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Segment Reporting (Tables)

6 Months Ended

Sep. 02, 2023

Segment Reporting

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


		Retail			Pharmacy
		Pharmacy			Services			Eliminations⁽¹⁾			Consolidated
September 2, 2023:
Total Assets		$	5,530,289		$	1,605,604		$	(9,941)		$	7,125,952
Goodwill			43,492			46,944			—			90,436
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 September 2, 2023 and March 4, 2023, intersegment eliminations include intersegment accounts receivable of $9,941 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
September 2, 2023:
Revenues		$	4,470,927		$	1,209,858		$	(34,704)		$	5,646,081
Gross Profit			978,602			116,994			—			1,095,596
Adjusted EBITDA⁽²⁾			(26,477)			43,186			—			16,709
Depreciation and amortization			56,985			12,044			—			69,029
LIFO charge			7,500			—			—			7,500
Stock-based compensation expense			773			295			—			1,068
Additions to property and equipment and intangible assets			37,894			6,689			—			44,583
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
Depreciation and amortization			56,679			11,885			—			68,564
LIFO charge			10,121			—			—			10,121
Stock-based compensation expense			4,496			239			—			4,735
Additions to property and equipment and intangible assets			46,343			5,832			—			52,175
Twenty-Six Week Period Ended
September 2, 2023:
Revenues		$	8,963,256		$	2,406,012		$	(70,025)		$	11,299,243
Gross Profit			2,065,465			208,657			—			2,274,122
Adjusted EBITDA⁽²⁾			43,572			64,852			—			108,424
Depreciation and amortization			112,454			22,470			—			134,924
LIFO charge			15,000			—			—			15,000
Stock-based compensation expense			1,496			653			—			2,149
Additions to property and equipment and intangible assets			78,333			13,753			—			92,086
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
Depreciation and amortization			112,787			25,850			—			138,637
LIFO charge			10,121			—			—			10,121
Stock-based compensation expense			7,598			471			—			8,069
Additions to property and equipment and intangible assets			124,894			12,705			—			137,599

(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 to Adjusted EBITDA


		September 2,			August 27,			September 2,			August 27,
		2023			2022			2023			2022
		(13 weeks)			(13 weeks)			(26 weeks)			(26 weeks)
Net loss		$	(1,009,794)		$	(332,716)		$	(1,316,203)		$	(418,157)
Interest expense			72,658			52,533			137,878			100,652
Income tax expense			2,338			11,967			3,831			15,464
Depreciation and amortization			69,029			68,564			134,924			138,637
LIFO charge			7,500			10,121			15,000			10,121
Facility exit and impairment charges			300,525			47,271			320,217			89,092
Goodwill and intangible asset impairment charges			295,490			252,200			446,990			252,200
Gain on debt modifications and retirements, net			—			(41,312)			—			(41,312)
Stock-based compensation expense			1,068			4,735			2,149			8,069
Restructuring-related costs			85,709			12,805			163,839			35,451
Inventory write-downs related to store closings			8,414			1,094			10,471			9,049
Litigation and other contractual settlements			205,041			20,093			216,091			38,364
Gain on sale of assets, net			(24,087)			(29,001)			(32,280)			(58,197)
Other			2,818			195			5,517			(754)
Adjusted EBITDA		$	16,709		$	78,549		$	108,424		$	178,679