Rite Aid 2016 Annual Report Download - page 149

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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)
24. Guarantor and Non-Guarantor Condensed Consolidating Financial Information
Rite Aid Corporation conducts the majority of its business through its subsidiaries. With the
exception of EIC, substantially all of Rite Aid Corporation’s 100 percent owned subsidiaries guarantee
the obligations under the Amended and Restated Senior Secured Credit Facility, second priority
secured term loan facilities, secured guaranteed notes and unsecured guaranteed notes (the ‘‘Subsidiary
Guarantors’’). Additionally, prior to the Acquisition, the subsidiaries, including joint ventures, that did
not guarantee the Amended and Restated Senior Secured Credit Facility, second priority secured term
loan facilities, secured guaranteed notes and unsecured guaranteed notes, were minor. Accordingly,
condensed consolidating financial information for the Company and subsidiaries is not presented for
those periods. Condensed consolidating financial information for the Company, its Subsidiary
Guarantors and non-guarantor subsidiaries, is presented for periods subsequent to the Acquisition.
For the purposes of preparing the information below, Rite Aid Corporation uses the equity
method to account for its investment in subsidiaries. The equity method has been used by Subsidiary
Guarantors with respect to investments in the non-guarantor subsidiaries. The subsidiary guarantees
related to the Company’s Amended and Restated Senior Secured Credit Facility, second priority
secured term loan facilities and secured guaranteed notes and, on an unsecured basis, the unsecured
guaranteed notes, are full and unconditional and joint and several. Presented below is condensed
consolidating financial information for Rite Aid Corporation, the Subsidiary Guarantors, and the
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