Rite Aid 2016 Annual Report Download - page 96

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)
1. Summary of Significant Accounting Policies (Continued)
the evaluation of whether limited partnerships and similar legal entities are variable interest entities
(VIEs), eliminates the presumption that a general partner should consolidate a limited partnership, and
affects the consolidation analysis of reporting entities that are involved with VIEs, especially those that
have fee arrangements and related party relationships. This ASU is effective for fiscal years beginning
after December 15, 2015, and for interim periods within those fiscal years. The Company is in the
process of assessing the impact of the adoption of ASU 2015-02 on its financial position, results of
operations and cash flows.
In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest
(Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This ASU simplifies the
presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt
liability be presented in the balance sheet as a direct reduction from the carrying amount of the debt
liability, which is consistent with the treatment of debt discounts. Recognition and measurement of debt
issuance costs were not affected by this amendment. The new guidance should be applied on a
retrospective basis, and upon transition, an entity is required to comply with the applicable disclosures
necessary for a change in accounting principle. This ASU is effective for fiscal years beginning after
December 15, 2015, and for interim periods within those fiscal years. As permitted, the Company early
adopted this standard beginning in the fourth quarter of fiscal 2016. The effect of the adoption of
ASU 2015-03 on the Company’s consolidated balance sheet is a reduction of other assets and long-term
debt of $85,827 as of February 28, 2015. The following is a reconciliation of the effect of this
reclassification on the Company’s consolidated balance sheet as of February 28, 2015:
As Previously
Reported Adjustments As Revised
Other assets ......................... $ 286,172 $(85,827) $ 200,345
Total assets .......................... 8,863,252 (85,827) 8,777,425
Long-term debt, less current maturities ..... 5,483,415 (85,827) 5,397,588
Total liabilities ....................... 8,806,196 (85,827) 8,720,369
Total liabilities and stockholders’ equity ..... 8,863,252 (85,827) 8,777,425
In April 2015, the FASB issued ASU No. 2015-04, Compensation—Retirement Benefits (Topic 715):
Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan
Assets. This ASU allows an employer whose fiscal year-end does not coincide with a calendar
month-end, for example, an entity that has a 52-week or 53-week fiscal year, the ability as a practical
expedient, to measure defined benefit retirement obligations and related plan assets as of the
month-end that is closest to its fiscal year-end. This ASU is effective for fiscal years beginning after
December 15, 2015, and for interim periods within those fiscal years. Early adoption of this ASU is
permitted. The Company adopted this guidance in the 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)—
Simplifying the Accounting for Measurement-Period Adjustments. This ASU requires an acquirer to
recognize provisional adjustments identified during the measurement period in the reporting period in
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