Segment Reporting (Tables)

3 Months Ended

Jun. 03, 2023

Segment Reporting

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

	Retail		Pharmacy
	Pharmacy		Services		Eliminations(1)		Consolidated
June 3, 2023:
Total Assets	$	5,762,566	$	1,897,726	$	(9,874)	$	7,650,418
Goodwill		43,492		312,944		—		356,436
March 4, 2023:
Total Assets	$	5,487,845	$	2,049,107	$	(9,590)	$	7,527,362
Goodwill		43,492		464,444		—		507,936

(1) As of June 3, 2023 and March 4, 2023, intersegment eliminations include intersegment accounts receivable of $9,874 and $9,590, 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
June 3, 2023:
Revenues	$	4,492,329	$	1,196,154	$	(35,321)	$	5,653,162
Gross Profit		1,086,863		91,663		—		1,178,526
Adjusted EBITDA(2)		70,049		21,666		—		91,715
Depreciation and amortization		55,469		10,426		—		65,895
LIFO charge		7,500		—		—		7,500
Stock-based compensation expense		723		358		—		1,081
Additions to property and equipment and intangible assets		40,439		7,064		—		47,503
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
Depreciation and amortization		56,108		13,965		—		70,073
LIFO charge		—		—		—		—
Stock-based compensation expense		3,102		232		—		3,334
Additions to property and equipment and intangible assets		78,551		6,873		—		85,424

(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 to Adjusted EBITDA

	June 3,		May 28,
	2023		2022
	(13 weeks)		(13 weeks)
Net loss	$	(306,409)	$	(85,441)
Interest expense		65,220		48,119
Income tax expense		1,493		3,497
Depreciation and amortization		65,895		70,073
LIFO charge		7,500		—
Facility exit and impairment charges		19,692		41,821
Goodwill and intangible asset impairment charges		151,500		—
Stock-based compensation expense		1,081		3,334
Restructuring-related costs		78,130		22,646
Inventory write-downs related to store closings		2,057		7,955
Litigation and other contractual settlements		11,050		18,271
Gain on sale of assets, net		(8,193)		(29,196)
Other		2,699		(949)
Adjusted EBITDA	$	91,715	$	100,130