Rite Aid

In: Business and Management

Submitted By StrawberryS
Words 656
Pages 3
Rite Aid

1) a. The secure debt of Rite Aid is tied to specific assets. Unsecured debt is money that Rite Aid borrowed from financial institutions and has no collateral tied to it. Rite Aid distinguish between these two types of debt to give a clear pictures to investors, credit rating agencies, and lenders that they will be able to make interest and principal payments on time.

b. A guarantee debt is an assurance if one party defaults; another party will pay the debt. Rite Aid wholly-owned subsidiaries guarantee the debt.

2) Per note 11, Indebtedness and Credit Agreement: Total Debt | 6,370,899 ~BS | Due within the coming FY | (51,502) |

Per Balance Sheet: Current Maturities of LTD | 51,502 | LTD, less current maturities | 6,185,633 | Lease Financing Obligation, less current maturities | 133,764 | Total | 6,370,899 ~Note 11 |

3) a. Rite Aid did not have to pay the face value to repurchase these notes in the open market, because the note maturity is June 2017, therefore is not fully amortized to the note face value yet.

b. The market rate of interest is higher than the coupon rate and the effective rate of interest. At the open market, the repurchased of these notes resulted in a gain which means that the current market rate exceeds the effective rate of interest at time of issue.

4) Firms use convertible notes to raise money, to offer the bond at a lower coupon rate, to have more of the operating income available for the common stockholder, and to attract investors that may not otherwise be interested. An investor would buy these types of bonds because it gives you the option to convert to stocks. If converted, the firm would reduce a liability and increase equity on the balance sheet for the amount converted.

5) a.

Ratio | Definition | Industry Avg | Rite Aid 2010 | Rite Aid 2009 | Common-size debt…...

Similar Documents

Rite of Passage Paper

...Rite of Passage Paper Diane Beleau BSHS/342 7 May 2012 Joyce Mink Introduction Society today sets high expectations for an adolescent girl, this same society forces her to be faced with many social pressures and high demands. Adolescent girls at this age have to deal with the pressure to include the notion of having to look a certain way in order to be accepted by her peers. Adolescent girls also may feel pressure from peers to act older than she is in order to fit in with the “in” crowd. Girls have a lot of pressure from the media, such as TV shows and music videos to be sexy by a certain standard or to believe everyone is having premarital sex. This is a very confusing time in a young girl’s life. An adolescent girl is dealing with an increase in hormones, body changes, and her menstrual cycle. In this paper we will take a look at an adolescent girl who is going to attend her Junior/Senior prom. The prom is a modern rite of passage that thousands of kids experience every year. During prom all kids face many issues such as pressure to drink, have sex or even experiment with drugs. We will also explore the different solutions that a young girl can be given to handle these types of modern day pressures. Social Demands Facing Adolescent Girls Today There are so many social demands of teens nowadays with prom being significant for adolescents and apparently more so for adolescent girls. Prom is an influential occasion in a teenager’s high school......

Words: 1589 - Pages: 7

Rites of Passages

...Negative Rite of Passage: Infibulation 1. Who? Some 5 million isolated inhabitants of Somalia. Children from four to eight years old. 2. What? a mulative procedure in which the vagina is partially closed by approximating the labia majora in the midline. 3. Where? In the arid, poverty-stricken "Horn of Africa". 4. When? The operations are often done on Sunday, a working day for Moslems. 5. Why? The custom is deeply rooted in the country and has been performed since remotest time on all social classes in both the interior regions and in the few coastal towns. The operation would certainly make the woman less sexually active, since satisfactory coitus is almost impossible after infibulation. 6. How? Since the population is largely nomadic, most operations are carried out in local villages. Infibulation as practiced in the bush is carried out on one child at a time by a "gedda" or matron of the village. Only women are allowed to be present at the ceremony which is carried out in secrecy. The matron squats on the floor of the family hut while the child is held in a lithotomy position by female relatives and friends. Again, the clitoris and labia are excised, but no anesthesia is used. Before the wound is closed, the mother and all the other women are allowed to inspect and palpate the wound to be sure the procedure has been properly performed. Then the wound is generously sprinkled with myrrh, a resinous material extracted from a native tree. Instead of sutures, thorns......

