Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Nov. 30, 2013 | Dec. 19, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'RITE AID CORP | ' |
Entity Central Index Key | '0000084129 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Nov-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--03-01 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 966,525,581 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Nov. 30, 2013 | Mar. 02, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $183,212 | $129,452 |
Accounts receivable, net | 850,249 | 929,476 |
Inventories, net of LIFO reserve of $975,241 and $915,241 | 3,301,103 | 3,154,742 |
Prepaid expenses and other current assets | 111,689 | 195,377 |
Total current assets | 4,446,253 | 4,409,047 |
Property, plant and equipment, net | 1,957,584 | 1,895,650 |
Other intangibles, net | 438,281 | 464,404 |
Other assets | 296,049 | 309,618 |
Total assets | 7,138,167 | 7,078,719 |
Current liabilities: | ' | ' |
Current maturities of long-term debt and lease financing obligations | 47,753 | 37,311 |
Accounts payable | 1,397,093 | 1,384,644 |
Accrued salaries, wages and other current liabilities | 1,120,238 | 1,156,315 |
Total current liabilities | 2,565,084 | 2,578,270 |
Long-term debt, less current maturities | 5,825,816 | 5,904,370 |
Lease financing obligations, less current maturities | 78,857 | 91,850 |
Other noncurrent liabilities | 897,235 | 963,663 |
Total liabilities | 9,366,992 | 9,538,153 |
Commitments and contingencies | ' | ' |
Stockholders' deficit: | ' | ' |
Common stock, par value $1 per share; 1,500,000 authorized; shares issued and outstanding 965,411 and 904,268 | 965,411 | 904,268 |
Additional paid-in capital | 4,434,570 | 4,280,831 |
Accumulated deficit | -7,571,225 | -7,765,262 |
Accumulated other comprehensive loss | -57,581 | -61,369 |
Total stockholders' deficit | -2,228,825 | -2,459,434 |
Total liabilities and stockholders' deficit | 7,138,167 | 7,078,719 |
Preferred Stock-Series G | ' | ' |
Stockholders' deficit: | ' | ' |
Preferred stock | ' | 1 |
Preferred Stock-Series H | ' | ' |
Stockholders' deficit: | ' | ' |
Preferred stock | ' | $182,097 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Nov. 30, 2013 | Mar. 02, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Inventories, LIFO reserve (in dollars) | $975,241 | $915,241 |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued | 965,411,000 | 904,268,000 |
Common stock, shares outstanding | 965,411,000 | 904,268,000 |
Preferred Stock-Series G | ' | ' |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, liquidation value (in dollars per share) | $100 | $100 |
Preferred stock, shares authorized | 0 | 2,000,000 |
Preferred stock, shares issued | 0 | 7 |
Preferred Stock-Series H | ' | ' |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, liquidation value (in dollars per share) | $100 | $100 |
Preferred stock, shares authorized | 0 | 2,000,000 |
Preferred stock, shares issued | 0 | 1,821,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Nov. 30, 2013 | Dec. 01, 2012 | Nov. 30, 2013 | Dec. 01, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' | ' |
Revenues | $6,357,732 | $6,237,847 | $18,928,954 | $18,937,018 |
Costs and expenses: | ' | ' | ' | ' |
Cost of goods sold | 4,557,066 | 4,426,526 | 13,490,936 | 13,666,505 |
Selling, general and administrative expenses | 1,632,299 | 1,612,198 | 4,844,491 | 4,918,433 |
Lease termination and impairment charges | 1,672 | 14,366 | 24,034 | 34,292 |
Interest expense | 102,819 | 128,371 | 322,599 | 388,013 |
Loss on debt retirements, net | 271 | ' | 62,443 | 17,842 |
Gain on sale of assets, net | -9,331 | -6,262 | -16,396 | -19,267 |
Total costs and expenses | 6,284,796 | 6,175,199 | 18,728,107 | 19,005,818 |
Income (loss) before income taxes | 72,936 | 62,648 | 200,847 | -68,800 |
Income tax expense (benefit) | 1,388 | 777 | 6,810 | -63,818 |
Net income (loss) | 71,548 | 61,871 | 194,037 | -4,982 |
Computation of income (loss) attributable to common stockholders: | ' | ' | ' | ' |
Net income (loss) | 71,548 | 61,871 | 194,037 | -4,982 |
Accretion of redeemable preferred stock | -26 | -26 | -77 | -77 |
Cumulative preferred stock dividends | -2,814 | -2,651 | -8,318 | -7,837 |
Conversion of Series G and H preferred stock | -25,603 | ' | -25,603 | ' |
Income (loss) attributable to common stockholders-basic | 43,105 | 59,194 | 160,039 | -12,896 |
Add back-interest on convertible notes | ' | 1,334 | ' | ' |
Income (loss) attributable to common stockholders-diluted | $43,105 | $60,528 | $160,039 | ($12,896) |
Basic income (loss) per share (in dollars per share) | $0.05 | $0.07 | $0.18 | ($0.01) |
Diluted income (loss) per share (in dollars per share) | $0.04 | $0.07 | $0.17 | ($0.01) |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Dec. 01, 2012 | Nov. 30, 2013 | Dec. 01, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ' | ' | ' | ' |
Net income (loss) | $71,548 | $61,871 | $194,037 | ($4,982) |
Defined benefit pension plans: | ' | ' | ' | ' |
Amortization of prior service cost, net transition obligation and net actuarial losses included in net periodic pension cost | 1,263 | 1,020 | 3,788 | 3,059 |
Total other comprehensive income | 1,263 | 1,020 | 3,788 | 3,059 |
Comprehensive income (loss) | $72,811 | $62,891 | $197,825 | ($1,923) |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Dec. 01, 2012 |
Operating activities: | ' | ' |
Net income (loss) | $194,037 | ($4,982) |
Adjustments to reconcile to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 301,681 | 311,160 |
Lease termination and impairment charges | 24,034 | 34,292 |
Gain from lease termination | -8,750 | ' |
LIFO charges | 60,000 | 27,502 |
Gain on sale of assets, net | -16,396 | -19,267 |
Stock-based compensation expense | 12,194 | 12,872 |
Loss on debt retirements, net | 62,443 | 17,842 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 79,895 | 95,732 |
Inventories | -206,408 | 13,055 |
Accounts payable | 25,160 | 55,498 |
Other assets and liabilities, net | -19,972 | 55,533 |
Net cash provided by operating activities | 507,918 | 599,237 |
Investing activities: | ' | ' |
Payments for property, plant and equipment | -255,269 | -233,195 |
Intangible assets acquired | -64,605 | -45,659 |
Proceeds from sale-leaseback transactions | 3,989 | 6,355 |
Proceeds from dispositions of assets and investments | 14,157 | 27,744 |
Proceeds from lease termination | 8,750 | ' |
Proceeds from insured loss | 6,138 | ' |
Net cash used in investing activities | -286,840 | -244,755 |
Financing activities: | ' | ' |
Proceeds from issuance of long-term debt | 1,310,000 | 426,263 |
Net payments to revolver | -75,000 | -136,000 |
Principal payments on long-term debt | -1,332,528 | -479,147 |
Change in zero balance cash accounts | -10,161 | -43,507 |
Net proceeds from issuance of common stock | 24,881 | 1,103 |
Payments for the repurchase of preferred stock | -21,034 | ' |
Financing fees paid for early debt redemption | -45,636 | -11,069 |
Deferred financing costs paid | -17,840 | -10,769 |
Net cash used in financing activities | -167,318 | -253,126 |
Increase in cash and cash equivalents | 53,760 | 101,356 |
Cash and cash equivalents, beginning of period | 129,452 | 162,285 |
Cash and cash equivalents, end of period | 183,212 | 263,641 |
Supplementary cash flow data: | ' | ' |
Cash paid for interest (net of capitalized amounts of $163 and $319, respectively) | 313,302 | 311,026 |
Cash payments of income taxes, net of refunds | 2,283 | 3,515 |
Equipment financed under capital leases | 15,023 | 7,251 |
Equipment received for noncash consideration | 1,588 | 2,636 |
Preferred stock dividends paid in additional shares | 8,318 | 7,837 |
Gross borrowings from revolver | 1,915,000 | 293,000 |
Gross repayments to revolver | $1,990,000 | $429,000 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Dec. 01, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ' | ' |
Cash paid for interest, capitalized amounts | $163 | $319 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Nov. 30, 2013 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
1. Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X and therefore do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete annual financial statements. The accompanying financial information reflects all adjustments which are of a recurring nature and, in the opinion of management, are necessary for a fair presentation of the results for the interim periods. The results of operations for the thirteen and thirty-nine week periods ended November 30, 2013 are not necessarily indicative of the results to be expected for the full year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Rite Aid Corporation and Subsidiaries (the "Company") Fiscal 2013 10-K. | |
New Accounting Pronouncements | |
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU No. 2013-11 requires an entity to present unrecognized tax benefits as a reduction to deferred tax assets when a net operating loss carryforward, similar tax loss or a tax credit carryforward exists, with limited exceptions. ASU No. 2013-11 is effective for fiscal years beginning on or after December 15, 2013, and for interim periods within those fiscal years. This pronouncement will have no effect on the financial statements as the Company has historically presented uncertain tax positions in accordance with ASU No. 2013-11. | |
Income_Loss_Per_Share
Income (Loss) Per Share | 9 Months Ended | |||||||||||||
Nov. 30, 2013 | ||||||||||||||
Income (Loss) Per Share | ' | |||||||||||||
Income (Loss) Per Share | ' | |||||||||||||
2. Income (Loss) Per Share | ||||||||||||||
Basic income (loss) per share is computed by dividing income (loss) available to common stockholders by the weighted average number of shares of common stock outstanding for the period. Diluted income (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the income of the Company subject to anti-dilution limitations. | ||||||||||||||
Thirteen Week Period Ended | Thirty-Nine Week Period Ended | |||||||||||||
November 30, | December 1, | November 30, | December 1, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Numerator for income (loss) per share: | ||||||||||||||
Net income (loss) | $ | 71,548 | $ | 61,871 | $ | 194,037 | $ | (4,982 | ) | |||||
Accretion of redeemable preferred stock | (26 | ) | (26 | ) | (77 | ) | (77 | ) | ||||||
Cumulative preferred stock dividends | (2,814 | ) | (2,651 | ) | (8,318 | ) | (7,837 | ) | ||||||
Conversion of Series G and H preferred stock | (25,603 | ) | — | (25,603 | ) | — | ||||||||
Income (loss) attributable to common stockholders—basic | $ | 43,105 | $ | 59,194 | $ | 160,039 | $ | (12,896 | ) | |||||
Add back—interest on convertible notes | — | 1,334 | — | — | ||||||||||
Income (loss) attributable to common stockholders—diluted | $ | 43,105 | $ | 60,528 | $ | 160,039 | $ | (12,896 | ) | |||||
Denominator: | ||||||||||||||
Basic weighted average shares | 938,994 | 891,031 | 911,608 | 889,187 | ||||||||||
Outstanding options and restricted shares, net | 48,843 | 1,977 | 41,227 | — | ||||||||||
Convertible notes | — | 24,800 | — | — | ||||||||||
Diluted weighted average shares | 987,837 | 917,808 | 952,835 | 889,187 | ||||||||||
Basic income (loss) per share | $ | 0.05 | $ | 0.07 | $ | 0.18 | $ | (0.01 | ) | |||||
Diluted income (loss) per share | $ | 0.04 | $ | 0.07 | $ | 0.17 | $ | (0.01 | ) | |||||
Due to their antidilutive effect, the following potential common shares have been excluded from the computation of diluted income (loss) per share as of November 30, 2013 and December 1, 2012: | ||||||||||||||
Thirteen Week Period Ended | Thirty-Nine Week Period Ended | |||||||||||||
November 30, | December 1, | November 30, | December 1, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Stock options | 23,564 | 70,868 | 32,433 | 83,169 | ||||||||||
Convertible notes | 24,800 | — | 24,800 | 24,800 | ||||||||||
Convertible preferred stock | — | 32,619 | — | 32,619 | ||||||||||
48,364 | 103,487 | 57,233 | 140,588 | |||||||||||
Also excluded from the computation of diluted income (loss) per share for the thirty-nine week periods ended November 30, 2013 and December 1, 2012 are restricted shares and restricted stock units of 0 and 12,753, respectively, which are included in shares outstanding. | ||||||||||||||
