Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 03, 2018 | Apr. 27, 2018 | Aug. 26, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 3, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PIR | ||
Entity Registrant Name | PIER 1 IMPORTS INC/DE | ||
Entity Central Index Key | 278,130 | ||
Current Fiscal Year End Date | --03-03 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 82,968,675 | ||
Entity Public Float | $ 338,171,797 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Mar. 03, 2018 | Feb. 25, 2017 | Feb. 27, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 1,798,522 | $ 1,828,446 | $ 1,892,230 |
Cost of sales | 1,140,372 | 1,131,138 | 1,187,250 |
Gross profit | 658,150 | 697,308 | 704,980 |
Selling, general and administrative expenses | 576,878 | 587,843 | 578,828 |
Depreciation | 53,603 | 54,603 | 50,944 |
Operating income | 27,669 | 54,862 | 75,208 |
Nonoperating (income) and expenses: | |||
Interest, investment income and other | (2,590) | (2,470) | (237) |
Interest expense | 12,362 | 12,073 | 12,280 |
Nonoperating (income) and expenses | 9,772 | 9,603 | 12,043 |
Income before income taxes | 17,897 | 45,259 | 63,165 |
Income tax provision | 6,271 | 15,130 | 23,531 |
Net income | $ 11,626 | $ 30,129 | $ 39,634 |
Earnings per share: | |||
Basic | $ 0.14 | $ 0.37 | $ 0.47 |
Diluted | 0.14 | 0.37 | 0.46 |
Dividends declared per share: | $ 0.28 | $ 0.28 | $ 0.28 |
Average shares outstanding during period: | |||
Basic | 80,223 | 80,919 | 84,939 |
Diluted | 80,254 | 80,984 | 85,370 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 03, 2018 | Feb. 25, 2017 | Feb. 27, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 11,626 | $ 30,129 | $ 39,634 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustments, net of taxes of $(167), $60 and $801, respectively | 396 | 1,274 | (2,299) |
Pension adjustments, net of taxes of $293, $(1,243) and $(1,051), respectively | (459) | 1,949 | 1,647 |
Other comprehensive income (loss) | (63) | 3,223 | (652) |
Comprehensive income | $ 11,563 | $ 33,352 | $ 38,982 |
Consolidated Statements of Com4
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 03, 2018 | Feb. 25, 2017 | Feb. 27, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Foreign currency translation adjustments, tax | $ (167) | $ 60 | $ 801 |
Pension and post-retirement reclassification adjustments,taxes | $ 293 | $ (1,243) | $ (1,051) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 03, 2018 | Feb. 25, 2017 |
Current assets: | ||
Cash and cash equivalents, including temporary investments of $115,456 and $149,375, respectively | $ 135,379 | $ 154,460 |
Accounts receivable, net of allowance for doubtful accounts of $236 and $338, respectively | 22,149 | 22,945 |
Inventories | 347,440 | 400,976 |
Prepaid expenses and other current assets | 48,794 | 31,607 |
Total current assets | 553,762 | 609,988 |
Properties and equipment, net | 178,767 | 191,476 |
Other noncurrent assets | 39,790 | 41,618 |
Assets, Total | 772,319 | 843,082 |
Current liabilities: | ||
Accounts payable | 71,279 | 68,981 |
Gift cards and other deferred revenue | 55,281 | 60,398 |
Accrued income taxes payable | 2,301 | 26,058 |
Current portion of long-term debt | 2,000 | 2,000 |
Other accrued liabilities | 106,268 | 133,866 |
Total current liabilities | 237,129 | 291,303 |
Long-term debt | 197,906 | 199,077 |
Other noncurrent liabilities | 59,714 | 60,674 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common stock, $0.001 par, 500,000,000 shares authorized, 125,232,000 issued | 125 | 125 |
Paid-in capital | 168,424 | 191,501 |
Retained earnings | 726,232 | 737,165 |
Cumulative other comprehensive loss | (7,477) | (7,414) |
Less — 41,974,000 and 42,050,000 common shares in treasury, at cost, respectively | (609,734) | (629,349) |
Total shareholders' equity | 277,570 | 292,028 |
Liabilities and Equity, Total | $ 772,319 | $ 843,082 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 03, 2018 | Feb. 25, 2017 |
Statement Of Financial Position [Abstract] | ||
Cash and cash equivalents, temporary investments | $ 115,456 | $ 149,375 |
Accounts receivable, allowance for doubtful accounts | $ 236 | $ 338 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 125,232,000 | 125,232,000 |
Treasury stock, shares | 41,974,000 | 42,050,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Mar. 03, 2018 | Feb. 25, 2017 | Feb. 27, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 11,626,000 | $ 30,129,000 | $ 39,634,000 |
Adjustments to reconcile to net cash provided by operating activities: | |||
Depreciation | 61,430,000 | 60,504,000 | 55,830,000 |
Stock-based compensation expense | 3,809,000 | 8,228,000 | 5,065,000 |
Deferred compensation, net | 2,414,000 | 8,438,000 | 5,641,000 |
Deferred income taxes | 6,012,000 | (19,645,000) | 4,617,000 |
Excess tax benefit from stock-based awards | 0 | (312,000) | (585,000) |
Amortization of deferred gains | (1,072,000) | (1,073,000) | (1,907,000) |
Other | 3,183,000 | 9,374,000 | 2,928,000 |
Change in cash from: | |||
Inventories | 53,536,000 | 4,883,000 | 72,984,000 |
Prepaid expenses and other assets | (17,546,000) | 863,000 | 20,560,000 |
Accounts payable and other liabilities | (33,829,000) | (5,697,000) | (33,611,000) |
Accrued income taxes payable, net of payments | (23,757,000) | 20,046,000 | (7,109,000) |
Net cash provided by operating activities | 65,806,000 | 115,738,000 | 164,047,000 |
Cash flows from investing activities: | |||
Capital expenditures | (53,249,000) | (44,181,000) | (51,813,000) |
Proceeds from disposition of properties | 160,000 | 74,000 | 18,000 |
Proceeds from sale of restricted investments | 27,562,000 | 3,409,000 | 9,020,000 |
Purchase of restricted investments | (26,082,000) | (2,375,000) | (8,914,000) |
Net cash used in investing activities | (51,609,000) | (43,073,000) | (51,689,000) |
Cash flows from financing activities: | |||
Cash dividends | (22,294,000) | (22,501,000) | (23,672,000) |
Purchases of treasury stock | (10,000,000) | (10,566,000) | (75,000,000) |
Stock purchase plan and other, net | 2,307,000 | 1,329,000 | 2,886,000 |
Excess tax benefit from stock-based awards | 312,000 | 585,000 | |
Repayments of long-term debt | (2,000,000) | (2,000,000) | (2,000,000) |
Debt issuance costs | (1,291,000) | ||
Borrowings under revolving line of credit | 8,000,000 | 38,000,000 | 63,000,000 |
Repayments of borrowings under revolving line of credit | (8,000,000) | (38,000,000) | (63,000,000) |
Net cash used in financing activities | (33,278,000) | (33,426,000) | (97,201,000) |
Change in cash and cash equivalents | (19,081,000) | 39,239,000 | 15,157,000 |
Cash and cash equivalents at beginning of period | 154,460,000 | 115,221,000 | 100,064,000 |
Cash and cash equivalents at end of period | 135,379,000 | 154,460,000 | 115,221,000 |
Supplemental cash flow information: | |||
Interest paid | 11,750,000 | 12,219,000 | 12,186,000 |
Income taxes paid, net of refunds | $ 24,388,000 | $ 13,077,000 | $ 26,219,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock Outstanding | Common Stock | Paid-in Capital | Retained Earnings | Cumulative Other Comprehensive Income (Loss) | Treasury Stock |
Beginning Balance at Feb. 28, 2015 | $ 337,267 | $ 125 | $ 222,438 | $ 713,575 | $ (9,985) | $ (588,886) | |
Beginning Balance, Common Stock at Feb. 28, 2015 | 89,912 | ||||||
Net income | 39,634 | 39,634 | |||||
Other comprehensive income (loss) | (652) | (652) | |||||
Purchases of treasury stock | (75,000) | (75,000) | |||||
Purchases of treasury stock (in shares) | (7,461) | ||||||
Stock-based compensation expense | 5,065 | (8,683) | 13,748 | ||||
Stock-based compensation expense (in shares) | 760 | ||||||
Exercise of stock options, stock purchase plan, and other | 2,115 | (2,736) | 4,851 | ||||
Exercise of stock options, stock purchase plan, and other (in shares) | 261 | ||||||
Cash dividends ($0.28 per share) | (23,672) | (23,672) | |||||
Ending Balance at Feb. 27, 2016 | 284,757 | 125 | 211,019 | 729,537 | (10,637) | (645,287) | |
Ending Balance, Common Stock at Feb. 27, 2016 | 83,472 | ||||||
Net income | 30,129 | 30,129 | |||||
Other comprehensive income (loss) | 3,223 | 3,223 | |||||
Purchases of treasury stock | (10,566) | (10,566) | |||||
Purchases of treasury stock (in shares) | (1,794) | ||||||
Stock-based compensation expense | 8,228 | (12,077) | 20,305 | ||||
Stock-based compensation expense (in shares) | 1,302 | ||||||
Exercise of stock options, stock purchase plan, and other | (1,242) | (7,441) | 6,199 | ||||
Exercise of stock options, stock purchase plan, and other (in shares) | 202 | ||||||
Cash dividends ($0.28 per share) | (22,501) | (22,501) | |||||
Ending Balance at Feb. 25, 2017 | 292,028 | 125 | 191,501 | 737,165 | (7,414) | (629,349) | |
Ending Balance, Common Stock at Feb. 25, 2017 | 83,182 | ||||||
Net income | 11,626 | 11,626 | |||||
Other comprehensive income (loss) | (63) | (63) | |||||
Purchases of treasury stock | (10,000) | (10,000) | |||||
Purchases of treasury stock (in shares) | (1,927) | ||||||
Stock-based compensation expense | 3,809 | (19,845) | 23,654 | ||||
Stock-based compensation expense (in shares) | 1,648 | ||||||
Stock purchase plan and other | 2,464 | (3,232) | (265) | 5,961 | |||
Stock purchase plan and other (in shares) | 355 | ||||||
Cash dividends ($0.28 per share) | (22,294) | (22,294) | |||||
Ending Balance at Mar. 03, 2018 | $ 277,570 | $ 125 | $ 168,424 | $ 726,232 | $ (7,477) | $ (609,734) | |
Ending Balance, Common Stock at Mar. 03, 2018 | 83,258 |
Consolidated Statements of Sha9
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Mar. 03, 2018 | Feb. 25, 2017 | Feb. 27, 2016 | |
Statement Of Stockholders Equity [Abstract] | |||
Cash dividends, per share | $ 0.28 | $ 0.28 | $ 0.28 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 03, 2018 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | NOTE 1 – DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Pier 1 Imports, Inc. (together with its consolidated subsidiaries, the “Company”) is dedicated to offering customers exclusive, one-of-a-kind products that reflect high quality at a great value. Starting with a single store in 1962, Pier 1 Imports’ product is now available in retail stores throughout the U.S. and Canada and online at www.pier1.com. The Company directly imports merchandise from many countries, and sells a wide variety of decorative accessories, furniture, candles, housewares, gifts and seasonal products. Additionally, the Company has an arrangement to supply merchandise to be sold in “store within a store” locations in Mexico and El Salvador and online in Mexico that are operated by Sears Operadora de Mexico, S.A. de C.V. and Corporacion de Tiendas Internationales, S.A. de C.V., respectively. Basis of consolidation — The consolidated financial statements of the Company include the accounts of all subsidiaries, and all intercompany transactions and balances have been eliminated upon consolidation. Segment information — The Company is a specialty retailer that offers a broad range of products in its stores and on its website and conducts business as one operating segment. During fiscal 2018, 2017 and 2016, the Company’s domestic operations provided approximately 93% of its net sales, with approximately 6% provided by stores in Canada, and the remainder from royalties received primarily from Sears Operadora de Mexico S.A. de C.V. As of March 3, 2018, February 25, 2017 and February 27, 2016, $3,107,000, $3,244,000 and $3,837,000, respectively, of the Company’s long-lived assets, net of accumulated depreciation, were located in Canada. There were no long-lived assets in Mexico or El Salvador during any period. Use of estimates — Preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Fiscal periods — The Company utilizes 5-4-4 (week) quarterly accounting periods with the fiscal year ending on the Saturday closest to February 28th. Fiscal 2018 ended March 3, 2018, fiscal 2017 ended February 25, 2017, and fiscal 2016 ended February 27, 2016. Fiscal 2018 consisted of a 53-week year and both fiscal 2017 and 2016 were 52-week years. Cash and cash equivalents, including temporary investments — The Company considers all highly liquid investments with an original maturity date of three months or less to be cash equivalents, except for those investments that are restricted and have been set aside in trusts to satisfy retirement obligations and are classified as non-current assets. As of March 3, 2018 and February 25, 2017, the Company’s short-term investments classified as cash equivalents included investments primarily in mutual funds totaling $115,456,000 and $149,375,000, respectively. The effect of foreign currency exchange rate fluctuations on cash was not material. Translation of foreign currencies — Assets and liabilities of foreign operations are translated into U.S. dollars at fiscal year-end exchange rates. Income and expense items are translated at average exchange rates prevailing during the year. Translation adjustments arising from differences in exchange rates from period to period are included as a separate component of shareholders' equity and are included in other comprehensive income (loss). As of March 3, 2018, February 25, 2017 and February 27, 2016, the Company had cumulative other comprehensive loss balances, net of tax, of $(8,054,000), $(8,450,000) and $(9,724,000), respectively, related to cumulative translation adjustments. The adjustments for currency translation during fiscal 2018, 2017 and 2016, resulted in other comprehensive income (loss), net of tax, as applicable, of $396,000, $1,274,000 and $(2,299,000), respectively. Concentrations of risk — The Company has risk of geographic concentration with respect to sourcing the Company’s inventory purchases. However, the Company believes alternative merchandise sources could be procured over a reasonable period of time. Pier 1 Imports sells merchandise imported from many countries, with approximately 59% of its sales derived from merchandise produced in China, 17% derived from merchandise produced in India and 16% collectively derived from merchandise produced in Vietnam, Indonesia and the United States. The remaining sales were from merchandise produced in various other countries around the world. Financial instruments — The fair value of financial instruments is determined by reference to various market data and other valuation techniques as appropriate. There were no assets or liabilities with a fair value significantly different from the recorded value as of March 3, 2018 or February 25, 2017, unless otherwise disclosed . Risk management instruments : The Company may utilize various financial instruments to manage interest rate and market risk associated with its on- and off-balance sheet commitments. Accounts receivable — The Company’s accounts receivable are stated at carrying value less an allowance for doubtful accounts. These receivables consist largely of third-party credit card receivables for which collection is reasonably assured. The remaining receivables are periodically evaluated for collectability, and an allowance for doubtful accounts is recorded as appropriate. Inventories — The Company’s inventory is comprised of finished merchandise and is stated at the lower of weighted average cost and net realizable value. The calculation of cost includes merchandise purchases, the costs to bring the merchandise to distribution centers, warehousing and handling expenditures, and distributing and delivering merchandise to stores and fulfillment centers (direct and indirect). These costs include depreciation of long-lived assets utilized in acquiring, warehousing and distributing inventory. The Company recognizes known inventory losses, shortages and damages when incurred and maintains a reserve for estimated shrinkage since the last physical count, when actual shrinkage was recorded. The amount of the reserve is estimated based on historical experience from the results of its physical inventories. The reserves for estimated shrinkage at the end of fiscal 2018 and 2017 were $4,020,000 and $4,156,000, respectively. Properties and equipment, net — Buildings, equipment, furniture and fixtures, and leasehold improvements are carried at cost less accumulated depreciation. Depreciation is computed using the straight‑line method over estimated remaining useful lives of the assets, generally 30 years for buildings and three to ten years for equipment, furniture and fixtures, and three to five years for computer software. Depreciation of improvements to leased properties is based upon the shorter of the remaining primary lease term or the estimated useful lives of such assets. Depreciation for assets utilized in acquiring, warehousing, distributing and fulfilling inventory is included in cost of sales. All other depreciation costs are included in depreciation and were $53,603,000, $54,603,000 and $50,944,000 in fiscal 2018, 2017 and 2016, respectively. Expenditures for maintenance, repairs and renewals that do not materially prolong the original useful lives of the assets are charged to expense as incurred. In the case of disposals, assets and the related depreciation are removed from the accounts and the net amount, less proceeds from disposal, is credited or charged to income. Long-lived assets are reviewed for impairment at least annually or whenever an event or change in circumstances indicates that their carrying values may not be recoverable. If the impairment analysis indicates that the carrying value of the assets exceeds the sum of the expected undiscounted cash flows, the assets may be considered impaired. For store level long-lived assets, expected cash flows are determined based on management’s estimate of future sales, merchandise margin rates and expenses over the remaining expected terms of the leases. Impairment, if any, is recorded in the period in which the impairment occurred. The Company recorded no material impairment charges in fiscal 2018 or 2016. The Company recorded impairment charges of $2,934,000 in fiscal 2017, which were included in selling, general and administrative (“SG&A”) expenses. As the projection of future cash flows requires the use of judgment and estimates, if actual results differ from the Company’s estimates, additional charges for asset impairments may be recorded in the future. Insurance provision — The Company maintains insurance for workers’ compensation and general liability claims with deductibles of $1,000,000 and $500,000 per occurrence, respectively. The