Segment Reporting (Tables)

12 Months Ended

Feb. 29, 2020

Segment Reporting

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

	Retail		Pharmacy
	Pharmacy		Services		Eliminations(1)		Consolidated
February 29, 2020:
Total Assets	$	6,757,196	$	2,709,737	$	(14,564)	$	9,452,369
Goodwill		43,492		1,064,644		—		1,108,136
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

(1) As of February 29, 2020 and March 2, 2019, intersegment eliminations include netting of the Pharmacy Services segment long-term deferred tax liability of $0 against the Retail Pharmacy segment long-term deferred tax asset for consolidation purposes in accordance with ASC 740, and intersegment accounts receivable of $14,564 and $14,459, 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
February 29, 2020:
Revenues	$	15,616,186	$	6,559,560	$	(247,353)	$	21,928,393
Gross Profit		4,274,836		451,922		—		4,726,758
Adjusted EBITDA(2)		370,435		167,776		—		538,211
Additions to property and equipment and intangible assets		192,489		21,897		—		214,386
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
Additions to property and equipment and intangible assets		228,079		16,610		—		244,689
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
Additions to property and equipment and intangible assets		199,437		15,327		—		214,764

(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

	February 29,		March 2,		March 3,
	2020		2019		2018
	(52 weeks)		(52 weeks)		(52 weeks)
Net loss from continuing operations	$	(469,219)	$	(666,954)	$	(349,532)
Interest expense		229,657		227,728		202,768
Income tax expense		387,607		77,477		305,987
Depreciation and amortization		328,277		357,882		386,057
LIFO (credit) charge		(64,804)		23,354		(28,827)
Lease termination and impairment charges		42,843		107,994		58,765
Goodwill and intangible asset impairment charges		—		375,190		261,727
(Gain) loss on debt retirements, net		(55,692)		554		—
Merger and Acquisition-related costs		3,599		37,821		24,283
Stock-based compensation expense		16,087		12,115		25,793
Restructuring-related costs		105,642		4,704		—
Inventory write-downs related to store closings		4,652		13,487		7,586
Litigation settlement		—		18,000		—
Loss (gain) on sale of assets, net		4,226		(38,012)		(25,872)
Walgreens Boots Alliance merger termination fee		—		—		(325,000)
Other		5,336		12,104		16,119
Adjusted EBITDA from continuing operations	$	538,211	$	563,444	$	559,854

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