Interim Financial Results (Unaudited)

12 Months Ended

Feb. 27, 2016

Interim Financial Results (Unaudited)

Interim Financial Results (Unaudited)

25. Interim Financial Results (Unaudited)

	Fiscal Year 2016
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter			Year
Revenues	$	6,647,561	$	7,664,776	$	8,154,184	$	8,270,136		$	30,736,657
Cost of revenues		4,788,031		5,742,485		6,151,305		6,228,581			22,910,402
Selling, general and administrative expenses		1,699,585		1,725,826		1,777,647		1,810,288			7,013,346
Lease termination and impairment charges		5,022		9,637		7,011		26,753			48,423
Interest expense		123,607		115,410		106,879		103,678			449,574
Loss on debt retirements, net		—		33,205		—		—			33,205
Loss (gain) on sale of assets, net		39		281		3,331		(348	)		3,303
		6,616,284		7,626,844		8,046,173		8,168,952			30,458,253
Income before income taxes		31,277		37,932		108,011		101,184			278,404
Income tax expense		12,441		16,463		48,468		35,567			112,939
Net income	$	18,836	$	21,469	$	59,543	$	65,617		$	165,465
Basic income per share(1)	$	0.02	$	0.02	$	0.06	$	0.06		$	0.16
Diluted income per share(1)	$	0.02	$	0.02	$	0.06	$	0.06		$	0.16

	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 revenues		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

(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 second quarter of 2016, the Company recorded a loss on debt retirement related to the August 2015 redemption of the outstanding 8.00% Notes as discussed in Note 14. During the fourth quarter of fiscal 2016, the Company recorded facilities impairment charges of $16,401 and a LIFO credit of $6,796 due to lower deflation on pharmacy generics as compared to a larger LIFO credit recognized at prior year end caused by lower pharmacy inventory due to its Purchasing and Delivery Arrangement.

        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 14. 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.