Facility Exit and Impairment Charges (Tables)

12 Months Ended

Mar. 04, 2023

Facility Exit and Impairment Charges

Schedule of amounts relating to facility exit and impairment charges


	March 4, 2023			February 26, 2022			February 27, 2021
(in thousands, except number of stores)	Number	Charge		Number	Charge		Number	Charge
Active stores:
Stores previously impaired⁽¹⁾	44	$	4,866	118	$	12,339	174	$	21,372
New, relocated and remodeled stores⁽²⁾	8		4,640	1		538	2		1,519
Remaining stores not meeting the recoverability test⁽³⁾	12		4,038	88		43,305	19		6,854
Total impairment charges—active stores	64		13,544	207		56,182	195		29,745
Total impairment charges—closed facilities	194		123,531	147		94,606	33		16,542
Total impairment charges—all locations	258	$	137,075	354	$	150,788	228	$	46,287

(1)

These charges are related to stores that were impaired for the first time in prior periods. In an effort to improve the operating results or to meet geographical competition, the Company will often make additional capital additions in stores that were impaired in prior periods. These additions will be impaired in future periods if they are deemed to be unrecoverable. The fiscal 2023 impairment charge includes $3,087 of impairment relating to the ROU and $1,779 of capital additions. The fiscal 2022 impairment charge includes $5,434 of impairment relating to the ROU and $6,905 of capital additions. The fiscal 2021 impairment charge includes $15,459 of impairment relating to the ROU and $5,913 of capital additions.

(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. The fiscal 2023 impairment charge includes $1,765 of impairment relating to the ROU and $2,875 of capital additions. The fiscal 2022 impairment charge includes $0 of impairment relating to the ROU and $538 of capital additions. The fiscal 2021 impairment charge includes $347 of impairment relating to the ROU and $1,172 of capital additions.

(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 two years. Their future cash flow projections do not recover their current carrying value. The fiscal 2023 impairment charge includes $1,765 of impairment relating to the ROU and $2,273 of capital additions. The fiscal 2022 impairment charge includes $26,130 of impairment relating to the ROU and $17,175 of capital additions. The fiscal 2021 impairment charge includes $3,177 of impairment relating to the ROU and $3,677 of capital additions.

Schedule of fair value of long-lived assets measured on non-recurring basis


							Fair Values		Total
							as of		Charges
	Level 1		Level 2		Level 3		Impairment Date		March 4, 2023
Long-lived assets held for use	$	—	$	22,959	$	42,717	$	65,676	$	(132,243)
Long-lived assets held for sale	$	—	$	5,115	$	—	$	5,115	$	(4,832)
Total	$	—	$	28,074	$	42,717	$	70,791	$	(137,075)


							Fair Values		Total
							as of		Charges
	Level 1		Level 2		Level 3		Impairment Date		February 26, 2022
Long-lived assets held for use	$	—	$	240,176	$	23,594	$	263,770	$	(150,064)
Long-lived assets held for sale	$	—	$	2,371	$	—	$	2,371	$	(724)
Total	$	—	$	242,547	$	23,594	$	266,141	$	(150,788)

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


	Year Ended
	March 4,		February 26,		February 27,
	2023		2022		2021
	(53 Weeks)		(52 Weeks)		(52 Weeks)
Balance—beginning of period	$	18,688	$	3,443	$	2,253
Provision for present value of executory costs for leases exited		43,449		16,995		1,643
Changes in assumptions and other adjustments		325		4,296		(73)
Interest accretion		863		72		27
Cash payments		(13,553)		(6,118)		(407)
Balance—end of period	$	49,772	$	18,688	$	3,443

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


	Year Ended
	March 4,		February 26,		February 27,
	2023		2022		2021
Revenues	$	178,030	$	586,056	$	639,471
Operating expenses		192,357		640,996		699,662
Gain from sale of assets		(46,125)		(13,670)		(7,954)
Other expenses		25,396		52,999		13,057
Income (loss) before income taxes		6,402		(94,269)		(65,294)
Included in these stores’ income (loss) before income taxes are:
Depreciation and amortization		934		3,499		4,535
Inventory liquidation charges		(6,369)		(1,646)		(1,528)