Lease Termination and Impairment Charges (Tables)

12 Months Ended

Mar. 03, 2012

Lease Termination and Impairment Charges

Schedule of lease termination and impairment charges consisting of amounts and number of locations

	Year Ended
	March 3, 2012				February 26, 2011				February 27, 2010
	Number		Charge		Number		Charge		Number		Charge
Closed facilities:
Actual and approved store closings		55	$	2,283		51	$	3,278		67	$	5,479
Actual and approved relocations		2		499		1		317		7		3,108
Distribution center closings		—		—		1		94		1		5,689
Existing surplus properties		12		5,863		17		2,433		23		12,315
Total impairment charges-closed facilities		69		8,645		70		6,122		98		26,591
Active stores:
Additional current period charges for stores previously impaired in prior periods(1)		591		9,822		584		17,825		437		7,710
Charges for new and relocated stores that did not meet their asset recoverability test in the current period(2)		19		18,926		44		36,015		32		17,260
Charges for the remaining stores that did not meet their asset recoverability test in the current period(3)		53		14,605		167		55,159		104		23,914
Total impairment charges-active stores		663		43,353		795		108,999		573		48,884
Total impairment charges-all locations		732	$	51,998		865	$	115,121		671	$	75,475
Total number of active stores		4,667				4,714				4,780
Stores impaired in prior periods with no current charge		428				263				321
Stores with a current period charge		663				795				573
Total cumulative active stores with impairment charges		1,091				1,058				894

(1)

These charges are related to stores that were impaired for the first time in prior periods. Most active stores, requiring an impairment charge, are fully impaired in the first period that they do not meet their asset recoverability test. However, in each prior period presented, a minority of stores were partially impaired since their fair value supported a reduced net book value. Accordingly, these stores may be further impaired in the current and future periods as a result of changes in their actual or projected cash flows, or changes to their fair value estimates. Also, the Company makes ongoing capital additions to certain stores to improve their operating results or to meet geographical competition, which if later are deemed to be unrecoverable, will be impaired in future periods. Of this total, 583, 577 and 431 stores for fiscal years 2012, 2011 and 2010 respectively have been fully impaired.

(2)

These charges are related to new stores (open at least 3 years) and relocated stores (relocated in the last 2 years) 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 2 years. Their future cash flow projections do not recover their current carrying value. Of this total, 19, 43 and 30 stores for fiscal years 2012, 2011 and 2010 respectively have been fully impaired.

(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 2 years. Their future cash flow projections do not recover their current carrying value. Of this total, 43, 141 and 92 stores for fiscal years 2012, 2011 and 2010 respectively have been fully impaired.

Schedule of fair value of long-lived assets for which an impairment assessment was performed and total losses

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Values as of Impairment Date		Total Charges March 3, 2012
Long-lived assets held and used	$	—	$	23,254	$	36,485	$	59,739	$	(50,718	)
Long-lived assets held for sale		—		5,407		—		5,407		(1,280	)
Total	$	—	$	28,661	$	36,485	$	65,146	$	(51,998	)

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Values as of Impairment Date		Total Charges February 26, 2011
Long-lived assets held and used	$	—	$	21,822	$	43,129	$	64,951	$	(114,330	)
Long-lived assets held for sale		—		2,479		—		2,479		(791	)
Total	$	—	$	24,301	$	43,129	$	67,430	$	(115,121	)

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

	Year Ended
	March 3, 2012 (53 Weeks)			February 26, 2011 (52 Weeks)			February 27, 2010 (52 Weeks)
Balance—beginning of year	$	405,350		$	412,654		$	381,411
Provision for present value of noncancellable lease payments of closed stores		11,832			51,369			80,331
Changes in assumptions about future sublease income, terminations and change in interest rates		11,305			19,585			31,014
Interest accretion		26,084			26,234			26,693
Cash payments, net of sublease income		(86,707	)		(104,492	)		(106,795	)
Balance—end of year	$	367,864		$	405,350		$	412,654

Schedule of revenue and income (loss) before income taxes of stores

	Year Ended
	March 3, 2012			February 26, 2011			February 27, 2010
Revenues	$	179,064		$	352,260		$	640,014
Operating expenses		198,214			393,465			707,699
Gain from sale of assets		(11,969	)		(19,407	)		(32,967	)
Other expenses		(7,220	)		4,232			9,832
Income (loss) before income taxes		39			(26,030	)		(44,550	)
Included in these stores' income (loss) before income taxes are:
Depreciation and amortization		2,183			5,336			11,312
Inventory liquidation charges		1,112			4,897			5,236