discussion

Management Discussion and Analysis is required in annual reports filed with the Securities and Exchange Commission. It includes management's analysis of current operations and its plans for the future. Typical items included in the MD&A are as follows:

• Management's analysis and explanations of any significant changes between the current and prior years' financial statements.
• Important accounting principles or policies that could affect interpretation of the financial statements, including the effect of changes in accounting principles or the adoption of new accounting principles.
• Management's assessment of the company's liquidity and the availability of capital to the company.
• Significant risk exposures that might affect the company.
• Any “off-balance-sheet” arrangements such as leases not included directly in the financial statements. Such arrangements are discussed in advanced accounting courses and textbooks.

Using Google, enter Kroger Annual Report in the search field. Access the Kroger Annual Report and go to the MD&A section. Comment on findings similar to the notes listed above.