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28
The฀following฀table฀summarizes฀each฀of฀the฀long-term฀performance฀based฀plans฀for฀the฀years฀shown:
2012 Plan 2013 Plan 2014 Plan 2015 Plan
Performance Period 2012฀to฀2014 2013฀to฀2015 2014฀to฀2016 2015฀to฀2017
Payout Date March฀2015 March฀2016 March฀2017 March฀2018
Cash Bonus Base Salary฀at฀end฀of฀
fiscal฀year฀2011*
Salary฀at฀end฀of฀
fiscal฀year฀2012*
Salary฀at฀end฀of฀fiscal฀
year฀2013*
Salary฀at฀end฀of฀fiscal฀
year฀2014*
Performance Metrics
Strategic Plan 2%฀payout฀per฀unit฀
improvement
2%฀payout฀per฀unit฀
improvement
2%฀payout฀per฀unit฀
improvement
4%฀payout฀per฀unit฀
improvement
Reduction in
Operating Cost as a
Percentage of Sales,
Excluding Fuel
0.50%฀payout฀per฀
0.01%฀reduction฀
in operating costs
Baseline:฀27.09%
0.50%฀payout฀per฀
0.01%฀reduction฀
in operating costs
Baseline:฀26.69%
0.50%฀payout฀per฀
0.01%฀reduction฀
in operating costs
Baseline:฀26.68%
0.50%฀payout฀per฀
0.01%฀reduction฀
in operating costs
Baseline:฀26.41%
Improvement in
Associate Engagement 4%฀payout฀per฀unit฀
improvement
4%฀payout฀per฀unit฀
improvement
4%฀payout฀per฀unit฀
improvement
4%฀payout฀per฀unit฀
improvement
Return on Invested
Capital N/A 1%฀payout฀
per฀0.01%฀
improvement
in฀ROIC฀
Baseline:฀13.25%
1%฀payout฀per฀0.01%฀
improvement฀in฀ROIC
Baseline:฀13.27%
1%฀payout฀per฀0.01%฀
improvement฀in฀ROIC฀
Baseline:฀13.74%
*฀ Or฀date฀of฀plan฀entry,฀if฀later.
At฀the฀time฀of฀adopting฀new฀long-term฀plans,฀the฀Committee฀has฀made฀adjustments฀to฀the฀percentage฀
payouts฀ for฀ the฀ components฀ of฀ the฀ long-term฀ plans฀ to฀ account฀ for฀ the฀ increasing฀ difficulty฀ of฀ achieving฀
compounded improvement.
The฀ Committee฀ anticipates฀ adopting฀ a฀ new฀ plan฀ each฀ year,฀ measuring฀ improvement฀ over฀ successive฀
three-year฀periods.
The฀long-term฀performance฀based฀plan฀adopted฀in฀2012,฀which฀measured฀improvements฀through฀fiscal฀
year฀2014,฀paid฀out฀in฀March฀2015฀and฀was฀calculated฀as฀follows:
Component Baseline Result Improvement Multiplier
Percentage
Earned
Strategic฀Plan . . . . . . . . . . . . . . . . . . . . . * * 9฀units฀of฀improvement 2.00% 18.00%
Associate฀Engagement . . . . . . . . . . . . . . * * 4฀units฀of฀improvement 4.00% 16.00%
Total฀Operating฀Costs,฀as฀a฀Percentage฀
of฀Sales,฀Excluding฀Fuel . . . . . . . . . . 27.0 9 % 26.43% 66฀basis฀point฀improvement 0.50% 33.00%
Total฀Earned . . . . . . . . . . . . . . . . . . . . . . 67.00%
*฀ The฀ Strategic฀Plan฀ and฀Associate฀Engagement฀ components฀were฀established฀by฀the฀ Committee฀at฀the฀
beginning฀of฀the฀performance฀period,฀but฀are฀not฀disclosed฀as฀they฀are฀competitively฀sensitive.
Accordingly,฀each฀named฀executive฀officer฀received฀cash฀in฀an฀amount฀equal฀to฀67%฀of฀that฀executive’s฀
long-term฀cash฀bonus฀base,฀and฀was฀issued฀the฀number฀of฀Kroger฀common฀shares฀equal฀to฀67%฀of฀the฀number฀
of฀performance฀units฀awarded฀to฀that฀executive,฀along฀with฀a฀cash฀amount฀equal฀to฀the฀dividends฀paid฀on฀that฀
number฀ of฀ common฀ shares฀ during฀ the฀ three฀ year฀ performance฀ period.฀ Payout฀ for฀ the฀ cash฀ components฀ of฀
the฀2012฀plan฀are฀reported฀in฀the฀“Non-Equity฀Incentive฀Plan฀Compensation”฀and฀“All฀Other฀Compensation”฀
columns฀of฀the฀Summary฀Compensation฀Table฀and฀footnotes฀4฀and฀6฀to฀that฀table,฀and฀the฀common฀shares฀issued฀
under฀the฀plan฀are฀reported฀in฀the฀2014฀Option฀Exercises฀and฀Stock฀Vested฀Table฀and฀footnote฀2฀to฀that฀table.฀