Question

the company is rite aid 10-k filing of 2020 answers come from the filing

1. Briefly describe your company's investments and intangible assets.

2. Does your company list "Other Assets?" If so, what items are classified in this category?

3. Comment on any significant changes in individual assets or liabilities.

4. Does your company have any long-term liabilities? If so, state the largest long-term liability and when it is due?

Answer 1

Intangible Assets:

The following are the components of Intangible Assets:

Finite Lived Intangible Asset:

Favourable Leases, non-compete agreements and others	$          22,608
Prescription Files	$          83,457
Customer Relationships	$        156,985
CMS License	$          46,728
Claims adjudication and other developed software	$          19,526
Trademarks	$          10,687
Backlog	$                   -
Total of Finite lived Intangible Assets	$        339,991

• The Company has certain finite-lived intangible assets that are amortized over their useful lives. Prescription files acquired in business combinations are amortized over an estimated useful life of ten years on an accelerated basis, which approximates the anticipated prescription file retention and related cash flows.
• Purchased prescription files acquired in other than business combinations are amortized over their estimated useful lives of five years on a straight-line basis.
• The value of finite-lived trade names are amortized over 10 years on a straight-line basis.
• The value of customer relationships, acquired in connection with the Company’s acquisition of EnvisionRx, are amortized over a period between 10 and 20 years on a descending percentage method which matches the pattern of expected discounted cash flows.
• The Pharmacy Services segment’s contract with Centers for Medicare and Medicaid Services (“CMS”) for Medicare Part D (“Part D”), which is required in order to act as a national provider of the Part D benefit, is amortized over 25 years on a straight line basis.

Infinite Lived Intabgible Asset:

Trademarks	$          19,500
Total of Infinite lived Intangible Assets	$          19,500

The Company has a single indefinite-lived intangible asset consisting of a trade name. Intangible assets that are determined to have an indefinite life are not amortized, but are required to be evaluated at least annually for impairment. If the carrying value of an individual indefinite-lived intangible asset exceeds its fair value, such individual indefinitelived intangible asset is impaired by the amount of the excess.

2 .Other Assets

For the Financial Year ended February 29, 2020 , the company has other assets amounting to $148,327.

The components of other assets are as follows:

Investments carried at amortized cost	$            7,022
Interest Rate Cap	$        141,305
Total of Other Assets	$        148,327

4. Long-Term Liabilities

Long-term Debt, less current maturities	3,077,268
Long-term operating lease liabilities	2,710,347
Lease financing obligations, less current maturities	19,236
Other noncurrent liabilities	204,438
Total Non-current liabilities	6,011,289

On December 20, 2018, the Company entered into a senior secured credit agreement consisting of a

• $2,700,000 senior secured asset-based revolving credit facility (“Senior Secured Revolving Credit Facility”)
• $450,000 “firstin, last out” senior secured term loan facility (“Senior Secured Term Loan,”)

Together these facility are termed as Existing Facilties.It forms the major portion of Long-term liabilities. These Existing Facilities will mature on December 20, 2023