Segment Reporting (Tables)

3 Months Ended

May 28, 2016

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

	Retail Pharmacy		Pharmacy Services		Intersegment Eliminations(1)			Consolidated
May 28, 2016:
Revenues	$	6,675,548	$	1,602,359	$	(93,726	)	$	8,184,181
Gross Profit	1,805,367		88,933		—			1,894,300
Adjusted EBITDA(2)	244,827		41,175		—			286,002
May 30, 2015:
Revenues	$	6,647,561	$	—	$	—		$	6,647,561
Gross Profit	1,859,530		—		—			1,859,530
Adjusted EBITDA(2)	299,263		—		—			299,263

(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 “Adjusted EBITDA, Adjusted Net Income, Adjusted Net Income per Diluted Share and Other Non-GAAP Measures” in MD&A for additional details.

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

	Thirteen Week Period Ended
	May 28, 2016			May 30, 2015
	(dollars in thousands)
Net (loss) income	$	(4,588	)	$	18,836
Interest expense	105,113			123,607
Income tax (benefit) expense	(6,309		)	12,441
Depreciation and amortization expense	138,788			109,649
LIFO charge	13,751			5,987
Lease termination and impairment charges	5,781			5,022
Other	33,466			23,721

Adjusted EBITDA	$	286,002		$	299,263

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

	Retail Pharmacy		Pharmacy Services		Eliminations(2)			Consolidated
May 28, 2016:
Total Assets	$	8,409,623	$	2,984,357	$	(139,033	)	$	11,254,947
Goodwill	76,124		1,637,351		—			1,713,475
Additions to property and equipment and intangible assets	119,780		2,678		—			122,458
February 27, 2016:
Total Assets	$	8,468,186	$	2,948,548	$	(139,724	)	$	11,277,010
Goodwill	76,124		1,637,351		—			1,713,475
Additions to property and equipment and intangible assets	667,719		2,276		—			669,995

(2)

As of May 28, 2016 and February 27, 2016, intersegment eliminations include netting of the Pharmacy Services segment long-term deferred tax liability of $118,991 and $116,027, respectively, against the Retail Pharmacy segment long-term deferred tax asset for consolidation purposes in accordance with ASC 740, and intersegment accounts receivable of $20,042 and $23,697, 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.