liability recorded for such claims is determined by estimating the total future claims cost for events that occurred prior to the balance sheet date. The estimates consider historical claims loss development factors as well as information obtained from and projections made by the Company’s broker, actuary, insurance carriers and third party claims administrators. The recorded liabilities for workers’ compensation and general liability claims include claims occurring in prior years but not yet settled and reserves for fees. The recorded liability for workers’ compensation claims and fees was $25,316,000 and $25,632,000 at March 3, 2018 and February 25, 2017, respectively. The recorded liability for general liability claims and fees was $6,687,000 and $5,559,000 at March 3, 2018 and February 25, 2017, respectively. Revenue recognition — Revenue is recognized upon customer receipt or delivery for retail sales. A reserve has been established for estimated merchandise returns based upon historical experience and other known factors. The net reserves for estimated merchandise returns at the end of fiscal 2018 and 2017 were $2,805,000 and $3,068,000, respectively. The Company’s revenues are reported net of discounts and returns, net of sales tax, and include wholesale sales and royalties. Amounts charged to customers for shipping and handling are included in net sales. Cost of sales — Cost of sales includes, from acquisition to store delivery, all cost of merchandise sold as well as store occupancy costs. The cost of merchandise sold includes product costs, freight and logistics charges, agent fees, duties, distribution and fulfillment expenses, shipping and packaging, inventory reserves for shrinkage and slow-moving inventory, and other costs necessary to bring the inventory to its final location. These costs include depreciation of long-lived assets utilized in acquiring, warehousing, fulfilling and distributing inventory. Gift cards — Revenue associated with gift cards is recognized when merchandise is sold and a gift card is redeemed as payment. Gift card breakage is estimated and recorded as income based upon an analysis of the Company’s historical data and expected trends in redemption patterns and represents the remaining non-escheatable unused portion of the gift card liability for which the likelihood of redemption is remote. If actual redemption patterns vary from the Company’s estimates or if laws or regulations change, actual gift card breakage may differ from the amounts recorded. For all periods presented, estimated gift card breakage was recognized 30 months after the original issuance and was $4,875,000, $4,825,000 and $4,925,000 in fiscal 2018, 2017 and 2016, respectively. Leases — The Company leases certain property consisting principally of retail stores, warehouses, its corporate headquarters and material handling and office equipment under operating leases expiring through fiscal 2030. Most retail store locations were leased for primary terms of ten years with varying renewal options and rent escalation clauses. Escalations occurring during the primary terms of the leases are included in the calculation of the future minimum lease payments, and the rent expense related to these leases is recognized on a straight-line basis over the lease term, including free rent periods prior to the opening of its locations. The portion of rent expense applicable to a location before opening is included in SG&A expenses. Once opened for business, rent expense is included in cost of sales. Certain leases provide for additional rental payments based on a percentage of sales in excess of a specified base. This additio nal rent is accrued when it appears probable that the sales will exceed the specified base. Construction allowances received from landlords are initially recorded as lease liabilities and amortized as a reduction of rental expense over the primary lease term. Advertising costs — Advertising production costs are expensed the first time the advertising occurs and all other advertising costs are expensed as incurred. Advertising costs primarily include event and seasonal mailers, radio, newspaper, television and digital advertising and were $99,568,000, $101,780,000 and $88,405,000 in fiscal 2018, 2017 and 2016, respectively. Prepaid advertising at the end of fiscal years 2018 and 2017 was $3,012,000 and $3,216,000, respectively. Defined benefit plans — The Company maintains supplemental retirement plans for certain of its former executive officers. These plans provide that upon death, disability, reaching retirement age or certain termination events, a participant will receive benefits based on highest compensation, years of service and years of plan participation. These benefit costs are dependent upon numerous factors, assumptions and estimates. Benefit costs may be significantly affected by changes in key actuarial assumptions used to determine the projected benefit obligation, such as discount rates. In accordance with accounting rules, changes in benefit obligations associated with these factors may not be immediately recognized as costs in the statement of operations, but recognized in future years over the average remaining lifetime of plan participants. See Note 5 of the Notes to Consolidated Financial Statements for further discussion . Income taxes — The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and income tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Tax Cuts and Jobs Act of 2017 (“Tax Act”), which was enacted on December 22, 2017, significantly changes U.S. corporate income tax laws by, among other things, reducing the U.S. federal corporate tax rate from 35% to 21%. Accordingly, the Company made a provisional remeasurement of its federal deferred tax assets and liabilities to reflect the lower federal tax rate in the fourth quarter of fiscal 2018. See Note 7 to the Consolidated Financial Statements - Income Taxes for additional information. Deferred tax assets and liabilities are recorded in the Company’s consolidated balance sheet and are classified as noncurrent. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized. In assessing the need for a valuation allowance, all available evidence is considered including past operating results, estimates of future income and tax planning strategies. The Company is subject to income tax in many jurisdictions, including the United States, various states, provinces, localities and foreign countries, for which the Company records estimated reserves for unrecognized tax benefits for both domestic and foreign income tax issues. At any point in time, multiple tax years are subject to audit by these various jurisdictions. However, the timing of these audits and negotiations with taxing authorities may yield results different from those currently estimated. See Note 7 of the Notes to Consolidated Financial Statements for further discussion . Earnings per share — Basic earnings per share amounts were determined by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share amounts were similarly computed, and have included the effect, if dilutive, of the Company's weighted average number of stock options outstanding and shares of unvested restricted stock. Earnings per share amounts were calculated as follows (in thousands except per share amounts): 2018 2017 2016 Net income $ 11,626 $ 30,129 $ 39,634 Weighted average shares outstanding: Basic 80,223 80,919 84,939 Effect of dilutive stock options 1 17 316 Effect of dilutive restricted stock 30 48 115 Diluted 80,254 80,984 85,370 Earnings per share: Basic $ 0.14 $ 0.37 $ 0.47 Diluted $ 0.14 $ 0.37 $ 0.46 Outstanding stock options totaling 361,523 for fiscal 2018, 900,933 for fiscal 2017 and 402,311 for fiscal 2016 were excluded from the computation of earnings per share, as the effect would be antidilutive. Stock-based compensation — The Company’s stock-based compensation relates to stock options, restricted stock awards and director deferred stock units. Accounting guidance requires measurement and recognition of compensation expense at an amount equal to the grant date fair value. Compensation expense is recognized for any unvested stock option awards and restricted stock awards on a straight-line basis or ratably over the requisite service period. Stock option exercise prices equal the fair market value of the shares on the date of the grant. The fair value of stock options is calculated using a Black-Scholes option pricing model. For time-based and most performance-based restricted stock awards, compensation expense is measured and recorded using the closing price of the Company’s stock on the date of grant. If the date of grant for stock options or restricted stock awards occurs on a day when the Company’s stock is not traded, the closing price on the last trading day before the date of grant is used. A majority of the performance-based shares vest upon the Company satisfying certain performance targets. The Company records compensation expense for these awards with a performance condition when it is probable that the condition will be achieved. The compensation expense ultimately recognized, if any, related to these awards will equal the grant date fair value for the number of shares for which the performance condition has been satisfied. The remaining performance-based shares may vest if certain annual equivalent returns of total shareholder return targets are achieved in comparison to a peer group. The fair value for these performance-based shares was determined using a lattice valuation model in accordance with accounting guidelines. See Note 6 of the Notes to Consolidated Financial Statements for further discussion . Beginning in fiscal 2018, the Company recognizes forfeitures of awards as they occur. Prior to fiscal 2018, the Company estimated forfeitures based on its historical forfeiture experience and adjusted forfeiture estimates based on actual forfeitures. The effect of any forfeiture adjustments was not material for the periods presented. New accounting standards — In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606).” In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date.” ASU 2015-14 defers the effective date of revenue standard ASU 2014-09 by one year for all entities and permits early adoption on a limited basis. During fiscal 2017, additional ASUs were issued related to this revenue guidance. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations.” ASU 2016-08 is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which clarifies the implementation guidance on identifying performance obligations. In December 2016, the FASB issued ASU 2016-20, “ Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers .” ASU 2016-20 allows entities not to make quantitative disclosures about remaining performance obligations in certain cases and requires entities that use any of the new or previously existing optional exemptions to expand their qualitative disclosures. ASU 2016-20 also makes additional technical corrections and improvements to the new revenue standard. The amendments have the same effective date and transition requirements as the revenue standard. The above ASUs are effective for the Company beginning in the first quarter of fiscal 2019. The adoption of this guidance will result in a change in the timing of revenue recognition for income related to gift card breakage; based on current redemption patterns, post-adoption recognition will begin in the month a gift card is issued, instead of when further redemptions are remote. The Company will adopt this standard in the first quarter of fiscal 2019 using the modified retrospective method. Under this method at adoption, the Company will record a cumulative adjustment to increase retained earnings and decrease gift cards and other deferred revenue by $9,444,000 ($7,021,000, net of tax) related to the change in gift card breakage income. In April 2015, the FASB issued ASU 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” “Technical Corrections and Improvements” In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” In March 2016, the FASB issued ASU 2016-09, “Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” ASU 2016-09 requires entities to record excess tax benefits and deficiencies as income tax benefit or expense in the income statement. In addition, excess tax benefits are required to be presented as an operating activity in the Statement of Cash Flows. The Company adopted these provisions of ASU 2016-09 on a prospective basis in the first quarter of fiscal 2018. ASU 2016-09 also allows an entity to make an accounting policy election to either recognize forfeitures of share-based payment awards as they occur or estimate the number of awards expected to forfeit. The Company recognizes forfeitures of share-based payment awards as they occur and recorded a cumulative adjustment to retained earnings for this change. The adoption of ASU 2016-09 did not have a material impact on the Company’s financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230).” In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230) Restricted Cash.” In March 2017, the FASB issued ASU 2017-07, “Compensation Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” In May 2017, the FASB issued ASU 2017-09, “ Scope of Modification Accounting In February 2018, the FASB issued ASU 2018-02, “ Income Statement Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. |
Properties and Equipment, Net
Properties and Equipment, Net | 12 Months Ended |
Mar. 03, 2018 | |
Property Plant And Equipment [Abstract] | |
Properties and Equipment, Net | NOTE 2 – PROPERTIES AND EQUIPMENT, NET Properties and equipment, net are summarized as follows at March 3, 2018 and February 25, 2017 (in thousands): 2018 2017 Land $ 535 $ 535 Buildings 8,077 8,077 Equipment, furniture, fixtures and other 367,171 344,893 Leasehold improvements 216,687 210,811 Computer software 137,815 123,855 Projects in progress 2,959 8,860 733,244 697,031 Less accumulated depreciation 554,477 505,555 Properties and equipment, net $ 178,767 $ 191,476 |
Other Accrued Liabilities and N
Other Accrued Liabilities and Noncurrent Liabilities | 12 Months Ended |
Mar. 03, 2018 | |
Payables And Accruals [Abstract] | |
Other Accrued Liabilities and Noncurrent Liabilities | NOTE 3 – OTHER ACCRUED LIABILITIES AND NONCURRENT LIABILITIES The following is a summary of other accrued liabilities and noncurrent liabilities at March 3, 2018 and February 25, 2017 (in thousands): 2018 2017 Accrued payroll and other employee-related liabilities $ 56,336 $ 82,028 Accrued taxes, other than income 24,414 27,818 Rent-related liabilities 8,755 8,655 Other 16,763 15,365 Other accrued liabilities $ 106,268 $ 133,866 Rent-related liabilities $ 33,993 $ 32,420 Deferred gains 2,516 3,522 Retirement benefits 18,512 21,301 Other 4,693 3,431 Other noncurrent liabilities $ 59,714 $ 60,674 |
Long-Term Debt and Available Cr
Long-Term Debt and Available Credit | 12 Months Ended |
Mar. 03, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Available Credit | NOTE 4 – LONG-TERM DEBT AND AVAILABLE CREDIT Industrial Revenue Bonds — The Company has industrial revenue bonds outstanding totaling $9,500,000 at March 3, 2018 and February 25, 2017. The Company’s industrial revenue bonds have been outstanding since fiscal 1987. Proceeds were used to construct warehouse/distribution facilities. The loan agreements and related tax-exempt bonds mature in the year 2026. The Company’s interest rates on the loans are based on the bond interest rates, which are market driven, reset weekly and are similar to other tax-exempt municipal debt issues. The Company’s weighted average effective interest rate, including standby letter of credit fees, was 2.8%, 2.2% and 1.7% for fiscal 2018, 2017 and 2016, respectively. Revolving Credit Facility — At the end of fiscal 2017, and through the first quarter of fiscal 2018, the Company had a $350,000,000 secured revolving credit facility with a $100,000,000 accordion feature. On June 2, 2017, the Company entered into a Second Amended and Restated Credit Agreement which amended certain terms of the facility, including extending the maturity date from June 18, 2018 to June 2, 2022, and increasing the amount of the accordion feature to $150,000,000 (as amended herein referred to as the “Revolving Credit Facility”). Provided that there is no default and no default would occur as a result thereof, the Company may request that the Revolving Credit Facility be increased to an amount not to exceed $500,000,000. The Revolving Credit Facility continues to be secured primarily by the Company's eligible merchandise inventory and third-party credit card receivables and certain related assets on a first priority basis and by a second lien on substantially all other assets of certain of the Company’s subsidiaries, subject to certain exceptions. At the Company’s option, borrowings will bear interest, payable quarterly or, if earlier, at the end of each interest period, at either (a) the adjusted LIBOR rate as defined in the Revolving Credit Facility plus a spread varying from 125 to 150 basis points per annum, depending on the amount then borrowed under the Revolving Credit Facility, or (b) the prime rate as defined in the Revolving Credit Facility plus a spread varying from 25 to 50 basis points per annum, depending on the amount then borrowed under the Revolving Credit Facility. The amendment did not result in any other material changes to the Revolving Credit Facility. The Company pays a fee ranging from 125 to 150 basis points per year for standby letters of credit depending on the average daily availability as defined by the facility, 62.5 to 75.0 basis points per year for trade letters of credit, and a commitment fee of 25 basis points per year for any unused amounts. As of March 3, 2018 and February 25, 2017, the fee for standby letters of credit was 125 basis points per year and 62.5 basis points per year for trade letters of credit. In addition, the Company will pay, when applicable, letter of credit fronting fees on the amount of letters of credit outstanding. The Revolving Credit Facility includes a requirement that the Company has minimum availability equal to the greater of 10% of the line cap, as defined under the Revolving Credit Facility, or $20,000,000. The Company’s Revolving Credit Facility may limit the ability of the Company to, among other things, incur or guarantee additional indebtedness, pay