Kroger 2008 Annual Report Download - page 50

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The Kroger Co. Page 49
Stock Option Program
In addition to the Board-authorized repurchase programs, in December
1999, Kroger initiated a program to repurchase common stock to reduce
dilution resulting from our employee stock option plans. This program is
solely funded by proceeds from stock option exercises, including the tax
benefit from these exercises. We repurchased approximately $189 million,
$270 million, and $259 million under the stock option program during 2008,
2007, and 2006, respectively.
$ millions
FY 2006
FY 2007
FY 2008
Stock Option Program
$259
$270
$189
Board Repurchase Authorization
$374
$1,151
$448
TOTAL COST
$633
$1,421
$637
Fiscal Year
# Shares
Cost
Avg Cost Per Share
2006
29 million
$633 million
$22
2007
53 million
$1,421 million
$27
2008
24 million
$637 million
$26
TOTAL
106 million
$2,691 million
$25
DIVIDENDS
During 2006, Kroger’s Board of Directors adopted a dividend policy and
paid three quarterly dividends of $0.065 per share. During 2007, the
Company paid one quarterly dividend of $0.065 per share and three
quarterly dividends of $0.075 per share. During 2008, the Company paid
one quarterly dividend of $0.075 per share and three quarterly dividends of
$0.09 per share. Kroger paid a total of $227 million, $202 million, and $140
million in cash dividends during 2008, 2007, and 2006, respectively.
Kroger’s Board of Directors reviews the dividend annually, with an objective
of increasing the amount of the dividend over time. Any changes in the
dividend amount are made after consideration of the needs of the business,
the interests of shareholders, cash flow trends, and other factors.