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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended February 26, 2011, February 27, 2010 and February 28, 2009
(In thousands, except per share amounts)
15. Retirement Plans (Continued)
The estimated net actuarial loss and prior service cost amounts that will be amortized from
accumulated other comprehensive loss into net periodic pension expense in fiscal 2011 are $1,731 and
$639, respectively.
The accumulated benefit obligation for the defined benefit pension plan was $114,845 and
$103,247 as of February 26, 2011 and February 27, 2010, respectively. The accumulated benefit
obligation for the nonqualified executive retirement plan was $14,731 and $14,780 as of February 26,
2011 and February 27, 2010, respectively.
The significant actuarial assumptions used for all defined benefit plans to determine the benefit
obligation as of February 26, 2011, February 27, 2010, and February 28, 2009 were as follows:
Defined Benefit Nonqualified Executive
Pension Plan Retirement Plan
2011 2010 2009 2011 2010 2009
Discount rate ................................. 5.50% 6.00% 7.00% 5.50% 6.00% 7.00%
Rate of increase in future compensation levels ......... 5.00% 5.00% 5.00% 3.00% 3.00% 3.00%
Weighted average assumptions used to determine net cost for the fiscal years ended February 26,
2011, February 27, 2010 and February 28, 2009 were:
Defined Benefit Nonqualified Executive
Pension Plan Retirement Plan
2011 2010 2009 2011 2010 2009
Discount rate ................................. 6.00% 7.00% 6.50% 6.00% 7.00% 6.50%
Rate of increase in future compensation levels ......... 5.00% 5.00% 5.00% 3.00% 3.00% 3.00%
Expected long-term rate of return on plan assets ....... 7.75 7.75 7.75 N/A N/A N/A
To develop the expected long-term rate of return on assets assumption, the Company considered
the historical returns and the future expectations for returns for each asset class, as well as the target
asset allocation of the pension portfolio. This resulted in the selection of the 7.75% long-term rate of
return on plan assets assumption for fiscal 2011, 2010 and 2009.
The Company’s pension plan asset allocations at February 26, 2011 and February 27, 2010 by asset
category were as follows:
February 26, February 27,
2011 2010
Equity securities ................................ 58% 60%
Fixed income securities ........................... 42% 40%
Total ...................................... 100% 100%
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