dividends on, or redeem or repurchase capital stock, make certain acquisitions or investments, incur or permit to exist certain liens, enter into transactions with affiliates or sell the Company’s assets to, or merge or consolidate with or into, another company, in each case, subject to certain exceptions. The Company will not be restricted from paying certain dividends unless credit extensions on the line result in availability over a specified period of time that is projected to be less than 15.0% of the lesser of either $350,000,000 or the calculated borrowing base, subject to the Company meeting a fixed charge coverage requirement when availability over the same specified period of time is projected to be less than 20.0% of the lesser of either $350,000,000 or the calculated borrowing base. During fiscal 2018, 2017 and 2016 the Company repaid all cash borrowings. Credit extensions under the Revolving Credit Facility are limited to the lesser of $350,000,000 or the amount of the calculated borrowing base, as defined by the agreement, which was $294,416,000 as of March 3, 2018. The borrowing base calculation is subject to advance rates and commercially reasonable availability reserves. As of March 3, 2018, the Company utilized approximately $41,481,000 in letters of credit and bankers’ acceptances against the Revolving Credit Facility. Of the outstanding balance, approximately $23,966,000 related to a standby letter of credit for the Company’s workers’ compensation and general liability insurance policies, $9,715,000 related to a standby letter of credit related to the Company’s industrial revenue bonds and $7,800,000 related to other miscellaneous standby letters of credit. After excluding the $41,481,000 in utilized letters of credit and bankers’ acceptances from the borrowing base, $252,935,000 remained available for cash borrowings. Term Loan Facility — The Company entered into the senior secured term loan facility (“Term Loan Facility”) on April 30, 2014. The Term Loan Facility matures on April 30, 2021, and is secured by a second lien on all assets subject to a first lien under the Revolving Credit Facility and a first lien on substantially all other assets of certain of the Company’s subsidiaries, subject to certain exceptions. At the Company’s option, borrowings under the Term Loan Facility will bear interest, payable quarterly or, if earlier, at the end of each interest period, at either (a) the LIBOR rate as defined in the Term Loan Facility subject to a 1% floor plus 350 basis points per year or (b) the base rate as defined in the Term Loan Facility subject to a 2% floor plus 250 basis points per year. The Company’s weighted average effective interest rate, including fees, was 5.5% for fiscal 2018. As of March 3, 2018, the Company had $193,000,000 in borrowings under the Term Loan Facility with a carrying value of $190,495,000, net of unamortized discounts and debt issuance costs. The proceeds of the loan were used for general corporate purposes, including working capital needs, capital expenditures, and share repurchases and dividends permitted under the Term Loan Facility. The Term Loan Facility is subject to quarterly amortization of principal equal to 0.25% of the original aggregate principal amount of the loans, with the balance due at final maturity. The Company is subject to an annual excess cash flow repayment requirement, as defined in the Term Loan Facility. At the Company’s option, and subject to the requirements and provisions of the Term Loan Facility, the Company can prepay the Term Loan Facility at any time. The fair value of the amount outstanding under the Term Loan Facility was approximately $183,833,000 as of March 3, 2018, which was measured at fair value using the quoted market price. The fair value measurement is classified as Level 2 in the fair value hierarchy based on the frequency and volume of trading for which the price was readily available. Level 2 inputs include quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. The Term Loan Facility includes restrictions on the Company’s ability to, among other things, incur or guarantee additional indebtedness, pay dividends on, or redeem or repurchase shares of the Company’s capital stock, make certain acquisitions or investments, materially change the business of the Company, incur or permit to exist certain liens, enter into transactions with affiliates or sell the Company’s assets to, or merge or consolidate with or into, another company, in each case subject to certain exceptions. The Term Loan Facility does not require the Company to comply with any financial maintenance covenants, but contains certain customary representations and warranties, affirmative covenants and provisions relating to events of default. The Term Loan Facility provides for incremental facilities, subject to certain conditions, including the meeting of certain leverage ratio requirements as defined therein, to the extent such facilities exceed an incremental $200,000,000. The Term Loan Facility matures as follows (in thousands): Fiscal Year Amount 2019 $ 2,000 2020 2,000 2021 2,000 2022 187,000 Total 193,000 Debt Issuance Costs (1,620 ) Debt Discount (885 ) Total Debt $ 190,495 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Mar. 03, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | NOTE 5 – EMPLOYEE BENEFIT PLANS The Company offers a qualified defined contribution employee retirement plan to all of its full- and part-time personnel who are at least 18 years old and have been employed for a minimum of 60 days. During fiscal 2018, 2017 and 2016, employees received a matching Company contribution on the first 5% of eligible compensation contributed, for a total Company contribution of up to 3%. Company contributions to the plan were $3,164,000, $2,958,000 and $2,823,000 in fiscal 2018, 2017 and 2016, respectively. In addition, the Company offers non-qualified deferred compensation plans (“Non-Qualified Plans”) for the purpose of providing deferred compensation for certain employees. The Company's expense for the Non-Qualified Plans was $1,915,000, $2,347,000 and $13,000 for fiscal 2018, 2017 and 2016, respectively. The fiscal 2017 increase compared to fiscal 2016 was a result of higher earnings on deferrals. The Company has trusts established for the purpose of setting aside funds to settle certain obligations of the Non-Qualified Plans, and contributed $2,429,000 and used $3,909,000 to satisfy a portion of retirement obligations during fiscal 2018. The Company also contributed $1,375,000 and used $2,474,000 to satisfy a portion of retirement obligations during fiscal 2017. The trusts’ assets included investments and life insurance policies on the lives of former key executives. As of March 3, 2018 and February 25, 2017, the trusts’ investments had an aggregate value of $9,825,000 and $10,236,000, respectively. The investments were held primarily in mutual funds and are classified as other noncurrent assets. All investments held in the trusts are valued at fair value using Level 1 Inputs, which are unadjusted quoted prices in active markets for identical assets or liabilities. The Company has accounted for the restricted investments as trading securities. The life insurance policies held in the trusts are carried at fair value and were classified as other noncurrent assets. The policies had cash surrender values of $6,209,000 and $6,060,000, and death benefits of $11,392,000 and $11,373,000 as of March 3, 2018 and February 25, 2017, respectively. The trusts’ assets are restricted and may only be used to satisfy obligations to the Non-Qualified Plans’ participants. The Company also owns and is the beneficiary of a number of life insurance policies on the lives of former key executives that are unrestricted as to use. At the discretion of the Company’s Board of Directors, such policies could be contributed to the trusts described above or to the trusts established for the purpose of setting aside funds to be used to satisfy obligations arising from supplemental retirement plans described below. The cash surrender value of the unrestricted policies was $14,077,000 and $13,739,000, and the death benefit was $20,388,000 and $20,246,000 as of March 3, 2018 and February 25, 2017, respectively. The cash surrender value of these policies is included in other noncurrent assets. The Company maintains supplemental retirement plans for certain of its former executive officers. These plans provide that upon death, disability, reaching retirement age or certain termination events, a participant will receive benefits based on highest compensation, years of service and years of plan participation. The Company recorded expenses related to the plans of $1,214,000, $6,990,000 and $3,555,000 in fiscal 2018, 2017 and 2016, respectively. Fiscal 2017 included a curtailment charge related to revised defined benefit plan assumptions of $1,562,000 and a settlement expense of $1,868,000 as a result of the departure of the Company’s former Chief Executive Officer (“former CEO”). These supplemental retirement plans are not funded and thus have no plan assets. However, a trust has been established for the purpose of setting aside funds to settle the plans’ obligations upon retirement or death of certain participants. The trust assets are consolidated in the Company’s financial statements and consist of interest bearing investments in the amount of $98,000 and $97,000 as of March 3, 2018 and February 25, 2017, respectively, which are included in other noncurrent assets. The investments are restricted and may only be used to satisfy retirement obligations to certain participants. The Company has accounted for the restricted investments as available-for-sale securities. During fiscal 2018, the Company contributed and used $23,653,000 to fund obligations for retirement benefits related to the departure of Company’s former CEO, who retired during fiscal 2017 and received payment during fiscal 2018. During fiscal 2017, the Company contributed $1,000,000 and used $935,000 to fund tax obligations for retirement benefits related to the departure of the Company’s former CEO. Any future contributions will be made at the discretion of the Company’s Board of Directors. Funds from the trust will be used to fund or partially fund benefit payments. The Company expects to pay $5,052,000 during fiscal 2019, $172,000 during fiscal 2020, $247,000 during fiscal 2021, $246,000 during fiscal 2022, $245,000 during fiscal 2023, and $1,200,000 during fiscal years 2024 through 2028 under the plans. Measurement of obligations for the plans is calculated as of each fiscal year end. The following provides a reconciliation of benefit obligations and funded status of the plans as of March 3, 2018 and February 25, 2017 (in thousands): 2018 2017 Change in projected benefit obligation: Projected benefit obligation, beginning of year $ 7,671 $ 28,191 Service cost 289 917 Interest cost 285 696 Actuarial loss 584 705 Benefits paid (including settlements) (126 ) (24,355 ) Curtailment 81 1,517 Projected benefit obligation, end of year $ 8,784 $ 7,671 Reconciliation of funded status: Projected benefit obligation $ 8,784 $ 7,671 Plan assets — — Funded status $ (8,784 ) $ (7,671 ) Accumulated benefit obligation $ (8,784 ) $ (7,671 ) Amounts recognized in the balance sheets: Current liability $ (5,052 ) $ (127 ) Noncurrent liability (3,732 ) (7,544 ) Accumulated other comprehensive loss, pre-tax 584 559 Net amount recognized $ (8,200 ) $ (7,112 ) Cumulative other comprehensive income, net of taxes of $1,650 and $1,640 in fiscal 2018 and 2017, respectively $ (1,066 ) $ (1,081 ) Weighted average assumptions used to determine: Benefit obligation, end of year: Discount rate 3.50 % 3.75 % Lump-sum conversion discount rate 2.31 % 3.00 % Rate of compensation increase 0.00 % 3.00 % Net periodic benefit cost for years ended: Discount rate 3.75 % 2.75 % Lump-sum conversion discount rate 3.00 % 3.50 % Rate of compensation increase 0.00 % 0.00 % As of March 3, 2018, a lump sum retirement benefit of approximately $4,900,000 was payable under the Pier 1 Imports, Inc. Supplemental Retirement Plan. The lump sum distribution payment was included in the projected benefit obligation at fiscal 2018 year end and will be paid in fiscal 2019. The Company will record an estimated settlement expense of $326,000 during the first quarter of fiscal 2019 in connection with this benefit payment. At the end of fiscal 2017, the Company’s former CEO had earned an early retirement lump sum benefit of $24,228,000, which was included in other accrued liabilities at fiscal 2017 year end, and was paid in fiscal 2018. Net periodic benefit cost included the following actuarially determined components during fiscal 2018, 2017 and 2016 as shown in the table below (in thousands). The amortization of amounts related to unrecognized prior service costs and net actuarial loss were reclassified out of other comprehensive income as a component of net periodic benefit cost. 2018 2017 2016 Service cost $ 289 $ 917 $ 1,468 Interest cost 285 696 634 Amortization of unrecognized prior service cost 30 45 59 Amortization of net actuarial loss 529 1,902 1,394 Settlement — 1,868 — Curtailment 81 1,562 — Net periodic benefit cost $ 1,214 $ 6,990 $ 3,555 As of March 3, 2018 and February 25, 2017, cumulative other comprehensive loss included amounts that had not been recognized as components of net periodic benefit cost related to prior service cost of zero and $30,000, and net actuarial loss of $584,000 and $529,000, respectively. During fiscal 2018, 2017 and 2016, $(584,000), $(705,000) and $(812,000), respectively, were recognized in other comprehensive income (loss) related to net actuarial loss for the period. The estimated net actuarial loss that will be amortized from cumulative other comprehensive loss into net periodic benefit cost in fiscal 2019 is $13,000. |
Matters Concerning Shareholders
Matters Concerning Shareholders' Equity | 12 Months Ended |
Mar. 03, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Matters Concerning Shareholders' Equity | NOTE 6 – MATTERS CONCERNING SHAREHOLDERS' EQUITY Stock Incentive Plan — The Pier 1 Imports, Inc. 2015 Stock Incentive Plan (“2015 Plan”) was approved by the shareholders on June 25, 2015. The aggregate number of shares available for issuance under the 2015 Plan included (i) a new authorization of 2,500,000 shares, plus (ii) 2,507,407 shares that remained available for grant under the Pier 1 Imports, Inc. 2006 Stock Incentive Plan (“2006 Plan”) as of June 25, 2015, increased by the number of shares subject to outstanding awards under the 2006 Plan as of June 25, 2015, which was 3,009,974 shares that cease for any reason to be subject to such awards (other than by reason of exercise or settlement of the awards to the extent that they are exercised for or settled in vested and non-forfeitable shares of common stock or that are withheld for payment of applicable employment taxes and/or withholding obligations of an award), plus (iii) 4,000,000 shares approved by the shareholders on June 22, 2017, in the First Amendment to the 2015 Plan, subject to adjustment in the event of stock splits and certain other corporate events. As of March 3, 2018, there were a total of 6,023,157 shares available for issuance under the 2015 Plan. Equity awarded to President and Chief Executive Officer — Alasdair B. James joined the Company during the first quarter of fiscal 2018 as President and Chief Executive Officer (“CEO”) and received equity awards of stock options and restricted stock. A portion of the equity awards were granted as an employment inducement award and were not under the 2015 Plan. The stock options, valued at approximately $1,000,000 (based on the closing price of the Company’s common stock on the grant date and Black-Scholes modeling), have a ten-year term, an exercise price equal to $6.68, and will vest 25% on the third anniversary of the grant date, 25% on the fourth anniversary of the grant date and 50% on the fifth anniversary of the grant date, subject to Mr. James’ continued employment. The restricted stock consisted of two grants. The first grant was time-based restricted stock valued at approximately $500,000 on the grant date that will cliff vest after three years. The second grant had a value of approximately $2,000,000 on the grant date with 25% of the grant being time-based shares that will vest 33%, 33%, and 34% each year over a three-year period beginning on the first anniversary of the award date, and 75% of the grant being performance-based shares that may vest following the end of fiscal 2020 if the Company achieves certain targeted levels of performance measures established in fiscal 2018. The performance-based shares are subject to an increase or decrease of 10% based on the total shareholder return of the Company compared to the peer group (“TSR Modifier”). The number of restricted shares awarded was based on a 30-day trailing average of the closing price of the Company’s common stock and vesting is subject to continued employment. Restricted stock awarded to certain employees — During fiscal 2018, the Company awarded long-term incentive awards under the 2015 Plan to certain employees. Fiscal 2018 long-term incentive awards were comprised of restricted stock grants that were divided between time-based and performance-based awards. The time-based shares vest 33%, 33% and 34% each year over a three-year period beginning on the first anniversary of the award date provided that the participant is employed on the vesting date. The performance-based shares may vest following the end of fiscal 2020 if the Company achieves certain targeted levels of performance measures established in fiscal 2018. The performance-based shares are subject to the TSR Modifier described above. Vesting of the performance-based shares is conditioned upon the participant being employed on the date of filing of the Company’s fiscal 2020 Annual Report on Form 10-K with the Securities and Exchange Commission . Restricted stock compensation expense — Compensation expense for restricted stock was $3,612,000, $8,180,000 and $4,978,000 in fiscal 2018, 2017 and 2016, respectively. Fiscal 2017 includes additional expense of $3,908,000 for the accelerated vesting of unvested restricted stock awards for the former CEO. In accordance with accounting guidelines, the Company expenses time-based shares over the requisite service period. For performance-based