Interim Financial Results (Unaudited)

12 Months Ended

Mar. 04, 2017

Interim Financial Results (Unaudited)

25. Interim Financial Results (Unaudited)

	Fiscal Year 2017
	First Quarter			Second Quarter		Third Quarter			Fourth Quarter(2)			Year
Revenues	$	8,184,181		$	8,029,806	$	8,089,726		$	8,541,360		$	32,845,073
Cost of revenues		6,289,881			6,113,063		6,194,866			6,473,198			25,071,008
Selling, general and administrative expenses		1,793,247			1,778,247		1,773,862			1,897,003			7,242,359
Lease termination and impairment charges		5,781			7,233		7,265			35,015			55,294
Interest expense		105,113			105,388		106,309			115,181			431,991
Loss (gain) on sale of assets, net		1,056			174		501			(5,755	)		(4,024	)

		8,195,078			8,004,105		8,082,803			8,514,642			32,796,628

(Loss) income before income taxes		(10,897	)		25,701		6,923			26,718			48,445
Income tax (benefit) expense		(6,309	)		10,928		(8,087	)		47,860			44,392

Net (loss) income	$	(4,588	)	$	14,773	$	15,010		$	(21,142	)	$	4,053


Basic and diluted (loss) income per share(1)	$	(0.00	)	$	0.01	$	0.01		$	(0.02	)	$	0.00

	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

(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.

(2)

The interim financial results for the fourth quarter of fiscal 2017 includes 14 weeks.

During the fourth quarter of fiscal 2017, the Company recorded facilities impairment charges of $30,493 and a LIFO credit of $47,881 due to lower deflation on pharmacy generics as compared to a lower LIFO credit recognized at prior year end due to lower deflation on pharmacy generics.

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.