Kroger 2014 Annual Report Download - page 41

Download and view the complete annual report

Please find page 41 of the 2014 Kroger annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 142

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142

39
(4)฀ Stock฀options฀vest฀in฀equal฀amounts฀on฀7/15/2015,฀7/15/2016,฀7/15/2017฀and฀7/15/2018.
(5)฀ Stock฀options฀vest฀in฀equal฀amounts฀on฀7/15/2015,฀7/15/2016,฀7/15/2017,฀7/15/2018฀and฀7/15/2019.
(6)฀ Restricted฀stock฀vests฀on฀6/24/2015.
(7)฀ Restricted฀stock฀vests฀in฀equal฀amounts฀on฀6/23/2015฀and฀6/23/2016.
(8)฀ Restricted฀stock฀vests฀in฀equal฀amounts฀on฀7/12/2015,฀7/12/2016฀and฀7/12/2017.
(9)฀ Restricted฀stock฀vests฀in฀equal฀amounts฀on฀7/15/2015,฀7/15/2016,฀7/15/2017฀and฀7/15/2018.
(10)฀ Restricted฀stock฀vests฀in฀equal฀amounts฀on฀12/12/2015,฀12/12/2016,฀12/12/2017฀and฀12/12/2018.
(11)฀ Restricted฀stock฀vests฀in฀equal฀amounts฀on฀7/15/2015,฀7/15/2016,฀7/15/2017,฀7/15/2018฀and฀7/15/2019.
(12)฀฀Restricted฀stock฀vests฀as฀follows:฀3,250฀shares฀on฀12/12/2015฀and฀6,500฀shares฀on฀12/12/2016.
(13)฀ Restricted฀stock฀vests฀as฀follows:฀2,000฀shares฀on฀7/15/2015,฀2,000฀shares฀on฀7/15/2016฀and฀6,000฀shares฀
on฀7/15/2017.
(14)฀ Restricted฀stock฀vests฀on฀12/6/15.
(15)฀ Restricted฀stock฀vests฀on฀7/12/2015.
(16)฀ Restricted฀stock฀vests฀on฀7/15/2015.
(17)฀ Restricted฀stock฀vests฀as฀follows:฀3,250฀shares฀on฀12/17/2015฀and฀6,500฀shares฀on฀12/17/2016.
(18)฀฀Restricted฀stock฀vests฀in฀equal฀amounts฀on฀7/12/2015฀and฀7/12/2016.
(19)฀฀Performance฀units฀ granted฀under฀the฀2013฀ Long-Term฀Incentive฀Plan฀are฀ earned฀ as฀of฀the฀ last฀ day฀of฀
fiscal฀ year฀ 2015,฀ to฀ the฀ extent฀ performance฀ conditions฀ are฀ achieved.฀ Because฀ the฀ awards฀ earned฀ are฀
not฀currently฀determinable,฀the฀number฀of฀units฀and฀the฀corresponding฀market฀value,฀including฀cash฀
payments฀equal฀to฀projected฀dividend฀equivalent฀payments,฀reflect฀the฀probable฀outcome฀of฀performance฀
conditions฀as฀of฀fiscal฀year-end.฀Assuming฀that฀the฀highest฀level฀of฀performance฀conditions฀is฀achieved,฀
the฀number฀of฀units฀payable฀and฀the฀market฀value,฀including฀cash฀payments฀equal฀to฀projected฀dividend฀
equivalent฀payments,฀are฀as฀follows:฀Mr.฀McMullen:฀24,360฀units,฀$1,731,631;฀Mr.฀Schlotman:฀13,660฀units,฀
$971,021;฀Mr.฀Ellis:฀6,340฀units,฀$450,679;฀Ms.฀Barclay:฀8,260฀units,฀$587,162;฀Mr.฀Donnelly:฀6,340฀units,฀
$450,679;฀and฀Mr.฀Dillon:฀51,677฀units,฀$3,673,460.฀Due฀to฀his฀retirement,฀Mr.฀Dillon’s฀performance฀units฀
are฀prorated฀for฀service฀credited฀through฀February฀28,฀2015฀and฀that฀prorated฀amount฀is฀reflected฀in฀
the฀table.฀
(20)฀ Performance฀units฀granted฀under฀the฀ 2014฀ Long-Term฀Incentive฀Plan฀ are฀ earned฀ as฀of฀the฀last฀ day฀of฀
fiscal฀ year฀ 2016,฀ to฀ the฀ extent฀ performance฀ conditions฀ are฀ achieved.฀ Because฀ the฀ awards฀ earned฀ are฀
not฀currently฀determinable,฀the฀number฀of฀units฀and฀the฀corresponding฀market฀value,฀including฀cash฀
payments฀equal฀to฀projected฀dividend฀equivalent฀payments,฀reflect฀the฀probable฀outcome฀of฀performance฀
conditions฀as฀of฀fiscal฀year-end.฀Assuming฀that฀the฀highest฀level฀of฀performance฀conditions฀is฀achieved,฀
the฀number฀of฀units฀payable฀and฀the฀market฀value,฀including฀cash฀payments฀equal฀to฀projected฀dividend฀
equivalent฀payments,฀are฀as฀follows:฀Mr.฀McMullen:฀37,500฀units,฀$2,670,375;฀Mr.฀Schlotman:฀10,000฀units,฀
$712,100;฀Mr.฀Ellis:฀11,250฀units,฀$801,113;฀Ms.฀Barclay:฀8,750฀units,฀$623,088;฀Mr.฀Donnelly:฀7,500฀units,฀
$534,075;฀and฀Mr.฀Dillon:฀13,462฀units,฀$958,629.฀Due฀to฀his฀retirement,฀Mr.฀Dillon’s฀performance฀units฀
are฀prorated฀for฀service฀credited฀through฀February฀28,฀2015฀and฀that฀prorated฀amount฀is฀reflected฀in฀
the฀table.฀
(21)฀ By฀the฀terms฀of฀our฀stock฀option฀award฀agreements฀and฀2013฀and฀2014฀restricted฀stock฀award฀agreements,฀
if฀a฀participant฀retires฀after฀reaching฀age฀62฀with฀at฀least฀5฀years฀of฀service,฀vesting฀of฀the฀awards฀will฀
continue฀on฀the฀regular฀schedule฀and฀stock฀options฀will฀remain฀exercisable฀through฀the฀original฀term,฀
provided฀the฀participant฀does฀not฀provide฀services฀to฀a฀competitor฀of฀ours.฀Mr.฀Dillon฀has฀met฀the฀age฀
and฀service฀requirements฀and฀accordingly,฀his฀stock฀options฀and฀his฀2013฀and฀2014฀restricted฀awards฀will฀
continue฀to฀vest฀according฀to฀their฀original฀schedule฀and฀the฀options฀will฀remain฀exercisable฀through฀
their฀ original฀ term.฀ As฀ described฀ in฀ the฀ Compensation฀ Discussion฀ and฀ Analysis฀ section,฀ Mr.฀ Dillon’s฀