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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)
11. Goodwill and Other Intangibles (Continued)
In the fiscal fourth quarter the Company completed a qualitative goodwill impairment assessment,
and after evaluating the results, events and circumstances of the Company, the Company concluded
that sufficient evidence existed to assert qualitatively that it is more likely than not that the fair value
of the reporting unit exceeded its carrying value. Therefore, a two-step impairment assessment was not
necessary and no goodwill impairment charge was assessed for the fiscal year ended February 28, 2015.
Below is a summary of the changes in the carrying amount of goodwill for the fiscal year ended
February 28, 2015:
February 28, 2015
Balance, March 1, 2014 ................................. $ —
Acquisitions ....................................... 76,124
Balance, February 28, 2015 .............................. $76,124
The Company’s intangible assets are finite-lived and amortized over their useful lives. Following is
a summary of the Company’s intangible assets as of February 28, 2015 and March 1, 2014.
2015 2014
Remaining Remaining
Weighted Weighted
Gross Average Gross Average
Carrying Accumulated Amortization Carrying Accumulated Amortization
Amount Amortization Period Amount Amortization Period
Favorable leases and
other ............ $ 653,377 $ (481,041) 8 years $ 634,320 $ (447,608) 9 years
Prescription files ..... 1,440,154 (1,191,010) 3 years 1,353,057 (1,108,542) 4 years
Total .............. $2,093,531 $(1,672,051) $1,987,377 $(1,556,150)
Also included in other non-current liabilities as of February 28, 2015 and March 1, 2014 are
unfavorable lease intangibles with a net carrying amount of $55,571 and $62,687, respectively. These
intangible liabilities are amortized over their remaining lease terms at time of acquisition.
Amortization expense for these intangible assets and liabilities was $118,105, $119,138 and
$127,737 for fiscal 2015, 2014 and 2013, respectively. The anticipated annual amortization expense for
these intangible assets and liabilities is 2016—$115,962; 2017—$102,571; 2018—$64,577; 2019—$38,579
and 2020—$19,217.
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