Note 3 - Recent Accounting Pronouncements	3 Months Ended
May 27, 2017
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	3 ) Recent Accounting Pronouncements In November 2015, the FASB issued Accounting Standards Update (“ASU”) 2015 - 17, Income Taxes (Topic 740 ): Balance Sheet Classification of Deferred Taxes . This guidance requires an entity to classify deferred tax assets and liabilities as noncurrent assets and liabilities on the balance sheet. ASU 2015 - 17 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, with earlier adoption permitted. ASU 2015 - 17 can be adopted either prospectively or retrospectively to each prior reporting period presented. At the beginning of the first quarter of fiscal 2017, the Company adopted this guidance retrospectively, which resulted in decreases to other current assets of $218.8 million and deferred rent and other liabilities of $23.4 million and an increase to other assets of $195.5 million as of February 25, 2017. In March 2016, the FASB issued ASU 2016 - 09, Compensation - Stock Compensation (Topic 718 ): Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of the accounting for share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016 - 09 requires, on a prospective basis, recognition of excess tax benefits and tax deficiencies (resulting from an increase or decrease in the fair value of an award from grant date to the vesting or exercise date) in the provision for income taxes as a discrete item in the period in which they occur. The ASU also changes the classification of excess tax benefits from a financing activity to an operating activity in the Company’s consolidated statements of cash flows. In addition, ASU 2016 - 09 allows companies to make an accounting policy election to either estimate expected forfeitures or account for them as they occur. ASU 2016 - 09 is effective for fiscal years beginning after December 15, 2016, and interim periods within those years, with early adoption permitted. The Company adopted ASU 2016 - 09 during the first quarter of fiscal 2017. During the three months ended May 27, 2017, the Company recognized in income tax expense a discrete tax expense of $7.6 million related to tax deficiencies. Additionally, the Company elected to account for forfeitures as an estimate of the number of awards that are expected to vest, which is consistent with its accounting policy prior to adoption of ASU 2016 - 09. The Company adopted the provisions of ASU 2016 - 09 related to changes in the consolidated statements of cash flows on a retrospective basis. As such, excess tax benefits are now classified as an operating activity in the Company’s Consolidated Statements of Cash Flows instead of as a financing activity. As a result, excess tax benefits of $1.3 million for the three months ended May 28, 2016 were reclassified from financing activities to operating activities. ASU 2016 - 09 also requires that the value of shares withheld from employees upon vesting of stock awards in order to satisfy any applicable tax withholding requirements is presented within financing activities in the Company’s Consolidated Statements of Cash Flows, which is consistent with the Company’s historical presentation, and therefore had no impact to the Company. In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014 - 09, Revenue from Contracts with Customers (Topic 606 ) . This guidance requires an entity to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In July 2015, the FASB issued ASU 2015 - 14, Revenue from Contracts with Customers (Topic 606 ): Deferral of the Effective Date . This guidance deferred the effective date of ASU 2014 - 09 for one year from the original effective date. In accordance with the deferral, ASU 2014 - 09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. In 2016, the FASB issued several amendments to clarify various aspects of the implementation guidance. ASU 2014 - 09 can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. The Company does not expect to adopt this ASU until required, and has not yet selected the transition method. The Company is in the process of analyzing its revenue streams and quantifying the effects, if any, to the areas discussed above, and currently does not expect the adoption of this standard will have a material impact on its consolidated financial position, results of operations, or cash flows. In February 2016, the FASB issued ASU 2016 - 02, Leases (Topic 842 ) . This guidance requires an entity to recognize lease liabilities and a right-of-use asset for all leases on the balance sheet and to disclose key information about the entity's leasing arrangements. ASU 2016 - 02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, with earlier adoption permitted. ASU 2016 - 02 must be adopted using a modified retrospective approach for all leases existing at, or entered into after the date of initial adoption, with an option to elect to use certain transition relief. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures, but expects that it will result in a significant increase in the assets and liabilities recorded on the consolidated balance sheet. In January 2017, the FASB issued ASU 2017 - 01, Business Combinations (Topic 805 ): Clarifying the Definition of a Business . ASU 2017 - 01 requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of identifiable assets, the set of assets would not represent a business. Also, in order to be considered a business, an acquisition would have to include an input and a substantive process that together significantly contribute to the ability to produce outputs. Under the update, fewer sets of assets are expected to be considered businesses. ASU 2017 - 01 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The adoption of this guidance is not expected to have a significant effect on the Company's consolidated financial position, results of operations, or cash flows. In January 2017, the FASB issued ASU 2017 - 04, Intangibles – Goodwill and Other (Topic 350 ): Simplifying the Test for Goodwill Impairment . ASU 2017 - 04 eliminates the requirement to calculate the implied fair value of goodwill to measure the amount of impairment loss, if any, under the second step of the current goodwill impairment test. Under the update, the goodwill impairment loss would be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017 - 04 is effective for annual reporting periods beginning after December 15, 2019, with early adoption permitted. The adoption of this guidance is not expected to have a significant effect on the Company's consolidated financial position, results of operations, or cash flows.