Words: 679 - Pages: 3

Rites of Passage

...Rites of Passage: The Making of an Adult Coleen Adams ANT 101 Professor Cohen October 14, 2013 Throughout the world, every culture has introduced their own versions of the “Rites of Passage”. The coming of age when you pass from being a child into adulthood. Some rites are as simple as a dance or the painting of faces, while others are as extreme as forceful circumcision and sleeping with other men’s wives. Regardless of the circumstances, it’s never easy becoming a grown-up. As a part of the Western Culture, we seldom observe, have knowledge of or understand the uniqueness of participating in a Rite of Passage. We are exposed to the “American” versions of the Bar Mitzvah, Quinceanera’s and the Vision Quest of the American Indian, while not acknowledging our own that we take for granted daily. Whether its following in our parents or siblings footsteps, getting a driver’s license or receiving a family heirloom passed down from generation to generation. Some people believe that you don’t become an adult until your parents pass away. In actuality, all are forms of a Rite of Passage. While researching this particular topic in the Ashford Library, there were wonderful examples of what the Rites of Passage has endured throughout the centuries. Coupling this with information from the local library, one can cross reference articles, journals, books and government databases (which regretfully are not functioning because of the government shutdown) in depth. By......

Words: 783 - Pages: 4

Rite Aid Fraud

...  Rite Aid Corporation, as the third largest drugstore chain (behind Walgreen and CVS) in the United States, operates more than 4600 drug stores in 31 states and the District of Columbia, and engages in selling prescription drugs (more than two-thirds of sales), health aids, cosmetics, beauty supplies, convenience foods and other merchandise. It is headquartered in East Pennsboro Township, Pennsylvania, near Camp Hill, and has about 90,000 employees including pharmacists and part-time employees, as of March 3, 2012. (Marketline.com)   Rite Aid Corp. also had a long history, which helps it become a mature company now. In 1958, a businessman named Alex Grass founded Rack Rite Distributors in Harrisburg, Pennsylvania to provide health and beauty aids and other sundries to grocery stores. In 1962, he had his first drugstore, called Thrif D Discount Center, in Scranton, Pennsylvania, which was an offshoot of Rack Rite Distributors. In 1965, pharmacy was added in its stores, and this chain was officially adopted its new name Rita Aid in 1968. At the same time, this company went to public and made its debut on the American Stock Exchange. After that, Rite Aid started to make many diverse acquisitions. For example, in the 1970s, it purchased nearly 300 stores, and by 1981 Rite Aid was the #3 drugstore chain, and sales exceeded $1 billion. During 1980s, approximately 900 stores were added in Rite Aid, due to acquisitions. On the other hand, the cost of expansion eroded Rite Aid's......

Words: 452 - Pages: 2

Rite Aid Analysis

...Rite Aid ------------------------------------------------- Company Statistics ------------------------------------------------- Company Rite Aid ------------------------------------------------- Exchange NYSE ------------------------------------------------- Ticker RAD ------------------------------------------------- Sector Consumer Staples ------------------------------------------------- Industry Retail Staples ------------------------------------------------- Recommendation Buy ------------------------------------------------- Current Price $5.68 ------------------------------------------------- Target Price $6.00 ------------------------------------------------- Market capitalization 5.268 B ------------------------------------------------- Shares outstanding 9.16 M ------------------------------------------------- ------------------------------------------------- Company Statistics ------------------------------------------------- Company Rite Aid ------------------------------------------------- Exchange NYSE ------------------------------------------------- Ticker RAD ------------------------------------------------- Sector Consumer Staples ------------------------------------------------- Industry Retail Staples ------------------------------------------------- Recommendation Buy ------------------------------------------------- Current......

