Lease Termination and Impairment Charges (Tables)

12 Months Ended

Feb. 27, 2016

Lease Termination and Impairment Charges

Schedule of amounts relating to lease termination and impairment charges

	Year Ended
	February 27, 2016				February 28, 2015				March 1, 2014
(in thousands, except number of stores)	Number		Charge		Number		Charge		Number		Charge
Active stores:
Stores previously impaired(1)		357	$	9,183		376	$	6,949		378	$	4,162
New, relocated and remodeled stores(2)		3		1,649		2		1,108		1		4,028
Remaining stores not meeting the recoverability test(3)		29		5,274		16		4,069		17		3,558
Total impairment charges—active stores		389		16,106		394		12,126		396		11,748
Total impairment charges-closed facilities		27		1,113		35		2,312		38		1,329
Total impairment charges—all locations		416	$	17,219		429	$	14,438		434	$	13,077

(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, we do often make 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, 351, 369 and 375 stores for fiscal years 2016, 2015 and 2014 respectively have been fully impaired. Also included in these charges are an insignificant number of stores, which were only partially impaired in prior years based on our analysis that supported a reduced net book value greater than zero, but now require additional charges.
(2)	These charges are related to new stores (open at least 3 years) and relocated stores (relocated in the last 2 years) and significant strategic remodels (remodeled in the last year) 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, 3, 1 and 1 stores for fiscal years 2016, 2015 and 2014 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, 27, 14 and 14 stores for fiscal years 2016, 2015 and 2014 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 February 27, 2016
Long-lived assets held and used	$	—	$	3,641	$	17,645	$	21,286	$	(16,672	)
Long-lived assets held for sale		—		3,283		189		3,472		(547	)
Total	$	—	$	6,924	$	17,834	$	24,758	$	(17,219	)

	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 February 28, 2015
Long-lived assets held and used	$	—	$	3,692	$	16,992	$	20,684	$	(12,503	)
Long-lived assets held for sale		—		6,024		—		6,024		(1,935	)
Total	$	—	$	9,716	$	16,992	$	26,708	$	(14,438	)

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

	Year Ended
	February 27, 2016 (52 Weeks)			February 28, 2015 (52 Weeks)			March 1, 2014 (52 Weeks)
Balance—beginning of year	$	241,047		$	284,270		$	323,757
Provision for present value of noncancellable lease payments of closed stores		9,709			1,661			11,646
Changes in assumptions about future sublease income, terminations and change in interest rates		5,655			7,560			(4,343	)
Interest accretion		16,463			18,988			21,250
Cash payments, net of sublease income		(64,453	)		(71,432	)		(68,040	)
Balance—end of year	$	208,421		$	241,047		$	284,270

Schedule of revenue, operating expenses, and income before income taxes of stores

	Year Ended
	February 27, 2016			February 28, 2015			March 1, 2014
Revenues	$	30,403		$	75,174		$	147,559
Operating expenses		35,409			84,855			162,357
Gain from sale of assets		(5,607	)		(5,536	)		(13,114	)
Other expenses (income)		384			389			(8,482	)
Income (loss) before income taxes		217			(4,534	)		6,798
Included in these stores' (loss) income before income taxes are:
Depreciation and amortization		138			296			838
Inventory liquidation charges		295			222			552