awards, expense is recognized based on the probability of the Company achieving performance targets. For fiscal 2018, 2017 and 2016 the target levels of performance measures were not achieved and all or a portion of eligible shares did not vest. As of March 3, 2018, there was $23,989,000 of total unrecognized compensation expense related to restricted stock that may be recognized over a weighted average period of 1.5 years. The total fair value of restricted stock awards vested was $2,112,000, $3,671,000 and $2,510,000 in fiscal 2018, 2017 and 2016, respectively. The Company realized a total tax benefit related to stock-based compensation of $736,000, $1,783,000 and $1,270,000 during fiscal years 2018, 2017 and 2016, respectively. For fiscal years 2017 and 2016, $312,000 and $585,000 were recorded as excess tax benefits, respectively. There was no excess tax benefit recorded for fiscal 2018. See Note 7 of the Notes to Consolidated Financial Statements . As of March 3, 2018 and February 25, 2017, the Company had 4,049,614 and 2,710,011 unvested shares of restricted stock outstanding, respectively. Stock options — Options were granted at exercise prices equal to the fair market value of the Company’s common stock on the date of grant. Except for the stock options granted to the CEO described above, options currently exercisable issued under both the 2006 Plan and the 2015 Plan vest over a period of four years. Stock options have a term of ten years from the grant date and will be fully vested upon death, disability or retirement of the associate. The Compensation Committee of the Board of Directors serves as the administrative committee of the 2006 Plan and 2015 Plan and has the discretion to take certain actions with respect to stock options, such as accelerating the vesting, upon certain corporate changes (as defined in the 2006 Plan and 2015 Plan). A summary of stock option transactions related to the Company’s stock option grants during the three fiscal years is as follows : Weighted Exercisable Shares Weighted Average Weighted Average Fair Value Average Exercise at Date of Number Exercise Shares Price Grant of Shares Price Outstanding at February 28, 2015 1,448,548 $ 8.09 1,419,712 $ 7.86 Options granted 15,500 14.04 $ 3.98 Options exercised (77,500 ) 7.46 Options cancelled or expired (176,000 ) 14.06 Outstanding at February 27, 2016 1,210,548 7.34 1,176,974 7.06 Options granted 23,000 6.99 2.85 Options exercised (966,500 ) 6.71 Options cancelled or expired (142,248 ) 10.57 Outstanding at February 25, 2017 124,800 8.50 107,800 8.22 Options granted 320,469 6.68 3.21 Options exercised — — Options cancelled or expired (40,000 ) 7.77 Outstanding at March 3, 2018 405,269 7.13 73,250 8.76 For options outstanding at March 3, 2018: Weighted Average Weighted Weighted Remaining Average Average Contractual Shares Exercise Price- Total Exercise Life (in Currently Exercisable Ranges of Exercise Prices Shares Price years) Exercisable Shares $4.24 — $6.59 19,500 $ 5.38 4.72 10,000 $ 4.24 $6.68 — $11.47 371,569 6.83 7.95 52,725 7.68 $14.04 — $23.19 14,200 17.43 5.94 10,525 18.43 As of March 3, 2018, the weighted average remaining contractual term for outstanding and exercisable options was 7.7 years and 1.4 years, respectively. There was no aggregate intrinsic value for outstanding or exercisable options at fiscal 2018 year end. The total intrinsic value of options exercised for fiscal years 2017 and 2016 was approximately $1,137,000 and $430,000, respectively. The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. There were no options exercised in fiscal year 2018. At March 3, 2018, there was approximately $863,000 of total unrecognized compensation expense related to unvested stock option awards, which is expected to be recognized over a weighted average period of 4.1 years. The fair value of the stock options is amortized as compensation expense over the vesting periods of the options. The Company recorded stock-based compensation expense related to stock options of approximately $197,000, $48,000 and $87,000 in fiscal 2018, 2017 and 2016, respectively. Director deferred stock units — The 2015 Plan and certain prior plans authorize director deferred stock unit awards to non-employee directors. Directors can elect to defer all or a portion of their director's cash fees into a deferred stock unit account. The annual retainer fees deferred (other than committee chairman and chairman of the board annual retainers) received a 25% matching contribution from the Company in the form of director deferred stock units. There were 707,500 shares and 532,100 shares deferred, but not delivered, as of March 3, 2018 and February 25, 2017, respectively. During fiscal 2018, approximately 175,400 director deferred stock units were granted, no units were delivered and no units were cancelled. Compensation expense for the director deferred stock awards was $806,000, $834,000 and $800,000 in fiscal 2018, 2017 and 2016, respectively. Stock purchase plan — Substantially all Company associates and all non-employee directors are eligible to participate in the Pier 1 Imports, Inc. Stock Purchase Plan under which the Company's common stock is purchased on behalf of participants at market prices through regular payroll deductions. Each associate may contribute up to 20% of the eligible portions of compensation, and non-employee directors may contribute up to 100% of their director compensation. The Company contributes an amount equal to 25% of the participant’s contributions. Company contributions to the plan were $351,000, $363,000 and $424,000 in fiscal years 2018, 2017 and 2016, respectively. Preferred Stock — As of March 3, 2018, the Company’s restated certificate of incorporation authorized 20,000,000 shares of preferred stock having a par value of $1.00 per share to be issued. No such shares have been issued. Dividends — The Company paid cash dividends of $22,294,000, $22,501,000 and $23,672,000 in fiscal years 2018, 2017 and 2016, respectively. On April 18, 2018, subsequent to year end, the Company announced that the Board of Directors had determined to discontinue the Company’s common stock dividend. Shares reserved for future issuances — As of March 3, 2018, the Company had approximately 7,135,909 shares of common stock reserved for future issuances under the stock plans. This amount includes stock options outstanding, director deferred stock units and shares available for future grant. Share repurchase plan — The following table summarizes the Company’s total repurchases of its common stock under the $200 million board-approved share repurchase program announced on April 10, 2014 (“April 2014 program”), for each of the last three fiscal years: Shares Purchased Date Program Announced Authorized Amount Fiscal 2018 Fiscal 2017 Fiscal 2016 Weighted Average Cost Remaining Available as of March 3, 2018 Apr. 10, 2014 $ 200,000,000 1,926,602 1,794,053 7,460,935 $ 10.58 (1) $ 26,610,135 (1) Represents weighted average cost for all share repurchases under the April 2014 program. On April 18, 2018, subsequent to year end, the Company announced that the Board of Directors had determined to discontinue share repurchases at the present time under the April 2014 program. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 03, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 7 – INCOME TAXES The components of income before taxes for each of the last three fiscal years, by tax jurisdiction, were as follows (in thousands): 2018 2017 2016 Domestic $ 13,882 $ 39,818 $ 54,887 Foreign 4,015 5,441 8,278 Income before income taxes $ 17,897 $ 45,259 $ 63,165 The provision for income taxes for each of the last three fiscal years consisted of (in thousands): 2018 2017 2016 Federal: Current $ 549 $ 30,062 $ 14,600 Deferred 5,742 (17,842 ) 2,352 State: Current (701 ) 3,491 2,248 Deferred 270 (1,803 ) 2,265 Foreign: Current 411 1,222 2,066 Deferred — — — Total income tax provision $ 6,271 $ 15,130 $ 23,531 On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“Tax Act”) was signed into law. The Tax Act revised many aspects of the U.S. corporate income tax including, but not limited to, a corporate income tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017, a limitation on the deductibility of net interest expense and a 100% immediate deduction for certain new investments placed in service before 2023, and the modification or repealing of many business deductions and credits including the limitation on deductions for certain executive compensation arrangements under Section 162(m) of the Internal Revenue Code. SEC Staff Accounting Bulletin (“SAB”) 118 allows the Company to provide a provisional estimate of the impact of the Tax Act due to the complexities involved in accounting for its enactment. SAB 118 provides a measurement period that should not extend beyond one year from the enactment of the Tax Act to complete the accounting under ASC 740, Income Taxes Since the Company has a fiscal year rather than a calendar year, it is subject to a blended U.S. corporate income tax rate of 32.7% for fiscal year 2018. The Company made a provisional estimate of the remeasurement of its federal deferred tax assets and liabilities at the new lower U.S. corporate income tax rate and recorded a non-cash tax benefit of $323,000. The differences between income taxes at the statutory federal income tax rate of 32.7% in fiscal 2018, and 35% in fiscal 2017 and 2016, and income tax reported in the consolidated statements of operations were as follows (in thousands): 2018 2017 2016 Tax provision at statutory federal income tax rate $ 5,852 $ 15,841 $ 22,108 State income taxes, net of federal provision (benefit) 664 352 2,488 Change in valuation allowance 263 168 232 Foreign income taxes 411 1,222 2,066 Foreign and other tax credits (772 ) (2,161 ) (4,924 ) Non-deductible penalty 1,021 40 39 Provisional remeasurement of U.S. federal deferred tax assets and liabilities (323 ) — — Share-based compensation shortfall 436 — — Uncertain tax positions (1,482 ) 825 578 Other, net 201 (1,157 ) 944 Provision for income taxes $ 6,271 $ 15,130 $ 23,531 Effective tax rate 35.0 % 33.4 % 37.3 % In accordance with SAB 118, the Company has determined that the $323,000 deferred tax benefit recorded in connection with the remeasurement of certain deferred tax assets and liabilities is a provisional amount and a reasonable estimate at March 3, 2018. Any subsequent adjustment to this amount, if necessary, will be recorded in tax expense in fiscal 2019 when the analysis is complete. Deferred tax assets and liabilities at March 3, 2018 and February 25, 2017, were comprised of the following (in thousands): 2018 2017 Deferred tax assets: Deferred compensation $ 9,707 $ 23,692 Accrued average rent 9,764 14,130 Self insurance reserves 7,857 11,719 Cumulative foreign currency translation 1,588 3,316 Deferred revenue and revenue reserves 3,584 5,224 Foreign and other tax credits 1,822 2,655 Other 3,650 4,033 Total deferred tax assets $ 37,972 $ 64,769 Deferred tax liabilities: Properties and equipment, net $ (14,070 ) $ (24,084 ) Inventory (13,578 ) (18,613 ) Store supplies (2,393 ) (3,629 ) Deferred gain on debt repurchase (2,199 ) (7,342 ) Other (957 ) (1,082 ) Total deferred tax liabilities $ (33,197 ) $ (54,750 ) Valuation allowance $ (1,308 ) $ (822 ) Net deferred tax assets (1) $ 3,467 $ 9,197 (1) For fiscal 2018 and 2017, state deferred tax assets were $4,354 and $4,590, respectively, and federal deferred tax assets were $0 and $4,607, respectively. Deferred tax assets related to state net operating losses at March 3, 2018 and February 25, 2017, were $472,000 and $236,000, respectively. State loss carryforwards vary as to the carryforward period and will expire from fiscal 2020 through fiscal 2034. Deferred tax assets related to state tax credits at March 3, 2018 and February 25, 2017, were $1,822,000 and $1,512,000, respectively. State tax credit carryforwards vary as to the carryforward period and will expire from fiscal 2024 through fiscal 2038. The Company believes that it is not more likely than not that the benefit from certain state tax credits will be realized. Accordingly, the Company has provided a valuation allowance of $1,308,000 and $822,000 with respect to the deferred tax assets relating to these state tax credits as of March 3, 2018 and February 25, 2017, respectively. The Company is subject to taxation in the United States and various state, provincial, local and foreign (primarily Canadian) jurisdictions. With few exceptions, as of fiscal 2018, the Company is no longer subject to U.S. federal or state examinations by tax authorities for years before fiscal 2015. Certain tax years prior to fiscal 2015 are subject to examination by certain state and foreign jurisdictions. A reconciliation of the beginning and ending amount of unrecognized tax benefits for uncertain tax positions is as follows (in thousands): 2018 2017 2016 Unrecognized tax benefits — beginning balance $ 6,990 $ 2,551 $ 765 Gross increases — tax positions in current period 219 4,643 231 Gross increases — tax positions in prior period 47 225 1,862 Gross decreases — tax positions in prior period (2,065 ) (320 ) (60 ) Settlements — (83 ) (81 ) Expiration of statute of limitations (285 ) (26 ) (166 ) Unrecognized tax benefits — ending balance $ 4,906 $ 6,990 $ 2,551 As of March 3, 2018 and February 25, 2017, the Company had total unrecognized tax benefits of $4,906,000 and $6,990,000, respectively, the majority of which would, if recognized, affect the Company’s effective tax rate. It is reasonably possible a significant portion of the Company’s gross unrecognized tax benefits could decrease within the next twelve months primarily due to state income tax settlements. Interest associated with unrecognized tax benefits is recorded in nonoperating (income) and expenses. Penalties associated with unrecognized tax benefits are recorded in SG&A expenses. The Company recorded expenses for tax interest and penalties, net of refunds, of $118,000, $142,000 and $286,000 in fiscal 2018, 2017 and 2016, respectively. The Company had accrued penalties and interest of $602,000 and $379,000 at March 3, 2018 and February 25, 2017, respectively . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 03, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 8 – COMMITMENTS AND CONTINGENCIES Leases - At March 3, 2018, the Company had the following minimum lease commitments and future subtenant receipts in the years indicated (in thousands): Fiscal Year Operating Leases Subtenant Income 2019 $ 232,542 $ 1,309 2020 203,744 1,326 2021 172,689 1,380 2022 144,424 1,404 2023 111,379 1,028 Thereafter 212,342 1,975 Total lease commitments $ 1,077,120 $ 8,422 Rental expense, which includes distribution and fulfillment center space and corporate headquarters, was $261,889,000, $264,735,000 and $269,540,000 in fiscal 2018, 2017 and 2016, respectively. These amounts include contingent rentals of $238,000, $223,000 and $400,000, based upon a percentage of sales, and net of sublease incomes totaling $1,199,000, $646,000 and $322,000 in fiscal 2018, 2017 and 2016, respectively. Legal matters — Putative class action complaints were filed in the United States District Court for the Northern District of Texas – Dallas Division against Pier 1 Imports, Inc., Alexander W. Smith and Charles H. Turner in August and October 2015 alleging violations under the Securities Exchange Act of 1934, as amended. The lawsuits, which have been consolidated into a single action captioned Town of Davie Police Pension Plan, Plaintiff, v. Pier 1 Imports, Inc., Alexander W. Smith and Charles H. Turner, Defendants, were filed on behalf of a purported putative class of investors who purchased or otherwise acquired stock of Pier 1 Imports, Inc. between April 10, 2014 and December 17, 2015. The plaintiffs seek to recover damages purportedly caused by the Defendants' alleged violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint seeks certification as a class action, unspecified compensatory damages plus interest and attorneys' fees. On August 10, 2017, the court granted the Company’s motion to dismiss the complaint, while providing the plaintiffs an opportunity to replead their complaint. An amended complaint was filed with the court on September 25, 2017. On November 22, 2017, the Company filed a motion to dismiss the amended complaint. Although the ultimate outcome of litigation cannot be predicted with certainty, the Company believes that this lawsuit is without merit and intends to defend against it vigorously. The Company announced in January 2016 a voluntary recall of its Swingasan Chair and Stand in cooperation with the Consumer Product Safety Commission (“CPSC”). In September 2016, the Company received a staff investigatory letter from the CPSC indicating that the CPSC would investigate whether the Company complied with certain reporting requirements of the Consumer Product Safety Act with respect to the recall. The Company responded to the inquiry and cooperated with the CPSC. On September 20, 2017, the Company received a letter from the CPSC proposing to resolve certain alleged violations of the Consumer Product Safety Act relating to the Swingasan recall on terms which would require, among other things, the payment of a civil money penalty. On October 27, 2017, the Company submitted its response to the CPSC letter. The Company disagrees with a number of the allegations and legal conclusions asserted by the CPSC and believes the requested civil money penalty is excessive in view of the circumstances. Given the nature of this matter and the uncertainty as to how and when it will be resolved, the Company believes that a reasonable estimate of the potential range of loss in connection with this matter is $2,000,000 to $6,200,000. While we anticipate that the final settlement will fall within the estimated range of outcomes, the final terms of the resolution of this matter cannot be predicted with certainty and no assurances can be given as to the specific amount that the Company may be required to pay. The Company is a defendant in lawsuits pending in federal courts in California containing various class action allegations under California state wage-and-hour laws. These lawsuits seek unspecified monetary damages, injunctive relief and attorneys’ fees. The Company has sought to settle these cases on terms favorable to the Company in view of the claims made, the continuing cost of litigation and an assessment of the risk of an adverse trial court or appellate decision. The Company has settled or agreed to settle the pending cases, subject to completion of associated procedural requirements. The Company does not believe any reasonably foreseeable resolution of these matters will have a material adverse effect on the Company’s financial condition, results of operations or liquidity. The Company recognized expense of $6,600,000 in the second quarter of fiscal 2018 attributable to the legal and regulatory proceedings described in the two preceding paragraphs as a component of selling, general and administrative expenses. During fiscal years 2018, 2017, and 2016, there were various other claims, lawsuits, inquiries, investigations and pending actions against the Company incident to the operation of its business. The Company considers these other matters to be ordinary and routine in nature. The Company maintains insurance against the consolidated class action described in the first paragraph in this section Legal matters |
