Kroger 2012 Annual Report Download - page 37
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(14) Performanceunitsareearnedasofthelastdayoffiscalyear2013,totheextentperformancegoalsare
achieved. Because the awards are not currently determinable, the number of units and value as of fiscal
year-end in the table reflect the probable outcome of such conditions. The maximum number of units
achievable and the value of the maximum number of units as of fiscal year-end if such maximum would
beachievedareasfollows:Mr.Dillon:70,900units;$2,088,714;Mr.Schlotman:11,410units;$336,139;
Mr. McMullen: 22,860 units; $673,456; Mr. Heldman: 10,850 units; $319,641; and Ms. Barclay: 8,260
units; $243,340.
(15) Performanceunitsareearnedasofthelastdayoffiscalyear2014,totheextentperformancegoalsare
achieved. Because the awards are not currently determinable, the number of units and value as of fiscal
year-end in the table reflect the probable outcome of such conditions. The maximum number of units
achievable and the value of the maximum number of units as of fiscal year-end if such maximum would
beachievedareasfollows:Mr.Dillon:74,645units;$2,208,372;Mr.Schlotman:13,660units;$404,131;
Mr. McMullen: 24,360 units; $720,691; Mr. Heldman: 12,350 units; $365,375; and Ms. Barclay: 8,260
units; $244,372.
From 1997 through 2002, Kroger granted to the named executive officers performance-based nonqualified
stockoptions.Theseoptions,havingatermoftenyears,vestsixmonths priortotheirdateofexpiration
unlessearliervestingbecauseKroger’sstockpriceachievedthespecifiedannualrateofappreciationsetforth
inthestockoptionagreement.Thatraterangedfrom13%to16%.Allperformance-basedoptionshavevested
and have expired if not earlier exercised.
OP T I O N E X E R C I S E S A N D S T O C K V E S T E D
Thefollowingtableprovidesthestockoptionsexercisedandrestrictedstockvestedduring2012,aswell
as common shares issued to the executives pursuant to performance units awarded in 2010.
2012 OPTION EXERCISES AND STOCK VESTED
Name
Option Awards(1) Stock Awards(2)
Number of
Shares
Acquired
on Exercise
(#)
Value Realized
on Exercise
($)
Number of
Shares
Acquired
on Vesting
(#)
Value Realized
on Vesting
($)
David B. Dillon ....................... 510,000 $4,916,550 120,751 $2,874,530
J.MichaelSchlotman .................. 22,750 $ 199,290 12,845 $ 306,302
W.RodneyMcMullen .................. 150,000 $1,721,700 51,439 $1,208,059
Paul W. Heldman ...................... 120,000 $ 840,400 26,861 $ 625,328
Kathleen S. Barclay .................... — — 32,900 $ 839,961
(1) Options granted under our various long-term incentive plans have a ten-year life and expire if not
exercised within that ten-year period.
(2) TheStockAwardscolumnsofthetableincludethefollowingtwocomponents:
In 2010, executives were awarded performance units which are earned based on performance criteria
established by the Compensation Committee at the beginning of the three year performance period.
Actual payouts are based on the degree to which improvements are achieved and are earned in Kroger
common shares. The number of common shares issued and the value realized based on the closing
sharepriceonMarch14,2013,thedateofdeemeddeliveryoftheshares,areas follows: Mr.Dillon:
14,231commonshares;$448,277valuerealized;Mr.Schlotman:1,547commonshares;$48,731value
realized;Mr. McMullen 4,331 common shares;$136,427value realized;Mr. Heldman: 1,856common
shares;$58,464valuerealized;andMs.Barclay:1,547commonshares;$48,731valuerealized.
The table also includes the number of shares acquired on vesting and the value realized on the vesting of
restrictedsharesasfollows:Mr.Dillon:106,520commonshares;$2,426,253valuerealized;Mr.Schlotman:
11,298commonshares;$257,571valuerealized;Mr.McMullen47,108commonshares;$1,071,632value
realized;Mr.Heldman:25,005commonshares;$566,864valuerealized;andMs.Barclay:31,353common
shares; $791,230 value realized.