KRKroger

​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 2022 Net earnings attributable to The Kroger Co. ​ $ 1,016 ​ $ 2,665 ​ $ 2,164 $ 2,244 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Income) expense adjustments ​ ​ ​ ​ ​ ​ Adjustment for pension plan withdrawal liabilities(1)(2) ​ — ​ — ​ 19 Adjustment for loss (gain) on investments(1)(3) investments(1)(2) ​ ​ 33 ​ ​ 112 ​ ​ (116) ​ 561 Adjustment for Home Chef contingent consideration(1)(4) labor dispute charges(1)(3) ​ 33 ​ — ​ — ​ 15 Adjustment for severance charge and related benefits(1)(5) ​ 24 ​ — ​ — Adjustment for impairment of intangible assets(1)(6) store closures(1)(4) ​ 23 ​ 77 ​ ​ — ​ ​ — Adjustment for executive stock compensation for a former executive(1)(5) ​ ​ (16) ​ ​ — ​ ​ — Adjustment for merger-related costs(1)(6) ​ ​ — ​ ​ 489 ​ ​ 268 Adjustment for merger-related litigation and settlement charges(1)(7) ​ ​ 121 ​ ​ — ​ ​ — Adjustment for property losses(1)(7) losses(1)(8) ​ ​ — ​ ​ 19 ​ — ​ — Adjustment for merger-related costs(1)(8) ​ 489 ​ 268 ​ 34 Adjustment for merger-related net interest expense(1)(9) ​ ​ — ​ ​ 26 ​ — ​ — Adjustment for opioid settlement charges(1)(10) charges and vendor reserves(1)(10) ​ ​ (3) ​ ​ (21) ​ ​ 1,163 ​ 67 Adjustment for goodwill and fixed asset the impairment charges related to Vitacost.com(1)(11) of intangible assets(1)(11) ​ ​ 34 ​ ​ 23 ​ ​ — ​ — ​ 164 Adjustment for gain on sale of Kroger Specialty Pharmacy(1)(12) ​ ​ — ​ ​ (60) ​ ​ — Adjustment for severance charge and related benefits(1)(13) ​ ​ 37 ​ ​ 24 ​ ​ — Adjustment for fulfillment network impairment and related charges(1)(14) ​ ​ 1,908 ​ ​ — ​ ​ — Executive stock compensation for a former executive income tax adjustment ​ ​ (7) ​ ​ — ​ ​ — Adjustment for income tax expense on sale of Kroger Specialty Pharmacy ​ ​ — ​ ​ (31) ​ ​ — Adjustment for income tax expense on sale of Vitacost.com ​ ​ (34) ​ ​ — ​ ​ — Total Adjusted Items ​ ​ 2,183 ​ ​ 581 ​ ​ 1,315 ​ 860 ​ ​ ​ ​ ​ ​ ​ ​ ​ Net earnings attributable to The Kroger Co. excluding the Adjusted Items ​ $ 3,199 ​ $ 3,246 ​ $ 3,479 $ 3,104 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Extra Week adjustment(1)(13) adjustment(1)(15) ​ ​ — ​ ​ — ​ ​ (144) ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ Net earnings attributable to The Kroger Co. excluding the Adjusted Items and the Extra Week adjustment ​ $ 3,199 ​ $ 3,246 ​ $ 3,335 $ 3,104 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net earnings attributable to The Kroger Co. per diluted common share ​ $ 1.54 ​ $ 3.67 ​ $ 2.96 $ 3.06 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Income) expense adjustments ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjustment for pension plan withdrawal liabilities(14) — — 0.03 Adjustment for (gain) loss (gain) on investments(14) investments(16) ​ 0.05 ​ 0.15 ​ (0.17) ​ 0.76 Adjustment for Home Chef contingent consideration(14) labor dispute charges(16) ​ ​ 0.05 ​ ​ — ​ — ​ 0.02 Adjustment for severance charge and related benefits(14) ​ 0.03 ​ — ​ — Adjustment for impairment of intangible assets(14) store closures(16) ​ 0.03 ​ 0.12 ​ ​ — ​ ​ — Adjustment for executive stock compensation for a former executive(16) ​ ​ (0.03) ​ ​ — ​ ​ — Adjustment for merger-related costs(16) ​ ​ — ​ ​ 0.67 ​ ​ 0.37 Adjustment for merger-related litigation and settlement charges(16) ​ ​ 0.18 ​ ​ — ​ ​ — Adjustment for property losses(14) losses(16) ​ ​ — ​ ​ 0.03 ​ — ​ — Adjustment for merger-related costs(14) ​ 0.67 ​ 0.37 ​ 0.05 Adjustment for merger-related net interest expense(14) expense(16) ​ ​ — ​ ​ 0.04 ​ — ​ — Adjustment for opioid settlement charges(14) charges and vendor reserves(16) ​ ​ (0.01) ​ ​ (0.03) ​ ​ 1.60 ​ 0.09 Adjustment for goodwill and fixed asset the impairment charges related to Vitacost.com(14) of intangible assets(16) ​ ​ 0.05 ​ ​ 0.03 ​ ​ — ​ — ​ 0.22 Adjustment for gain on sale of Kroger Specialty Pharmacy(14) Pharmacy(16) ​ ​ — ​ ​ (0.08) ​ ​ — Adjustment for severance charge and related benefits(16) ​ ​ 0.05 ​ ​ 0.03 ​ ​ — Adjustment for fulfillment network impairment and related charges(16) ​ ​ 2.91 ​ ​ — ​ ​ — Executive stock compensation for a former executive income tax adjustment(16) ​ ​ (0.01) ​ ​ — ​ ​ — Adjustment for income tax expense on sale of Kroger Specialty Pharmacy(14) Pharmacy(16) ​ ​ — ​ ​ (0.04) ​ ​ — Adjustment for income tax expense on sale of Vitacost.com(16) ​ ​ (0.05) ​ ​ — ​ ​ — Total Adjusted Items ​ ​ 3.31 ​ ​ 0.80 ​ ​ 1.80 ​ 1.17 ​ ​ ​ ​ ​ ​ ​ ​ Net earnings attributable to The Kroger Co. per diluted common share excluding the Adjusted Items ​ $ 4.85 ​ $ 4.47 ​ $ 4.76 $ 4.23 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Extra Week adjustment(14) adjustment(16) ​ ​ — ​ ​ — ​ ​ (0.20) ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ Net earnings attributable to The Kroger Co. per diluted common share excluding the Adjusted Items and the Extra Week adjustment ​ $ 4.85 ​ $ 4.47 ​ $ 4.56 $ 4.23 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Average numbers of common shares used in diluted calculation ​ 655 ​ ​ 720 ​ ​ 725 727

