Rite Aid 2013 Annual Report Download - page 82

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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)
impairment of assets at these locations. The following table reflects the closed store and distribution
center charges that relate to new closures, changes in assumptions and interest accretion:
Year Ended
March 2, March 3, February 26,
2013 2012 2011
(52 Weeks) (53 Weeks) (52 Weeks)
Balance—beginning of year ................ $367,864 $405,350 $ 412,654
Provision for present value of noncancellable
lease payments of closed stores .......... 14,440 11,832 51,369
Changes in assumptions about future sublease
income, terminations and change in interest
rates ............................. 9,023 11,305 19,585
Interest accretion ...................... 23,246 26,084 26,234
Cash payments, net of sublease income ...... (90,816) (86,707) (104,492)
Balance—end of year ..................... $323,757 $367,864 $ 405,350
The Company’s revenues and income (loss) before income taxes for fiscal 2013, 2012, and 2011
included results from stores that have been closed or are approved for closure as of March 2, 2013.
The revenue, operating expenses, and income (loss) before income taxes of these stores for the periods
are presented as follows:
Year Ended
March 2, March 3, February 26,
2013 2012 2011
Revenues .............................. $ 99,034 $308,835 $452,799
Operating expenses ...................... 112,300 339,784 503,969
Gain from sale of assets ................... (19,877) (15,212) (19,369)
Other expenses ......................... 812 (6,202) 7,027
Income (loss) before income taxes ............ 5,799 (9,535) (38,828)
Included in these stores’ income (loss) before
income taxes are:
Depreciation and amortization .............. 1,103 4,189 7,219
Inventory liquidation charges ............... 1,039 873 4,897
The above results are not necessarily indicative of the impact that these closures will have on revenues
and operating results of the Company in the future, as the Company often transfers the business of a
closed store to another Company store, thereby retaining a portion of these revenues and operating
expenses.
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