Rite Aid 2016 Annual Report Download - page 117

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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)
Below is a summary 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 ........................... 76,124 — 76,124
Balance, February 28, 2015 ................ $76,124 $ — $ 76,124
Acquisition (see Note 2. Acquisition) ......... — 1,637,351 1,637,351
Balance, February 27, 2016 ................ $76,124 $1,637,351 $1,713,475
The Company’s intangible assets are finite-lived and amortized over their useful lives. Following is
a summary of the Company’s finite-lived and indefinitely-lived intangible assets as of February 27, 2016
and February 28, 2015.
2016 2015
Remaining Remaining
Weighted Weighted
Gross Average Gross Average
Carrying Accumulated Amortization Carrying Accumulated Amortization
Amount Amortization Net Period Amount Amortization Net Period
Favorable leases
and other ..... $ 665,197 $ (507,776) $ 157,421 8 years $ 653,377 $ (481,041) $172,336 8 years
Prescription files . . 1,541,518 (1,285,633) 255,885 3 years 1,440,154 (1,191,010) 249,144 3 years
Customer
relationships(a) . 465,000 (44,203) 420,797 17 years — — —
CMS license ..... 57,500 (1,572) 55,928 25 years — — —
Claims adjudication
and other
developed
software ...... 59,000 (5,760) 53,240 7 years — — —
Trademarks ...... 20,100 (1,373) 18,727 10 years — — —
Backlog ........ 11,500 (2,619) 8,881 3 years — — —
Total finite ...... $2,819,815 $(1,848,936) 970,879 $2,093,531 $(1,672,051) $421,480
Trademarks ...... 33,500 — 33,500 Indefinite — — —
Total .......... $2,853,315 $(1,848,936) $1,004,379 $2,093,531 $(1,672,051) $421,480
(a) —Amortized on an accelerated basis which is determined based on the remaining useful economic lives of the
customer relationships that are expected to contribute directly or indirectly to future cash flows.
Also included in other non-current liabilities as of February 27, 2016 and February 28, 2015 are
unfavorable lease intangibles with a net carrying amount of $46,947 and $55,571, respectively. These
intangible liabilities are amortized over their remaining lease terms at time of acquisition.
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