Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Apr. 22, 2015 | Aug. 30, 2014 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 28-Feb-15 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PIR | ||
Entity Registrant Name | PIER 1 IMPORTS INC/DE | ||
Entity Central Index Key | 278130 | ||
Current Fiscal Year End Date | -26 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 90,144,249 | ||
Entity Public Float | $1,418,402,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 |
Net sales | $1,865,782 | $1,771,743 | $1,704,885 |
Cost of sales | 1,116,076 | 1,026,180 | 961,826 |
Gross profit | 749,706 | 745,563 | 743,059 |
Selling, general and administrative expenses | 576,131 | 531,190 | 513,085 |
Depreciation and amortization | 46,304 | 38,873 | 30,988 |
Operating income | 127,271 | 175,500 | 198,986 |
Nonoperating (income) and expenses: | |||
Interest, investment income and other | -3,391 | -1,721 | -2,757 |
Interest expense | 10,260 | 2,572 | 743 |
Nonoperating (income) and expenses | 6,869 | 851 | -2,014 |
Income before income taxes | 120,402 | 174,649 | 201,000 |
Income tax provision | 45,240 | 67,118 | 71,556 |
Net income | $75,162 | $107,531 | $129,444 |
Earnings per share: | |||
Basic | $0.83 | $1.03 | $1.22 |
Diluted | $0.82 | $1.01 | $1.20 |
Dividends declared per share: | $0.24 | $0.21 | $0.17 |
Average shares outstanding during period: | |||
Basic | 91,081 | 104,121 | 106,222 |
Diluted | 92,128 | 106,248 | 108,259 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 |
Net income | $75,162 | $107,531 | $129,444 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustments, net of taxes of $1,339, $857 and $255, respectively | -3,729 | -2,391 | -918 |
Pension adjustments, net of taxes of $89, $(701) and $(447), respectively | -142 | 1,105 | 563 |
Other comprehensive loss | -3,871 | -1,286 | -355 |
Comprehensive income | $71,291 | $106,245 | $129,089 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 |
Foreign currency translation adjustments, tax | $1,339 | $857 | $255 |
Pension adjustments,taxes | $89 | ($701) | ($447) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Feb. 28, 2015 | Mar. 01, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents, including temporary investments of $69,572 and $121,446, respectively | $100,064 | $126,695 |
Accounts receivable, net of allowance for doubtful accounts of $396 and $398, respectively | 29,405 | 24,614 |
Inventories | 478,843 | 377,650 |
Prepaid expenses and other current assets | 45,851 | 47,547 |
Total current assets | 654,163 | 576,506 |
Properties, net | 214,048 | 183,352 |
Other noncurrent assets | 41,993 | 43,765 |
Assets, Total | 910,204 | 803,623 |
Current liabilities: | ||
Accounts payable | 102,762 | 84,238 |
Gift cards and other deferred revenue | 63,002 | 57,428 |
Accrued income taxes payable | 13,505 | 14,025 |
Current portion of long-term debt | 2,000 | |
Other accrued liabilities | 107,544 | 110,278 |
Total current liabilities | 288,813 | 265,969 |
Long-term debt | 204,746 | 9,500 |
Other noncurrent liabilities | 79,378 | 78,722 |
Commitments and contingencies | 0 | |
Shareholders' equity: | ||
Common stock, $0.001 par, 500,000,000 shares authorized 125,232,000 issued | 125 | 125 |
Paid-in capital | 222,438 | 235,637 |
Retained earnings | 713,575 | 660,040 |
Cumulative other comprehensive loss | -9,985 | -6,114 |
Less-35,320,000 and 26,517,000 common shares in treasury, at cost, respectively | -588,886 | -440,256 |
Stockholders' Equity Attributable to Parent, Total | 337,267 | 449,432 |
Liabilities and Equity, Total | $910,204 | $803,623 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Feb. 28, 2015 | Mar. 01, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Cash and cash equivalents, temporary investments | $69,572 | $121,446 |
Accounts receivable, allowance for doubtful accounts | $396 | $398 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 125,232,000 | 125,232,000 |
Treasury stock, shares | 35,320,000 | 26,517,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 |
Cash flows from operating activities: | |||
Net income | $75,162 | $107,531 | $129,444 |
Adjustments to reconcile to net cash provided by operating activities: | |||
Depreciation and amortization | 54,299 | 45,803 | 38,431 |
Stock-based compensation expense | 7,332 | 11,984 | 12,337 |
Deferred compensation | 8,244 | 6,739 | 6,192 |
Deferred income taxes | 7,647 | 13,907 | 19,928 |
Excess tax benefit from stock-based awards | -2,694 | -2,265 | -4,814 |
Amortization of deferred gains | -3,575 | -3,180 | -6,917 |
Change in reserve for uncertain tax positions | -1,078 | 6,241 | -6,252 |
Other | -2,486 | -3,665 | -2,087 |
Change in cash from: | |||
Inventories | -101,193 | -21,597 | -33,571 |
Proprietary credit card receivables | -351 | -1,585 | -2,019 |
Prepaid expenses and other assets | -4,120 | -6,697 | -31,620 |
Accounts payable and accrued expenses | 26,330 | 14,034 | -5,516 |
Accrued income taxes payable, net of payments | 2,174 | -8,018 | 10,513 |
Net cash provided by operating activities | 65,691 | 159,232 | 124,049 |
Cash flows from investing activities: | |||
Capital expenditures | -81,859 | -80,306 | -80,363 |
Proceeds from disposition of properties | 35 | 12,593 | 217 |
Proceeds from sale of restricted investments | 1,715 | 758 | 1,290 |
Purchase of restricted investments | -3,192 | -3,196 | -3,567 |
Net cash used in investing activities | -83,301 | -70,151 | -82,423 |
Cash flows from financing activities: | |||
Cash dividends | -21,627 | -21,697 | -17,989 |
