Acquisition

9 Months Ended

Nov. 26, 2011

Acquisition

2. Acquisition

On September 1, 2011, the Company acquired substantially all the assets and assumed certain liabilities of the Running Company for a purchase price of $8.5 million which was funded through the Company’s existing cash. As of the acquisition date, the Running Company operated 18 specialty running shops in Connecticut, District of Columbia, Florida, Maryland, Massachusetts, New Jersey, New York, and Texas.

The Company has allocated the purchase price based upon the tangible and intangible assets acquired, net of liabilities, of which may be revised as more definitive facts and evidence become available. The Company’s results of operations included those of the Running Company beginning with the date of acquisition. Pro forma effects of the acquisition have not been presented, as their effects were not significant to the consolidated results of the Company. The allocation of the purchase price is detailed below:

	Allocation of Purchase Price
	(in thousands)
Net unfavorable lease obligation	$	(1,678	)
Goodwill		8,265
Tangible assets, net of liabilities		1,913
Total purchase price	$	8,500

The Company determined the estimated fair values based on discounted cash flow analyses and estimates made by management.