Asset Sale to WBA (Tables)

12 Months Ended

Mar. 03, 2018

Asset Sale to WBA

Schedule of discontinued operations

	March 3, 2018		March 4, 2017
Inventories	$	264,286	$	1,047,670
Property and equipment		158,433		—
Goodwill(a)		4,629		—
Intangible assets		10,789		—
Current assets held for sale	$	438,137	$	1,047,670
Property and equipment	$	—	$	725,230
Goodwill(a)		—		32,632
Intangible assets		—		120,389
Other assets		—		4,017
Noncurrent assets held for sale	$	—	$	882,268
Current maturities of long-term lease financing obligations	$	270	$	3,626
Accrued salaries, wages and other current liabilities		6,146		29,057
Long-term debt, less current maturities(b)		549,549		—
Lease financing obligations, less current maturities		838		—
Other noncurrent liabilities		3,402		—
Current liabilities held for sale	$	560,205	$	32,683
Long-term debt, less current maturities(b)	$	—	$	4,027,400
Lease financing obligations, less current maturities		—		6,866
Other noncurrent liabilities		—		23,126
Noncurrent liabilities held for sale	$	—	$	4,057,392

(a)

The Company had $76,124 of goodwill in its Retail Pharmacy segment resulting from the acquisition of Health Dialog and RediClinic, which is accounted for as Retail Pharmacy segment enterprise goodwill. The Company has allocated a portion of its Retail Pharmacy segment enterprise goodwill to the discontinued operation.

(b)

In connection with the Sale, the Company is estimating that the Sale will provide excess cash proceeds of approximately $4,027,400 which will be used to repay outstanding indebtedness. As such, the $4,027,400 of estimated repayment of outstanding indebtedness has been included in liabilities held for sale as of March 4, 2017. As of March 3, 2018, the Company repaid outstanding indebtedness of $3,135,000 with transaction proceeds received.

	March 3, 2018 (52 weeks)			March 4, 2017 (53 weeks)			February 27, 2016 (52 weeks)
Revenues	$	8,686,397		$	10,050,049		$	10,045,543
Costs and expenses:
Cost of revenues(a)		6,406,067			7,340,691			7,211,267
Selling, general and administrative expenses(a)		2,134,276			2,465,364			2,432,175
Lease termination and impairment charges		77			9,516			7,946
Loss on debt retirements, net		8,180			—			—
Interest expense(b)		224,300			231,926			263,442
Gain on stores sold to Walgreens Boots Alliance		(2,128,832	)		—			—
(Gain) loss on sale of assets, net		(377	)		2,625			3,909
		6,643,691			10,050,122			9,918,739
Income (loss) from discontinued operations before income taxes		2,042,706			(73	)		126,804
Income tax expense		749,704			46			63,427
Net income (loss) from discontinued operations, net of tax	$	1,293,002		$	(27	)	$	63,377

(a)	Cost of revenues and selling, general and administrative expenses for the discontinued operations excludes corporate overhead. These charges are reflected in continuing operations.
(b)	In accordance with ASC 205-20, the operating results for the fifty-two week period ended March 3, 2018, the fifty-three week period ended March 4, 2017, and the fifty-two week period ended February 27, 2016 for the discontinued operations include interest expense relating to the $4,027,400 of outstanding indebtedness expected to be repaid with the estimated excess proceeds from the Sale.