Lease_Termination_and_Impairme
Lease Termination and Impairment Charges | 9 Months Ended | |||||||||||||
Nov. 30, 2013 | ||||||||||||||
Lease Termination and Impairment Charges | ' | |||||||||||||
Lease Termination and Impairment Charges | ' | |||||||||||||
3. Lease Termination and Impairment Charges | ||||||||||||||
Lease termination and impairment charges consist of amounts as follows: | ||||||||||||||
Thirteen Week Period Ended | Thirty-Nine Week Period Ended | |||||||||||||
November 30, | December 1, | November 30, | December 1, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Impairment charges | $ | 335 | $ | 339 | $ | 5,201 | $ | 882 | ||||||
Lease termination charges | 1,337 | 14,027 | 18,833 | 33,410 | ||||||||||
$ | 1,672 | $ | 14,366 | $ | 24,034 | $ | 34,292 | |||||||
Impairment Charges | ||||||||||||||
These amounts include the write-down of long-lived assets at locations that were assessed for impairment because of management's intention to relocate or close the location or because of changes in circumstances that indicated the carrying value of an asset may not be recoverable. | ||||||||||||||
Lease Termination Charges | ||||||||||||||
As part of the Company's ongoing business activities, the Company assesses stores and distribution centers for potential closure or relocation. Decisions to close or relocate stores or distribution centers in future periods would result in lease termination charges, lease exit costs and inventory liquidation charges, as well as impairment of assets at these locations. During November 2013, the Company sold its lease rights for one store for a gain of $8,750, which is included as a reduction to lease termination charges and is reflected in the table below as a component of cash payments, net of sublease income. The following table reflects the closed store and distribution center charges that relate to new closures, changes in assumptions and interest accretion: | ||||||||||||||
Thirteen Week Period Ended | Thirty-Nine Week Period Ended | |||||||||||||
November 30, | December 1, | November 30, | December 1, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Balance—beginning of period | $ | 303,637 | $ | 345,271 | $ | 323,758 | $ | 367,865 | ||||||
Provision for present value of noncancellable lease payments of closed stores | 4,522 | 7,270 | 10,896 | 11,522 | ||||||||||
Changes in assumptions about future sublease income, terminations and changes in interest rates | (8,112 | ) | 1,062 | (7,899 | ) | 4,388 | ||||||||
Interest accretion | 5,225 | 5,729 | 16,133 | 17,655 | ||||||||||
Cash payments, net of sublease income | (10,127 | ) | (23,866 | ) | (47,743 | ) | (65,964 | ) | ||||||
Balance—end of period | $ | 295,145 | $ | 335,466 | $ | 295,145 | $ | 335,466 | ||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||
Nov. 30, 2013 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Fair Value Measurements | ' | |||||||||||||
4. Fair Value Measurements | ||||||||||||||
The Company utilizes the three-level valuation hierarchy for the recognition and disclosure of fair value measurements. The categorization of assets and liabilities within this hierarchy is based upon the lowest level of input that is significant to the measurement of fair value. The three levels of the hierarchy consist of the following: | ||||||||||||||
• | ||||||||||||||
Level 1—Inputs to the valuation methodology are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | ||||||||||||||
• | ||||||||||||||
Level 2—Inputs to the valuation methodology are quoted prices for similar assets and liabilities in active markets, quoted prices in markets that are not active or inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the instrument. | ||||||||||||||
• | ||||||||||||||
Level 3—Inputs to the valuation methodology are unobservable inputs based upon management's best estimate of inputs market participants could use in pricing the asset or liability at the measurement date, including assumptions about risk. | ||||||||||||||
Non-Financial Assets Measured on a Non-Recurring Basis | ||||||||||||||
Long-lived non-financial assets are measured at fair value on a nonrecurring basis for purposes of calculating impairment using Level 2 and Level 3 inputs as defined in the fair value hierarchy. The fair value of long-lived assets using Level 2 inputs is determined by evaluating the current economic conditions in the geographic area for similar use assets. The fair value of long-lived assets using Level 3 inputs is determined by estimating the amount and timing of net future cash flows (which are unobservable inputs) 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. During the thirty-nine week period ended November 30, 2013, long-lived assets from continuing operations with a carrying value of $18,587, primarily store assets, were written down to their fair value of $13,386, resulting in an impairment charge of $5,201 of which $335 relates to the thirteen-week period ended November 30, 2013. During the thirty-nine week period ended December 1, 2012, long-lived assets from continuing operations with a carrying value of $2,632, primarily store assets, were written down to their fair value of $1,750, resulting in an impairment charge of $882 of which $339 relates to the thirteen-week period ended December 1, 2012. If our actual future cash flows differ from our projections materially, certain stores that are either not impaired or partially impaired in the current period may be further impaired in future periods. | ||||||||||||||
The following table presents fair values for those assets measured at fair value on a non-recurring basis at November 30, 2013 and December 1, 2012: | ||||||||||||||
Fair Value Measurement Using | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total as of | |||||||||||
November 30, | ||||||||||||||
2013 | ||||||||||||||
Long-lived assets held for use | $ | — | $ | — | $ | 955 | $ | 955 | ||||||
Long-lived assets held for sale | — | 12,431 | — | 12,431 | ||||||||||
Total | $ | — | $ | 12,431 | $ | 955 | $ | 13,386 | ||||||
Level 1 | Level 2 | Level 3 | Total as of | |||||||||||
December 1, | ||||||||||||||
2012 | ||||||||||||||
Long-lived assets held for use | $ | — | $ | 975 | $ | 775 | $ | 1,750 | ||||||
Long-lived assets held for sale | — | — | — | — | ||||||||||
Total | $ | — | $ | 975 | $ | 775 | $ | 1,750 | ||||||
As of November 30, 2013 and December 1, 2012, the Company did not have any financial assets measured on a recurring basis. | ||||||||||||||
Other Financial Instruments | ||||||||||||||
Financial instruments other than long-term indebtedness include cash and cash equivalents, accounts receivable and accounts payable. These instruments are recorded at book value, which we believe approximate their fair values due to their short term nature. | ||||||||||||||
The fair value for LIBOR-based 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 indebtedness are estimated based on quoted market prices of the financial instruments which are considered Level 1 of the fair value hierarchy. The carrying amount and estimated fair value of the Company's total long-term indebtedness was $5,842,694 and $6,211,376, respectively, as of November 30, 2013. There were no outstanding derivative financial instruments as of November 30, 2013 and March 2, 2013. | ||||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Nov. 30, 2013 | |
Income Taxes | ' |
Income Taxes | ' |
5. Income Taxes | |
The Company recorded an income tax expense of $1,388 and $777 for the thirteen week periods ended November 30, 2013 and December 1, 2012, respectively, and an income tax expense of $6,810 and an income tax benefit of $63,818 for the thirty-nine week periods ended November 30, 2013 and December 1, 2012, respectively. The income tax expense or benefit is recorded net of adjustments to maintain a full valuation allowance against the Company's net deferred tax assets. | |
The income tax expense for the thirteen and thirty-nine week periods ended November 30, 2013 is primarily attributable to the accrual of federal, state and local taxes and adjustments to unrecognized tax benefits offset by adjustments to the valuation allowance of $(28,389) and $(63,081), respectively. | |
The income tax expense for the thirteen week period ended December 1, 2012 was primarily attributable to an accrual of federal, state and local taxes and adjustments to unrecognized tax benefits offset by adjustments to the valuation allowance of $(24,717). | |
The income tax benefit for the thirty-nine week period ended December 1, 2012 was primarily attributable to the recognition of previously unrecognized tax benefits resulting from the appellate settlements of the Brooks Eckerd Internal Revenue Service (IRS) Audit of fiscal years 2004 - 2007 as well as the Commonwealth of Massachusetts Audit of fiscal years 2005 - 2007. These amounts were offset by a reversal of the related tax indemnification asset which was recorded in selling, general and administrative expenses as these audits were related to pre-acquisition periods. The accrual of federal, state and local taxes for the thirty-nine week period ended December 1, 2012 included adjustments to the valuation allowance of $18,128. | |
The Company is indemnified by Jean Coutu Group for certain tax liabilities incurred for all years ended up to and including June 4, 2007, related to the June 2007 Brooks Eckerd acquisition. Although the Company is indemnified by Jean Coutu Group, the Company remains the primary obligor to the tax authorities with respect to any tax liability arising for the years prior to the acquisition. Accordingly, as of November 30, 2013 and March 2, 2013 the Company had recoverable indemnification assets of $32,550 and $30,710 from Jean Coutu Group, respectively, included in the 'Other Assets' line of the Consolidated Balance Sheets, to reflect the indemnification for such liabilities. | |
The Company recognizes tax liabilities in accordance with the guidance for uncertain tax positions and management adjusts these liabilities with changes in judgment as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the tax liabilities. | |
Over the next 12 months, the Company believes that it is reasonably possible that the amount of unrecognized tax positions including interest and penalties could decrease tax liabilities by approximately $32,827, which would impact the effective tax rate if the company's tax positions are sustained upon audit or the controlling statute of limitations expires. The primary driver of the decrease is contingent upon the statute of limitations expiring. The corresponding indemnification asset will reverse concurrently in selling, general and administrative expenses. | |
The valuation allowances as of November 30, 2013 and March 2, 2013 apply to the net deferred tax assets of the Company. The Company continues to maintain a full valuation allowance of $2,160,594 and $2,223,675 against net deferred tax assets at November 30, 2013 and March 2, 2013, respectively. | |
Intangible_Assets
Intangible Assets | 9 Months Ended | |||||||||||||||||||
Nov. 30, 2013 | ||||||||||||||||||||
Intangible Assets | ' | |||||||||||||||||||
Intangible Assets | ' | |||||||||||||||||||
6. Intangible Assets | ||||||||||||||||||||
The Company's intangible assets are finite-lived and amortized over their useful lives. Following is a summary of the Company's amortizable intangible assets as of November 30, 2013 and March 2, 2013. | ||||||||||||||||||||
November 30, 2013 | March 2, 2013 | |||||||||||||||||||
Gross | Accumulated | Remaining | Gross | Accumulated | Remaining | |||||||||||||||
Carrying | Amortization | Weighted | Carrying | Amortization | Weighted | |||||||||||||||
Amount | Average | Amount | Average | |||||||||||||||||
Amortization | Amortization | |||||||||||||||||||
Period | Period | |||||||||||||||||||
Favorable leases and other | $ | 635,095 | $ | (441,542 | ) | 9 years | $ | 623,541 | $ | (413,556 | ) | 10 years | ||||||||
Prescription files | 1,333,771 | (1,089,043 | ) | 4 years | 1,286,087 | (1,031,668 | ) | 4 years | ||||||||||||
Total | $ | 1,968,866 | $ | (1,530,585 | ) | $ | 1,909,628 | $ | (1,445,224 | ) | ||||||||||
