Acquisition (Tables)

3 Months Ended

May 28, 2022


Final purchase price
Cash consideration	$	89,724
Total		89,724
Final purchase price allocation
Cash and cash equivalents	$	3,494
Accounts receivable		23,860
Inventories		67,745
Prepaid expenses and other current assets		1,857
Total current assets		96,956
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		339,341
Accounts payable		24,166
Accrued salaries, wages and other current liabilities		20,335
Current portion of operating lease liabilities		24,617
Total current liabilities		69,118
Long-term operating lease liabilities		124,023
Other long-term liabilities		166
Total liabilities assumed		193,307
Deferred tax liabilities recorded on purchase		13,951
Net assets acquired		132,083
Bargain purchase gain		(42,359)
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 final 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 final 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 final purchase price allocation include:

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