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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For The Fiscal Year Ended February 27, 2016
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For The Transition Period From To
Commission File Number 1-5742
RITE AID CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 23-1614034
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
30 Hunter Lane, Camp Hill, Pennsylvania 17011
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (717) 761-2633
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which registered
Common Stock, $1.00 par value New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well known seasoned issuer, as defined in Rule 405 of the Securities
Act. Yes No
Indicate by check mark if the registrant is not required to file reports pursuant to section 13 or section 15(d) of the
Exchange Act. Yes No
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if
any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405
of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit
and post such files). Yes No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained
herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated
filer. See definition of ‘‘Accelerated Filer’’ and ‘‘Large Accelerated Filer’’ in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer Accelerated Filer Non-Accelerated Filer Smaller reporting company
(Do not check if a
smaller reporting company)
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act). Yes No
The aggregate market value of the voting and non-voting common stock of the registrant held by non-affiliates of
the registrant based on the closing price at which such stock was sold on the New York Stock Exchange on August 29,
2015 was approximately $8,554,385,104. For purposes of this calculation, executive officers, directors and 5% shareholders
are deemed to be affiliates of the registrant.
As of April 8, 2016 the registrant had outstanding 1,048,406,901 shares of common stock, par value $1.00 per share.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the proxy statement for the registrant’s annual meeting of stockholders to be held on June 22, 2016 are
incorporated by reference into Part III.

Table of contents

  • Page 1
    ...(I.R.S. Employer Identification No.) 17011 (Zip Code) Registrant's telephone number, including area code: (717) 761-2633 Common Stock, $1.00 par value Securities registered pursuant to Section 12(g) of the Act: None New York Stock Exchange Indicate by check mark if the registrant is a well known...

  • Page 2
    ...of Equity Securities ...ITEM 6. Selected Financial Data ...ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations ...ITEM 7A. Quantitative and Qualitative Disclosures About Market Risk ...ITEM 8. Financial Statements and Supplementary Data ...ITEM 9. Changes in...

  • Page 3
    ... and Affordable Care Act as well as other healthcare reform; • risks related to compromises of our information or payment systems or unauthorized access to confidential or personal information of our associates or customers; • our ability to maintain our current pharmacy services business and...

  • Page 4
    ... future exchange or interest rates or credit ratings, changes in tax laws, regulations, rates and policies or competitive development; • the risk that we could experience deterioration in our current Star rating with the Centers of Medicare and Medicaid Services (''CMS''); • the nature, cost and...

  • Page 5
    ...and Health Dialog. Our Pharmacy Services Segment consists of EnvisionRx, a pharmacy benefit management (PBM) provider that we acquired in June 2015. Retail Pharmacy Segment-In our Rite Aid retail stores, we sell prescription drugs and a wide assortment of other merchandise, which we call ''front-end...

  • Page 6
    ... Protection and Affordable Care Act will continue to have a positive impact on our business as more Americans gain health insurance and prescription drug coverage. Additionally, rising U.S. healthcare costs and the shortage of primary care physicians are creating opportunities for pharmacists and...

  • Page 7
    ..., is to continue growing same stores sales. In order to drive our financial performance and sustainable sales growth, we will continue to invest capital into our store base through initiatives such as prescription file buys and our Wellness store remodel program as we continue building up our real...

  • Page 8
    ... compelling pharmacy offerings across retail, specialty and mail-order channels; deliver cost-effective solutions to employers and health plans; and drive growth. When combined with Rite Aid's retail platform, EnvisionRx's comprehensive suite of services allows Rite Aid to provide additional value...

  • Page 9
    ... customers can use one card and earn two kinds of points. Members continue to earn wellness+ points toward various benefits at Rite Aid including discounts of up to 20% off storewide, exclusive sale prices and 24/7 access to a pharmacist. When the enhanced program launched in May, +UP Rewards became...

  • Page 10
    ... store remodels and prescription file buys. We will continue to focus on controlling costs in fiscal 2017 so that we can maximize the benefits of our sales and customer service initiatives along with our capital investments. Products and Services Sales of prescription drugs for our Retail Pharmacy...

  • Page 11
    ... Our mobile app, which is available for download for both the Android and iPhone platforms, allows our customers to use their smartphones to manage their wellness + account, refill prescriptions, access the weekly circular to view sale items, order photo prints and locate a nearby Rite Aid store. We...

  • Page 12
    ... 2016, approximately 31.9% of our pharmacy sales were to customers covered by Medicare Part D. Through our new Pharmacy Services segment we provide innovative pharmaceutical solutions for our clients which are primarily employers, insurance companies, unions, government employee groups, health plans...

  • Page 13
    ... market intrusion and prescription file buys and new and remodeled store grand openings; and • Our vision to be the customer's first choice for health and wellness products, services and information. Under the umbrella of our ''With Us It's Personal'' positioning, we promote educational programs...

  • Page 14
    ... payment for health care services, including, without limitation: federal, state and local licensure and registration requirements concerning the operation of pharmacies and the practice of pharmacy; Medicare, Medicaid and other publicly financed health benefit plan regulations prohibiting kickbacks...

  • Page 15
    ... by the Medicare Part D program, which makes prescription drug coverage available to eligible Medicare beneficiaries through private insurers. This program regulates all aspects of the provision of Medicare drug coverage, including enrollment, formularies, pharmacy networks, marketing, and claims...

  • Page 16
    ... on our business. Our existing debt agreements limit our ability to take certain of these actions. Our failure to generate sufficient operating cash flow to pay our debts or refinance our indebtedness could have a material adverse effect on us. Borrowings under our senior secured credit facility are...