Also included in other non-current liabilities as of November 30, 2013 and March 2, 2013 are unfavorable lease intangibles with a net carrying amount of $64,522 and $70,195, respectively. These intangible liabilities are amortized over their remaining lease terms. | ||||||||||||||||||||
Amortization expense for these intangible assets and liabilities was $28,961 and $89,767 for the thirteen and thirty-nine week periods ended November 30, 2013, respectively. Amortization expense for these intangible assets and liabilities was $31,143 and $95,972 for the thirteen and thirty-nine week periods ended December 1, 2012, respectively. The anticipated annual amortization expense for these intangible assets and liabilities is 2014—$111,702; 2015—$100,399; 2016—$88,857; 2017—$75,596 and 2018—$37,687. | ||||||||||||||||||||
Indebtedness_and_Credit_Agreem
Indebtedness and Credit Agreements | 9 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Indebtedness and Credit Agreements | ' | |||||||
Indebtedness and Credit Agreements | ' | |||||||
7. Indebtedness and Credit Agreements | ||||||||
Following is a summary of indebtedness and lease financing obligations at November 30, 2013 and March 2, 2013: | ||||||||
November 30, | March 2, | |||||||
2013 | 2013 | |||||||
Secured Debt: | ||||||||
Senior secured revolving credit facility due February 2018 | $ | 590,000 | $ | 665,000 | ||||
Tranche 6 Term Loan due February 2020 | 1,155,195 | 1,161,000 | ||||||
7.5% senior secured notes (second lien) due March 2017 | — | 500,000 | ||||||
10.25% senior secured notes (second lien) due October 2019 ($270,000 face value less unamortized discount of $1,211 and $1,364) | 268,789 | 268,636 | ||||||
8.00% senior secured notes (senior lien) due August 2020 | 650,000 | 650,000 | ||||||
Tranche 1 Term Loan (second lien) due August 2020 | 470,000 | 470,000 | ||||||
Tranche 2 Term Loan (second lien) due June 2021 | 500,000 | — | ||||||
Other secured | 5,267 | 5,298 | ||||||
3,639,251 | 3,719,934 | |||||||
Guaranteed Unsecured Debt: | ||||||||
9.5% senior notes due June 2017 ($810,000 face value less unamortized discount of $5,529) | — | 804,471 | ||||||
9.25% senior notes due March 2020 ($902,000 face value plus unamortized premium of $4,255 and $4,759) | 906,255 | 906,759 | ||||||
6.75% senior notes due June 2021 | 810,000 | — | ||||||
1,716,255 | 1,711,230 | |||||||
Unguaranteed Unsecured Debt: | ||||||||
8.5% convertible notes due May 2015 | 64,188 | 64,188 | ||||||
7.7% notes due February 2027 | 295,000 | 295,000 | ||||||
6.875% fixed-rate senior notes due December 2028 | 128,000 | 128,000 | ||||||
487,188 | 487,188 | |||||||
Lease financing obligations | 109,732 | 115,179 | ||||||
Total debt | 5,952,426 | 6,033,531 | ||||||
Current maturities of long-term debt and lease financing obligations | (47,753 | ) | (37,311 | ) | ||||
Long-term debt and lease financing obligations, less current maturities | $ | 5,904,673 | $ | 5,996,220 | ||||
Credit Facility | ||||||||
The Company has a senior secured credit facility that consists of a $1,795,000 revolving credit facility and a $1,155,195 senior secured term loan (the "Tranche 6 Term Loan"). Borrowings under the revolving credit facility bear interest at a rate per annum between LIBOR plus 2.25% and LIBOR plus 2.75%, if the Company chooses to make LIBOR borrowings, or between Citibank's base rate plus 1.25% and Citibank's base rate plus 1.75% in each case based upon the amount of revolver availability as defined in the senior secured credit facility. The Company is required to pay fees between 0.375% and 0.50% per annum on the daily unused amount of the revolver, depending on the amount of revolver availability. Amounts drawn under the revolver become due and payable on February 21, 2018. The Tranche 6 Term Loan matures on February 21, 2020 and currently bears interest at a rate per annum equal to LIBOR plus 3.00%, if the Company chooses to make LIBOR borrowings, or at Citibank's base rate plus 2.00%. The Tranche 6 Term Loan is subject to a 1.00% LIBOR floor per annum. | ||||||||
The Company's ability to borrow under the revolver is based upon a specified borrowing base consisting of accounts receivable, inventory and prescription files. At November 30, 2013, the Company had $590,000 of borrowings outstanding under the revolver and had letters of credit outstanding against the revolver of $87,949, which resulted in additional borrowing capacity of $1,117,051. | ||||||||
The senior secured credit facility contains certain restrictions on the ability of the Company and the subsidiary guarantors to accumulate cash on hand, and under certain circumstances, requires the funds in the Company's deposit accounts to be applied first to the repayment of outstanding revolving loans under the senior secured credit facility and then to be held as collateral for the senior obligations. | ||||||||
The senior credit facility restricts the amount of secured and unsecured debt the Company may have outstanding. The senior secured credit facility allows the Company to incur an unlimited amount of unsecured debt with a maturity beyond May 21, 2020. However, the Company's second priority secured term loan facilities and the indentures that govern the Company's secured and guaranteed unsecured notes contain restrictions on the amount of additional secured and unsecured debt that can be incurred by the Company. Pursuant to certain of the Company's existing indentures, the Company could not incur any additional secured debt assuming a fully drawn revolver and the outstanding letters of credit. The ability to issue additional unsecured debt under the second priority secured term loan facilities and the indentures is generally governed by an interest coverage ratio test. As of November 30, 2013, the Company had the ability to issue additional unsecured debt under the second lien credit facilities and other indentures. | ||||||||
The senior secured credit facility contains additional covenants which place restrictions on the incurrence of debt, the payments of dividends, sale of assets, mergers and acquisitions and the granting of liens. The credit facility has a financial covenant, which is the maintenance of a fixed charge coverage ratio. The covenant requires that, if availability on the revolving credit facility is less than $150,000, the Company must maintain a minimum fixed charge coverage ratio of 1.00 to 1.00. As of November 30, 2013, availability under the revolving credit facility was in excess of $150,000 and, therefore, the financial covenant was not applicable. The senior secured credit facility also provides for customary events of default. | ||||||||
The Company also has a second priority secured term loan facility, which includes a $470,000 second priority secured term loan (the "Tranche 1 Term Loan"). The Tranche 1 Term Loan matures on August 21, 2020 and currently bears interest at a rate per annum equal to LIBOR plus 4.75%, if the Company chooses to make LIBOR borrowings, or at Citibank's base rate plus 3.75%. The Tranche 1 Term Loan is subject to a 1.00% LIBOR floor per annum. | ||||||||
On June 21, 2013, the Company entered into a new second priority secured term loan facility, which includes a $500,000 second priority secured term loan (the "Tranche 2 Term Loan"). The Tranche 2 Term Loan matures on June 21, 2021 and currently bears interest at a rate per annum equal to LIBOR plus 3.875% with a LIBOR floor of 1.00%, if the Company chooses to make LIBOR borrowings, or at Citibank's base rate plus 2.875%. | ||||||||
Substantially all of Rite Aid Corporation's 100 percent owned subsidiaries guarantee the obligations under the senior secured credit facility, second priority secured term loan facilities, secured guaranteed notes and unsecured guaranteed notes. The senior secured credit facility, second priority secured term loan facilities and secured guaranteed notes are secured, on a senior or second priority basis, as applicable, by a lien on, among other things, accounts receivable, inventory and prescription files of the subsidiary guarantors. The subsidiary guarantees related to the Company's senior secured credit facility, second priority secured term loan facilities and secured guaranteed notes and, on an unsecured basis, the unsecured guaranteed notes are full and unconditional and joint and several, and there are no restrictions on the ability of the Company to obtain funds from its subsidiaries. Also, the Company has no independent assets or operations, and subsidiaries not guaranteeing the credit facility, second priority secured term loan facilities and applicable notes are minor. Accordingly, condensed consolidating financial information for the Company and subsidiaries is not presented. | ||||||||
Other Transactions | ||||||||
In June 2013, the Company completed a tender offer for its 7.5% senior secured notes due 2017 in which $419,237 aggregate principal amount of the outstanding 7.5% notes were tendered and repurchased. In July 2013, the Company redeemed the remaining 7.5% notes for $85,154, which included the call premium and interest to the redemption date. The tender offer for, and redemption of, the 7.5% notes were funded using the proceeds from the Tranche 2 Term Loan, borrowings under the Company's revolving credit facility and available cash. | ||||||||
On July 2, 2013, the Company issued $810,000 of its 6.75% senior notes due 2021. The Company's obligations under the notes are fully and unconditionally guaranteed, jointly and severally, on an unsubordinated basis, by all of its subsidiaries that guarantee the Company's obligations under the senior secured credit facility, the second priority secured term loan facilities and the outstanding 8.00% senior secured notes due 2020, 10.25% senior secured notes due 2019 and 9.25% senior notes due 2020. The Company used the net proceeds of the 6.75% notes, borrowings under its revolving credit facility and available cash to repurchase and repay all of the Company's outstanding $810,000 aggregate principal of 9.5% senior notes due 2017. | ||||||||
In July 2013, the Company completed a tender offer for its 9.5% notes in which $739,642 aggregate principal amount of the outstanding 9.5% notes were tendered and repurchased. In August 2013, the Company redeemed the remaining 9.5% notes for $73,440, which included the call premium and interest to the redemption date. | ||||||||
In connection with these refinancing transactions, the Company recorded a loss on debt retirement, including tender and call premium and interest, unamortized debt issue costs and unamortized discount of $62,172. | ||||||||
As of March 2, 2013, Rite Aid Lease Management Company, a 100 percent owned subsidiary of the Company, had 213,000 shares of its Cumulative Preferred Stock, Class A, par value $100 per share ("RALMCO Cumulative Preferred Stock"), outstanding. The carrying amount of the RALMCO Cumulative Preferred Stock as of November 29, 2013 was $20,763 and was recorded in Other Noncurrent Liabilities. On November 29, 2013, the Company repurchased all of the outstanding RALMCO Cumulative Preferred Stock for $21,034. In connection with this transaction, the Company recorded a loss on debt retirement of $271. | ||||||||
Maturities | ||||||||
The aggregate annual principal payments of long-term debt for the remainder of fiscal 2014 and thereafter are as follows: 2014—$8,170; 2015—$11,610; 2016—$75,798; 2017—$11,610; 2018—$601,610 and $5,130,852 thereafter. | ||||||||
Stock_Options_and_Stock_Awards
Stock Options and Stock Awards | 9 Months Ended | |||||||||||||
Nov. 30, 2013 | ||||||||||||||
Stock Options and Stock Awards | ' | |||||||||||||
Stock Options and Stock Awards | ' | |||||||||||||
8. Stock Options and Stock Awards | ||||||||||||||
The Company recognizes share-based compensation expense over the requisite service period of the award, net of an estimate for the impact of forfeitures. Operating results for the thirty-nine week periods ended November 30, 2013 and December 1, 2012 include $12,194 and $12,872, respectively, of compensation costs related to the Company's stock-based compensation arrangements. | ||||||||||||||
The total number and type of newly awarded grants and the related weighted average fair value for the thirty-nine week periods ended November 30, 2013 and December 1, 2012 are as follows: | ||||||||||||||
