Segment Reporting (Tables)

12 Months Ended

Mar. 02, 2019

Segment Reporting

Schedule of balance sheet information for the Company's reportable segments

	Retail		Pharmacy
	Pharmacy		Services		Eliminations(1)		Consolidated
March 2, 2019:
Total Assets	$	5,071,055	$	2,534,771	$	(14,459)	$	7,591,367
Goodwill		43,492		1,064,644		—		1,108,136
Additions to property and equipment and intangible assets		228,079		16,610		—		244,689
March 3, 2018:
Total Assets	$	6,089,343	$	2,954,953	$	(54,969)	$	8,989,327
Goodwill		43,492		1,377,628		—		1,421,120
Additions to property and equipment and intangible assets		199,437		15,327		—		214,764

(1) As of March 2, 2019 and March 3, 2018, intersegment eliminations include netting of the Pharmacy Services segment long-term deferred tax liability of $0 and $38,713 , respectively, against the Retail Pharmacy segment long-term deferred tax asset for consolidation purposes in accordance with ASC 740, and intersegment accounts receivable of $14,459 and $16,256, respectively, that represents amounts owed from the Pharmacy Services segment to the Retail Pharmacy segment that are created when Pharmacy Services segment customers use Retail Pharmacy segment stores to purchase covered products.

Schedule of reconciliation of the Company's business segments to the condensed consolidated financial statements

	Retail		Pharmacy		Intersegment
	Pharmacy		Services		Eliminations(1)		Consolidated
March 2, 2019:
Revenues	$	15,757,152	$	6,093,688	$	(211,283)	$	21,639,557
Gross Profit		4,258,716		417,636		—		4,676,352
Adjusted EBITDA(2)		405,206		158,238		—		563,444
March 3, 2018:
Revenues	$	15,832,625	$	5,896,669	$	(200,326)	$	21,528,968
Gross Profit		4,372,373		407,732		—		4,780,105
Adjusted EBITDA(2)		388,320		171,534		—		559,854
March 4, 2017:
Revenues	$	16,766,620	$	6,393,884	$	(232,964)	$	22,927,540
Gross Profit		4,671,975		392,732		—		5,064,707
Adjusted EBITDA(2)		559,653		188,235		—		747,888

(1) Intersegment eliminations include intersegment revenues and corresponding cost of revenues that occur when Pharmacy Services segment customers use Retail Pharmacy segment stores to purchase covered products. When this occurs, both the Retail Pharmacy and Pharmacy Services segments record the revenue on a stand-alone basis.

(2) See the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Continuing Operations—Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share and Other Non-GAAP Measures” for additional details.

Schedule of reconciliation of net (loss) income to Adjusted EBITDA

	March 2,		March 3,		March 4,
	2019		2018		2017
	(52 weeks)		(52 weeks)(a)		(53 weeks)(a)
Net (loss) income from continuing operations	$	(666,954)	$	(349,532)	$	4,080
Interest expense		227,728		202,768		200,065
Income tax expense		77,477		305,987		44,438
Depreciation and amortization		357,882		386,057		407,366
LIFO charge (credit)		23,354		(28,827)		(3,721)
Lease termination and impairment charges		107,994		58,765		45,778
Goodwill and intangible asset impairment charges		375,190		261,727		—
Loss on debt retirements, net		554		—		—
Merger and Acquisition-related costs		37,821		24,283		14,066
Stock-based compensation expense		12,115		25,793		23,482
Restructuring-related costs		4,704		—		—
Inventory write-downs related to store closings		13,487		7,586		5,925
Litigation settlement		18,000		—		—
Gain on sale of assets, net		(38,012)		(25,872)		(6,649)
Walgreens Boots Alliance merger termination fee		—		(325,000)		—
Other		12,104		16,119		13,058
Adjusted EBITDA from continuing operations	$	563,444	$	559,854	$	747,888

(a) During fiscal 2019, the Company revised its definition of Adjusted EBITDA to no longer exclude the impact of revenue deferrals related to its customer loyalty program and further revised its disclosure by presenting certain amounts previously included within Other as separate reconciling items. Consequently, the Company revised Adjusted EBITDA for fiscal 2018 and fiscal 2017 to conform with the revised definition and present separate reconciling items previously included in Other.