Reorganization Items, Net

6 Months Ended

Sep. 10, 2011

Reorganization Items, Net

Reorganization Items, Net

15.Reorganization Items, Net

Reorganization items, net represent amounts incurred and recovered as a direct result of the Bankruptcy Filing and were comprised of the following (in thousands):

	For the 12 Weeks			For the 28 Weeks
	Ended			Ended
	Sept. 10, 2011			Sept. 10, 2011
Professional fees, net	$	(12,668	)	$	(29,836	)
US Trustee fees		(257	)		(512	)
Write-off of  balance sheet items related to rejected contracts, net - continuing operations		16,644			47,157
C&S contract effect		-			34,139
Reduction of closed locations reserve - continuing operations		13,429			44,078
Reorganization items, net - continuing operations		17,148			95,026
Write-off of  balance sheet items related to rejected contracts, net - discontinued operations		(64	)		25,735
Reduction of closed locations reserve - discontinued operations		79			8,474
Provision for income taxes for reorganization items, net - discontinued operations		(7	)		(14,368	)
Total reorganization items, net	$	17,156		$	114,867

For the 12 and 28 weeks ended September 10, 2011, professional fees of $12.7 million and $29.8 million were accrued, respectively, and $12.4 million and $23.5 million were paid, respectively, related to our Bankruptcy Filing. U.S. Trustee fees of approximately $0.2 million and $0.5 million were incurred and paid during the 12 and 28 weeks ended September 10, 2011, respectively.

On June 2, 2011, our Company rejected its prior contract with C&S and entered into a new definitive supply agreement effective May 29, 2011.  As a result of our renegotiated contract, in the first quarter of fiscal 2011 we eliminated $34.1 million of previously recorded unfavorable contract liability.  

During the 12 and 28 weeks ended September 10, 2011, we rejected 19 and 63 of our leases, respectively, through the bankruptcy process and reduced the closed locations reserves balance associated with these leases by $13.5 million and $52.6 million, respectively, $13.4 million and $44.1 million of which was attributed to continuing operations, respectively, and $0.1 million and $8.5 million was attributed to discontinued operations, respectively, net to the allowable claim for damages of $17.4 million and $55.3 million for the respective periods then ended.  Our total closed locations reserves balance of $189.8 million relates to damage claims of $186.8 million and $3.0 million pertains to locations for which the leases have not been rejected as of September 10, 2011. In connection with the rejection of the 19 and 63 leases during the 12 and 28 weeks ended September 10, 2011, respectively, we also wrote off the related obligations under capital leases of $2.5 million and $9.8 million, respectively, unfavorable lease liabilities of nil and $3.2 million, respectively, real estate liabilities of $13.7 million and $22.6 million, respectively, deferred real estate income of nil and $9.4 million, respectively, other liabilities of $0.5 million and $0.6 million respectively, with an offsetting write-off of other assets of $0.2 million and $1.0 million, respectively, totaling $16.5 million, net and $44.6 million, net, respectively. Of these amounts, $16.6 million and $43.0 million relate to continuing operations, respectively, and $(0.1) million and $1.6 million relate to discontinued operations, respectively.

During the 28 weeks ended September 10, 2011, we rejected 9 of our assigned leases through the bankruptcy process and wrote-off the related property, net of $13.5 million with an offsetting write-off of deferred real estate income of $41.8 million, totaling $28.3 million. Of this amount, $4.2 million relates to continuing operations and $24.1 million relates to discontinued operations, respectively.