Asset Sale to WBA (Tables)

9 Months Ended

Nov. 30, 2019

Asset Sale to WBA

Schedule of assets and operating results of discontinued operations

	November 30,		March 2,
	2019		2019
Inventories	$	12,227	$	68,233
Property and equipment		49,249		49,348
Operating lease right-of-use asset		40,118		—
Current assets held for sale	$	101,594	$	117,581
Current portion of operating lease liabilities	$	3,845	$	—
Long-term operating lease liabilities		38,577		—
Current liabilities held for sale	$	42,422	$	—

The operating results of the discontinued operations that are reflected on the consolidated statements of operations within net income (loss) from discontinued operations are as follows:

	November 30,		December 1,		November 30,		December 1,
	2019		2018		2019		2018
	(13 weeks)		(13 weeks)		(39 weeks)		(39 weeks)
Revenues	$	(13)	$	6,727	$	(136)	$	34,843
Costs and expenses:
Cost of revenues(a)		374		126		838		17,389
Selling, general and administrative expenses(a)		306		3,855		1,170		20,300
Loss on debt retirements, net		—		—		—		22,645
Interest expense(b)		—		—		—		4,615
Loss (gain) on stores sold to Walgreens Boots Alliance		—		(14,077)		—		(374,619)
Loss (gain) on sale of assets, net		89		3		(433)		14
		769		(10,093)		1,575		(309,656)
(Loss) income from discontinued operations before income taxes		(782)		16,820		(1,711)		344,499
Income tax (benefit) expense		19		4,080		(16)		82,408
Net (loss) income from discontinued operations, net of tax	$	(801)	$	12,740	$	(1,695)	$	262,091

(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 thirteen and thirty-nine week periods ended November 30, 2019 and December 1, 2018, respectively, for the discontinued operations include interest expense relating to the outstanding indebtedness repaid with the estimated excess proceeds from the Sale.