Acquisitions and Goodwill

3 Months Ended

May. 30, 2015

Business Combinations [Abstract]

Acquisitions and Goodwill

Acquisitions and Goodwill

During the thirteen weeks endedMay 30, 2015, the Company completed one immaterial acquisition of assets for total consideration of $8.9 million. The entity from which the assets were acquired operated four specialty running stores in New York. In connection with this acquisition, the Company recorded goodwill of $8.8 million during the thirteen weeks endedMay 30, 2015. Goodwill is deductible for U.S. federal income tax purposes.

The Company allocated the aggregated preliminary purchase price for the acquisition based upon the tangible and intangible assets acquired, net of liabilities. The allocation of the preliminary purchase price is detailed below (in thousands):

	Allocation of Purchase Price
Goodwill	$	8,816
Tangible assets, net of liabilities	115
Total purchase price	$	8,931

During fiscal 2015, the Company completed seven individually immaterial acquisitions of assets for total consideration of $11.4 million, net of cash acquired. A component of the consideration for two of the acquisitions included contingent consideration with an estimated fair value of $0.7 million, which is included within other liabilities and accrued expenses on the consolidated balance sheets. The Company determined the estimated fair values based on discounted cash flow analyses and estimates made by management. The entities from which the assets were acquired operated 20 specialty running stores in Colorado, Indiana, Kansas, Michigan, Missouri, North Carolina, and Utah. In connection with these acquisitions, the Company recorded goodwill of $9.7 million.

During the thirteen weeks endedMay 30, 2015, the Company made the final working capital payments for two of the fiscal 2015 acquisitions, which did not have a material effect on the preliminary purchase price allocation. The Company allocated the aggregated preliminary purchase prices based upon the tangible and intangible assets acquired, net of liabilities. The allocation of the preliminary purchase prices for the fiscal 2015 acquisitions is detailed below (in thousands):

	Allocation of Purchase Price
Goodwill	$	9,719
Tangible assets, net of liabilities	1,699
Total purchase price	$	11,418

A reconciliation of goodwill is detailed below (in thousands):

	Goodwill
Balance as of March 1, 2014	$	25,608
Acquisitions	9,067
Other	44
Balance as of February 28, 2015	34,719
Acquisitions	8,816
Other	652
Balance as of May 30, 2015	$	44,187