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

3 Months Ended

May 28, 2016

Guarantor and Non-Guarantor Condensed Consolidating Financial Information

Schedule of condensed consolidated balance sheet

	Rite Aid Corporation Condensed Consolidating Balance Sheet May 28, 2016 (unaudited)
	Rite Aid Corporation (Parent Company Only)		Subsidiary Guarantors		Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	105,971	$	38,869	$	—		$	144,840
Accounts receivable, net	—		1,354,315		324,851		—			1,679,166
Intercompany receivable	—		271,211		—		(271,211		)(a)	—
Inventories, net of LIFO reserve of $0, $1,020,147, $0, $0, and $1,020,147	—		2,623,886		—		—			2,623,886
Prepaid expenses and other current assets	—		102,698		4,595		—			107,293
Total current assets	—		4,458,081		368,315		(271,211		)	4,555,185
Property, plant and equipment, net	—		2,257,795		—		—			2,257,795
Goodwill	—		1,713,475		—		—			1,713,475
Other intangibles, net	—		909,356		55,353		—			964,709
Deferred tax assets	—		1,544,890		—		—			1,544,890

	Rite Aid Corporation Condensed Consolidating Balance Sheet May 28, 2016 (unaudited)
	Rite Aid Corporation (Parent Company Only)		Subsidiary Guarantors		Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
Investment in subsidiaries	14,940,808		57,115		—		(14,997,923		)(b)	—
Intercompany receivable	—		7,356,087		—		(7,356,087		)(a)	—
Other assets	—		212,326		6,567		—			218,893
Total assets	$	14,940,808	$	18,509,125	$	430,235	$	(22,625,221	)	$	11,254,947
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt and lease financing obligations	$	90	$	25,550	$	—	$	—		$	25,640
Accounts payable	—		1,662,409		1,027		—			1,663,436
Intercompany payable	—		—		271,211		(271,211		)(a)	—
Accrued salaries, wages and other current liabilities	94,102		1,112,634		83,957		—			1,290,693
Total current liabilities	94,192		2,800,593		356,195		(271,211		)	2,979,769
Long-term debt, less current maturities	6,899,025		—		—		—			6,899,025
Lease financing obligations, less current maturities	—		49,737		—		—			49,737
Intercompany payable	7,356,087		—		—		(7,356,087		)(a)	—
Other noncurrent liabilities	—		717,987		16,925		—			734,912
Total liabilities	14,349,304		3,568,317		373,120		(7,627,298		)	10,663,443
Commitments and contingencies	—		—		—		—			—
Total stockholders’ equity	591,504		14,940,808		57,115		(14,997,923		)	591,504
Total liabilities and stockholders’ equity	$	14,940,808	$	18,509,125	$	430,235	$	(22,625,221	)	$	11,254,947

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

(b) Elimination of investments in consolidated subsidiaries.

	Rite Aid Corporation Condensed Consolidating Balance Sheet February 27, 2016
	Rite Aid Corporation (Parent Company Only)		Subsidiary Guarantors		Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	90,569	$	33,902	$	—		$	124,471
Accounts receivable, net	—		1,316,797		284,211		—			1,601,008
Intercompany receivable	—		224,220		—		(224,220		)(a)	—
Inventories, net of LIFO reserve of $0, $1,006,396, $0, $0, and $1,006,396	—		2,697,104		—		—			2,697,104
Prepaid expenses and other current assets	—		121,684		6,460		—			128,144
Total current assets	—		4,450,374		324,573		(224,220		)	4,550,727
Property, plant and equipment, net	—		2,255,398		—		—			2,255,398
Goodwill	—		1,713,475		—		—			1,713,475
Other intangibles, net	—		948,451		55,928		—			1,004,379
Deferred tax assets	—		1,539,141		—		—			1,539,141
Investment in subsidiaries	14,832,523		57,167		—		(14,889,690		)(b)	—
Intercompany receivable	—		7,270,869		—		(7,270,869		)(a)	—
Other assets	—		207,821		6,069		—			213,890
Total assets	$	14,832,523	$	18,442,696	$	386,570	$	(22,384,779	)	$	11,277,010
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt and lease financing obligations	$	90	$	26,758	$	—	$	—		$	26,848

