Guarantor and Non-Guarantor Condensed Consolidating Financial Information (Tables)

12 Months Ended

Mar. 02, 2019

Guarantor and Non-Guarantor Condensed Consolidating Financial Information

Schedule of condensed consolidating balance sheet

	Rite Aid Corporation
	Condensed Consolidating Balance Sheet
	March 2, 2019
	Rite Aid
	Corporation				Non-
	(Parent		Subsidiary		Guarantor
	Company Only)		Guarantors		Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	122,134	$	22,219	$	—		$	144,353
Accounts receivable, net		—		1,377,342		411,370		—			1,788,712
Intercompany receivable		—		400,526		—		(400,526)	(a)		—
Inventories, net of LIFO reserve of $0,  $604,444,  $0,  $0, and $604,444		—		1,871,941		—		—			1,871,941
Prepaid expenses and other current assets		—		172,448		6,684		—			179,132
Current assets held for sale		—		117,581		—		—			117,581
Total current assets		—		4,061,972		440,273		(400,526)			4,101,719
Property, plant and equipment, net		—		1,308,514		—		—			1,308,514
Goodwill		—		1,108,136		—		—			1,108,136
Other intangibles, net		—		399,678		49,028		—			448,706
Deferred tax assets		—		419,122		(10,038)		—			409,084
Investment in subsidiaries		8,294,315		55,109		—		(8,349,424)	(b)		—
Intercompany receivable		—		3,639,035		—		(3,639,035)	(a)		—
Other assets		—		208,018		7,190		—			215,208
Noncurrent assets held for sale		—		—		—		—			—
Total assets	$	8,294,315	$	11,199,584	$	486,453	$	(12,388,985)		$	7,591,367
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt and lease financing obligations	$	—	$	16,111	$	—	$	—		$	16,111
Accounts payable		—		1,612,181		6,404		—			1,618,585
Intercompany payable		—		—		400,526		(400,526)	(a)		—
Accrued salaries, wages and other current liabilities		14,005		778,020		16,414		—			808,439
Total current liabilities		14,005		2,406,312		423,344		(400,526)			2,443,135
Long-term debt, less current maturities		3,454,585		—		—		—			3,454,585
Lease financing obligations, less current maturities		—		24,064		—		—			24,064
Intercompany payable		3,639,035		—		—		(3,639,035)	(a)		—
Other noncurrent liabilities		—		474,893		8,000		—			482,893
Total liabilities		7,107,625		2,905,269		431,344		(4,039,561)			6,404,677
Commitments and contingencies		—		—		—		—			—
Total stockholders’ equity		1,186,690		8,294,315		55,109		(8,349,424)	(b)		1,186,690
Total liabilities and stockholders’ equity	$	8,294,315	$	11,199,584	$	486,453	$	(12,388,985)		$	7,591,367

(a) Elimination of intercompany accounts receivable and accounts payable amounts.

(b) Elimination of investments in consolidated subsidiaries.

	Rite Aid Corporation
	Condensed Consolidating Balance Sheet
	March 3, 2018
	Rite Aid
	Corporation				Non-
	(Parent		Subsidiary		Guarantor
	Company Only)		Guarantors		Subsidiaries		Eliminations			Consolidated
		(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	441,244	$	6,090	$	—		$	447,334
Accounts receivable, net		—		1,502,507		366,593		—			1,869,100
Intercompany receivable				223,413		—		(223,413)	(a)		—
Inventories, net of LIFO reserve of $0,  $581,090,  $0,  $0, and $581,090		—		1,799,539		—		—			1,799,539
Prepaid expenses and other current assets		—		176,678		4,503		—			181,181
Current assets held for sale		—		438,137		—		—			438,137
Total current assets		—		4,581,518		377,186		(223,413)			4,735,291
Property, plant and equipment, net		—		1,431,246		—		—			1,431,246
Goodwill		—		1,421,120		—		—			1,421,120
Other intangibles, net		—		539,115		51,328		—			590,443
Deferred tax assets		—		594,019		—		—			594,019
Investment in subsidiaries		8,745,390		54,076		—		(8,799,466)	(b)		—
Intercompany receivable		—		3,189,419		—		(3,189,419)	(a)		—
Other assets		—		209,926		7,282		—			217,208
Noncurrent assets held for sale		—		—		—		—			—
Total assets	$	8,745,390	$	12,020,439	$	435,796	$	(12,212,298)		$	8,989,327
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt and lease financing obligations	$	90	$	20,671	$	—	$	—		$	20,761
Accounts payable		—		1,641,676		9,687		—			1,651,363
Intercompany payable		—		—		223,413		(223,413)	(a)		—
Accrued salaries, wages and other current liabilities		65,223		1,031,379		135,134		—			1,231,736
Current liabilities held for sale		549,549		10,656		—		—			560,205
Total current liabilities		614,862		2,704,382		368,234		(223,413)			3,464,065
Long-term debt, less current maturities		3,340,099		—		—		—			3,340,099
Lease financing obligations, less current maturities		—		30,775		—		—			30,775
Intercompany payable		3,189,419		—		—		(3,189,419)	(a)		—
Other noncurrent liabilities		—		539,892		13,486		—			553,378
Noncurrent liabilities held for sale		—		—		—		—			—
Total liabilities		7,144,380		3,275,049		381,720		(3,412,832)			7,388,317
Commitments and contingencies		—		—		—		—			—
Total stockholders’ equity		1,601,010		8,745,390		54,076		(8,799,466)	(b)		1,601,010
Total liabilities and stockholders’ equity	$	8,745,390	$	12,020,439	$	435,796	$	(12,212,298)		$	8,989,327

