Kroger 2015 Annual Report Download - page 119
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A-45
forma financial information is not necessarily indicative of the results that actually would have occurred
had the Harris Teeter merger been completed at the beginning of 2012, the Vitacost.com merger
completed at the beginning of 2013 or the Roundy’s merger completed at the beginning of 2014.
Fiscal year ended
January 30, 2016
Fiscal year ended
January 31, 2015
Fiscal year ended
February 1, 2014
Sales $113,308 $112,458 $103,584
Net earnings including noncontrolling interests 2,061 1,751 1,624
Net earnings attributable to noncontrolling interests 10 19 12
Net earnings attributable to The Kroger Co. $ 2,051 $ 1,732 $ 1,612
3. GOODWILL AND INTANGIBLE ASSETS
The following table summarizes the changes in the Company’s net goodwill balance through
January 30, 2016.
2015 2014
Balance beginning of year
Goodwill $ 4,836 $ 4,667
Accumulated impairment losses (2,532) (2,532)
2,304 2,135
Activity during the year
Mergers 420 169
Balance end of year
Goodwill 5,256 4,836
Accumulated impairment losses (2,532) (2,532)
$ 2,724 $ 2,304
In 2015, the Company acquired all the outstanding shares of Roundy’s, a supermarket retailer in the
Wisconsin and Chicagoland markets, resulting in additional goodwill totaling $414. Roundy’s is accounted
for as a single reporting unit.
In 2014, the Company acquired all the outstanding shares of Vitacost.com, an online retailer,
resulting in additional goodwill of $160.
See Note 2 for additional information regarding the Roundy’s and Vitacost.com mergers.
Testing for impairment must be performed annually, or on an interim basis upon the occurrence of
a triggering event or a change in circumstances that would more likely than not reduce the fair value of a
reporting unit below its carrying amount. The annual evaluations of goodwill and indefinite-lived intangible
assets were performed during the fourth quarter of 2015, 2014 and 2013 did not result in impairment.
Based on current and future expected cash flows, the Company believes goodwill impairments are
not reasonably likely. A 10% reduction in fair value of the Company’s reporting units would not indicate a
potential for impairment of the Company’s remaining goodwill balance.
In 2015, the Company acquired definite and indefinite lived intangible assets totaling approximately
$324 as a result of the merger with Roundy’s.
In 2014, the Company acquired definite and indefinite lived intangible assets totaling approximately
$81 as a result of the merger with Vitacost.com.