  • Page 17
    ...• pay dividends; • make redemptions and repurchases of capital stock; • make loans and investments; • prepay, redeem or repurchase debt; • engage in acquisitions, consolidations, asset dispositions, sale- leaseback transactions and affiliate transactions; • change our business; • amend...

  • Page 18
    ... disruption in our computer systems or a cyber security breach could adversely affect our operations. We rely extensively on our computer systems, including those used by EnvisionRx, RediClinic, and Health Dialog, to manage our ordering, pricing, point-of-sale, inventory replenishment and other...

  • Page 19
    ... our customers and associates, we could be subject to costly government enforcement actions or private litigation. Through our sales and marketing activities, we collect and store certain personal information that our customers provide to purchase products or services, enroll in promotional programs...

  • Page 20
    ... stores and internet pharmacies. Competition from discount stores has significantly increased during the past few years. Some of our competitors have or may merge with or acquire pharmaceutical services companies, pharmacy benefit managers, mail order facilities or enter into strategic partnership...

  • Page 21
    ... acquisition costs of generic pharmaceuticals with manufacturers. Additionally, it has resulted in us providing contractual financial performance guarantees to certain of our PBM clients with respect to minimum generic drug price discounts for our retail pharmacy network and mail order pharmacy...

  • Page 22
    ... applicability, including laws regulating matters of wage and hour laws, working conditions, health and safety and equal employment opportunity. Additionally, Congress passed the Patient Care Act in 2010, which is resulting in significant structural changes to the health insurance system. Although...

  • Page 23
    ... client loss and/or the failure to win new PBM business could impact our ability to secure new business. Our PBM business generates net revenues primarily by contracting with clients to provide prescription drugs and related health care services to plan members. PBM client contracts often have terms...

  • Page 24
    ... and our financial results. One of our subsidiaries, Envision Insurance Company (''EIC''), is an insurer domiciled in Ohio (with Ohio as its primary insurance regulator) and licensed in all 50 states, and is approved to function as a Medicare Part D Prescription Drug Plan (''PDP'') plan sponsor for...

  • Page 25
    .... Our customers are using computers, tablets, mobile phones and other electronic devices to shop in our stores and online, as well as to provide public reactions concerning each facet of our operation. If we fail to keep pace with dynamic customer expectations and new technology developments, our...

  • Page 26
    ... month ended prior to closing for which internal financial statements of Rite Aid are available. While we believe we will receive the requisite approvals, there can be no assurance that these and other conditions to closing will be satisfied at all or satisfied on the proposed terms and schedules...

  • Page 27
    ...the Merger Agreement may delay or prevent us from responding, or limit our ability to respond, effectively to competitive pressures, industry developments and future business opportunities that may arise during such period, even if our management believes they may be advisable; and • the costs and...

  • Page 28
    ... 22 37 190 139 104 4,561 Total ...Our stores have the following attributes at February 27, 2016: Attribute Number Percentage Freestanding ...Drive through pharmacy ...GNC stores within a Rite Aid store ... 2,829 2,462 2,338 62.0% 54.0% 51.3% We lease 4,308 of our operating drugstore facilities...

  • Page 29
    ... located in El Monte, California. As a result of our April 2014 acquisition of RediClinic, we lease approximately 19,600 square feet in 35 HEB grocery stores in Texas under a master lease agreement that contains various renewal options through 2024. As a result of our June 24, 2015 acquisition...

  • Page 30
    ... own approximately 53,000 square feet of space in North Canton, Ohio for our mail order and specialty drug facilities. On a regular basis and as part of our normal business, we evaluate store performance and may reduce in size, close or relocate a store if the store is redundant, underperforming or...

  • Page 31
    ... Rite Aid Corporation et al. pending in the United States District Court for the Southern District of New York, filed purportedly on behalf of current and former store managers working in the Company's stores at various locations around the country. The lawsuit alleges that the Company failed to pay...

  • Page 32
    ... United States Attorney's Office for the Eastern District of Michigan. The subpoena requests records regarding the relationship of Rite Aid's Rx Savings Program to the reporting of usual and customary charges to publicly funded health programs. In connection with the same investigation, the Company...

  • Page 33
    ... 21, 2013 by the USAO for the Eastern District of California and the Attorney General's Office of the State of California (the ''AG''). The CID requested records and responses to interrogatories regarding Rite Aid's Drug Utilization Review and prescription dispensing protocol and the dispensing of...

  • Page 34
    ... same period (assuming the investment of $100.00 in our common stock and such indexes on February 26, 2011 and reinvestment of dividends). For comparison of cumulative total return, we have elected to use the Russell 1000 Consumer Staples Index, consisting of 51 companies including the three largest...

  • Page 35
    STOCK PERFORMANCE GRAPH Comparison of 5 Year Cumulative Total Return Assumes Initial Investment of $100 on February 26, 2011 February 27, 2016 700.00 600.00 500.00 400.00 300.00 200.00 100.00 0.00 2/26/2011 3/3/2012 Rite Aid Corporation 3/2/2013 Russell 1000 Index 3/1/2014 2/28/2015 2/27/2016 ...

  • Page 36
    ... income (loss) per share ...$ Diluted income (loss) per share ...$ Year-End Financial Position: Working capital ...Property, plant and equipment, net Total assets(1) ...Total debt(1) ...Stockholders' equity (deficit) ...Other Data: Cash flows provided by (used in): Operating activities ...Investing...

