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Segment Reporting (Tables)

6 Months Ended

Aug. 27, 2022

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


	Retail		Pharmacy
	Pharmacy		Services		Eliminations⁽¹⁾		Consolidated
August 27, 2022:
Total Assets	$	6,124,452	$	2,255,466	$	(12,793)	$	8,367,125
Goodwill		43,492		583,444		—		626,936
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 August 27, 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 $12,793 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
August 27, 2022:
Revenues	$	4,231,791	$	1,727,241	$	(57,963)	$	5,901,069
Gross Profit		1,043,036		111,459		—		1,154,495
Adjusted EBITDA⁽²⁾		31,484		47,065		—		78,549
Additions to property and equipment and intangible assets		46,343		5,832		—		52,175
August 28, 2021:
Revenues	$	4,277,218	$	1,898,213	$	(62,431)	$	6,113,000
Gross Profit		1,140,362		105,562		—		1,245,924
Adjusted EBITDA⁽²⁾		69,369		36,791		—		106,160
Additions to property and equipment and intangible assets		50,548		4,687		—		55,235
Twenty-Six Week Period Ended
August 27, 2022:
Revenues	$	8,577,147	$	3,453,098	$	(114,593)	$	11,915,652
Gross Profit		2,140,393		210,831		—		2,351,224
Adjusted EBITDA⁽²⁾		105,166		73,513		—		178,679
Additions to property and equipment and intangible assets		124,894		12,705		—		137,599
August 28, 2021:
Revenues	$	8,628,900	$	3,770,495	$	(125,410)	$	12,273,985
Gross Profit		2,310,296		220,503		—		2,530,799
Adjusted EBITDA⁽²⁾		164,283		80,754		—		245,037
Additions to property and equipment and intangible assets		111,441		8,394		—		119,835

(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 Management’s Discussion and Analysis of Financial Condition and Results for additional details.

Schedule of reconciliation of net (loss) income to Adjusted EBITDA


	August 27,		August 28,		August 27,		August 28,
	2022		2021		2022		2021
	(13 weeks)		(13 weeks)		(26 weeks)		(26 weeks)
Net loss	$	(331,290)	$	(100,301)	$	(441,481)	$	(113,358)
Interest expense		52,533		48,592		100,652		97,713
Income tax expense		11,967		3,310		15,464		4,090
Depreciation and amortization		68,564		73,859		138,637		149,718
LIFO charge (credit)		10,121		(3,993)		10,121		(7,986)
Facility exit and impairment charges		45,845		11,353		112,416		20,184
Goodwill and intangible asset impairment charges		252,200		—		252,200		—
(Gain) loss on debt modifications and retirements, net		(41,312)		2,839		(41,312)		3,235
Merger and Acquisition-related costs		—		4,591		—		8,477
Stock-based compensation expense		4,735		5,792		8,069		8,603
Restructuring-related costs		12,805		9,584		35,451		15,516
Inventory write-downs related to store closings		1,094		798		9,049		1,270
Litigation and other contractual settlements		20,093		34,212		38,364		48,212
(Gain) loss on sale of assets, net		(29,001)		12,378		(58,197)		5,820
Other		195		3,146		(754)		3,543
Adjusted EBITDA	$	78,549	$	106,160	$	178,679	$	245,037