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Manufacturer Rebates Receivables
12 Months Ended
Mar. 04, 2023
Manufacturer Rebates Receivables  
Manufacturer Rebates Receivables

11. Manufacturer Rebates Receivables

The Pharmacy Services Segment has manufacturer rebates receivables of $357,699 and $535,620 included in Accounts receivable, net of an allowance for uncollectible rebates of $8,680 and $18,796, as of March 4, 2023 and February 26, 2022, respectively.

During the thirteen-week period ended February 26, 2022, the Company reassessed its historical policy for estimating its allowance for manufacturer rebate receivables and concluded that, due to changes in its business practices and other market conditions, certain amounts within the outstanding receivable had an increased risk of uncollectability. As a result, the Company increased its allowance for manufacturer rebate receivables by $15,068, which was recorded as an increase to costs of revenue during the thirteen-week period ended February 26, 2022. The Company determined that this change in estimate is a non-recurring item that should be added back to Adjusted EBITDA (see “Adjusted EBITDA, Adjusted Net Income (Loss), Adjusted Net Income (Loss) per Diluted Share and Other Non GAAP Measures” for details).