secwatch.observer — SEC 8-K summary
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Issuer:     KROGER CO (KR)
CIK:        0000056873
Form:       8-K
Filed at:   2023-09-08T23:59:59+00:00
Accession:  0001104659-23-099123
Event type: m_and_a
Sentiment:  neutral
Materiality: 0.85
Item codes: 2.02, 7.01, 8.01, 9.01
LLM model:  deepseek-v4-flash:cloud@v2

Kroger Q2 adj EPS $0.96, $1.4B opioid charge, $1.9B C&S divestiture
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- Q2 sales $33.9B (-2% YoY); ID sales +1.0%; operating loss ($479M) incl $1.4B opioid charge; adj EPS $0.96 vs $0.90 last year.
- Opioid settlement: up to $1.2B to states/subdivisions, $36M to tribes over 11 yrs, $177M fees; after-tax NPV ~$870M; charge in Q2.
- Divestiture: definitive agreement with C&S for 413 stores, 8 DCs, 2 offices, 5 private labels; $1.9B cash; option for up to 237 more stores.
- FY2023 guidance reaffirmed: adj EPS $4.45-$4.60, adj FIFO operating profit $5.0-$5.2B, capex $3.4-$3.6B.
- Net total debt to adj EBITDA ratio 1.31 (target 2.30-2.50); merger on track for early 2024 subject to FTC clearance.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/56873/000110465923099123/0001104659-23-099123-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/56873/000110465923099123/tm2325655d1_8k.htm
  HTML page:      https://secwatch.observer/filing/0001104659-23-099123

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer