x
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ANNUAL REPORT PURSUANT TO SECTION
15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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o
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TRANSITION REPORT PURSUANT TO
SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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Page
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REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
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1
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FINANCIAL
STATEMENTS:
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Statements of Net Assets Available for Benefits
as
of December 31, 2008 and 2007
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2
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Statement of Changes in Net Assets Available for
Benefits for
the Year Ended December 31, 2008
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3
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Notes to Financial Statements as of
December 31, 2008 and 2007, and for
the Year Ended December 31, 2008
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4–11
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SUPPLEMENTAL
SCHEDULE —
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Form
5500 — Schedule H, Line 4i — Schedule of Assets (Held at End of
Year) as of December 31, 2008
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13
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NOTE:
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All
other schedules required by Section 2520.103-10 of the Department of
Labor’s Rules and Regulations for Reporting and Disclosure under the
Employee Retirement Income Security Act of 1974 have been omitted because
they are not applicable.
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2008
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2007
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|||||||
ASSETS:
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||||||||
Participant-directed
investments — at fair value
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$ | 1,527,308,557 | $ | 2,048,706,981 | ||||
Contributions
receivable:
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||||||||
Employer
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4,498,792 | 25,869,231 | ||||||
Employee
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1,509,502 | |||||||
Total
contributions receivable
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4,498,792 | 27,378,733 | ||||||
Total
assets
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1,531,807,349 | 2,076,085,714 | ||||||
LIABILITIES
— Accrued Brooks Eckerd Plan administrative
expenses
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(634,052 | ) | ||||||
NET
ASSETS AVAILABLE FOR BENEFITS AT FAIR
VALUE
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1,531,807,349 | 2,075,451,662 | ||||||
ADJUSTMENTS
FROM FAIR VALUE TO CONTRACT
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||||||||
VALUE
FOR FULLY BENEFIT - RESPONSIVE
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||||||||
INVESTMENT
CONTRACTS
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3,046,085 | (373,197 | ) | |||||
NET
ASSETS AVAILABLE FOR BENEFITS
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$ | 1,534,853,434 | $ | 2,075,078,465 |
ADDITIONS:
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Employee
contributions
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$ | 141,311,257 | ||
Employer
contributions
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64,242,753 | |||
Rollover
contributions
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3,174,813 | |||
Plan
transfers
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583,027 | |||
Investment
income
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48,199,493 | |||
Total
additions
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257,511,343 | |||
DEDUCTIONS:
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Net
depreciation in fair value of investments
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607,813,900 | |||
Benefit
payments
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189,845,848 | |||
Administrative
expenses
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76,626 | |||
Total
deductions
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797,736,374 | |||
DECREASE
IN NET ASSETS AVAILABLE FOR BENEFITS
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(540,225,031 | ) | ||
NET
ASSETS AVAILABLE FOR BENEFITS — Beginning of year
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2,075,078,465 | |||
NET
ASSETS AVAILABLE FOR BENEFITS — End of year
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$ | 1,534,853,434 |
1.
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DESCRIPTION
OF THE PLAN
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2.
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SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES
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3.
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FAIR
VALUE MEASUREMENTS
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Quoted
Prices in
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Significant
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|||||||||||||||
Active
Markets
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Other
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Significant
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||||||||||||||
for
Identical
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Observable
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Unobservable
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||||||||||||||
Assets
(Level 1)
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Inputs
(Level 2)
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Inputs
(Level 3)
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Total
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Rite
Aid Common Stock
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$ | 1,008,174 | $ | 1,008,174 | ||||||||||||
Mutual
Funds
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781,708,566 | 781,708,566 | ||||||||||||||
Custom
Funds
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287,058,388 | 287,058,388 | ||||||||||||||
Common
and Collective Trusts
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14,997,242 | 14,997,242 | ||||||||||||||
Stable
Value Fund
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400,555,390 | 400,555,390 | ||||||||||||||
Participant
Loans
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41,980,797 | 41,980,797 | ||||||||||||||
Total
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$ | 1,069,775,128 | $ | 415,552,632 | 41,980,797 | $ | 1,527,308,557 |
For
the year ended December 31, 2008
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Participant
Notes Receivable
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Total
Fair Value
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Beginning
Balance
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$ | 44,299,121 | $ | 44,299,121 | ||||
Total
gains or losses (realized/unrealized)
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Purchases,
sales, issuances and settlements, net
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(2,318,324 | ) | (2,318,324 | ) | ||||
Transfers
in and/or out of Level 3
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Ending
Balance
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41,980,797 | 41,980,797 |
4.
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SYNTHETIC
GUARANTEED INVESTMENT CONTRACT
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2008
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2007
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|||||||
Average
yields:
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Based
on annualized earnings (1)
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4.80
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% |
5.05
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% | ||||
Based
on interest rate credited to participants (2)
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4.25
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4.47
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(1)
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Computed
by dividing the annualized one-day actual earnings of the contract on the
last day of the plan year by the fair value of the investments on the same
date.
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(2)
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Computed
by dividing the annualized one-day earnings credited to participants on
the last day of the plan year by the fair value of the investments on the
same date.
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5.
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INVESTMENTS
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2008
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2007
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Stable
Value Fund
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$ | 400,555,390 | $ | 335,140,366 | ||||
Vanguard
Institutional Index Fund
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107,524,315 | 176,492,110 | ||||||
Dodge
& Cox Balanced Fund
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97,692,192 | 156,999,786 | ||||||
Northern
Trust Global Advisors Large-Cap Growth Fund
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85,793,699 | 148,343,429 | ||||||
T.
