Kroger 2012 Annual Report Download - page 37

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35
(14)฀ Performance฀units฀are฀earned฀as฀of฀the฀last฀day฀of฀fiscal฀year฀2013,฀to฀the฀extent฀performance฀goals฀are฀
achieved. Because the awards are not currently determinable, the number of units and value as of fiscal
year-end in the table reflect the probable outcome of such conditions. The maximum number of units
achievable and the value of the maximum number of units as of fiscal year-end if such maximum would
be฀achieved฀are฀as฀follows:฀Mr.฀Dillon:฀70,900฀units;฀$2,088,714;฀Mr.฀Schlotman:฀11,410฀units;฀$336,139;฀
Mr.฀ McMullen:฀ 22,860฀ units;฀ $673,456;฀ Mr.฀ Heldman:฀ 10,850฀ units;฀ $319,641;฀ and฀ Ms.฀ Barclay:฀ 8,260฀
units; $243,340.
(15)฀ Performance฀units฀are฀earned฀as฀of฀the฀last฀day฀of฀fiscal฀year฀2014,฀to฀the฀extent฀performance฀goals฀are฀
achieved. Because the awards are not currently determinable, the number of units and value as of fiscal
year-end in the table reflect the probable outcome of such conditions. The maximum number of units
achievable and the value of the maximum number of units as of fiscal year-end if such maximum would
be฀achieved฀are฀as฀follows:฀Mr.฀Dillon:฀74,645฀units;฀$2,208,372;฀Mr.฀Schlotman:฀13,660฀units;฀$404,131;฀
Mr.฀ McMullen:฀ 24,360฀ units;฀ $720,691;฀ Mr.฀ Heldman:฀ 12,350฀ units;฀ $365,375;฀ and฀ Ms.฀ Barclay:฀ 8,260฀
units; $244,372.
From 1997 through 2002, Kroger granted to the named executive officers performance-based nonqualified
stock฀options.฀These฀options,฀having฀a฀term฀of฀ten฀years,฀vest฀six฀months฀ prior฀to฀their฀date฀of฀expiration฀
unless฀earlier฀vesting฀because฀Kroger’s฀stock฀price฀achieved฀the฀specified฀annual฀rate฀of฀appreciation฀set฀forth฀
in฀the฀stock฀option฀agreement.฀That฀rate฀ranged฀from฀13%฀to฀16%.฀All฀performance-based฀options฀have฀vested฀
and have expired if not earlier exercised.
OP T I O N E X E R C I S E S A N D S T O C K V E S T E D
The฀following฀table฀provides฀the฀stock฀options฀exercised฀and฀restricted฀stock฀vested฀during฀2012,฀as฀well฀
as common shares issued to the executives pursuant to performance units awarded in 2010.
2012 OPTION EXERCISES AND STOCK VESTED
Name
Option Awards(1) Stock Awards(2)
Number of
Shares
Acquired
on Exercise
(#)
Value Realized
on Exercise
($)
Number of
Shares
Acquired
on Vesting
(#)
Value Realized
on Vesting
($)
David B. Dillon ....................... 510,000 $4,916,550 120,751 $2,874,530
J.฀Michael฀Schlotman .................. 22,750 $ 199,290 12,845 $ 306,302
W.฀Rodney฀McMullen .................. 150,000 $1,721,700 51,439 $1,208,059
Paul W. Heldman ...................... 120,000 $ 840,400 26,861 $ 625,328
Kathleen S. Barclay .................... — — 32,900 $ 839,961
(1)฀ Options฀ granted฀ under฀ our฀ various฀ long-term฀ incentive฀ plans฀ have฀ a฀ ten-year฀ life฀ and฀ expire฀ if฀ not฀
exercised within that ten-year period.
(2)฀ The฀Stock฀Awards฀columns฀of฀the฀table฀include฀the฀following฀two฀components:
In 2010, executives were awarded performance units which are earned based on performance criteria
established by the Compensation Committee at the beginning of the three year performance period.
Actual payouts are based on the degree to which improvements are achieved and are earned in Kroger
common shares. The number of common shares issued and the value realized based on the closing
share฀price฀on฀March฀14,฀2013,฀the฀date฀of฀deemed฀delivery฀of฀the฀shares,฀are฀as฀ follows:฀ Mr.฀Dillon:฀
14,231฀common฀shares;฀$448,277฀value฀realized;฀Mr.฀Schlotman:฀1,547฀common฀shares;฀$48,731฀value฀
realized;฀Mr.฀ McMullen฀ 4,331฀ common฀ shares;฀$136,427฀value฀ realized;฀Mr.฀ Heldman:฀ 1,856฀common฀
shares;฀$58,464฀value฀realized;฀and฀Ms.฀Barclay:฀1,547฀common฀shares;฀$48,731฀value฀realized.
The table also includes the number of shares acquired on vesting and the value realized on the vesting of
restricted฀shares฀as฀follows:฀Mr.฀Dillon:฀106,520฀common฀shares;฀$2,426,253฀value฀realized;฀Mr.฀Schlotman:฀
11,298฀common฀shares;฀$257,571฀value฀realized;฀Mr.฀McMullen฀47,108฀common฀shares;฀$1,071,632฀value฀
realized;฀Mr.฀Heldman:฀25,005฀common฀shares;฀$566,864฀value฀realized;฀and฀Ms.฀Barclay:฀31,353฀common฀
shares; $791,230 value realized.