Kroger Company (KR)

As of February 2, 2008, the Company operated more than 3,600 owned or leased supermarkets, convenience stores, fine jewelry stores, distribution warehouses and food processing facilities through divisions, subsidiaries or affiliates. These facilities are located throughout the United States. A majority of the properties used to conduct the Company’s business are leased.

The Company generally owns store equipment, fixtures and leasehold improvements, as well as processing and manufacturing equipment. The total cost of the Company’s owned assets and capitalized leases at February 2, 2008, was $22,436 million while the accumulated depreciation was $9,938 million.

Leased premises generally have base terms ranging from ten-to-twenty years with renewal options for additional periods. Some options provide the right to purchase the property after conclusion of the lease term. Store rentals are normally payable monthly at a stated amount or at a guaranteed minimum amount plus a percentage of sales over a stated dollar volume. Rentals for the distribution, manufacturing and miscellaneous facilities generally are payable monthly at stated amounts. For additional information on lease obligations, see Note 8 to the Consolidated Financial Statements.

As
of February 2, 2008, the Company operated more than 3,600 owned or leased
supermarkets, convenience stores, fine jewelry stores, distribution warehouses
and food processing facilities through divisions, subsidiaries or affiliates.
These facilities are located throughout the United States. A majority of the
properties used to conduct the Company’s business are leased.

The Company generally owns store equipment, fixtures and
leasehold improvements, as well as processing and manufacturing equipment. The
total cost of the Company’s owned assets and capitalized leases at February 2,
2008, was $22,436 million while the accumulated depreciation was $9,938
million.

Leased
premises generally have base terms ranging from ten-to-twenty years with
renewal options for additional periods. Some options provide the right to
purchase the property after conclusion of the lease term. Store rentals are
normally payable monthly at a stated amount or at a guaranteed minimum amount
plus a percentage of sales over a stated dollar volume. Rentals for the
distribution, manufacturing and miscellaneous facilities generally are payable
monthly at stated amounts. For additional information on lease obligations, see
Note 8 to the Consolidated Financial Statements.

ITEM 2.     PROPERTIES.

     As of February 3, 2007, the Company operated more than 3,500 owned or leased supermarkets, convenience stores, fine jewelry stores, distribution warehouses and food processing facilities through divisions, subsidiaries or affiliates. These facilities are located throughout the United States. A majority of the properties used to conduct the Company’s business are leased.

     The Company generally owns store equipment, fixtures and leasehold improvements, as well as processing and manufacturing equipment. The total cost of the Company’s owned assets and capitalized leases at February 3, 2007, was $20,982 million while the accumulated depreciation was $9,203 million.

     Leased premises generally have base terms ranging from ten-to-twenty years with renewal options for additional periods. Some options provide the right to purchase the property after conclusion of the lease term. Store rentals are normally payable monthly at a stated amount or at a guaranteed minimum amount plus a percentage of sales over a stated dollar volume. Rentals for the distribution, processing and miscellaneous facilities generally are payable monthly at stated amounts. For additional information on lease obligations, see Note 8 to the Consolidated Financial Statements.