CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions Jan. 28, 2017 Jan. 30, 2016 Current assets Cash and temporary cash investments $ 322 $ 277 Store deposits in-transit 910 923 Receivables 1,649 1,734 FIFO inventory 7,852 7,440 LIFO reserve (1,291) (1,272) Prepaid and other current assets 898 790 Total current assets 10,340 9,892 Property, plant and equipment, net 21,016 19,619 Intangibles, net 1,153 1,053 Goodwill 3,031 2,724 Other assets 965 609 Total Assets 36,505 33,897 Current liabilities Current portion of long-term debt including obligations under capital leases and financing 2,252 2,370 obligations Trade accounts payable 5,818 5,728 Accrued salaries and wages 1,234 1,426 Deferred income taxes 251 221 Other current liabilities 3,305 3,226 Total current liabilities 12,860 12,971 Long-term debt including obligations under capital leases and financing obligations 11,825 9,709 Deferred income taxes 1,927 1,752 Pension and postretirement benefit obligations 1,524 1,380 Other long-term liabilities 1,659 1,287 Total Liabilities 29,795 27,099 Commitments and contingencies (see Note 13) SHAREHOLDERS' EQUITY Preferred shares, $100 per share, 5 shares authorized and unissued Common shares, $1 par per share, 2,000 shares authorized; 1,918 shares issued in 2016 and 2015 1,918 1,918 Additional paid-in capital 3,070 2,980 Accumulated other comprehensive loss (715) (680) Accumulated earnings 15,543 14,011 Common shares in treasury, at cost, 994 shares in 2016 and 951 shares in 2015 (13,118) (11,409) Total Shareholders' Equity - The Kroger Co. 6,698 6,820 Noncontrolling interests 12 (22) Total Equity 6,710 6,798 Total Liabilities and Equity $ 36,505 $ 33,897CONSOLIDATED STATEMENTS OF CASH FLOWS - USD (5] S in Millions Cash Flows from Operating Activities: Net earnings including noncontrolling interests Adjustments to reconcile net earnings including noncontrolling interests to net cash provided by operating activities: Depreciation and amortization Asset impairment charge LIFO charge Stock-based employee compensation Expense for Company-sponsored pension plans Deferred income taxes Other Changes In operating assets and liabilities net of effects from mergers of businesses: Store deposits in-transit Receivables Inventories Prepaid and other current assets Trade accounts payable Accrued expenses Income taxes receivable and payable Contribution to Company-sponsored pension plans Other Net cash provided by operating activities Cash Flows from Investing Activities: Payments for property and equipment, including payments for lease buyouts Proceeds from sale of assets Payments for mergers Other Net cash used by investing activities Cash Flows from Financing Activities: Proceeds from issuance of long-term debt Payments on long-term debt Net borrowings (payments) on commercial paper Dividends paid Excess tax benefits on stock-based awards Proceeds from issuance of capital stock Treasury stock purchases Investment in the remaining equity ofa noncontrolling interest Other Net cash used by financing activities Net increase (decrease) in cash and temporary cash investments Cash and temporary cash investments: Beginning of year End of year Reconciliation oi capital Investments: Payments for property and equipment, including payments for lease buyouts Payments for lease buyouts Changes in construction-in-progress payables Total capital investments, excluding lease buyouts Disclosure of cash ow information: Cash paid during the year for interest Cash paid during the year for income taxes 12 Months Ended Jan. 28, 2017 5 1,957 2,340 25 19 141 94 201 {28} 13 (110} (392} (172} 15 [118} 261 14 4,272 (3,699} 132 [401} 93 (3,375} 2,731 (1,355} 435 (429} 68 (1,756} (85} (352} 45 277 322 (3,699} 5 72 (3,622} 505 $ 55? Jan. 30, 2015 5 2,049 2,089 46 28 165 103 3 17 54 95 (59) (184) {23) 440 275 (359) (5) (109) 4,917 (3,349) 45 (153) (98) (3,579) 1,131 (1,245) (235) (335) 97 120 (703) 26) (92) (1,333) 9 263 277 (3,349) 35 {35) (3,349) 474 s 1,001 Jan. 31, 2015 5 1,747 1,948 37 147 155 55 73 72 (27) (141) (147) 2 135 249 (68) (22) 4,215 (2,331) 37 (252) (14) (3,050) 576 (375) 25 (333) 52 110 (1,233) (55) [1.288) (133) 401 268 (2,331) 135 (55) (2,752) 477 $ 941 CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions 3 Months Ended 4 Months Ended 12 Months Ended Jan. 28, 2017 Nov. 05, 2016 Aug. 13, 2016 Jan. 30, 2016 Nov. 07, 2015 Aug. 15, 2015 May 21, 2016 May 23, 2015 Jan. 28, 2017 Jan. 30, 2016 Jan. 31, 2015 CONSOLIDATED STATEMENTS OF OPERATIONS Sales $ 27,611 $ 26,557 $ 26,565 $ 26,165 $ 25,075 $ 25,539 $ 34,604 $ 33,051 $ 115,337 $ 109,830 $ 108,465 Merchandise costs, including advertising, warehousing, and transportation, excluding items shown 21,483 20,653 20,697 20,193 19,478 20,065 26,669 25,760 89,502 85,496 85,512 separately below Operating, general and administrative 1,483 4,443 4,473 4,355 4,169 4,068 5,779 5,354 19,178 17,946 17,161 Rent 215 199 205 181 172 155 262 215 881 723 707 Depreciation and amortization 572 549 525 508 484 477 694 