)

 

(3)

Actuarial loss (gain)

 

2

 

2

 

(2)

 

(3)

Net periodic benefit cost (benefit)

 

$

 

$

 

$

 

$

(2)

Three Quarters Ended

 

Pension Benefits

Other Benefits

 

November 9,

November 4,

November 9,

November 4,

 

    

2024

    

2023

    

2024

    

2023

 

Components of net periodic benefit cost (benefit): 

Service cost 

 

$

5

 

$

13

 

$

3

 

$

3

Interest cost 

 

101

 

98

 

8

 

6

Expected return on plan assets 

 

(114)

 

(115)

 

 

Amortization of: 

0

0

Prior service cost 

 

 

 

(3)

 

(9)

Actuarial loss (gain)

 

7

 

6

 

(8)

 

(10)

Net periodic benefit cost (benefit)

 

$

(1)

 

$

2

 

$

 

$

(10)

v3.24.3
EARNINGS PER COMMON SHARE (Tables)
9 Months Ended
Nov. 09, 2024
EARNINGS PER COMMON SHARE  
Schedule of earnings per common and diluted shares

Third Quarter Ended

Third Quarter Ended

November 9, 2024

November 4, 2023

 

    

    

    

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

$

613

 

723

$

0.85

$

641

 

719

$

0.89

Dilutive effect of stock options

 

5

 

6

Net earnings attributable to The Kroger Co. per diluted common share

$

613

 

728

$

0.84

$

641

 

725

$

0.88

Three Quarters Ended

Three Quarters Ended

November 9, 2024

November 4, 2023

    

    

    

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

$

2,015

 

722

$

2.79

$

1,416

 

718

$

1.97

Dilutive effect of stock options

 

6

 

7

Net earnings attributable to The Kroger Co. per diluted common share

$

2,015

 

728

$

2.77

$

1,416

 

725

$

1.95

v3.24.3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables)
9 Months Ended
Nov. 09, 2024
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 January 28, 2023

$

(129)

$

(503)

$

(632)

OCI before reclassifications(2)

317

 

317

Amounts reclassified out of AOCI(3)

4

 

(10)

 

(6)

Net current-period OCI

321

 

(10)

 

311

Balance at November 4, 2023

$

192

$

(513)

$

(321)

Balance at February 3, 2024

$

60

$

(549)

$

(489)

OCI before reclassifications(2)

 

(103)

 

 

(103)

Amounts reclassified out of AOCI(3)

 

6

(3)

 

3

Net current-period OCI

 

(97)

 

(3)

 

(100)

Balance at November 9, 2024

$

(37)

$

(552)

$

(589)

(1)All amounts are net of tax.
(2)Net of tax of $96 for cash flow hedging activities for the first three quarters of 2023 and $(30) for the first three quarters of 2024.
(3)Net of tax of $2 for cash flow hedging activities and $(3) for pension and postretirement defined benefit plans for the first three quarters of 2023. Net of tax of $1 for cash flow hedging activities and $(1) for pension and postretirement defined benefit plans for the first three quarters of 2024.

Schedule of items reclassified out of AOCI and the related tax effects

Third Quarter Ended

Three Quarters Ended

 

    

November 9,

    

November 4,

    

November 9,

    

November 4,

 

2024

2023

2024

2023

Cash flow hedging activity items:

Amortization of gains and losses on cash flow hedging activities(1)

$

2

$

2

$

7

$

6

Tax expense

 

 

(1)

 

(1)

 

(2)

Net of tax

 

2

 

1

 

6

 

4

Pension and postretirement defined benefit plan items:

Amortization of amounts included in net periodic pension cost(2)

 

(1)

 

(4)

 

 

(4)

 

 

(13)

Tax expense

 

 

 

 

1

 

 

1

 

 

3

Net of tax

 

 

(1)

 

 

(3)

 

 

(3)

 

 

(10)

Total reclassifications, net of tax

 

$

1

 

$

(2)

 

$

3

 

$

(6)

