Company Quick10K Filing
Kroger
Price25.74 EPS2
Shares807 P/E13
MCap20,772 P/FCF5
Net Debt12,995 EBIT2,666
TEV33,767 TEV/EBIT13
TTM 2019-11-09, in MM, except price, ratios
10-Q 2020-11-07 Filed 2020-12-15
10-Q 2020-08-15 Filed 2020-09-22
10-Q 2020-05-23 Filed 2020-06-26
10-K 2020-02-01 Filed 2020-04-01
10-Q 2019-11-09 Filed 2019-12-17
10-Q 2019-08-17 Filed 2019-09-24
10-Q 2019-05-25 Filed 2019-06-28
10-K 2019-02-02 Filed 2019-04-02
10-Q 2018-11-10 Filed 2018-12-18
10-Q 2018-08-18 Filed 2018-09-25
10-Q 2018-05-26 Filed 2018-06-29
10-K 2018-02-03 Filed 2018-04-03
10-Q 2017-11-04 Filed 2017-12-08
10-Q 2017-08-12 Filed 2017-09-15
10-Q 2017-05-20 Filed 2017-06-27
10-K 2017-01-28 Filed 2017-03-28
10-Q 2016-11-05 Filed 2016-12-13
10-Q 2016-08-13 Filed 2016-09-20
10-Q 2016-05-21 Filed 2016-06-28
10-K 2016-01-30 Filed 2016-03-29
10-Q 2015-11-07 Filed 2015-12-17
10-Q 2015-08-15 Filed 2015-09-22
10-Q 2015-05-23 Filed 2015-06-30
10-K 2015-01-31 Filed 2015-03-31
10-Q 2014-11-08 Filed 2014-12-16
10-Q 2014-08-16 Filed 2014-09-23
10-Q 2014-05-24 Filed 2014-07-01
10-K 2014-02-01 Filed 2014-04-01
10-Q 2013-08-17 Filed 2013-09-24
10-Q 2013-05-25 Filed 2013-06-28
10-K 2013-02-02 Filed 2013-04-02
10-Q 2012-11-03 Filed 2012-12-11
10-Q 2012-08-11 Filed 2012-09-18
10-Q 2012-05-19 Filed 2012-06-26
10-K 2012-01-28 Filed 2012-03-27
10-Q 2011-11-05 Filed 2011-12-15
10-Q 2011-08-13 Filed 2011-09-16
10-Q 2011-05-21 Filed 2011-06-23
10-K 2011-01-29 Filed 2011-03-29
10-Q 2010-11-06 Filed 2010-12-13
10-Q 2010-08-14 Filed 2010-09-22
10-Q 2010-05-22 Filed 2010-06-28
10-K 2010-01-30 Filed 2010-03-30
8-K 2020-10-27
8-K 2020-09-11
8-K 2020-07-21
8-K 2020-06-25
8-K 2020-06-18
8-K 2020-04-28
8-K 2020-04-01
8-K 2020-03-05
8-K 2020-01-30
8-K 2020-01-13
8-K 2019-12-12
8-K 2019-12-05
8-K 2019-11-05
8-K 2019-09-12
8-K 2019-06-28
8-K 2019-06-27
8-K 2019-06-20
8-K 2019-03-14
8-K 2019-03-07
8-K 2019-01-25
8-K 2019-01-24
8-K 2019-01-14
8-K 2018-12-13
8-K 2018-12-06
8-K 2018-10-29
8-K 2018-09-13
8-K 2018-06-28
8-K 2018-06-21
8-K 2018-04-20
8-K 2018-03-08

KR 10Q Quarterly Report

Part I - Financial Information
Item 1.Financial Statements.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Item 4. Controls and Procedures.
Part II - Other Information
Item 1. Legal Proceedings.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 6. Exhibits.
EX-31.1 kr-20201107xex31d1.htm
EX-31.2 kr-20201107xex31d2.htm
EX-32.1 kr-20201107xex32d1.htm

Kroger Earnings 2020-11-07

Balance SheetIncome StatementCash Flow
504030201002012201420172020
Assets, Equity
40322416802012201420172020
Rev, G Profit, Net Income
2.61.40.2-1.0-2.2-3.42012201420172020
Ops, Inv, Fin

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 7, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from           to         

Commission file number 1-303

Graphic

The Kroger Co.