620 2,340 2,089 1,948 Operating profit 858 713 665 928 772 774 1,200 1,102 3,576 3,137 Interest expense 126 124 116 113 107 114 155 148 522 482 488 Earnings before income tax expense 732 589 549 815 665 560 1,045 954 2,914 3,094 2,649 Income tax expense 230 206 171 250 238 227 350 330 957 1,045 902 Net earnings including noncontrolling interests 502 383 378 565 427 433 695 624 1,957 2,049 1,747 Net earnings (loss) attributable to noncontrolling interests (4) (8) (5) (1) (1) (18) 10 19 Net earnings attributable to The Kroger Co. $ 506 $ 391 $ 383 $ 559 $ 428 $ 433 $ 696 $ 619 $ 1,975 $ 2,039 $ 1,728 Net earnings attributable to The Kroger Co. per basic common share $ 0.54 $ 0.41 $ 0.40 $ 0.57 $ 0.44 $ 0.44 $ 0.72 $ 0.63 $ 2.08 $ 2.09 $ 1.74 Average number of common shares used in basic calculation 929 940 943 966 965 963 954 969 942 966 981 Net earnings attributable to The Kroger Co. per diluted common share $ 0.53 $ 0.41 $ 0.40 $ 0.57 $ 0.43 $ 0.44 $ 0.71 $ 0.62 $ 2.05 $ 2.06 $ 1.72 Average number of common shares used in diluted calculation 943 953 959 980 979 977 966 983 958 980 993 Dividends declared per common share $ 0.120 $ 0.120 $ 0.120 $ 0.105 $ 0.105 $ 0.105 $ 0.105 $ 0.093 $ 0.465 $ 0.408 $ 0.3501.ACCOUNTING POLICIES The following is a summary of the significant accounting policies followed in preparing these financial statements. Description of Business, Basis of Presentation and Principles of Consolidation The Kroger Co. (the "Company") was founded in 1883 and incorporated in 1902. As of January 28, 2017, the Company was one of the largest retailers in the world based on annual sales. The Company also manufactures and processes food for sale by its supermarkets. The accompanying financial statements include the consolidated accounts of the Company, its wholly-owned subsidiaries and the variable interest entities in which the Company is the primary beneficiary. Intercompany transactions and balances have been eliminated. On June 25, 2015, the Company's Board of Directors approved a two-for-one stock split of the Company's common shares in the form of a 100% stock dividend, which was effective July 13, 2015. All share and per share amounts in the Company's Consolidated Financial Statements and related notes have been retroactively adjusted to reflect the stock split for all periods presented Refer to Note 17 for a description of changes to the Consolidated Statement of Operations and Consolidated Statement of Cash Flows for a recently adopted accounting standard regarding the presentation of employee share- based compensation payments. Fiscal Year The Company's fiscal year ends on the Saturday nearest January 31. The last three fiscal years consist of the 52-week periods ended January 28, 2017, January 30, 2016 and January 31, 2015. Pervasiveness of Estimates The preparation of financial statements in conformity with generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of consolidated revenues and expenses during the reporting period is also required. Actual results could differ from those estimates. Cash, Temporary Cash Investments and Book Overdrafts Cash and temporary cash investments represent store cash and short-term investments with original maturities of less than three months. Book overdrafts are included in "Trade accounts payable" and "Accrued salaries and wages" in the Consolidated Balance Sheets. Deposits In-Transit Deposits in-transit generally represent funds deposited to the Company's bank accounts at the end of the year related to sales, a majority of which were paid for with debit cards, credit cards and checks, to which the Company does not have immediate access but settle within a few days of the sales transaction. Inventories Inventories are stated at the lower of cost (principally on a last-in, first-out "LIFO" basis) or market. In total, approximately 89% of inventories in 2016 and 95% of inventories in 2015 were valued using the LIFO method. Cost for the balance of the inventories, including substantially all fuel inventories, was determined usingthe first-in, first-out ("FIFO") method. Replacement cost was higher than the carrying amount by $1,291 at January 28, ZUI 'i' and 5|,2'i'2 at January 3-0, 20l6. The Company follows the Link-Chain, Dollar-Value LIFO method for purposes of calculating its LIFO charge or credit. The itemcost method of accounting to determine inventory cost before the LIFO adjustment is followed for substantially all store inventories at the Company's supermarket divisions. This method involves counting each item in inventory, assigning costs to each of these items based on the actual purchase costs (net of vendor allowances and cash discounts} of each item and recording the cost of items sold. The itemcost method of accounting allows for more accurate reporting of periodic inventory balances and enables management to more precisely manage inventory. In addition, substantially all ofthe Company's inventory consists ol'l'inished goods and is recorded at actual