(a) Elimination of intercompany accounts receivable and accounts payable amounts.

(b) Elimination of investments in consolidated subsidiaries.

Schedule of condensed consolidating statement of operations

	Rite Aid Corporation
	Condensed Consolidating Statement of Operations
	For the Year Ended March 2, 2019
	Rite Aid
	Corporation				Non-
	(Parent		Subsidiary		Guarantor
	Company Only)		Guarantors		Subsidiaries		Eliminations			Consolidated
		(in thousands)
Revenues	$	—	$	21,297,937	$	397,328	$	(55,708)	(a)	$	21,639,557
Costs and expenses:
Cost of revenues		—		16,648,099		370,413		(55,307)	(a)		16,963,205
Selling, general and administrative expenses		—		4,567,690		25,086		(401)	(a)		4,592,375
Lease termination and impairment expenses		—		107,994		—		—			107,994
Goodwill and intangible asset impairment charges		—		375,190		—		—			375,190
Interest expense		206,862		21,704		(838)		—			227,728
Loss on debt retirements		—		554		—		—			554
Gain on sale of assets, net		—		(38,012)		—		—			(38,012)
Equity in earnings of subsidiaries, net of tax		210,736		(1,033)		—		(209,703)	(b)		—
		417,598		21,682,186		394,661		(265,411)			22,229,034
Income (loss) from continuing operations before income taxes		(417,598)		(384,249)		2,667		209,703			(589,477)
Income tax expense (benefit)		—		75,843		1,634		—			77,477
Net income (loss) from continuing operations		(417,598)		(460,092)		1,033		209,703			(666,954)
Net income (loss) from discontinued operations		(4,615)		249,356		—		—			244,741
Net income (loss)	$	(422,213)	$	(210,736)	$	1,033	$	209,703	(b)	$	(422,213)
Total other comprehensive income (loss)		3,490		3,490		—		(3,490)			3,490
Comprehensive income (loss)	$	(418,723)	$	(207,246)	$	1,033	$	206,213		$	(418,723)

	Rite Aid Corporation
	Condensed Consolidating Statement of Operations
	For the Year Ended March 3, 2018
	Rite Aid
	Corporation				Non-
	(Parent		Subsidiary		Guarantor
	Company Only)		Guarantors		Subsidiaries		Eliminations			Consolidated
	(in thousands)
Revenues	$	—	$	21,413,734	$	209,356	$	(94,122)	(a)	$	21,528,968
Costs and expenses:
Cost of revenues		—		16,645,136		197,084		(93,357)	(a)		16,748,863
Selling, general and administrative expenses		—		4,635,531		16,496		(765)	(a)		4,651,262
Lease termination and impairment expenses		—		58,765		—		—			58,765
Goodwill and intangible asset impairment charges		—		261,727		—		—			261,727
Interest expense		183,825		19,261		(318)		—			202,768
Walgreens Boots Alliance, Inc. termination fee		(325,000)		—		—		—			(325,000)
Gain on sale of assets, net		—		(25,872)		—		—			(25,872)
Equity in earnings of subsidiaries, net of tax		(1,034,775)		(4,072)		—		1,038,847	(b)		—
		(1,175,950)		21,590,476		213,262		944,725			21,572,513
Income (loss) from continuing operations before income taxes		1,175,950		(176,742)		(3,906)		(1,038,847)			(43,545)
Income tax expense (benefit)		—		313,965		(7,978)		—			305,987
Net income (loss) from continuing operations		1,175,950		(490,707)		4,072		(1,038,847)			(349,532)
Net income (loss) from discontinued operations		(232,480)		1,525,482		—		—			1,293,002
Net income (loss)	$	943,470	$	1,034,775	$	4,072	$	(1,038,847)	(b)	$	943,470
Total other comprehensive income (loss)		7,255		7,255		—		(7,255)			7,255
Comprehensive income (loss)	$	950,725	$	1,042,030	$	4,072	$	(1,046,102)		$	950,725

(a) Elimination of intercompany revenues and expenses.