November 30, 2013 | December 1, 2012 | |||||||||||||
Shares | Weighted | Shares | Weighted | |||||||||||
Average | Average | |||||||||||||
Fair Value | Fair Value | |||||||||||||
Stock options granted | 4,828 | $ | 1.91 | 12,020 | $ | 0.91 | ||||||||
Stock awards granted | 2,743 | $ | 2.79 | 5,450 | $ | 1.31 | ||||||||
Total awards | 7,571 | 17,470 | ||||||||||||
Typically, stock options granted vest, and are subsequently exercisable in equal annual installments over a four-year period for employees. Stock awards granted to non-employee directors vest 80% in year one, 10% in year two and 10% in year three. | ||||||||||||||
The Company calculates the fair value of stock options using the Black- Scholes-Merton option pricing model. The following assumptions were used in the Black-Scholes-Merton option pricing model: | ||||||||||||||
Thirty-Nine Week Period | ||||||||||||||
Ended | ||||||||||||||
November 30, | December 1, | |||||||||||||
2013 | 2012 | |||||||||||||
Expected stock price volatility | 85 | % | 85 | % | ||||||||||
Expected dividend yield | 0 | % | 0 | % | ||||||||||
Risk-free interest rate | 1.4 | % | 0.7 | % | ||||||||||
Expected option life | 5.5 years | 5.5 years | ||||||||||||
As of November 30, 2013, the total unrecognized pre-tax compensation costs related to unvested stock options and restricted stock grants, net of estimated forfeitures and the weighted average period of cost amortization are as follows: | ||||||||||||||
November 30, 2013 | ||||||||||||||
Unvested | Unvested | |||||||||||||
stock | restricted | |||||||||||||
options | stock | |||||||||||||
Unrecognized pre-tax costs | $ | 17,625 | $ | 10,913 | ||||||||||
Weighted average amortization period | 2.5 years | 2.0 years |
Reclassifications_from_Accumul
Reclassifications from Accumulated Other Comprehensive Loss | 9 Months Ended | |||||||||||||||||||||||||
Nov. 30, 2013 | ||||||||||||||||||||||||||
Reclassifications from Accumulated Other Comprehensive Loss | ' | |||||||||||||||||||||||||
Reclassifications from Accumulated Other Comprehensive Loss | ' | |||||||||||||||||||||||||
9. Reclassifications from Accumulated Other Comprehensive Loss | ||||||||||||||||||||||||||
The following table summarizes the components of accumulated other comprehensive loss and the changes in balances of each component of accumulated other comprehensive loss, net of tax as applicable, for the thirteen and thirty-nine week periods ended November 30, 2013 and December 1, 2012: | ||||||||||||||||||||||||||
Thirteen week period | Thirteen Week Period | Thirty-Nine Week | Thirty-Nine Week | |||||||||||||||||||||||
ended November 30, | Ended December 1,2012 | Period Ended | Period Ended | |||||||||||||||||||||||
2013 | November 30, 2013 | December 1,2012 | ||||||||||||||||||||||||
Defined | Accumulated | Defined | Accumulated | Defined | Accumulated | Defined | Accumulated | |||||||||||||||||||
benefit | other | benefit | other | benefit | other | benefit | other | |||||||||||||||||||
pension | comprehensive | pension | comprehensive | pension | comprehensive | pension | comprehensive | |||||||||||||||||||
plans | loss | plans | loss | plans | loss | plans | loss | |||||||||||||||||||
Accumulated other comprehensive loss | ||||||||||||||||||||||||||
Balance-beginning of period | $ | (58,844 | ) | $ | (58,844 | ) | $ | (50,595 | ) | $ | (50,595 | ) | $ | (61,369 | ) | $ | (61,369 | ) | $ | (52,634 | ) | $ | (52,634 | ) | ||
Amounts reclassified from accumulated other comprehensive loss to net income (loss) | 1,263 | 1,263 | 1,020 | 1,020 | 3,788 | 3,788 | 3,059 | 3,059 | ||||||||||||||||||
Balance-end of period | $ | (57,581 | ) | $ | (57,581 | ) | $ | (49,575 | ) | $ | (49,575 | ) | $ | (57,581 | ) | $ | (57,581 | ) | $ | (49,575 | ) | $ | (49,575 | ) | ||
The following table summarizes the effects on net income (loss) of significant amounts classified out of each component of accumulated other comprehensive loss for the thirteen and thirty-nine week periods ended November 30, 2013 and December 1, 2012: | ||||||||||||||||||||||||||
Thirteen Week Periods Ended November 30, 2013 and December 1, 2012 | ||||||||||||||||||||||||||
Amount reclassified from | ||||||||||||||||||||||||||
accumulated other | ||||||||||||||||||||||||||
comprehensive loss | ||||||||||||||||||||||||||
Details about accumulated other comprehensive loss components | November 30, | December 1, | Affected line item in the condensed | |||||||||||||||||||||||
2013 | 2012 | consolidated statements of operations | ||||||||||||||||||||||||
Defined benefit pension plans | ||||||||||||||||||||||||||
Amortization of unrecognized prior service cost(a) | $ | (60 | ) | $ | (60 | ) | Selling, general and administrative expenses | |||||||||||||||||||
Amortization of unrecognized net loss(a) | (1,203 | ) | (960 | ) | Selling, general and administrative expenses | |||||||||||||||||||||
(1,263 | ) | (1,020 | ) | Total before income tax expense | ||||||||||||||||||||||
— | — | Income tax expense(b) | ||||||||||||||||||||||||
$ | (1,263 | ) | $ | (1,020 | ) | Net of income tax expense | ||||||||||||||||||||
Thirty-Nine Week Periods Ended November 30, 2013 and December 1, 2012 | ||||||||||||||||||||||||||
Amount reclassified from | ||||||||||||||||||||||||||
accumulated other | ||||||||||||||||||||||||||
comprehensive loss | ||||||||||||||||||||||||||
Details about accumulated other comprehensive loss components | November 30, | December 1, | Affected line item in the condensed | |||||||||||||||||||||||
2013 | 2012 | consolidated statements of operations | ||||||||||||||||||||||||
Defined benefit pension plans | ||||||||||||||||||||||||||
Amortization of unrecognized prior service cost(a) | $ | (180 | ) | $ | (180 | ) | Selling, general and administrative expenses | |||||||||||||||||||
Amortization of unrecognized net loss(a) | (3,608 | ) | (2,879 | ) | Selling, general and administrative expenses | |||||||||||||||||||||
(3,788 | ) | (3,059 | ) | Total before income tax expense | ||||||||||||||||||||||
— | — | Income tax expense(b) | ||||||||||||||||||||||||
$ | (3,788 | ) | $ | (3,059 | ) | Net of income tax expense | ||||||||||||||||||||
(a)—See Note 10, Retirement Plans for additional details. | ||||||||||||||||||||||||||
(b)—Income tax expense is $0 due to the valuation allowance. See Note 5, Income Taxes for additional details. | ||||||||||||||||||||||||||
Retirement_Plans
Retirement Plans | 9 Months Ended | |||||||||||||||||||||||||
Nov. 30, 2013 | ||||||||||||||||||||||||||
Retirement Plans | ' | |||||||||||||||||||||||||
Retirement Plans | ' | |||||||||||||||||||||||||
10. Retirement Plans | ||||||||||||||||||||||||||
Net periodic pension expense recorded in the thirteen and thirty-nine week periods ended November 30, 2013 and December 1, 2012, for the Company's defined benefit plans includes the following components: | ||||||||||||||||||||||||||
Defined Benefit Pension | Nonqualified Executive | Defined Benefit Pension | Nonqualified Executive | |||||||||||||||||||||||
Plan | Retirement Plans | Plan | Retirement Plans | |||||||||||||||||||||||
Thirteen Week Period Ended | Thirty-Nine Week Period Ended | |||||||||||||||||||||||||
November 30, | December 1, | November 30, | December 1, | November 30, | December 1, | November 30, | December 1, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 830 | $ | 868 | $ | — | $ | — | $ | 2,490 | $ | 2,603 | $ | — | $ | — | ||||||||||
Interest cost | 1,551 | 1,566 | 136 | 154 | 4,653 | 4,697 | 407 | 462 | ||||||||||||||||||
Expected return on plan assets | (1,780 | ) | (1,749 | ) | — | — | (5,338 | ) | (5,246 | ) | — | — | ||||||||||||||
Amortization of unrecognized prior service cost | 60 | 60 | — | — | 180 | 180 | — | — | ||||||||||||||||||
Amortization of unrecognized net loss | 1,203 | 960 | — | — | 3,608 | 2,879 | — | — | ||||||||||||||||||
Net pension expense | $ | 1,864 | $ | 1,705 | $ | 136 | $ | 154 | $ | 5,593 | $ | 5,113 | $ | 407 | $ | 462 | ||||||||||
During the thirteen and thirty-nine week periods ended November 30, 2013 the Company contributed $402 and $1,220, respectively, to the Nonqualified Executive Retirement Plans. During the remainder of fiscal 2014, the Company expects to contribute $435 to the Nonqualified Executive Retirement Plans and $8,000 to the Defined Benefit Pension Plan. | ||||||||||||||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Nov. 30, 2013 | |
Commitments and Contingencies. | ' |
Commitments and Contingencies | ' |
11. Commitments and Contingencies | |
Legal Matters | |
The Company is a party to legal proceedings, investigations and claims in the ordinary course of its business, including the matters described below. The Company records accruals for outstanding legal matters when it believes it is probable that a loss will be incurred and the amount can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal matters that could affect the amount of any accrual and developments that would make a loss contingency both probable and reasonably estimable. If a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. | |
The Company's contingencies are subject to significant uncertainties, including, among other factors: (i) proceedings are in early stages; (ii) whether class or collective action status is sought and the likelihood of a class being certified; (iii) the outcome of pending appeals or motions; (iv) the extent of potential damages, fines or penalties, which are often unspecified or indeterminate; (v) the impact of discovery on the matter; (vi) whether novel or unsettled legal theories are at issue; (vii) there are significant factual issues to be resolved; and/or (viii) in the case of certain government agency investigations, whether a sealed qui tam lawsuit ("whistleblower" action) has been filed and whether the government agency makes a decision to intervene in the lawsuit following investigation. | |
The Company has been named in a collective and class action lawsuit, Indergit v. 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 overtime to store managers as required under the FLSA and under certain New York state statutes. The lawsuit also seeks other relief, including liquidated damages, punitive damages, attorneys' fees, costs and injunctive relief arising out of state and federal claims for overtime pay. On April 2, 2010, the Court conditionally certified a nationwide collective group of individuals who worked for the Company as store managers since March 31, 2007. The Court ordered that Notice of the Indergit action be sent to the purported members of the collective group (approximately 7,000 current and former store managers) and approximately 1,550 joined the Indergit action. Discovery as to certification issues has been completed. On September 26, 2013, the Court granted Rule 23 class certification of the New York store manager claims as to liability only, but denied it as to damages, and denied the Company's motion for decertification of the nationwide collective action claims. The Company has filed a motion seeking reconsideration of the Court's September 26, 2013 decision and briefing on that motion is complete and awaiting a ruling. Once approved by the Court, notice of the Rule 23 class certification as to liability only will be sent to approximately 1,750 current and former store managers in the state of New York. At this time, the Company is not able to either predict the outcome of this lawsuit or estimate a potential range of loss with respect to the lawsuit. The Company's management believes, however, that this lawsuit is without merit and not appropriate for collective or class action treatment and is vigorously defending this lawsuit. | |
The Company is currently a defendant in several putative class action lawsuits filed in state courts in California alleging violations of California wage and hour laws, rules and regulations pertaining primarily to failure to pay overtime, pay for missed meals and rest periods and failure to provide employee seating. These suits purport to be class actions and seek substantial damages. At this time, the Company is not able to either predict the outcome of these lawsuits or estimate a potential range of loss with respect to the lawsuits. The Company's management believes, however, that the plaintiffs' allegations are without merit and that their claims are not appropriate for class action treatment. The Company is vigorously defending all of these claims. | |
