Kroger 2013 Annual Report Download - page 43

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41
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,฀Mr.฀Schlotman฀currently฀is฀
eligible฀for฀a฀reduced฀early฀retirement฀benefit,฀as฀he฀has฀attained฀age฀55.฀Mr.฀Ellis,฀as฀a฀cash฀balance฀participant฀
in฀the฀Consolidated฀Plan,฀will฀receive฀benefits฀as฀an฀annual฀pay฀credit฀equal฀to฀5%฀of฀eligible฀earnings฀with฀
interest฀accruing฀daily฀at฀a฀rate฀equal฀to฀the฀30-year฀Treasury฀rate.
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฀ 15฀ to฀ the฀ consolidated฀
financial฀statements฀in฀Kroger’s฀Form฀10-K฀for฀fiscal฀year฀2013฀ended฀February฀1,฀2014.฀The฀discount฀rate฀used฀
to฀determine฀the฀present฀values฀is฀4.99%,฀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 2013.
2013 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 $76,367 $0 $1,173,732
W.฀Rodney฀McMullen ............... $215,817(2) $0 $452,389 $0 $6,998,182
J.฀Michael฀Schlotman ............... $ 0 $0 $ 0 $0 $ 0
Paul฀W.฀Heldman ................... $ 0 $0 $80,713 $0 $1,449,413
Kathleen฀S.฀Barclay ................. $ 0 $0 $ 0 $0 $ 0
Michael฀L.฀Ellis .................... $ 0 $0 $ 33,804 $0 $584,760
(1)฀ This฀amount฀represents฀the฀deferral฀of฀performance-based฀annual฀bonus฀earned฀in฀fiscal฀year฀2012฀and฀
paid฀in฀March฀2013.฀This฀amount฀is฀included฀in฀the฀Summary฀Compensation฀Table฀for฀2012฀in฀footnote฀4.
(2)฀ This฀amount฀represents฀the฀deferral฀of฀performance-based฀annual฀bonus฀earned฀in฀fiscal฀year฀2012฀and฀
paid฀ in฀ March฀ 2013฀ in฀ the฀ amount฀ of฀ $171,762฀ and฀ deferral฀ of฀ long-term฀ cash฀ bonus฀ earned฀ during฀
the฀2010฀through฀2012฀performance฀period฀and฀paid฀in฀March฀2013฀in฀the฀amount฀of฀$44,055.฀These฀
amounts฀are฀included฀in฀the฀Summary฀Compensation฀Table฀for฀2012฀in฀footnote฀4.
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฀