Kroger employees in 14 divisions ratified an agreement to withdraw from the UFCW International Union-Industry Pension Fund.
- Kroger to pay the fund a withdrawal liability of $962m on pretax basis in installment payments over the next three years and contribute $27m to a transition reserve in the new variable annuity pension plan; on after-tax basis, the payments total ~$760m
- Kroger will incur a 4Q charge of about 98c/share on GAAP basis; the agreement doesn’t affect adjusted earnings for 2020
- Company “continues to generate strong free cash flow”
July 21, Kroger in Tentative Pact With UFCW Local Unions on...