(Exact name of registrant as specified in its charter)

Ohio

31-0345740

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

1014 Vine Street, Cincinnati, Ohio 45202

(Address of principal executive offices)

(Zip Code)

(513) 762-4000

(Registrant’s telephone number, including area code)

Unchanged

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol

Name of each exchange on which registered

Common, $1.00 Par Value

KR

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No  .

There were 761,347,060 shares of Common Stock ($1 par value) outstanding as of December 8, 2020.

PART I – FINANCIAL INFORMATION

Item 1.

Financial Statements.

THE KROGER CO.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

Third Quarter Ended

Three Quarters Ended

November 7,

November 9,

November 7,

November 9,

(In millions, except per share amounts)

    

2020

    

2019

    

2020

    

2019

 

Sales

$

29,723

$

27,974

$

101,761

$

93,393

Operating expenses

Merchandise costs, including advertising, warehousing, and transportation, excluding items shown separately below

 

22,901

 

21,798

 

77,906

 

72,787

Operating, general and administrative

 

5,194

 

5,097

 

18,162

 

16,223

Rent

 

205

 

201

 

682

 

675

Depreciation and amortization

 

631

 

624

 

2,073

 

1,994

Operating profit

 

792

 

254

 

2,938

 

1,714

Other income (expense)

Interest expense

(129)

(137)

(438)

(463)

Non-service component of company-sponsored pension plan costs

9

(1)

28

(2)

Gain on investments

162

106

952

166

Gain on sale of businesses

 

 

 

176

Net earnings before income tax expense

 

834

 

222

 

3,480

 

1,591

Income tax expense

 

202

 

79

 

816

 

398

Net earnings including noncontrolling interests

 

632

 

143

 

2,664

 

1,193

Net income (loss) attributable to noncontrolling interests

 

1

 

(120)

 

2

 

(139)

Net earnings attributable to The Kroger Co.

$

631

$

263

$

2,662

$

1,332

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

$

0.81

$

0.32

$

3.39

$

1.65

Average number of common shares used in basic calculation

 

772

 

802

 

777

 

800

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

$

0.80

$

0.32

$

3.35

$

1.64

Average number of common shares used in diluted calculation

 

780

 

807

 

785

 

805

The accompanying notes are an integral part of the Consolidated Financial Statements.

2

THE KROGER CO.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

    

Third Quarter Ended

Three Quarters Ended

November 7,

November 9,

November 7,

November 9,

(In millions)

    

2020

    

2019

    

2020

    

2019

 

Net earnings including noncontrolling interests

$

632

$

143

$

2,664

$

1,193

Other comprehensive income (loss)

Change in pension and other postretirement defined benefit plans, net of income tax(1)

22

7

28

23

Unrealized gains and losses on cash flow hedging activities, net of income tax(2)

 

7

 

34

 

(12)

 

(29)

Amortization of unrealized gains and losses on cash flow hedging activities, net of income tax(3)

1

1

3

3

Cumulative effect of accounting change(4)

(146)

Total other comprehensive income (loss)

 

30

 

42

 

19

(149)

Comprehensive income

 

662

 

185

 

2,683

 

1,044

Comprehensive income (loss) attributable to noncontrolling interests

 

1

 

(120)

 

2

 

(139)

Comprehensive income attributable to The Kroger Co.

$

661

$

305

$

2,681

$

1,183

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

The accompanying notes are an integral part of the Consolidated Financial Statements.

3

THE KROGER CO.

