Segment Reporting (Tables)

9 Months Ended

Nov. 27, 2021

Segment Reporting

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

	Retail		Pharmacy
	Pharmacy		Services		Eliminations(1)		Consolidated
November 27, 2021:
Total Assets	$	6,671,781	$	2,841,096	$	(13,753)	$	9,499,124
Goodwill		43,492		1,064,644		—		1,108,136
February 27, 2021:
Total Assets	$	6,613,370	$	2,736,546	$	(14,512)	$	9,335,404
Goodwill		43,492		1,064,644		—		1,108,136

(1) As of November 27, 2021 and February 27, 2021, 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 $13,753 and $14,512, 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
November 27, 2021:
Revenues	$	4,432,508	$	1,858,830	$	(62,458)	$	6,228,880
Gross Profit		1,233,237		101,146		—		1,334,383
Adjusted EBITDA(2)		125,931		28,862		—		154,793
Additions to property and equipment and intangible assets		44,501		4,954		—		49,455
November 28, 2020:
Revenues	$	4,109,592	$	2,084,402	$	(76,956)	$	6,117,038
Gross Profit		1,079,708		123,391		—		1,203,099
Adjusted EBITDA(2)		88,557		48,848		—		137,405
Additions to property and equipment and intangible assets		67,727		2,708		—		70,435
Thirty-Nine Week Period Ended
November 27, 2021:
Revenues	$	13,061,408	$	5,629,325	$	(187,868)	$	18,502,865
Gross Profit		3,543,533		321,649		—		3,865,182
Adjusted EBITDA(2)		290,214		109,616		—		399,830
Additions to property and equipment and intangible assets		155,942		13,348		—		169,290
November 28, 2020:
Revenues	$	12,250,775	$	6,100,026	$	(224,417)	$	18,126,384
Gross Profit		3,223,157		338,606		—		3,561,763
Adjusted EBITDA(2)		273,879		122,521		—		396,400
Additions to property and equipment and intangible assets		146,455		9,637		—		156,092

(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

	November 27,		November 28,		November 27,		November 28,
	2021		2020		2021		2020
	(13 weeks)		(13 weeks)		(39 weeks)		(39 weeks)
Net (loss) income from continuing operations	$	(36,058)	$	4,324	$	(149,416)	$	(81,575)
Interest expense		47,794		50,835		145,507		151,389
Income tax (benefit) expense		(1,175)		437		2,915		(7,534)
Depreciation and amortization		72,973		83,336		222,691		249,556
LIFO charge (credit)		8,886		(9,487)		900		(30,303)
Facility exit and impairment charges		47,455		7,453		67,639		22,734
Intangible asset impairment charges		—		—		—		29,852
Loss (gain) on debt modifications and retirements, net		—		—		3,235		(5,274)
Merger and Acquisition-related costs		3,642		1,136		12,119		1,136
Stock-based compensation expense		217		2,867		8,820		8,677
Restructuring-related costs		9,657		12,175		25,173		71,096
Inventory write-downs related to store closings		86		704		1,356		2,596
Litigation settlements		2,000		—		50,212		—
Gain on sale of assets, net		(5,899)		(16,305)		(79)		(17,473)
Loss on Bartell acquisition		5,346		—		5,346		—
Other		(131)		(70)		3,412		1,523
Adjusted EBITDA from continuing operations	$	154,793	$	137,405	$	399,830	$	396,400