Purchases of treasury stock | -185,540 | -192,284 | -100,000 |
Proceeds from stock options exercised, stock purchase plan and other, net | 2,088 | 18,923 | 15,237 |
Excess tax benefit from stock-based awards | 2,694 | 2,265 | 4,814 |
Issuance of long-term debt, net of discount | 198,000 | ||
Repayments of long-term debt | -1,000 | ||
Debt issuance costs | -3,636 | -1,149 | |
Borrowing of notes payable | 60,000 | ||
Repayments of notes payable | -60,000 | ||
Net cash used in financing activities | -9,021 | -193,942 | -97,938 |
Change in cash and cash equivalents | -26,631 | -104,861 | -56,312 |
Cash and cash equivalents at beginning of period | 126,695 | 231,556 | 287,868 |
Cash and cash equivalents at end of period | 100,064 | 126,695 | 231,556 |
Supplemental cash flow information: | |||
Interest paid | 10,213 | 3,133 | 3,563 |
Income taxes paid, net of refund | $42,142 | $56,659 | $43,740 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock | Paid-in Capital | Retained Earnings | Cumulative Other Comprehensive Loss | Treasury Stock |
In Thousands, except Share data | ||||||
Beginning Balance at Feb. 25, 2012 | $493,643 | $125 | $231,919 | $462,751 | ($4,473) | ($196,679) |
Beginning Balance (in shares) at Feb. 25, 2012 | 109,720,000 | |||||
Net income | 129,444 | 129,444 | ||||
Other comprehensive loss | -355 | -355 | ||||
Purchases of treasury stock (in shares) | -5,822,000 | |||||
Purchases of treasury stock | -100,000 | -100,000 | ||||
Stock-based compensation expense (in shares) | 809,000 | |||||
Stock-based compensation expense | 12,337 | 2,128 | 10,209 | |||
Exercise of stock options, stock purchase plan, and other (in shares) | 1,619,000 | |||||
Exercise of stock options, stock purchase plan, and other | 20,051 | -529 | 20,580 | |||
Cash dividends ($0.17, 0.21 & 0.24 per share for 2013, 2014 & 2015 respectively) | -17,989 | -17,989 | ||||
Ending Balance at Mar. 02, 2013 | 537,131 | 125 | 233,518 | 574,206 | -4,828 | -265,890 |
Ending Balance (in shares) at Mar. 02, 2013 | 106,326,000 | |||||
Net income | 107,531 | 107,531 | ||||
Other comprehensive loss | -1,286 | -1,286 | ||||
Purchases of treasury stock (in shares) | -11,600,000 | -9,788,000 | ||||
Purchases of treasury stock | -203,892 | -203,892 | ||||
Stock-based compensation expense (in shares) | 680,000 | |||||
Stock-based compensation expense | 11,984 | 2,381 | 9,603 | |||
Exercise of stock options, stock purchase plan, and other (in shares) | 1,497,000 | |||||
Exercise of stock options, stock purchase plan, and other | 19,661 | -262 | 19,923 | |||
Cash dividends ($0.17, 0.21 & 0.24 per share for 2013, 2014 & 2015 respectively) | -21,697 | -21,697 | ||||
Ending Balance at Mar. 01, 2014 | 449,432 | 125 | 235,637 | 660,040 | -6,114 | -440,256 |
Ending Balance (in shares) at Mar. 01, 2014 | 98,715,000 | |||||
Net income | 75,162 | 75,162 | ||||
Other comprehensive loss | -3,871 | -3,871 | ||||
Purchases of treasury stock (in shares) | -173,932,000 | -10,280,000 | ||||
Purchases of treasury stock | -173,932 | -173,932 | ||||
Stock-based compensation expense (in shares) | 875,000 | |||||
Stock-based compensation expense | 7,332 | -7,605 | 14,937 | |||
Exercise of stock options, stock purchase plan, and other (in shares) | 602,000 | |||||
Exercise of stock options, stock purchase plan, and other | 4,771 | -5,594 | 10,365 | |||
Cash dividends ($0.17, 0.21 & 0.24 per share for 2013, 2014 & 2015 respectively) | -21,627 | -21,627 | ||||
Ending Balance at Feb. 28, 2015 | $337,267 | $125 | $222,438 | $713,575 | ($9,985) | ($588,886) |
Ending Balance (in shares) at Feb. 28, 2015 | 89,912,000 |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 | |
Cash dividends, per share | $0.24 | $0.21 | $0.17 |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
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 the original global importer of home décor and furniture. The Company directly imports merchandise from many countries, and sells a wide variety of decorative accessories, furniture, candles, housewares, gifts and seasonal products in its stores and through the Company’s website, pier1.com. Additionally, the Company sells merchandise primarily in “store within a store” locations in Mexico and El Salvador 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 2015, 2014 and 2013, respectively, the Company’s domestic operations provided 92.5%, 92.0% and 91.4% of its net sales, with 6.9%, 7.3% and 7.9% provided by stores in Canada, and the remainder from royalties received primarily from Sears Operadora de Mexico S.A. de C.V. As of February 28, 2015, March 1, 2014 and March 2, 2013, $4,707,000, $5,578,000 and $5,344,000, respectively, of the Company’s long-lived assets 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. | |||||||||||||
Reclassifications — Certain items in these consolidated financial statements have been reclassified to conform to the current period presentation. | |||||||||||||
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 2015 ended February 28, 2015, fiscal 2014 ended March 1, 2014 and fiscal 2013 ended March 2, 2013. Both fiscal 2015 and 2014 consisted of 52-week years and fiscal 2013 was a 53-week year. | |||||||||||||