purchase costs (net of vendor allowances and cash discounts). The Company evaluates inventory shortages throughout the year based on acmal physical counts in its facilities. Allowances for inventory shortages are recorded based on the results ofthese counts- to prov ide for estimated shortages as of the nancial statement date. Property, Plan! and Equipment Property, plant and equipment are recorded at cost or, in the case of assets acquired in a business combination, at fair value. Depreciation and amortization expense, which includes the depreciation of assets recorded under capital leases, is computed principally using the straightline method over the estimated useful lives of individual assets. Buildings and land improvements are depreciated based on lives varying from It} to 40 years. All new purchases of store equipment are assigned lives varying from three to nine years. Leasehold improvements are amortized over the shorter of the lease term to which they relate, which generally varies from four to 25 years, or the useful life of the asset. Food production plant and distribution center equipment is depreciated over lives varying from three to 15 years. Information technology assets are generally depreciated over five years. Depreciation and amortization expense was $2,340 in 2016, $2,039 in 2015 and $1,943 in 2014. Interest costs on signicant projects constructed for the Company's own use are capitalized as part ofthe costs ofthe newly constructed facilities Upon retirement or disposal of assets, the cost and related accumulated depreciation and amortization are removed from the balance sheet and any gain or loss is reected in net earnings. Refer to Note 4 for further information regarding the Company's property, plant and equipment. Deferred Rem The Company recognizes rent holidays, including the time period during which the Company has access to the property for construction of buildings or improvements and escalating rent provisions on a straight-line basis over the term of the lease. The deferred amount is included in "Other current liabilities\" and \"Other long-term liabilities" on the Company's Consolidated Balance Sheets. merited? The Company reviews goodwill for impairment during the fourth quarter of each year, and also upon the occurrence of a triggering event. The Company performs reviews of each of its operating divisions and variable interest entities (collectively, "reporting units") that have goodwill balances. Generally, fair value is determined using a multiple ofearnings, or discounted projected future cash flows, and is compared to the carrying value oia reporting unit for purposes of identifying potential impairment. Projected future cash ows are based on management's knowledge of the current operating environment and expectations for the future. If potential for impairment is identified, the fair value of a reporting unit is measured against the fair value ofits underlying assets and liabilities, excluding goodwill, to estimate an implied fair value of the reporting unit's goodwill. Goodwill impairment is recognized for any excess of the carrying value of the reporting unit's goodwill over the irnp lied fair value. Results ofthe goodwill impairment reviews performed during 2016, 2015 and 2014 are summarized in Note 3. Impar'm em ofLongLived Assets The Company monitors the carrying value of long-lived assets for potential impairment each quarter based on whether certain triggering events have occurred. These events include current period losses combined with a history of losses or a projection of continuing losses or a signicant decrease in the market value of an asset. When a triggering event occurs. an impairment calculation is performed, comparing projected undiscounted future cash ows, utilizing current cash ow information and expected growth rates related to specic stores, to the canying value for those stores. If the Company identies impairment for long-lived assets to be held and used, the Company compares the assets' current carrying value to the assets' fair value. Fair value is based on current market values or discounted future cash flows. The Company records impairment when the carrying value exceeds fair market value. With respect to owned property and equipment held for disposal, the value ofthe property and equipment is adjusted to reect recoverable values based on previous efforts to dispose of similar assets and current economic conditions. lmpairrnent is recognized for the excess of the carrying value over the estimated fair market value, reduced by estimated direct costs of disposal. The Company recorded asset impairments in the normal course of business totaling $26, $46 and $37 in 2016, 2015 and 20M, respectively. Costs to reduce the carrying value of long lived assets for each of the years presented have been included in the Consolidated Statements of Operations as \"Operating, general and admini strative" expense. Store Closing Costs The Company provides for closed store