Selected Quarterly Financial Da
Selected Quarterly Financial Data | 12 Months Ended |
Mar. 03, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | NOTE 9 – SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) Summarized quarterly financial data for the years ended March 3, 2018 and February 25, 2017, are set forth below (in thousands except per share amounts): Quarter Ended Fiscal 2018 5/27/2017 8/26/2017 11/25/2017 3/3/2018 (1) Net sales $ 409,525 407,607 469,161 512,229 Gross profit $ 151,597 140,164 176,676 189,713 SG&A expenses $ 140,195 138,087 150,395 148,201 Operating income (loss) $ (2,321 ) (11,340 ) 13,448 27,882 Net income (loss) $ (2,986 ) (7,823 ) 7,381 15,054 Average shares outstanding — basic 81,080 80,350 79,658 79,835 Average shares outstanding — diluted 81,080 80,350 79,658 79,854 Basic earnings (loss) per share $ (0.04 ) (0.10 ) 0.09 0.19 Diluted earnings (loss) per share $ (0.04 ) (0.10 ) 0.09 0.19 Quarter Ended Fiscal 2017 5/28/2016 8/27/2016 11/26/2016 2/25/2017 Net sales $ 418,370 405,823 475,901 528,352 Gross profit $ 148,967 145,036 196,393 206,912 SG&A expenses $ 142,724 135,777 160,833 148,509 Operating income (loss) $ (7,808 ) (4,339 ) 22,253 44,756 Net income (loss) $ (6,020 ) (4,069 ) 13,577 26,641 Average shares outstanding — basic 81,663 80,437 80,680 80,898 Average shares outstanding — diluted 81,663 80,437 80,683 81,156 Basic earnings (loss) per share $ (0.07 ) (0.05 ) 0.17 0.33 Diluted earnings (loss) per share $ (0.07 ) (0.05 ) 0.17 0.33 (1) The quarter ended March 3, 2018 consisted of 14 weeks, compared to 13 weeks for the quarter ended February 25, 2017. |
Description of Business and S19
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 03, 2018 | |
Accounting Policies [Abstract] | |
Organization | Organization Pier 1 Imports, Inc. (together with its consolidated subsidiaries, the “Company”) is dedicated to offering customers exclusive, one-of-a-kind products that reflect high quality at a great value. Starting with a single store in 1962, Pier 1 Imports’ product is now available in retail stores throughout the U.S. and Canada and online at www.pier1.com. The Company directly imports merchandise from many countries, and sells a wide variety of decorative accessories, furniture, candles, housewares, gifts and seasonal products. Additionally, the Company has an arrangement to supply merchandise to be sold in “store within a store” locations in Mexico and El Salvador and online in Mexico that are operated by Sears Operadora de Mexico, S.A. de C.V. and Corporacion de Tiendas Internationales, S.A. de C.V., respectively. |
Basis of consolidation | Basis of consolidation — The consolidated financial statements of the Company include the accounts of all subsidiaries, and all intercompany transactions and balances have been eliminated upon consolidation. |
Segment information | Segment information — The Company is a specialty retailer that offers a broad range of products in its stores and on its website and conducts business as one operating segment. During fiscal 2018, 2017 and 2016, the Company’s domestic operations provided approximately 93% of its net sales, with approximately 6% provided by stores in Canada, and the remainder from royalties received primarily from Sears Operadora de Mexico S.A. de C.V. As of March 3, 2018, February 25, 2017 and February 27, 2016, $3,107,000, $3,244,000 and $3,837,000, respectively, of the Company’s long-lived assets, net of accumulated depreciation, were located in Canada. There were no long-lived assets in Mexico or El Salvador during any period. |
Use of estimates | Use of estimates — Preparation of the financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Fiscal periods | Fiscal periods — The Company utilizes 5-4-4 (week) quarterly accounting periods with the fiscal year ending on the Saturday closest to February 28th. Fiscal 2018 ended March 3, 2018, fiscal 2017 ended February 25, 2017, and fiscal 2016 ended February 27, 2016. Fiscal 2018 consisted of a 53-week year and both fiscal 2017 and 2016 were 52-week years. |
Cash and cash equivalents, including temporary investments | Cash and cash equivalents, including temporary investments — The Company considers all highly liquid investments with an original maturity date of three months or less to be cash equivalents, except for those investments that are restricted and have been set aside in trusts to satisfy retirement obligations and are classified as non-current assets. As of March 3, 2018 and February 25, 2017, the Company’s short-term investments classified as cash equivalents included investments primarily in mutual funds totaling $115,456,000 and $149,375,000, respectively. The effect of foreign currency exchange rate fluctuations on cash was not material. |
Translation of foreign currencies | Translation of foreign currencies — Assets and liabilities of foreign operations are translated into U.S. dollars at fiscal year-end exchange rates. Income and expense items are translated at average exchange rates prevailing during the year. Translation adjustments arising from differences in exchange rates from period to period are included as a separate component of shareholders' equity and are included in other comprehensive income (loss). As of March 3, 2018, February 25, 2017 and February 27, 2016, the Company had cumulative other comprehensive loss balances, net of tax, of $(8,054,000), $(8,450,000) and $(9,724,000), respectively, related to cumulative translation adjustments. The adjustments for currency translation during fiscal 2018, 2017 and 2016, resulted in other comprehensive income (loss), net of tax, as applicable, of $396,000, $1,274,000 and $(2,299,000), respectively. |
Concentrations of risk | Concentrations of risk — The Company has risk of geographic concentration with respect to sourcing the Company’s inventory purchases. However, the Company believes alternative merchandise sources could be procured over a reasonable period of time. Pier 1 Imports sells merchandise imported from many countries, with approximately 59% of its sales derived from merchandise produced in China, 17% derived from merchandise produced in India and 16% collectively derived from merchandise produced in Vietnam, Indonesia and the United States. The remaining sales were from merchandise produced in various other countries around the world. |
Financial instruments | Financial instruments — The fair value of financial instruments is determined by reference to various market data and other valuation techniques as appropriate. There were no assets or liabilities with a fair value significantly different from the recorded value as of March 3, 2018 or February 25, 2017, unless otherwise disclosed . Risk management instruments : The Company may utilize various financial instruments to manage interest rate and market risk associated with its on- and off-balance sheet commitments. |
Accounts receivable | Accounts receivable — The Company’s accounts receivable are stated at carrying value less an allowance for doubtful accounts. These receivables consist largely of third-party credit card receivables for which collection is reasonably assured. The remaining receivables are periodically evaluated for collectability, and an allowance for doubtful accounts is recorded as appropriate. |
Inventories | Inventories — The Company’s inventory is comprised of finished merchandise and is stated at the lower of weighted average cost and net realizable value. The calculation of cost includes merchandise purchases, the costs to bring the merchandise to distribution centers, warehousing and handling expenditures, and distributing and delivering merchandise to stores and fulfillment centers (direct and indirect). These costs include depreciation of long-lived assets utilized in acquiring, warehousing and distributing inventory. The Company recognizes known inventory losses, shortages and damages when incurred and maintains a reserve for estimated shrinkage since the last physical count, when actual shrinkage was recorded. The amount of the reserve is estimated based on historical experience from the results of its physical inventories. The reserves for estimated shrinkage at the end of fiscal 2018 and 2017 were $4,020,000 and $4,156,000, respectively. |
Properties and equipment, net | Properties and equipment, net — Buildings, equipment, furniture and fixtures, and leasehold improvements are carried at cost less accumulated depreciation. Depreciation is computed using the straight‑line method over estimated remaining useful lives of the assets, generally 30 years for buildings and three to ten years for equipment, furniture and fixtures, and three to five years for computer software. Depreciation of improvements to leased properties is based upon the shorter of the remaining primary lease term or the estimated useful lives of such assets. Depreciation for assets utilized in acquiring, warehousing, distributing and fulfilling inventory is included in cost of sales. All other depreciation costs are included in depreciation and were $53,603,000, $54,603,000 and $50,944,000 in fiscal 2018, 2017 and 2016, respectively. Expenditures for maintenance, repairs and renewals that do not materially prolong the original useful lives of the assets are charged to expense as incurred. In the case of disposals, assets and the related depreciation are removed from the accounts and the net amount, less proceeds from disposal, is credited or charged to income. Long-lived assets are reviewed for impairment at least annually or whenever an event or change in circumstances indicates that their carrying values may not be recoverable. If the impairment analysis indicates that the carrying value of the assets exceeds the sum of the expected undiscounted cash flows, the assets may be considered impaired. For store level long-lived assets, expected cash flows are determined based on management’s estimate of future sales, merchandise margin rates and expenses over the remaining expected terms of the leases. Impairment, if any, is recorded in the period in which the impairment occurred. The Company recorded no material impairment charges in fiscal 2018 or 2016. The Company recorded impairment charges of $2,934,000 in fiscal 2017, which were included in selling, general and administrative (“SG&A”) expenses. As the projection of future cash flows requires the use of judgment and estimates, if actual results differ from the Company’s estimates, additional charges for asset impairments may be recorded in the future. |
Insurance provision | Insurance provision — The Company maintains insurance for workers’ compensation and general liability claims with deductibles of $1,000,000 and $500,000 per occurrence, respectively. The liability recorded for such claims is determined by estimating the total future claims cost for events that occurred prior to the balance sheet date. The estimates consider historical claims loss development factors as well as information obtained from and projections made by the Company’s broker, actuary, insurance carriers and third party claims administrators. The recorded liabilities for workers’ compensation and general liability claims include claims occurring in prior years but not yet settled and reserves for fees. The recorded liability for workers’ compensation claims and fees was $25,316,000 and $25,632,000 at March 3, 2018 and February 25, 2017, respectively. The recorded liability for general liability claims and fees was $6,687,000 and $5,559,000 at March 3, 2018 and February 25, 2017, respectively. |
Revenue recognition | Revenue recognition — Revenue is recognized upon customer receipt or delivery for retail sales. A reserve has been established for estimated merchandise returns based upon historical experience and other known factors. The net reserves for estimated merchandise returns at the end of fiscal 2018 and 2017 were $2,805,000 and $3,068,000, respectively. The Company’s revenues are reported net of discounts and returns, net of sales tax, and include wholesale sales and royalties. Amounts charged to customers for shipping and handling are included in net sales. |
Cost of sales | Cost of sales — Cost of sales includes, from acquisition to store delivery, all cost of merchandise sold as well as store occupancy costs. The cost of merchandise sold includes product costs, freight and logistics charges, agent fees, duties, distribution and fulfillment expenses, shipping and packaging, inventory reserves for shrinkage and slow-moving inventory, and other costs necessary to bring the inventory to its final location. These costs include depreciation of long-lived assets utilized in acquiring, warehousing, fulfilling and distributing inventory. |
Gift cards | Gift cards — Revenue associated with gift cards is recognized when merchandise is sold and a gift card is redeemed as payment. Gift card breakage is estimated and recorded as income based upon an analysis of the Company’s historical data and expected trends in redemption patterns and represents the remaining non-escheatable unused portion of the gift card liability for which the likelihood of redemption is remote. If actual redemption patterns vary from the Company’s estimates or if laws or regulations change, actual gift card breakage may differ from the amounts recorded. For all periods presented, estimated gift card breakage was recognized 30 months after the original issuance and was $4,875,000, $4,825,000 and $4,925,000 in fiscal 2018, 2017 and 2016, respectively. |
Leases | Leases — The Company leases certain property consisting principally of retail stores, warehouses, its corporate headquarters and material handling and office equipment under operating leases expiring through fiscal 2030. Most retail store locations were leased for primary terms of ten years with varying renewal options and rent escalation clauses. Escalations occurring during the primary terms of the leases are included in the calculation of the future minimum lease payments, and the rent expense related to these leases is recognized on a straight-line basis over the lease term, including free rent periods prior to the opening of its locations. The portion of rent expense applicable to a location before opening is included in SG&A expenses. Once opened for business, rent expense is included in cost of sales. Certain leases provide for additional rental payments based on a percentage of sales in excess of a specified base. This additio nal rent is accrued when it appears probable that the sales will exceed the specified base. Construction allowances received from landlords are initially recorded as lease liabilities and amortized as a reduction of rental expense over the primary lease term. |
Advertising costs | Advertising costs — Advertising production costs are expensed the first time the advertising occurs and all other advertising costs are expensed as incurred. Advertising costs primarily include event and seasonal mailers, radio, newspaper, television and digital advertising and were $99,568,000, $101,780,000 and $88,405,000 in fiscal 2018, 2017 and 2016, respectively. Prepaid advertising at the end of fiscal years 2018 and 2017 was $3,012,000 and $3,216,000, respectively. |
Defined benefit plans | Defined benefit plans — The Company maintains supplemental retirement plans for certain of its former executive officers. These plans provide that upon death, disability, reaching retirement age or certain termination events, a participant will receive benefits based on highest compensation, years of service and years of plan participation. These benefit costs are dependent upon numerous factors, assumptions and estimates. Benefit costs may be significantly affected by changes in key actuarial assumptions used to determine the projected benefit obligation, such as discount rates. In accordance with accounting rules, changes in benefit obligations associated with these factors may not be immediately recognized as costs in the statement of operations, but recognized in future years over the average remaining lifetime of plan participants. See Note 5 of the Notes to Consolidated Financial Statements for further discussion . |
Income taxes | Income taxes — The Company accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are determined based on differences between financial reporting and income tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Tax Cuts and Jobs Act of 2017 (“Tax Act”), which was enacted on December 22, 2017, significantly changes U.S. corporate income tax laws by, among other things, reducing the U.S. federal corporate tax rate from 35% to 21%. Accordingly, the Company made a provisional remeasurement of its federal deferred tax assets and liabilities to reflect the lower federal tax rate in the fourth quarter of fiscal 2018. See Note 7 to the Consolidated Financial Statements - Income Taxes for additional information. Deferred tax assets and liabilities are recorded in the Company’s consolidated balance sheet and are classified as noncurrent. A valuation allowance is recorded to reduce the carrying amounts of deferred tax assets unless it is more likely than not that such assets will be realized. In assessing the need for a valuation allowance, all available evidence is considered including past operating results, estimates of future income and tax planning strategies. The Company is subject to income tax in many jurisdictions, including the United States, various states, provinces, localities and foreign countries, for which the Company records estimated reserves for unrecognized tax benefits for both domestic and foreign income tax issues. At any point in time, multiple tax years are subject to audit by these various jurisdictions. However, the timing of these audits and negotiations with taxing authorities may yield results different from those currently estimated. See Note 7 of the Notes to Consolidated Financial Statements for further discussion . |