(b) Elimination of equity in earnings of subsidiaries.

	Rite Aid Corporation
	Condensed Consolidating Statement of Operations
	For the Year Ended March 4, 2017
	Rite Aid
	Corporation				Non-
	(Parent		Subsidiary		Guarantor
	Company Only)		Guarantors		Subsidiaries		Eliminations			Consolidated
	(in thousands)
Revenues	$	—	$	22,821,940	$	223,077	$	(117,477)	(a)	$	22,927,540
Costs and expenses:
Cost of revenues		—		17,767,363		213,225		(117,755)	(a)		17,862,833
Selling, general and administrative expenses		—		4,763,176		13,541		278	(a)		4,776,995
Lease termination and impairment expenses		—		45,778		—		—			45,778
Interest expense		182,282		17,796		(13)		—			200,065
Gain on sale of assets, net		—		(6,649)		—		—			(6,649)
Equity in earnings of subsidiaries, net of tax		(418,261)		5,101		—		413,160	(b)		—
		(235,979)		22,592,565		226,753		295,683			22,879,022
Income (loss) before income taxes		235,979		229,375		(3,676)		(413,160)			48,518
Income tax expense		—		43,013		1,425		—			44,438
Net income (loss) from continuing operations		235,979		186,362		(5,101)		(413,160)	(b)		4,080
Net income (loss) from discontinued operations		(231,926)		231,899		—		—			(27)
Net income (loss)	$	4,053	$	418,261	$	(5,101)	$	(413,160)		$	4,053
Total other comprehensive income (loss)		5,464		5,464		—		(5,464)			5,464
Comprehensive income (loss)	$	9,517	$	423,725	$	(5,101)	$	(418,624)		$	9,517

(a)Elimination of intercompany revenues and expenses.

(b)Elimination of equity in earnings of subsidiaries.

Schedule of condensed consolidating statement of cash flows

	Rite Aid Corporation
	Condensed Consolidating Statement of Cash Flows
	For the Year Ended March 2, 2019
	Rite Aid
	Corporation				Non-
	(Parent		Subsidiary		Guarantor
	Company Only)		Guarantors		Subsidiaries		Eliminations		Consolidated
	(in thousands)
Operating activities:
Net cash (used in) provided by operating activities	$	(255,962)	$	74,124	$	16,129	$	—	$	(165,709)
Investing activities:
Payments for property, plant and equipment		—		(196,778)		—		—		(196,778)
Intangible assets acquired		—		(47,911)		—		—		(47,911)
Intercompany activity		—		(727,221)		—		727,221		—
Proceeds from sale-leaseback transactions		—		2,587		—		—		2,587
Proceeds from dispositions of assets and investments		—		43,550		—		—		43,550
Net cash (used in) provided by investing activities		—		(925,773)		—		727,221		(198,552)
Financing activities:
Proceeds from issuance of long-term debt		450,000		—		—		—		450,000
Net proceeds from revolver		875,000		—		—		—		875,000
Principal payments on long-term debt		(427,992)		(12,378)		—		—		(440,370)
Change in zero balance cash accounts		—		(59,481)		—		—		(59,481)
Net proceeds from issuance of common stock		2,294		—		—		—		2,294
Financing fees paid for early debt redemption		—		(171)		—		—		(171)
Payments for taxes related to net share settlement of equity awards		—		(2,419)		—		—		(2,419)
Intercompany activity		727,221		—		—		(727,221)		—
Deferred financing costs paid		(21,564)		—		—		—		(21,564)
Net cash provided by (used in) financing activities		1,604,959		(74,449)		—		(727,221)		803,289
Cash flows of discontinued operations:
Operating activities of discontinued operations		(4,615)		(58,341)		—		—		(62,956)
Investing activities of discontinued operations		—		664,740		—		—		664,740
Financing activities of discontinued operations		(1,344,382)		589		—		—		(1,343,793)
Net cash provided by (used in) discontinued operations		(1,348,997)		606,988		—		—		(742,009)
(Decrease) increase in cash and cash equivalents		—		(319,110)		16,129		—		(302,981)
Cash and cash equivalents, beginning of period		—		441,244		6,090		—		447,334
Cash and cash equivalents, end of period	$	—	$	122,134	$	22,219	$	—	$	144,353

