Rite Aid 2015 Annual Report Download - page 43

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notes, together with available cash, were used to repurchase and repay the 8.625% senior notes and the
9.375% senior notes, respectively. These notes are unsecured, unsubordinated obligations of Rite Aid
Corporation and rank equally in right of payment with all other unsubordinated indebtedness. Our
obligations under the notes are fully and unconditionally guaranteed, jointly and severally, on an
unsecured unsubordinated basis, by all of our subsidiaries that guarantee our obligations under our
senior secured credit facility, our second priority secured term loan facility and our outstanding 8.00%
senior secured notes due 2020, 7.5% senior secured notes due 2017, 10.25% senior secured notes due
2019 and 9.5% senior notes due 2017.
In May 2012, $296.3 million aggregate principal amount of the outstanding 9.375% notes were
tendered and repurchased by us. We redeemed the remaining 9.375% notes in June 2012 for
$108.7 million, which included the call premium and interest through the redemption date. The
refinancing resulted in an aggregate loss on debt retirement of $17.8 million.
Off-Balance Sheet Arrangements
As of February 28, 2015, we had no material off balance sheet arrangements, other than operating
leases as included in the table below.
Contractual Obligations and Commitments
The following table details the maturities of our indebtedness and lease financing obligations as of
February 28, 2015, 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) ........... $ 386,625 $ 628,630 $2,353,630 $4,171,193 $ 7,540,078
Capital lease obligations(2) ..... 37,592 32,826 20,611 27,507 118,536
Operating leases(3) ........... 1,017,273 1,885,243 1,499,835 3,395,003 7,797,354
Open purchase orders ......... 264,819 — — — 264,819
Other, primarily self insurance
and retirement plan
obligations(4) ............. 94,578 101,472 28,311 69,075 293,436
Minimum purchase
commitments(5) ........... 163,012 368,975 292,381 160,090 984,458
Total contractual cash
obligations .............. $1,963,899 $3,017,146 $4,194,768 $7,822,868 $16,998,681
Commitments
Lease guarantees(6) .......... $ 23,802 $ 39,085 $ 23,611 $ 7,272 $ 93,770
Outstanding letters of credit .... 61,736 9,348 — — 71,084
Total commitments ......... $2,049,437 $3,065,579 $4,218,379 $7,830,140 $17,163,535
(1) Includes principal and interest payments for all outstanding debt instruments. Interest was
calculated on variable rate instruments using rates as of February 28, 2015.
(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.
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