Earnings per share | Earnings per share — Basic earnings per share amounts were determined by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share amounts were similarly computed, and have included the effect, if dilutive, of the Company's weighted average number of stock options outstanding and shares of unvested restricted stock. Earnings per share amounts were calculated as follows (in thousands except per share amounts): 2018 2017 2016 Net income $ 11,626 $ 30,129 $ 39,634 Weighted average shares outstanding: Basic 80,223 80,919 84,939 Effect of dilutive stock options 1 17 316 Effect of dilutive restricted stock 30 48 115 Diluted 80,254 80,984 85,370 Earnings per share: Basic $ 0.14 $ 0.37 $ 0.47 Diluted $ 0.14 $ 0.37 $ 0.46 Outstanding stock options totaling 361,523 for fiscal 2018, 900,933 for fiscal 2017 and 402,311 for fiscal 2016 were excluded from the computation of earnings per share, as the effect would be antidilutive. |
Stock-based compensation | Stock-based compensation — The Company’s stock-based compensation relates to stock options, restricted stock awards and director deferred stock units. Accounting guidance requires measurement and recognition of compensation expense at an amount equal to the grant date fair value. Compensation expense is recognized for any unvested stock option awards and restricted stock awards on a straight-line basis or ratably over the requisite service period. Stock option exercise prices equal the fair market value of the shares on the date of the grant. The fair value of stock options is calculated using a Black-Scholes option pricing model. For time-based and most performance-based restricted stock awards, compensation expense is measured and recorded using the closing price of the Company’s stock on the date of grant. If the date of grant for stock options or restricted stock awards occurs on a day when the Company’s stock is not traded, the closing price on the last trading day before the date of grant is used. A majority of the performance-based shares vest upon the Company satisfying certain performance targets. The Company records compensation expense for these awards with a performance condition when it is probable that the condition will be achieved. The compensation expense ultimately recognized, if any, related to these awards will equal the grant date fair value for the number of shares for which the performance condition has been satisfied. The remaining performance-based shares may vest if certain annual equivalent returns of total shareholder return targets are achieved in comparison to a peer group. The fair value for these performance-based shares was determined using a lattice valuation model in accordance with accounting guidelines. See Note 6 of the Notes to Consolidated Financial Statements for further discussion . Beginning in fiscal 2018, the Company recognizes forfeitures of awards as they occur. Prior to fiscal 2018, the Company estimated forfeitures based on its historical forfeiture experience and adjusted forfeiture estimates based on actual forfeitures. The effect of any forfeiture adjustments was not material for the periods presented. |
New accounting standards | New accounting standards — In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606).” In August 2015, the FASB issued ASU 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date.” ASU 2015-14 defers the effective date of revenue standard ASU 2014-09 by one year for all entities and permits early adoption on a limited basis. During fiscal 2017, additional ASUs were issued related to this revenue guidance. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations.” ASU 2016-08 is intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, “Identifying Performance Obligations and Licensing,” which clarifies the implementation guidance on identifying performance obligations. In December 2016, the FASB issued ASU 2016-20, “ Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers .” ASU 2016-20 allows entities not to make quantitative disclosures about remaining performance obligations in certain cases and requires entities that use any of the new or previously existing optional exemptions to expand their qualitative disclosures. ASU 2016-20 also makes additional technical corrections and improvements to the new revenue standard. The amendments have the same effective date and transition requirements as the revenue standard. The above ASUs are effective for the Company beginning in the first quarter of fiscal 2019. The adoption of this guidance will result in a change in the timing of revenue recognition for income related to gift card breakage; based on current redemption patterns, post-adoption recognition will begin in the month a gift card is issued, instead of when further redemptions are remote. The Company will adopt this standard in the first quarter of fiscal 2019 using the modified retrospective method. Under this method at adoption, the Company will record a cumulative adjustment to increase retained earnings and decrease gift cards and other deferred revenue by $9,444,000 ($7,021,000, net of tax) related to the change in gift card breakage income. In April 2015, the FASB issued ASU 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” “Technical Corrections and Improvements” In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” In March 2016, the FASB issued ASU 2016-09, “Compensation — Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” ASU 2016-09 requires entities to record excess tax benefits and deficiencies as income tax benefit or expense in the income statement. In addition, excess tax benefits are required to be presented as an operating activity in the Statement of Cash Flows. The Company adopted these provisions of ASU 2016-09 on a prospective basis in the first quarter of fiscal 2018. ASU 2016-09 also allows an entity to make an accounting policy election to either recognize forfeitures of share-based payment awards as they occur or estimate the number of awards expected to forfeit. The Company recognizes forfeitures of share-based payment awards as they occur and recorded a cumulative adjustment to retained earnings for this change. The adoption of ASU 2016-09 did not have a material impact on the Company’s financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230).” In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230) Restricted Cash.” In March 2017, the FASB issued ASU 2017-07, “Compensation Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” In May 2017, the FASB issued ASU 2017-09, “ Scope of Modification Accounting In February 2018, the FASB issued ASU 2018-02, “ Income Statement Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. |
Description of Business and S20
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 03, 2018 | |
Accounting Policies [Abstract] | |
Calculation of Earnings Per Share | Earnings per share amounts were calculated as follows (in thousands except per share amounts): 2018 2017 2016 Net income $ 11,626 $ 30,129 $ 39,634 Weighted average shares outstanding: Basic 80,223 80,919 84,939 Effect of dilutive stock options 1 17 316 Effect of dilutive restricted stock 30 48 115 Diluted 80,254 80,984 85,370 Earnings per share: Basic $ 0.14 $ 0.37 $ 0.47 Diluted $ 0.14 $ 0.37 $ 0.46 |
Properties and Equipment, Net (
Properties and Equipment, Net (Tables) | 12 Months Ended |
Mar. 03, 2018 | |
Property Plant And Equipment [Abstract] | |
Summary of Properties and Equipment, Net | Properties and equipment, net are summarized as follows at March 3, 2018 and February 25, 2017 (in thousands): 2018 2017 Land $ 535 $ 535 Buildings 8,077 8,077 Equipment, furniture, fixtures and other 367,171 344,893 Leasehold improvements 216,687 210,811 Computer software 137,815 123,855 Projects in progress 2,959 8,860 733,244 697,031 Less accumulated depreciation 554,477 505,555 Properties and equipment, net $ 178,767 $ 191,476 |
Other Accrued Liabilities and22
Other Accrued Liabilities and Noncurrent Liabilities (Tables) | 12 Months Ended |
Mar. 03, 2018 | |
Payables And Accruals [Abstract] | |
Summary of Other Accrued Liabilities and Noncurrent Liabilities | The following is a summary of other accrued liabilities and noncurrent liabilities at March 3, 2018 and February 25, 2017 (in thousands): 2018 2017 Accrued payroll and other employee-related liabilities $ 56,336 $ 82,028 Accrued taxes, other than income 24,414 27,818 Rent-related liabilities 8,755 8,655 Other 16,763 15,365 Other accrued liabilities $ 106,268 $ 133,866 Rent-related liabilities $ 33,993 $ 32,420 Deferred gains 2,516 3,522 Retirement benefits 18,512 21,301 Other 4,693 3,431 Other noncurrent liabilities $ 59,714 $ 60,674 |
Long-Term Debt and Available 23
Long-Term Debt and Available Credit (Tables) | 12 Months Ended |
Mar. 03, 2018 | |
Debt Disclosure [Abstract] | |
Term loan Facility Maturity | The Term Loan Facility matures as follows (in thousands): Fiscal Year Amount 2019 $ 2,000 2020 2,000 2021 2,000 2022 187,000 Total 193,000 Debt Issuance Costs (1,620 ) Debt Discount (885 ) Total Debt $ 190,495 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Mar. 03, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Reconciliation of Benefit Obligations and Funded Status of Plans | The following provides a reconciliation of benefit obligations and funded status of the plans as of March 3, 2018 and February 25, 2017 (in thousands): 2018 2017 Change in projected benefit obligation: Projected benefit obligation, beginning of year $ 7,671 $ 28,191 Service cost 289 917 Interest cost 285 696 Actuarial loss 584 705 Benefits paid (including settlements) (126 ) (24,355 ) Curtailment 81 1,517 Projected benefit obligation, end of year $ 8,784 $ 7,671 Reconciliation of funded status: Projected benefit obligation $ 8,784 $ 7,671 Plan assets — — Funded status $ (8,784 ) $ (7,671 ) Accumulated benefit obligation $ (8,784 ) $ (7,671 ) Amounts recognized in the balance sheets: Current liability $ (5,052 ) $ (127 ) Noncurrent liability (3,732 ) (7,544 ) Accumulated other comprehensive loss, pre-tax 584 559 Net amount recognized $ (8,200 ) $ (7,112 ) Cumulative other comprehensive income, net of taxes of $1,650 and $1,640 in fiscal 2018 and 2017, respectively $ (1,066 ) $ (1,081 ) Weighted average assumptions used to determine: Benefit obligation, end of year: Discount rate 3.50 % 3.75 % Lump-sum conversion discount rate 2.31 % 3.00 % Rate of compensation increase 0.00 % 3.00 % Net periodic benefit cost for years ended: Discount rate 3.75 % 2.75 % Lump-sum conversion discount rate 3.00 % 3.50 % Rate of compensation increase 0.00 % 0.00 % |
Components of Net Periodic Benefit Cost | Net periodic benefit cost included the following actuarially determined components during fiscal 2018, 2017 and 2016 as shown in the table below (in thousands). The amortization of amounts related to unrecognized prior service costs and net actuarial loss were reclassified out of other comprehensive income as a component of net periodic benefit cost. 2018 2017 2016 Service cost $ 289 $ 917 $ 1,468 Interest cost 285 696 634 Amortization of unrecognized prior service cost 30 45 59 Amortization of net actuarial loss 529 1,902 1,394 Settlement — 1,868 — Curtailment 81 1,562 — Net periodic benefit cost $ 1,214 $ 6,990 $ 3,555 |
Matters Concerning Shareholde25
Matters Concerning Shareholders' Equity (Tables) | 12 Months Ended |
Mar. 03, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Grants | A summary of stock option transactions related to the Company’s stock option grants during the three fiscal years is as follows : Weighted Exercisable Shares Weighted Average Weighted Average Fair Value Average Exercise at Date of Number Exercise Shares Price Grant of Shares Price Outstanding at February 28, 2015 1,448,548 $ 8.09 1,419,712 $ 7.86 Options granted 15,500 14.04 $ 3.98 Options exercised (77,500 ) 7.46 Options cancelled or expired (176,000 ) 14.06 Outstanding at February 27, 2016 1,210,548 7.34 1,176,974 7.06 Options granted 23,000 6.99 2.85 Options exercised (966,500 ) 6.71 Options cancelled or expired (142,248 ) 10.57 Outstanding at February 25, 2017 124,800 8.50 107,800 8.22 Options granted 320,469 6.68 3.21 Options exercised — — Options cancelled or expired (40,000 ) 7.77 Outstanding at March 3, 2018 405,269 7.13 73,250 8.76 |
Shares Outstanding by Ranges of Exercise Prices | For options outstanding at March 3, 2018: Weighted Average Weighted Weighted Remaining Average Average Contractual Shares Exercise Price- Total Exercise Life (in Currently Exercisable Ranges of Exercise Prices Shares Price years) Exercisable Shares $4.24 — $6.59 19,500 $ 5.38 4.72 10,000 $ 4.24 $6.68 — $11.47 371,569 6.83 7.95 52,725 7.68 $14.04 — $23.19 14,200 17.43 5.94 10,525 18.43 |
Share Repurchase Plan | Share repurchase plan — The following table summarizes the Company’s total repurchases of its common stock under the $200 million board-approved share repurchase program announced on April 10, 2014 (“April 2014 program”), for each of the last three fiscal years: Shares Purchased Date Program Announced Authorized Amount Fiscal 2018 Fiscal 2017 Fiscal 2016 Weighted Average Cost Remaining Available as of March 3, 2018 Apr. 10, 2014 $ 200,000,000 1,926,602 1,794,053 7,460,935 $ 10.58 (1) $ 26,610,135 (1) Represents weighted average cost for all share repurchases under the April 2014 program. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 03, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income Before Taxes | The components of income before taxes for each of the last three fiscal years, by tax jurisdiction, were as follows (in thousands): 2018 2017 2016 Domestic $ 13,882 $ 39,818 $ 54,887 Foreign 4,015 5,441 8,278 Income before income taxes $ 17,897 $ 45,259 $ 63,165 |
Provision for Income Taxes | The provision for income taxes for each of the last three fiscal years consisted of (in thousands): 2018 2017 2016 Federal: Current $ 549 $ 30,062 $ 14,600 Deferred 5,742 (17,842 ) 2,352 State: Current (701 ) 3,491 2,248 Deferred 270 (1,803 ) 2,265 Foreign: Current 411 1,222 2,066 Deferred — — — Total income tax provision $ 6,271 $ 15,130 $ 23,531 |
Income Tax Reported in Consolidated Statements of Operations | The differences between income taxes at the statutory federal income tax rate of 32.7% in fiscal 2018, and 35% in fiscal 2017 and 2016, and income tax reported in the consolidated statements of operations were as follows (in thousands): 2018 2017 2016 Tax provision at statutory federal income tax rate $ 5,852 $ 15,841 $ 22,108 State income taxes, net of federal provision (benefit) 664 352 2,488 Change in valuation allowance 263 168 232 Foreign income taxes 411 1,222 2,066 Foreign and other tax credits (772 ) (2,161 ) (4,924 ) Non-deductible penalty 1,021 40 39 Provisional remeasurement of U.S. federal deferred tax assets and liabilities (323 ) — — Share-based compensation shortfall 436 — — Uncertain tax positions (1,482 ) 825 578 Other, net 201 (1,157 ) 944 Provision for income taxes $ 6,271 $ 15,130 $ 23,531 Effective tax rate 35.0 % 33.4 % 37.3 % |
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities at March 3, 2018 and February 25, 2017, were comprised of the following (in thousands): 2018 2017 Deferred tax assets: Deferred compensation $ 9,707 $ 23,692 Accrued average rent 9,764 14,130 Self insurance reserves 7,857 11,719 Cumulative foreign currency translation 1,588 3,316 Deferred revenue and revenue reserves 3,584 5,224 Foreign and other tax credits 1,822 2,655 Other 3,650 4,033 Total deferred tax assets $ 37,972 $ 64,769 Deferred tax liabilities: Properties and equipment, net $ (14,070 ) $ (24,084 ) Inventory (13,578 ) (18,613 ) Store supplies (2,393 ) (3,629 ) Deferred gain on debt repurchase (2,199 ) (7,342 ) Other (957 ) (1,082 ) Total deferred tax liabilities $ (33,197 ) $ (54,750 ) Valuation allowance $ (1,308 ) $ (822 ) Net deferred tax assets (1) $ 3,467 $ 9,197 (1) For fiscal 2018 and 2017, state deferred tax assets were $4,354 and $4,590, respectively, and federal deferred tax assets were $0 and $4,607, respectively. |
Reconciliation of Unrecognized Tax Benefits for Uncertain Tax Positions | A reconciliation of the beginning and ending amount of unrecognized tax benefits for uncertain tax positions is as follows (in thousands): 2018 2017 2016 Unrecognized tax benefits — beginning balance $ 6,990 $ 2,551 $ 765 Gross increases — tax positions in current period 219 4,643 231 Gross increases — tax positions in prior period 47 225 1,862 Gross decreases — tax positions in prior period (2,065 ) (320 ) (60 ) Settlements — (83 ) (81 ) Expiration of statute of limitations (285 ) (26 ) (166 ) Unrecognized tax benefits — ending balance $ 4,906 $ 6,990 $ 2,551 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Mar. 03, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Minimum Lease Commitments and Future Subtenant Receipts | At March 3, 2018, the Company had the following minimum lease commitments and future subtenant receipts in the years indicated (in thousands): Fiscal Year Operating Leases Subtenant Income 2019 $ 232,542 $ 1,309 2020 203,744 1,326 2021 172,689 1,380 2022 144,424 1,404 2023 111,379 1,028 Thereafter 212,342 1,975 Total lease commitments $ 1,077,120 $ 8,422 |
Selected Quarterly Financial 28
Selected Quarterly Financial Data (Tables) | 12 Months Ended |
