Acquisitions and Goodwill

6 Months Ended

Aug. 30, 2014

Business Combinations [Abstract]

Acquisitions and Goodwill

Acquisitions and Goodwill

During the twenty-six weeks endedAugust 30, 2014, the Company completed one immaterial acquisition of assets for total consideration of $4.3 million, net of cash acquired, which was funded through the Company’s existing cash. In addition to the cash consideration, the transaction included aggregate contingent consideration with an estimated fair value of $0.4 million, which is included within other long-term liabilities on the consolidated balance sheets. The Company determined the estimated fair value based on a discounted cash flow analysis and estimates made by management. The entity from which the assets were acquired operated eight specialty running stores in Michigan. In connection with this acquisition, the Company recorded goodwill of $3.8 million during the twenty-six weeks endedAugust 30, 2014. Goodwill is deductible for U.S. federal income tax purposes.

The Company allocated the aggregated preliminary purchase price for the acquisition based upon the tangible and intangible assets acquired, net of liabilities. The allocation of the preliminary purchase price is detailed below (in thousands):

	Allocation of Purchase Price
Goodwill	$	3,811
Tangible assets, net of liabilities	821
Contingent consideration	(350		)
Total purchase price	$	4,282

During fiscal 2014, the Company completed four individually immaterial acquisitions of assets for total consideration of $13.4 million, net of cash acquired, which were funded through the Company’s existing cash. In addition to cash consideration, the transactions included aggregate contingent consideration with an estimated fair value of $0.5 million, which is included within other long-term liabilities on the consolidated balance sheets. The Company determined the estimated fair value based on discounted cash flow analyses and estimates made by management. The entities from which the assets were acquired operated fifteen specialty running stores in Ohio, Kentucky, Indiana, Colorado and Virginia. In connection with these acquisitions, the Company recorded goodwill of $11.6 million during fiscal 2014.

During the twenty-six weeks endedAugust 30, 2014, the Company made the final working capital payments for two of the fiscal 2014 acquisitions, which did not have a material effect on the preliminary purchase price allocation. The Company allocated the aggregated preliminary purchase price based upon the tangible and intangible assets acquired, net of liabilities. The allocation of the preliminary purchase price for the fiscal 2014 acquisitions is detailed below (in thousands):

	Allocation of Purchase Price
Goodwill	$	11,647
Tangible assets, net of liabilities	2,190
Contingent consideration	(450		)
Total purchase price	$	13,387

A reconciliation of goodwill is detailed below (in thousands):

	Goodwill
Balance as of March 2, 2013	$	13,888
Acquisitions	11,608
Other	112
Balance as of March 1, 2014	25,608
Acquisitions	3,811
Other	39
Balance as of August 30, 2014	$	29,458