Rite Aid 2015 Annual Report Download - page 70

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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the Years Ended February 28, 2015, March 1, 2014 and March 2, 2013
(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 4,570 stores in operation as of February 28, 2015. 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
February 28, March 1, March 2,
2015 2014 2013
(52 Weeks) (52 Weeks) (52 Weeks)
Pharmacy sales .................... $18,114,768 $17,239,436 $17,083,811
Front end sales .................... 8,232,256 8,168,922 8,200,022
Other revenue ..................... 181,353 118,055 108,430
$26,528,377 $25,526,413 $25,392,263
Sales of prescription drugs represented approximately 68.8%, 67.9% and 67.6% of the Company’s
total sales in fiscal years 2015, 2014 and 2013, respectively. The Company’s principal classes of products
in fiscal 2015 were the following:
Percentage of
Product Class Sales
Prescription drugs ........................................ 68.8%
Over-the-counter medications and personal care .................. 9.6%
Health and beauty aids .................................... 4.9%
General merchandise and other .............................. 16.7%
Fiscal Year
The Company’s fiscal year ends on the Saturday closest to February 29 or March 1. The fiscal
years ended February 28, 2015, March 1, 2014 and March 2, 2013 included 52 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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