Rite Aid 2013 Annual Report Download - page 40

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the senior secured credit facility. These guarantees are shared, on a senior basis, with debt outstanding
under the senior secured credit facility. The indenture that governs the 8.00% notes contains covenant
provisions that, among other things, allow the holders of the notes to participate along with the term
loan holders in the mandatory prepayments resulting from the proceeds of certain asset dispositions (at
the option of the noteholder) and include limitations on our ability to pay dividends, make investments
or other restricted payments, incur debt, grant liens, sell assets and enter into sale-leaseback
transactions.
In July 2010, we repurchased $93.8 million of our $158.0 million outstanding 8.5% convertible
notes. The remaining 8.5% convertible notes require us to maintain a listing on the NYSE or certain
other exchanges. In the event of a NYSE delisting, holders of these notes could require us to
repurchase them, which we have the ability to do under the terms of our senior secured credit facility.
We are currently in compliance with all NYSE listing rules.
As of March 2, 2013, we had no material off balance sheet arrangements, other than operating
leases included in the table below.
Contractual Obligations and Commitments
The following table details the maturities of our indebtedness and lease financing obligations as of
March 2, 2013, as well as other contractual cash obligations and commitments.
Payment due by period
Less Than
1 Year 1 to 3 Years 3 to 5 Years After 5 Years Total
(Dollars in thousands)
Contractual Cash Obligations
Long term debt(1) .............. $ 381,910 $1,484,081 $1,978,876 $4,772,642 $ 8,617,509
Capital lease obligations(2) ........ 32,992 43,002 33,249 45,949 155,192
Operating leases(3) ............. 997,548 1,864,407 1,589,800 3,820,698 8,272,453
Open purchase orders ........... 406,642 — — — 406,642
Redeemable preferred stock(4) .....———21,300 21,300
Other, primarily self insurance and
retirement plan obligations(5) .... 105,907 126,173 33,711 72,784 338,575
Minimum purchase commitments(6) . 159,679 295,333 259,746 258,043 972,801
Total contractual cash obligations . $2,084,678 $3,812,996 $3,895,382 $8,991,416 $18,784,472
Commitments
Lease guarantees(7) ............. $ 26,703 $ 51,641 $ 42,181 $ 33,806 $ 154,331
Outstanding letters of credit ....... 99,695 15,275 — — 114,970
Total commitments ............ $2,211,076 $3,879,912 $3,937,563 $9,025,222 $19,053,773
(1) Includes principal and interest payments for all outstanding debt instruments. Interest was
calculated on variable rate instruments using rates as of March 2, 2013.
(2) Represents the minimum lease payments on non-cancelable leases, including interest, but net of
sublease income.
(3) Represents the minimum lease payments on non-cancelable leases, including interest, but net of
sublease income.
(4) Represents value of redeemable preferred stock at its redemption date.
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