Rite Aid 2012 Annual Report Download - page 96

Download and view the complete annual report

Please find page 96 of the 2012 Rite Aid annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 126

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126

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)
10. Leases (Continued)
Following are the minimum lease payments for all properties under a lease agreement that will
have to be made in each of the years indicated based on non-cancelable leases in effect as of March 3,
2012:
Lease Financing Operating
Fiscal year Obligations Leases
2013 ...................................... $ 30,716 $1,002,062
2014 ...................................... 22,038 966,754
2015 ...................................... 21,522 913,521
2016 ...................................... 21,421 854,717
2017 ...................................... 19,476 784,330
Later years ................................. 59,908 4,304,798
Total minimum lease payments ................... 175,081 $8,826,182
Amount representing interest .................... (48,097)
Present value of minimum lease payments ........... $126,984
11. Redeemable Preferred Stock
In March 1999 and February 1999, Rite Aid Lease Management Company, a 100 percent owned
subsidiary of the Company, issued 63,000 and 150,000 shares of Cumulative Preferred Stock, Class A,
par value $100 per share, respectively. The Class A Cumulative Preferred Stock is mandatorily
redeemable on April 1, 2019 at a redemption price of $100 per share plus accumulated and unpaid
dividends. The Class A Cumulative Preferred Stock pays dividends quarterly at a rate of 7.0% per
annum of the par value of $100 per share when, as and if declared by the Board of Directors of Rite
Aid Lease Management Company in its sole discretion. The amount of dividends payable in respect of
the Class A Cumulative Preferred Stock may be adjusted under certain events. The outstanding shares
of the Class A Preferred Stock were recorded at their estimated fair value of $19,253 for the fiscal 2000
issuances, which equaled the sale price on the date of issuance. Because the fair value of the Class A
Preferred Stock was less than the mandatory redemption amount at issuance, periodic accretions to
expense using the interest method are made so that the carrying amount equals the redemption amount
on the mandatory redemption date. Accretion was $102 in fiscal 2012, 2011 and 2010. The amount of
this instrument is $20,583 and $20,481 and is recorded in Other Non-Current Liabilities as of March 3,
2012 and February 26, 2011, respectively.
12. Capital Stock
As of March 3, 2012, the authorized capital stock of the Company consists of 1,500,000 shares of
common stock and 20,000 shares of preferred stock, each having a par value of $1.00 per share.
Preferred stock is issued in series, subject to terms established by the Board of Directors.
The Company has outstanding Series G and Series H preferred stock. The Series G preferred
stock has a liquidation preference of $100 per share and pays quarterly dividends at 7% of liquidation
preference. In the fourth quarter of 2009, at the election of the holder, substantially all of the Series G
96