) Recent Accounting Pronouncements

November 2015,

the FASB issued Accounting Standards Update (“ASU”)

2015

17,

Income Taxes (Topic

740

): Balance Sheet Classification of Deferred Taxes

. This guidance requires an entity to classify deferred tax assets and liabilities as noncurrent assets and liabilities on the balance sheet. ASU

2015

is effective for annual reporting periods beginning after

December 15, 2016,

including interim periods within that reporting period, with earlier adoption permitted. ASU

2015

can be adopted either prospectively or retrospectively to each prior reporting period presented. At the beginning of the

first

quarter of fiscal

2017,

the Company adopted this guidance retrospectively, which resulted in decreases to other current assets of

$218.8

million and deferred rent and other liabilities of

$23.4

million and an increase to other assets of

$195.5

million as of

February 25, 2017.

March 2016,

the FASB issued ASU

2016

09,

Compensation - Stock Compensation (Topic

718

): Improvements to Employee Share-Based Payment Accounting

, which simplifies several aspects of the accounting for share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU

2016

requires, on a prospective basis, recognition of excess tax benefits and tax deficiencies (resulting from an increase or decrease in the fair value of an award from grant date to the vesting or exercise date) in the provision for income taxes as a discrete item in the period in which they occur. The ASU also changes the classification of excess tax benefits from a financing activity to an operating activity in the Company’s consolidated statements of cash flows. In addition, ASU

2016

allows companies to make an accounting policy election to either estimate expected forfeitures or account for them as they occur. ASU

2016

is effective for fiscal years beginning after

December 15, 2016,

and interim periods within those years, with early adoption permitted. The Company adopted ASU

2016

during the

first

quarter of fiscal

2017.

During the

three

months ended

May 27, 2017,

the Company recognized in income tax expense a discrete tax expense of

$7.6

million related to tax deficiencies. Additionally, the Company elected to account for forfeitures as an estimate of the number of awards that are expected to vest, which is consistent with its accounting policy prior to adoption of ASU

2016

09.

The Company adopted the provisions of ASU

2016

related to changes in the consolidated statements of cash flows on a retrospective basis. As such, excess tax benefits are now classified as an operating activity in the Company’s Consolidated Statements of Cash Flows instead of as a financing activity. As a result, excess tax benefits of

$1.3

million for the

three

months ended

May 28, 2016

were reclassified from financing activities to operating activities. ASU

2016

also requires that the value of shares withheld from employees upon vesting of stock awards in order to satisfy any applicable tax withholding requirements is presented within financing activities in the Company’s Consolidated Statements of Cash Flows, which is consistent with the Company’s historical presentation, and therefore had

impact to the Company.

May 2014,

the Financial Accounting Standards Board (“FASB”) issued ASU

2014

09,

Revenue from Contracts with Customers (Topic

606

)

. This guidance requires an entity to recognize revenue in a manner that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. In

July 2015,

the FASB issued ASU

2015

14,

Revenue from Contracts with Customers (Topic

606

): Deferral of the Effective Date

. This guidance deferred the effective date of ASU

2014

for

one

year from the original effective date. In accordance with the deferral, ASU

2014

is effective for annual reporting periods beginning after

December 15, 2017,

including interim periods within that reporting period. In

2016,

the FASB issued several amendments to clarify various aspects of the implementation guidance. ASU

2014

can be adopted either retrospectively to each prior reporting period presented or as a cumulative-effect adjustment as of the date of adoption. The Company does

not

expect to adopt this ASU until required, and has

not

yet selected the transition method. The Company is in the process of analyzing its revenue streams and quantifying the effects, if any, to the areas discussed above, and currently does

not

expect the adoption of this standard will have a material impact on its consolidated financial position, results of operations, or cash flows.

February 2016,

the FASB issued ASU

2016

02,

Leases (Topic

842

)

. This guidance requires an entity to recognize lease liabilities and a right-of-use asset for all leases on the balance sheet and to disclose key information about the entity's leasing arrangements. ASU

2016

is effective for annual reporting periods beginning after

December 15, 2018,

including interim periods within that reporting period, with earlier adoption permitted. ASU

2016

must be adopted using a modified retrospective approach for all leases existing at, or entered into after the date of initial adoption, with an option to elect to use certain transition relief. The Company is currently evaluating the impact of this new standard on its consolidated financial statements and related disclosures, but expects that it will result in a significant increase in the assets and liabilities recorded on the consolidated balance sheet.

January 2017,

the FASB issued ASU

2017

01,

Business Combinations (Topic

805

): Clarifying the Definition of a Business

. ASU

2017

requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of identifiable assets, the set of assets would

not

represent a business. Also, in order to be considered a business, an acquisition would have to include an input and a substantive process that together significantly contribute to the ability to produce outputs. Under the update, fewer sets of assets are expected to be considered businesses. ASU

2017

is effective for annual reporting periods beginning after

December 15, 2017,

including interim periods within that reporting period. The adoption of this guidance is

not

expected to have a significant effect on the Company's consolidated financial position, results of operations, or cash flows.

January 2017,

the FASB issued ASU

2017

04,

Intangibles – Goodwill and Other (Topic

350

): Simplifying the Test for Goodwill Impairment

. ASU

2017

eliminates the requirement to calculate the implied fair value of goodwill to measure the amount of impairment loss, if any, under the

second

step of the current goodwill impairment test. Under the update, the goodwill impairment loss would be measured as the amount by which a reporting unit’s carrying value exceeds its fair value,

not

to exceed the carrying amount of goodwill. ASU

2017

is effective for annual reporting periods beginning after

December 15, 2019,

with early adoption permitted. The adoption of this guidance is

not

expected to have a significant effect on the Company's consolidated financial position, results of operations, or cash flows.