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SE L E C T I O N O F A U D I T O R S
( I T E M N O. 3 )
TheAuditCommitteeoftheBoardofDirectorsisresponsiblefortheappointment,compensationand
retentionofKroger’sindependentauditor,asrequiredbylawandbyapplicableNYSErules.OnMarch11,2015,
theAuditCommitteeappointedPricewaterhouseCoopersLLPasKroger’sindependentauditorforthefiscal
yearendingJanuary30,2016.WhileshareholderratificationoftheselectionofPricewaterhouseCoopersLLP
asourindependentauditorisnotrequiredbyKroger’sRegulationsorotherwise,theBoardofDirectorsis
submittingtheselectionofPricewaterhouseCoopersLLPtoshareholdersforratification,asithasinpastyears,
asagoodcorporategovernancepractice.Iftheshareholdersfailtoratifytheselection,theAuditCommittee
may,butisnotrequiredto,reconsiderwhethertoretainthatfirm.Eveniftheselectionisratified,theAudit
Committeeinitsdiscretionmaydirecttheappointmentofadifferentauditoratanytimeduringtheyearifit
determinesthatsuchachangewouldbeinthebestinterestsofKrogerandourshareholders.
ArepresentativeofPricewaterhouseCoopersLLPisexpectedtobepresentatthemeetingtorespondto
appropriatequestionsandtomakeastatementifheorshedesirestodoso.
TH E B O A R D O F D I R E C T O R S R E C O M M E N D S A V O T E F O R T H I S P R O P O S A L .
DI S C L O S U R E O F A U D I T O R F E E S
ThefollowingdescribesthefeesbilledtoKrogerbyPricewaterhouseCoopersLLPrelatedtothefiscal
yearsendedJanuary31,2015andFebruary1,2014.
Fiscal Year 2014 Fiscal Year 2013
AuditFees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,250,203 $5,151,390
Audit-RelatedFees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 441,704 $ 151,878
TaxFees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 360,498 $ 188,021
AllOtherFees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 85,000 —
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,137,405 $5,491,289
Audit Fees.Auditfeesforfiscal2014andfiscal2013wereforprofessionalser vicesrenderedfortheaudits
ofKroger’sconsolidatedfinancialstatements,theissuanceofcomfortletterstounderwriters,consents,and
assistancewiththereviewofdocumentsfiledwiththeSEC.
Audit-Related Fees. Audit-related fees for fiscal 2014 and fiscal 2013 were for assurance and related
servicespertaining toaccountingconsultationinconnectionwith attest servicesthat arenotrequiredby
statute or regulation, and consultations concerning financial accounting and reporting standards. These
servicesareconsideredapprovedundertheCompany’sexistingAuditandNon-AuditServicePre-Approval
Policy.Thesefeesalsoincludedservicesrelatedtoacquisitionrelatedduediligence.
Tax Fees.Taxfeesforfiscal2014andfiscal2013wereforstatetaxcompliance,taxauditsupportand
debtrestructuring.
All Other Fees. Other fees for fiscal 2014 were for advisory services pertaining to retiree healthcare
benefits.WedidnotengagePricewaterhouseCoopersLLPforotherservicesinfiscal2013.
The AuditCommittee requires thatitapproveinadvanceallauditandnon-auditworkperformed by
PricewaterhouseCoopersLLP.OnMarch11,2015,theAuditCommitteeapprovedservicestobeperformed
byPricewaterhouseCoopersLLPfortheremainderoffiscalyear2014thatarerelatedtotheauditofKroger
orinvolvetheaudititself.In2007,theAuditCommitteeadoptedanauditandnon-auditservicepre-approval
policy.Pursuanttothetermsofthatpolicy,theCommitteewillannuallypre-approvecertaindefinedservices
that are expected to be provided by the independent auditors. If it becomes appropriate during the year
toengagetheindependentaccountantforadditionalservices,theAuditCommitteemustfirstapprovethe
specificservicesbeforetheindependentaccountantmayperformtheadditionalwork.