Rite Aid 2012 Annual Report Download - page 82

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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)
locations. The following table reflects the closed store and distribution center charges that relate to new
closures, changes in assumptions and interest accretion:
Year Ended
March 3, February 26, February 27,
2012 2011 2010
(53 Weeks) (52 Weeks) (52 Weeks)
Balance—beginning of year ................. $405,350 $ 412,654 $ 381,411
Provision for present value of noncancellable
lease payments of closed stores ........... 11,832 51,369 80,331
Changes in assumptions about future sublease
income, terminations and change in interest
rates .............................. 11,305 19,585 31,014
Interest accretion ...................... 26,084 26,234 26,693
Cash payments, net of sublease income ...... (86,707) (104,492) (106,795)
Balance—end of year ..................... $367,864 $ 405,350 $ 412,654
The Company’s revenues and income (loss) before income taxes for fiscal 2012, 2011, and 2010
included results from stores that have been closed or are approved for closure as of March 3, 2012.
The revenue, operating expenses, and income (loss) before income taxes of these stores for the periods
are presented as follows:
Year Ended
March 3, February 26, February 27,
2012 2011 2010
Revenues .............................. $179,064 $352,260 $640,014
Operating expenses ....................... 198,214 393,465 707,699
Gain from sale of assets ................... (11,969) (19,407) (32,967)
Other expenses .......................... (7,220) 4,232 9,832
Income (loss) before income taxes ............ 39 (26,030) (44,550)
Included in these stores’ income (loss) before
income taxes are:
Depreciation and amortization ............... 2,183 5,336 11,312
Inventory liquidation charges ................ 1,112 4,897 5,236
The above results are not necessarily indicative of the impact that these closures will have on
revenues and operating results of the Company in the future, as the Company often transfers the
business of a closed store to another Company store, thereby retaining a portion of these revenues and
operating expenses.
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