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28
The฀following฀table฀summarizes฀each฀of฀the฀long-term฀performance฀based฀plans฀for฀the฀years฀shown:
2011 Plan 2012 Plan 2013 Plan 2014 Plan
Performance Period 2011 to 2013 2012 to 2014 2013฀to฀2015 2014฀to฀2016
Payout Date March฀2014 March฀2015 March฀2016 March฀2017
Cash Bonus Base Salary฀at฀end฀of฀
fiscal฀year฀2010*
Salary฀at฀end฀of฀
fiscal฀year฀2011*
Salary฀at฀end฀of฀fiscal฀
year฀2012*
Salary฀at฀end฀of฀fiscal฀
year฀2013*
Performance Metrics
Strategic Plan 2%฀payout฀per฀unit฀
improvement
2%฀payout฀per฀unit฀
improvement
2%฀payout฀per฀unit฀
improvement
2%฀payout฀per฀unit฀
improvement
Reduction in
Operating Cost as
a Percentage of
Sales, Excluding
Fuel
0.50%฀payout฀per฀
0.01%฀reduction฀in฀
operating costs
Baseline:฀27.60%
0.50%฀payout฀per฀
0.01%฀reduction฀in฀
operating costs
Baseline:฀27.09%
0.50%฀payout฀per฀
0.01%฀reduction฀in฀
operating costs
Baseline:฀26.69%
0.50%฀payout฀per฀
0.01%฀reduction฀in฀
operating costs
Baseline:฀26.61%
Improvement
in Associate
Engagement
2%฀payout฀per฀unit฀
improvement
4%฀payout฀per฀unit฀
improvement
4%฀payout฀per฀unit฀
improvement
4%฀payout฀per฀unit฀
improvement
Return on
Invested Capital
N/A N/A 1%฀payout฀per฀0.01%฀
improvement in ROIC
Baseline:฀13.41%
1%฀payout฀per฀0.01%฀
improvement in ROIC
Baseline:฀13.43%
*฀ Or฀date฀of฀plan฀entry,฀if฀later.
At฀the฀time฀of฀adopting฀new฀long-term฀plans,฀the฀Committee฀has฀made฀adjustments฀to฀the฀percentage฀
payouts฀ for฀ the฀ components฀ of฀ the฀ long-term฀ plans฀ to฀ account฀ for฀ the฀ increasing฀ difficulty฀ of฀ achieving฀
compounded improvement.
The Committee anticipates adopting a new plan each year, measuring improvement over successive
three-year฀periods.
The฀long-term฀performance฀based฀plan฀adopted฀in฀2011,฀which฀measured฀improvements฀through฀fiscal฀
year฀2013,฀paid฀out฀in฀March฀2014฀and฀was฀calculated฀as฀follows:
Component Baseline Result Improvement Multiplier
Percentage
Earned
Strategic฀Plan฀..................... * * 6฀units฀of฀improvement 2% 12.00%
Associate Engagement ............. * ฀* 8 units of improvement 2% 6.00%
Operating Costs, as a Percentage of
Sales,฀Excluding฀Fuel฀ ............ 27.6 0 % 26.76% 84฀basis฀point฀improvement 0.50% 42.00%
Total Earned ...................... 70.00%
*฀ The฀Strategic฀Plan฀and฀Associate฀Engagement฀components฀were฀established฀by฀the฀Committee฀but฀are฀
not disclosed as they are competitively sensitive.
Accordingly,฀each฀named฀executive฀officer฀received฀cash฀in฀an฀amount฀equal฀to฀70.00%฀of฀that฀executive’s฀
long-term฀cash฀ bonus฀base,฀and฀ was฀issued฀ the฀number฀of฀Kroger฀common฀shares฀equal฀to฀70.00%฀of฀the฀
number฀of฀performance฀units฀awarded฀to฀that฀executive,฀along฀with฀a฀cash฀amount฀equal฀to฀the฀dividends฀paid฀
on฀that฀number฀of฀common฀shares฀during฀the฀three฀year฀performance฀period.฀Payout฀for฀the฀cash฀components฀
of฀the฀2011฀plan฀are฀reported฀in฀the฀“Non-Equity฀Incentive฀Plan฀Compensation”฀and฀“All฀Other฀Compensation”฀
columns฀of฀the฀Summary฀Compensation฀Table฀and฀footnotes฀4฀and฀6฀to฀that฀table,฀and฀the฀common฀shares฀
issued฀under฀the฀plan฀are฀repor ted฀in฀the฀Options฀Exercised฀and฀Stock฀Vested฀Table฀and฀footnote฀2฀to฀that฀table.