Lease Termination and Impairment Charges (Tables)

12 Months Ended

Mar. 04, 2017

Lease Termination and Impairment Charges

Schedule of amounts relating to lease termination and impairment charges

	Year Ended
	March 4, 2017				February 27, 2016				February 28, 2015
(in thousands, except number of stores)	Number		Charge		Number		Charge		Number		Charge
Active stores:
Stores previously impaired(1)		428	$	9,426		357	$	9,183		376	$	6,949
New, relocated and remodeled stores(2)		22		13,232		3		1,649		2		1,108
Remaining stores not meeting the recoverability test(3)		50		7,451		29		5,274		16		4,069
Total impairment charges—active stores		500		30,109		389		16,106		394		12,126
Total impairment charges—closed facilities		53		2,038		27		1,113		35		2,312
Total impairment charges—all locations		553	$	32,147		416	$	17,219		429	$	14,438

(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, 424, 351 and 369 stores for fiscal years 2017, 2016 and 2015 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, 18, 3 and 1 stores for fiscal years 2017, 2016 and 2015 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, 48, 27 and 14 stores for fiscal years 2017, 2016 and 2015 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 4, 2017
Long-lived assets held and used	$	—	$	924	$	19,827	$	20,751	$	(32,076	)
Long-lived assets held for sale		—		1,260		—		1,260		(71	)
Total	$	—	$	2,184	$	19,827	$	22,011	$	(32,147	)

	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	)

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

	Year Ended
	March 4, 2017 (53 Weeks)			February 27, 2016 (52 Weeks)			February 28, 2015 (52 Weeks)
Balance—beginning of year	$	208,421		$	241,047		$	284,270
Provision for present value of noncancellable lease payments of closed stores		6,503			9,709			1,661
Changes in assumptions about future sublease income, terminations and change in interest rates		2,633			5,655			7,560
Interest accretion		14,186			16,463			18,988
Cash payments, net of sublease income		(66,605	)		(64,453	)		(71,432	)
Balance—end of year	$	165,138		$	208,421		$	241,047

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

	Year Ended
	March 4, 2017			February 27, 2016			February 28, 2015
Revenues	$	132,790		$	143,339		$	193,757
Operating expenses		151,978			159,967			212,753
Gain from sale of assets		(1,364	)		(5,607	)		(5,529	)
Other expenses		2,544			1,676			2,889
Loss before income taxes		(20,368	)		(12,697	)		(16,356	)
Included in these stores' loss before income taxes are:
Depreciation and amortization		1,166			1,162			1,650
Inventory liquidation charges		346			295			222