liabilities relating to the present value of the estimated remaining non cancellablc lease payments after the closing date, net of estimated subtenant income. The Company estimates the net lease liabilities using a discount rate to calculate the present value of the remaining net rent payments on closed stores. The closed store lease liabilities usually are paid over the lease terms associated with the closed stores, which generally have remaining terms ranging from one to 20 years. Adjustments to closed store liabilities primarily relate to changes in subtenant income and actual exit costs differing from original estimates. Adjustments are made for changes in estimates in the period in which the change becomes known. Store closing liabilities are reviewed quarterly to ensure that any accrued amount that is not a sufcient estimate of future costs is adjusted to income in the proper period. Owned stores held for disposal are reduced to their estimated net realizable value. Costs to reduce the carrying values of property, equipment and leasehold improvements are accounted for in accordance with the Company's policy on impairment of longlived assets. Inventory writedowns, if any, in connection with store closings, are classified in the Consolidated Statements of Operations as \"Merchandise costs." Costs to transfer inventory and equipment from closed stores are expenscd as incurred. The current portion of the future lease obligations of stores is included in \"Other current liabilities," and the long term portion is included in \"Other longterm liabilities" in the Consolidated Balance Sheets. Interest Rate Risk Management The Company uses derivative instruments primarily to manage its exposure to changes in interest rates. The Company's current program relative to interest rate protection and the methods by which the Company accounts for its derivative instruments are described in Note 'l. Benet Plans and MainEmplqver Pension Plans The Company recognizes the funded status of its retirement plans on the Consolidated Balance Sheets. Actuarial gains or losses, prior service costs or credits and transition obligations that have not yet been recognized as part of net periodic benefit cost are required to be recorded as a component of Accumulated Other Comprehensive Income ("A00\"). All plans are measured as of the Company's scal year end. The determination of the obligation and expense for Companysponsored pension plans and other post retirement benets is dependent on the selection of assumptions used by actuaries and the Company in caic ulating these amounts. These assumptions are described in Note IS and include, among others, the discount rate, the expected longterm rate of return on plan assets, mortality and the rates of increase in compensation and health care costs. Acmal results that differ from the assumptions are accumulated and amortized over iture periods and. therefore, generally affect the recognized expense and recorded obligation in future periods. While the Company believes that the assumptions are appropriate, signicant differences in actual experience or signicant changes in assumptions may materially affect the pension and other postretirement obligations and future expense. The Company also participates in various multi-employcr plans for substantially all union employees. Pension expense for these plans is recognized as contributions are funded or when commitments are probable and reasonably estimable. in accordance with OMB. Refer to Note [6 for additional information regarding the Company's participation in these various multiemploycr pension plans. The Company administers and makes contributions to the employee 401(k) retirement savings accounts. Contributions to the employee 401(k) retirement savings accounts are expensed when contributed. Refer to Note 15 for additional information regarding the Company's benefit plans. Share Based Compensation The Company accounts for stock options under fair value recognition provisions. Under this method. the Company recognizes compensation expense for all sharebased payments granted. The Company recognizes share based compensation expense, net ol'an estimated forfeiture rate, over the requisite service period ol'lhe award. In addition, the Company records expense for restricted stock awards in an amount equal to the fair market value of the underlying stock on the grant date of the awarid1 over the period the awards lapse. Excess tax benets related to sharebased payments are recognized in the provision for income taxes. Refer to Note l2 for additional information regarding the Company's stock based compensation. Dgtrred Income Taxes Deferred income taxes are recorded to reect the tax consequences of differences between [he lax basis of assets and liabilities and their nancial reporting basis. Refer to Note 5 for the types of differences that give rise to significant portions of deferred income tax assets and liabilities. Deferred income taxes are classified as a