During the fourth quarter of fiscal 2018, we announced that we are pursuing the sale of certain of our corporately owned and operated retail operations consisting of Farm Fresh, Shop ‘n Save, and Shop ‘n Save East. The results of operations, financial position and cash flows of these banners have been presented as discontinued operations and the related assets and liabilities have been reclassified as held-for-sale for all periods presented. These three retail banners were previously separate components included in our Retail reporting segment. In addition, discontinued operations includes the results of operations and cash flows attributed to the assets and liabilities of the Save-A-Lot business.

During the first quarter of fiscal 2019, we completed the sale of 21 of our 38 Farm Fresh stores to three different retailers: Harris Teeter, Kroger Mid-Atlantic Division, and Food Lion, and we completed the sale of the Farm Fresh pharmacy assets, for a total of $53. We recorded an income tax provision on the sale of the 21 stores and pharmacy assets of $1. Subsequent to the first quarter of fiscal 2019, we completed the sale of an additional five Farm Fresh stores to Wholesale customers through lease assignments. The remaining stores were closed in the first quarter of fiscal 2019.

Operating results of discontinued operations are summarized below:



	First Quarter Ended
	June 16, 2018 (16 weeks)			June 17, 2017 (16 weeks)
Net sales	$	350		$	487
Cost of sales	267			367
Gross profit	83			120
Selling and administrative expenses	112			115
Gain on sale	(37		)	—
Operating earnings	8			5
Interest expense, net	—			—
Earnings from discontinued operations before income taxes	8			5
Income tax provision	2			2
Income from discontinued operations, net of tax	$	6		$	3

The carrying amounts of major classes of assets and liabilities that were classified as held-for-sale on the Condensed Consolidated Balance Sheets were as follows:



	June 16, 2018		February 24, 2018
Current assets
Cash and cash equivalents	$	5	$	7
Receivables, net	5		8
Inventories, net	70		109
Other current assets	4		6
Total current assets of discontinued operations	84		130
Long-term assets
Property, plant and equipment, net	56		74
Intangible assets, net	—		1
Deferred tax assets	8		8
Other assets	1		1
Total long-term assets of discontinued operations	65		84
Total assets of discontinued operations	$	149	$	214

Current liabilities
Accounts payable	$	39	$	51
Accrued vacation, compensation and benefits	26		20
Current maturities of capital lease obligations	2		2
Other current liabilities	11		9
Total current liabilities of discontinued operations	78		82
Long-term liabilities
Long-term capital lease obligations	14		14
Other long-term liabilities	1		3
Total long-term liabilities of discontinued operations	15		17
Total liabilities of discontinued operations	93		99
Net assets of discontinued operations	$	56	$	115