  • Page 37
    .... We currently have two reportable business segments: Retail Pharmacy and Pharmacy Services. Retail Pharmacy Segment Our Retail Pharmacy segment sells brand and generic prescription drugs, as well as an assortment of front-end products including health and beauty aids, personal care products...

  • Page 38
    ... to revenue growth of 3.9% for fiscal 2015. Revenues for fiscal 2016 include revenues of $4,103.5 million, relating to our Pharmacy Services segment. Fiscal 2016 revenues for our Retail Pharmacy segment were positively impacted by an increase in same store sales and same store prescription count...

  • Page 39
    ...results combined with contributions from working capital management. Working capital primarily benefited from a reduction in store level pharmacy inventory. We used this operating cash flow to fund capital expenditures and to reduce borrowings following the acquisition of EnvisionRx on June 24, 2015...

  • Page 40
    Consolidated Results of Operations Revenue and Other Operating Data Year Ended February 27, February 28, March 1, 2016 2015 2014 (52 Weeks) (52 Weeks) (52 Weeks) (Dollars in thousands except per share amounts) Revenues(a) ...Revenue growth ...Net income ...Net income per diluted share ...Adjusted ...

  • Page 41
    ... 2016 (52 Weeks) Year Ended February 28, March 1, 2015 2014 (52 Weeks) (52 Weeks) (Dollars in thousands) Costs of revenues(a) ...Gross profit ...Gross margin ...Selling, general and administrative expenses ...Selling, general and administrative expenses as a percentage of revenues Lease termination...

  • Page 42
    ... in market prices, changes in the manner in which the store is being used or physical condition, changes in legal factors or business climate, an accumulation of losses significantly in excess of budget, a current period operating or cash flow loss combined with a history of operating or cash flow...

  • Page 43
    ... and number of locations, segregated by closed facilities and active stores that have been recorded in fiscal 2016, 2015 and 2014: February 27, 2016 Number Charge Year Ended February 28, 2015 Number Charge March 1, 2014 Number Charge (in thousands, except number of stores) Active stores: Stores...

  • Page 44
    .... Decisions to close or relocate stores or distribution centers in future periods would result in lease termination charges for lease exit costs and liquidation of inventory, as well as impairment of assets at these locations. In fiscal 2016, 2015 and 2014, we recorded lease termination charges of...

  • Page 45
    ... period of change. Net income for fiscal 2015 included income tax benefit of $1,841.3 million attributable to the reduction of the deferred tax valuation allowance. The reduction of the valuation allowance was the result of an accumulation of objective and verifiable positive evidence out weighing...

  • Page 46
    ... eliminations include intersegment revenues and corresponding cost of revenues that occur when Pharmacy Services segment customers use Retail Pharmacy segment stores to purchase covered products. When this occurs, both the Retail Pharmacy and Pharmacy Services segments record the revenue on a stand...

  • Page 47
    ...1, 2016 2015 2014 (52 Weeks) (52 Weeks) (52 Weeks) (Dollars in thousands) Revenues ...Revenue growth ...Same store sales growth ...Pharmacy sales growth ...Same store prescription count increase (decrease) Same store pharmacy sales growth ...Pharmacy sales as a % of total sales ...Third party sales...

  • Page 48
    ... increase in pharmacy and front end same store sales and incremental revenues from Health Dialog and RediClinic, which were acquired during April 2014. Pharmacy same store sales increased 5.8%. Pharmacy same store sales were positively impacted by an increase of 3.5% in same store prescription count...

  • Page 49
    ... mail-order and specialty pharmacy services through Orchard Pharmaceutical Services; access to the nation's largest cash pay infertility discount drug program via Design Rx; an innovative claims adjudication software platform in Laker Software; and a national Medicare Part D prescription drug plan...

  • Page 50
    ... Aid common stock on the date of the Acquisition. In addition, following the closing, we were obligated to pay the former owners of EnvisionRx their pro rata share of the settlement payment to be received by EnvisionRx from the Centers of Medicare and Medicaid Services (''CMS'') for the 2014 plan...

  • Page 51
    ... to finance the cash portion of our acquisition of EnvisionRx, and certain other exceptions) and from accumulating cash on hand with revolver borrowings in excess of $100.0 million over three consecutive business days. The Amended and Restated Senior Secured Credit Facility also states that if at...

  • Page 52
    ... term loan debt, unsecured debt and disqualified preferred stock shall mature or require scheduled payments of principal prior to 90 days after the latest of (a) the fifth anniversary of the effectiveness of the Amended and Restated Senior Secured Credit Facility and (b) the latest maturity date of...

  • Page 53
    ... unsecured debt under the second lien credit facilities and other indentures. Other 2016 Transactions On April 2, 2015, we issued $1.8 billion aggregate principal amount of our 6.125% Notes to finance the majority of the cash portion of our acquisition of EnvisionRx, which closed on June 24, 2015...

  • Page 54
    ...the $4.76 per share closing price on the Settlement Date. As of March 2, 2013, Rite Aid Lease Management Company, a 100 percent owned subsidiary, had 213,000 shares of its Cumulative Preferred Stock, Class A, par value $100 per share (''RALMCO Cumulative Preferred Stock''), outstanding. The carrying...

  • Page 55
    ... 3 to 5 Years After 5 Years (Dollars in thousands) Total Contractual Cash Obligations Long term debt(1) ...Capital lease obligations(2) ...Operating leases(3) ...Open purchase orders ...Other, primarily self insurance and retirement plan obligations(4) ...Minimum purchase commitments(5) ... $ 380...