CONSOLIDATED BALANCE SHEETS

(unaudited)

    

November 7,

    

February 1,

 

(In millions, except par amounts)

2020

2020

 

ASSETS 

Current assets 

Cash and temporary cash investments 

$

2,180

$

399

Store deposits in-transit 

 

1,102

 

1,179

Receivables 

 

1,610

 

1,706

FIFO inventory 

 

8,935

 

8,464

LIFO reserve 

 

(1,457)

 

(1,380)

Prepaid and other current assets 

576

522

Total current assets 

 

12,946

 

10,890

Property, plant and equipment, net 

 

21,902

 

21,871

Operating lease assets

6,843

6,814

Intangibles, net

 

1,012

 

1,066

Goodwill 

 

3,076

 

3,076

Other assets 

 

2,686

 

1,539

Total Assets 

$

48,465

$

45,256

LIABILITIES 

Current liabilities 

Current portion of long-term debt including obligations under finance leases

$

1,595

$

1,965

Current portion of operating lease liabilities

669

597

Trade accounts payable 

 

7,355

 

6,349

Accrued salaries and wages 

 

1,236

 

1,168

Other current liabilities 

 

4,662

 

4,164

Total current liabilities 

 

15,517

 

14,243

Long-term debt including obligations under finance leases

11,925

12,111

Noncurrent operating lease liabilities

6,482

6,505

Deferred income taxes 

 

1,682

 

1,466

Pension and postretirement benefit obligations

 

543

 

608

Other long-term liabilities 

 

2,272

 

1,750

Total Liabilities 

 

38,421

 

36,683

Commitments and contingencies see Note 7

SHAREHOLDERS’ EQUITY 

Preferred shares, $100 par per share, 5 shares authorized and unissued 

Common shares, $1 par per share, 2,000 shares authorized; 1,918 shares issued in 2020 and 2019

 

1,918

 

1,918

Additional paid-in capital 

 

3,420

 

3,337

Accumulated other comprehensive loss 

 

(621)

 

(640)

Accumulated earnings 

 

23,234

 

20,978

Common shares in treasury, at cost, 1,152 shares in 2020 and 1,130 shares in 2019

 

(17,881)

 

(16,991)

Total Shareholders’ Equity - The Kroger Co.

 

10,070

 

8,602

Noncontrolling interests 

 

(26)

 

(29)

Total Equity 

 

10,044

 

8,573

Total Liabilities and Equity 

$

48,465

$

45,256

The accompanying notes are an integral part of the Consolidated Financial Statements.

4

THE KROGER CO.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

Three Quarters Ended

November 7,

November 9,

(In millions)

    

2020

    

2019

 

Cash Flows from Operating Activities:

Net earnings including noncontrolling interests 

$

2,664

$

1,193

Adjustments to reconcile net earnings including noncontrolling interests to net cash provided by operating activities:

Depreciation and amortization

 

2,073

 

1,994

Operating lease asset amortization

481

494

LIFO charge

 

77

 

69

Stock-based employee compensation

 

147

 

117

Company-sponsored pension plan costs

 

(12)

 

32

Deferred income taxes

 

219

 

(46)

Gain on sale of businesses

(176)

Gain on the sale of assets

(24)

(150)

Gain on investments

(952)

(166)

Impairment of Lucky's Market

238

Other

 

119

 

(1)

Changes in operating assets and liabilities net of effects from mergers and disposals of businesses:

Store deposits in-transit

 

77

 

148

Receivables

 

42

 

93

Inventories

 

(471)

 

(636)

Prepaid and other current assets

 

(56)

 

66

Trade accounts payable

 

1,006

 

808

Accrued expenses

 

469

 

299

Income taxes receivable and payable

 

89

(145)

Operating lease liabilities

(464)

(477)

Proceeds from contract associated with sale of business

 

295

Other

 

413

 

(1)

Net cash provided by operating activities

 

5,897

 

4,048

Cash Flows from Investing Activities:

Payments for property and equipment, including payments for lease buyouts

 

(2,062)

 

(2,363)

Proceeds from sale of assets

 

99

257

Net proceeds from sale of businesses

327

Other

 

(85)

 

(45)

Net cash used by investing activities

 

(2,048)

 

(1,824)

Cash Flows from Financing Activities:

Proceeds from issuance of long-term debt

 

537

 

61

Payments on long-term debt including obligations under finance leases

 

(41)

(1,540)

Net payments on commercial paper

 

(1,150)

