Rite Aid 2016 Annual Report Download - page 131

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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014
(In thousands, except per share amounts)
17. Reclassifications from Accumulated Other Comprehensive Loss (Continued)
The following table summarizes the effects on net income of significant amounts classified out of
each component of accumulated other comprehensive loss for the fiscal years ended February 27, 2016,
February 28, 2015 and March 1, 2014:
Fiscal Years Ended February 27, 2016,
February 28, 2015 and March 1, 2014
Amount reclassified from
accumulated other comprehensive loss
February 27, February 28, March 1, Affected line item in the
Details about accumulated other 2016 2015 2014 consolidated
comprehensive loss components (52 Weeks) (52 Weeks) (52 Weeks) statements of operations
Defined benefit pension plans
Amortization of unrecognized prior service cost(a) .... $ (67) $ (240) $ (240) Selling, general and
administrative expenses
Amortization of unrecognized net loss(a) .......... (3,116) (3,286) (4,584) Selling, general and
administrative expenses
(3,183) (3,526) (4,824) Total before income tax
expense
1,481 1,464 — Income tax benefit(b)
$(1,702) $(2,062) $(4,824) Net of income tax benefit
(a)—See Note 18, Retirement Plans for additional details.
(b)—Income tax expense is $0 for fiscal 2014 due to the valuation allowance. See Note 7, Income Taxes for additional details.
18. Retirement Plans
Defined Contribution Plans
The Company and its subsidiaries sponsor several retirement plans that are primarily 401(k)
defined contribution plans covering nonunion associates and certain union associates. The Company
does not contribute to all of the plans. In accordance with those plan provisions, the Company matches
100% of a participant’s pretax payroll contributions, up to a maximum of 3% of such participant’s
pretax annual compensation. Thereafter, the Company will match 50% of the participant’s additional
pretax payroll contributions, up to a maximum of 2% of such participant’s additional pretax annual
compensation. Total expense recognized for the above plans was $65,118 in fiscal 2016, $60,552 in fiscal
2015 and $57,857 in fiscal 2014.
The Company sponsors a Supplemental Executive Retirement Plan (‘‘SERP’’) for its officers,
which is a defined contribution plan that is subject to a five year graduated vesting schedule. The
expense recognized for the SERP was $1,377 in fiscal 2016, $8,748 in fiscal 2015 and $11,531 in fiscal
2014.
Defined Benefit Plans
The Company and its subsidiaries also sponsor a qualified defined benefit pension plan that
requires benefits to be paid to eligible associates based upon years of service and, in some cases,
eligible compensation. The Company’s funding policy for The Rite Aid Pension Plan (The ‘‘Defined
131