  • Page 56
    ... in Wellness store remodels and prescription file buys. Proceeds from the sale of assets were lower as compared to fiscal 2014. Also reflected in investing activities are expenditures of $69.8 million, net of cash acquired, related to the acquisitions of Health Dialog and RediClinic. Cash used in...

  • Page 57
    ...February 28, 2015 (52 weeks) March 1, 2014 (52 weeks) New store construction, store relocation and store remodel projects ...Technology enhancements, improvements to distribution centers and other corporate requirements ...Purchase of prescription files from other retail pharmacies ...Total capital...

  • Page 58
    ..., income taxes and litigation. Additionally, we have added the revenue recognition and vendor allowances and purchase discounts critical accounting policies as a result of our June 24, 2015 Acquisition of EnvisionRx (the ''Acquisition'') and the related addition of our new Pharmacy Services Segment...

  • Page 59
    ... to, the overall economy, industry and market conditions, financial performance of the Company, changes in our share price, and forecasts of revenue, profit, working capital requirements, and cash flows. We consider each reporting unit's historical results and operating trends when determining these...

  • Page 60
    ... benefit levels. As wellness+ customers accumulate points, we defer the value of the points earned as deferred revenue based on the expected usage. The amount deferred is based on historic and projected customer activity (e.g., tier level, spending level). As customers receive discounted front end...

  • Page 61
    ... mail service dispensing pharmacy and (ii) prescription drugs sold under retail pharmacy network contracts where we are the principal using the gross method at the contract prices negotiated with our clients, primarily employers, insurance companies, unions, government employee groups, health plans...

  • Page 62
    ... pharmacy network and associated administrative fees are recognized at the Pharmacy Services segment's point-of-sale, which is when the claim is adjudicated by the Pharmacy Services segment's online claims processing system. • Revenues generated from prescription drugs sold by our mail service...

  • Page 63
    ..., charges or credits for facility closing and impairment, inventory write-downs related to store closings, debt retirements, and other items (including stock-based compensation expense, sale of assets and investments, and revenue deferrals related to our customer loyalty program). We reference...

  • Page 64
    ... 2016 (52 weeks) February 28, 2015 (52 weeks) March 1, 2014 (52 weeks) Net income ...Add back-Income tax expense (benefit) ...Income before income taxes ...Adjustments: Amortization of EnvisionRx intangible assets ...LIFO charge (credit) ...Loss on debt retirements, net ...Acquisition-related costs...

  • Page 65
    ...before LIFO charges), and Free Cash Flow (Adjusted EBITDA less cash paid for interest, rent on closed stores, capital expenditures, acquisition costs and the change in working capital). We include these non-GAAP financial measures in our earnings announcements in order to provide transparency to our...

  • Page 66
    ... Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, our disclosure controls and procedures are effective. (b) Internal Control Over Financial Reporting Management's Annual Report on Internal Control Over Financial Reporting Our management is responsible...

  • Page 67
    .... Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the...

  • Page 68
    ... with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements and financial statement schedule as of and for the year ended February 27, 2016 of the Company and our report dated April 25, 2016 expressed an unqualified opinion on those...

  • Page 69
    ... applicable, not required or the required information is included in the consolidated financial statements or notes thereto. 3. Exhibits Description Incorporation By Reference To 77 78 79 80 81 83 84 Exhibit Numbers 2.1 Agreement and Plan of Merger, dated as of October 27, 2015, among Rite Aid...

  • Page 70
    ... the Company's 6.125% Senior Notes due 2023 Registration Rights Agreement, dated as of April 2, 2015, among Rite Aid Corporation, the subsidiary guarantors named therein and Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo Securities, LLC, Credit Suisse...

  • Page 71
    ... 2012 Omnibus Equity Plan* 2014 Omnibus Equity Plan* Form of Award Agreement* Supplemental Executive Retirement Plan* Executive Incentive Plan for Officers of Rite Aid Corporation* Amended and Restated Employment Agreement by and between Rite Aid Corporation and John T. Standley, dated as of January...

  • Page 72
    ...Karst Letter Agreement, dated October 26, 2015, to the Employment Agreement by and between Rite Aid Corporation and Darren W. Karst, dated as of July 24, 2014* Employment Agreement by and between Rite Aid Corporation and Jocelyn Konrad dated as of August 18, 2015* Exhibit 10.3 on Form 8-K, filed on...

  • Page 73
    ... Rite Aid Corporation and Bryan Everett dated as of June 22, 2015* Employment Agreement by and between Rite Aid Corporation and David Abelman dated as of August 3, 2015* Form of Retention Award Agreement Form of December 31, 2015 Retention Award Agreement Amended and Restated Credit Agreement, dated...

  • Page 74
    ... Bank of New York Mellon Trust Company, N.A., as Senior Representative (as defined therein) for the Initial Additional Senior Debt Parties (as defined therein), and each additional Senior Representative from time to time party thereto Statement regarding computation of earnings per share (See Note...

  • Page 75
    ...of Cash Flows for the fiscal years ended February 27, 2016, February 28, 2015, and March 1, 2014 and (vi) Notes to Consolidated Financial Statements, tagged in detail. Filed herewith Filed herewith Filed herewith 31.2 Filed herewith 32 Filed herewith 101. * ** Constitutes a compensatory plan...

  • Page 76
    ... not describe the actual state of affairs as of the date they were made or at any other time. Additional information about Rite Aid Corporation may be found elsewhere in this report and the Company's other public filings, which are available without charge through the SEC's website at http://www.sec...