(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).
v3.24.3
ACCOUNTING POLICIES (Details) - USD ($)
$ in Millions
3 Months Ended 4 Months Ended 9 Months Ended
Nov. 09, 2024
Nov. 04, 2023
May 25, 2024
Nov. 09, 2024
Nov. 04, 2023
Feb. 03, 2024
Description of Business, Basis of Presentation and Principles of Consolidation            
Proceeds from equity investment     $ 303      
Realized gain on equity securities     $ 23      
Accounts payable financing arrangement term       90 days    
Fiscal Year            
Length of fiscal period 84 days 84 days   280 days 280 days  
Quoted Prices in Active Markets for Identical Assets (Level 1)            
Description of Business, Basis of Presentation and Principles of Consolidation            
Loss on investments $ 20 $ 103   $ 93 $ 12  
Other assets | Quoted Prices in Active Markets for Identical Assets (Level 1)            
Description of Business, Basis of Presentation and Principles of Consolidation            
Fair value of equity securities 205     205   $ 578
Accounts payable            
Description of Business, Basis of Presentation and Principles of Consolidation            
Accounts payable financing arrangements $ 350     $ 350   $ 325
v3.24.3
DEBT OBLIGATIONS - NARRATIVE (Details)
$ in Millions
3 Months Ended 9 Months Ended
Nov. 09, 2024
USD ($)
Aug. 17, 2024
USD ($)
agreement
DerivativeInstrument
Nov. 04, 2023
USD ($)
Nov. 09, 2024
USD ($)
Nov. 04, 2023
USD ($)
Dec. 11, 2024
USD ($)
Sep. 13, 2024
USD ($)
Sep. 12, 2024
USD ($)
Feb. 03, 2024
USD ($)
Debt                  
Total debt, excluding obligations under finance leases $ 20,578     $ 20,578         $ 10,187
Less current portion (10)     (10)         (25)
Total long-term debt, excluding obligations under finance leases 20,568     20,568         10,162
Cash paid for interest       355 $ 467        
Interest income 147   $ 29 220 87        
Fair value of total debt 19,731     19,731         9,401
Unamortized gains (losses) on cash flow hedging activities, net of income tax [1] (50)   121 (103) 317        
Senior notes due through 2049                  
Debt                  
Total debt, excluding obligations under finance leases $ 19,520     $ 19,520         9,123
Senior notes due through 2049 | Minimum                  
Debt                  
Interest rate (as a percent) 1.70%     1.70%          
Senior notes due through 2049 | Maximum                  
Debt                  
Interest rate (as a percent) 8.00%     8.00%          
Other                  
Debt                  
Total debt, excluding obligations under finance leases $ 1,058     $ 1,058         $ 1,064
Terminated forward-starting interest swaps                  
Debt                  
Number of derivatives terminated | DerivativeInstrument   5              
Notional amount   $ 5,350              
Terminated forward-starting interest swaps | Not Designated                  
Debt                  
Notional amount   3,000              
Unrealized gain (loss)     $ 129   $ 329        
Realized loss on derivatives       $ 55          
Terminated forward-starting interest swaps | Cash flow hedges | Designated                  
Debt                  
Notional amount   2,350              
Unamortized gain (loss)   48              
Unamortized gains (losses) on cash flow hedging activities, net of income tax   36              
Treasury Lock | Cash flow hedges | Designated                  
Debt                  
Unamortized gain (loss) (56)                
Unamortized gains (losses) on cash flow hedging activities, net of income tax $ (43)                
10-year treasury lock agreements | Cash flow hedges | Designated                  
Debt                  
Notional amount   $ 2,100              
Number of contracts | agreement   2              
Derivative, term of contract   10 years              
Average fixed rate (as a percent)   3.91%              
30-year treasury lock agreements | Cash flow hedges | Designated                  
Debt                  
Notional amount   $ 3,250              
Number of contracts | agreement   2              
Derivative, term of contract   30 years              
