Kroger 2014 Annual Report Download - page 38
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maximumamountsareproratedtoreflecttheincrease.Accordingly,theamountsreportedforMessrs.
McMullenandEllisreflecttheproratedtargetsandmaximums.Theamountsactuallyearnedunderthis
planwere paidinMarch2015andareincludedintheSummaryCompensationTablefor2014 inthe
“Non-EquityIncentivePlanCompensation”columnandaredescribedinfootnote4tothattable.
(2) Theseamountsrelatetothe2014Long-TermCashBonusPlan,whichcoversperformanceduringfiscal
years2014,2015and2016.Thecashbonuspotentialamountequalstheannualbasesalaryofthenamed
executiveofficersasofthelastdayoffiscal2013.Bythetermsoftheplan,payoutsarelimitedtono
morethan100%ofaparticipant’sbonuspotential;accordingly,theamountlistedunder“Maximum”
equalstheparticipant’sbonuspotential.Becausetheactualpayoutisbasedonthelevelofperformance
achieved, the target amount is not determinable and therefore the amount listed under “Target” is
a representative amount based on the probable outcome of the performance conditions. Due to his
retirement,Mr.Dillon’sawardwasproratedwithserviceaccruingthroughFebruary28,2015.
(3) TheseamountsrepresentperformanceunitsawardedundertheCompany’s2014Long-TermIncentive
Plan, which covers performance during fiscal years 2014, 2015 and 2016. The amount listed under
“Maximum” represents the maximum number of common shares that can be earned by the named
executive officer under the award. Because the actual payout is based on the level of performance
achieved,thetargetamountisnotdeterminableandthereforetheamountlistedunder“Target”reflects
arepresentativeamountbasedontheprobableoutcomeoftheperformanceconditions.Thegrantdate
fairvaluereportedinthelastcolumnisbasedontheprobableoutcomeoftheperformanceconditions
asofthegrantdate.Thisamountisconsistentwiththeestimateofaggregatecompensationcosttobe
recognizedbytheCompanyoverthethree-yearperformanceperiodoftheawarddeterminedasofthe
grantdateunderFASBASCTopic718,excludingtheeffectofestimatedforfeitures.Duetohisretirement,
Mr.Dillon’sawardwasproratedwithserviceaccruingthroughFebruary28,2015.Theaggregategrant
datefairvalueoftheseawardsisincludedintheSummaryCompensationTablefor2014inthe“Stock
Awards”columnanddescribedinfootnote2tothattable.
(4) TheseamountsrepresentthenumberofsharesofrestrictedstockgrantedunderoneoftheCompany’s
long-termincentiveplans.Theaggregategrantdatefairvaluereportedinthelastcolumniscalculated
inaccordancewithFASBASCTopic718.Theaggregategrantdatefairvalueoftheseawardsisincluded
intheSummaryCompensationTablefor2014inthe“StockAwards”columnanddescribedinfootnote2
tothattable.
(5) TheseamountsrepresentthenumberofstockoptionsgrantedunderoneoftheCompany’slong-term
incentiveplans.OptionsaregrantedwithanexercisepriceequaltotheclosingpriceofKrogercommon
shares on the grant date. The aggregate grant date fair value reported in the last column is calculated in
accordancewithFASBASCTopic718.Theaggregategrantdatefairvalueoftheseawardsisincludedin
theSummaryCompensationTablefor2014inthe“OptionAwards”column.
The Compensation Committee, and the independent members of the Board in the case of the CEO,
establishedthebonuspotentialsshowninthistableas“Target”amountsfortheperformance-basedannual
awards, and established the amounts shown in this table as “Maximum” amounts for the long-term cash
bonusawards.Amountsarepayabletotheextentthatperformancemeetsspecificobjectivesestablishedat
thebeginningoftheperformanceperiod.AsdescribedintheCompensationDiscussionandAnalysis,actual
earningsundertheannual cashbonusplan mayexceed the targetamountif theCompany’sperformance
exceeds the performance objectives, but are limited to 200% of the target amount. The Compensation
Committee,andtheindependentmembersoftheBoardinthecaseoftheCEO,alsodeterminedthenumber
of performance units to be awarded to each named executive officer, under which common shares are
earnedtotheextentperformancemeetsspecificobjectivesestablishedatthebeginningoftheperformance
period.Theperformanceunitsandthelong-termcashbonusawardsaremoreparticularlydescribedinthe
CompensationDiscussionandAnalysis.