Kroger 2014 Annual Report Download - page 43

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PE N S I O N B E N E F I T S
The฀following฀table฀provides฀information฀regarding฀pension฀benefits฀as฀of฀the฀last฀day฀of฀fiscal฀2014฀for฀
Messrs.฀McMullen,฀Schlotman,฀Ellis,฀Donnelly฀and฀Dillon.฀Ms.฀Barclay฀does฀not฀participate฀in฀a฀defined฀benefit฀
pension plan.
2014 PENSION BENEFITS TABLE
Name Plan Name
Number
of Years
Credited
Service
(#)
Present
Value of
Accumulated
Benefit
($)
Payments
During
Last Fiscal
Year
($)
(1)
W.฀Rodney฀McMullen The฀Kroger฀Consolidated฀Retirement฀Benefit฀Plan 29 $ 1,122,749 —
The฀Kroger฀Co.฀Excess฀Benefit฀Plan 29 $ 9,686,214 —
J.฀Michael฀Schlotman The฀Kroger฀Consolidated฀Retirement฀Benefit฀Plan 29 $ 1,202,046 —
The฀Kroger฀Co.฀Excess฀Benefit฀Plan 29 $ 5,380,629 —
Michael฀L.฀Ellis The฀Kroger฀Consolidated฀Retirement฀Benefit฀Plan (2) $ 103,400 —
The฀Kroger฀Co.฀Excess฀Benefit฀Plan (2) $ 81,662 —
Michael฀J.฀Donnelly The฀Kroger฀Consolidated฀Retirement฀Benefit฀Plan 35 $ 168,844 —
The฀Kroger฀Co.฀Excess฀Benefit฀Plan 35 $ 2,999,752 —
David฀B.฀Dillon The฀Kroger฀Consolidated฀Retirement฀Benefit฀Plan 19 $ 893,750 —
The฀Kroger฀Co.฀Excess฀Benefit฀Plan 19 $11,913,067 —
Dillon฀Companies,฀Inc.฀Excess฀Benefit฀Pension฀Plan 20 $ 5,629,722 —
(1)฀ The฀ discount฀ rate฀ used฀ to฀ determine฀ the฀ present฀ values฀ was฀ 3.87%,฀ which฀ is฀ the฀ same฀ rate฀ used฀ at฀
the measurement date for financial reporting purposes. Additional assumptions used in calculating the
present฀values฀are฀set฀forth฀in฀Note฀15฀to฀the฀consolidated฀financial฀statements฀in฀Kroger’s฀10-K฀for฀fiscal฀
year฀2014฀ended฀January฀31,฀2015.
(2)฀ The฀ benefits฀ for฀ cash฀ balance฀ participants,฀ including฀ Mr.฀ Ellis,฀ are฀ not฀ based฀ on฀ years฀ of฀ credited฀
service.฀Please฀see฀the฀narrative฀discussion฀following฀this฀table฀for฀a฀description฀of฀how฀plan฀benefits฀
are determined.
Messrs.฀ McMullen,฀ Schlotman,฀ Ellis,฀ Donnelly฀ and฀ Dillon฀ participate฀ in฀ The฀ Kroger฀ Consolidated฀
Retirement฀ Benefit฀Plan฀(the฀“Consolidated฀ Plan”),฀which฀ is฀ a฀ qualified฀ defined฀ benefit฀pension฀plan.฀ The฀
Consolidated฀Plan฀generally฀determines฀accrued฀benefits฀using฀a฀cash฀balance฀formula,฀but฀retains฀benefit฀
formulas฀applicable฀under฀prior฀plans฀for฀certain฀“grandfathered฀participants”฀who฀were฀employed฀by฀Kroger฀
on฀December฀31,฀2000.฀Each฀of฀the฀above฀listed฀named฀executive฀officers,฀except฀for฀Mr.฀Ellis,฀is฀eligible฀for฀
these฀grandfathered฀benefits฀under฀the฀Consolidated฀Plan.฀Their฀ benefits,฀therefore,฀are฀determined฀using฀
formulas฀applicable฀under฀prior฀plans,฀including฀the฀Kroger฀formula฀covering฀service฀to฀The฀Kroger฀Co.฀and฀
the฀Dillon฀Companies,฀Inc.฀formula฀covering฀service฀to฀Dillon฀Companies,฀Inc.฀Mr.฀Ellis฀is฀not฀a฀grandfathered฀
participant,฀and฀therefore,฀his฀benefits฀are฀determined฀using฀the฀cash฀balance฀formula.
Messrs.฀McMullen,฀Schlotman,฀Ellis,฀Donnelly฀and฀Dillon฀also฀are฀eligible฀to฀receive฀benefits฀under฀The฀
Kroger฀Co.฀Excess฀Benefit฀Plan฀(the฀“Kroger฀Excess฀Plan”),฀and฀Mr.฀Dillon฀also฀is฀eligible฀to฀receive฀benefits฀
under฀the฀ Dillon฀ Companies,฀Inc.฀Excess฀Benefit฀ Pension฀Plan฀ (the฀“Dillon฀ Excess฀Plan”).฀These฀ plans฀ are฀
collectively฀referred฀to฀as฀the฀“Excess฀Plans.”฀The฀Excess฀Plans฀are฀each฀considered฀to฀be฀nonqualified฀deferred฀
compensation฀plans฀as฀defined฀in฀Section฀409A฀of฀the฀Internal฀Revenue฀Code.฀The฀purpose฀of฀the฀Excess฀Plans฀
is฀to฀make฀up฀the฀shortfall฀in฀retirement฀benefits฀caused฀by฀the฀limitations฀on฀benefits฀to฀highly฀compensated฀
individuals฀under฀the฀qualified฀defined฀benefit฀pension฀plans฀in฀accordance฀with฀the฀Internal฀Revenue฀Code.