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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended February 27, 2010, February 28, 2009 and March 1, 2008
(In thousands, except per share amounts)
19. Related Party Transactions (Continued)
provided certain information technology, network and support services to the Company. The agreement
expired in September 2008. The Company recorded an expense of $894 for services provided under this
agreement for the year ended February 28, 2009.
During fiscal 2010, 2009 and 2008, the Company paid Leonard Green & Partners, L.P., fees of
$222, $227 and $276, for financial advisory services, respectively. These amounts include expense
reimbursements of $72, $90 and $89 for the fiscal years 2010, 2009 and 2008, respectively. Jonathan D.
Sokoloff, director, is an equity owner of Leonard Green & Partners, L.P. The Company has entered
into a month-to-month agreement with Leonard Green & Partners, L.P., as amended whereby the
Company has agreed to pay Leonard Green & Partners, L.P., a monthly fee of $12.5, paid in arrears,
for its consulting services. The consulting agreement also provides for the reimbursement of
out-of-pocket expenses incurred by Leonard Green & Partners, L.P.
Prior to being employed by the Company, the Company paid Mr. John Standley a fee of $32.5 per
week for consulting services rendered in July, August and September 2008. The consulting agreement
was on a week-to-week basis, which also provided for the reimbursement of out-of-pocket expenses
incurred by Mr. Standley. During fiscal year 2009 and prior to his employment as President and Chief
Operating Officer, Rite Aid paid Mr. Standley a consulting fee of $294.
20. Interim Financial Results (Unaudited)
Fiscal Year 2010
First Second Third Fourth
Quarter Quarter Quarter Quarter Year
Revenues ..................... $6,531,178 $6,321,870 $6,352,283 $6,463,786 $25,669,117
Cost of goods sold .............. 4,757,112 4,633,595 4,665,871 4,788,449 18,845,027
Selling, general and administrative
expenses ................... 1,710,672 1,645,913 1,605,213 1,641,574 6,603,372
Lease termination and impairment
charges .................... 66,986 28,752 35,072 77,207 208,017
Interest expense ................ 109,478 128,828 135,770 141,687 515,763
Loss on debt modifications and
retirements, net .............. — 993——993
(Gain) loss on sale of assets and
investments, net .............. (19,951) (4,188) (1,459) 1,461 (24,137)
6,624,297 6,433,893 6,440,467 6,650,378 26,149,035
Loss before income taxes ......... (93,119) (112,023) (88,184) (186,592) (479,918)
Income tax expense (benefit) ...... 5,327 3,989 (4,322) 21,764 26,758
Net loss ...................... $ (98,446) $ (116,012) $ (83,862) $ (208,356) $ (506,676)
Basic loss per share(1) ........... $ (0.11) $ (0.14) $ (0.10) $ (0.24) $ (0.59)
Diluted loss per share(1) ......... $ (0.11) $ (0.14) $ (0.10) $ (0.24) $ (0.59)
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