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 a trust to satisfy retirement obligations and are classified as non-current assets. As of February 28, 2015 and March 1, 2014, the Company’s short-term investments classified as cash equivalents included investments primarily in mutual funds totaling $69,572,000 and $121,446,000, 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 loss. As of February 28, 2015, March 1, 2014 and March 2, 2013, the Company had cumulative other comprehensive loss balances of $(7,425,000), $(3,696,000) and $(1,304,000), respectively, related to cumulative translation adjustments. The adjustments for currency translation during fiscal 2015, 2014 and 2013 resulted in other comprehensive loss, net of tax, as applicable, of $(3,729,000), $(2,391,000) and $(918,000), respectively. Deferred income taxes not recorded on the portion of the cumulative currency translation adjustment considered to be permanently reinvested abroad were immaterial in fiscal 2015, 2014 and 2013. | |||||||||||||
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, 14% derived from merchandise produced in India and 18% 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 February 28, 2015 or March 1, 2014. | |||||||||||||
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. | |||||||||||||
From time to time, the Company hedges certain commitments denominated in foreign currencies through the purchase of forward contracts. The forward contracts are purchased to cover a portion of commitments to buy merchandise for resale. The Company also, on occasion, uses contracts to hedge its exposure associated with the repatriation of funds from its Canadian operations. As of February 28, 2015 and March 1, 2014, there were no material outstanding contracts to hedge exposure associated with the Company’s merchandise purchases denominated in foreign currencies or the repatriation of Canadian funds. For financial accounting purposes, the Company does not designate such contracts as hedges. Thus, changes in the fair value of both types of forward contracts would be included in the Company’s consolidated statements of operations. The changes in fair value and settlement of these contracts were not material and were included in cost of sales for forward contracts related to merchandise purchases, and in selling, general and administrative expense for forward contracts associated with the repatriation of Canadian funds. | |||||||||||||
When the Company enters into forward foreign currency exchange contracts, it enters into them with major financial institutions and monitors its positions with, and the credit quality of, these counterparties to such financial instruments. | |||||||||||||
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. At the end of fiscal 2015, accounts receivable included $6.7 million related to life insurance settlement proceeds that were received during the first quarter of fiscal 2016. | |||||||||||||
Inventories — The Company’s inventory is comprised of finished merchandise and is stated at the lower of weighted average cost or market value. Cost is calculated based upon the actual landed cost of an item at the time it is received in the Company’s distribution center using vendor invoices, the cost of warehousing and transporting merchandise to the stores and other direct costs associated with purchasing merchandise. | |||||||||||||
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 2015 and 2014 were $5,105,000 and $5,120,000, respectively. | |||||||||||||
Properties, maintenance and repairs — 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. 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 related to the Company’s distribution and fulfillment centers, including related equipment, is included in cost of sales. All other depreciation costs are included in depreciation and amortization and were $46,304,000, $38,873,000 and $30,988,000 in fiscal 2015, 2014 and 2013, 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 and whenever an event or change in circumstances indicates that their carrying values may not be recoverable. If the carrying value exceeds the sum of the expected undiscounted cash flows, the assets are considered impaired. Impairment, if any, is recorded in the period in which the impairment occurred. The Company recorded no material impairment charges in fiscal 2015, 2014 or 2013. | |||||||||||||
Insurance provision — The Company maintains insurance for workers’ compensation and general liability claims with deductibles of $1,000,000 per occurrence. 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 $22,845,000 and $20,480,000 at February 28, 2015 and March 1, 2014, respectively. The recorded liability for general liability claims and fees was $4,455,000 and $6,619,000 at February 28, 2015 and March 1, 2014, 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 reserves for estimated merchandise returns at the end of fiscal 2015 and 2014 were $2,859,000 and $2,748,000, respectively. The Company’s revenues are reported net of discounts and returns, net of sales tax and third-party credit card fees, and include wholesale sales and royalties received from Sears Operadora de Mexico S.A. de C.V. and Corporacion de Tiendas Internationales, S.A. de C.V. Amounts billed to customers for shipping and handling are included in net sales. | |||||||||||||
Cost of sales — Cost of sales includes the cost of the merchandise, buying expenses, costs related to the Company’s distribution network (including depreciation) and store occupancy expenses. The costs incurred by the Company for shipping and handling are recorded in cost of sales. | |||||||||||||
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 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 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 $3,938,000, $4,455,000 and $4,348,000 in fiscal 2015, 2014 and 2013, respectively. | |||||||||||||
