Kroger 2014 Annual Report Download - page 36

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34
deferral฀account฀is฀created฀each฀year฀and฀the฀interest฀rate฀established฀for฀that฀year฀is฀applied฀to฀that฀deferral฀
account฀until฀the฀deferred฀compensation฀is฀paid฀out.฀If฀the฀interest฀rate฀established฀by฀the฀Company฀for฀
a฀particular฀year฀exceeds฀120%฀of฀the฀applicable฀federal฀long-term฀interest฀rate฀that฀corresponds฀most฀
closely฀to฀the฀plan฀rate,฀the฀amount฀by฀which฀the฀plan฀rate฀exceeds฀120%฀of฀the฀corresponding฀federal฀
rate฀is฀deemed฀to฀be฀above-market฀or฀preferential.฀In฀thirteen฀of฀the฀twenty-one฀years฀in฀which฀at฀least฀
one฀named฀executive฀officer฀deferred฀compensation,฀the฀rate฀set฀under฀the฀plan฀for฀that฀year฀exceeds฀
120%฀ of฀ the฀ corresponding฀ federal฀ rate.฀ For฀ each฀ of฀ the฀ deferral฀ accounts฀ in฀ which฀ the฀ plan฀ rate฀ is฀
deemed฀to฀be฀above-market,฀the฀Company฀calculates฀the฀amount฀by฀which฀the฀actual฀annual฀earnings฀on฀
the฀account฀exceed฀what฀the฀annual฀earnings฀would฀have฀been฀if฀the฀account฀earned฀interest฀at฀120%฀of฀
the corresponding federal rate, and discloses those amounts as preferential earnings. Amounts deferred
in฀2014฀earn฀interest฀at฀a฀rate฀higher฀than฀120%฀of฀the฀corresponding฀federal฀rate,฀accordingly฀there฀are฀
preferential earnings on these amounts.
฀ The฀amount฀reported฀for฀Mr.฀McMullen฀includes฀a฀change฀in฀pension฀value฀in฀the฀amount฀of฀$3,426,477฀
and฀preferential฀earnings฀on฀nonqualified฀deferred฀compensation฀in฀the฀amount฀of฀$71,919.฀The฀amount฀
reported฀for฀Mr.฀Schlotman฀includes฀only฀a฀change฀in฀pension฀value.฀The฀amount฀reported฀for฀Mr.฀Ellis฀
includes฀a฀change฀in฀pension฀value฀in฀the฀amount฀of฀$23,444฀and฀preferential฀earnings฀on฀nonqualified฀
deferred฀ compensation฀ in฀ the฀ amount฀ of฀ $3,933.฀ The฀ amount฀ reported฀ for฀ Mr.฀ Donnelly฀ includes฀ a฀
change฀in฀pension฀value฀in฀the฀amount฀of฀$337,634฀and฀preferential฀earnings฀on฀nonqualified฀deferred฀
compensation฀in฀the฀amount฀of฀$4,141.฀The฀amount฀reported฀for฀Mr.฀Dillon฀includes฀only฀preferential฀
earnings฀on฀nonqualified฀ deferred฀compensation฀because฀ the฀actuarial฀ present฀ value฀of฀accumulated฀
pension฀benefits฀under฀his฀pension฀plans฀decreased฀by฀$264,282.฀
(6)฀ The฀following฀table฀provides฀the฀items฀and฀amounts฀included฀in฀the฀“All฀Other฀Compensation”฀column฀
for฀2014.
Life Insurance
Premium
Accidental Death
and Dismemberment
Insurance Premium
Long-Term
Disability
Insurance
Premium
Payment of
Dividend
Equivalents
on Earned
Performance Units
Dividends
Paid on
Unvested
Restricted
Stock Other
Mr. McMullen $ 55,221 $228฀ $3,489 $29,215 $144,449 —
Mr.฀Schlotman $ 49,172 $ 228฀ — $16,382 $ 48,140 —
Mr.฀Ellis $ 43,002 $ 228฀ $3,489 $ 6,596 $ 45,615 $18,375
Ms.฀Barclay $ 67,581 $ 228฀ — $ 9,906 $ 31,082 $10,897
Mr.฀Donnelly $ 55,879 $ 228฀ $3,481 $ 7,604 $ 33,113 —
Mr.฀Dillon $242,691 $228฀ — $89,521 $196,253 $ 325
฀ The฀amounts฀reported฀in฀“Other”฀column฀for฀Mr.฀Ellis฀and฀Ms.฀Barclay฀represent฀the฀Company’s฀matching฀
contribution฀to฀the฀their฀401(k)฀savings฀plan฀accounts.฀The฀amount฀reported฀in฀the฀“Other”฀column฀for฀
Mr.฀Dillon฀represents฀the฀value฀of฀a฀retirement฀gift.฀