Rite Aid 2015 Annual Report Download - page 108

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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended February 28, 2015, March 1, 2014 and March 2, 2013
(In thousands, except per share amounts)
17. Retirement Plans (Continued)
for the nonqualified executive retirement plan was $12,685 and $12,865 as of February 28, 2015 and
March 1, 2014, respectively.
The significant actuarial assumptions used for all defined benefit plans to determine the benefit
obligation as of February 28, 2015, March 1, 2014 and March 2, 2013 were as follows:
Nonqualified
Defined Benefit Executive
Pension Plan Retirement Plan
2015 2014 2013 2015 2014 2013
Discount rate ................................... 4.00% 4.50% 4.00% 4.00% 4.50% 4.00%
Rate of increase in future compensation levels ........... N/A 4.50% 4.50% N/A N/A N/A
Expected long-term rate of return on plan assets ......... 6.50% 7.75% 7.75% N/A N/A N/A
Weighted average assumptions used to determine net cost for the fiscal years ended February 28,
2015, March 1, 2014 and March 2, 2013 were:
Nonqualified
Defined Benefit Executive
Pension Plan Retirement Plan
2015 2014 2013 2015 2014 2013
Discount rate ................................... 4.50% 4.00% 4.50% 4.50% 4.00% 4.50%
Rate of increase in future compensation levels ........... N/A 4.50% 5.00% N/A N/A N/A
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 6.50% long-term rate of
return on plan assets assumption for fiscal 2015 and 7.75% for fiscal 2014 and fiscal 2013.
The Company’s pension plan asset allocations at February 28, 2015 and March 1, 2014 by asset
category were as follows:
February 28, March 1,
2015 2014
Equity securities .................................. 53% 62%
Fixed income securities ............................. 47% 38%
Total ......................................... 100% 100%
The investment objectives of the Defined Benefit Pension Plan, the only defined benefit plan with
assets, are to:
• Achieve a rate of return on investments that exceeds inflation over a full market cycle and is
consistent with actuarial assumptions;
108