Leases — The Company leases certain property consisting principally of retail stores, warehouses, its home office and material handling and office equipment under operating leases expiring through fiscal 2029. 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 stores. The portion of rent expense applicable to a store before opening is included in selling, general and administrative 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 additional 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 were $81,483,000, $76,071,000 and $71,214,000 in fiscal 2015, 2014 and 2013, respectively. Prepaid advertising at the end of fiscal years 2015 and 2014 was $4,269,000 and $2,951,000, respectively. | |||||||||||||
Defined benefit plans — The Company maintains supplemental retirement plans for certain of its current and 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 such as discount rates, compensation increase rates, or retirement dates used to determine the projected benefit obligation. Additionally, changes made to the provisions of the plans may impact current and future benefit costs. 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 remaining average service period 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. Deferred tax assets and liabilities are recorded in the Company’s consolidated balance sheet and are classified as current or noncurrent based on the classification of the related assets or liabilities for financial reporting purposes. 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 uncertain tax positions 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, 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): | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Net Income | $ | 75,162 | $ | 107,531 | $ | 129,444 | |||||||
Weighted average shares outstanding: | |||||||||||||
Basic | 91,081 | 104,121 | 106,222 | ||||||||||
Effect of dilutive stock options | 696 | 1,268 | 1,337 | ||||||||||
Effect of dilutive restricted stock | 351 | 859 | 700 | ||||||||||
Diluted | 92,128 | 106,248 | 108,259 | ||||||||||
Earnings per share: | |||||||||||||
Basic | $ | 0.83 | $ | 1.03 | $ | 1.22 | |||||||
Diluted | $ | 0.82 | $ | 1.01 | $ | 1.2 | |||||||
Outstanding stock options totaling 114,623 for fiscal 2015, 6,624 for fiscal 2014 and 961,575 for fiscal 2013 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 all companies to measure and recognize compensation expense at an amount equal to the fair value of share-based payments granted. 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 certain 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 portion of the performance-based shares vests 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 are based on a market condition and 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. | |||||||||||||
The Company estimates forfeitures based on its historical forfeiture experience, and adjusts forfeiture estimates based on actual forfeiture experience for all awards with service conditions. The effect of any forfeiture adjustments was insignificant. | |||||||||||||
Adoption of new accounting standards — In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers,” which creates a new Topic, Accounting Standards Codification Topic 606. The standard is principle-based and provides a five-step model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This standard is effective for the Company beginning in fiscal 2018 at the earliest, and allows for either full retrospective adoption or modified retrospective adoption. The Company is currently evaluating the impact of the adoption of Topic 606 on its financial statements. | |||||||||||||
In April 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-03, “Interest — Imputation of Interest”. To simplify presentation of debt issuance costs, the amendments in this standard would require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs would not be affected by the amendments in this standard. This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2014-250, “Interest — Imputation of Interest (Subtopic 835-30)”, which has been deleted. The standard is effective for the Company beginning in fiscal 2017. The Company is currently evaluating the impact of the adoption on its consolidated financial statements. |
Properties
Properties | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Properties | NOTE 2 — PROPERTIES | ||||||||
Properties are summarized as follows at February 28, 2015 and March 1, 2014 (in thousands): | |||||||||
2015 | 2014 | ||||||||
Land | $ | 535 | $ | 535 | |||||
Buildings | 8,087 | 8,087 | |||||||
Equipment, furniture, fixtures and other | 342,407 | 303,822 | |||||||
Leasehold improvements | 213,148 | 203,938 | |||||||
Computer software | 89,271 | 85,157 | |||||||
Projects in progress | 6,837 | 6,059 | |||||||
660,285 | 607,598 | ||||||||
Less accumulated depreciation and amortization | 446,237 | 424,246 | |||||||
Properties, net | $ | 214,048 | $ | 183,352 | |||||
During fiscal 2014, the Company sold all remaining company-owned store locations including the buildings and accompanying land for net proceeds of approximately $12,379,000. The Company also entered into lease agreements for each of these locations. The leases have primary terms ranging from five years to ten years with renewal options and provisions similar to the Company’s existing store leases. The related gain on the sale of the properties was approximately $7,338,000, the majority of which was deferred and will be recognized over the expected lease term of each respective location. The remaining deferred gain is primarily included in other noncurrent liabilities and was $5,572,000 and $6,358,000 as of February 28, 2015 and March 1, 2014, respectively. |
