This excerpt taken from the KR 8-K filed Mar 8, 2005.
Table 3. PREVIOUSLY REPORTED ESTIMATED EFFECT OF LABOR DISPUTES
(in millions, except per share amounts)
Items identified in this table should not be considered alternatives to net earnings, net cash provided by operating activities or any other Generally Accepted Accounting Principles (GAAP) measure of performance or liquidity. These items should not be reviewed in isolation or considered substitutes for Krogers financial results as reported in accordance with GAAP. Due to the nature of these items, as further described below, it is important to review them in conjunction with Krogers financial results reported in accordance with GAAP.
The following table summarizes the estimated effect of labor disputes on Krogers financial results that were previously reported for the periods presented. In the third quarter of 2004 we discontinued reporting the strike effect related to southern California.
Included in the estimated strike effect for prior periods were charges and credits that were recorded as components of merchandise costs and operating, general and administrative (OG&A) expense. The estimated effect of the labor disputes is the difference between actual results and budgeted results for strike-affected stores. The 2003 calculation includes the effect of both the southern California and the West Virginia strikes. The estimated strike effect includes all costs associated with the work stoppages, including expenses under the mutual strike assistance agreement in southern California entered into with Safeway Inc. and Albertsons, Inc., and post-strike recovery expenses in southern California through the second quarter of 2004.