Lease Termination and Impairment Charges (Tables)

12 Months Ended

Mar. 02, 2019

Lease Termination and Impairment Charges

Schedule of amounts relating to lease termination and impairment charges

	March 2, 2019			March 3, 2018			March 4, 2017
(in thousands, except number of stores)	Number	Charge		Number	Charge		Number	Charge
Active stores:
Stores previously impaired(1)	288	$	17,939	218	$	7,313	174	$	5,022
New, relocated and remodeled stores(2)	22		10,595	28		13,100	22		13,232
Remaining stores not meeting the recoverability test(3)	74		17,885	60		14,369	17		2,369
Total impairment charges—active stores	384		46,419	306		34,782	213		20,623
Total impairment charges—closed facilities	62		2,788	67		3,091	53		2,008
Total impairment charges—other(4)	—		14,285	—		—	—		—
Total impairment charges—all locations	446	$	63,492	373	$	37,873	266	$	22,631

(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, 286,  215 and 173 stores for fiscal years 2019, 2018 and 2017 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 three years) and relocated stores (relocated in the last two 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 two years. Their future cash flow projections do not recover their current carrying value. Of this total, 21,  23 and 18 stores for fiscal years 2019, 2018 and 2017 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, 72,  58 and 16 stores for fiscal years 2019, 2018 and 2017 respectively have been fully impaired.

(4) These charges are due to the impairment of assets related to the termination of a project to replace the point of sale software used in the Company’s stores.

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

	Quoted Prices in		Significant				Fair Values
	Active Markets		Other		Significant		as of		Total
	for Identical		Observable		Unobservable		Impairment		Charges
	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		Date		March 2, 2019
Long-lived assets held and used	$	—	$	—	$	8,116	$	8,116	$	(62,115)
Long-lived assets held for sale		—		1,545		—		1,545		(1,377)
Total	$	—	$	1,545	$	8,116	$	9,661	$	(63,492)

	Quoted Prices in		Significant				Fair Values
	Active Markets		Other		Significant		as of		Total
	for Identical		Observable		Unobservable		Impairment		Charges
	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		Date		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)

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

	Year Ended
	March 2,		March 3,		March 4,
	2019		2018		2017
	(52 Weeks)		(52 Weeks)		(53 Weeks)
Balance—beginning of year	$	133,290	$	165,138	$	208,421
Provision for present value of noncancellable lease payments of closed stores		35,190		8,871		6,503
Changes in assumptions about future sublease income, terminations and change in interest rates		737		1,082		2,633
Interest accretion		9,741		11,439		14,186
Cash payments, net of sublease income		(54,912)		(53,240)		(66,605)
Balance—end of year	$	124,046	$	133,290	$	165,138

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

	Year Ended
	March 2,		March 3,		March 4,
	2019		2018		2017
Revenues	$	165,598	$	308,005	$	433,709
Operating expenses		182,201		342,103		471,971
Gain from sale of assets		(38,113)		(18,222)		(1,036)
Other expenses		2,183		2,417		4,590
Income (loss) before income taxes		19,327		(18,293)		(41,816)
Included in these stores’ loss before income taxes are:
Depreciation and amortization		621		1,742		3,560
Inventory liquidation charges		(5,523)		(2,828)		(187)