Average fixed rate (as a percent)   4.11%              
Unsecured revolving credit facility                  
Debt                  
Maximum borrowing capacity               $ 2,750  
Unsecured revolving credit facility | Subsequent Events                  
Debt                  
Maximum borrowing capacity           $ 2,750      
Unsecured revolving credit facility | Proposed Merger Closing Date                  
Debt                  
Maximum borrowing capacity             $ 5,000    
Additional borrowing capacity             $ 2,250    
[1] Amount is net of tax of $(14) for the third quarter of 2024 and $36 for the third quarter of 2023. Amount is net of tax of $(30) for the first three quarters of 2024 and $96 for the first three quarters of 2023.
v3.24.3
BENEFIT PLANS - COMPONENTS OF NET PERIODIC BENEFIT COSTS (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Nov. 09, 2024
Nov. 04, 2023
Nov. 09, 2024
Nov. 04, 2023
Pension Benefits        
Components of net periodic benefit cost (benefit):        
Service cost $ 2 $ 4 $ 5 $ 13
Interest cost 30 29 101 98
Expected return on plan assets (34) (35) (114) (115)
Amortization of:        
Actuarial loss (gain) 2 2 7 6
Net periodic benefit cost (benefit)     (1) 2
Other Benefits        
Components of net periodic benefit cost (benefit):        
Service cost 1 1 3 3
Interest cost 2 3 8 6
Amortization of:        
Prior service cost (1) (3) (3) (9)
Actuarial loss (gain) $ (2) (3) $ (8) (10)
Net periodic benefit cost (benefit)   $ (2)   $ (10)
v3.24.3
BENEFIT PLANS - DEFINED CONTRIBUTION PLAN INFORMATION (Details) - USD ($)
$ in Millions
9 Months Ended
Nov. 09, 2024
Nov. 04, 2023
BENEFIT PLANS    
Contribution to 401(k) retirement savings accounts $ 255 $ 251
v3.24.3
EARNINGS PER COMMON SHARE (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 9 Months Ended
Nov. 09, 2024
Nov. 04, 2023
Nov. 09, 2024
Nov. 04, 2023
EARNINGS PER COMMON SHARE        
Net earnings numerator (basic) $ 613 $ 641 $ 2,015 $ 1,416
Net earnings numerator (diluted) $ 613 $ 641 $ 2,015 $ 1,416
Average number of common shares used in basic calculation 723 719 722 718
Net earnings (loss) attributable to The Kroger Co. per basic common share $ 0.85 $ 0.89 $ 2.79 $ 1.97
Dilutive effect of stock options (in shares) 5 6 6 7
Average number of common shares used in diluted calculation 728 725 728 725
Net earnings attributable to The Kroger Co. per diluted common share $ 0.84 $ 0.88 $ 2.77 $ 1.95
Undistributed and distributed earnings (loss) to participating securities $ 5 $ 5 $ 16 $ 12
Shares excluded from the earnings (loss) per share calculation due to anti-dilutive effect on earnings per share 3 3 3 3
v3.24.3
COMMITMENTS AND CONTINGENCIES (Details) - Opioid Litigation - Settled litigation - USD ($)
$ in Millions
3 Months Ended 4 Months Ended
Sep. 08, 2023
Aug. 12, 2023
May 25, 2024
May 20, 2023
Nov. 09, 2024
Feb. 03, 2024
Commitment and Contingencies            
Litigation settlement amount awarded to other party $ 1,236          
Litigation settlement amount awarded to other party for attorney fees $ 177          
Litigation settlement   $ 1,413        
Litigation settlement, net   $ 1,113        
Settlement payments, installments term 11 years          
Payable for attorney's fees and cost, installments term 6 years          
Annual payment included in prepaid and other current assets     $ 138      
West Virginia            
Commitment and Contingencies            
Litigation settlement       $ 62    
Other current liabilities            
Commitment and Contingencies            
Settlement amount payable to other party, including attorney fees         $ 284 $ 284
Other long-term liabilities            
Commitment and Contingencies            
Settlement amount payable to other party, including attorney fees         $ 1,129 $ 1,129
State and subdivision            
Commitment and Contingencies            
Litigation settlement amount awarded to other party $ 1,200          
Native American tribes            
Commitment and Contingencies            
Litigation settlement amount awarded to other party $ 36          