Other_Accrued_Liabilities_and_
Other Accrued Liabilities and Noncurrent Liabilities | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
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 February 28, 2015 and March 1, 2014 (in thousands): | |||||||||
2015 | 2014 | ||||||||
Accrued payroll and other employee-related liabilities | $ | 59,422 | $ | 46,275 | |||||
Accrued taxes, other than income | 23,160 | 20,568 | |||||||
Rent-related liabilities | 7,854 | 6,946 | |||||||
Other | 17,108 | 36,489 | |||||||
Other accrued liabilities | $ | 107,544 | $ | 110,278 | |||||
Rent-related liabilities | $ | 26,263 | $ | 23,444 | |||||
Deferred gains | 5,666 | 7,573 | |||||||
Retirement benefits | 41,791 | 42,050 | |||||||
Other | 5,658 | 5,655 | |||||||
Other noncurrent liabilities | $ | 79,378 | $ | 78,722 |
LongTerm_Debt_and_Available_Cr
Long-Term Debt and Available Credit | 12 Months Ended | ||||
Feb. 28, 2015 | |||||
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 February 28, 2015 and March 1, 2014. 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 1.7%, 1.9% and 2.4% for fiscal 2015, 2014 and 2013, respectively. | |||||
Revolving Credit Facility — The Company has a $350,000,000 secured revolving credit facility with a $100,000,000 accordion feature (“Revolving Credit Facility”). The Company completed a second amendment to its Revolving Credit Facility on April 30, 2014, in order to allow additional borrowings under a senior secured term loan facility (“Term Loan Facility”) which closed on the same day. Substantially all other material terms and conditions applicable under the Revolving Credit Facility remain unchanged. 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 $450,000,000. The Revolving Credit Facility matures in June 2018 and is 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, following the incurrence of the Term Loan Facility indebtedness discussed below, is secured on a second lien basis by 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 LIBOR rate plus a spread varying from 125 to 175 basis points per year, 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 75 basis points per year, depending on the amount then borrowed under the Revolving Credit Facility. The Company pays a fee ranging from 125 to 175 basis points per year for standby letters of credit depending on the average daily availability as defined by the agreement, 62.5 to 87.5 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 February 28, 2015 and March 1, 2014, 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 17.5% 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 30% of the lesser of either $350,000,000 or the calculated borrowing base. | |||||
During fiscal 2015 the Company repaid all cash borrowings under the Revolving Credit Facility. During fiscal 2014 and 2013 there were no cash borrowings under the Revolving Credit Facility. 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 $393,248,000 as of February 28, 2015. The borrowing base calculation was subject to advance rates and commercially reasonable availability reserves. As of February 28, 2015, the Company utilized approximately $38,069,000 in letters of credit and bankers’ acceptances against the Revolving Credit Facility. Of the outstanding balance, approximately $1,644,000 related to trade letters of credit and bankers’ acceptances for merchandise purchases, $20,250,000 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 $6,460,000 related to other miscellaneous standby letters of credit. After excluding the $38,069,000 in utilized letters of credit and bankers’ acceptances from the borrowing base, $311,931,000 remained available for cash borrowings. | |||||
Term Loan Facility — The Company entered into the 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 5.0% for fiscal 2015. As of February 28, 2015, the Company had $199,000,000 in borrowings under the Term Loan Facility with a carrying value of $197,246,000, net of unamortized discounts. 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 could be subject to an annual excess cash flow repayment requirement, as defined in the Term Loan Facility, beginning with the fiscal year ending February 28, 2015. 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 prior to 12 months after closing subject to a 1% penalty in certain cases, and without penalty thereafter. The fair value of the Term Loan Facility was approximately $199,000,000 as of February 28, 2015, which was measured at fair value using the quoted market price. The Term Loan Facility was classified as Level 2 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 | ||||
2016 | $ | 2,000 | |||
2017 | 2,000 | ||||
2018 | 2,000 | ||||
2019 | 2,000 | ||||
Thereafter | 191,000 | ||||
Total | 199,000 | ||||
Debt Discount | (1,754 | ) | |||
Total Debt | $ | 197,246 |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Employee Benefit Plans | NOTE 5 — EMPLOYEE BENEFIT PLANS | ||||||||||||
The Company offers a qualified defined contribution employee retirement plan (“Qualified 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 six months. During fiscal 2015, 2014 and 2013, employees contributing 1% to 5% of their compensation received a matching Company contribution of up to 3%. Company contributions to the plan were $2,455,000, $2,071,000 and $2,119,000 in fiscal 2015, 2014 and 2013, respectively. | |||||||||||||
