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

3 Months Ended

Jun. 02, 2018

Guarantor and Non-Guarantor Condensed Consolidating Financial Information

Schedule of condensed consolidating balance sheet

	Rite Aid Corporation Condensed Consolidating Balance Sheet June 2, 2018 (unaudited)
	Rite Aid Corporation (Parent Company Only)		Subsidiary Guarantors		Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	138,400	$	8,692	$	—		$	147,092
Accounts receivable, net	—		1,390,296		518,659		—			1,908,955
Intercompany receivable	—		337,627		—		(337,627		)(a)	—
Inventories, net of LIFO reserve of $0, $591,056, $0, $0, and $591,056	—		1,809,595		—		—			1,809,595
Prepaid expenses and other current assets	—		147,760		3,299		—			151,059
Current assets held for sale	—		179,442		—		—			179,442
Total current assets	—		4,003,120		530,650		(337,627		)	4,196,143
Property, plant and equipment, net	—		1,401,924		—		—			1,401,924
Goodwill	—		1,421,120		—		—			1,421,120
Other intangibles, net	—		518,167		50,753		—			568,920
Deferred tax assets	—		522,674		—		—			522,674
Investment in subsidiaries	8,971,553		52,591		—		(9,024,144		)(b)	—
Intercompany receivable	—		3,949,896		—		(3,949,896		)(a)	—
Other assets	—		211,415		7,257		—			218,672
Total assets	$	8,971,553	$	12,080,907	$	588,660	$	(13,311,667	)	$	8,329,453
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt and lease financing obligations	$	90	$	18,935	$	—	$	—		$	19,025
Accounts payable	—		1,762,078		5,699		—			1,767,777
Intercompany payable	—		—		337,627		(337,627		)(a)	—
Accrued salaries, wages and other current liabilities	74,552		781,315		174,425		—			1,030,292
Total current liabilities	74,642		2,562,328		517,751		(337,627		)	2,817,094
Long-term debt, less current maturities	3,134,704		—		—		—			3,134,704
Lease financing obligations, less current maturities	—		28,874		—		—			28,874
Intercompany payable	3,949,896		—		—		(3,949,896		)(a)	—
Other noncurrent liabilities	—		518,152		18,318		—			536,470
Total liabilities	7,159,242		3,109,354		536,069		(4,287,523		)	6,517,142
Commitments and contingencies	—		—		—		—			—
Total stockholders’ equity	1,812,311		8,971,553		52,591		(9,024,144		)(b)	1,812,311
Total liabilities and stockholders’ equity	$	8,971,553	$	12,080,907	$	588,660	$	(13,311,667	)	$	8,329,453

(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 (Parent Company Only)		Subsidiary Guarantors		Non- Guarantor 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 sales	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 Thirteen Weeks Ended June 2, 2018 (unaudited)
	Rite Aid Corporation (Parent Company Only)			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Revenues	$	—		$	5,321,025		$	95,584		$	(28,119	)(a)	$	5,388,490
Costs and expenses:
Cost of revenues	—			4,158,627			89,032			(27,918		)(a)	4,219,741
Selling, general and administrative expenses	—			1,144,832			7,996			(201		)(a)	1,152,627
Lease termination and impairment charges	—			9,859			—			—			9,859
Interest expense	59,939			2,946			(93		)	—			62,792
Loss on debt retirements	—			554			—			—			554
Gain on sale of assets, net	—			(5,859		)	—			—			(5,859		)
Equity in earnings of subsidiaries, net of tax	(278,970		)	1,485			—			277,485		(b)	—
	(219,031		)	5,312,444			96,935			249,366			5,439,714
Income (loss) from continuing operations before income taxes	219,031			8,581			(1,351		)	(277,485		)	(51,224		)
Income tax expense (benefit)	—			(9,631		)	134			—			(9,497		)
Net income (loss) from continuing operations	$	219,031		$	18,212		$	(1,485	)	$	(277,485	)(b)	$	(41,727	)
Net income (loss) from discontinued operations	(4,615		)	260,758			—			—			256,143
Net income (loss)	214,416			278,970			(1,485		)	(277,485		)	214,416
Total other comprehensive income (loss)	364			364			—			(364		)	364
Comprehensive (loss) income	$	214,780		$	279,334		$	(1,485	)	$	(277,849	)	$	214,780

