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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended March 1, 2014, March 2, 2013 and March 3, 2012
(In thousands, except per share amounts)
1. Summary of Significant Accounting Policies
Description of Business
The Company is a Delaware corporation and through its 100 percent owned subsidiaries, operates
retail drugstores in the United States of America. It is one of the largest retail drugstore chains in the
United States, with 4,587 stores in operation as of March 1, 2014. The Company’s drugstores’ primary
business is pharmacy services. The Company also sells a full selection of health and beauty aids and
personal care products, seasonal merchandise and a large private brand product line.
The Company’s operations consist solely of the retail drug segment. Revenues are as follows:
Year Ended
March 1, March 2, March 3,
2014 2013 2012
(52 Weeks) (52 Weeks) (53 Weeks)
Pharmacy sales .................... $17,239,436 $17,083,811 $17,725,645
Front end sales .................... 8,168,922 8,200,022 8,293,643
Other revenue ..................... 118,055 108,430 101,934
$25,526,413 $25,392,263 $26,121,222
Sales of prescription drugs represented approximately 67.9%, 67.6% and 68.1% of the Company’s
total sales in fiscal years 2014, 2013 and 2012, respectively. The Company’s principal classes of products
in fiscal 2014 were the following:
Percentage
Product Class of Sales
Prescription drugs ......................................... 67.9%
Over-the-counter medications and personal care ................... 9.8%
Health and beauty aids ..................................... 5.1%
General merchandise and other ............................... 17.2%
Fiscal Year
The Company’s fiscal year ends on the Saturday closest to February 29 or March 1. The fiscal year
ended March 1, 2014 included 52 weeks. The fiscal year ended March 2, 2013 included 52 weeks and
the fiscal year ended March 3, 2012 included 53 weeks.
Principles of Consolidation
The consolidated financial statements include the accounts of the Company and all of its
100 percent owned subsidiaries. All significant intercompany accounts and transactions have been
eliminated in consolidation.
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