Segment Reporting (Tables)

3 Months Ended

May 30, 2020

Segment Reporting

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

	Retail		Pharmacy
	Pharmacy		Services		Eliminations(1)		Consolidated
May 30, 2020:
Total Assets	$	6,815,598	$	2,721,741	$	(16,465)	$	9,520,874
Goodwill		43,492		1,064,644		—		1,108,136
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

(1) As of May 30, 2020 and February 29, 2020, 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 $16,465 and $14,564, 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
May 30, 2020:
Revenues	$	4,123,271	$	1,977,246	$	(73,141)	$	6,027,376
Gross Profit		1,081,536		116,783		—		1,198,319
Adjusted EBITDA(2)		62,982		44,410		—		107,392
Additions to property and equipment and intangible assets		36,607		2,567		—		39,174
June 1, 2019:
Revenues	$	3,864,808	$	1,566,292	$	(58,511)	$	5,372,589
Gross Profit		1,030,495		96,228		—		1,126,723
Adjusted EBITDA(2)		84,008		26,339		—		110,347
Additions to property and equipment and intangible assets		44,244		4,947		—		49,191

(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

	May 30,		June 1,
	2020		2019
	(13 weeks)		(13 weeks)
Net loss from continuing operations	$	(72,702)	$	(99,339)
Interest expense		50,547		58,270
Income tax (benefit) expense		(8,018)		7,374
Depreciation and amortization		79,103		83,926
LIFO (credit) charge		(12,066)		7,489
Lease termination and impairment charges		3,753		478
Intangible asset impairment charges		29,852		—
Merger and Acquisition-related costs		—		3,085
Stock-based compensation expense		1,874		5,380
Restructuring-related costs		35,735		43,350
Inventory write-downs related to store closings		834		841
Gain on sale of assets, net		(2,260)		(2,712)
Other		740		2,205
Adjusted EBITDA from continuing operations	$	107,392	$	110,347