BUSINESS COMBINATIONS

6 Months Ended

Aug. 01, 2015

Business Combinations [Abstract]

BUSINESS COMBINATIONS

NOTE 11: BUSINESS COMBINATIONS

On April 10, 2015, we completed the stock purchase agreement to acquire Reeves-Sain Drug Store, Inc., a provider of retail and specialty pharmaceutical services. The total consideration for the purchase was approximately $67.0 million, less working capital adjustments of $10.2 million, which yielded an adjusted purchase consideration of $56.8 million. The adjusted consideration consisted of $42.8 million in cash at the time of closing and $13.0 million in notes payable in three equal installments on January 31^st of 2021, 2022 and 2023. The sellers have a potential to earn additional contingent consideration if certain growth objectives are met for which the Company has accrued an additional $1.0 million.

A summary of the preliminary purchase price allocation for Reeves-Sain Drug Store, Inc. is as follows:

Total purchase consideration:
Cash	$	42,757.0
Notes payable		13,000.0
Contingent liability		1,000.0
Total purchase consideration	$	56,757.0
Allocation of the purchase consideration:
Accounts receivables	$	14,474.0
Inventory		2,005.0
Other assets		298.0
Goodwill		44,392.0
Identifiable intangible assets		18,180.0
Total assets acquired	$	79,349.0
Accounts payable	$	21,448.0
Other current liabilities		1,144.0
Total liabilities assumed	$	22,592.0
Net assets acquired	$	56,757.0

The following are the identifiable intangible assets acquired and their respective weighted average useful lives, as determined based on preliminary valuations (dollars in thousands):

	Amount		Weighted Average Life (Years)
Customer prescription files	$	7,820.0		4
Referral and relationships		1,400.0		2
Trade name		6,900.0		—
Non-compete agreements		1,800.0		8
Business licenses		260.0		1
	$	18,180.0