Fair Value Measurements

9 Months Ended

Nov. 29, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair value measurements are determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants exclusive of any transaction costs. The Company utilizes a fair value hierarchy based upon the observability of inputs used in valuation techniques as follows:

Level 1:	Observable inputs such as quoted prices in active markets;
Level 2:	Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
Level 3:	Unobservable inputs in which there is little or no market data, which require the Company to develop its own assumptions.

The following table provides a summary of the recognized assets and liabilities that are measured at fair value on a recurring basis (in thousands):

	November 29, 2014						November 30, 2013						March 1, 2014
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets:
Non-qualified deferred compensation plan	$	6,273	$	—	$	—	$	5,693	$	—	$	—	$	5,869	$	—	$	—
Liabilities:
Contingent consideration liabilities	$	—	$	—	$	350	$	—	$	—	$	1,903	$	—	$	—	$	1,903

Included in Level 1 assets are mutual fund investments under a non-qualified deferred compensation plan. The Company estimates the fair value of these investments on a recurring basis using readily available market prices.

As of November 29, 2014, the Company had one liability that is measured at fair value on a recurring basis related to the contingent consideration for one acquisition for $0.4 million. The liability is adjusted to fair value each reporting period. The categorization of the framework used to price the liability is considered Level 3, due to the subjective nature of the unobservable inputs used to determine the fair value.

There were no transfers into or out of Level 1, Level 2 or Level 3 assets or liabilities for any of the periods presented.

Level 3 Valuation Techniques

Financial assets and liabilities are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable.

The following table provides a reconciliation of the Company’s Level 3 contingent consideration liabilities during the thirty-nine weeks endedNovember 29, 2014 (in thousands):

	Level 3 Liabilities
Balance as of March 1, 2014	$	1,903
Contingent consideration from acquisition	350
Settlement of contingent consideration	(1,903		)
Balance as of November 29, 2014	$	350

The Company has certain assets that are measured at fair value on a non-recurring basis and are adjusted to fair value under certain circumstances, which include those described in Note 8, Impairment Charges and Store Closing Costs. The categorization used to price the assets is considered a Level 3 measurement due to the subjective nature of the unobservable inputs used to determine the fair values.

Additionally, in connection with the acquisitions and purchase price allocations that are described in Note 2, Acquisitions and Goodwill, the Company recognized the acquired assets and liabilities at fair value. All amounts are recognized as Level 3 measurements due to the subjective nature of the unobservable inputs used to determine the fair values.