Kroger 2012 Annual Report Download - page 39

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37
Although participants generally receive credited service beginning at age 21, those participants who
commenced employment prior to 1986, including the above listed named executive officers, began to accrue
credited฀service฀after฀attaining฀age฀25.฀In฀the฀event฀of฀a฀termination฀of฀employment,฀Messrs.฀Dillon,฀Heldman฀
and Schlotman currently are eligible for a reduced early retirement benefit, as they each have attained age 55.
Mr.฀Dillon฀also฀participates฀in฀the฀Dillon฀Employees’฀Profit฀Sharing฀Plan฀(the฀“Dillon฀Plan”).฀The฀Dillon฀Plan฀
is a qualified defined contribution plan under which Dillon Companies, Inc. and its participating subsidiaries
may฀choose฀to฀make฀discretionary฀contributions฀each฀year฀that฀are฀then฀allocated฀to฀each฀participant’s฀account.฀
Participation in the Dillon Plan was frozen effective January 1, 2001. Benefits under the Dillon Plan do not
continue฀to฀accrue฀for฀Mr.฀Dillon.฀Participants฀in฀the฀Dillon฀Plan฀elect฀from฀among฀a฀number฀of฀investment฀
options and the amounts in their accounts are invested and credited with investment earnings in accordance
with฀their฀elections.฀Prior฀to฀July฀1,฀2000,฀participants฀could฀elect฀to฀make฀voluntary฀contributions฀under฀the฀
Dillon Plan, but that option was discontinued effective as of July 1, 2000. Participants can elect to receive their
Dillon Plan benefit in the form of either a lump sum payment or installment payments.
Due฀ to฀ offset฀ formulas฀ contained฀ in฀ the฀ Consolidated฀ Plan฀ and฀ the฀ Dillon฀ Excess฀ Plan,฀ Mr.฀ Dillon’s฀
accrued benefits under the Dillon Plan offset a portion of the benefit that would otherwise accrue for them
under those plans for their service with Dillon Companies, Inc. Although benefits that accrue under defined
contribution plans are not reportable under the accompanying table, we have added narrative disclosure of
the Dillon Plan because of the offsetting effect that benefits under that plan has on benefits accruing under
the Consolidated Plan and the Dillon Excess Plan.
The assumptions used in calculating the present values are set forth in Note 13 to the consolidated
financial statements in Kroger’s Form 10-K for fiscal year 2012 ended February 2, 2013. The discount rate used
to determine the present values is 4.29%, which is the same rate used at the measurement date for financial
reporting purposes.
NO N Q U A L I F I E D D E F E R R E D C O M P E N S A T I O N
The following table provides information on nonqualified deferred compensation for the named
executive officers for 2012.
2012 NONQUALIFIED DEFERRED COMPENSATION
Executive
Contributions
in Last FY
Registrant
Contributions
in Last FY
Aggregate
Earnings
in Last FY
Aggregate
Withdrawals/
Distributions
Aggregate
Balance at
Last FYE
Name ($) ($) ($) ($) ($)
David B. Dillon .................... $ 60,000(1) $0 $ 68,918 $0 $1,037,365
J.฀Michael฀Schlotman ............... $ 0 $0 $ 0 $0 $ 0
W.฀Rodney฀McMullen ............... $364,381(2) $0 $413,093 $0 $6,329,976
Paul W. Heldman ................... $312,716(3) $0 $ 74,488 $0 $1,368,700
Kathleen S. Barclay ................. $ 0 $0 $ 0 $0 $ 0
(1)฀ This฀amount฀represents฀the฀deferral฀of฀annual฀bonus฀earned฀in฀fiscal฀year฀2011฀and฀paid฀in฀March฀2012.฀
This amount is included in the Summary Compensation Table for 2011.
(2)฀ This฀amount฀represents฀the฀deferral฀of฀annual฀bonus฀earned฀in฀fiscal฀year฀2011฀and฀paid฀in฀March฀2012฀
in the amount of $277,332 and deferral of long-term cash bonus earned during the 2008 through 2011
performance฀period฀and฀paid฀in฀March฀2012฀in฀the฀amount฀of฀$87,049.฀These฀amounts฀are฀included฀in฀
the Summary Compensation Table for 2011.
(3)฀ This฀ amount฀ represents฀ the฀ deferral฀ of฀ long-term฀ cash฀ bonus฀ earned฀ during฀ the฀ 2008฀ through฀ 2011฀
performance฀period฀and฀paid฀in฀March฀2012.฀This฀amount฀is฀included฀in฀the฀Summary฀Compensation฀
Table for 2011.
Eligible participants may elect to defer up to 100% of the amount of their salary that exceeds the sum of
the FICA wage base and pre-tax insurance and other Internal Revenue Code Section 125 plan deductions, as
well as 100% of their annual and long-term bonus compensation. Deferral account amounts are credited with