Rite Aid 2014 Annual Report Download - page 20

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We own our corporate headquarters, which is located in a 205,000 square foot building at
30 Hunter Lane, Camp Hill, Pennsylvania 17011. We lease 366,400 square feet of space in various
buildings near Harrisburg, Pennsylvania for document warehousing use and additional administrative
personnel. We own additional buildings near Harrisburg, Pennsylvania which total 105,800 square feet
and house our model store and additional administrative personnel.
We operate the following distribution centers and satellite distribution locations, which we own or
lease as indicated:
Approximate
Owned or Square
Location Leased Footage
Poca, West Virginia ............................... Owned 255,000
Dunbar, West Virginia(1) ........................... Leased 110,000
Perryman, Maryland ............................... Owned 885,000
Perryman, Maryland(1) ............................ Leased 262,000
Tuscaloosa, Alabama .............................. Owned 230,000
Cottondale, Alabama(1) ............................ Leased 224,000
Pontiac, Michigan ................................ Owned 325,000
Woodland, California .............................. Owned 513,000
Woodland, California(1) ............................ Leased 200,000
Wilsonville, Oregon ............................... Leased 547,000
Lancaster, California .............................. Owned 914,000
Charlotte, North Carolina .......................... Owned 585,500
Charlotte, North Carolina(1) ........................ Leased 291,000
Dayville, Connecticut .............................. Owned 460,000
Liverpool, New York .............................. Owned 828,000
Philadelphia, Pennsylvania .......................... Owned 245,000
Philadelphia, Pennsylvania(1) ........................ Leased 415,000
(1) Satellite distribution locations.
The original terms of the leases for our distribution centers and satellite distribution locations
range from 5 to 22 years. In addition to minimum rental payments, certain distribution centers require
tax reimbursement, maintenance and insurance. Most leases contain renewal options, some of which
involve rent increases. Although from time to time, we may be near capacity at some of our
distribution facilities, particularly at our older facilities, we believe that the capacity of our facilities is
adequate.
We also own a 55,800 square foot ice cream manufacturing facility and lease a 32,000 square foot
storage facility located in El Monte, California.
On a regular basis and as part of our normal business, we evaluate store performance and may
reduce in size, close or relocate a store if the store is redundant, underperforming or otherwise deemed
unsuitable. We also evaluate strategic dispositions and acquisitions of facilities and prescription files.
When we reduce in size, close or relocate a store or close distribution center facilities, we often
continue to have leasing obligations or own the property. We attempt to sublease this space. As of
March 1, 2014, we had 7,383,081 square feet of excess space, 5,101,190 square feet of which was
subleased.
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