Asset Sale to WBA (Tables)

12 Months Ended

Feb. 29, 2020

Asset Sale to WBA

Schedule of assets and operating results of discontinued operations

	February 29,		March 2,
	2020		2019
Inventories	$	13,719	$	68,233
Property and equipment		43,576		49,348
Operating lease right-of-use asset		34,983		—
Current assets held for sale	$	92,278	$	117,581
Current portion of operating lease liabilities	$	2,002	$	—
Long-term operating lease liabilities		35,061		—
Current liabilities held for sale	$	37,063	$	—

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

	February 29,		March 2,		March 3,
	2020		2019		2018
	(52 weeks)		(52 weeks)		(52 weeks)
Revenues	$	(21)	$	34,889	$	8,686,397
Costs and expenses:
Cost of revenues(a)		(5,639)		24,271		6,406,067
Selling, general and administrative expenses(a)		1,498		20,681		2,134,276
Lease termination and impairment charges		—		—		77
Loss on debt retirements, net		—		22,646		8,180
Interest expense(b)		1		4,616		224,300
Gain on stores sold to Walgreens Boots Alliance		—		(374,619)		(2,128,832)
(Gain) loss on sale of assets, net		(19,937)		1,486		(377)
		(24,077)		(300,919)		6,643,691
Income from discontinued operations before income taxes		24,056		335,808		2,042,706
Income tax expense		7,011		91,067		749,704
Net income from discontinued operations, net of tax	$	17,045	$	244,741	$	1,293,002

(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 February 29, 2020, the fifty-two week period ended March 2, 2019 and the fifty-two week period ended March 3, 2018, respectively, for the discontinued operations include interest expense relating to the outstanding indebtedness repaid with the estimated excess proceeds from the Sale.