Words: 3178 - Pages: 13

Rite of Passage

...Rites of Passage/Separation, initiation, and reintegration Rites of Passage are significant transition points in the lives of people. They occur often and in many ways throughout a lifetime and in all cultures. There is a marking or a celebration of times that are considered to be a special period of growth, a period of separation from the past and a transition or journey forward to a new stage of life often involving a challenge to change and become new, to mature or move into a different period of growth. These times are celebrated with rituals or ceremonies that include whole communities. A mythologist named Joseph Campbell “put forward the idea of a threefold rite of passage called the monomyth”. He used it in hero roles in legends and myths to illustrate how it applies to humanity as well. A rite of passage included three parts, separation, initiation, and reintegration. It had to do with the coming of a time to separate oneself from family, friends, old ways, or an old life. It is a time when one separates themselves from everyday surroundings and society and takes a ‘sacred voyage’ or journey to a special place, a sacred place. This place is often where one endures hardships or tests that cause a person to think about all they have learned and have been and who they really are and intend to be. This stage is often called the initiation and is marked by a challenge or struggle. It is a time of overcoming, a time of accomplishment and at its end......

Words: 1444 - Pages: 6

Rite Aid Store #6108 and the Leadership of Jeffery Pidlypchak

...Rite Aid Store #6108 and the Leadership of Jeffery Pidlypchak C200 Managing Organizations and Leading People September 10th, 2014 Rite Aid Store #6108 and the Leadership of Jeffery Pidlypchak Rite Aid Corporation is one of the leading pharmacy chains in America. The company operates approximately 4600 stores in 31 states, with a dominate presence on the east coast, and holds a status of being the nation’s third largest pharmacy retail chain (Our Story, n.d.). Store number 6108, located in Truckee, California is one of 25 stores in the district located in the Sierra Nevada’s and Sacramento area. The Truckee Rite Aid is the second highest grossing store in the district and has made great strides in the last two years of improving gross margin and controlling expenses. The store’s primary objectives are: meeting and beating sales goals, maintaining and increasing gross margin, controlling expenses within predetermined goals, increasing prescription counts, increasing customer satisfaction scores, and improving associate satisfaction scores. The store’s Primary leader is the Store Manager Jeffrey Pidlypchak, while the pharmacy is overseen, in partnership with the store manager, by Pharmacy Manager Robert Chan. Due to the store’s high amount of losses in the past, the store manager also partners with an in-store Asset Protection Agent to prevent and mitigate losses. The Store Manager leads a team comprised of an assistant manager, two to three supervisors, and......

Words: 4518 - Pages: 19

Grill Rite

...Case Study: Grill Rite Introduction: Grill Rite is an old-line, seasonal company that started out making wooden matches and then evolved into making electric barbecue grills. They sell five models of grills nationally. It is evident from the case study that the workers of Grill Rite are very loyal. Inventory is handled by a system of four warehouses, one central warehouse and three regional warehouses. The company stockpiles on purpose to ensure that the workforce has a stable income. On an annual basis, however, the output matches demand. There has been an increased amount of complaints from regional sales managers about poor customer service. Customers’ orders go unfilled or are late, due to shortages at the regional warehouse which is causing the company to lose sales. The regional warehouse managers began to increase their order sized from the main warehouse in order to maintain larger amounts of safety stock. This has increased inventory holding costs, and not solved the problem of stock-outs. On the other hand the main warehouse feels that their policy is to give preference to filing orders from “actual” customers and not to the regional warehouses. It is evident that the regional warehouses also supply to customers on a regional basis. This inventory issue is costing the company in lost orders and being stuck with stock holding costs. Problems: 1. The president’s stance on steady output conflicts with seasonal demand. 2. Having a single, centralized......

Words: 543 - Pages: 3

Rite Aide Case Study

...Rite Aid Corporation which ranks as the third largest retail drugstore chain in the United states, control about 2,380 drugstores in 28 states across professionals pharmacy service, a full selection of health and personal care products, an assortment of general products in the nation and in the District of Columbia ( Rite Aid, 2007 ). Rite Aid has a great management team to help them with their success their team includes Chairman, President and Chief Executive Officer, Special Advisor, Corporate Strategy ,Chief Operating Officer ,Chief Administrative Officer ,Executive Vice President – Pharmacy, Executive Vice President, Store Operations ,Executive Vice President and General Counsel( Rite Aid, 2007). Differentiate between management and leadership is very different for example, response to its huge losses, Rite Aid has said it expects to spend more than $94 million to reassess and restate its financial results for 1998 and 1999( ). Furthermore, that includes rerunning mainframe-based accounting systems and paying IT people overtime to work with internal and external accountants and auditors during the process. Still, Rite Aid does not plan to replace its combination homegrown Computer Corp. accounting system.Rite Aide challenged by the complication and lack of standard interfaces the finance and accounting functions support throughout the organization. Data is not formats or transported in standard border or structure. Manual work is required to fit data within budget codes......

