Rite Aid 2014 Annual Report Download - page 97

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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended March 1, 2014, March 2, 2013 and March 3, 2012
(In thousands, except per share amounts)
15. Retirement Plans (Continued)
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
Benefit Pension Plan’’) is to contribute the minimum amount required by the Employee Retirement
Income Security Act of 1974. However, the Company may, at its sole discretion, contribute additional
funds to the plan. The Company made contributions of $8,000 in fiscal 2014, $5,583 in fiscal 2013 and
$14,878 in fiscal 2012.
The Company also maintains a nonqualified executive retirement plan for certain former
employees who, pursuant to their employment agreements, did not participate in the SERP. The
Company no longer enrolls new participants into this plan. These participants generally receive an
annual benefit payable monthly over fifteen years. This nonqualified defined benefit plan is unfunded.
Net periodic pension expense and other changes recognized in other comprehensive income for the
defined benefit pension plans and the nonqualified executive retirement plan included the following
components:
Nonqualified Executive
Defined Benefit Pension Plan Retirement Plan
2014 2013 2012 2014 2013 2012
Service cost ......................... $ 3,341 $ 2,908 $ 2,988 $ — $ — $ 21
Interest cost ......................... 6,120 6,128 6,501 541 616 771
Expected return on plan assets ........... (6,738) (6,719) (6,192) — — —
Amortization of unrecognized prior service
cost ............................. 240 240 639 — — —
Amortization of unrecognized net loss (gain) . 4,935 3,926 2,435 (351) 866 (582)
Net pension expense(income) ........... $ 7,898 $ 6,483 $ 6,371 $ 190 $1,482 $ 210
Other changes recognized in other
comprehensive loss:
Unrecognized net (gain) loss arising during
period .......................... $(18,860) $12,901 $24,664 $(351) $ 866 $ 595
Prior service cost arising during period .... — — (275) — — —
Amortization of unrecognized prior service
costs ........................... (240) (240) (639) — — —
Amortization of unrecognized net (loss)
gain ........................... (4,935) (3,926) (2,435) 351 (866) 582
Net amount recognized in other
comprehensive loss .................. (24,035) 8,735 21,315 — — 1,177
Net amount recognized in pension expense
and other comprehensive loss ........... $(16,137) $15,218 $27,686 $ 190 $1,482 $1,387
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