The Kroger Company and Subsidiaries - Page 49

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                     Time-Based Accuracy Analysis for the KFS Division                                
                                    KFS DIVISION - RETAILERS' METHOD                                  
                                    Time-Allocated                      Difference As                 
                        Time-             Annual Shrinkage    Percent Of                              
                        Allocated   Actual KFS    Minus Actual        Annual Time-                    
                        Annual      Annual Tax    KFS Annual Tax      Allocated                       
                  Year  Shrinkage   Shrinkage     Shrinkage           Shrinkage                       
                  1984  $16,804,512   $16,152,686        $651,826 3.9%                                
                  1985   12,417,480    13,803,649      -1,386,170            -11.2%                   
                  1986   18,667,248    16,674,582       1,992,666             10.7%                   
                  1987   15,153,369    15,920,349        -766,980             -5.1%                   
                  1988   11,585,858    10,415,192       1,170,666             10.1%                   
                  1989   18,930,812    17,067,966       1,862,846              9.8%                   
                  1990   23,843,933    24,735,994        -892,061             -3.7%                   
                  1991   27,847,797    28,014,682        -166,885             -0.6%                   
                  1984- 145,251,008   142,785,100       2,465,908              1.7%                   
                  1991                                                                                
                                  KFS DIVISION - RESPONDENT'S METHOD                                  
                                    Time-Allocated                      Difference As                 
                        Time-             Annual Shrinkage    Percent Of                              
                        Allocated                 Minus Shrinkage     Annual Time-                    
                        Annual      IRS        Based on IRS        Allocated                          
                  Year  Shrinkage     Method      Method              Shrinkage                       
                  1984  $16,804,512   $16,719,232         $85,280 0.5%                                
                  1985   12,417,480    13,166,875        -749,396             -6.0%                   
                  1986   18,667,248    16,541,601       2,125,647             11.4%                   
                  1987   15,153,369    15,066,016          87,353              0.6%                   
                  1988   11,585,858     9,763,096       1,822,762             15.7%                   
                  1989   18,930,812    16,497,880       2,432,932             12.9%                   
                  1990   23,843,933    24,409,148        -565,215             -2.4%                   
                  1991   27,847,797    26,868,966         978,831              3.5%                   
                  1984- 145,251,008   139,032,814       6,218,194              4.3%                   
                  1991                                                                                
                      Sales-Based Accuracy Analysis for Florida Choice                                
                                  FLORIDA CHOICE - RETAILERS' METHOD                                  
                                    Actual        Sales-Allocated       Difference As                 
                  Sales-            Florida       Annual Shrinkage     Percent Of                     
                        Allocated   Choice        Minus Actual Florida  Annual Sales-                 
                        Annual      Annual Tax    Choice Annual        Allocated                      
                  Year   Shrinkage     Shrinkage     Shrinkage             Shrinkage                  
                  1984   $1,285,541   $1,189,507          $96,034               7.5%                  
                  1985    1,465,206    1,575,637         -110,430              -7.5%                  
                  1986    1,283,771    1,441,437         -157,666             -12.3%                  
                  1987    3,191,210    2,843,037          348,172              10.9%                  
                  1988    3,150,351    2,923,998          226,353               7.2%                  
                  1984-  10,376,079    9,973,616          402,463               3.9%                  
                  1988                                                                                





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