Lease Termination and Impairment Charges (Tables)

12 Months Ended

Mar. 02, 2013

Lease Termination and Impairment Charges

Schedule of impairment charges and number of locations, segregated by closed facilities and active stores that have been recorded

	Year Ended
	March 2, 2013				March 3, 2012				February 26, 2011
	Number		Charge		Number		Charge		Number		Charge
Closed facilities:
Actual and approved store closings		29	$	325		55	$	2,283		51	$	3,278
Actual and approved relocations		—		—		2		499		1		317
Distribution center closings		—		—		—		—		1		94
Existing surplus properties		5		594		12		5,863		17		2,433
Total impairment charges-closed facilities		34		919		69		8,645		70		6,122
Active stores:
Additional current period charges for stores previously impaired in prior periods(1)		469		5,835		591		9,822		584		17,825
Charges for new and relocated stores that did not meet their asset recoverability test in the current period(2)		14		9,190		19		18,926		44		36,015
Charges for the remaining stores that did not meet their asset recoverability test in the current period(3)		47		8,948		53		14,605		167		55,159
Total impairment charges-active stores		530		23,973		663		43,353		795		108,999
Total impairment charges-all locations		564	$	24,892		732	$	51,998		865	$	115,121
Total number of active stores		4,623				4,667				4,714
Stores impaired in prior periods with no current charge		588				428				263
Stores with a current period charge		530				663				795
Total cumulative active stores with impairment charges		1,118				1,091				1,058

(1)

These charges are related to stores that were impaired for the first time in prior periods. Most active stores, requiring an impairment charge, are fully impaired in the first period that they do not meet their asset recoverability test. However, in each prior period presented, a minority of stores were partially impaired since their fair value supported a reduced net book value. Accordingly, these stores may be further impaired in the current and future periods as a result of changes in their actual or projected cash flows, or changes to their fair value estimates. Also, the Company makes ongoing capital additions to certain stores to improve their operating results or to meet geographical competition, which if later are deemed to be unrecoverable, will be impaired in future periods. Of this total, 464, 583 and 577 stores for fiscal years 2013, 2012 and 2011 respectively have been fully impaired.

(2)

These charges are related to new stores (open at least 3 years) and relocated stores (relocated in the last 2 years) that did not meet their recoverability test during the current period. These stores have not met their original return on investment projections and have a historical loss of at least 2 years. Their future cash flow projections do not recover their current carrying value. Of this total, 14, 19 and 43 stores for fiscal years 2013, 2012 and 2011 respectively have been fully impaired.

(3)

These charges are related to the remaining active stores that did not meet the recoverability test during the current period. These stores have a historical loss of at least 2 years. Their future cash flow projections do not recover their current carrying value. Of this total, 43, 43 and 141 stores for fiscal years 2013, 2012 and 2011 respectively have been fully impaired.

Schedule of fair value of long-lived assets for which an impairment assessment was performed and total losses

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Values as of Impairment Date		Total Charges March 2, 2013
Long-lived assets held and used	$	—	$	1,018	$	21,739	$	22,757	$	(24,298	)
Long-lived assets held for sale		—		1,842		—		1,842		(594	)
Total	$	—	$	2,860	$	21,739	$	24,599	$	(24,892	)

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Values as of Impairment Date		Total Charges March 3, 2012
Long-lived assets held and used	$	—	$	23,254	$	36,485	$	59,739	$	(50,718	)
Long-lived assets held for sale		—		5,407		—		5,407		(1,280	)
Total	$	—	$	28,661	$	36,485	$	65,146	$	(51,998	)

Schedule of closed store and distribution center charges related to new closures, changes in assumptions and interest accretion

	Year Ended
	March 2, 2013 (52 Weeks)			March 3, 2012 (53 Weeks)			February 26, 2011 (52 Weeks)
Balance—beginning of year	$	367,864		$	405,350		$	412,654
Provision for present value of noncancellable lease payments of closed stores		14,440			11,832			51,369
Changes in assumptions about future sublease income, terminations and change in interest rates		9,023			11,305			19,585
Interest accretion		23,246			26,084			26,234
Cash payments, net of sublease income		(90,816	)		(86,707	)		(104,492	)
Balance—end of year	$	323,757		$	367,864		$	405,350

Schedule of revenue, operating expenses, and income (loss) before income taxes of stores

:

	Year Ended
	March 2, 2013			March 3, 2012			February 26, 2011
Revenues	$	99,034		$	308,835		$	452,799
Operating expenses		112,300			339,784			503,969
Gain from sale of assets		(19,877	)		(15,212	)		(19,369	)
Other expenses		812			(6,202	)		7,027
Income (loss) before income taxes		5,799			(9,535	)		(38,828	)
Included in these stores' income (loss) before income taxes are:
Depreciation and amortization		1,103			4,189			7,219
Inventory liquidation charges		1,039			873			4,897