Lease Termination and Impairment Charges (Tables)

12 Months Ended

Mar. 03, 2018

Lease Termination and Impairment Charges

Schedule of amounts relating to lease termination and impairment charges

	March 3, 2018				March 4, 2017				February 27, 2016
(in thousands, except number of stores)	Number		Charge		Number		Charge		Number		Charge
Active stores:
Stores previously impaired(1)		218	$	7,313		174	$	5,022		161	$	4,582
New, relocated and remodeled stores(2)		28		13,100		22		13,232		1		778
Remaining stores not meeting the recoverability test(3)		60		14,369		17		2,369		14		2,882
Total impairment charges—active stores		306		34,782		213		20,623		176		8,242
Total impairment charges—closed facilities		67		3,091		53		2,008		27		1,031
Total impairment charges—all locations		373	$	37,873		266	$	22,631		203	$	9,273

(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, 215, 173 and 160 stores for fiscal years 2018, 2017 and 2016 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, 23, 18 and 1 stores for fiscal years 2018, 2017 and 2016 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, 58, 16 and 13 stores for fiscal years 2018, 2017 and 2016 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 3, 2018
Long-lived assets held and used	$	—	$	2,893	$	14,581	$	17,474	$	(36,752	)
Long-lived assets held for sale		—		1,029		—		1,029		(1,121	)
Total	$	—	$	3,922	$	14,581	$	18,503	$	(37,873	)

	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	$	—	$	511	$	8,866	$	9,377	$	(22,560	)
Long-lived assets held for sale		—		1,260		—		1,260		(71	)
Total	$	—	$	1,771	$	8,866	$	10,637	$	(22,631	)

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

	Year Ended
	March 3, 2018 (52 Weeks)			March 4, 2017 (53 Weeks)			February 27, 2016 (52 Weeks)
Balance—beginning of year	$	165,138		$	208,421		$	241,047
Provision for present value of noncancellable lease payments of closed stores		8,871			6,503			9,709
Changes in assumptions about future sublease income, terminations and change in interest rates		1,082			2,633			5,655
Interest accretion		11,439			14,186			16,463
Cash payments, net of sublease income		(53,240	)		(66,605	)		(64,453	)
Balance—end of year	$	133,290		$	165,138		$	208,421

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

	Year Ended
	March 3, 2018			March 4, 2017			February 27, 2016
Revenues	$	69,336		$	174,668		$	204,869
Operating expenses		82,541			193,771			223,774
Gain from sale of assets		(18,231	)		(1,036	)		(5,605	)
Other expenses		830			2,182			1,725
Income (loss) before income taxes		4,196			(20,249	)		(15,025	)
Included in these stores' loss before income taxes are:
Depreciation and amortization		365			1,440			1,498
Inventory liquidation charges		(2,828	)		(187	)		(295	)