Rite Aid 2013 Annual Report Download - page 103

Download and view the complete annual report

Please find page 103 of the 2013 Rite Aid annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 125

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125

RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended March 2, 2013, March 3, 2012 and February 26, 2011
(In thousands, except per share amounts)
16. Retirement Plans (Continued)
The accumulated benefit obligation for the defined benefit pension plan was $158,368 and
$142,117 as of March 2, 2013 and March 3, 2012, respectively. The accumulated benefit obligation for
the nonqualified executive retirement plan was $14,331 and $14,509 as of March 2, 2013 and March 3,
2012, respectively.
The significant actuarial assumptions used for all defined benefit plans to determine the benefit
obligation as of March 2, 2013, March 3, 2012, and February 26, 2011 were as follows:
Defined Benefit Nonqualified Executive
Pension Plan Retirement Plan
2013 2012 2011 2013 2012 2011
Discount rate ................................ 4.00% 4.50% 5.50% 4.00% 4.50% 5.50%
Rate of increase in future compensation levels ........ 4.50% 5.00% 5.00% N/A% 3.00% 3.00%
Weighted average assumptions used to determine net cost for the fiscal years ended March 2,
2013, March 3, 2012 and February 26, 2011 were:
Defined Benefit Nonqualified Executive
Pension Plan Retirement Plan
2013 2012 2011 2013 2012 2011
Discount rate ............................... 4.50% 5.50% 6.00% 4.50% 5.50% 6.00%
Rate of increase in future compensation levels ....... 5.00% 5.00% 5.00% N/A 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 2013, 2012 and 2011.
The Company’s pension plan asset allocations at March 2, 2013 and March 3, 2012 by asset
category were as follows:
March 2, March 3,
2013 2012
Equity securities .................................... 60% 60%
Fixed income securities ............................... 40% 40%
Total ........................................... 100% 100%
102