	Rite Aid Corporation
	Condensed Consolidating Statement of Cash Flows
	For the Year Ended March 3, 2018
	Rite Aid
	Corporation
	(Parent				Non-
	Company		Subsidiary		Guarantor
	Only)		Guarantors		Subsidiaries		Eliminations		Consolidated
	(in thousands)
Operating activities:
Net cash provided by (used in) operating activities	$	158,247	$	379,439	$	(26,216)	$	—	$	511,470
Investing activities:
Payments for property, plant and equipment		—		(185,879)		—		—		(185,879)
Intangible assets acquired		—		(28,885)		—		—		(28,885)
Intercompany activity		—		(3,460,291)		—		3,460,291		—
Proceeds from insured loss		—		4,239		—		—		4,239
Proceeds from dispositions of assets and investments		—		27,586		—		—		27,586
Net cash (used in) provided by investing activities		—		(3,643,230)		—		3,460,291		(182,939)
Financing activities:
Net payments to revolver		(265,000)		—		—		—		(265,000)
Principal payments on long-term debt		—		(9,882)		—		—		(9,882)
Change in zero balance cash accounts		—		35,605		—		—		35,605
Net proceeds from issuance of common stock		5,796		—		—		—		5,796
Payments for taxes related to net share settlement of equity awards		—		(4,103)		—		—		(4,103)
Intercompany activity		3,460,291		—		—		(3,460,291)		—
Net cash provided by (used in) financing activities		3,201,087		21,620		—		(3,460,291)		(237,584)
Cash flows of discontinued operations:
Operating activities of discontinued operations		(224,300)		(20,826)		—		—		(245,126)
Investing activities of discontinued operations		—		3,496,222		—		—		3,496,222
Financing activities of discontinued operations		(3,135,034)		(5,085)		—		—		(3,140,119)
Net cash provided by (used in) discontinued operations		(3,359,334)		3,470,311		—		—		110,977
(Decrease) increase in cash and cash equivalents		—		228,140		(26,216)		—		201,924
Cash and cash equivalents, beginning of period		—		213,104		32,306		—		245,410
Cash and cash equivalents, end of period	$	—	$	441,244	$	6,090	$	—	$	447,334

	Rite Aid Corporation
	Condensed Consolidating Statement of Cash Flows
	For the Year Ended March 4, 2017
	Rite Aid
	Corporation
	(Parent				Non-
	Company		Subsidiary		Guarantor
	Only)		Guarantors		Subsidiaries		Eliminations		Consolidated
	(in thousands)
Operating activities:
Net cash (used in) provided by operating activities	$	(162,842)	$	347,465	$	(1,596)	$	—	$	183,027
Investing activities:
Payments for property, plant and equipment		—		(254,149)		—		—		(254,149)
Intangible assets acquired		—		(39,648)		—		—		(39,648)
Intercompany activity		—		(57,817)		—		57,817		—
Proceeds from dispositions of assets and investments		—		16,852		—		—		16,852
Net cash (used in) provided by investing activities		—		(334,762)		—		57,817		(276,945)
Financing activities:
Net proceeds from revolver		330,000		—		—		—		330,000
Principal payments on long-term debt		—		(16,588)		—		—		(16,588)
Change in zero balance cash accounts		—		43,080		—		—		43,080
Net proceeds from issuance of common stock		6,951		—		—		—		6,951
Excess tax benefit on stock options and restricted stock		—		543		—		—		543
Payments for taxes related to net share settlement of equity awards		—		(6,254)		—		—		(6,254)
Intercompany activity		57,817		—		—		(57,817)		—
Net cash provided by (used in) financing activities		394,768		20,781		—		(57,817)		357,732
Cash flows of discontinued operations:
Operating activities of discontinued operations		(231,926)		281,016		—		—		49,090
Investing activities of discontinued operations		—		(187,314)		—		—		(187,314)
Financing activities of discontinued operations		—		(4,651)		—		—		(4,651)
Net cash provided by (used in) discontinued operations		(231,926)		89,051		—		—		(142,875)
Increase (decrease) in cash and cash equivalents		—		122,535		(1,596)		—		120,939
Cash and cash equivalents, beginning of period		—		90,569		33,902		—		124,471
Cash and cash equivalents, end of period	$	—	$	213,104	$	32,306	$	—	$	245,410