Rite Aid 2016 Annual Report Download - page 147

RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014
(In thousands, except per share amounts)
22. Supplementary Cash Flow Data
Year Ended
February 27, February 28, March 1,
2016 2015 2014
Cash paid for interest (net of capitalized amounts of $196, $145
and $197) ...................................... $ 403,727 $ 384,329 $ 414,692
Cash payments for income taxes, net ..................... $ 4,856 $ 6,665 $ 3,191
Equipment financed under capital leases .................. $ 9,614 $ 6,157 $ 18,065
Equipment received for noncash consideration ............. $ 3,011 $ 1,600 $ 2,825
Preferred stock dividends paid in additional shares .......... $ — $ — $ 8,318
Accrued capital expenditures .......................... $ 69,417 $ 87,916 $ 72,841
Gross borrowings from revolver ........................ $4,729,000 $6,078,000 $2,668,000
Gross repayments to revolver .......................... $4,354,000 $4,753,000 $2,933,000
23. Related Party Transactions
There were receivables from related parties of $48 and $15 at February 27, 2016 and February 28,
2015, respectively.
As contemplated by the pending Merger with WBA, on December 31, 2015, the Board of
Directors of the Company approved the adoption of a retention and severance program upon the
recommendation of the Compensation Committee of the Board (the ‘‘Committee’’), which was advised
by the Committee’s independent compensation consultant, to enhance employee retention and
corporate performance through the closing of the Merger, and authorized the Company to enter into
individual retention award agreements with certain of its executive officers. The individual retention
award agreements provide for the lump-sum payment of the retention award on the one hundred
twentieth day following the closing of the Merger (the ‘‘retention date’’), subject to continued
employment through such retention date or upon the earlier termination of the recipient’s employment
by the Company without ‘‘cause’’ or by the recipient for ‘‘good reason’’ (as such terms are defined in
the Company’s 2014 Omnibus Equity Plan) (each referred to as a ‘‘qualifying termination’’). The
Company executed retention award agreements on December 31, 2015 with certain Company executive
officers, which provided for the grant of retention awards under the terms described above and, for tax
planning purposes, provide for the accelerated payment of the executive’s fiscal year 2016 bonus in
2015, the accelerated lapse of restrictions on certain time-based restricted stock awards in 2015 and, to
the extent necessary for one executive officer, the accelerated payment of the retention award in 2015,
in each case subject to repayment requirements on the part of the executive if the executive would not
have otherwise become entitled to such payments. During fiscal 2016, the Company made advance
payments to certain executives of $500 for retention bonuses and $1,778 of fiscal 2016 performance
bonuses for tax planning purposes.
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