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Segment Reporting (Tables)
 9 Months Ended
Dec. 01, 2018
Segment Reporting  
Schedule of balance sheet information for the Company's reportable segments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Retail 

    

Pharmacy 

    

 

 

    

 

 

 

 

Pharmacy 

 

Services 

 

Eliminations (1)

 

Consolidated 

December 1, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

5,406,813

 

$

2,692,023

 

$

(15,878)

 

$

8,082,958

Goodwill

 

 

43,492

 

 

1,064,643

 

 

 —

 

 

1,108,135

Additions to property and equipment and intangible assets

 

 

159,706

 

 

11,085

 

 

 —

 

 

170,791

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 December 1, 2018 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 $15,878 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 

Thirteen Week Period Ended

 

 

 

 

 

 

 

 

 

 

 

 

December 1, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

3,976,719

 

$

1,525,837

 

$

(52,496)

 

$

5,450,060

Gross Profit

 

 

1,079,584

 

 

102,504

 

 

 —

 

 

1,182,088

Adjusted EBITDA (2)

 

 

101,225

 

 

41,566

 

 

 —

 

 

142,791

December 2, 2017:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

3,959,002

 

$

1,445,140

 

$

(50,972)

 

$

5,353,170

Gross Profit

 

 

1,087,888

 

 

98,835

 

 

 —

 

 

1,186,723

Adjusted EBITDA (2)

 

 

101,699

 

 

40,363

 

 

 —

 

 

142,062

Thirty-Nine Week Period Ended

 

 

 

 

 

 

 

 

 

 

 

 

December 1, 2018:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

11,785,996

 

$

4,630,410

 

$

(156,494)

 

$

16,259,912

Gross Profit

 

 

3,200,678

 

 

311,310

 

 

 —

 

 

3,511,988

Adjusted EBITDA (2)

 

 

308,972

 

 

120,392

 

 

 —

 

 

429,364

December 2, 2017:

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

11,833,195

 

$

4,451,212

 

$

(149,703)

 

$

16,134,704

Gross Profit

 

 

3,203,270

 

 

307,069

 

 

 —

 

 

3,510,339

Adjusted EBITDA (2)

 

 

266,777

 

 

138,237

 

 

 —

 

 

405,014

(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 (Loss), Adjusted Net Income (Loss) 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

 

Thirty-Nine Week

 

 

Period Ended

 

Period Ended

 

 

December 1,

 

December 2,

 

December 1,

 

December 2,

 

    

2018

    

2017(a)

    

2018

    

2017(a)

 

 

(dollars in thousands)

Net (loss) income

 

$

(17,250)

 

$

(18,182)

    

$

(411,325)

 

$

134,141

Interest expense

 

 

56,008

 

 

50,308

 

 

175,033

 

 

152,165

Income tax (benefit) expense

 

 

(1,471)

 

 

(16,061)

 

 

(117,527)

 

 

89,268

Depreciation and amortization expense

 

 

86,685

 

 

95,764

 

 

270,957

 

 

292,448

LIFO charge

 

 

5,987

 

 

6,784

 

 

19,311

 

 

20,393

Lease termination and impairment charges

 

 

2,628

 

 

3,939

 

 

52,096

 

 

11,090

Goodwill and intangible asset impairment charges

 

 

 —

 

 

 —

 

 

375,190

 

 

 —

Loss on debt retirements, net

 

 

 —

 

 

 —

 

 

554

 

 

 —

Merger and Acquisition-related costs

 

 

4,175

 

 

6,550

 

 

30,394

 

 

17,274

Stock based compensation expense

 

 

1,317

 

 

7,186

 

 

11,563

 

 

22,550

Inventory write-downs related to store closings

 

 

421

 

 

2,055

 

 

5,554

 

 

5,821

Litigation settlement

 

 

 —

 

 

 —

 

 

18,000

 

 

 —

(Gain) loss on sale of assets, net

 

 

(382)

 

 

205

 

 

(11,206)

 

 

(20,623)

Walgreens Boots Alliance merger termination fee

 

 

 —

 

 

 —

 

 

 —

 

 

(325,000)

Other

 

 

4,673

 

 

3,514

 

 

10,770

 

 

5,487

Adjusted EBITDA

 

$

142,791

 

$

142,062

 

$

429,364

 

$

405,014

(a)

During the thirty-nine week period ended December 1, 2018, 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 the thirteen and thirty-nine week periods ended December 2, 2017 to conform with the revised definition and present separate reconciling items previously included in Other.