Mar. 03, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | Summarized quarterly financial data for the years ended March 3, 2018 and February 25, 2017, are set forth below (in thousands except per share amounts): Quarter Ended Fiscal 2018 5/27/2017 8/26/2017 11/25/2017 3/3/2018 (1) Net sales $ 409,525 407,607 469,161 512,229 Gross profit $ 151,597 140,164 176,676 189,713 SG&A expenses $ 140,195 138,087 150,395 148,201 Operating income (loss) $ (2,321 ) (11,340 ) 13,448 27,882 Net income (loss) $ (2,986 ) (7,823 ) 7,381 15,054 Average shares outstanding — basic 81,080 80,350 79,658 79,835 Average shares outstanding — diluted 81,080 80,350 79,658 79,854 Basic earnings (loss) per share $ (0.04 ) (0.10 ) 0.09 0.19 Diluted earnings (loss) per share $ (0.04 ) (0.10 ) 0.09 0.19 Quarter Ended Fiscal 2017 5/28/2016 8/27/2016 11/26/2016 2/25/2017 Net sales $ 418,370 405,823 475,901 528,352 Gross profit $ 148,967 145,036 196,393 206,912 SG&A expenses $ 142,724 135,777 160,833 148,509 Operating income (loss) $ (7,808 ) (4,339 ) 22,253 44,756 Net income (loss) $ (6,020 ) (4,069 ) 13,577 26,641 Average shares outstanding — basic 81,663 80,437 80,680 80,898 Average shares outstanding — diluted 81,663 80,437 80,683 81,156 Basic earnings (loss) per share $ (0.07 ) (0.05 ) 0.17 0.33 Diluted earnings (loss) per share $ (0.07 ) (0.05 ) 0.17 0.33 (1) The quarter ended March 3, 2018 consisted of 14 weeks, compared to 13 weeks for the quarter ended February 25, 2017. |
Description of Business and S29
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) | 2 Months Ended | 3 Months Ended | 10 Months Ended | 12 Months Ended | ||
Mar. 03, 2018USD ($) | Jun. 02, 2018USD ($) | Dec. 31, 2017 | Mar. 03, 2018USD ($)Segmentshares | Feb. 25, 2017USD ($)shares | Feb. 27, 2016USD ($)shares | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of operating segment | Segment | 1 | |||||
Cash and cash equivalents, temporary investments | $ 115,456,000 | $ 115,456,000 | $ 149,375,000 | |||
Cumulative other comprehensive income (loss) related to translation adjustments | (8,054,000) | (8,054,000) | (8,450,000) | $ (9,724,000) | ||
Adjustments for currency translation resulted in other comprehensive income (loss), net of tax | 396,000 | 1,274,000 | (2,299,000) | |||
Assets or liabilities with a fair value significantly different from the recorded value | 0 | 0 | 0 | |||
Reserves for estimated shrinkage of inventory | 4,020,000 | 4,020,000 | 4,156,000 | |||
Depreciation | 53,603,000 | 54,603,000 | 50,944,000 | |||
Impairment charges | 0 | 2,934,000 | 0 | |||
Workers compensation deductibles | 1,000,000 | 1,000,000 | ||||
General liability claims deductibles | 500,000 | 500,000 | ||||
Workers compensation liability | 25,316,000 | 25,316,000 | 25,632,000 | |||
General liability insurance claims not settled | 6,687,000 | 6,687,000 | 5,559,000 | |||
Reserves for estimated merchandise returns | $ 2,805,000 | 3,068,000 | ||||
Gift card breakage recognition period from original issuance, months | 30 months | |||||
Gift card breakage recognized | $ 4,875,000 | 4,825,000 | 4,925,000 | |||
Operating lease expiring year | 2,030 | |||||
Lease term | 10 years | |||||
Advertising costs | $ 99,568,000 | 101,780,000 | $ 88,405,000 | |||
Prepaid advertising | $ 3,012,000 | $ 3,012,000 | $ 3,216,000 | |||
U.S. federal corporate tax rate | 21.00% | 35.00% | 32.70% | 35.00% | 35.00% | |
Outstanding stock options excluded from computation of diluted earnings per share | shares | 361,523 | 900,933 | 402,311 | |||
ASU 2014-09 | Scenario Forecast | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Cumulative effect on retained earnings and decrease gift cards and other deferred revenue before tax | $ 9,444,000 | |||||
Cumulative effect on retained earnings and decrease gift cards and other deferred revenue net of tax | $ 7,021,000 | |||||
Buildings | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated remaining useful lives of the assets | 30 years | |||||
Furniture, Fixtures and Equipment | Minimum | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated remaining useful lives of the assets | 3 years | |||||
Furniture, Fixtures and Equipment | Maximum | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated remaining useful lives of the assets | 10 years | |||||
Computer Software [Member] | Minimum | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated remaining useful lives of the assets | 3 years | |||||
Computer Software [Member] | Maximum | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated remaining useful lives of the assets | 5 years | |||||
CANADA | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Long-lived assets | $ 3,107,000 | $ 3,107,000 | $ 3,244,000 | $ 3,837,000 | ||
MEXICO | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Long-lived assets | 0 | 0 | 0 | 0 | ||
EL SALVADOR | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Long-lived assets | $ 0 | $ 0 | $ 0 | $ 0 | ||
Sales Revenue, Net | Product Concentration Risk | UNITED STATES | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 93.00% | 93.00% | 93.00% | |||
Sales Revenue, Net | Product Concentration Risk | CANADA | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 6.00% | 6.00% | 6.00% | |||
Sales Revenue, Product Line [Member] | Geographic Concentration Risk | CHINA | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 59.00% | |||||
Sales Revenue, Product Line [Member] | Geographic Concentration Risk | INDIA | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 17.00% | |||||
Sales Revenue, Product Line [Member] | Geographic Concentration Risk | Vietnam Indonesia And United States | ||||||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 16.00% |
Calculation of Earnings Per Sha
Calculation of Earnings Per Share Amounts (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 03, 2018 | [1] | Nov. 25, 2017 | Aug. 26, 2017 | May 27, 2017 | Feb. 25, 2017 | Nov. 26, 2016 | Aug. 27, 2016 | May 28, 2016 | Mar. 03, 2018 | Feb. 25, 2017 | Feb. 27, 2016 | |
Earnings Per Share Disclosure [Line Items] | ||||||||||||
Net income | $ 15,054 | $ 7,381 | $ (7,823) | $ (2,986) | $ 26,641 | $ 13,577 | $ (4,069) | $ (6,020) | $ 11,626 | $ 30,129 | $ 39,634 | |
Basic | 79,835 | 79,658 | 80,350 | 81,080 | 80,898 | 80,680 | 80,437 | 81,663 | 80,223 | 80,919 | 84,939 | |
Diluted | 79,854 | 79,658 | 80,350 | 81,080 | 81,156 | 80,683 | 80,437 | 81,663 | 80,254 | 80,984 | 85,370 | |
Basic | $ 0.19 | $ 0.09 | $ (0.10) | $ (0.04) | $ 0.33 | $ 0.17 | $ (0.05) | $ (0.07) | $ 0.14 | $ 0.37 | $ 0.47 | |
Diluted | $ 0.19 | $ 0.09 | $ (0.10) | $ (0.04) | $ 0.33 | $ 0.17 | $ (0.05) | $ (0.07) | $ 0.14 | $ 0.37 | $ 0.46 | |
Employee Stock Option | ||||||||||||
Earnings Per Share Disclosure [Line Items] | ||||||||||||
Effect of dilutive stock | 1 | 17 | 316 | |||||||||
Restricted Stock Awards | ||||||||||||
Earnings Per Share Disclosure [Line Items] | ||||||||||||
Effect of dilutive stock | 30 | 48 | 115 | |||||||||
[1] | The quarter ended March 3, 2018 consisted of 14 weeks, compared to 13 weeks for the quarter ended February 25, 2017 |
Summary of Properties and Equip
Summary of Properties and Equipment, Net (Detail) - USD ($) $ in Thousands | Mar. 03, 2018 | Feb. 25, 2017 |
Property Plant And Equipment [Abstract] | ||
Land | $ 535 | $ 535 |
Buildings | 8,077 | 8,077 |
Equipment, furniture, fixtures and other | 367,171 | 344,893 |
Leasehold improvements | 216,687 | 210,811 |
Computer software | 137,815 | 123,855 |
Projects in progress | 2,959 | 8,860 |
Properties, gross | 733,244 | 697,031 |
Less accumulated depreciation | 554,477 | 505,555 |
Properties and equipment, net | $ 178,767 | $ 191,476 |
Summary of Other Accrued Liabil
Summary of Other Accrued Liabilities and Noncurrent Liabilities (Detail) - USD ($) $ in Thousands | Mar. 03, 2018 | Feb. 25, 2017 |
Accrued Liabilities And Other Liabilities [Abstract] | ||
Accrued payroll and other employee-related liabilities | $ 56,336 | $ 82,028 |
Accrued taxes, other than income | 24,414 | 27,818 |
Rent-related liabilities | 8,755 | 8,655 |
Other | 16,763 | 15,365 |
Other accrued liabilities | 106,268 | 133,866 |
Rent-related liabilities | 33,993 | 32,420 |
Deferred gains | 2,516 | 3,522 |
Retirement benefits | 18,512 | 21,301 |
Other | 4,693 | 3,431 |
Other noncurrent liabilities | $ 59,714 | $ 60,674 |
Long-Term Debt and Available 33
Long-Term Debt and Available Credit - Additional Information (Detail) - USD ($) | Jun. 02, 2017 | May 27, 2017 | Mar. 03, 2018 | Feb. 25, 2017 | Feb. 27, 2016 |
Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Carrying value of long term debt | $ 190,495,000 | ||||
Weighted average effective interest rate | 5.50% | ||||
Term loan facility, maturity date | Apr. 30, 2021 | ||||
Borrowings under term loan facility | $ 193,000,000 | ||||
Term loan facility, quarterly amortization of principal amount of loans | 0.25% | ||||
Term loan incremental maximum borrowing capacity | $ 200,000,000 | ||||
Fair Value, Inputs, Level 2 | Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Fair value of term loan facility | $ 183,833,000 | ||||
LIBOR | Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Basis points | 3.50% | ||||
LIBOR | Minimum | Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Interest floor rate | 1.00% | ||||
Base Rate | Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Basis points | 2.50% | ||||
Base Rate | Minimum | Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Interest floor rate | 2.00% | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility , maximum borrowing capacity | $ 350,000,000 | $ 350,000,000 | |||
Credit facility accordion feature | $ 150,000,000 | $ 100,000,000 | $ 100,000,000 | ||
Potential increase to credit facility | $ 500,000,000 | ||||
Extended maturity date of revolving credit facility | Jun. 2, 2022 | ||||
Unused portion of credit facility, basis point | 0.25% | ||||
Percentage of minimum availability on line cap | 10.00% | ||||
Minimum availability on line cap, amount | $ 20,000,000 | ||||
Payments of dividends less than 15.0% | 350,000,000 | ||||
Fixed charge coverage less than 20.0% | 350,000,000 | ||||
Credit facility borrowing base | 294,416,000 | ||||
Remaining borrowing | $ 252,935,000 | ||||
Revolving Credit Facility | LIBOR | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis points | 1.25% | ||||
Revolving Credit Facility | LIBOR | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis points | 1.50% | ||||
Revolving Credit Facility | Prime Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis points | 0.25% | ||||
Revolving Credit Facility | Prime Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis points | 0.50% | ||||
Standby letters of credit | |||||
Debt Instrument [Line Items] | |||||
Commitment fee | 1.25% | 1.25% | |||
Standby letters of credit | Workers' Compensation And General Liability Insurance Policies | |||||
Debt Instrument [Line Items] | |||||
Borrowings outstanding | $ 23,966,000 | ||||
Standby letters of credit | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis points | 1.25% | ||||
Standby letters of credit | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis points | 1.50% | ||||
Trade letter of credit | |||||
Debt Instrument [Line Items] | |||||
Commitment fee | 0.625% | 0.625% | |||
Trade letter of credit | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis points | 0.625% | ||||
Trade letter of credit | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis points | 0.75% | ||||
Trade Letters Of Credit And Bankers Acceptances | |||||
Debt Instrument [Line Items] | |||||
Borrowings outstanding | $ 41,481,000 | ||||
Other Miscellaneous Standby Letters Of Credit | |||||
Debt Instrument [Line Items] | |||||
Borrowings outstanding | $ 7,800,000 | ||||
Industrial Revenue Bonds | |||||
Debt Instrument [Line Items] | |||||
Industrial revenue bonds, maturity date | 2,026 | ||||
Carrying value of long term debt | $ 9,500,000 | $ 9,500,000 | |||
Weighted average effective interest rate | 2.80% | 2.20% | 1.70% | ||
Industrial Revenue Bonds | Standby letters of credit | |||||
Debt Instrument [Line Items] | |||||
Borrowings outstanding | $ 9,715,000 |
Term Loan Facility Maturity (De
Term Loan Facility Maturity (Detail) - Term Loan Facility | Mar. 03, 2018USD ($) |
Debt Instrument [Line Items] | |
2,019 | $ 2,000,000 |
2,020 | 2,000,000 |
2,021 | 2,000,000 |
2,022 | 187,000,000 |
Total | 193,000,000 |
Debt Issuance Costs | (1,620,000) |
Debt Discount | (885,000) |
Total Debt | $ 190,495,000 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 02, 2018 | Mar. 03, 2018 | Feb. 25, 2017 | Feb. 27, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Minimum age eligibility, years | 18 years | |||
Minimum employment period for eligibility, days | 60 days | |||
Contributions by Company to the plan | $ 3,164 | $ 2,958 | $ 2,823 | |
Employees contribution for eligible match | 5.00% | 5.00% | 5.00% | |
Company matching contribution | 3.00% | 3.00% | 3.00% | |
Interest bearing investments included in other noncurrent assets | $ 98 | $ 97 | ||
Company's expense for the plans | 1,214 | 6,990 | $ 3,555 | |
Curtailment charge related to revised defined benefit plan | 81 | 1,562 | ||
Defined benefit plan settlement expense | 1,868 | |||
Lump sum retirement benefit payable | 4,900 | |||
Benefit payments expected in fiscal 2019 | 5,052 | |||
Benefit payments expected in fiscal 2020 | 172 | |||
Benefit payments expected in fiscal 2021 | 247 | |||
Benefit payments expected in fiscal 2022 | 246 | |||
Benefit payments expected in fiscal 2023 | 245 | |||
Benefit payments expected during fiscal years 2024 through 2028 | 1,200 | |||
Lump sum retirement benefit paid | 126 | 24,355 | ||
Amounts of cumulative other comprehensive loss not recognized as components of net periodic benefit cost related to prior service cost | 0 | 30 | ||
Amounts of cumulative other comprehensive loss not recognized as components of net periodic benefit cost related to net actuarial gain | 584 | 529 | ||
Net actuarial loss recognized in other comprehensive income (loss) | (584) | (705) | (812) | |
Estimated amortization of net actuarial loss from cumulative other comprehensive loss into net periodic cost in 2019 | 13 | |||
Scenario Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan settlement expense | $ 326 | |||
Former Chief Executive Officer | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Cash contributions to trust | 23,653 | 1,000 | ||
Amount used to fund tax obligations for retirements benefits | 935 | |||
Amount used to fund obligations for retirements benefits | 23,653 | |||
Lump sum retirement benefit paid | 24,228 | |||
Former Chief Executive Officer | Other accrued liabilities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Lump sum retirement benefit payable | 24,228 | |||
Life insurance policies | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Cash surrender value of life insurance policy | 14,077 | 13,739 | ||
Death benefit of life insurance policy | 20,388 | 20,246 | ||
Nonqualified deferred compensation plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Company's expense for the plans | 1,915 | 2,347 | 13 | |
Cash contributions to trust | 2,429 | 1,375 | ||
Restricted investments sold to fund retirement benefits | 3,909 | 2,474 | ||
Interest bearing investments included in other noncurrent assets | 9,825 | 10,236 | ||
Cash surrender values of life insurance policies | 6,209 | 6,060 | ||
Nonqualified deferred compensation plans | Death benefit plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Death benefits of life insurance policy | 11,392 | 11,373 | ||
Supplemental Employee Retirement Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Company's expense for the plans | $ 1,214 | 6,990 | $ 3,555 | |
Curtailment charge related to revised defined benefit plan | 1,562 | |||
Supplemental Employee Retirement Plans, Defined Benefit | Former Chief Executive Officer | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan settlement expense | $ 1,868 |
Reconciliation of Benefit Oblig
Reconciliation of Benefit Obligations and Funded Status of Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 03, 2018 | Feb. 25, 2017 | Feb. 27, 2016 | |
Change in projected benefit obligation: | |||
Projected benefit obligation, beginning of year | $ 7,671 | $ 28,191 | |
Service cost | 289 | 917 | $ 1,468 |
Interest cost | 285 | 696 | 634 |
Actuarial loss | 584 | 705 | |
Benefits paid (including settlements) | (126) | (24,355) | |
Curtailment | 81 | 1,517 | |
Projected benefit obligation, end of year | 8,784 | 7,671 | 28,191 |
Reconciliation of funded status: | |||
Projected benefit obligation, end of year | 8,784 | 7,671 | $ 28,191 |
Plan assets | 0 | 0 | |
Funded status | (8,784) | (7,671) | |
Accumulated benefit obligation | (8,784) | (7,671) | |
Amounts recognized in the balance sheets: | |||
Current liability | (5,052) | (127) | |
Noncurrent liability | (3,732) | (7,544) | |
Accumulated other comprehensive loss, pre-tax | 584 | 559 | |
Net amount recognized | (8,200) | (7,112) | |
Cumulative other comprehensive income, net of taxes of $1,650 and $1,640 in fiscal 2018 and 2017, respectively | $ (1,066) | $ (1,081) | |
Benefit obligation, end of year: | |||
Discount rate | 3.50% | 3.75% | |
Lump-sum conversion discount rate | 2.31% | 3.00% | |
Rate of compensation increase | 0.00% | 3.00% | |
Net periodic benefit cost for years ended: | |||
Discount rate | 3.75% | 2.75% | |
Lump-sum conversion discount rate | 3.00% | 3.50% | |
Rate of compensation increase | 0.00% | 0.00% |
Reconciliation of Benefit Obl37
Reconciliation of Benefit Obligations and Funded Status of Plans (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Mar. 03, 2018 | Feb. 25, 2017 | |
Compensation And Retirement Disclosure [Abstract] | ||
Cumulative other comprehensive income, taxes | $ 1,650 | $ 1,640 |
Components of Net Periodic Bene
Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 03, 2018 | Feb. 25, 2017 | Feb. 27, 2016 | |
Defined Benefit Plan Net Periodic Benefit Cost [Abstract] | |||
Service cost | $ 289 | $ 917 | $ 1,468 |
Interest cost | 285 | 696 | 634 |
Amortization of unrecognized prior service cost | 30 | 45 | 59 |
Amortization of net actuarial loss | 529 | 1,902 | 1,394 |
Settlement | 1,868 | ||
Curtailment | 81 | 1,562 | |
Net periodic benefit cost | $ 1,214 | $ 6,990 | $ 3,555 |
Matters Concerning Shareholde39
Matters Concerning Shareholders' Equity - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||||
May 27, 2017USD ($)Award_plan$ / shares | Mar. 03, 2018USD ($)$ / sharesshares | Feb. 25, 2017USD ($)$ / sharesshares | Feb. 27, 2016USD ($)$ / shares | Jun. 22, 2017shares | Jun. 25, 2015shares | Mar. 23, 2006shares | |
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Prior period authorized aggregate number of shares available for issuance | shares | 7,135,909 | ||||||
Exercise price of stock options granted | $ / shares | $ 6.68 | $ 6.99 | $ 14.04 | ||||
Number of restricted stock grants | Award_plan | 2 | ||||||
Realized tax benefit related to stock-based compensation | $ 736,000 | $ 1,783,000 | $ 1,270,000 | ||||
Excess tax benefit related to stock-based compensation | $ 0 | 312,000 | 585,000 | ||||
