Rite Aid 2010 Annual Report Download - page 75

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)
4. Lease Termination and Impairment Charges (Continued)
The table below sets forth by level within the fair value hierarchy the long-lived assets as of the
impairment measurement date for which an impairment assessment was performed.
Quoted Prices in Significant Fair Values
Active Markets Other Significant as of Total Charges
for Identical Observable Unobservable Impairment February 27,
Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Date 2010
Long-lived assets held and used .... $— $20,274 $4,262 $24,536 $(64,469)
Long-lived assets held for sale ..... — 14,927 — 14,927 (11,006)
Total ....................... $— $35,201 $4,262 $39,463 $(75,475)
5. Discontinued Operations
During the fourth quarter of fiscal 2008, the Company entered into agreements to sell the
prescription files of 28 of its stores in the Las Vegas, Nevada area. The Company owned four of these
stores and the remaining stores were leased. The Company assigned the lease rights of 17 of those
stores to other entities and closed the remaining leased stores. The Company has sold three of the
owned stores and plans to sell the remaining one owned store. The sale and transfer of the prescription
files has been completed and the inventory at the stores has been liquidated.
The Company has presented the operating results of and the gain on the sale of Las Vegas as a
discontinued operation in the statement of operations for fiscal 2009 and 2008. The following amounts
have been segregated from continuing operations and included in discontinued operations:
Year Ended
February 28, March 1,
2009 2008
(52 Weeks) (52 Weeks)
(Dollars in thousands)
Revenues ...................................... $ 267 $90,815
Costs and expenses:
Cost of goods sold ............................. 1,652 70,171
Selling, general and administrative expenses ........... 1,936 33,039
Loss (gain) on sale of assets ...................... 48 (8,100)
Total costs and expenses ........................... 3,636 95,110
Loss from discontinued operations before income taxes .... (3,369) (4,295)
Income tax benefit ............................... — (1,505)
Net loss from discontinued operations ............... $(3,369) $(2,790)
The assets and liabilities of the divested stores for the year ended February 28, 2009 are not
significant and have not been segregated in the consolidated balance sheets.
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