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restrictedstockawardsgrantedin2011and2012willalsocontinuetovestaccordingtotheoriginal
schedule.Bythetermsoftheperformanceunitawardagreements,ifaparticipantretiresafterreaching
age55withatleast5yearsofservice,theparticipantiseligibletoreceiveaproratednumberofthe
performanceunitsearnedattheendoftheperformanceperiod,basedonthenumberofweeksofactive
employment during the performance period, provided the participant does not provide services to a
competitorofours.Mr.Dillon’sproratedperformanceunitsaredescribedinfootnotes19and20above.
2 0 1 4 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
Thefollowingtableprovidesinformationforfiscal2014regardingstockoptionsexercised,restricted
stock vested, and common shares issued to the named executive officers pursuant to performance units
earnedunderthe2012long-termincentiveplan.
Name
Option Awards(1) Stock Awards(2)
Number of
Shares Acquired
on Exercise
(#)
Value Realized
on Exercise
($)
Number of
Shares Acquired
on Vesting
(#)
Value Realized
on Vesting
($)
W.RodneyMcMullen . . . . . . . . . . . . . . . . . 75,000 $2,079,019 101,045 $5,611,392
J.MichaelSchlotman . . . . . . . . . . . . . . . . . 80,000 $2,157,424 27,896 $1,660,207
MichaelL.Ellis . . . . . . . . . . . . . . . . . . . . . . — — 20,720 $1,220,209
KathleenS.Barclay . . . . . . . . . . . . . . . . . . . — — 29,137 $1,626,026
MichaelJ.Donnelly . . . . . . . . . . . . . . . . . . . 30,000 $1,109,153 19,371 $1,127,956
DavidB.Dillon . . . . . . . . . . . . . . . . . . . . . . 300,000 $9,716,250 161,917 $9,317,612
(1) Stockoptionsgrantedunderourlong-termincentiveplanshaveaten-yearlifeandexpireifnotexercised
withinthatten-yearperiod.Thevaluerealizedonexerciseisthedifferencebetweentheexerciseprice
oftheoptionandtheclosingpriceofKroger’scommonsharesontherespectivedate(s)ofexercise.
(2) TheStockAwardscolumnsincludethefollowingtwocomponents:
In 2012, executives were awarded performance units that are earned based on performance criteria
establishedbytheCompensationCommittee at the beginningofthethree-yearperformanceperiod.
Actual payouts are based on the level of performance achieved, and are paid in common shares.
The number of common shares issued and the value realized based on the closing price of Kroger
commonsharesof$76.29onMarch12,2015,thedateofdeemeddeliveryoftheshares,areasfollows:
Mr.McMullen:16,321shares,$1,245,129;Mr.Schlotman:9,152shares,$698,206;Mr.Ellis:3,685shares,
$281,129; Ms. Barclay: 5,534shares, $422,189;Mr.Donnelly: 4,248shares,$324,080;and Mr. Dillon:
50,012shares,$3,815,415.
Thetablealsoincludesthenumberofsharesacquireduponvestingofrestrictedstockandthevalue
realized on the vesting of restricted stock as follows: Mr. McMullen: 84,724 shares, $4,366,248;
Mr.Schlotman:18,744shares,$961,986;Mr.Ellis:17,035shares,$939,080;Ms.Barclay:23,603shares,
$1,203,822;Mr.Donnelly:15,123shares,$803,891;andMr.Dillon:111,905shares,$5,502,197.