In addition, the Company offers non-qualified deferred compensation plans (“Non-Qualified Plans”) for the purpose of providing deferred compensation for certain employees whose benefits under the Qualified Plan may be limited under Section 401(k) of the Internal Revenue Code. The Company’s expense for the Non-Qualified Plans was $1,269,000, $1,381,000 and $1,051,000 for fiscal 2015, 2014 and 2013, respectively. The Company has trusts established for the purpose of setting aside funds to be used to settle certain obligations of the Non-Qualified Plans, and contributed $3,192,000 and used $1,715,000 to satisfy a portion of retirement obligations during fiscal 2015. The Company also contributed $3,196,000 and used $758,000 to satisfy a portion of retirement obligations during fiscal 2014. The trusts’ assets included investments and life insurance policies on the lives of former key executives. As of February 28, 2015 and March 1, 2014, the trusts’ investments had an aggregate value of $10,571,000 and $6,673,000, 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 $5,736,000 and $6,728,000, and death benefits of $11,336,000 and $13,127,000 as of February 28, 2015 and March 1, 2014, respectively. The decreases compared to prior year resulted from the recognition of the death benefit value of certain policies during fiscal 2015. 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 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 $13,096,000 and $18,068,000, and the death benefit was $19,927,000 and $26,362,000 as of February 28, 2015 and March 1, 2014, respectively. The cash surrender value of these policies is included in other noncurrent assets. The decreases compared to prior year resulted from the recognition of the death benefit value of certain policies during fiscal 2015. | |||||||||||||
The Company maintains supplemental retirement plans for certain of its current and 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 $5,993,000, $4,023,000 and $3,423,000 in fiscal 2015, 2014 and 2013, respectively. | |||||||||||||
The plans are not funded and thus have no plan assets. However, a trust has been established for the purpose of setting aside funds to be used 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 $17,000 as of February 28, 2015 and March 1, 2014, that 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 2015 and 2014, there were no cash contributions made to the trust and no restricted investments were sold to fund retirement benefits. Any future contributions will be made at the discretion of the Board of Directors. Funds from the trust will be used to fund or partially fund benefit payments. The Company expects to pay $127,000 during fiscal 2016, $127,000 during fiscal 2017, $127,000 during fiscal 2018, $27,111,000 during fiscal 2019, $134,000 during fiscal 2020, and $1,218,000 during fiscal years 2021 through 2025 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 February 28, 2015 and March 1, 2014 (in thousands): | |||||||||||||
2015 | 2014 | ||||||||||||
Change in projected benefit obligation: | |||||||||||||
Projected benefit obligation, beginning of year | $ | 27,481 | $ | 25,573 | |||||||||
Service cost | 1,402 | 1,456 | |||||||||||
Interest cost | 823 | 765 | |||||||||||
Actuarial (gain) loss | 2,772 | (188 | ) | ||||||||||
Benefits paid (including settlements) | (7,707 | ) | (125 | ) | |||||||||
Curtailment | 633 | — | |||||||||||
Projected benefit obligation, end of year | $ | 25,404 | $ | 27,481 | |||||||||
Reconciliation of funded status: | |||||||||||||
Projected benefit obligation | $ | 25,404 | $ | 27,481 | |||||||||
Plan assets | — | — | |||||||||||
Funded status | $ | (25,404 | ) | $ | (27,481 | ) | |||||||
Accumulated benefit obligation | $ | (25,404 | ) | $ | (27,481 | ) | |||||||
Amounts recognized in the balance sheets: | |||||||||||||
Current liability | $ | (127 | ) | $ | (127 | ) | |||||||
Noncurrent liability | (25,277 | ) | (27,354 | ) | |||||||||
Accumulated other comprehensive loss, pre-tax | 4,361 | 4,724 | |||||||||||
Net amount recognized | $ | (21,043 | ) | $ | (22,757 | ) | |||||||
Cumulative other comprehensive loss, net of taxes of $3,121 and $3,261 in fiscal 2015 and 2014, respectively | $ | 1,240 | $ | 1,463 | |||||||||
Weighted average assumptions used to determine: | |||||||||||||
Benefit obligation, end of year: | |||||||||||||
Discount rate | 2.5 | % | 3 | % | |||||||||
Lump-sum conversion discount rate | 4 | % | 5 | % | |||||||||
Rate of compensation increase (1) | 3 | % | 0 | % | |||||||||
Net periodic benefit cost for years ended: | |||||||||||||
Discount rate | 2.5 | % | 3 | % | |||||||||
Lump-sum conversion discount rate | 4 | % | 5 | % | |||||||||
Rate of compensation increase | 0 | % | 3 | % | |||||||||
(1) | The rate of compensation increase shown above assumes an increase of 0% for fiscal year 2016 and 3% for fiscal years thereafter, except for the Company’s CEO. The CEO’s rate of compensation is set forth in his employment agreement. | ||||||||||||
The Company’s former Chief Financial Officer retired on February 10, 2015. As of his retirement date, he had earned under one of the plans an early retirement benefit payment of $7,573,981, which is not included in the projected benefit obligation at fiscal 2015 year end. The benefit payment will be paid during fiscal 2016 and is included in other accrued liabilities. | |||||||||||||