Words: 1145 - Pages: 5

Rites of Passage

...Rites of Passage A rite of passage centers on a marked event and can spotlight an adolescent girl or boy reaching puberty such as the first day of school, marriage, baptism, or a first haircut. . Rite of passage in some societies can be pronounce by milestones and however it can be a long complex preparation. Generally rites of passage can show social values and beliefs that can be very important in various cultures. Puberty is a rite of passage, which number events in life take place and the events lead to adulthood and maturity. Puberty can be an especially, trying time for some an adolescence girl or boy. Girl During Puberty During puberty a girl’s body goes through emotional change such as psychical change, social change, and cognitive development. Puberty is the change in body size, proportions, motor performance, and sexual maturity. Girls tend to age two years earlier than boys. Girls have a growth spurt and their hips begin to grow wider and rounder and weight is gain in the upper arms, back, and thighs. Girls begin at the age of nine to grow at least 17% to 18% of adult height, generally six months prior to getting the first menstrual cycle. Usually during puberty girls need to increase activity or exercise and eat healthy food. Girls go through emotional changes during the menstrual period pubertal events, after the growth spurt. The psychological impact of girls during menstrual period can contribute to physical changes of a girl. Typically a girl......

Words: 1463 - Pages: 6

Rite of Passage

...Angela Hart ANT 101: Introduction to CULTURAL Anthropology Instructor: Kristen Akerele October 12, 2015 The Rite of Passage is the marking of an important event in many different cultures around the world. Many rite of passage have been used in some cultural for thousands of years and is continue to be used to this day. Some people have many questions about the rite of passages that are harming young children as young as six years old that are forced to have sex for the first time, the growing rate of teenagers being sexually active and sex trade. In this paper will discussing how teenage sex is effecting our youth in the Black community where we are raising teenage daughters and how a village in Malawi has a ritual where the take their boys and girls to camp to engage in sexual acts.. These sexual acts are being done in more places than we can think of as well according to our research. In this paper we will discuss how this rite of passage of sexual acts affect the people and what people are doing trying to stop this act from happening. In the Black community we are dealing with a rise in teenage pregnancy the rite of passage of this is the teenagers are being forced to step into adulthood before they are actually ready. In the Baptist community in which they grew up in we were raise to save ourselves for our husbands and then start a family. Usually in the community the teenage mother is forced to drop out of school after the baby is born because she......

Words: 1468 - Pages: 6

Rite Aid Case Analysis

...Rite Aid Corporation-Long Term Debt Rite Aid is one of the leading drug store chains within the United States. Rite Aid predominantly operates on the east and west coast with a high degree of competition from other drug store chains such as Walgreens and CVS. As a result of both the weak economic conditions along with the high degree of competition Rite Aid faces, I would expect to see a large amount of debt on Rite Aid’s 10K report for fiscal year ending February 27, 2010. A. a. Secured debt is protected by assets given up as collateral by the borrower to protect the lender in the event of default. Unsecured debt is not protected by any such collateral and is generally more risky. Secured debt restricts the use of assets. The restrictions placed on assets are one rational for separating both secured and unsecured debt items. b. Guaranteed debt can be defined as debt that has a guarantor or a secondary promise to pay the debt in the event the borrower defaults. Rite Aid’s subsidiaries have provided the guarantee according to note 11 of the 10K report. c. Senior - senior debt describes the debt first repaid in the event of bankruptcy. Senior is simply a term to describe a position of repayment in the event of bankruptcy. Fixed Rate – fixed rate refers to the interest rate on outstanding debt. If debt is fixed the interest rate is set at a predetermined rate and will not change regardless of market conditions. Convertible – the term convertible debt refers to......

