Acquisition (Tables) - Bartell Drug Company

3 Months Ended

May 29, 2021

Business Acquisition [Line Items]

Schedule of purchase price allocation

Preliminary purchase price
Cash consideration	$	89,724
Total		89,724
Preliminary purchase price allocation
Cash and cash equivalents	$	3,494
Accounts receivable		24,188
Inventories		69,046
Prepaid expenses and other current assets		1,857
Total current assets		98,585
Property and equipment		28,229
Operating lease right-of-use assets		143,651
Intangible assets(1)		68,700
Other assets		1,805
Total assets acquired		340,970
Accounts payable		24,166
Accrued salaries, wages and other current liabilities		18,386
Current portion of operating lease liabilities		24,617
Total current liabilities		67,169
Long-term operating lease liabilities		124,023
Total liabilities assumed		191,192
Deferred tax liabilities recorded on purchase		12,349
Net assets acquired		137,429
Bargain purchase gain		(47,705)
Total purchase price	$	89,724

(1)            Intangible assets are recorded at estimated fair value, as determined by management based on available information which includes a preliminary valuation prepared by an independent third party.  The fair values assigned to identifiable intangible assets were determined through the use of the income approach, specifically the relief from royalty and the multi-period excess earnings methods.  The major assumptions used in arriving at the estimated identifiable intangible asset values included management’s preliminary estimates of future cash flows, discounted at an appropriate rate of return which are based on the weighted average cost of capital for both the Company and other market participants, projected customer attrition rates, as well as applicable royalty rates for comparable assets.  The useful lives for intangible assets were determined based upon the remaining useful economic lives of the intangible assets that are expected to contribute directly or indirectly to future cash flows.  The estimated fair value of intangible assets and related useful lives as included in the preliminary purchase price allocation include:

	Estimated Fair Value		Estimated Useful Life (In Years)
Prescription files	$	54,300	10
Tradename		14,400	Indefinite
Total	$	68,700

Schedule of estimated fair value of intangible assets and related useful lives as included in the final purchase price allocation

	Estimated Fair Value		Estimated Useful Life (In Years)
Prescription files	$	54,300	10
Tradename		14,400	Indefinite
Total	$	68,700

Schedule of unaudited pro forma combined financial data

	May 29,		May 30,
	2021		2020
	(13 weeks)		(13 weeks)
	Pro forma		Pro forma
Net revenues as reported	$	6,160,985	$	6,027,376
Supplemental Pro forma revenues	$	6,160,985	$	6,164,616
Net loss as reported	$	(13,057)	$	(63,541)
Supplemental Pro forma net loss	$	(13,057)	$	(70,356)