The Company was served with a United States Department of Health and Human Services Office of the Inspector General ("OIG") subpoena dated March 5, 2010 in connection with an investigation being conducted by the OIG and the United States Attorney's Office for the Central District of California. The subpoena requests records related to any gift card inducement programs for customers who transferred prescriptions for drugs or medicines to the Company's pharmacies, and whether any customers who receive federally funded prescription benefits (e.g. Medicare and Medicaid) may have benefited from those programs. The Company has substantially completed its production of records in response to the subpoena. In June 2013, the government contacted the Company, and the Company is involved in ongoing discussions with the government regarding the matter. | |
The Company received a subpoena dated May 9, 2011 from certain California counties seeking information regarding compliance with environmental regulations governing the management of hazardous waste. The Company cooperated fully in this matter with California regulators and has reached a settlement resolving potential claims on a statewide basis. A proposed final judgment negotiated by the parties was filed in the Superior Court of San Joaquin County and approved by the Court on September 24, 2013. As part of this settlement, the Company paid civil penalties, supplemental environmental project payments and costs aggregating $12.3 million, and has consented to injunctive provisions regarding future compliance with California hazardous materials laws. The aggregate payment with respect to the civil penalties, supplemental environmental projects and cost reimbursement had been previously accrued, will not impact the Company's current fiscal year results of operations and will not be material to the Company's financial condition. | |
The Company was served with a Civil Investigative Demand Subpoena Duces Tecum dated August 26, 2011 by the United States Attorney's Office for the Eastern District of Michigan. The subpoena requests records regarding Rite Aid's Rx Savings Program and the reporting of usual and customary charges to publicly funded health programs. In connection with the same investigation, the Company was served with a Civil Subpoena Duces Tecum dated February 22, 2013 by the State of Indiana Office of the Attorney General. The Company has substantially completed its response to both of the subpoenas and is unable to predict the timing or outcome of any review by the government of such information. | |
In April 2012, the Company received an administrative subpoena from the Drug Enforcement Administration ("DEA"), Albany, New York District Office, requesting information regarding the Company's sale of products containing pseudoephedrine ("PSE"). In April 2012, it also received a communication from the United States Attorneys Office ("USAO") for the Northern District of New York concerning an investigation of possible civil violations of the Combat Methamphetamine Epidemic Act of 2005 ("CMEA"). In April 2013, the Company received additional administrative subpoenas from DEA concerning certain retail PSE transactions at New York stores and the USAO commenced discussions with the Company regarding whether, from 2009 (upon implementation of an electronic PSE transaction logbook system) through the present, the Company sold products containing PSE in violation of the CMEA. Violations of the CMEA could result in the imposition of administrative, civil and/or criminal penalties against the Company. The Company is cooperating with the government and has provided information responsive to the subpoenas. | |
The Company received an additional administrative subpoena from the DEA in December 2013 requesting information in connection with an investigation of violations of the CMEA in West Virginia. | |
In January 2013, the 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 certain controlled substance prescriptions for a number of practitioners after their DEA registrations had expired or otherwise become invalid in violation of the federal Controlled Substances Act and DEA regulations. The Company responded to the administrative subpoena and subsequent informal requests for information from the USAO. The Company is cooperating with the government's investigation. | |
The Company cannot predict the timing or outcome of any of the aforementioned reviews by the DEA or the USAO of any such information. | |
The Company was served with a Civil Investigative Demand dated June 21, 2013 by the USAO for the Eastern District of California. The CID requests records and responses to interrogatories regarding Rite Aid's Drug Utilization Review and prescription dispensing protocol and the dispensing of drugs designated "Code 1" by the State of California. The Company is in the process of producing responsive documents and interrogatory responses and is unable to predict the timing or outcome of any review by the government of such information. | |
In addition to the above described matters, the Company is subject from time to time to various claims and lawsuits and governmental investigations arising in the ordinary course of business. While the Company's management cannot predict the outcome of any of the claims, the Company's management does not believe that the outcome of any of these legal matters will be material to the Company's consolidated financial position. It is possible, however, that the Company's results of operations or cash flows in a particular fiscal period 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 for administering the State of California Medicaid program, implemented retroactive reimbursement rate reductions effective June 1, 2011, impacting the medical provider community in California, including pharmacies. Numerous medical providers, including representatives of both chain and independent pharmacies, filed suits against DHCS in federal district court in California and obtained preliminary injunctions against the rate cuts, subject to a trial on the merits. DHCS appealed the preliminary injunctions to the Ninth Circuit Court of Appeals, which Court vacated the injunctions. Based upon the actions of DHCS and the decision of the appeals court, the Company has recorded an appropriate accrual. As pertinent facts and circumstances develop, this accrual may be adjusted. | |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Nov. 30, 2013 | |
Related Party Transactions | ' |
Related Party Transactions | ' |
12. Related Party Transactions | |
On July 22, 2013, the Jean Coutu Group announced that it had sold all of its 65,401,162 shares of Rite Aid's common stock. As a result of this sale, the Jean Coutu Group was required to cause its last designee to resign from Rite Aid's board of directors and, accordingly, Francois J. Coutu resigned from Rite Aid's board of directors effective November 8, 2013. | |
On September 26, 2013, the Company agreed to exchange eight shares of 7% Series G Convertible Preferred Stock (the "Series G preferred stock") and 1,876,013 shares of 6% Series H Convertible Preferred Stock (the "Series H preferred stock", collectively the "Preferred Stock") of the Company (the "Exchange"), held by Green Equity Investors III, L.P. ("LGP") for 40,000,000 shares of the Company's common stock, par value $1.00 per share, with a market value of $190,400 at the $4.76 per share closing price on the Settlement Date (as hereinafter defined), pursuant to an individually negotiated exchange transaction. The Exchange settled on September 30, 2013 (the "Settlement Date"). The Preferred Stock, including additional shares representing 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 flow or new debt to effect the redemption of the Preferred Stock. Following the Settlement Date, no shares of the Series G preferred stock or Series H preferred stock remained outstanding and the Company's restated certificate of incorporation was amended to eliminate all references to the Series G preferred stock and Series H preferred stock. In accordance with the terms of the Exchange, John M. Baumer, a member of the board of directors of the Company and a limited partner of Leonard Green & Partners, L.P., an affiliate of the LGP, resigned from the Company's board of directors. | |
The Series G preferred stock had a liquidation preference of $100 per share and paid quarterly dividends in additional shares at 7% of liquidation preference and could be redeemed at the Company's election. The Series H preferred stock paid quarterly dividends in additional shares at 6% of liquidation preference and could be redeemed at the Company's election. The Series G preferred stock and Series H preferred stock were convertible into common stock of the Company, at the holder's option, at a conversion rate of $5.50 per share. | |
As of the Settlement Date, LGP held 1,904,161 shares of Series G preferred stock and Series H preferred stock, which included 28,140 shares of earned and unpaid dividends. The Series G preferred stock and Series H preferred stock would have converted into 34,621,117 shares of common stock at the contracted conversion rate of $5.50 per share. Accordingly, income attributable to common stockholders is reduced by $25,603, or $0.03 per diluted share, the value of the additional 5,378,883 shares of common stock issued upon conversion at the $4.76 per share closing price on the Settlement Date. | |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Nov. 30, 2013 | |
Basis of Presentation | ' |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | |
In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit when a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU No. 2013-11 requires an entity to present unrecognized tax benefits as a reduction to deferred tax assets when a net operating loss carryforward, similar tax loss or a tax credit carryforward exists, with limited exceptions. ASU No. 2013-11 is effective for fiscal years beginning on or after December 15, 2013, and for interim periods within those fiscal years. This pronouncement will have no effect on the financial statements as the Company has historically presented uncertain tax positions in accordance with ASU No. 2013-11. | |
Income_Loss_Per_Share_Tables
Income (Loss) Per Share (Tables) | 9 Months Ended | |||||||||||||
Nov. 30, 2013 | ||||||||||||||
Income (Loss) Per Share | ' | |||||||||||||
Schedule of calculation of basic and diluted income (loss) per share | ' | |||||||||||||
Thirteen Week Period Ended | Thirty-Nine Week Period Ended | |||||||||||||
November 30, | December 1, | November 30, | December 1, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Numerator for income (loss) per share: | ||||||||||||||
Net income (loss) | $ | 71,548 | $ | 61,871 | $ | 194,037 | $ | (4,982 | ) | |||||
Accretion of redeemable preferred stock | (26 | ) | (26 | ) | (77 | ) | (77 | ) | ||||||
Cumulative preferred stock dividends | (2,814 | ) | (2,651 | ) | (8,318 | ) | (7,837 | ) | ||||||
Conversion of Series G and H preferred stock | (25,603 | ) | — | (25,603 | ) | — | ||||||||
Income (loss) attributable to common stockholders—basic | $ | 43,105 | $ | 59,194 | $ | 160,039 | $ | (12,896 | ) | |||||
Add back—interest on convertible notes | — | 1,334 | — | — | ||||||||||
Income (loss) attributable to common stockholders—diluted | $ | 43,105 | $ | 60,528 | $ | 160,039 | $ | (12,896 | ) | |||||
Denominator: | ||||||||||||||
Basic weighted average shares | 938,994 | 891,031 | 911,608 | 889,187 | ||||||||||
Outstanding options and restricted shares, net | 48,843 | 1,977 | 41,227 | — | ||||||||||
Convertible notes | — | 24,800 | — | — | ||||||||||
Diluted weighted average shares | 987,837 | 917,808 | 952,835 | 889,187 | ||||||||||
Basic income (loss) per share | $ | 0.05 | $ | 0.07 | $ | 0.18 | $ | (0.01 | ) | |||||
Diluted income (loss) per share | $ | 0.04 | $ | 0.07 | $ | 0.17 | $ | (0.01 | ) | |||||
Schedule of antidilutive effect of potential common shares, excluded from computation of diluted income (loss) per share | ' | |||||||||||||