Net periodic benefit cost included the following actuarially determined components during fiscal 2015, 2014 and 2013 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. | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Service cost | $ | 1,402 | $ | 1,456 | $ | 1,353 | |||||||
Interest cost | 823 | 765 | 740 | ||||||||||
Amortization of unrecognized prior service cost | 410 | 410 | 410 | ||||||||||
Amortization of net actuarial loss | 1,329 | 1,392 | 1,408 | ||||||||||
Settlement | 1,248 | — | (488 | ) | |||||||||
Curtailment | 781 | — | — | ||||||||||
Net periodic benefit cost | $ | 5,993 | $ | 4,023 | $ | 3,423 | |||||||
As of February 28, 2015 and March 1, 2014, cumulative other comprehensive loss included amounts that had not been recognized as components of net periodic benefit cost related to prior service cost of $178,000 and $736,000, and net actuarial loss of $4,183,000 and $3,988,000, respectively. During fiscal 2015, 2014 and 2013, $(2,772,000), $188,000 and $(854,000), respectively, were recognized in other comprehensive income related to net actuarial gain (loss) for the period. The estimated prior service cost and net actuarial loss that will be amortized from cumulative other comprehensive loss into net periodic benefit cost in fiscal 2016 are $59,000 and $1,394,000, respectively. |
Matters_Concerning_Shareholder
Matters Concerning Shareholders' Equity | 12 Months Ended | ||||||||||||||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||||||||||||||
Matters Concerning Shareholders' Equity | NOTE 6 — MATTERS CONCERNING SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||
The Pier 1 Imports, Inc. 2006 Stock Incentive Plan (“2006 Plan”) was approved by the shareholders on June 22, 2006. The aggregate number of shares available for issuance under the 2006 Plan included a new authorization of 1,500,000 shares, plus shares (not to exceed 560,794 shares) that remained available for grant under the Pier 1 Imports, Inc. 1999 Stock Plan (“1999 Stock Plan”) and the Pier 1 Imports, Inc. Management Restricted Stock Plan, increased by the number of shares (not to exceed 11,186,150 shares) subject to outstanding awards on March 23, 2006, under these prior plans that cease to be subject to such awards. As of February 28, 2015, there were a total of 3,447,563 shares available for issuance under the 2006 Plan. | |||||||||||||||||||||||||||||
Restricted stock awarded to the Chief Executive Officer — On June 13, 2012, upon the recommendation of the Compensation Committee, the Board of Directors approved a renewal and extension of the employment agreement for the Chief Executive Officer (“CEO”). This renewal and extension provides that a total of 1,125,000 shares of restricted stock will be awarded over a three-year period that began during fiscal 2014. 540,000 of the shares are time-based and the remaining 585,000 shares are performance-based. In accordance with the accounting guidance on equity compensation, all 540,000 shares of the time-based restricted stock included in the renewed and extended employment agreement had a grant date as of the date of the employment agreement, which was June 13, 2012. On the date the employment agreement was signed, June 13, 2012, both the Company and the CEO had a mutual understanding of all key terms and conditions related to the time-based restricted stock awards, and the Company became obligated to issue the restricted stock awards to the CEO, subject only to his continued employment. In addition, all necessary approvals from both the Company’s Compensation Committee and Board of Directors were obtained on June 13, 2012, for the restricted stock awards. Therefore, on June 13, 2012, the Company began expensing these time-based shares, which had a grant date fair value of $15.58 per share. The Company did not begin expensing any of the performance-based awards during fiscal 2013 because the performance-based metrics, which are a key term of the awards, had not been established and, therefore, both parties did not have a mutual understanding of all key terms of the performance-based awards. | |||||||||||||||||||||||||||||
During fiscal 2015, pursuant to the renewed and extended agreement described above, the CEO received performance-based shares of restricted stock that vest equally over a period of three fiscal years if the Company achieves certain fiscal year targeted levels of a performance measure for each year as defined in the agreement and associated award agreements. Shares that do not vest because the performance target is not met during one fiscal year may vest in future fiscal years if certain aggregate levels of the performance measure are achieved. The vesting of performance-based shares will occur on the date the Company’s Annual Report on Form 10-K is filed with the Securities and Exchange Commission (“SEC”) for each respective fiscal year. In accordance with accounting guidelines, one-third of the performance-based shares had a grant date in fiscal 2015 and the Company began expensing these shares during fiscal 2015. The remaining two-thirds of the performance shares did not have a grant date in fiscal 2015 because the performance targets for future fiscal years, which are a key term of the award, have not been established and, therefore, both parties did not have a mutual understanding of all key terms of the award. The CEO must be employed by the Company on the last day of each respective fiscal year in order for the performance-based