net current or noncurrcnt asset or liability based on the classication of the related asset or liability for nancial reporting purposes. A deferred tax asset or liability that is not related to an asset or liability for financial reporting is classified according to the expected reversal date. Uncertain Tar Positions The Company reviews the tax positions taken or expected to be taken on tax returns to determine whether and to what extent a benefit can be recognized in its consolidated financial statements. Refer to Note 5 for the amount of unrecognized tax benets and other related disclosures related to uncertain tax positions. Various taxing authorities periodically audit the Company's income tax returns. These audits include questions regarding the Company's tax ling positions, including the tinting and amount of deductions and the allocation of income to various tax jurisdictions. In evaluating the exposures connected with these various tax ling positions, including state and local taxes, the Company records allowances for probable exposures. A number of years may lapse before a particular matter, for which an allowance has been established, is audited and illy resolved. As of January 28' 201?, the Internal Revenue Service had concluded its examination of the Company's 2012 and 2013 federal tax returns. The assessth of the Company's tax position relies on the judgment of management to estimate the exposures associated with the Company's various ti ling positions. SerifInsurance Costs The Company is primarily selfinsured for costs related to workers' compensation and general liability claims. Liabilities are actuatiaily delcnnined and are recognized based on claims filed and an eslimate ofclaims incurred but not reported. The liabilities for workers' compensation claims are accounted for on a present value basis. The Company has purchased stop~loss coverage to limit its exposure to any signicant exposure on a per claim basis. The Company is insured for covered costs in excess ofthcse per claim limits. The following table summarizes the changes in the Company's selfinsurance liability through January 28, 20] 7. 1016 2015 1014 Beginning balance 5 639 S 599 3 569 Expense 263 234 246 Claim payments (220) (225) (216) Assumed from mergers 3| Ending balance 682 639 599 Less: Current portion 2292 223! 213 Long-term portion S 453 S 416 5 386 The current portion of the self-insured liability is included in \"Other current liabilities," and the longth portion is included in \"Other longterm liabilities" in the Consolidated Balance Sheets. The Company maintains surety bonds related to self-insured workers' compensation claims. These bonds are required by most states in which the Company is selfinsured forworkers' compensation and are placed with third- party insurance providers to insure payment of the Company's obligations in the event the Company is unable to meet its claim payment obligations up to its self~insurod retention levels. These bonds do not represent liabilities of the Company, as the Company has recorded reserves for the claim costs. The Company is similarly selfinsured for propertyrelated losses. The Company maintains stop loss coverage to limit its property loss exposures including coverage for earthquake, wind, ood and other catastrophic events. Revenue Recognition Revenues from the sale of products are recognized at the point ot'sale. Discounts provided to customers by the Company at the time of sale. including those provided in connection with loyalty cards, are recognized as a reduction in sales as the products are sold. Discounts provided by vendors, usually in the form of paper coupons, are not recognized as a reduction in sales provided the coupons are redeemable at any retailer that accepts coupons. The Company records a receivable from the vendor for the difference in sales price and cash received. Pharmacy sales are recorded when product is provided to the customer. Sales taxes are recorded as other accrued liabilities and not as a component of sales. The Company does not recognize a sale when it sells its own gift cards and gift certicates. Rather, it records a deferred liability equal to the amount received. A sale is then recognized when the gift card or gi certificate is redeemed to purchase the Company's products. In 2016, the Company began recognizing gift card and gift certicate breakage under the proportional method, where recognition of breakage income is based upon the historical run-off rate ofunredeerned gi cards and gift certicates. Prior to 2016, gift card and gift certicate breakage was recognized under the remote method, where breakage income is recognized when redemption is unlikely to occur and there is no legal obligation to remit the value of the unredeemed gift cards or gift certificates. The amount ot'breakagc was not material for 2016, 2015 and 2014. Merchandise Costs The \"Merchandise costs\" line item ofthe Consolidated Statements of Operations includes product costs, net of discounts