Thirteen Week Period Ended | Thirty-Nine Week Period Ended | |||||||||||||
November 30, | December 1, | November 30, | December 1, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Stock options | 23,564 | 70,868 | 32,433 | 83,169 | ||||||||||
Convertible notes | 24,800 | — | 24,800 | 24,800 | ||||||||||
Convertible preferred stock | — | 32,619 | — | 32,619 | ||||||||||
48,364 | 103,487 | 57,233 | 140,588 | |||||||||||
Lease_Termination_and_Impairme1
Lease Termination and Impairment Charges (Tables) | 9 Months Ended | |||||||||||||
Nov. 30, 2013 | ||||||||||||||
Lease Termination and Impairment Charges | ' | |||||||||||||
Schedule of amounts relating to lease termination and impairment charges | ' | |||||||||||||
Thirteen Week Period Ended | Thirty-Nine Week Period Ended | |||||||||||||
November 30, | December 1, | November 30, | December 1, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Impairment charges | $ | 335 | $ | 339 | $ | 5,201 | $ | 882 | ||||||
Lease termination charges | 1,337 | 14,027 | 18,833 | 33,410 | ||||||||||
$ | 1,672 | $ | 14,366 | $ | 24,034 | $ | 34,292 | |||||||
Schedule of closed store and distribution center charges related to new closures, changes in assumptions and interest accretion | ' | |||||||||||||
Thirteen Week Period Ended | Thirty-Nine Week Period Ended | |||||||||||||
November 30, | December 1, | November 30, | December 1, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Balance—beginning of period | $ | 303,637 | $ | 345,271 | $ | 323,758 | $ | 367,865 | ||||||
Provision for present value of noncancellable lease payments of closed stores | 4,522 | 7,270 | 10,896 | 11,522 | ||||||||||
Changes in assumptions about future sublease income, terminations and changes in interest rates | (8,112 | ) | 1,062 | (7,899 | ) | 4,388 | ||||||||
Interest accretion | 5,225 | 5,729 | 16,133 | 17,655 | ||||||||||
Cash payments, net of sublease income | (10,127 | ) | (23,866 | ) | (47,743 | ) | (65,964 | ) | ||||||
Balance—end of period | $ | 295,145 | $ | 335,466 | $ | 295,145 | $ | 335,466 | ||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||
Nov. 30, 2013 | ||||||||||||||
Fair Value Measurements | ' | |||||||||||||
Schedule of fair value of assets measured on non-recurring basis | ' | |||||||||||||
Fair Value Measurement Using | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total as of | |||||||||||
November 30, | ||||||||||||||
2013 | ||||||||||||||
Long-lived assets held for use | $ | — | $ | — | $ | 955 | $ | 955 | ||||||
Long-lived assets held for sale | — | 12,431 | — | 12,431 | ||||||||||
Total | $ | — | $ | 12,431 | $ | 955 | $ | 13,386 | ||||||
Level 1 | Level 2 | Level 3 | Total as of | |||||||||||
December 1, | ||||||||||||||
2012 | ||||||||||||||
Long-lived assets held for use | $ | — | $ | 975 | $ | 775 | $ | 1,750 | ||||||
Long-lived assets held for sale | — | — | — | — | ||||||||||
Total | $ | — | $ | 975 | $ | 775 | $ | 1,750 | ||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | |||||||||||||||||||
Nov. 30, 2013 | ||||||||||||||||||||
Intangible Assets | ' | |||||||||||||||||||
Summary of the Company's amortizable intangible assets | ' | |||||||||||||||||||
November 30, 2013 | March 2, 2013 | |||||||||||||||||||
Gross | Accumulated | Remaining | Gross | Accumulated | Remaining | |||||||||||||||
Carrying | Amortization | Weighted | Carrying | Amortization | Weighted | |||||||||||||||
Amount | Average | Amount | Average | |||||||||||||||||
Amortization | Amortization | |||||||||||||||||||
Period | Period | |||||||||||||||||||
Favorable leases and other | $ | 635,095 | $ | (441,542 | ) | 9 years | $ | 623,541 | $ | (413,556 | ) | 10 years | ||||||||
Prescription files | 1,333,771 | (1,089,043 | ) | 4 years | 1,286,087 | (1,031,668 | ) | 4 years | ||||||||||||
Total | $ | 1,968,866 | $ | (1,530,585 | ) | $ | 1,909,628 | $ | (1,445,224 | ) | ||||||||||
Indebtedness_and_Credit_Agreem1
Indebtedness and Credit Agreements (Tables) | 9 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Indebtedness and Credit Agreements | ' | |||||||
Summary of indebtedness and lease financing obligations | ' | |||||||
November 30, | March 2, | |||||||
2013 | 2013 | |||||||
Secured Debt: | ||||||||
Senior secured revolving credit facility due February 2018 | $ | 590,000 | $ | 665,000 | ||||
Tranche 6 Term Loan due February 2020 | 1,155,195 | 1,161,000 | ||||||
7.5% senior secured notes (second lien) due March 2017 | — | 500,000 | ||||||
10.25% senior secured notes (second lien) due October 2019 ($270,000 face value less unamortized discount of $1,211 and $1,364) | 268,789 | 268,636 | ||||||
8.00% senior secured notes (senior lien) due August 2020 | 650,000 | 650,000 | ||||||
Tranche 1 Term Loan (second lien) due August 2020 | 470,000 | 470,000 | ||||||
Tranche 2 Term Loan (second lien) due June 2021 | 500,000 | — | ||||||
Other secured | 5,267 | 5,298 | ||||||
3,639,251 | 3,719,934 | |||||||
Guaranteed Unsecured Debt: | ||||||||
9.5% senior notes due June 2017 ($810,000 face value less unamortized discount of $5,529) | — | 804,471 | ||||||
9.25% senior notes due March 2020 ($902,000 face value plus unamortized premium of $4,255 and $4,759) | 906,255 | 906,759 | ||||||
6.75% senior notes due June 2021 | 810,000 | — | ||||||
1,716,255 | 1,711,230 | |||||||
Unguaranteed Unsecured Debt: | ||||||||
8.5% convertible notes due May 2015 | 64,188 | 64,188 | ||||||
7.7% notes due February 2027 | 295,000 | 295,000 | ||||||
6.875% fixed-rate senior notes due December 2028 | 128,000 | 128,000 | ||||||
487,188 | 487,188 | |||||||
Lease financing obligations | 109,732 | 115,179 | ||||||
Total debt | 5,952,426 | 6,033,531 | ||||||
Current maturities of long-term debt and lease financing obligations | (47,753 | ) | (37,311 | ) | ||||
Long-term debt and lease financing obligations, less current maturities | $ | 5,904,673 | $ | 5,996,220 | ||||
Stock_Options_and_Stock_Awards1
Stock Options and Stock Awards (Tables) | 9 Months Ended | |||||||||||||
Nov. 30, 2013 | ||||||||||||||
Stock Options and Stock Awards | ' | |||||||||||||
Schedule of total number and type of newly awarded grants and the related weighted average fair value | ' | |||||||||||||
November 30, 2013 | December 1, 2012 | |||||||||||||
Shares | Weighted | Shares | Weighted | |||||||||||
Average | Average | |||||||||||||
Fair Value | Fair Value | |||||||||||||
Stock options granted | 4,828 | $ | 1.91 | 12,020 | $ | 0.91 | ||||||||
Stock awards granted | 2,743 | $ | 2.79 | 5,450 | $ | 1.31 | ||||||||
Total awards | 7,571 | 17,470 | ||||||||||||
Schedule of assumptions used for options granted | ' | |||||||||||||
Thirty-Nine Week Period | ||||||||||||||
Ended | ||||||||||||||
November 30, | December 1, | |||||||||||||
2013 | 2012 | |||||||||||||
Expected stock price volatility | 85 | % | 85 | % | ||||||||||
Expected dividend yield | 0 | % | 0 | % | ||||||||||
Risk-free interest rate | 1.4 | % | 0.7 | % | ||||||||||
Expected option life | 5.5 years | 5.5 years | ||||||||||||
Schedule of unrecognized pre-tax compensation costs, net of estimated forfeitures and the weighted average period of cost amortization | ' | |||||||||||||
November 30, 2013 | ||||||||||||||
Unvested | Unvested | |||||||||||||
stock | restricted | |||||||||||||
options | stock | |||||||||||||
Unrecognized pre-tax costs | $ | 17,625 | $ | 10,913 | ||||||||||
Weighted average amortization period | 2.5 years | 2.0 years |
Reclassifications_from_Accumul1
Reclassifications from Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Nov. 30, 2013 | ||||||||||||||||||||||||||
Reclassifications from Accumulated Other Comprehensive Loss | ' | |||||||||||||||||||||||||
Summary of components of accumulated other comprehensive loss and the changes in balances of each component of accumulated other comprehensive loss, net of tax | ' | |||||||||||||||||||||||||
Thirteen week period | Thirteen Week Period | Thirty-Nine Week | Thirty-Nine Week | |||||||||||||||||||||||
ended November 30, | Ended December 1,2012 | Period Ended | Period Ended | |||||||||||||||||||||||
2013 | November 30, 2013 | December 1,2012 | ||||||||||||||||||||||||
Defined | Accumulated | Defined | Accumulated | Defined | Accumulated | Defined | Accumulated | |||||||||||||||||||
benefit | other | benefit | other | benefit | other | benefit | other | |||||||||||||||||||
pension | comprehensive | pension | comprehensive | pension | comprehensive | pension | comprehensive | |||||||||||||||||||
plans | loss | plans | loss | plans | loss | plans | loss | |||||||||||||||||||
Accumulated other comprehensive loss | ||||||||||||||||||||||||||
Balance-beginning of period | $ | (58,844 | ) | $ | (58,844 | ) | $ | (50,595 | ) | $ | (50,595 | ) | $ | (61,369 | ) | $ | (61,369 | ) | $ | (52,634 | ) | $ | (52,634 | ) | ||
Amounts reclassified from accumulated other comprehensive loss to net income (loss) | 1,263 | 1,263 | 1,020 | 1,020 | 3,788 | 3,788 | 3,059 | 3,059 | ||||||||||||||||||
Balance-end of period | $ | (57,581 | ) | $ | (57,581 | ) | $ | (49,575 | ) | $ | (49,575 | ) | $ | (57,581 | ) | $ | (57,581 | ) | $ | (49,575 | ) | $ | (49,575 | ) | ||
Summary of effects on net income (loss) of significant amounts classified out of each component of accumulated other comprehensive loss | ' | |||||||||||||||||||||||||
Thirteen Week Periods Ended November 30, 2013 and December 1, 2012 | ||||||||||||||||||||||||||
Amount reclassified from | ||||||||||||||||||||||||||
accumulated other | ||||||||||||||||||||||||||
comprehensive loss | ||||||||||||||||||||||||||
Details about accumulated other comprehensive loss components | November 30, | December 1, | Affected line item in the condensed | |||||||||||||||||||||||
2013 | 2012 | consolidated statements of operations | ||||||||||||||||||||||||
Defined benefit pension plans | ||||||||||||||||||||||||||
Amortization of unrecognized prior service cost(a) | $ | (60 | ) | $ | (60 | ) | Selling, general and administrative expenses | |||||||||||||||||||
Amortization of unrecognized net loss(a) | (1,203 | ) | (960 | ) | Selling, general and administrative expenses | |||||||||||||||||||||
(1,263 | ) | (1,020 | ) | Total before income tax expense | ||||||||||||||||||||||
— | — | Income tax expense(b) | ||||||||||||||||||||||||
$ | (1,263 | ) | $ | (1,020 | ) | Net of income tax expense | ||||||||||||||||||||
Thirty-Nine Week Periods Ended November 30, 2013 and December 1, 2012 | ||||||||||||||||||||||||||
Amount reclassified from | ||||||||||||||||||||||||||
accumulated other | ||||||||||||||||||||||||||
comprehensive loss | ||||||||||||||||||||||||||
Details about accumulated other comprehensive loss components | November 30, | December 1, | Affected line item in the condensed | |||||||||||||||||||||||
2013 | 2012 | consolidated statements of operations | ||||||||||||||||||||||||
Defined benefit pension plans | ||||||||||||||||||||||||||
Amortization of unrecognized prior service cost(a) | $ | (180 | ) | $ | (180 | ) | Selling, general and administrative expenses | |||||||||||||||||||
Amortization of unrecognized net loss(a) | (3,608 | ) | (2,879 | ) | Selling, general and administrative expenses | |||||||||||||||||||||
(3,788 | ) | (3,059 | ) | Total before income tax expense | ||||||||||||||||||||||
— | — | Income tax expense(b) | ||||||||||||||||||||||||
$ | (3,788 | ) | $ | (3,059 | ) | Net of income tax expense | ||||||||||||||||||||
(a)—See Note 10, Retirement Plans for additional details. | ||||||||||||||||||||||||||
(b)—Income tax expense is $0 due to the valuation allowance. See Note 5, Income Taxes for additional details. | ||||||||||||||||||||||||||
Retirement_Plans_Tables
Retirement Plans (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Nov. 30, 2013 | ||||||||||||||||||||||||||
Retirement Plans | ' | |||||||||||||||||||||||||
Summary of net periodic pension expense for the defined benefit plans | ' | |||||||||||||||||||||||||
Defined Benefit Pension | Nonqualified Executive | Defined Benefit Pension | Nonqualified Executive | |||||||||||||||||||||||
Plan | Retirement Plans | Plan | Retirement Plans | |||||||||||||||||||||||
Thirteen Week Period Ended | Thirty-Nine Week Period Ended | |||||||||||||||||||||||||