(235)

Dividends paid

(395)

(356)

Proceeds from issuance of capital stock

98

 

32

Treasury stock purchases

 

(989)

 

(34)

Other

(128)

 

(36)

Net cash used by financing activities

 

(2,068)

 

(2,108)

Net increase in cash and temporary cash investments

 

1,781

 

116

Cash and temporary cash investments:

Beginning of year

 

399

 

429

End of period

$

2,180

$

545

Reconciliation of capital investments:

Payments for property and equipment, including payments for lease buyouts

$

(2,062)

$

(2,363)

Payments for lease buyouts

42

 

24

Changes in construction-in-progress payables

 

(44)

 

96

Total capital investments, excluding lease buyouts

$

(2,064)

$

(2,243)

Disclosure of cash flow information:

Cash paid during the year for interest

$

474

$

407

Cash paid during the year for income taxes

$

495

$

633

The accompanying notes are an integral part of the Consolidated Financial Statements.

5

THE KROGER CO.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREOWNERS’ EQUITY

(unaudited)

Accumulated

Additional

Other

Common Stock

Paid-In

Treasury Stock

Comprehensive

Accumulated

Noncontrolling

(In millions, except per share amounts)

  

Shares

  

Amount

  

Capital

  

Shares

  

Amount

  

Loss

  

Earnings

  

Interest

  

Total

Balances at February 2, 2019

1,918

 

$

1,918

 

$

3,245

 

1,120

 

$

(16,612)

 

$

(346)

 

$

19,681

 

$

(51)

 

$

7,835

Issuance of common stock:

Stock options exercised

 

 

 

 

(1)

 

12

 

 

 

 

12

Restricted stock issued

 

 

 

(14)

 

 

10

 

 

 

 

(4)

Treasury stock activity:

Stock options exchanged

 

 

 

 

 

(15)

 

 

 

 

(15)

Share-based employee compensation

 

 

 

48

 

 

 

 

 

 

48

Other comprehensive loss net of income tax of ($5)

 

 

 

 

 

 

(146)

 

 

 

(146)

Cumulative effect of accounting change

146

146

Other

 

 

 

8

 

 

(8)

 

 

(5)

 

11

 

6

Cash dividends declared ($0.14 per common share)

 

 

 

 

 

 

 

(113)

 

 

(113)

Net earnings including noncontrolling interests

 

 

 

 

 

 

 

772

 

(9)

 

763

Balances at May 25, 2019

 

1,918

 

$

1,918

 

$

3,287

 

1,119

 

$

(16,613)

 

$

(492)

 

$

20,481

 

$

(49)

 

$

8,532

Issuance of common stock:

Stock options exercised

 

 

 

 

(1)

 

6

 

 

 

 

6

Restricted stock issued

 

 

 

(109)

 

(2)

 

79

 

 

 

 

(30)

Treasury stock activity:

Stock options exchanged

 

 

 

 

 

(8)

 

 

 

 

(8)

Share-based employee compensation

 

 

 

41

 

 

 

 

 

 

41

Other comprehensive loss net of income tax of ($14)

 

 

 

 

 

 

(45)

 

 

 

(45)

Other

 

 

 

51

 

 

(51)

 

 

 

1

 

1

Cash dividends declared ($0.16 per common share)

 

 

 

 

 

 

 

(131)

 

 

(131)

Net earnings including noncontrolling interests

 

 

 

 

 

 

 

297

 

(10)

 

287

Balances at August 17, 2019

 

1,918

 

$

1,918

 

$

3,270

 

1,116

 

$

(16,587)

 

$

(537)

 

$

20,647

 

$

(58)

 

$

8,653

Issuance of common stock:

Stock options exercised

 

 

 

 

 

14

 

 

 

 

14

Restricted stock issued

 

 

 

(3)

 

(1)

 

1

 

 

 

 

(2)

Treasury stock activity:

Stock options exchanged

 

 

 

 

1

 

(11)

 

 

 

 

(11)

Share-based employee compensation

 

 

 

28

 

 

 

 

 

 

28

Other comprehensive income net of income tax of $14