v3.24.3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - CHANGES IN AOCI BY COMPONENT (Details) - USD ($)
$ in Millions
3 Months Ended 4 Months Ended 9 Months Ended
Nov. 09, 2024
Aug. 17, 2024
Feb. 03, 2024
Nov. 04, 2023
Aug. 12, 2023
May 25, 2024
May 20, 2023
Nov. 09, 2024
Nov. 04, 2023
Accumulated other comprehensive income (loss)                  
Balance at the beginning of the period           $ 11,615   $ 11,615  
Amounts reclassified out of AOCI(3) $ 1     $ (2)       3 $ (6)
Net current-period OCI (49) $ (121) $ (168) 119 $ 104 70 $ 88 (100) 311
Balance at the end of the period 12,900   11,615         12,900  
AOCI Attributable to Parent [Member]                  
Accumulated other comprehensive income (loss)                  
Balance at the beginning of the period     (321)     (489) (632) (489) (632)
OCI before reclassifications(2)               (103) 317
Amounts reclassified out of AOCI(3)               3 (6)
Net current-period OCI (49) $ (121) (168) 119 $ 104 70 88 (100) 311
Balance at the end of the period (589)   (489) (321)       (589) (321)
Cash Flow Hedging Activities                  
Accumulated other comprehensive income (loss)                  
Balance at the beginning of the period     192     60 (129) 60 (129)
OCI before reclassifications(2)               (103) 317
Amounts reclassified out of AOCI(3)               6 4
Net current-period OCI               (97) 321
Balance at the end of the period (37)   60 192       (37) 192
OCI before reclassifications, tax               (30) 96
Amounts reclassified out of AOCI, tax               1 2
Pension and Postretirement Defined Benefit Plans                  
Accumulated other comprehensive income (loss)                  
Balance at the beginning of the period     (513)     $ (549) $ (503) (549) (503)
Amounts reclassified out of AOCI(3) (1)     (3)       (3) (10)
Net current-period OCI               (3) (10)
Balance at the end of the period $ (552)   $ (549) (513)       (552) (513)
Amounts reclassified out of AOCI, tax       $ (1)       $ (1) $ (3)
v3.24.3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - ITEMS RECLASSIFIED OUT OF AOCI (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Nov. 09, 2024
Nov. 04, 2023
Nov. 09, 2024
Nov. 04, 2023
Reclassification out of AOCI and the related tax effects        
Tax expense $ 187 $ 204 $ 568 $ 472
Net of tax (618) (646) (2,031) (1,428)
Total reclassifications, net of tax 1 (2) 3 (6)
Cash Flow Hedging Activities        
Reclassification out of AOCI and the related tax effects        
Tax expense     (1) (2)
Total reclassifications, net of tax     6 4
Pension and Postretirement Defined Benefit Plans        
Reclassification out of AOCI and the related tax effects        
Amortization of amounts included in net periodic pension cost(2) (1) (4) (4) (13)
Tax expense   1 1 3
Total reclassifications, net of tax (1) (3) (3) (10)
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 2 7 6
Tax expense   (1) (1) (2)
Net of tax $ 2 $ 1 $ 6 $ 4
v3.24.3
INCOME TAXES - EFFECTIVE INCOME TAX RATE (Details)
3 Months Ended 9 Months Ended
Nov. 09, 2024
Nov. 04, 2023
Nov. 09, 2024
Nov. 04, 2023
INCOME TAXES        
Effective income tax rate (as a percent) 23.30% 23.90% 21.80% 24.80%
v3.24.3
SALE OF KROGER SPECIALTY PHARMACY (Details) - USD ($)
$ in Millions
3 Months Ended 4 Months Ended 9 Months Ended
Oct. 04, 2024
Nov. 09, 2024
May 25, 2024
Nov. 09, 2024
SALE OF KROGER SPECIALTY PHARMACY        
Proceeds from Divestiture of Businesses, Net of Cash Divested       $ 464
Gain on the sale of business   $ 79   79
Kroger Specialty Pharmacy Business Disposal | Disposal Group, Held-for-Sale, Not Discontinued Operations        
SALE OF KROGER SPECIALTY PHARMACY        
Proceeds from Divestiture of Businesses, Net of Cash Divested $ 464      
Gain on the sale of business   79   79
Gain on sale of business, net of tax   $ 60   $ 91
Reduction to income tax expense     $ 31  
v3.24.3
TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC. (Details)
$ / shares in Units, $ in Millions
Dec. 12, 2024
Aug. 20, 2024
USD ($)
Apr. 12, 2024
USD ($)
Nov. 09, 2022
USD ($)
Oct. 13, 2022
USD ($)
$ / shares
Dec. 11, 2024
USD ($)