November 30, | December 1, | November 30, | December 1, | November 30, | December 1, | November 30, | December 1, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 830 | $ | 868 | $ | — | $ | — | $ | 2,490 | $ | 2,603 | $ | — | $ | — | ||||||||||
Interest cost | 1,551 | 1,566 | 136 | 154 | 4,653 | 4,697 | 407 | 462 | ||||||||||||||||||
Expected return on plan assets | (1,780 | ) | (1,749 | ) | — | — | (5,338 | ) | (5,246 | ) | — | — | ||||||||||||||
Amortization of unrecognized prior service cost | 60 | 60 | — | — | 180 | 180 | — | — | ||||||||||||||||||
Amortization of unrecognized net loss | 1,203 | 960 | — | — | 3,608 | 2,879 | — | — | ||||||||||||||||||
Net pension expense | $ | 1,864 | $ | 1,705 | $ | 136 | $ | 154 | $ | 5,593 | $ | 5,113 | $ | 407 | $ | 462 | ||||||||||
Income_Loss_Per_Share_Details
Income (Loss) Per Share (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Nov. 30, 2013 | Dec. 01, 2012 | Nov. 30, 2013 | Dec. 01, 2012 |
Numerator for income (loss) per share: | ' | ' | ' | ' | ' |
Net income (loss) | ' | $71,548 | $61,871 | $194,037 | ($4,982) |
Accretion of redeemable preferred stock | ' | -26 | -26 | -77 | -77 |
Cumulative preferred stock dividends | ' | -2,814 | -2,651 | -8,318 | -7,837 |
Conversion of Series G and H preferred stock | -25,603 | -25,603 | ' | -25,603 | ' |
Income (loss) attributable to common stockholders-basic | ' | 43,105 | 59,194 | 160,039 | -12,896 |
Add back-interest on convertible notes | ' | ' | 1,334 | ' | ' |
Income (loss) attributable to common stockholders-diluted | ' | $43,105 | $60,528 | $160,039 | ($12,896) |
Denominator: | ' | ' | ' | ' | ' |
Basic weighted average shares | ' | 938,994 | 891,031 | 911,608 | 889,187 |
Outstanding options and restricted shares, net (in shares) | ' | 48,843 | 1,977 | 41,227 | ' |
Convertible notes (in shares) | ' | ' | 24,800 | ' | ' |
Diluted weighted average shares | ' | 987,837 | 917,808 | 952,835 | 889,187 |
Basic income (loss) per share (in dollars per share) | ' | $0.05 | $0.07 | $0.18 | ($0.01) |
Diluted income (loss) per share (in dollars per share) | ' | $0.04 | $0.07 | $0.17 | ($0.01) |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' | ' |
Potential common shares excluded from the computation of diluted income (loss) per share | ' | 48,364 | 103,487 | 57,233 | 140,588 |
Stock options | ' | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' | ' |
Potential common shares excluded from the computation of diluted income (loss) per share | ' | 23,564 | 70,868 | 32,433 | 83,169 |
Convertible notes | ' | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' | ' |
Potential common shares excluded from the computation of diluted income (loss) per share | ' | 24,800 | ' | 24,800 | 24,800 |
Convertible preferred stock | ' | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' | ' |
Potential common shares excluded from the computation of diluted income (loss) per share | ' | ' | 32,619 | ' | 32,619 |
Restricted shares and restricted stock units | ' | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share | ' | ' | ' | ' | ' |
Potential common shares excluded from the computation of diluted income (loss) per share | ' | ' | ' | 0 | 12,753 |
Lease_Termination_and_Impairme2
Lease Termination and Impairment Charges (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2013 | Dec. 01, 2012 | Nov. 30, 2013 | Dec. 01, 2012 |
store | |||||
Lease termination and impairment charges | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | $1,672 | $14,366 | $24,034 | $34,292 |
Gain on sale of lease rights | ' | ' | ' | 8,750 | ' |
Impairment charges | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | 335 | 339 | 5,201 | 882 |
Lease termination charges | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | ' | ' | ' | ' |
Lease termination and impairment charges | ' | 1,337 | 14,027 | 18,833 | 33,410 |
Number of stores for which lease rights were sold | 1 | ' | ' | ' | ' |
Gain on sale of lease rights | 8,750 | ' | ' | ' | ' |
Closed store and distribution center charges | ' | ' | ' | ' | ' |
Balance-beginning of period | ' | 303,637 | 345,271 | 323,758 | 367,865 |
Provision for present value of noncancellable lease payments of closed stores | ' | 4,522 | 7,270 | 10,896 | 11,522 |
Changes in assumptions about future sublease income, terminations and changes in interest rates | ' | -8,112 | 1,062 | -7,899 | 4,388 |
Interest accretion | ' | 5,225 | 5,729 | 16,133 | 17,655 |
Cash payments, net of sublease income | ' | -10,127 | -23,866 | -47,743 | -65,964 |
Balance-end of period | $295,145 | $295,145 | $335,466 | $295,145 | $335,466 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Dec. 01, 2012 | Nov. 30, 2013 | Dec. 01, 2012 | Mar. 02, 2013 |
Fair Value Measurements | ' | ' | ' | ' | ' |
Carrying value of long-lived assets | $18,587 | $2,632 | $18,587 | $2,632 | ' |
Fair value of long-lived assets | 13,386 | 1,750 | 13,386 | 1,750 | ' |
Impairment charges | 335 | 339 | 5,201 | 882 | ' |
Non-financial assets measured on a non-recurring basis | ' | ' | ' | ' | ' |
Outstanding derivative financial instruments | 0 | ' | 0 | ' | 0 |
Nonrecurring basis | Level 1 | ' | ' | ' | ' | ' |
Non-financial assets measured on a non-recurring basis | ' | ' | ' | ' | ' |
Carrying value of total long-term indebtedness | 5,842,694 | ' | 5,842,694 | ' | ' |
Estimated fair value of total long-term indebtedness | 6,211,376 | ' | 6,211,376 | ' | ' |
Nonrecurring basis | Level 2 | ' | ' | ' | ' | ' |
Non-financial assets measured on a non-recurring basis | ' | ' | ' | ' | ' |
Fair value of long-lived assets held for use | ' | 975 | ' | 975 | ' |
Fair value of Long-lived assets held for sale | 12,431 | ' | 12,431 | ' | ' |
Fair value of Total | 12,431 | 975 | 12,431 | 975 | ' |
Nonrecurring basis | Level 3 | ' | ' | ' | ' | ' |
Non-financial assets measured on a non-recurring basis | ' | ' | ' | ' | ' |
Fair value of long-lived assets held for use | 955 | 775 | 955 | 775 | ' |
Fair value of Total | 955 | 775 | 955 | 775 | ' |
Nonrecurring basis | Total | ' | ' | ' | ' | ' |
Non-financial assets measured on a non-recurring basis | ' | ' | ' | ' | ' |
Fair value of long-lived assets held for use | 955 | 1,750 | 955 | 1,750 | ' |
Fair value of Long-lived assets held for sale | 12,431 | ' | 12,431 | ' | ' |
Fair value of Total | $13,386 | $1,750 | $13,386 | $1,750 | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Dec. 01, 2012 | Nov. 30, 2013 | Dec. 01, 2012 | Mar. 02, 2013 |
Income Taxes | ' | ' | ' | ' | ' |
Income tax expense (benefit) | $1,388 | $777 | $6,810 | ($63,818) | ' |
Adjustments to valuation allowance | -28,389 | -24,717 | -63,081 | 18,128 | ' |
Recoverable indemnification asset from Jean Coutu Group | 32,550 | ' | 32,550 | ' | 30,710 |
Portion of unrecognized tax benefits which would impact the effective tax rate | 32,827 | ' | 32,827 | ' | ' |
Valuation allowance against net deferred tax assets | $2,160,594 | ' | $2,160,594 | ' | $2,223,675 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Dec. 01, 2012 | Nov. 30, 2013 | Dec. 01, 2012 | Mar. 02, 2013 | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 30, 2013 | Mar. 02, 2013 |
Favorable leases and other | Favorable leases and other | Prescription files | Prescription files | ||||||
Finite-lived intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross carrying amount | $1,968,866 | ' | $1,968,866 | ' | $1,909,628 | $635,095 | $623,541 | $1,333,771 | $1,286,087 |
Accumulated amortization | -1,530,585 | ' | -1,530,585 | ' | -1,445,224 | -441,542 | -413,556 | -1,089,043 | -1,031,668 |
Remaining weighted average amortization period | ' | ' | ' | ' | ' | '9 years | '10 years | '4 years | '4 years |
Unfavorable lease intangibles | 64,522 | ' | 64,522 | ' | 70,195 | ' | ' | ' | ' |
Amortization expense for intangible assets and liabilities | 28,961 | 31,143 | 89,767 | 95,972 | ' | ' | ' | ' | ' |
Anticipated annual amortization expense for intangible assets and liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 111,702 | ' | 111,702 | ' | ' | ' | ' | ' | ' |
2015 | 100,399 | ' | 100,399 | ' | ' | ' | ' | ' | ' |
2016 | 88,857 | ' | 88,857 | ' | ' | ' | ' | ' | ' |
2017 | 75,596 | ' | 75,596 | ' | ' | ' | ' | ' | ' |
2018 | $37,687 | ' | $37,687 | ' | ' | ' | ' | ' | ' |
Indebtedness_and_Credit_Agreem2
Indebtedness and Credit Agreements (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
In Thousands, except Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2013 | Dec. 01, 2012 | Mar. 02, 2013 | Mar. 02, 2013 | Nov. 29, 2013 | Mar. 02, 2013 | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Jul. 31, 2013 | Jun. 30, 2013 | Mar. 02, 2013 | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Jun. 21, 2013 | Jun. 21, 2013 | Jun. 21, 2013 | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 30, 2013 | Mar. 02, 2013 | Aug. 31, 2013 | Jul. 31, 2013 | Mar. 02, 2013 | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 30, 2013 | Jul. 02, 2013 | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 30, 2013 | Mar. 02, 2013 | Nov. 30, 2013 | Mar. 02, 2013 |
Rite Aid Lease Management Company | Class A Cumulative Preferred Stock | Class A Cumulative Preferred Stock | Senior secured credit facility | Senior secured credit facility | Senior secured credit facility | Senior secured credit facility | Senior secured credit facility | Senior secured credit facility | Senior secured credit facility | Senior secured credit facility | Senior secured credit facility | Senior secured credit facility | Senior secured revolving credit facility due February 2018 | Senior secured revolving credit facility due February 2018 | Tranche 6 Term Loan due February 2020 | Tranche 6 Term Loan due February 2020 | Tranche 6 Term Loan due February 2020 | Tranche 6 Term Loan due February 2020 | 7.5% senior secured notes (second lien) due March 2017 | 7.5% senior secured notes (second lien) due March 2017 | 7.5% senior secured notes (second lien) due March 2017 | 10.25% senior secured notes (second lien) due October 2019 ($270,000 face value less unamortized discount of $1,211 and $1,364) | 10.25% senior secured notes (second lien) due October 2019 ($270,000 face value less unamortized discount of $1,211 and $1,364) | 8.00% senior secured notes (senior lien) due August 2020 | 8.00% senior secured notes (senior lien) due August 2020 | Tranche 1 Term Loan (second lien) due August 2020 | Tranche 1 Term Loan (second lien) due August 2020 | Tranche 1 Term Loan (second lien) due August 2020 | Tranche 1 Term Loan (second lien) due August 2020 | Tranche 2 Term Loan (second lien) due June 2021 | Tranche 2 Term Loan (second lien) due June 2021 | Tranche 2 Term Loan (second lien) due June 2021 | Tranche 2 Term Loan (second lien) due June 2021 | Other secured | Other secured | Guaranteed Unsecured Debt | Guaranteed Unsecured Debt | 9.5% senior notes due June 2017 | 9.5% senior notes due June 2017 | 9.5% senior notes due June 2017 | 9.25% senior notes due March 2020 | 9.25% senior notes due March 2020 | 6.75% senior notes due June 2021 | 6.75% senior notes due June 2021 | Unguaranteed Unsecured Debt | Unguaranteed Unsecured Debt | 8.5% convertible notes due May 2015 | 8.5% convertible notes due May 2015 | 7.7% notes due February 2027 | 7.7% notes due February 2027 | 6.875% fixed-rate senior notes due December 2028 | 6.875% fixed-rate senior notes due December 2028 | |||||
Rite Aid Lease Management Company | Rite Aid Lease Management Company | Minimum | Maximum | LIBOR | LIBOR | LIBOR | Citibank's base rate | Citibank's base rate | Citibank's base rate | LIBOR | Citibank's base rate | LIBOR | Citibank's base rate | LIBOR | Citibank's base rate | ||||||||||||||||||||||||||||||||||||||||||
Minimum | Maximum | Minimum | Maximum | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness and credit agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | ' | ' | ' | ' | ' | ' | $3,639,251 | $3,719,934 | ' | ' | ' | ' | ' | ' | ' | ' | $590,000 | $665,000 | $1,155,195 | $1,161,000 | ' | ' | ' | ' | $500,000 | $268,789 | $268,636 | $650,000 | $650,000 | $470,000 | $470,000 | ' | ' | $500,000 | ' | ' | ' | $5,267 | $5,298 | $1,716,255 | $1,711,230 | ' | ' | $804,471 | $906,255 | $906,759 | $810,000 | ' | $487,188 | $487,188 | $64,188 | $64,188 | $295,000 | $295,000 | $128,000 | $128,000 |
