Rite Aid 2015 Annual Report Download - page 118

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RITE AID CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
For the Years Ended February 28, 2015, March 1, 2014 and March 2, 2013
(In thousands, except per share amounts)
21. Related Party Transactions (Continued)
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 was 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.
22. Interim Financial Results (Unaudited)
Fiscal Year 2015
First Second Third Fourth
Quarter Quarter Quarter Quarter Year
Revenues .................... $6,465,531 $6,522,584 $6,692,333 $ 6,847,929 $26,528,377
Cost of goods sold ............. 4,662,552 4,628,005 4,769,020 4,892,068 18,951,645
Selling, general and administrative
expenses ................... 1,644,354 1,640,524 1,692,437 1,718,327 6,695,642
Lease termination and impairment
charges .................... 4,848 7,111 8,702 21,284 41,945
Interest expense ............... 100,820 100,950 97,400 98,442 397,612
Loss on debt retirements, net ..... — — 18,512 — 18,512
Gain on sale of assets, net ........ (370) (1,715) (455) (1,259) (3,799)
6,412,204 6,374,875 6,585,616 6,728,862 26,101,557
Income before income taxes ...... 53,327 147,709 106,717 119,067 426,820
Income tax expense (benefit) ...... 11,881 19,860 1,871 (1,715,965) (1,682,353)
Net income .................. $ 41,446 $ 127,849 $ 104,846 $ 1,835,032 $ 2,109,173
Basic income per share(1) ........ $ 0.04 $ 0.13 $ 0.11 $ 1.88 $ 2.17
Diluted income per share(1) ...... $ 0.04 $ 0.13 $ 0.10 $ 1.79 $ 2.08
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