  • Page 77
    ...), and cash flows for each of the three years in the period ended February 27, 2016. Our audits also included the financial statement schedule listed in the Index at Item 15(a)(2). These financial statements and financial statement schedule are the responsibility of the Company's management. Our...

  • Page 78
    ... SHEETS (In thousands, except per share amounts) February 27, 2016 February 28, 2015 ASSETS Current assets: Cash and cash equivalents ...Accounts receivable, net ...Inventories, net ...Deferred tax assets ...Prepaid expenses and other current assets Total current assets ...Property, plant and...

  • Page 79
    ... CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share amounts) Year Ended February 28, 2015 (52 Weeks) February 27, 2016 (52 Weeks) March 1, 2014 (52 Weeks) Revenues ...Costs and expenses: Cost of revenues ...Selling, general and administrative expenses Lease termination...

  • Page 80
    ...AID CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In thousands) Year Ended February 28, 2015 (52 Weeks) February 27, 2016 (52 Weeks) March 1, 2014 (52 Weeks) Net income ...Other comprehensive income: Defined benefit pension plans: Amortization of prior service cost...

  • Page 81
    RITE AID CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) Preferred Preferred Stock-Series G Stock-Series H Shares Amount Shares Amount BALANCE ...

  • Page 82
    ...income ...Exchange of restricted shares for taxes ...Issuance of restricted stock ...Cancellation of restricted stock ...Amortization of restricted stock balance ...Stock-based compensation expense ...Conversion of convertible debt instruments . . Tax benefit from exercise of stock options and stock...

  • Page 83
    RITE AID CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) Year Ended February 28, 2015 (52 Weeks) February 27, 2016 (52 Weeks) March 1, 2014 (52 Weeks) OPERATING ACTIVITIES: Net income ...Adjustments to reconcile to net cash provided by operating Depreciation and ...

  • Page 84
    ... 24, 2015 acquisition of EnvisionRx, operates both a transparent and traditional pharmacy benefit management (''PBM'') business; mail-order and specialty pharmacy services through Orchard Pharmaceutical Services; access to the nation's largest cash pay infertility discount drug program via Design...

  • Page 85
    ... at the lower of cost or market. Inventory balances include the capitalization of certain costs related to purchasing, freight and handling costs associated with placing inventory in its location and condition for sale. The Company uses the last-in, first-out (''LIFO'') cost flow assumption for...

  • Page 86
    ... lease. The Company capitalizes direct internal and external development costs associated with internal-use software. Neither preliminary evaluation costs nor costs associated with the software after implementation are capitalized. For fiscal years 2016, 2015 and 2014, the Company capitalized costs...

  • Page 87
    ... tenders the cash price or patient third party payor co-payment amount at the point of sale. Prescriptions are generally not returnable. The Retail Pharmacy segment offers a chain wide loyalty card program titled wellness +. Members participating in the wellness + loyalty card program earn points on...

  • Page 88
    ... drugs sold by (i) its mail service dispensing pharmacy and (ii) under retail pharmacy network contracts where it is the principal using the gross method at the contract prices negotiated with its clients, primarily employers, insurance companies, unions, government employee groups, health plans...

  • Page 89
    ... ''Drug Discounts'' below), (ii) the price paid to the Pharmacy Services segment by client plan members for mail order prescriptions (''Mail Co-Payments''), (iii) customer copayments made directly to the retail pharmacy network, and (iv) administrative fees. Sales taxes are not included in revenue...

  • Page 90
    ... in net revenues over the period in which members are entitled to receive benefits. The Pharmacy Services segment records estimates of various assets and liabilities arising from its participation in the Medicare Part D program based on information in its claims management and enrollment systems...

  • Page 91
    ...of the cost of prescription drugs sold through the Pharmacy Services segment's retail pharmacy network under contracts where it is the principal. See Note 20 for additional information about the cost of revenues of the Company's business segments. Vendor Rebates and Allowances and Purchase Discounts...

  • Page 92
    ... claims incurred but not reported relating to the Company's self-insurance. Workers' compensation claims are discounted to present value using a risk-free interest rate. Benefit Plan Accruals The Company has several defined benefit plans, under which participants earn a retirement benefit based upon...

  • Page 93
    ... of litigation and settlement strategies. Facility Closing Costs and Lease Exit Charges When a store or distribution center is closed, the Company records an expense for unrecoverable costs and accrues a liability equal to the present value at current credit adjusted risk-free interest rates of...

  • Page 94
    ...brand and generic medications the Company dispenses as well as providing a new direct store delivery model to all of the Company's stores. During fiscal 2016, the Company purchased brand and generic pharmaceuticals, which amounted to approximately 97.5% of the dollar volume of its prescription drugs...

  • Page 95
    ...1, 2019. The Company is in process of assessing the impact of the adoption of ASU No. 2016-02 on its financial position, results of operations and cash flows. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements...

  • Page 96
    ... fiscal fourth quarter of fiscal 2016 and consequently measured its plan assets as of February 29, 2016. This adoption did not materially affect the Company's financial position, results of operations or cash flows. In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805...

  • Page 97
    ... mail-order and specialty pharmacy services through Orchard Pharmaceutical Services; access to the nation's largest cash pay infertility discount drug program via Design Rx; an innovative claims adjudication software platform in Laker Software; and a national Medicare Part D prescription drug plan...

  • Page 98
    ... date of June 24, 2015 through February 27, 2016 (please see Note 20 Segment Reporting for the Pharmacy Services segment results included within the consolidated financial statements for the fifty-two week period ended February 27, 2016, which reflects the results of EnvisionRx). The Company...

