Kroger 2015 Annual Report Download - page 131

Download and view the complete annual report

Please find page 131 of the 2015 Kroger annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 153

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153

A-57
(3) Net of tax of $13 for pension and postretirement defined benefit plans, as of January 31, 2015. Net
of tax of $32 for pension and postretirement defined benefit plans as of January 30, 2016.
The following table represents the items reclassified out of AOCI and the related tax effects for the
years ended January 30, 2016, January 31, 2015 and February 1, 2014:
For the year
ended
January 30,
2016
For the year
ended
January 31,
2015
For the year
ended
February 1,
2014
Gains on cash flow hedging activities
Amortization of unrealized gains and losses
on cash flow hedging activities (1) $1 $1 $2
Tax expense — — (1)
Net of tax 1 1 1
Pension and postretirement defined benefit
plan items
Amortization of amounts included in net
periodic pension expense (2) 85 35 98
Tax expense (32) (13) (36)
Net of tax 53 22 62
Total reclassifications, net of tax $ 54 $ 23 $ 63
(1) Reclassified from AOCI into interest expense.
(2) Reclassified from AOCI into merchandise costs and OG&A expense. These components are
included in the computation of net periodic pension costs (see Note 15 for additional details).
10. LEASES AND LEASE-FINANCED TRANSACTIONS
While the Company’s current strategy emphasizes ownership of store real estate, the Company
operates primarily in leased facilities. Lease terms generally range from 10 to 20 years with options to
renew for varying terms. Terms of certain leases include escalation clauses, percentage rent based on
sales or payment of executory costs such as property taxes, utilities or insurance and maintenance. Rent
expense for leases with escalation clauses or other lease concessions are accounted for on a straight-
line basis beginning with the earlier of the lease commencement date or the date the Company takes
possession. Portions of certain properties are subleased to others for periods generally ranging from one
to 20 years.
Rent expense (under operating leases) consists of:
2015 2014 2013
Minimum rentals $ 807 $ 795 $ 706
Contingent payments 18 16 13
Tenant income (102) (104) (106)
Total rent expense $ 723 $ 707 $ 613