KROGER CO Goodwill & Intangibles Disclosure
2. | GOODWILL AND INTANGIBLE ASSETS |
The following table summarizes the changes in the Company’s net goodwill balance through January 31, 2026:
| 2025 | | 2024 |
| |||
Balance beginning of year | |||||||
Goodwill | $ | 5,385 | $ | 5,737 | |||
Accumulated impairment losses |
| (2,711) |
| (2,821) | |||
Subtotal |
| 2,674 |
| 2,916 | |||
Activity during the year | |||||||
Held for sale adjustment (see Note 7) |
| (79) |
| — | |||
Sale of Kroger Specialty Pharmacy (see Note 17) | — | (242) | |||||
Balance end of year | |||||||
Goodwill |
| 5,146 |
| 5,385 | |||
Accumulated impairment losses |
| (2,551) |
| (2,711) | |||
Total Goodwill | $ | 2,595 | $ | 2,674 | |||
Testing for impairment is 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 evaluation of goodwill and indefinite-lived intangible assets was performed during the fourth quarter of 2025, 2024, and 2023. The evaluation did not result in impairment in 2025 or 2023. The evaluation resulted in an impairment of indefinite-lived trade name assets in 2024.
The following table summarizes the Company’s intangible assets balance through January 31, 2026:
2025 | 2024 |
| |||||||||||
| Gross carrying | | Accumulated | | Gross carrying | | Accumulated |
| |||||
amount | amortization(1) | amount | amortization(1) |
| |||||||||
Definite-lived pharmacy prescription files | $ | 289 | $ | (203) | $ | 247 | $ | (183) | |||||
Definite-lived customer relationships(2) | — | — | 148 | (145) | |||||||||
Definite-lived other(2) |
| 67 |
| (55) |
| 106 |
| (92) | |||||
Indefinite-lived trade name |
| 611 |
| — |
| 655 |
| — | |||||
Indefinite-lived liquor licenses |
| 99 |
| — |
| 98 |
| — | |||||
Total | $ | 1,066 | $ | (258) | $ | 1,254 | $ | (420) | |||||
| (1) | Pharmacy prescription files are amortized to merchandise costs, customer relationships are amortized to depreciation and amortization expense and other intangibles are amortized to OG&A expense and depreciation and amortization expense. |
| (2) | The reduction of these definite-lived intangible assets between 2025 and 2024 are primarily the result of the sale of Vitacost.com and the classification of a certain subsidiary as held for sale in 2025. |
Based on the results of the Company’s impairment assessment in the fourth quarter of , a $30, $24 net of tax, impairment was recognized for indefinite-lived trade names.
Amortization expense associated with intangible assets totaled approximately $30, $30, and $42, during fiscal years 2025, 2024, and 2023, respectively. Future amortization expense associated with the net carrying amount of definite-lived intangible assets for the years subsequent to 2025 is estimated to be approximately:
2026 | | $ | 18 |
2027 |
| 17 | |
2028 |
| 17 | |
2029 |
| 16 | |
2030 |
| 14 | |
Thereafter |
| 16 | |
Total future estimated amortization associated with definite-lived intangible assets | $ | 98 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 31, 2026 | Showing above |
| 2025 | Apr 1, 2025 | |
| 2024 | Apr 2, 2024 | |
| 2023 | Mar 28, 2023 | |
| 2022 | Mar 29, 2022 | |
| 2021 | Mar 30, 2021 | |
| 2020 | Apr 1, 2020 | |
| 2019 | Apr 2, 2019 | |
| 2018 | Apr 3, 2018 | |
| 2017 | Mar 28, 2017 | |
| 2016 | Mar 29, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.