Reorganization Items, Net

9 Months Ended

Dec. 03, 2011

Reorganization Items, Net [Abstract]

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:

		For the 12			For the 40
		Weeks			Weeks
		Ended			Ended
		Dec. 3,			Dec. 3,
		2011			2011
Professional fees, net	$	(10,200	)	$	(40,036	)
US Trustee fees		(254	)		(766	)
Write-off of balance sheet items related to rejected contracts, net - continuing operations		(56	)		47,101
C&S contract effect		-			34,139
Reduction of closed locations reserve - continuing operations		-			44,078
Reorganization items, net - continuing operations		(10,510	)		84,516
Write-off of balance sheet items related to rejected contracts, net - discontinued operations		-			25,735
Reduction of closed locations reserve - discontinued operations		-			8,474
Provision for income taxes for reorganization items, net - discontinued operations		-			(14,368	)
Total reorganization items, net	$	(10,510	)	$	104,357

For the 12 and 40 weeks ended December 3, 2011, professional fees of $10.2 million and $40.0 million, respectively, were accrued, and $11.4 million and $34.9 million, respectively, were paid related to our Bankruptcy Filing. U.S. Trustee fees of approximately $0.3 million and $0.8 million, respectively, were incurred and paid during the 12 and 40 weeks ended December 3, 2011.

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 40 weeks ended December 3, 2011, we rejected 63 of our leases through the bankruptcy process and reduced the closed locations reserves balance associated with these leases by $52.6 million, $44.1 million of which was attributed to continuing operations and $8.5 million was attributed to discontinued operations. As a result, the net allowable claim for damages amounted to $55.3 million at December 3, 2011. In connection with the rejection of the 63 leases during the 40 weeks ended December 3, 2011, we also wrote off the related obligations under capital leases of $9.8 million, unfavorable lease liabilities of $3.2 million, real estate liabilities of $22.6 million, deferred real estate income of $9.4 million, other liabilities of $0.6 million, with an offsetting write-off of other assets of $1.0 million, totaling $44.6 million, net. Of these amounts, $43.0 million relate to continuing operations and $1.6 million relate to discontinued operations.

During the 40 weeks ended December 3, 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.