Interim Financial Results (Unaudited)

12 Months Ended

Feb. 28, 2015

Interim Financial Results (Unaudited)

Interim Financial Results (Unaudited)

22. Interim Financial Results (Unaudited)

	Fiscal Year 2015
	First Quarter			Second Quarter			Third Quarter			Fourth 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

	Fiscal Year 2014
	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Year
Revenues	$	6,293,057		$	6,278,165		$	6,357,732		$	6,597,459		$	25,526,413
Cost of goods sold		4,472,066			4,461,804			4,557,066			4,711,743			18,202,679
Selling, general and administrative expenses		1,609,261			1,602,931			1,632,299			1,716,671			6,561,162
Lease termination and impairment charges		10,972			11,390			1,672			17,270			41,304
Interest expense		113,064			106,716			102,819			101,992			424,591
Loss on debt retirements, net		—			62,172			271			—			62,443
(Gain) loss on sale of assets, net		(5,180	)		(1,885	)		(9,331	)		412			(15,984	)
		6,200,183			6,243,128			6,284,796			6,548,088			25,276,195
Income before income taxes		92,874			35,037			72,936			49,371			250,218
Income tax expense (benefit)		3,212			2,210			1,388			(6,006	)		804
Net income	$	89,662		$	32,827		$	71,548		$	55,377		$	249,414
Basic income per share(1)	$	0.10		$	0.03		$	0.05		$	0.06		$	0.23
Diluted income per share(1)	$	0.09		$	0.03		$	0.04		$	0.06		$	0.23

(1) Income per share amounts for each quarter may not necessarily total to the yearly income per share due to the weighting of shares outstanding on a quarterly and year-to-date basis.

        During the third quarter of 2015, the Company recorded a loss on debt retirement related to the October 2014 redemption of the outstanding 10.25% senior notes due 2019 as discussed in Note 13. During the fourth quarter of fiscal 2015, the Company recorded facilities impairment charges of $13,105 and a LIFO credit of $23,489 due to lower pharmacy inventory in both its stores and distribution centers in connection with its Purchasing and Delivery Arrangement as compared to a LIFO charge recognized at prior year end caused by higher pharmacy inflation rates.

        During the second quarter of 2014, the Company recorded a loss on debt retirement related to the July 2013 refinancing as discussed in Note 13. During the fourth quarter of fiscal 2014, the Company recorded facilities impairment charges of $7,877 and LIFO expense of $44,142 due to higher pharmacy inflation rates at year end as compared to significant deflation associated with generic products recognized at prior year end.