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Lease Termination and Impairment Charges
6 Months Ended
Sep. 02, 2017
Lease Termination and Impairment Charges  
Lease Termination and Impairment Charges

 

5. Lease Termination and Impairment Charges

 

Lease termination and impairment charges consist of amounts as follows:

 

 

 

Thirteen Week Period
Ended

 

Twenty-Six Week Period
Ended

 

 

 

September 2,
2017

 

August 27,
2016

 

September 2,
2017

 

August 27,
2016

 

Impairment charges

 

$

35

 

$

78

 

$

694

 

$

697

 

Lease termination charges

 

3,093

 

7,155

 

6,520

 

12,317

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3,128

 

$

7,233

 

$

7,214

 

$

13,014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Impairment Charges

 

These amounts include the write-down of long-lived assets at locations that were assessed for impairment because of management’s intention to relocate or close the location or because of changes in circumstances that indicated the carrying value of an asset may not be recoverable.

 

Lease Termination Charges

 

As part of the Company’s ongoing business activities, the Company assesses stores and distribution centers for potential closure or relocation. Decisions to close or relocate stores or distribution centers in future periods would result in lease termination charges, lease exit costs and inventory liquidation charges, as well as impairment of assets at these locations. The following table reflects the closed store and distribution center charges that relate to new closures, changes in assumptions and interest accretion:

 

 

 

Thirteen Week Period
Ended

 

Twenty-Six Week Period
Ended

 

 

 

September 2,
2017

 

August 27,
2016

 

September 2,
2017

 

August 27,
2016

 

Balance—beginning of period

 

$

155,666

 

$

198,990

 

$

165,138

 

$

208,421

 

Provision for present value of noncancellable lease payments of closed stores

 

 

2,530

 

913

 

3,152

 

Changes in assumptions about future sublease income, terminations and changes in interest rates

 

201

 

1,096

 

(348

)

1,907

 

Interest accretion

 

2,907

 

3,618

 

6,002

 

7,396

 

Cash payments, net of sublease income

 

(14,763

)

(15,526

)

(27,694

)

(30,168

)

 

 

 

 

 

 

 

 

 

 

Balance—end of period

 

$

144,011

 

$

190,708

 

$

144,011

 

$

190,708