Percentage of non-employee directors contribution to stock purchase plan | 100.00% | ||||||
Percentage of company contributes to stock purchase plan | 25.00% | ||||||
Company contributions to the plan | $ 351,000 | 363,000 | 424,000 | ||||
Preferred stock, restated certificate of incorporation authorized | shares | 20,000,000 | ||||||
Par value of preferred stock | $ / shares | $ 1 | ||||||
Preferred stock issued, shares | shares | 0 | ||||||
Cash dividends paid | $ 22,294,000 | 22,501,000 | 23,672,000 | ||||
Share Repurchase Program April 2014 | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Share repurchase program authorized amount | $ 200,000,000 | ||||||
Restricted Stock Two | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Restricted stock grant value | $ 2,000,000 | ||||||
Time-Based Restricted Shares | Restricted Stock One | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Vesting period, years | 3 years | ||||||
Restricted stock grant value | $ 500,000 | ||||||
Time-Based Restricted Shares | Restricted Stock Two | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Percentage of restricted stock grants | 25.00% | ||||||
Percentage of award vested in year one | 33.00% | ||||||
Percentage of award vested in year two | 33.00% | ||||||
Percentage of award vested in year three | 34.00% | ||||||
Performance Shares | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Percentage of increase or decrease on total shareholder return | 10.00% | ||||||
Performance Shares | Restricted Stock Two | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Percentage of restricted stock grants | 75.00% | ||||||
Time-Based Long-Term Incentive Awards | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Vesting period, years | 3 years | ||||||
Percentage of award vested in year one | 33.00% | ||||||
Percentage of award vested in year two | 33.00% | ||||||
Percentage of award vested in year three | 34.00% | ||||||
Restricted Stock Awards | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Recorded stock-based compensation expense | $ 3,612,000 | 8,180,000 | 4,978,000 | ||||
Total unrecognized compensation expense related to unvested stock option awards | $ 23,989,000 | ||||||
Weighted average period for recognizing unrecognized compensation expense, in years | 1 year 6 months | ||||||
Total fair value of awards vested | $ 2,112,000 | $ 3,671,000 | 2,510,000 | ||||
Unvested shares of restricted stock awards outstanding | shares | 4,049,614 | 2,710,011 | |||||
Shares awarded | shares | 2,973,896 | ||||||
Awards other than options vested in period | shares | 310,312 | ||||||
Awards other than options forfeited in period | shares | 1,323,981 | ||||||
Weighted average grant date fair value | $ / shares | $ 6.27 | ||||||
Employee Stock Option | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Recorded stock-based compensation expense | $ 197,000 | $ 48,000 | 87,000 | ||||
Total unrecognized compensation expense related to unvested stock option awards | $ 863,000 | ||||||
Weighted average period for recognizing unrecognized compensation expense, in years | 4 years 1 month 6 days | ||||||
Weighted average remaining contractual term for outstanding options, in years | 7 years 8 months 12 days | ||||||
Weighted average remaining contractual term for exercisable options, in years | 1 year 4 months 24 days | ||||||
Aggregate intrinsic value for outstanding options | $ 0 | ||||||
Aggregate intrinsic value for exercisable options | 0 | ||||||
Total intrinsic value of options exercised | $ 0 | $ 1,137,000 | 430,000 | ||||
Director Deferred Stock Units | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Shares awarded | shares | 175,400 | ||||||
Percentage of matching contribution to annual retainer fees deferred | 25.00% | ||||||
Deferred compensation arrangement shares deferred, but not delivered | shares | 707,500 | 532,100 | |||||
Stock units delivered | shares | 0 | ||||||
Compensation expense for director deferred stock awards | $ 806,000 | $ 834,000 | $ 800,000 | ||||
President And Chief Executive Officer | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Value of stock options on grant date | $ 1,000,000 | ||||||
Stock options valued on grant date, pricing model | Black-Scholes modeling | ||||||
Stock options valued on grant date, Term | 10 years | ||||||
Exercise price of stock options granted | $ / shares | $ 6.68 | ||||||
President And Chief Executive Officer | Third Anniversary | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Stock option vesting percentage | 25.00% | ||||||
President And Chief Executive Officer | Fourth Anniversary | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Stock option vesting percentage | 25.00% | ||||||
President And Chief Executive Officer | Fifth Anniversary | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Stock option vesting percentage | 50.00% | ||||||
Former Chief Executive Officer | Restricted Stock Awards | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Additional expense for accelerated vesting of unvested restricted stock awards | $ 3,908,000 | ||||||
Maximum | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Percentage of associate contribution to stock purchase plan | 20.00% | ||||||
2015 Stock Incentive Plan | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Prior period authorized aggregate number of shares available for issuance | shares | 6,023,157 | 4,000,000 | 2,500,000 | ||||
2015 Stock Incentive Plan | Employee Stock Option | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Vesting period, years | 4 years | ||||||
Term from date of grant, years | 10 years | ||||||
2006 Stock Incentive Plan | Employee Stock Option | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Vesting period, years | 4 years | ||||||
Term from date of grant, years | 10 years | ||||||
2006 Stock Incentive Plan | Maximum | |||||||
Share Based Compensation Arrangements and Share Repurchase Plan [Line Items] | |||||||
Prior period authorized aggregate number of shares available for issuance | shares | 3,009,974 | 2,507,407 |
Summary of Stock Option Grants
Summary of Stock Option Grants (Detail) - $ / shares | 12 Months Ended | ||
Mar. 03, 2018 | Feb. 25, 2017 | Feb. 27, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Options Outstanding, Shares, Beginning Balance | 124,800 | 1,210,548 | 1,448,548 |
Options granted, Shares | 320,469 | 23,000 | 15,500 |
Options exercised, Shares | (966,500) | (77,500) | |
Options cancelled or expired, Shares | (40,000) | (142,248) | (176,000) |
Options Outstanding, Shares, Ending Balance | 405,269 | 124,800 | 1,210,548 |
Options outstanding, Weighted Average Exercise Price, Beginning Balance | $ 8.50 | $ 7.34 | $ 8.09 |
Options granted, Weighted Average Exercise Price | 6.68 | 6.99 | 14.04 |
Options exercised, Weighted Average Exercise Price | 6.71 | 7.46 | |
Options cancelled or expired, Weighted Average Exercise Price | 7.77 | 10.57 | 14.06 |
Options outstanding, Weighted Average Exercise Price, Ending Balance | 7.13 | 8.50 | 7.34 |
Options granted, Weighted Average Fair Value at Date of Grant | $ 3.21 | $ 2.85 | $ 3.98 |
Options outstanding, Exercisable Shares, Number of Shares, Beginning Balance | 107,800 | 1,176,974 | 1,419,712 |
Options outstanding, Exercisable Shares, Number of Shares, Ending Balance | 73,250 | 107,800 | 1,176,974 |
Options outstanding, Exercisable Shares, Weighted Average Exercise Price, Beginning Balance | $ 8.22 | $ 7.06 | $ 7.86 |
Options outstanding, Exercisable Shares, Weighted Average Exercise Price, Ending Balance | $ 8.76 | $ 8.22 | $ 7.06 |
Shares Outstanding by Ranges of
Shares Outstanding by Ranges of Exercise Prices (Detail) | 12 Months Ended |
Mar. 03, 2018$ / sharesshares | |
$4.24 - $6.59 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Shares outstanding, Ranges of Exercise Prices, Lower Range Limit | $ 4.24 |
Shares outstanding, Ranges of Exercise Prices, Upper Range Limit | $ 6.59 |
Total Shares | shares | shares | 19,500 |
Weighted Average Exercise Price | $ 5.38 |
Weighted Average Remaining Contractual Life (in years) | 4 years 8 months 19 days |
Shares Currently Exercisable | shares | shares | 10,000 |
Weighted Average Exercise Price- Exercisable Shares | $ 4.24 |
$6.68 - $11.47 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Shares outstanding, Ranges of Exercise Prices, Lower Range Limit | 6.68 |
Shares outstanding, Ranges of Exercise Prices, Upper Range Limit | $ 11.47 |
Total Shares | shares | shares | 371,569 |
Weighted Average Exercise Price | $ 6.83 |
Weighted Average Remaining Contractual Life (in years) | 7 years 11 months 12 days |
Shares Currently Exercisable | shares | shares | 52,725 |
Weighted Average Exercise Price- Exercisable Shares | $ 7.68 |
$14.04 - $23.19 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Shares outstanding, Ranges of Exercise Prices, Lower Range Limit | 14.04 |
Shares outstanding, Ranges of Exercise Prices, Upper Range Limit | $ 23.19 |
Total Shares | shares | shares | 14,200 |
Weighted Average Exercise Price | $ 17.43 |
Weighted Average Remaining Contractual Life (in years) | 5 years 11 months 8 days |
Shares Currently Exercisable | shares | shares | 10,525 |
Weighted Average Exercise Price- Exercisable Shares | $ 18.43 |
Share Repurchase Plan (Detail)
Share Repurchase Plan (Detail) - Apr. 10, 2014 - USD ($) | 12 Months Ended | |||
Mar. 03, 2018 | Feb. 25, 2017 | Feb. 27, 2016 | ||
Equity, Class of Treasury Stock [Line Items] | ||||
Date Program Announced | Apr. 10, 2014 | |||
Authorized Amount | $ 200,000,000 | |||
Shares Purchased | 1,926,602 | 1,794,053 | 7,460,935 | |
Weighted Average Cost | [1] | $ 10.58 | ||
Remaining | $ 26,610,135 | |||
[1] | Represents weighted average cost for all share repurchases under the April 2014 program. |
Components of Income Before Tax
Components of Income Before Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 03, 2018 | Feb. 25, 2017 | Feb. 27, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes, Domestic | $ 13,882 | $ 39,818 | $ 54,887 |
Income before income taxes, Foreign | 4,015 | 5,441 | 8,278 |
Income before income taxes | $ 17,897 | $ 45,259 | $ 63,165 |
Provision for Income Taxes (Det
Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 03, 2018 | Feb. 25, 2017 | Feb. 27, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal, Current | $ 549 | $ 30,062 | $ 14,600 |
Federal, Deferred | 5,742 | (17,842) | 2,352 |
State, Current | (701) | 3,491 | 2,248 |
State, Deferred | 270 | (1,803) | 2,265 |
Foreign, Current | 411 | 1,222 | 2,066 |
Foreign, Deferred | 0 | 0 | 0 |
Provision for income taxes | $ 6,271 | $ 15,130 | $ 23,531 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 2 Months Ended | 10 Months Ended | 12 Months Ended | |||
Mar. 03, 2018 | Dec. 31, 2017 | Mar. 03, 2018 | Feb. 25, 2017 | Feb. 27, 2016 | Feb. 28, 2015 | |
Income Taxes [Line Items] | ||||||
Statutory federal income tax rate | 21.00% | 35.00% | 32.70% | 35.00% | 35.00% | |
Tax cuts and jobs act 2017, percentage of immediate deduction for certain new investments | 100.00% | |||||
Tax cuts and jobs act 2017, Non-cash tax benefit from provision estimate of remeasurment of federal deferred tax assets and liabilites | $ 323 | |||||
Unrecognized tax benefits | $ 4,906 | 4,906 | $ 6,990 | $ 2,551 | $ 765 | |
Unrecognized tax benefits, income tax penalties and interest | 118 | 142 | $ 286 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 602 | 602 | 379 | |||
State | ||||||
Income Taxes [Line Items] | ||||||
Net operating loss carryforward | 472 | 472 | 236 | |||
Tax credits | $ 1,822 | 1,822 | 1,512 | |||
Valuation allowance, deferred tax assets | $ 1,308 | $ 822 | ||||
State | Earliest Tax Year | ||||||
Income Taxes [Line Items] | ||||||
State net operating loss carryforwards expiration year | 2,020 | |||||
Tax credit carryforwards expiration year | 2,024 | |||||
State | Latest Tax Year | ||||||
Income Taxes [Line Items] | ||||||
State net operating loss carryforwards expiration year | 2,034 | |||||
Tax credit carryforwards expiration year | 2,038 |
Income Tax Reported in Consolid
Income Tax Reported in Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 03, 2018 | Feb. 25, 2017 | Feb. 27, 2016 | |
Income Tax Disclosure [Abstract] | |||
Tax provision at statutory federal income tax rate | $ 5,852 | $ 15,841 | $ 22,108 |
State income taxes, net of federal provision (benefit) | 664 | 352 | 2,488 |
Change in valuation allowance | 263 | 168 | 232 |
Foreign income taxes | 411 | 1,222 | 2,066 |
Foreign and other tax credits | (772) | (2,161) | (4,924) |
Non-deductible penalty | 1,021 | 40 | 39 |
Provisional remeasurement of U.S. federal deferred tax assets and liabilities | (323) | ||
Share-based compensation shortfall | 436 | ||
Uncertain tax positions | (1,482) | 825 | 578 |
Other, net | 201 | (1,157) | 944 |
Provision for income taxes | $ 6,271 | $ 15,130 | $ 23,531 |
Effective tax rate | 35.00% | 33.40% | 37.30% |
Deferred Tax Assets and Liabili
Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Mar. 03, 2018 | Feb. 25, 2017 | |
Income Tax Disclosure [Abstract] | |||
Deferred compensation | $ 9,707 | $ 23,692 | |
Accrued average rent | 9,764 | 14,130 | |
Self insurance reserves | 7,857 | 11,719 | |
Cumulative foreign currency translation | 1,588 | 3,316 | |
Deferred revenue and revenue reserves | 3,584 | 5,224 | |
Foreign and other tax credits | 1,822 | 2,655 | |
Other | 3,650 | 4,033 | |
Total deferred tax assets | 37,972 | 64,769 | |
Properties and equipment, net | (14,070) | (24,084) | |
Inventory | (13,578) | (18,613) | |
Store supplies | (2,393) | (3,629) | |
Deferred gain on debt repurchase | (2,199) | (7,342) | |
Other | (957) | (1,082) | |
Total deferred tax liabilities | (33,197) | (54,750) | |
Valuation allowance | (1,308) | (822) | |
Net deferred tax assets | [1] | $ 3,467 | $ 9,197 |
[1] | For fiscal 2018 and 2017, state deferred tax assets were $4,354 and $4,590, respectively, and federal deferred tax assets were $0 and $4,607, respectively. |
Deferred Tax Assets and Liabi48
Deferred Tax Assets and Liabilities (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 03, 2018 | Feb. 25, 2017 | |
Components Of Deferred Income Tax Assets And Liabilities [Line Items] | |||
Deferred tax assets | [1] | $ 3,467 | $ 9,197 |
State | |||
Components Of Deferred Income Tax Assets And Liabilities [Line Items] | |||
Deferred tax assets | 4,354 | 4,590 | |
Federal | |||
Components Of Deferred Income Tax Assets And Liabilities [Line Items] | |||
Deferred tax assets | $ 0 | $ 4,607 | |
[1] | For fiscal 2018 and 2017, state deferred tax assets were $4,354 and $4,590, respectively, and federal deferred tax assets were $0 and $4,607, respectively. |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits for Uncertain Tax Positions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 03, 2018 | Feb. 25, 2017 | Feb. 27, 2016 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits — beginning balance | $ 6,990 | $ 2,551 | $ 765 |
Gross increases — tax positions in current period | 219 | 4,643 | 231 |
Gross increases — tax positions in prior period | 47 | 225 | 1,862 |
Gross decreases — tax positions in prior period | (2,065) | (320) | (60) |
Settlements | (83) | (81) | |
Expiration of statute of limitations | (285) | (26) | (166) |
Unrecognized tax benefits — ending balance | $ 4,906 | $ 6,990 | $ 2,551 |
Schedule of Minimum Lease Commi
Schedule of Minimum Lease Commitments and Future Subtenant Receipts (Detail) $ in Thousands | Mar. 03, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Operating Leases, 2019 | $ 232,542 |
Operating Leases, 2020 | 203,744 |
Operating Leases, 2021 | 172,689 |
Operating Leases, 2022 | 144,424 |
Operating Leases, 2023 | 111,379 |
Operating Leases, Thereafter | 212,342 |
Total lease commitments | 1,077,120 |
Subtenant Income, 2019 | 1,309 |
Subtenant Income, 2020 | 1,326 |
Subtenant Income, 2021 | 1,380 |
Subtenant Income, 2022 | 1,404 |
Subtenant Income, 2023 | 1,028 |
Subtenant Income, Thereafter | 1,975 |
Total lease commitments | $ 8,422 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Aug. 26, 2017 | Mar. 03, 2018 | Feb. 25, 2017 | Feb. 27, 2016 | |
Commitments and Contingencies Disclosure [Line Items] | ||||
Rental expense | $ 261,889,000 | $ 264,735,000 | $ 269,540,000 | |
Contingent rentals expense | 238,000 | 223,000 | 400,000 | |
Sublease incomes | 1,199,000 | $ 646,000 | $ 322,000 | |
Selling, General and Administrative Expenses | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Legal and regulatory expenses | $ 6,600,000 | |||
Swingasan Chair and Stand | Voluntary Product Recall | Minimum | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Estimate of potential loss | 2,000,000 | |||
Swingasan Chair and Stand | Voluntary Product Recall | Maximum | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Estimate of potential loss | $ 6,200,000 |
Schedule of Quarterly Financial
Schedule of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 03, 2018 | [1] | Nov. 25, 2017 | Aug. 26, 2017 | May 27, 2017 | Feb. 25, 2017 | Nov. 26, 2016 | Aug. 27, 2016 | May 28, 2016 | Mar. 03, 2018 | Feb. 25, 2017 | Feb. 27, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Net sales | $ 512,229 | $ 469,161 | $ 407,607 | $ 409,525 | $ 528,352 | $ 475,901 | $ 405,823 | $ 418,370 | $ 1,798,522 | $ 1,828,446 | $ 1,892,230 | |
Gross profit | 189,713 | 176,676 | 140,164 | 151,597 | 206,912 | 196,393 | 145,036 | 148,967 | 658,150 | 697,308 | 704,980 | |
SG&A expenses | 148,201 | 150,395 | 138,087 | 140,195 | 148,509 | 160,833 | 135,777 | 142,724 | 576,878 | 587,843 | 578,828 | |
Operating income (loss) | 27,882 | 13,448 | (11,340) | (2,321) | 44,756 | 22,253 | (4,339) | (7,808) | 27,669 | 54,862 | 75,208 | |
Net income (loss) | $ 15,054 | $ 7,381 | $ (7,823) | $ (2,986) | $ 26,641 | $ 13,577 | $ (4,069) | $ (6,020) | $ 11,626 | $ 30,129 | $ 39,634 | |
Average shares outstanding — basic | 79,835 | 79,658 | 80,350 | 81,080 | 80,898 | 80,680 | 80,437 | 81,663 | 80,223 | 80,919 | 84,939 | |
Average shares outstanding — diluted | 79,854 | 79,658 | 80,350 | 81,080 | 81,156 | 80,683 | 80,437 | 81,663 | 80,254 | 80,984 | 85,370 | |
Basic earnings (loss) per share | $ 0.19 | $ 0.09 | $ (0.10) | $ (0.04) | $ 0.33 | $ 0.17 | $ (0.05) | $ (0.07) | $ 0.14 | $ 0.37 | $ 0.47 | |
Diluted earnings (loss) per share | $ 0.19 | $ 0.09 | $ (0.10) | $ (0.04) | $ 0.33 | $ 0.17 | $ (0.05) | $ (0.07) | $ 0.14 | $ 0.37 | $ 0.46 | |
[1] | The quarter ended March 3, 2018 consisted of 14 weeks, compared to 13 weeks for the quarter ended February 25, 2017 |