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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended March 3, 2012, February 26, 2011 and February 27, 2010
(In thousands, except per share amounts)
3. Lease Termination and Impairment Charges (Continued)
Included in the impairment charges noted above, the Company recorded charges of $5,863 in fiscal
2012, $2,433 in fiscal 2011 and $12,315 in fiscal 2010 for existing owned surplus property. Assets to be
disposed of are evaluated quarterly to determine if an additional impairment charge is required. Fair
value estimates are provided by independent brokers who operate in the local markets where the assets
are located.
The following table summarizes the impairment charges and number of locations, segregated by
closed facilities and active stores that have been recorded in fiscal 2012, 2011 and 2010:
Year Ended
March 3, 2012 February 26, 2011 February 27, 2010
Number Charge Number Charge Number Charge
Closed facilities:
Actual and approved store closings ..... 55 $ 2,283 51 $ 3,278 67 $ 5,479
Actual and approved relocations ....... 2 499 1 317 7 3,108
Distribution center closings ........... — — 1 94 1 5,689
Existing surplus properties ............ 12 5,863 17 2,433 23 12,315
Total impairment charges-closed facilities . . . 69 8,645 70 6,122 98 26,591
Active stores:
Additional current period charges for
stores previously impaired in prior
periods(1) ...................... 591 9,822 584 17,825 437 7,710
Charges for new and relocated stores that
did not meet their asset recoverability
test in the current period(2) ......... 19 18,926 44 36,015 32 17,260
Charges for the remaining stores that did
not meet their asset recoverability test
in the current period(3) ............ 53 14,605 167 55,159 104 23,914
Total impairment charges-active stores ..... 663 43,353 795 108,999 573 48,884
Total impairment charges-all locations ..... 732 $51,998 865 $115,121 671 $75,475
Total number of active stores ........... 4,667 4,714 4,780
Stores impaired in prior periods with no
current charge .................... 428 263 321
Stores with a current period charge ....... 663 795 573
Total cumulative active stores with
impairment charges ................. 1,091 1,058 894
(1) These charges are related to stores that were impaired for the first time in prior periods. Most
active stores, requiring an impairment charge, are fully impaired in the first period that they do
not meet their asset recoverability test. However, in each prior period presented, a minority of
stores were partially impaired since their fair value supported a reduced net book value.
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