Lease financing obligations | 109,732 | 109,732 | ' | 115,179 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total debt | 5,952,426 | 5,952,426 | ' | 6,033,531 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current maturities of long-term debt and lease financing obligations | -47,753 | -47,753 | ' | -37,311 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt and lease financing obligations, less current maturities | 5,904,673 | 5,904,673 | ' | 5,996,220 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 270,000 | 270,000 | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | 810,000 | 902,000 | 902,000 | ' | 810,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,211 | 1,364 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,529 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,255 | 4,759 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, stated interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.50% | 7.50% | 10.25% | 10.25% | 8.00% | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.50% | 9.25% | 9.25% | 6.75% | 6.75% | ' | ' | 8.50% | 8.50% | 7.70% | 7.70% | 6.88% | 6.88% |
Credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility | ' | ' | ' | ' | ' | ' | ' | 1,795,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reference rate for variable interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | 'Citibank's base rate | ' | ' | ' | ' | ' | ' | 'LIBOR | 'Citibank's base rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | 'Citibank's base rate | ' | ' | 'LIBOR | 'Citibank's base rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage points added to the reference rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.25% | 2.75% | ' | 1.25% | 1.75% | ' | ' | ' | ' | 3.00% | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.75% | 3.75% | ' | ' | 3.88% | 2.88% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of fee payable on daily unused revolver availability | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.38% | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LIBOR floor (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 590,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 87,949 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,117,051 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold availability on revolving credit facility to trigger fixed charge coverage requirements | ' | ' | ' | ' | ' | ' | ' | 150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum fixed charge coverage ratio (as a percent) | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest (as a percent) | 100.00% | 100.00% | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 419,237 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 739,642 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of senior secured notes, including call premium and interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85,154 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of senior notes, including call premium and interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73,440 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock outstanding (in shares) | ' | ' | ' | ' | ' | ' | 213,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Par value (in dollars per share) | ' | ' | ' | ' | ' | ' | $100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock value included in other non-current liabilities | ' | ' | ' | ' | ' | 20,763 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of preferred stock, value | ' | ' | ' | ' | ' | 21,034 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on debt retirement | 271 | 62,443 | 17,842 | ' | ' | 271 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remainder of fiscal 2014 | 8,170 | 8,170 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 11,610 | 11,610 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 75,798 | 75,798 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 11,610 | 11,610 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 601,610 | 601,610 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | $5,130,852 | $5,130,852 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock_Options_and_Stock_Awards2
Stock Options and Stock Awards (Details) (USD $) | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Nov. 30, 2013 | Dec. 01, 2012 |
Stock options and stock award Plans | ' | ' |
Stock-based compensation costs | $12,194 | $12,872 |
Total awards (in shares) | 7,571 | 17,470 |
Stock options | ' | ' |
Stock options and stock award Plans | ' | ' |
Options granted (in shares) | 4,828 | 12,020 |
Options granted, Weighted Average Fair Value (in dollars per share) | $1.91 | $0.91 |
Vesting period | '4 years | ' |
Fair value assumptions | ' | ' |
Expected stock price volatility (as a percent) | 85.00% | 85.00% |
Expected dividend yield (as a percent) | 0.00% | 0.00% |
Risk-free interest rate (as a percent) | 1.40% | 0.70% |
Expected option life | '5 years 6 months | '5 years 6 months |
Unrecognized pre-tax compensation costs related to unvested stock options and restricted stock grants | ' | ' |
Unrecognized pre-tax costs | 17,625 | ' |
Weighted average amortization period | '2 years 6 months | ' |
Stock awards | ' | ' |
Stock options and stock award Plans | ' | ' |
Awards granted (in shares) | 2,743 | 5,450 |
Awards granted, Weighted Average Fair Value (in dollars per share) | $2.79 | $1.31 |
Stock awards | Non-employee director | Year one | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures | ' | ' |
Vesting percentage | 80.00% | ' |
Stock awards | Non-employee director | Year two | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures | ' | ' |
Vesting percentage | 10.00% | ' |
Stock awards | Non-employee director | Year three | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Additional General Disclosures | ' | ' |
Vesting percentage | 10.00% | ' |
Restricted stock | ' | ' |
Unrecognized pre-tax compensation costs related to unvested stock options and restricted stock grants | ' | ' |
Unrecognized pre-tax costs | $10,913 | ' |
Weighted average amortization period | '2 years | ' |
Reclassifications_from_Accumul2
Reclassifications from Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Dec. 01, 2012 | Nov. 30, 2013 | Dec. 01, 2012 |
Accumulated other comprehensive loss | ' | ' | ' | ' |
Balance - beginning of period | ($58,844) | ($50,595) | ($61,369) | ($52,634) |
Amounts reclassified from accumulated other comprehensive loss to net income (loss) | 1,263 | 1,020 | 3,788 | 3,059 |
Balance - end of period | -57,581 | -49,575 | -57,581 | -49,575 |
Defined benefit pension plans | ' | ' | ' | ' |
Accumulated other comprehensive loss | ' | ' | ' | ' |
Balance - beginning of period | -58,844 | -50,595 | -61,369 | -52,634 |
Amounts reclassified from accumulated other comprehensive loss to net income (loss) | 1,263 | 1,020 | 3,788 | 3,059 |
Balance - end of period | ($57,581) | ($49,575) | ($57,581) | ($49,575) |
Reclassifications_from_Accumul3
Reclassifications from Accumulated Other Comprehensive Loss (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Dec. 01, 2012 | Nov. 30, 2013 | Dec. 01, 2012 |
Reclassification from accumulated other comprehensive loss | ' | ' | ' | ' |
Income (loss) before income taxes | ($72,936) | ($62,648) | ($200,847) | $68,800 |
Income tax expense (benefit) | 1,388 | 777 | 6,810 | -63,818 |
Net of income tax expense | -71,548 | -61,871 | -194,037 | 4,982 |
Defined benefit pension plans | Reclassification from accumulated other comprehensive loss | ' | ' | ' | ' |
Reclassification from accumulated other comprehensive loss | ' | ' | ' | ' |
Income (loss) before income taxes | -1,263 | -1,020 | -3,788 | -3,059 |
Net of income tax expense | -1,263 | -1,020 | -3,788 | -3,059 |
Defined benefit pension plans | Reclassification from accumulated other comprehensive loss | Selling, general and administrative expenses | ' | ' | ' | ' |
Reclassification from accumulated other comprehensive loss | ' | ' | ' | ' |
Amortization of unrecognized prior service cost | -60 | -60 | -180 | -180 |
Amortization of unrecognized net loss | ($1,203) | ($960) | ($3,608) | ($2,879) |
Retirement_Plans_Details
Retirement Plans (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Dec. 01, 2012 | Nov. 30, 2013 | Dec. 01, 2012 |
Defined Benefit Pension Plan | ' | ' | ' | ' |
Net periodic pension expense | ' | ' | ' | ' |
Service cost | $830 | $868 | $2,490 | $2,603 |
Interest cost | 1,551 | 1,566 | 4,653 | 4,697 |
Expected return on plan assets | -1,780 | -1,749 | -5,338 | -5,246 |
Amortization of unrecognized prior service cost | 60 | 60 | 180 | 180 |
Amortization of unrecognized net loss | 1,203 | 960 | 3,608 | 2,879 |
Net pension expense | 1,864 | 1,705 | 5,593 | 5,113 |
Expected employer contribution during the remainder of fiscal 2014 | ' | ' | 8,000 | ' |
Nonqualified Executive Retirement Plan | ' | ' | ' | ' |
Net periodic pension expense | ' | ' | ' | ' |
Interest cost | 136 | 154 | 407 | 462 |
Net pension expense | 136 | 154 | 407 | 462 |
Employer contributions | 402 | ' | 1,220 | ' |
Expected employer contribution during the remainder of fiscal 2014 | ' | ' | $435 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2013 | Sep. 26, 2013 |
Management of hazardous waste | Indergit | Indergit | |
StoreManager | StoreManager | ||
Commitments and contingencies | ' | ' | ' |
Number of current and former store managers to whom notice has been sent | ' | 7,000 | 1,750 |
Number of current and former store managers who joined the action | ' | 1,550 | ' |
Payment of legal settlement | $12.30 | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Mar. 02, 2013 | Sep. 30, 2013 | Nov. 30, 2013 | Mar. 02, 2013 | Sep. 30, 2013 | Nov. 30, 2013 | Mar. 02, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jul. 22, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Series G preferred stock | Series G preferred stock | Series G preferred stock | Series H preferred stock | Series H preferred stock | Series H preferred stock | Preferred Stock (Series G and H) | Green Equity Investors III, L.P. ("LGP") | Jean Coutu Group | Leonard Green & Partners, L. P. | Leonard Green & Partners, L. P. | Leonard Green & Partners, L. P. | |||||
Preferred Stock (Series G and H) | Green Equity Investors III, L.P. ("LGP") | Green Equity Investors III, L.P. ("LGP") | Green Equity Investors III, L.P. ("LGP") | |||||||||||||
Common Stock | Series G preferred stock | Series H preferred stock | ||||||||||||||
Related Party Transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65,401,162 | ' | ' | ' |
Number of shares agreed to be exchanged | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | 1,876,013 |
Common stock issued upon redemption of preferred stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' |
Par value of common stock (in dollars per share) | $1 | $1 | $1 | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Market value of common stock issued upon redemption of preferred stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $190,400 | ' | ' |
Closing price per share (in dollars per share) | $4.76 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption percentage of the liquidation preference per share | 105.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liquidation preference | 199,937 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1,904,161 | ' | ' | ' | ' |
Liquidation preference (in dollars per share) | $100 | ' | ' | ' | $100 | $100 | $100 | ' | $100 | $100 | ' | ' | ' | ' | ' | ' |
Quarterly dividend (as a percent) | ' | ' | ' | ' | 7.00% | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Contracted conversion rate (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.50 | ' | ' | ' | ' | ' |
Shares of earned and unpaid dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,140 | ' | ' | ' | ' |
Total common stock shares issuable at contracted conversion rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,621,117 | ' | ' | ' | ' |
Conversion of Series G and H preferred stock | $25,603 | $25,603 | $25,603 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted earning per share due to conversion of preferred stock (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.03 | ' | ' | ' | ' |
Additional common stock issued upon redemption of preferred stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,378,883 | ' | ' | ' | ' |