  • Page 99
    ...of future cash flows, discounted at an appropriate rate of return which are based on the weighted average cost of capital for both the Company and other market participants, projected customer attrition rates, as well as applicable royalty rates for comparable assets. The useful lives for intangible...

  • Page 100
    ... FINANCIAL STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 2. Acquisition (Continued) directly or indirectly to future cash flows. The estimated fair value of intangible assets and related useful lives...

  • Page 101
    RITE AID CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 2. Acquisition (Continued) have a continuing impact on the consolidated results of ...

  • Page 102
    ... FINANCIAL STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 2. Acquisition (Continued) The unaudited pro forma combined information is not necessarily indicative of what the combined company's results...

  • Page 103
    RITE AID CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 3. Pending Merger (Continued) Antitrust Improvements Act of 1976, as amended, (ii) the ...

  • Page 104
    ... 27, 2016 (52 Weeks) Year Ended February 28, 2015 (52 Weeks) March 1, 2014 (52 Weeks) Stock options ... 3,464 2,777 4,044 On September 30, 2013, the Company redeemed all of its outstanding Series G and Series H Convertible Preferred Stock (collectively the ''Convertible Preferred Stock'') at...

  • Page 105
    ..., the Company exchanged 40,000,000 shares of its common stock, par value of $1.00 per share, with a market value of $190,400 at the $4.76 per share closing price on September 30, 2013, for all of the outstanding Convertible Preferred Stock. Accordingly, income attributable to common stock holders...

  • Page 106
    ..., $12,126 in fiscal 2015 and $11,748 in fiscal 2014. The Company reviews key performance results for active stores on a quarterly basis and approves certain stores for closure. Impairment for closed stores, if any (many stores are closed on lease expiration), are recorded in the quarter the closure...

  • Page 107
    ... share amounts) 5. Lease Termination and Impairment Charges (Continued) The following table summarizes the impairment charges and number of locations, segregated by closed facilities and active stores that have been recorded in fiscal 2016, 2015 and 2014: February 27, 2016 Number Charge Year Ended...

  • Page 108
    ...) and discounting them using a risk-adjusted rate of interest (which is Level 1). The Company estimates future cash flows based on its experience and knowledge of the market in which the store is located. Significant increases or decreases in actual cash flows may result in valuation changes. The...

  • Page 109
    ... inventory, as well as impairment of assets at these locations. The following table reflects the closed store and distribution center charges that relate to new closures, changes in assumptions and interest accretion: February 27, 2016 (52 Weeks) Year Ended February 28, 2015 (52 Weeks) March 1, 2014...

  • Page 110
    ...borrowings under the Company's senior secured credit facility and first and second lien term loans are estimated based on the quoted market price of the financial instrument which is considered Level 1 of the fair value hierarchy. The fair values of substantially all of the Company's other long-term...

  • Page 111
    ... income tax expense (benefit) was as follows: February 27, 2016 (52 Weeks) Year Ended February 28, 2015 (52 Weeks) March 1, 2014 (52 Weeks) Current tax: Federal ...State ...Deferred tax and other: Federal ...State ...Tax expense recorded as an increase of additional paid-in-capital ...Total income...

  • Page 112
    RITE AID CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 7. Income Taxes (Continued) Net income for fiscal 2016 included income tax expense of $112...

  • Page 113
    ... February 28, 2015 the total amount of accrued income tax-related interest and penalties was $539 and $115, respectively. The Company files U.S. federal income tax returns as well as income tax returns in those states where it does business. The consolidated federal income tax returns are closed for...

  • Page 114
    ... by management. 9. Medicare Part D The Company offers Medicare Part D benefits through EIC, which has contracted with CMS to be a PDP and, pursuant to the Medicare Prescription Drug, Improvement and Modernization Act of 2003, must be a risk-bearing entity regulated under state insurance laws...

  • Page 115
    ... 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 9. Medicare Part D (Continued) The Company has recorded estimates of various assets and liabilities arising from its participation in the Medicare Part D program based on information in its claims management and enrollment systems...

  • Page 116
    ..., industry and market conditions, financial performance of the Company, changes in the Company's share price, and forecasts of revenue, profit, working capital requirements, and cash flows. The Company considers its two reporting units', the Retail Pharmacy segment and the Pharmacy Services segment...

  • Page 117
    ...of the changes in the carrying amount of goodwill by segment for the fiscal years ended February 27, 2016 and February 28, 2015: Retail Pharmacy Pharmacy Services Total Balance, March 1, 2014 ...Acquisitions ...Balance, February 28, 2015 ...Acquisition (see Note 2. Acquisition) ...Balance, February...

  • Page 118
    RITE AID CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 12. Goodwill and Other Intangibles (Continued) Amortization expense for these intangible ...

  • Page 119
    ... Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 14. Indebtedness and Credit Agreement Following is a summary of indebtedness and lease financing obligations at February 27, 2016 and February 28, 2015: 2016 2015 Secured Debt: Senior secured...

  • Page 120
    ... FINANCIAL STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 14. Indebtedness and Credit Agreement (Continued) Credit Facility On January 13, 2015, the Company amended and restated its senior secured credit...

  • Page 121
    ... FINANCIAL STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 14. Indebtedness and Credit Agreement (Continued) in clause (iii) of the definition of ''Escrow Notes'' in the Amended and Restated Senior Secured...

  • Page 122
    RITE AID CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 14. Indebtedness and Credit Agreement (Continued) loan facilities and, on an unsecured ...