The Company monitors the carrying value of long-lived assets for potential impairment each quarter based on whether certain triggering events have occurred. These events include current period losses combined with a history of losses or a projection of continuing losses or a significant decrease in the market value of an asset. When a triggering event occurs, an impairment calculation is performed, comparing projected undiscounted future cash flows, utilizing current cash flow information and expected growth rates related to specific stores, asset groups, to the carrying value for those stores. asset groups. If the Company identifies impairment for long-lived assets to be held and used, the Company compares the assets’ current carrying value to the assets’ fair value. Fair value is based on current market values or discounted future cash flows. The Company records impairment when the carrying value exceeds fair market value. With respect to owned property and equipment held for disposal, the value of the property and equipment is adjusted to reflect recoverable values based on previous efforts to dispose of similar assets and current economic conditions. Impairment is recognized for the excess of the carrying value over the estimated fair market value, reduced by estimated direct costs of disposal. The Company recorded asset impairment and related charges totaling $2,684 for 2025. This includes store closure costs of $100, $77 net of tax, related to the planned closing of approximately 60 stores, impairment of intangible assets of $50, $34 net of tax, related to classifying a certain subsidiary as held for sale and charges of $2,497, $1,908 net of tax, related to our fulfillment network not meeting operational or financial expectations, the planned closing of three automated fulfillment facilities and the cancellation of a planned site (see Note 19 for additional details). The Company recorded asset impairments in the normal course of business totaling $98 in 2024, which includes $25, $19 net of tax, for property losses. The Company recorded asset impairments in the normal course of business totaling $69 and $68 in 2023 and 2022, respectively. 2023. Costs to reduce the carrying value of long-lived assets for each of the years presented have been included in the Consolidated Statements of Operations as Operating, operating, general and administrative (“OG&A”) expense.

The operating environment for the food retailing industry continues to be characterized by the proliferation of local, regional, and national retailers, including both retail and digital formats, and intense and ever-increasing competition ranging from online retailers, mass merchant, merchants, club stores, regional chains, deep discounters, dollar stores, and ethnic, specialty and natural food stores. With the proliferation of grocery delivery – both by retailers and third-party delivery service providers – customers have an even wider a wide range of retailers from which to choose. Customers continue to expect a great shopping experience both in-store and online. The industry continues to be shaped by e-commerce, cooking at home and prepared foods to go and other customer needs and preferences. Customers want to be able to shop on their own terms with zero compromise whether at brick and mortar stores or online, pick-up or delivery, all depending on their particular trip needs and other factors. If we do not appropriately or accurately anticipate customer preferences or fail to quickly adapt to these ever-changing preferences, our sales and profitability could be adversely affected. If we fail to meet the evolving needs of our customers, our ability to compete and our financial condition, results of operations or cash flows could be adversely affected. In addition, if we are not able to execute our plan to significantly increase our investment in major store projects, including new stores to accelerate sales growth and improve share, while supporting our long-term growth model, our financial condition, results of operations or cash flows could be adversely affected.

The Company made payments of $167 for the year ended January 31, 2026. These payments were recorded in “Other” within “Changes in operating assets and liabilities” in the Company’s Consolidated Statement of Cash Flows. As of January 31, 2026, the Company recorded $132 and $981 of the estimated settlement liability in “Other current liabilities” and “Other long-term liabilities,” respectively, in the Company’s Consolidated Balance Sheets related to these opioid settlements. As of February 1, 2025, the Company recorded $279 and $1,139 of the estimated settlement liability in “Other current liabilities” and “Other long-term liabilities,” respectively, in the Company’s Consolidated Balance Sheets related to these opioid settlements. As of 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 related to these opioid settlements.