Assignment Materials

• Form 10-K for The Kroger Co. for the fiscal year ended February 1, 2020 and filed with the SEC on April, 1, 2020
• 2020 Proxy (Schedule 14A) for The Kroger Co. and filed with the SEC on May 12, 2020
• The Kroger Co. Code of Business Ethics (posted on The Kroger Co. website)

Assignment Questions

1. Explain why Kroger has only one reportable segment?

2. What items are included in operating, general and administrative expenses (OG&A) and where are they reported?

3. In the Report of Independent Registered Public Accounting Firm, what opinions were given by management vs. outside accounting firm?

4. What policies and procedures are included in the company's internal control over financial reporting?

5. When are revenues recognized?

6. When are receivables from pharmacy sales expected to be collected and in what financial statements are they reported?

7. Explain the company's accounting for gift cards.

8. In the consolidated statement of operations, what items are included in merchandise costs?

9. How are vendor allowances accounted for?

10. What inventory methods does the company use?

11. How does the Company calculate earnings per share? What are the potentially dilutive securities, if any?

12. In the consolidated statement of cash flows, what is the largest line item in each of the following sections:

a) operating activities; b) investing activities; and c) financing activities?

13. What is the company's policy regarding related person transactions as disclosed in the 2020 proxy statement?

14. Under the Company's Code of Business Ethics, what accounting practices are required?

15. What did the Company disclose about the impact of COVID-19 on the financial statements?