Rite Aid 2011 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 2011 Rite Aid annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 119

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119

RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended February 26, 2011, February 27, 2010 and February 28, 2009
(In thousands, except per share amounts)
1. Summary of Significant Accounting Policies
Description of Business
The Company is a Delaware corporation and through its wholly-owned subsidiaries, operates retail
drugstores in the United States of America. It is one of the largest retail drugstore chains in the United
States, with 4,714 stores in operation as of February 26, 2011. The Company’s drugstores’ primary
business is pharmacy services. The Company also sells a full selection of health and beauty aids and
personal care products, seasonal merchandise and a large private brand product line.
The Company’s operations consist solely of the retail drug segment. Revenues are as follows:
Year Ended
February 26, February 27, February 28,
2011 2010 2009
(52 Weeks) (52 Weeks) (52 Weeks)
Pharmacy sales .................... $17,036,027 $17,355,964 $17,604,284
Front end sales .................... 8,081,576 8,213,388 8,581,115
Other revenue ..................... 97,304 99,765 103,869
$25,214,907 $25,669,117 $26,289,268
Sales of prescription drugs represented approximately 67.8%, 67.9%, and 67.2% of the Company’s
total sales in fiscal years 2011, 2010 and 2009, respectively. The Company’s principal classes of products
in fiscal 2011 were the following:
Percentage
Product Class of Sales
Prescription drugs ......................................... 67.8%
Over-the-counter medications and personal care ................... 9.8%
Health and beauty aids ..................................... 5.2%
General merchandise and other ............................... 17.2%
Fiscal Year
The Company’s fiscal year ends on the Saturday closest to February 29 or March 1. The fiscal
years ended February 26, 2011, February 27, 2010 and February 28, 2009 included 52 weeks.
Principles of Consolidation
The consolidated financial statements include the accounts of the Company and all of its wholly
owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in
consolidation.
65