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

3 Months Ended

Jun. 03, 2017

Guarantor and Non-Guarantor Condensed Consolidating Financial Information

Schedule of condensed consolidating balance sheet

	Rite Aid Corporation Condensed Consolidating Balance Sheet June 3, 2017 (unaudited)
	Rite Aid Corporation (Parent Company Only)		Subsidiary Guarantors		Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	181,648	$	32,801	$	—		$	214,449
Accounts receivable, net	—		1,459,122		322,053		—			1,781,175
Intercompany receivable	—		225,223		—		(225,223		)(a)	—
Inventories, net of LIFO reserve of $0, $1,016,650, $0, $0, and $1,016,650	—		2,789,176		—		—			2,789,176
Prepaid expenses and other current assets	—		184,090		8,677		—			192,767
Total current assets	—		4,839,259		363,531		(225,223		)	4,977,567
Property, plant and equipment, net	—		2,218,333		—		—			2,218,333
Goodwill	—		1,715,479		—		—			1,715,479
Other intangibles, net	—		734,916		53,053		—			787,969
Deferred tax assets	—		1,556,301		—		—			1,556,301
Investment in subsidiaries	15,327,513		48,692		—		(15,376,205		)(b)	—
Intercompany receivable	—		7,493,715		—		(7,493,715		)(a)	—
Other assets	—		204,489		—		—			204,489
Total assets	$	15,327,513	$	18,811,184	$	416,584	$	(23,095,143	)	$	11,460,138
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt and lease financing obligations	$	90	$	22,370	$	—	$	—		$	22,460
Accounts payable	—		1,642,397		4,060		—			1,646,457
Intercompany payable	—		—		225,223		(225,223		)(a)	—
Accrued salaries, wages and other current liabilities	95,162		1,126,776		117,840		—			1,339,778
Total current liabilities	95,252		2,791,543		347,123		(225,223		)	3,008,695
Long-term debt, less current maturities	7,177,918		—		—		—			7,177,918
Lease financing obligations, less current maturities	—		39,889		—		—			39,889
Intercompany payable	7,493,715		—		—		(7,493,715		)(a)	—
Other noncurrent liabilities	—		652,239		20,769		—			673,008
Total liabilities	14,766,885		3,483,671		367,892		(7,718,938		)	10,899,510
Commitments and contingencies	—		—		—		—			—
Total stockholders’ equity	560,628		15,327,513		48,692		(15,376,205		)(b)	560,628
Total liabilities and stockholders’ equity	$	15,327,513	$	18,811,184	$	416,584	$	(23,095,143	)	$	11,460,138

(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 4, 2017
	Rite Aid Corporation (Parent Company Only)		Subsidiary Guarantors		Non- Guarantor Subsidiaries		Eliminations			Consolidated
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	213,104	$	32,306	$	—		$	245,410
Accounts receivable, net	—		1,506,288		264,838		—			1,771,126
Intercompany receivable	—		215,862		—		(215,862		)(a)	—
Inventories, net of LIFO reserve of $0, $999,776, $0, $0, and $999,776	—		2,837,211		—		—			2,837,211
Prepaid expenses and other current assets	—		203,033		8,508		—			211,541
Total current assets	—		4,975,498		305,652		(215,862		)	5,065,288
Property, plant and equipment, net	—		2,251,692		—		—			2,251,692
Goodwill	—		1,715,479		—		—			1,715,479
Other intangibles, net	—		782,167		53,628		—			835,795
Deferred tax assets	—		1,505,564		—		—			1,505,564
Investment in subsidiaries	15,275,488		50,004		—		(15,325,492		)(b)	—
Intercompany receivable	—		7,331,675		—		(7,331,675		)(a)	—
Other assets	—		219,934		—		—			219,934
Total assets	$	15,275,488	$	18,832,013	$	359,280	$	(22,873,029	)	$	11,593,752
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt and lease financing obligations	$	90	$	21,245	$	—	$	—		$	21,335
Accounts payable	—		1,609,025		4,884		—			1,613,909
Intercompany payable	—		—		215,862		(215,862		)(a)	—
Accrued salaries, wages and other current liabilities	66,365		1,236,297		67,342		—			1,370,004
Total current liabilities	66,455		2,866,567		288,088		(215,862		)	3,005,248
Long-term debt, less current maturities	7,263,288		—		—		—			7,263,288
Lease financing obligations, less current maturities	—		44,070		—		—			44,070
Intercompany payable	7,331,675		—		—		(7,331,675		)(a)	—
Other noncurrent liabilities	—		645,888		21,188		—			667,076
Total liabilities	14,661,418		3,556,525		309,276		(7,547,537		)	10,979,682
Commitments and contingencies	—		—		—		—			—
Total stockholders’ equity	614,070		15,275,488		50,004		(15,325,492		)(b)	614,070
Total liabilities and stockholders’ equity	$	15,275,488	$	18,832,013	$	359,280	$	(22,873,029	)	$	11,593,752

(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 3, 2017 (unaudited)
	Rite Aid Corporation (Parent Company Only)			Subsidiary Guarantors			Non- Guarantor Subsidiaries			Eliminations			Consolidated
	(in thousands)
Revenues	$	—		$	7,760,058		$	39,450		$	(18,055	)(a)	$	7,781,453
Costs and expenses:
Cost of revenues	—			6,003,041			37,902			(18,524		)(a)	6,022,419
Selling, general and administrative expenses	—			1,757,620			3,201			469		(a)	1,761,290
Lease termination and impairment charges	—			4,086			—			—			4,086
Interest expense	105,384			4,515			38			—			109,937
Gain on sale of assets, net	—			(5,721		)	—			—			(5,721		)
Equity in earnings of subsidiaries, net of tax	(30,035		)	1,312			—			28,723		(b)	—
	75,349			7,764,853			41,141			10,668			7,892,011
Loss before income taxes	(75,349		)	(4,795		)	(1,691		)	(28,723		)	(110,558		)
Income tax benefit	—			(34,830		)	(379		)	—			(35,209		)
Net (loss) income	$	(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.

	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 charges	—			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	)(b)	$	(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 consolidating statement of cash flows

	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	$	(71,957	)	$	164,196		$	495	$	—		$	92,734
Investing activities:
Payments for property, plant and equipment	—			(60,738		)	—		—			(60,738		)
Intangible assets acquired	—			(8,234		)	—		—			(8,234		)
Intercompany activity	—			(161,810		)	—		161,810			—
Proceeds from dispositions of assets and investments	—			8,639								8,639
Proceeds from insured loss	—			2,137			—		—			2,137
Net cash (used in) provided by investing activities	—			(220,006		)	—		161,810			(58,196		)
Financing activities:
Net payments on revolver	(90,000		)	—			—		—			(90,000		)
Principal payments on long-term debt	—			(4,267		)	—		—			(4,267		)
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			24,354			—		(161,810		)	(65,499		)
(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

	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	)	$	222,490		$	4,967	$	—		$	160,000
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
Payments for taxes related to net share settlement of equity awards	—			(56		)	—		—			(56		)
Intercompany activity	85,086			—			—		(85,086		)	—
Net cash provided by (used in) financing activities	67,457			(2,632		)	—		(85,086		)	(20,261		)
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