Rowe Price Retirement 2020
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78,669,140 | 100,713,831 | ||||||
Northern
Trust Global Advisors International Equity Fund
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67,975,108 | 106,921,497 |
Investments:
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Rite
Aid Corporate Stock
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$ | (6,586,111 | ) | |
Penney
(J.C.) Common Stock
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(32,237,329 | ) | ||
Mutual
funds
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(408,819,914 | ) | ||
Custom
Funds
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(177,733,590 | ) | ||
Common
and Collective Trusts
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497,396 | |||
Guaranteed
Investment Contracts
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17,065,648 | |||
Net
appreciation (depreciation) in fair value of investments
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$ | (607,813,900 | ) |
6.
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TAX
STATUS
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7.
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PLAN
TERMINATION
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8.
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PARTY-IN-INTEREST
TRANSACTIONS
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9.
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CONTINGENCY
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10.
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RECONCILIATION
OF FINANCIALS TO FORM 5500
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Net
assets available for benefits per the financial
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statements
at contract value
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$ | 1,534,853,434 | ||
Adjustment
from contract value to fair value for fully
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benefit-responsive
investment contracts
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(3,046,085 | ) | ||
Net
assets available for benefits per Form 5500, Schedule H, Part I (line
L)
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$ | 1,531,807,349 |
Total
contributions
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$ | 208,728,823 | ||
Total
investment income
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48,199,493 | |||
Net
depreciation in fair value of investments
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(607,813,900 | ) | ||
Prior
year adjustment from fair value to contract value for
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(373,197 | ) | ||
fully
benefit-responsive investment contracts
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Current
year adjustment from fair value to contract value
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(3,046,085 | ) | ||
for
fully benefit-responsive investment contracts
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Total
loss per Form 5500, Schedule H, Part II (line 2d)
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(354,304,866 | ) |
At
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|||||||||
Identity
of Issuer, Borrower,
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Number
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Fair
Market
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|||||||
Lessor
or Similar Party and Description
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of
Shares
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Value
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Common
and collective trusts:
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*T.
Rowe Price
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Bond
Index Trust
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575,268 | $ | 14,997,242 | |||||
Mutual
Funds:
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*T.
Rowe Price
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Retirement
2020
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7,080,931 | 78,669,140 | ||||||
*T.
Rowe Price
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Retirement
2025
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8,438,455 | 67,001,336 | ||||||
*T.
Rowe Price
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Retirement
2015
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8,045,143 | 66,774,688 | ||||||
*T.
Rowe Price
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Retirement
2030
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5,745,724 | 64,122,281 | ||||||
*T.
Rowe Price
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Retirement
2035
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6,071,799 | 47,299,318 | ||||||
*T.
Rowe Price
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Retirement
2040
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4,183,334 | 46,351,346 | ||||||
*T.
Rowe Price
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Retirement
2010
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3,470,328 | 38,902,379 | ||||||
*T.
Rowe Price
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International
Equity Index Fund
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2,625,455 | 22,946,480 | ||||||
*T.
Rowe Price
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Retirement
2045
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2,465,794 | 18,197,562 | ||||||
*T.
Rowe Price
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Retirement
Income Fund
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1,488,552 | 15,361,858 | ||||||
*T.
Rowe Price
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Retirement
2005
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1,645,495 | 14,217,078 | ||||||
*T.
Rowe Price
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Extended
Equity Market Index Fund
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917,303 | 8,686,860 | ||||||
*T.
Rowe Price
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Retirement
2050
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406,778 | 2,522,022 | ||||||
*T.
Rowe Price
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Retirement
2055
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275,283 | 1,687,487 | ||||||
*T.
Rowe Price
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Insurance
Fund
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1,006 | 1,006 | ||||||
Vanguard
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Instl
Index Fund
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1,302,690 | 107,524,315 | ||||||
Dodge
& Cox
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Balanced
Fund
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1,905,817 | 97,692,192 | ||||||
Pimco
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Total
Return Instl
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7,239,066 | 73,404,130 | ||||||
Vanguard
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Small-Cap
Index Instl
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507,210 | 10,347,088 | ||||||
Total
mutual funds
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781,708,566 | ||||||||
Custom
Funds:
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Northern
Trust Global Advisors
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Large-Cap
Growth Fund
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10,971,061 | 85,793,699 | ||||||
Northern
Trust Global Advisors
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International
Equity Fund
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5,726,631 | 67,975,108 | ||||||
Northern
Trust Global Advisors
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Large-Cap
Value Fund
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5,657,907 | 51,373,793 | ||||||
Northern
Trust Global Advisors
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Small-Cap
Fund
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4,777,715 | 47,872,705 | ||||||
Northern
Trust Global Advisors
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Mid-Cap
Fund
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3,617,756 | 34,043,083 | ||||||
Total
custom funds
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287,058,388 | ||||||||
Stable
Value Fund Synthetic Guaranteed Investment
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Contract
— Prudential and *T. Rowe Price
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Stable
Value Fund
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32,759,860 | 400,555,390 | ||||||
Company
Stock Fund — *Rite Aid Corporation
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Company
Stock Fund
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3,252,175 | 1,008,174 | ||||||
*Participant
notes
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Loan
Fund**
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41,980,797 | |||||||
Total
Assets Held at End
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$ | 1,527,308,557 |
*
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Party-in-interest
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**
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The
loans range in interest rates from 4.0% to 10.5% and expire through
2021.
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THE
RITE AID 401(k) PLAN
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By:
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/s/ Chuck Carlsen
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Chuck
Carlsen, not in his individual capacity, but solely as an authorized
signatory for the Employee Benefits Administration
Committee
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Exhibit
Number
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Description
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23.1
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Consent
of Independent Registered Public Accounting
Firm
|