Words: 1268 - Pages: 6

Rite Aid Financial Reporting Case Long Term Debt

...Long-Term Debt Concepts A. i. Secured debt of Rite-Aid is backed by and tied to specific assets of the corporation while unsecured debt is based on their credit-worthiness to pay this debt. Distinguishing between secured/unsecured debts provides needed information to investors, credit rating agencies, and lenders. ii. Guaranteed means a promise to answer for payment of debt or performance of some obligation if the entity liable fails to perform. Rite-Aid's wholly owned subsidiaries guarantee the debt. iii. Senior denotes the debt holders that have the highest rights of priority if a firm falls into bankruptcy. Fixed-rate is the term the means the interest rate remains constant over the term of the debt. Convertible is a type of bond that allows the holder to exchange the bond for common stock under certain conditions. iv. To finance the assets of the firm, corporations have to diversify their debt. Firms cannot realistically attach all debts to assets and the risk profile can vary significantly between secured and unsecured debt. Establishing credit worthiness is an the unsecured debt market is another key component of financing the business. Process B. Total debt on Feb 27, 2010 = $6,370,899,000. $51,502,000 is due within the coming fiscal year. On the B/S, LTD = $6,185,633,000 Lease financing obligations = $133,764,000, and current maturities of LTD and lease financing obligations = $51,502,000. The sum of these three accounts equals the total debt. ...

Words: 1323 - Pages: 6

The Last Rite

...The Last Rite by Lee Yu Hwa SYNOPSIS This short story, which is originally from China, is told from the point of view of a young Chinese man named Chou, who comes home from the city where he studies to visit his ailing grandmother. Here, he also gets reunited with the other members of his family with whom he has been quite distant with and is reminded why he left in the first place. He encounters a dilemma that would test him whether or not he obeys his family and goes back to the ways of a traditional Chinese or completely immerse himself into the “New China” where ideals are completely different and deals with the consequences of his actions. ANALYSIS A. Character Descriptions • The main character of “The Last Rite” is Chou, a young student who is apprehensive about going home after a long time. The only reason he did was because of his grandmother, with whom he had so many good memories. He was much closer to his grandmother than to his own parents. He is torn between sticking to the “Old China” or commit himself to the “New World”, where people are more open minded and liberal and whose principles really clashes with that of the traditional Chinese. • Chou’s grandmother is described in the story as someone who has been there for him during his entire childhood. Whenever Chou would have a problem with his parents, she is the one he runs to. She asks Chou to fulfill a promise which would greatly change his life. • Chou’s father was described......

Words: 1225 - Pages: 5

Rite-Aid Accounting Fraud

...Rite- Aid Accounting Fraud: How It Could Have Been Detected Abstract Martin Grass assumed leadership of Rite-Aid from his father in the mid-1990s. In the next 5 years Rite-Aid experienced rapid growth. The company was reporting higher earnings per share each year and a rise in stock prices only to discover it was all because of accounting fraud perpetrated by its senior executives. The SEC filed multiple charges listing the fraud perpetrated by senior management. There were warning signs to investors and creditors that things may not be as good as they seem. Accounting process and techniques could have detected the fraud and prevented Rite-Aid from having the largest financial restatement in history. In 1995 Martin Grass took over as chief executive officer (“CEO”) and chairman of the board of Rite-Aid Pharmacy, which is the third largest pharmacy in the nation. Under Grass, Rite-Aid started to acquire other pharmacy companies such as Perry Drug Stores, Harco Pharmacy and Thrifty Payless. Rite-Aid also purchased PCS Health Systems Inc., which was a pharmaceutical benefits management company. Rite-Aid had a generous compensation program for senior executives that included an annual bonus plan, stock option plan and long term incentive plan (“LTIP”). These programs were based on the company’s earnings per share (“EPS”) and stock price. If the EPS or stock price wasn’t met, then the executives didn’t receive the compensation. It was the company’s compensation program......

Words: 2788 - Pages: 12