Subsequent Events

3 Months Ended

Nov. 24, 2012



9.	Subsequent Events

Subsequent to the first quarter of fiscal 2013, the Company completed a sale-leaseback transaction under which it sold 126 stores to an unrelated third party. Net proceeds from these sales were approximately $162.4 million. Concurrent with these sales, the Company entered into agreements to lease the properties back from the purchaser over an initial lease term of 15 years. The master leases for the 126 stores includes an initial term of 15 years and four, five-year renewal options and provides for the Company to evaluate each store individually upon certain events during the life of the lease, including individual renewal options. The Company will classify these leases as operating leases, actively uses the leased properties and considers the leases as normal leasebacks. The Company will defer a gain of approximately $73.1 million realized on the sale of the stores and will amortize the gain over the initial lease term.

Additionally, in conjunction with the transaction, $48.1 million of the net proceeds was placed into an escrow account with an independent third party in connection with a like-kind exchange transaction, which permits the deferral of a portion of the tax gain associated with the sale of the stores. The Company intends to use these proceeds to purchase additional new stores and is required to do so within 180 days to realize the deferral. These proceeds will be classified as Restricted Cash and Investments in the Consolidated Condensed Balance Sheet in subsequent reporting periods.