(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 Thirteen Weeks Ended June 3, 2017 (unaudited)
	Rite Aid Corporation (Parent Company Only)			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Revenues	$	—		$	5,415,128		$	39,450		$	(18,055	)(a)	$	5,436,523
Costs and expenses:
Cost of revenues	—			4,255,202			37,902			(18,524		)(a)	4,274,580
Selling, general and administrative expenses	—			1,157,270			3,201			469		(a)	1,160,940
Lease termination and impairment expenses	—			4,038			—			—			4,038
Interest expense	46,447			4,515			38			—			51,000
Gain on sale of assets, net	—			(5,877		)	—			—			(5,877		)
Equity in earnings of subsidiaries, net of tax	(30,035		)	1,312			—			28,723		(b)	—
	16,412			5,416,460			41,141			10,668			5,484,681
Earnings from continuing operations before income taxes	(16,412		)	(1,332		)	(1,691		)	(28,723		)	(48,158		)
Income tax expense (benefit)	—			(11,742		)	(379		)	—			(12,121		)
Net income (loss) from continuing operations	(16,412		)	10,410			(1,312		)	(28,723		)	(36,037		)
Net income (loss) from discontinued operations	(58,937		)	19,625			—			—			(39,312		)
Net income (loss)	$	(75,349	)	$	30,035		$	(1,312	)	$	(28,723	)(b)	$	(75,349	)
Total other comprehensive income (loss)	514			514			—			(514		)	514
Comprehensive (loss) income	$	(74,835	)	$	30,549		$	(1,312	)	$	(29,237	)	$	(74,835	)

(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 Thirteen Weeks Ended June 2, 2018 (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	$	(48,608	)	$	29,692		$	2,602	$	—		$	(16,314	)
Investing activities:
Payments for property, plant and equipment	—			(47,971		)	—		—			(47,971		)
Intangible assets acquired	—			(13,655		)	—		—			(13,655		)
Intercompany activity	—			(813,705		)	—		813,705			—
Proceeds from dispositions of assets and investments	—			9,916			—		—			9,916
Proceeds from sale-leaseback transactions	—			2,587			—		—			2,587
Net cash (used in) provided by investing activities	—			(862,828		)	—		813,705			(49,123		)
Financing activities:
Net proceeds from revolver	190,000			—			—		—			190,000
Principal payments on long-term debt	(426,361		)	(4,745		)	—		—			(431,106		)
Change in zero balance cash accounts	—			1,083			—		—			1,083
Net proceeds from issuance of common stock	910			—			—		—			910
Financing fees paid for early redemption	—			(13		)	—		—			(13		)
Intercompany activity	813,705			—			—		(813,705		)	—
Net cash provided by (used in) financing activities	578,254			(3,675		)	—		(813,705		)	(239,126		)
Cash flows of discontinued operations:
Operating activities of discontinued operations	(4,615		)	(69,435		)	—		—			(74,050		)
Investing activities of discontinued operations	—			603,402			—		—			603,402
Financing activities of discontinued operations	(525,031		)	—			—		—			(525,031		)
Net cash (used in) provided by discontinued operations	(529,646		)	533,967			—		—			4,321
(Decrease) increase in cash and cash equivalents	—			(302,844		)	2,602		—			(300,242		)
Cash and cash equivalents, beginning of period	—			441,244			6,090		—			447,334
Cash and cash equivalents, end of period	$	—		$	138,400		$	8,692	$	—		$	147,092

	Rite Aid Corporation Condensed Consolidating Statement of Cash Flows For the Thirteen Weeks Ended June 3, 2017 (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	$	(13,020	)	$	60,294		$	495	$	—		$	47,769
Investing activities:
Payments for property, plant and equipment	—			(38,325		)	—		—			(38,325		)
Intangible assets acquired	—			(5,521		)	—		—			(5,521		)
Intercompany activity	—			(161,810		)	—		161,810			—
Proceeds from insured loss	—			8,639			—		—			8,639
Proceeds from dispositions of assets and investments	—			2,137			—		—			2,137
Net cash (used in) provided by investing activities	—			(194,880		)	—		161,810			(33,070		)
Financing activities:
Net payments to revolver	(90,000		)	—			—		—			(90,000		)
Principal payments on long-term debt	—			(3,503		)	—		—			(3,503		)
Change in zero balance cash accounts	—			28,768			—		—			28,768
Net proceeds from issuance of common stock	147			—			—		—			147
Payments for taxes related to net share settlement of equity awards	—			(147		)	—		—			(147		)
Intercompany activity	161,810			—			—		(161,810		)	—
Net cash provided by (used in) financing activities	71,957			25,118			—		(161,810		)	(64,735		)
Cash flows of discontinued operations:
Operating activities of discontinued operations	(58,937		)	103,902			—		—			44,965
Investing activities of discontinued operations	—			(25,126		)	—		—			(25,126		)
Financing activities of discontinued operations	—			(764		)	—		—			(764		)
Net cash (used in) provided by discontinued operations	(58,937		)	78,012			—		—			19,075
(Decrease) increase in cash and cash equivalents	—			(31,456		)	495		—			(30,961		)
Cash and cash equivalents, beginning of period	—			213,104			32,306		—			245,410
Cash and cash equivalents, end of period	$	—		$	181,648		$	32,801	$	—		$	214,449