Rite Aid 2010 Annual Report Download - page 37

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Financing fees related to the Second Lien Facility for fiscal 2010 were $24.9 million and are
recorded as a component of selling, general, and administrative expenses. At February 28, 2009, our
interest in the third party pharmaceutical receivables is as follows (in thousands):
February 28,
2009
Third party pharmaceutical receivables ......................... $955,827
Allowance for uncollectible accounts .......................... (31,421)
Net third party receivables .................................. 924,406
First lien facility ......................................... (330,000)
Second lien facility (net of discount of $6,621) ................... (218,379)
Net retained interest ...................................... $376,027
As of February 27, 2010, we had no material off balance sheet arrangements, other than operating
leases included in the table below.
Contractual Obligations and Commitments
The following table details the maturities of our indebtedness and lease financing obligations as of
February 27, 2010, as well as other contractual cash obligations and commitments.
Payment due by period
Less Than
1 Year 1 to 3 Years 3 to 5 Years After 5 Years Total
(Dollars in thousands)
Contractual Cash Obligations
Long term debt(1) ............. $ 512,384 $1,075,843 $2,477,651 $ 5,478,073 $ 9,543,951
Capital lease obligations(2) ....... 31,652 44,820 44,250 102,189 222,911
Operating leases(3) ............ 1,007,159 1,891,244 1,688,143 5,417,157 10,003,703
Open purchase orders ........... 396,923 — — — 396,923
Redeemable preferred stock(4) ....———21,300 21,300
Other, primarily self insurance and
retirement plan obligations(5) . . . 110,175 127,394 30,635 75,118 343,322
Minimum purchase commitments(6) 146,632 291,026 295,316 702,443 1,435,417
Total contractual cash obligations . $2,204,925 $3,430,327 $4,535,995 $11,796,280 $21,967,527
Commitments
Lease guarantees(7) ............ $ 28,425 $ 54,424 $ 52,859 $ 101,591 $ 237,299
Outstanding letters of credit ...... 159,040 — — — 159,040
Total commitments ........... 2,392,390 3,484,751 4,588,854 11,897,871 22,363,866
(1) Includes principal and interest payments for all outstanding debt instruments. Interest was
calculated on variable rate instruments using rates as of February 27, 2010.
(2) Represents the minimum lease payments on non-cancelable leases, including interest, but net of
sublease income.
(3) Represents the minimum lease payments on non-cancelable leases.
(4) Represents value of redeemable preferred stock at its redemption date.
(5) Includes the undiscounted payments for self-insured medical coverage, actuarially determined
undiscounted payments for self-insured workers’ compensation and general liability, and actuarially
determined obligations for defined benefit pension and nonqualified executive retirement plans.
(6) Represents commitments to purchase products from certain vendors.
(7) Represents lease guarantee obligations for 134 former stores related to certain business
dispositions. The respective purchasers assume the obligations and are, therefore, primarily liable
for these obligations.
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