Rite Aid 2012 Annual Report Download - page 105

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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended March 3, 2012, February 26, 2011 and February 27, 2010
(In thousands, except per share amounts)
14. Retirement Plans (Continued)
• Balance the allocation of assets between the investment managers to minimize concentration
risk;
• Maintain liquidity in the portfolio sufficient to meet plan obligations as they come due; and
• Control administrative and management costs.
The asset allocation established for the pension investment program reflects the risk tolerance of
the Company, as determined by:
• the current and anticipated financial strength of the Company;
• the funded status of the plan; and
• plan liabilities.
Investments in both the equity and fixed income markets will be maintained, recognizing that
historical results indicate that equities (primarily common stocks) have higher expected returns than
fixed income investments. It is also recognized that the correlation between assets and liabilities must
be balanced to address higher volatility of equity investments (return risk) and interest rate risk.
The following targets are to be applied to the allocation of plan assets.
Target
Category Allocation
U.S. equities ............................................. 45%
International equities ....................................... 15%
U.S. fixed income .......................................... 40%
Total ................................................. 100%
The Company expects to contribute $11,500 to the Deferred Benefit Plan and $1,662 to the
nonqualified executive retirement plan during fiscal 2013.
105