  • Page 123
    ... FINANCIAL STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 14. Indebtedness and Credit Agreement (Continued) 2014 Transactions In June 2013, the Company completed a tender offer for its 7.5% senior secured...

  • Page 124
    RITE AID CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 15. Leases The Company leases most of its retail stores and certain distribution ...

  • Page 125
    RITE AID CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 15. Leases (Continued) Following is a summary of lease finance obligations at February 27,...

  • Page 126
    RITE AID CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 16. Stock Option and Stock Award Plans (Continued) restricted stock, stock options, ...

  • Page 127
    ... 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 16. Stock Option and Stock Award Plans (Continued) Stock Options The Company determines the fair value of stock options issued on the date of grant using the Black-Scholes-Merton option-pricing model. The...

  • Page 128
    ... AID CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 16. Stock Option and Stock Award Plans (Continued) The weighted average fair value of options...

  • Page 129
    ... plans under which the associates will receive a certain number of shares of the Company's common stock based on the Company meeting certain financial and performance goals. The Company incurred $12,634, $1,769 and $0 related to these performance based incentive plans for fiscal 2016, 2015, and 2014...

  • Page 130
    ...and the changes in balances of each component of accumulated other comprehensive loss, net of tax as applicable, for the fiscal years ended February 27, 2016, February 28, 2015 and March 1, 2014: February 27, 2016 (52 Weeks) Defined Accumulated benefit other pension comprehensive plans loss February...

  • Page 131
    ...Defined Benefit Plans The Company and its subsidiaries also sponsor a qualified defined benefit pension plan that requires benefits to be paid to eligible associates based upon years of service and, in some cases, eligible compensation. The Company's funding policy for The Rite Aid Pension Plan (The...

  • Page 132
    ... FINANCIAL STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 18. Retirement Plans (Continued) Benefit Pension Plan'') is to contribute the minimum amount required by the Employee Retirement Income Security Act...

  • Page 133
    ...in the Company's balance sheet as of February 27, 2016 and February 28, 2015: Defined Benefit Pension Plan 2016 2015 Nonqualified Executive Retirement Plan 2016 2015 Change in benefit obligations: Benefit obligation at end of prior year . Service cost ...Interest cost ...Distributions ...Change due...

  • Page 134
    ...cost for the fiscal years ended February 27, 2016, February 28, 2015 and March 1, 2014 were: Defined Benefit Pension Plan 2016 2015 2014 Nonqualified Executive Retirement Plan 2016 2015 2014 Discount rate ...Rate of increase in future compensation levels ...Expected long-term rate of return on plan...

  • Page 135
    ... and management costs. The asset allocation established for the pension investment program reflects the risk tolerance of the Company, as determined by: • the current and anticipated financial strength of the Company; • the funded status of the plan; and • plan liabilities. Investments in...

  • Page 136
    ... at February 28, 2015 Quoted Prices in Active Markets Significant Significant for Identical Observable Unobservable Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Total Equity Securities International equity ...Large Cap ...Small-Mid Cap ...Fixed Income Long Term Credit Bond Index Intermediate...

  • Page 137
    ... multi-employer union pension plans that are not sponsored by the Company. Total expenses recognized for the multi-employer plans were $25,966 in fiscal 2016, $24,261 in fiscal 2015 and $26,617 in fiscal 2014. 19. Multiemployer Plans that Provide Pension Benefits The Company contributes to a number...

  • Page 138
    ... of the Company 2016 2015 2014 Expiration Date of CollectiveSurcharge Bargaining Imposed Agreement No 4/18/2015 Pension 1199 SEIU Health Care Employees Pension Fund EIN/Pension Plan Number Minimum Funding Requirements Contribution rate of 11.25% of gross wages earned per associate through 12...

  • Page 139
    ... mail order services, infertility treatment, and drug benefits to eligible beneficiaries under the federal government's Medicare Part D program. The Parent Company's chief operating decision makers are its Parent Company Chief Executive Officer, Parent Company President and CEO-Retail Pharmacy, CEO...

  • Page 140
    ... of the Company's business segments to the consolidated financial statements for the fiscal years ended February 27, 2016, February 28, 2015 and March 1, 2014: Retail Pharmacy Pharmacy Services Intersegment Eliminations(1) Consolidated February 27, 2016: Revenues ...Gross Profit ...Adjusted...

  • Page 141
    RITE AID CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 20. Segment Reporting (Continued) The following is a reconciliation of net income to ...

  • Page 142
    RITE AID CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 21. Commitments, Contingencies and Guarantees Legal Matters The Company is a party to ...

  • Page 143
    ... Rite Aid Corporation et al. pending in the United States District Court for the Southern District of New York, filed purportedly on behalf of current and former store managers working in the Company's stores at various locations around the country. The lawsuit alleges that the Company failed to pay...

  • Page 144
    ... United States Attorney's Office for the Eastern District of Michigan. The subpoena requests records regarding the relationship of Rite Aid's Rx Savings Program to the reporting of usual and customary charges to publicly funded health programs. In connection with the same investigation, the Company...

  • Page 145
    ... DEA, Los Angeles District Office, served an administrative subpoena on the Company seeking documents related to prescriptions by a certain prescriber. The USAO, Central District of California, also contacted the Company about a related investigation into allegations that Rite Aid pharmacies filled...

  • Page 146
    ... financial position. It is possible, however, that the Company's results of operations or cash flows could be materially affected by an unfavorable resolution of pending litigation or contingencies. Contingencies The California Department of Health Care Services (''DHCS''), the agency responsible...

