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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended March 3, 2012, February 26, 2011 and February 27, 2010
(In thousands, except per share amounts)
3. 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 and total losses as
of March 3, 2012 and February 26, 2011
Quoted Prices in Significant Fair Values
Active Markets Other Significant as of Total Charges
for Identical Observable Unobservable Impairment March 3,
Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Date 2012
Long-lived assets held and
used ................. $— $23,254 $36,485 $59,739 $(50,718)
Long-lived assets held for sale — 5,407 — 5,407 (1,280)
Total .................. $— $28,661 $36,485 $65,146 $(51,998)
Quoted Prices in Significant Fair Values
Active Markets Other Significant as of Total Charges
for Identical Observable Unobservable Impairment February 26,
Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Date 2011
Long-lived assets held and
used ................. $— $21,822 $43,129 $64,951 $(114,330)
Long-lived assets held for sale — 2,479 — 2,479 (791)
Total .................. $— $24,301 $43,129 $67,430 $(115,121)
Facility and Equipment Lease Exit Charges
Charges to close a store, which principally consist of continuing lease obligations, 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 the 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 or favorable lease terminations. The
Company evaluates these assumptions each quarter and adjusts the liability accordingly.
In fiscal 2012, 2011 and 2010, the Company recorded facility and equipment lease exit charges of
$48,055, $95,772 and $132,542. These charges related to changes in future assumptions, interest
accretion and provisions for 23 stores in fiscal 2012, 52 stores and one distribution center in fiscal 2011,
and 108 stores and one distribution center in fiscal 2010.
As part of its ongoing business activities, the Company assesses stores and distribution centers for
potential closure. Decisions to close stores or distribution centers in future periods would result in
charges for lease exit costs and liquidation of inventory, as well as impairment of assets at these
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