Segment Reporting (Tables)

6 Months Ended

Aug. 29, 2015

Segment Reporting

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

	Retail Pharmacy		Pharmacy Services		Intersegment Eliminations (1)			Consolidated
Thirteen Week Period Ended
August 29, 2015:
Revenues	$	6,647,243	$	1,071,889	$	(54,356	)	$	7,664,776
Gross Profit	1,860,513		61,778		—			1,922,291
Adjusted EBITDA	313,602		33,222		—			346,824
August 30, 2014:
Revenues	$	6,522,584	$	—	$	—		$	6,522,584
Gross Profit	1,894,579		—		—			1,894,579
Adjusted EBITDA	364,166		—		—			364,166
Twenty-Six Week Period Ended
August 29, 2015:
Revenues	$	13,294,804	$	1,071,889	$	(54,356	)	$	14,312,337
Gross Profit	3,720,043		61,778		—			3,781,821
Adjusted EBITDA	612,865		33,222		—			646,087
August 30, 2014:
Revenues	$	12,988,115	$	—	$	—		$	12,988,115
Gross Profit	3,697,558		—		—			3,697,558
Adjusted EBITDA	646,779		—		—			646,779

(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.

Schedule of reconciliation of net income to Adjusted EBITDA

	Thirteen Week Period Ended				Twenty-Six Week Period Ended
	August 29, 2015		August 30, 2014		August 29, 2015		August 30, 2014
	(dollars in thousands)
Net income	$	21,469	$	127,849	$	40,305	$	169,295
Interest expense	115,410		100,950		239,017		201,770
Income tax expense	16,463		19,860		28,904		31,741
Depreciation and amortization expense	127,699		101,484		237,348		204,589
LIFO charges	5,986		1,544		11,973		3,089
Lease termination and impairment charges	9,637		7,111		14,659		11,959
Loss on debt retirements, net	33,205		—		33,205		—
Other	16,955		5,368		40,676		24,336
Adjusted EBITDA	$	346,824	$	364,166	$	646,087	$	646,779

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

	Retail Pharmacy		Pharmacy Services		Eliminations (2)			Consolidated
August 29, 2015:
Total Assets	$	8,848,115	$	3,310,325	$	(179,209	)	$	11,979,231
Goodwill	76,124		1,457,703		—			1,533,827
Additions to property and equipment and intangible assets	314,774		371		—			315,145
February 28, 2015:
Total Assets	$	8,863,252	$	—	$	—		$	8,863,252
Goodwill	76,124		—		—			76,124
Additions to property and equipment and intangible assets	539,386		—		—			539,386

(2) Intersegment eliminations include netting of the Pharmacy Services segment long-term deferred tax liability of $143,000 against the Retail Pharmacy segment long-term deferred tax asset for consolidation purposes in accordance with ASC 740, and intersegment accounts receivable of $36,209, as of August 29, 2015, 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.