Segment Reporting (Tables)

3 Months Ended

May 28, 2022

Segment Reporting

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

	Retail		Pharmacy
	Pharmacy		Services		Eliminations(1)		Consolidated
May 28, 2022:
Total Assets	$	6,101,168	$	2,464,224	$	(15,619)	$	8,549,773
Goodwill		43,492		835,644		—		879,136
February 26, 2022:
Total Assets	$	6,068,594	$	2,482,232	$	(21,823)	$	8,529,003
Goodwill		43,492		835,644		—		879,136

(1) As of May 28, 2022 and February 26, 2022, 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 $15,619 and $21,823, 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 28, 2022:
Revenues	$	4,345,356	$	1,725,857	$	(56,630)	$	6,014,583
Gross Profit		1,097,357		99,372		—		1,196,729
Adjusted EBITDA(2)		73,682		26,448		—		100,130
Additions to property and equipment and intangible assets		78,551		6,873		—		85,424
May 29, 2021:
Revenues	$	4,351,682	$	1,872,282	$	(62,979)	$	6,160,985
Gross Profit		1,169,934		114,941		—		1,284,875
Adjusted EBITDA(2)		94,914		43,963		—		138,877
Additions to property and equipment and intangible assets		60,893		3,707		—		64,600

(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 28,		May 29,
	2022		2021
	(13 weeks)		(13 weeks)
Net loss	$	(110,191)	$	(13,057)
Interest expense		48,119		49,121
Income tax expense		3,497		780
Depreciation and amortization		70,073		75,859
LIFO credit		—		(3,993)
Facility exit and impairment charges		66,571		8,831
Loss on debt retirements, net		—		396
Merger and Acquisition-related costs		—		3,886
Stock-based compensation expense		3,334		2,811
Restructuring-related costs		22,646		5,932
Inventory write-downs related to store closings		7,955		472
Litigation and other contractual settlements		18,271		14,000
Gain on sale of assets, net		(29,196)		(6,558)
Other		(949)		397
Adjusted EBITDA	$	100,130	$	138,877