Rite Aid 2011 Annual Report Download - page 37

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Contractual Obligations and Commitments
The following table details the maturities of our indebtedness and lease financing obligations as of
February 26, 2011, 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) ............. $ 502,274 $1,102,488 $3,182,066 $ 4,458,008 $ 9,244,836
Capital lease obligations(2) ....... 29,585 43,235 42,003 78,769 193,592
Operating leases(3) ............ 1,003,775 1,890,833 1,676,524 4,897,615 9,468,747
Open purchase orders ........... 403,672 — — — 403,672
Redeemable preferred stock(4) ....———21,300 21,300
Other, primarily self insurance and
retirement plan obligations(5) . . . 125,147 159,144 50,094 117,507 451,892
Minimum purchase commitments(6) 145,627 293,080 262,255 587,207 1,288,169
Total contractual cash obligations . $2,210,080 $3,488,780 $5,212,942 $10,160,406 $21,072,208
Commitments
Lease guarantees(7) ............ $ 27,967 $ 53,384 $ 51,577 $ 76,123 $ 209,051
Outstanding letters of credit ...... 142,686 — — — 142,686
Total commitments ........... $2,380,733 $3,542,164 $5,264,519 $10,236,529 $21,423,945
(1) Includes principal and interest payments for all outstanding debt instruments. Interest was
calculated on variable rate instruments using rates as of February 26, 2011.
(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 127 former stores related to certain business
dispositions. The respective purchasers assume the obligations and are, therefore, primarily liable
for these obligations.
Obligations for income tax uncertainties pursuant to ASC 740, ‘‘Income Taxes’’ of approximately
$109.0 million are not included in the table above as we are uncertain as to if or when such amounts
may be settled.
Net Cash Provided By (Used In) Operating, Investing and Financing Activities
Cash flow provided by operating activities was $395.8 million in fiscal 2011. Cash flow was
positively impacted by a reduction in inventory and an increase in accounts payable due to the timing
of purchases. Additionally, the reductions in accounts receivable are no longer offset by repayments to
the receivables securitization facility which was eliminated in the third quarter of fiscal 2010.
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