Aug. 15, 2024
USD ($)
Feb. 26, 2024
state
SMR Notes                
TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC                
Debt face amount   $ 10,500            
Redemption price of principal amount (as percentage)   101.00%            
SMR Notes | Subsequent Events                
TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC                
Redemption price of principal amount (as percentage) 101.00%              
2026 notes                
TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC                
Debt face amount   $ 1,000            
Interest rate (as a percent)   4.70%            
2027 notes                
TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC                
Debt face amount   $ 1,000            
Interest rate (as a percent)   4.60%            
2029 notes                
TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC                
Debt face amount   $ 1,400            
Interest rate (as a percent)   4.65%            
2031 notes                
TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC                
Debt face amount   $ 1,300            
Interest rate (as a percent)   4.90%            
2034 notes                
TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC                
Debt face amount   $ 2,200            
Interest rate (as a percent)   5.00%            
2054 notes                
TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC                
Debt face amount   $ 2,100            
Interest rate (as a percent)   5.50%            
2064 notes                
TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC                
Debt face amount   $ 1,500            
Interest rate (as a percent)   5.65%            
ACI Notes                
TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC                
Exchange offer             $ 7,442  
Albertsons                
TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC                
Conversion share price | $ / shares         $ 34.1      
Special cash dividend payable | $ / shares         6.85      
Expected adjusted cash purchase price | $ / shares         $ 27.25      
Number states joining suit to block merger | state               9
Albertsons | Subsequent Events                
TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC                
Obligation to pay the Parent Termination fee due to failed covenants           $ 0    
Albertsons | Senior unsecured bridge term loan facility                
TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC                
Maximum borrowing capacity     $ 10,650 $ 12,650 $ 17,400      
Debt term         364 days      
Reduction in facility amount     $ 2,000 4,750        
Albertsons | Senior unsecured term loan facility | Maturing on the third anniversary of the merger closing date                
TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC                
Debt face amount       $ 3,000        
Albertsons | Senior unsecured term loan facility | Maturing on the date that is 18 months after the merger closing date                
TERMINATION OF THE MERGER WITH ALBERTSONS COMPANIES, INC                
Debt term       18 months        
Debt face amount       $ 1,750        
v3.24.3
SUBSEQUENT EVENTS (Details) - USD ($)
$ in Millions
Dec. 12, 2024
Aug. 20, 2024
Dec. 11, 2024
Dec. 10, 2024
Sep. 09, 2022
SUBSEQUENT EVENTS          
Share repurchase authorized amount         $ 1,000
SMR Notes          
SUBSEQUENT EVENTS          
Redemption price of principal amount (as percentage)   101.00%      
Subsequent Events          
SUBSEQUENT EVENTS          
Share repurchase authorized amount     $ 7,500    
Amount expected to be repurchased under an accelerated share repurchase program     5,000    
Subsequent Events | Albertsons          
SUBSEQUENT EVENTS          
Termination fee if merger agreement is terminated       $ 600  
Obligation to pay the Parent Termination fee due to failed covenants     $ 0    
Subsequent Events | SMR Notes          
SUBSEQUENT EVENTS          
Redemption price of principal amount (as percentage) 101.00%