and allowances; advertising costs (see separate discussion below); inbound freight charges; warehousing costs, including receiving and inspection costs; transportation costs; and food production and operational costs. Warehousing, transportation and manufacturing management salaries are also included in the \"Merchandise costs\" line item; however, purchasing management salaries and administration costs are included in the "Operating, general and administrative" line item along with most of the Company's other managerial and administrative costs. Rent expense and depreciation and amortization expense are shown separately in the Consolidated Statements of Operations. Warehousing and transportation costs include distribution center direct wages, transportation direct wages, repairs and maintenance, utilities, inbound freight and, where applicable, third party warehouse management fees. These costs are recognized in the periods the related expenses are incurred. The Company believes the classication of costs included in merchandise costs could vary widely throughout the industry. The Company's approach is to include in the \"Merchandise costs" line item the direct, net costs of acquiring products and making them available to customers in its stores. The Company believes this approach most accurately presents the actual costs ofpreduets sold. The Company recognizes all vendor allowances as a reduction in merchandise costs when the related product is sold. When possible, vendor allowances are applied to the related product cost by item and, therefore, reduce the carrying value ol'inventory by item. When the items are sold, the vendor allowance is recognized. When it is not possible, due to systems constraints, to allocate vendor allowances to the product by item, vendor allowances are recognized as a reduction in merchandise costs based on inventory turns and, therefore, recognized as the product is sold. Advertising Costs The Company's advertising costs are recognized in the periods the related expenses are incurred and are included in the \"Merchandise costs\" line item of the Consolidated Statements of Operations. The Company's pre- tax advertising costs totaled 57]? in 2016, $679 in 2015 and $643 in 2014. The Company does not record vendor allowances for cooperative advertising as a reduction of advertising expense. Consolidated Statements ofCash Flows For purposes of the Consolidated Statements of Cash Flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be temporary cash investments. Segre en tr The Company operates supermarkets, multi-department stores, jewelry stores, and convenience stores throughout the United States. The Company's retail operations, which represent over 98% of the Company's consolidated sales and EBITDA, are its only reportable segment. The Company's operating divisions have been aggregated into one reportable segment due to the operating divisions having similar economic characteristics with similar long-term nancial performance. In addition, the Company's operating divisions offer customers similar products, have similar distribution methods, operate in similar regulatory environments, purchase the majority of the merchandise for retail sale from similar (and in many cases identical) vendors on a coordinated basis from a centralized location, serve similar types ofcustomers, and are allocated capital from a centralized location. Operating divisions are organized primarily on a geographical basis so that the operating division management team can be responsive to local needs of the operating division and can execute company strategic plans and initiatives throughout the locations in the operating division. The geographical separation is the primary differentiation between these operating divisions. The Company's geographic basis of organization reflects the manner in which the business is managed and how the Company's Chief Executive Ofcer, who acts as the Company's chief operating decision maker, assesses performance internally. All of the Company's operations are domestic. The following table presents sales revenue by type of product for 2016, 2015 and 2014. 2016 2015 2014 Amount %% of total Amount To of total Amount % of total Non Perishable (1) $ 60,220 52.2 % $ 57,187 52.1 % $ 54,392 50.1 % Perishable () 27,666 24.0% 25,726 23.4 % 24,178 22.3 % Fuel 13,979 12.1 % 14,802 13.5 % 18,850 17.4 % Pharmacy 10,432 9.0% 9,778 8.9% 9,032 8.3% Other (3) 3,040 2.7% 2,337 2.1 % 2,013 1.9% Total Sales and other revenue $115,337 100 % $109,830 100 % $108,465 100 % (1) Consists primarily of grocery, general merchandise, health and beauty care and natural foods. (2) Consists primarily of produce, floral, meat, seafood, deli, bakery and fresh prepared. (3) Consists primarily of sales related to jewelry stores, food production plants to outside customers, data analytic services, variable interest entities, specialty pharmacy, in-store health clinics, digital coupon services and online sales by Vitacost.com