Accounts payable	—	1,541,984	813	—		1,542,797
Intercompany payable	—	—	224,220	(224,220	)(a)	—
Accrued salaries, wages and other current liabilities	65,743	1,274,074	87,433	—		1,427,250
Total current liabilities	65,833	2,842,816	312,466	(224,220	)	2,996,895
Long-term debt, less current maturities	6,914,393	—	—	—		6,914,393
Lease financing obligations, less current maturities	—	52,895	—	—		52,895
Intercompany payable	7,270,869	—	—	(7,270,869	)(a)	—

	Rite Aid Corporation Condensed Consolidating Balance Sheet February 27, 2016
	Rite Aid Corporation (Parent Company Only)		Subsidiary Guarantors		Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
Other noncurrent liabilities	—		714,462		16,937		—			731,399
Total liabilities	14,251,095		3,610,173		329,403		(7,495,089		)	10,695,582
Commitments and contingencies	—		—		—		—			—
Total stockholders’ equity	581,428		14,832,523		57,167		(14,889,690		)	581,428
Total liabilities and stockholders’ equity	$	14,832,523	$	18,442,696	$	386,570	$	(22,384,779	)	$	11,277,010

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

(b) Elimination of investments in consolidated subsidiaries.

Schedule of condensed consolidated statements of operations

	Rite Aid Corporation Condensed Consolidating Statement of Operations For the Thirteen Weeks Ended May 28, 2016 (unaudited)
	Rite Aid Corporation (Parent Company Only)			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Revenues	$	—		$	8,168,192		$	58,528		$	(42,539	)(a)	$	8,184,181
Costs and expenses:
Cost of revenues	—			6,275,447			55,846			(41,412		)(a)	6,289,881
Selling, general and administrative expenses	—			1,791,637			2,737			(1,127		)(a)	1,793,247
Lease termination and impairment expenses	—			5,781			—			—			5,781
Interest expense (income)	100,448			4,666			(1		)	—			105,113
Loss on sale of assets, net	—			1,056			—			—			1,056
Equity in earnings of subsidiaries, net of tax	(95,860		)	52			—			95,808		(b)	—
	4,588			8,078,639			58,582			53,269			8,195,078
(Loss) income before income taxes	(4,588		)	89,553			(54		)	(95,808		)	(10,897		)
Income tax benefit	—			(6,307		)	(2		)	—			(6,309		)
Net (loss) income	$	(4,588	)	$	95,860		$	(52	)	$	(95,808	)	$	(4,588	)
Total other comprehensive income (loss)	681			681			—			(681		)	681
Comprehensive (loss) income	$	(3,907	)	$	96,541		$	(52	)	$	(96,489	)	$	(3,907	)

(a) Elimination of intercompany revenues and expenses.

(b) Elimination of equity in earnings of subsidiaries.

Schedule of condensed consolidated statements of cash flows

	Rite Aid Corporation Condensed Consolidating Statement of Cash Flows For the Thirteen Weeks Ended May 28, 2016 (unaudited)
	Rite Aid Corporation (Parent Company Only)			Subsidiary Guarantors			Non- Guarantor Subsidiaries		Eliminations		Consolidated
	(in thousands)
Operating activities:
Net cash (used in) provided by operating activities	$	(67,457	)	$	222,434		$	4,967	$	—	$	159,944
Investing activities:
Payments for property, plant and equipment	—			(106,077		)	—		—		(106,077		)
Intangible assets acquired	—			(16,381		)	—		—		(16,381		)
Intercompany activity	—			(85,086		)	—		85,086		—
Proceeds from dispositions of assets and investments	—			3,088			—		—		3,088

Net cash (used in) provided by investing activities	—			(204,456		)	—		85,086			(119,370		)
Financing activities:
Net payments on revolver	(20,000		)	—			—		—			(20,000		)
Principal payments on long-term debt	—			(5,721		)	—		—			(5,721		)
Change in zero balance cash accounts	—			2,262			—		—			2,262
Net proceeds from issuance of common stock	2,371			—			—		—			2,371
Excess tax benefit on stock options and restricted stock	—			883			—		—			883
Intercompany activity	85,086			—			—		(85,086		)	—
Net cash provided by (used in) financing activities	67,457			(2,576		)	—		(85,086		)	(20,205		)
Increase in cash and cash equivalents	—			15,402			4,967		—			20,369
Cash and cash equivalents, beginning of period	—			90,569			33,902		—			124,471
Cash and cash equivalents, end of period	$	—		$	105,971		$	38,869	$	—		$	144,840