Rite Aid 2013 Annual Report Download - page 79

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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended March 2, 2013, March 3, 2012 and February 26, 2011
(In thousands, except per share amounts)
3. Lease Termination and Impairment Charges (Continued)
The following table summarizes the impairment charges and number of locations, segregated by
closed facilities and active stores that have been recorded in fiscal 2013, 2012 and 2011:
Year Ended
March 2, 2013 March 3, 2012 February 26, 2011
Number Charge Number Charge Number Charge
Closed facilities:
Actual and approved store closings ..... 29 $ 325 55 $ 2,283 51 $ 3,278
Actual and approved relocations ....... — — 2 499 1 317
Distribution center closings ........... — — — — 1 94
Existing surplus properties ............ 5 594 12 5,863 17 2,433
Total impairment charges-closed facilities . . . 34 919 69 8,645 70 6,122
Active stores:
Additional current period charges for
stores previously impaired in prior
periods(1) ...................... 469 5,835 591 9,822 584 17,825
Charges for new and relocated stores that
did not meet their asset recoverability
test in the current period(2) ......... 14 9,190 19 18,926 44 36,015
Charges for the remaining stores that did
not meet their asset recoverability test
in the current period(3) ............ 47 8,948 53 14,605 167 55,159
Total impairment charges-active stores ..... 530 23,973 663 43,353 795 108,999
Total impairment charges-all locations ..... 564 $24,892 732 $51,998 865 $115,121
Total number of active stores ........... 4,623 4,667 4,714
Stores impaired in prior periods with no
current charge .................... 588 428 263
Stores with a current period charge ....... 530 663 795
Total cumulative active stores with
impairment charges ................. 1,118 1,091 1,058
(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.
Accordingly, these stores may be further impaired in the current and future periods as a result of
changes in their actual or projected cash flows, or changes to their fair value estimates. Also, the
Company makes ongoing capital additions to certain stores to improve their operating results or to
meet geographical competition, which if later are deemed to be unrecoverable, will be impaired in
future periods. Of this total, 464, 583 and 577 stores for fiscal years 2013, 2012 and 2011
respectively have been fully impaired.
(2) These charges are related to new stores (open at least 3 years) and relocated stores (relocated in
the last 2 years) that did not meet their recoverability test during the current period. These stores
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