Kroger 2015 Annual Report Download - page 149

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A-75
In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805):
Simplifying the Accounting for Measurement-Period Adjustments.” This amendment eliminates the
requirement to retrospectively account for adjustments made to provisional amounts recognized in a
business combination. This guidance will be effective for the Company in its fiscal year ending January
28, 2017. The implementation of this amendment is not expected to have a significant effect on the
Company’s Consolidated Financial Statements.
In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet
Classification of Deferred Taxes.” This amendment requires deferred tax liabilities and assets be
classified as noncurrent in a classified statement of financial position. This guidance will be effective
for the fiscal year ending January 28, 2017. Early adoption is permitted. The implementation of this
amendment will not have an effect on the Company’s Consolidated Statements of Operations and will not
have a significant effect on the Company’s Consolidated Balance Sheets.
In February 2016, the FASB issued ASU 2016-02, “Leases”, which provides guidance for the
recognition of lease agreements. The standard’s core principle is that a company will now recognize most
leases on its balance sheet as lease liabilities with corresponding right-of-use assets. This guidance
will be effective in the first quarter of fiscal year ending February 1, 2020. Early adoption is permitted
currently. The adoption of this ASU will result in a significant increase to the Company’s balance sheet
for lease liabilities and right-of-use assets, and the Company is currently evaluating the other effects of
adoption of this ASU on its Consolidated Financial Statements.
19. QUARTERLY DATA (UNAUDITED)
The two tables that follow reflect the unaudited results of operations for 2015 and 2014.
Quarter
2015
First
(16 Weeks)
Second
(12 Weeks)
Third
(12 Weeks)
Fourth
(12 Weeks)
Total Year
(52 Weeks)
Sales $33,051 $25,539 $25,075 $26,165 $109,830
Merchandise costs, including advertising,
warehousing, and transportation, excluding
items shown separately below 25,760 20,065 19,478 20,193 85,496
Operating, general and administrative 5,354 4,068 4,169 4,355 17,946
Rent 215 155 172 181 723
Depreciation and amortization 620 477 484 508 2,089
Operating profit 1,102 774 772 928 3,576
Interest expense 148 114 107 113 482
Earnings before income tax expense 954 660 665 815 3,094
Income tax expense 330 227 238 250 1,045
Net earnings including noncontrolling interests 624 433 427 565 2,049
Net earnings (loss) attributable to
noncontrolling interests 5 — (1) 6 10
Net earnings attributable to The Kroger Co. $ 619 $ 433 $ 428 $ 559 $ 2,039
Net earnings attributable to The Kroger Co. per
basic common share $ 0.63 $ 0.44 $ 0.44 $ 0.57 $ 2.09
Average number of shares used
in basic calculation 969 963 965 966 966
Net earnings attributable to The Kroger Co.
per diluted common share $ 0.62 $ 0.44 $ 0.43 $ 0.57 $ 2.06
Average number of shares used in
diluted calculation 983 977 979 980 980
Dividends declared per common share $ 0.093 $ 0.105 $ 0.105 $ 0.105 $ 0.408
Annual amounts may not sum due to rounding.
In the third quarter of 2015, the Company incurred a $80 charge to OG&A expenses for
contributions to the UFCW Consolidated Pension Plan.