  • Page 147
    ...CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 22. Supplementary Cash Flow Data February 27, 2016 Year Ended February 28, 2015 March 1, 2014 Cash paid for interest (net of capitalized...

  • Page 148
    ... earned but unpaid dividends as of the Settlement Date, was redeemable by the Company for cash at 105% of the Preferred Stock's $100 per share liquidation preference or $199,937. The Company agreed to the Exchange as it was prohibited under several of its debt instruments from using cash to effect...

  • Page 149
    ... CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 24. Guarantor and Non-Guarantor Condensed Consolidating Financial Information Rite Aid Corporation conducts the majority of its business...

  • Page 150
    ...for the fiscal year ended February 27, 2016. Separate financial statements for Subsidiary Guarantors are not presented. Rite Aid Corporation Condensed Consolidating Balance Sheet February 27, 2016 Rite Aid Corporation (Parent Company Only) ASSETS Current assets: Cash and cash equivalents ...Accounts...

  • Page 151
    ... Consolidating Financial Information (Continued) Rite Aid Corporation Condensed Consolidating Statement of Operations For the Year Ended February 27, 2016 Rite Aid Corporation (Parent Company Only) Revenues ...Costs and expenses: Cost of revenues ...Selling, general and administrative expenses Lease...

  • Page 152
    ... of Cash Flows For the Year Ended February 27, 2016 Rite Aid Corporation (Parent Company Only) Operating activities: Net cash (used in) provided by operating activities ...Investing activities: Payments for property, plant and equipment . Intangible assets acquired ...Acquisition of businesses, net...

  • Page 153
    ... STATEMENTS (Continued) For the Years Ended February 27, 2016, February 28, 2015 and March 1, 2014 (In thousands, except per share amounts) 25. Interim Financial Results (Unaudited) First Quarter Second Quarter Fiscal Year 2016 Third Quarter Fourth Quarter Year Revenues ...Cost of revenues...

  • Page 154
    ...a larger LIFO credit recognized at prior year end caused by lower pharmacy inventory due to its Purchasing and Delivery Arrangement. During the third quarter of 2015, the Company recorded a loss on debt retirement related to the October 2014 redemption of the outstanding 10.25% senior notes due 2019...

  • Page 155
    RITE AID CORPORATION AND SUBSIDIARIES SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS For the Years Ended February 27, 2016, February 28, 2015, and March 1, 2014 (dollars in thousands) Allowances deducted from accounts receivable for estimated uncollectible amounts: Balance at Beginning of Period ...

  • Page 156
    ... behalf by the undersigned, thereunto duly authorized. RITE AID CORPORATION By: /s/ JOHN T. STANDLEY John T. Standley Chairman and Chief Executive Officer Dated: April 25, 2016 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following...

  • Page 157
    Signature Title /s/ MYRTLE S. POTTER Myrtle S. Potter Director /s/ MICHAEL N. REGAN Michael N. Regan Director /s/ FRANK A. SAVAGE Frank A. Savage Director /s/ MARCY SYMS Marcy Syms Director 157

  • Page 158
    ... of debt expense, preferred stock dividend requirement and that portion of rental expense which is representative of the interest factor in those rentals. February 27, 2016 (52 Weeks) Year Ended February 28, March 1, March 2, 2015 2014 2013 (52 Weeks) (52 Weeks) (52 Weeks) (dollars in thousands...

  • Page 159
    ...-Mobile, Alabama, LLC . . Apex Drug Stores, Inc...Ascend Health Technology, LLC ...Broadview and Wallings-Broadview Heights Ohio, Inc. Central Avenue & Main Street Petal-MS, LLC ...Design Rx, LLC ...Design Rxclusives, LLC ...Design Rx Holdings, LLC ...Eagle Managed Care Corp...Eckerd Corporation...

  • Page 160
    ... Pharmaceutical Services, LLC ...P.J.C. Distribution, Inc...P.J.C. Realty Co., Inc...Patton Drive and Navy Boulevard Property Corporation ...Paw Paw Lake Road & Paw Paw Avenue-Coloma, Michigan, PDS-1 Michigan, Inc...Perry Distributors, Inc...Perry Drug Stores Inc...PJC Dorchester Realty LLC ...PJC...

  • Page 161
    ..., Inc...Rite Aid Online Store Inc...Rite Aid Payroll Management Inc...Rite Aid Realty Corp...Rite Aid Rome Distribution Center, Inc...Rite Aid Services, LLC ...Rite Aid Specialty Pharmacy LLC ...Rite Aid Transport, Inc...Rite Fund, Inc...Rite Investments Corp...Rite Investments Corp., LLC ...Rx...

  • Page 162
    ... and of our reports dated April 25, 2016, relating to the financial statements and financial statement schedule of Rite Aid Corporation and subsidiaries, and the effectiveness of Rite Aid Corporation and subsidiaries' internal control over financial reporting, appearing in this Annual Report on Form...

  • Page 163
    ... T. Standley, Chairman and Chief Executive Officer, certify that: 1. 2. I have reviewed this annual report on Form 10-K of Rite Aid Corporation (the ''Registrant''); Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary...

  • Page 164
    ... Vice President, Chief Financial Officer and Chief Administrative Officer, certify that: 1. 2. I have reviewed this annual report on Form 10-K of Rite Aid Corporation (the ''Registrant''); Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state...

  • Page 165
    ... Act of 2002 In connection with the Annual Report on Form 10-K of Rite Aid Corporation (the ''Company'') for the annual period ended February 27, 2016 as filed with the Securities and Exchange Commission on the date hereof (the ''Report''), John T. Standley, as Chairman and Chief Executive Officer...