| FAIR VALUE MEASUREMENTS |
NOTE C – FAIR VALUE MEASUREMENTS “Accounting Standards Codification” (“ASC”) Topic 820, Fair Value Measurements and Disclosure, defines fair value, establishes a framework for measuring fair value, and establishes a fair value hierarchy which prioritizes the inputs to valuation techniques. Fair value is the price that would be received in an asset sale or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement assumes that the transaction in an asset sale or to transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market. Valuation techniques that are consistent with the market, income or cost approach, as specified by ASC Topic 820, are used to measure fair value. The standard describes three levels of inputs that may be used to measure fair value: | | Level 1 – | Inputs to the valuation methodology are quoted prices available in active markets for identical investments as of the reporting date; | Level 2 – | Inputs to the valuation methodology are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value can be determined through the use of models or other valuation methodologies; and | Level 3 – | Inputs to the valuation methodology are unobservable inputs in situations where there is little or no market activity for the asset or liability and the reporting entity makes estimates and assumptions related to the pricing of the asset or liability including assumptions regarding risk. |
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following is a description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Kroger Shares This investment is valued at the closing price reported on the active market on which the individual security is traded. This investment is classified within Level 1 of the valuation hierarchy. Mutual Funds These investments are publicly traded investment vehicles, which are valued daily at the closing price reported on the active market on which the individual securities are traded. These investments are classified within Level 1 of the valuation hierarchy. Common Collective Trust Funds These investments are public investment vehicles valued using the NAV provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the funds, minus its liabilities, and then divided by the number of shares outstanding. The fair market value of the Common Collective Trust Funds have been established using the NAV under the practical expedient approach and therefore are not assigned to a level in the hierarchy table. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while plan management believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the methodologies used at December 31, 2025 and 2024. The following table sets forth by level, within the fair value hierarchy, the plan’s investments measured at fair value on a recurring basis as of December 31, 2025 and 2024. | | | | | | | | | | | | | As of December 31, 2025 | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Total | Mutual funds | | $ | 1,596,107 | | $ | — | | $ | — | | $ | 1,596,107 | Kroger Shares | | | 14,884,550 | | | — | | | — | | | 14,884,550 | Total investments in fair value hierarchy | | $ | 16,480,657 | | $ | — | | $ | — | | $ | 16,480,657 | Investments measured at NAV | | | | | | | | | | | | 1,477,343,499 | Total investments at fair value | | | | | | | | | | | $ | 1,493,824,156 |
| | | | | | | | | | | | | As of December 31, 2024 | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Total | Mutual funds | | $ | 150,559,075 | | $ | — | | $ | — | | $ | 150,559,075 | Kroger Shares | | | 14,991,270 | | | — | | | — | | | 14,991,270 | Total investments in fair value hierarchy | | $ | 165,550,345 | | $ | — | | $ | — | | $ | 165,550,345 | Investments measured at NAV | | | | | | | | | | | | 1,133,163,928 | Total investments at fair value | | | | | | | | | | | $ | 1,298,714,273 |
Fair Value Estimated Using NAV per Share The following table at December 31, 2025 and 2024 sets forth a summary of the Plan’s investments with a reported estimated fair value using NAV per share: | | | | | | | | | | | | | | | | | | Fair Value at | | Fair Value at | | | | | | Other | | Redemption | | | December 31, | | December 31, | | Unfunded | | Redemption | | Redemption | | Notice | | | 2025 | | 2024 | | Commitment | | Frequency | | Restrictions | | Period | TRP Retirement Blend 2005 | | $ | 3,177,238 | | $ | 3,085,870 | | $ | 0 | | Daily | | None | | 30-day advance written notice | TRP Retirement Blend 2010 | | $ | 4,690,958 | | $ | 4,514,315 | | $ | 0 | | Daily | | None | | 30-day advance written notice | TRP Retirement Blend 2015 | | $ | 12,567,771 | | $ | 12,017,921 | | $ | 0 | | Daily | | None | | 30-day advance written notice | TRP Retirement Blend 2020 | | $ | 46,176,149 | | $ | 45,819,376 | | $ | 0 | | Daily | | None | | 30-day advance written notice | TRP Retirement Blend 2025 | | $ | 113,521,310 | | $ | 112,810,720 | | $ | 0 | | Daily | | None | | 30-day advance written notice | TRP Retirement Blend 2030 | | $ | 185,200,542 | | $ | 166,716,462 | | $ | 0 | | Daily | | None | | 30-day advance written notice | TRP Retirement Blend 2035 | | $ | 177,346,219 | | $ | 147,935,615 | | $ | 0 | | Daily | | None | | 30-day advance written notice | TRP Retirement Blend 2040 | | $ | 168,283,839 | | $ | 143,574,054 | | $ | 0 | | Daily | | None | | 30-day advance written notice | TRP Retirement Blend 2045 | | $ | 150,955,908 | | $ | 124,648,029 | | $ | 0 | | Daily | | None | | 30-day advance written notice | TRP Retirement Blend 2050 | | $ | 99,703,487 | | $ | 80,164,573 | | $ | 0 | | Daily | | None | | 30-day advance written notice | TRP Retirement Blend 2055 | | $ | 103,550,579 | | $ | 83,861,395 | | $ | 0 | | Daily | | None | | 30-day advance written notice | TRP Retirement Blend 2060 | | $ | 60,403,322 | | $ | 46,893,925 | | $ | 0 | | Daily | | None | | 30-day advance written notice | TRP Retirement Blend 2065 | | $ | 43,240,996 | | $ | 26,564,109 | | $ | 0 | | Daily | | None | | 30-day advance written notice | Retirement Blend 2020 Trust | | $ | 0 | | $ | 237 | | $ | 0 | | Daily | | None | | 30-day advance written notice | EARNEST SMID Cap Core Class I | | $ | 18,452,903 | | $ | 19,932,404 | | $ | 0 | | Daily | | None | | None noted | GMO Quality An | | $ | 150,128,383 | | $ | 0 | | $ | 0 | | Daily | | None | | None noted | Harding Loevner Intl Eq | | $ | 20,764,461 | | $ | 17,165,801 | | $ | 0 | | Daily | | None | | None noted | Loomis Sayles Core Plus Fixed Income | | $ | 15,431,782 | | $ | 15,057,136 | | $ | 0 | | Daily | | None | | None noted | State Street Global All Cap Eq ex-US | | $ | 6,596,685 | | $ | 2,043,571 | | $ | 0 | | Daily | | None | | “as of” basis | State Street SMMID Cap Index Class II | | $ | 6,614,629 | | $ | 4,352,110 | | $ | 0 | | Daily | | None | | “as of” basis | State Street S&P 500 Index | | $ | 84,228,565 | | $ | 70,737,211 | | $ | 0 | | Daily | | None | | “as of” basis | State Street US Bond Index | | $ | 6,307,773 | | $ | 5,269,094 | | $ | 0 | | Daily | | None | | “as of” basis |
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