Rite Aid 2011 Annual Report Download - page 74

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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended February 26, 2011, February 27, 2010 and February 28, 2009
(In thousands, except per share amounts)
3. Lease Termination and Impairment Charges
Lease termination and impairment charges consisted of amounts and number of locations as
follows:
Year Ended
February 26, February 27, February 28,
2011 2010 2009
(52 Weeks) (52 Weeks) (52 Weeks)
Impairment charges .................... $115,121 $ 75,475 $157,334
Facility and equipment lease exit charges .... 95,772 132,542 136,409
$210,893 $208,017 $293,743
Impairment charges
Number of Stores ..................... 864 670 815
Number of Distribution Centers ........... 1 1 —
865 671 815
Lease exit charges
Number of Stores ..................... 52 108 162
Number of Distribution Centers ........... 1 1 —
53 109 162
Impairment Charges
These amounts included the write-down of long-lived assets at stores that were assessed for
impairment because of management’s intention to relocate or close the store, or because of changes in
circumstances that indicated the carrying value of an asset may not be recoverable.
Facility and Equipment Lease Exit Charges
Charges to close a store, which principally consist of lease termination costs, are recorded at the
time the store is closed and all inventory is liquidated, pursuant to the guidance set forth in ASC 420,
‘‘Exit or Disposal Cost Obligations.’’ The Company calculates its liability for closed stores on a
store-by-store basis. The calculation includes the discounted effect of future minimum lease payments
and related ancillary costs, from the date of closure to the end of the remaining lease term, net of
estimated cost recoveries that may be achieved through subletting properties or through favorable lease
terminations. The Company evaluates these assumptions each quarter and adjusts the liability
accordingly.
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