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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
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 (Continued)
assessing the impact of the adoption of ASU 2014-09 on its financial position, results of operations and
cash flows.
In January 2015, the FASB issued ASU No. 2015-01, Income Statement—Extraordinary and Unusual
Items (Subtopic 225-20). This ASU eliminates the concept of extraordinary items in Accounting
Standards Codification Subtopic 225-20, Income Statement—Extraordinary and Unusual Items. The
standard eliminates and no longer requires that an entity recognize an unusual and infrequent event
separately in the income statement as an extraordinary item, net of tax. This ASU is effective for fiscal
years beginning after December 15, 2015, and for interim periods within those fiscal years. The
Company does not expect the impact of the adoption of ASU 2015-01 to have a material impact on its
financial position, results of operations and cash flows.
In February 2015, the FASB issued ASU No. 2015-02, Consolidation—Amendments to the
Consolidation Analysis (Topic 810). This ASU requires reporting entities to reevaluate whether they
should consolidate certain legal entities under the revised consolidation model. This standard modifies
the evaluation of whether limited partnerships and similar legal entities are variable interest entities
(VIEs), eliminates the presumption that a general partner should consolidate a limited partnership, and
affects the consolidation analysis of reporting entities that are involved with VIEs, especially those that
have fee arrangements and related party relationships. This ASU is effective for fiscal years beginning
after December 15, 2015, and for interim periods within those fiscal years. The Company is in the
process of assessing the impact of the adoption of ASU 2015-02 on its financial position, results of
operations and cash flows.
2. Acquisitions
On April 1, 2014, the Company acquired Boston-based Health Dialog Services Corporation, which
is engaged in providing health coaching, shared decision making and healthcare analytics from Bupa, a
Londonbased international healthcare services group. Health Dialog operates as a 100 percent owned
subsidiary of the Company.
On April 10, 2014, the Company acquired Houston-based RediClinic, which is engaged in the
operation of retail clinics in the greater Houston and San Antonio areas. RediClinic operates as a
100 percent owned subsidiary of the Company. As part of the acquisition of RediClinic, the Company
acquired an immaterial equity investment in RediClinic Austin, LLC, which operates as a joint venture
in the greater Austin area.
The Company paid a combined amount of $69,793, net of cash acquired of $19,945, related to the
acquisitions of Health Dialog and RediClinic (collectively ‘‘acquisitions’’). The purchase accounting for
these acquisitions resulted in goodwill of $76,124, relating to expected future synergies and operating
efficiencies, with the remaining amount allocated to tangible assets, less liabilities assumed. Such
amounts are not significant.
Operating results of the acquisitions have been included in the Consolidated Statements of
Operations from their respective acquisition dates forward in the Company’s sole retail drug segment.
Pro forma information for the acquisitions is not presented as their results are immaterial to the
Company’s consolidated financial statements.
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