Kroger 2014 Annual Report Download - page 54
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RE L A T E D P E R S O N T R A N S A C T I O N S
In accordance with our Statement of Policy with Respect to Related Person Transactions and the rules
oftheSEC,theAuditCommitteeapprovedthefollowingrelatedpersontransaction:
• Duringfiscalyear2014,KrogermadepurchasesfromStaples,Inc.,totalingapproximately$8.7million.
Thisamountrepresentssubstantiallylessthan1%ofStaples’annualconsolidatedgrossrevenue.Kroger
periodicallyemploysabiddingprocessornegotiationsfollowingabenchmarkingofcostsofproducts
fromvariousvendorsfortheitemspurchasedfromStaplesandawardsthebusinessbasedontheresults
ofthatprocess.RonaldL.Sargent,amemberofKroger’sBoard,isChairmanandChiefExecutiveOfficer
ofStaples.
Director independence is discussed above under the heading “Information Concerning the Board.”
Kroger’spolicyonrelatedpersontransactionsisasfollows:
ST A T E M E N T O F P O L I C Y
W I T H R E S P E C T T O
RE L A T E D P E R S O N T R A N S A C T I O N S
A . I N T R O D U C T I O N
It is the policy of Kroger’s Board that any Related Person Transaction may be consummated or may
continueonlyiftheCommitteeapprovesorratifiesthetransactioninaccordancewiththeguidelinessetforth
inthispolicy.TheBoardhasdeterminedthattheAuditCommitteeoftheBoardisbestsuitedtoreviewand
approveRelatedPersonTransactions.
Forthepurposesofthispolicy,a“RelatedPerson”is:
1. anypersonwhois,oratanytimesincethebeginningofKroger’slastfiscalyearwas,adirectoror
executiveofficerofKrogeroranomineetobecomeadirectorofKroger;
2. anypersonwhoisknowntobethebeneficialownerofmorethan5%ofanyclassofKroger’svoting
securities;and
3. anyimmediatefamilymemberofanyoftheforegoingpersons,whichmeansanychild,stepchild,
parent,stepparent,spouse,sibling,mother-in-law,father-in-law,son-in-law,daughter-in-law,brother-
in-law,orsister-in-lawofthedirector,executiveofficer,nomineeormorethan5%beneficialowner,
andanyperson(otherthanatenantoremployee)sharingthehouseholdofsuchdirector,executive
officer,nomineeormorethan5%beneficialowner.
Forthepurposesofthispolicy,a“RelatedPersonTransaction”isatransaction,arrangementorrelationship
(oranyseriesofsimilartransactions,arrangementsorrelationships)sincethebeginningofKroger’slastfiscal
yearinwhichKroger(includinganyofitssubsidiaries)was,isorwillbeaparticipantandtheamountinvolved
exceeds$120,000,andinwhichanyRelatedPersonhad,hasorwillhaveadirectorindirectmaterialinterest
(otherthansolelyasaresultofbeingadirectororalessthan10percentbeneficialownerofanotherentity).
Notwithstandingtheforegoing,theAuditCommitteehasreviewedthefollowingtypesoftransactions
andhasdeterminedthateachtypeoftransactionisdeemedtobepre-approved,eveniftheamountinvolved
exceeds$120,000.
1. Certain Transactions with Other Companies. Any transaction for property or services in the
ordinarycourseofbusinessinvolvingpaymentstoorfromanothercompanyatwhichaRelated
Person’sonlyrelationshipisasanemployee(includinganexecutiveofficer),director,orbeneficial
owneroflessthan10%ofthatcompany’sshares,iftheaggregateamountinvolvedinanyfiscal
yeardoesnotexceedthegreaterof$1,000,000or2percentofthatcompany’sannualconsolidated
gross revenues.