shares to vest. These shares could also vest under certain termination events. During fiscal 2015, the Company also began expensing performance-based restricted shares awarded in previous fiscal years that were based on the fiscal 2015 performance target. These performance-based shares expensed during fiscal 2015 had a grant date fair value of $18.69 per share. However, the fiscal 2015 performance target was not achieved and the related expense was reversed. In addition, the CEO also received an award of performance-based shares during fiscal 2015 that are based on a market condition and may vest following the end of fiscal 2017 if certain annual equivalent returns of total shareholder return targets are achieved in comparison to a peer group. The grant date fair value for these performance-based shares was determined using a lattice valuation model in accordance with accounting guidelines, and the Company began expensing these shares at $9.94 per share during fiscal 2015. | |||||||||||||||||||||||||||||
Restricted stock awarded to certain employees — During fiscal 2015, the Company awarded long-term incentive awards under the 2006 Plan to certain employees. Fiscal 2015 long-term incentive awards were comprised of restricted stock grants that were divided between time-based and three different types of 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, and in accordance with accounting guidelines, the Company began expensing the time-based shares at $17.78 per share during fiscal 2015. The first portion of the performance-based shares may vest 33% upon the Company satisfying a certain targeted level of a performance measure established in fiscal 2015 and has a fair value of $17.78 per share. The remaining shares may vest 33% and 34% for each of the following two fiscal years, respectively, upon the Company satisfying a certain targeted level of a performance measure for the respective fiscal years, provided that vesting for each fiscal year is conditioned upon the participant being employed on the date of filing of the Company’s Annual Report on Form 10-K with the SEC for the applicable fiscal year. In accordance with accounting guidelines, only 33% of fiscal 2015 performance-based shares had a grant date in fiscal 2015 because the targeted performance measure for future fiscal years, which are a key term of the award, had not been established and, therefore, both parties did not have a mutual understanding of all key terms of the award. Shares that do not vest because the performance target is not met during one fiscal year may vest in future fiscal years if certain aggregate levels of the performance measure are achieved. During fiscal 2015, the Company also began expensing performance-based restricted shares awarded in previous fiscal years that were based on the fiscal 2015 performance target. These performance-based shares had a grant date fair value of $18.69 per share. | |||||||||||||||||||||||||||||
The second portion of the performance-based shares awarded in fiscal 2015 is based on the achievement of both a total sales threshold and an e-Commerce percent of total sales for fiscal 2017 and may vest on the date of filing of the Company’s fiscal 2017 Annual Report on Form 10-K with the SEC if certain thresholds are met. The fair value of these performance-based shares was $17.78. The third portion of the performance-based shares awarded in fiscal 2015 is based on a market condition and may vest following the end of fiscal 2017 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, and the Company began expensing these shares at $9.04 per share during fiscal 2015. | |||||||||||||||||||||||||||||
During fiscal 2015, the Company awarded one-time grants of service-based long-term restricted stock to three of its executive officers. A total of 122,280 shares was awarded equally among the three officers, which had a grant date fair value of $12.30. The Company began expensing these shares during fiscal 2015. Each officer’s shares will vest one half on October 16, 2019, and the remaining shares will vest on October 16, 2020, provided that the officer is employed on each respective vesting date. | |||||||||||||||||||||||||||||
As of February 28, 2015 and March 1, 2014, the Company had 1,025,638 and 823,826 unvested shares of restricted stock awards outstanding, respectively (excluding shares unvested with respect to CEO grants). During fiscal 2015, 633,852 shares of restricted stock were awarded, 272,041 shares of restricted stock vested, and 159,999 shares of restricted stock were forfeited. The weighted average fair market value at the date of grant of the restricted stock shares awarded during fiscal 2015 was $16.04 per share and is being expensed over the requisite service period. This amount does not include performance-based restricted shares that the Company will begin expensing in future fiscal years when the targeted performance measures are set, but does include performance-based restricted shares awarded in previous fiscal years that were based on a fiscal 2015 targeted performance measure. | |||||||||||||||||||||||||||||
Restricted stock compensation expense — Compensation expense for restricted stock was $7,240,000, $11,890,000 and $12,167,000 in fiscal 2015, 2014 and 2013, respectively. For performance-based awards, the grant date fair value is based on the probable outcome of Pier 1 Imports achieving performance targets. However, targets for fiscal 2015 and 2014 were not achieved, the maximum number of shares did not vest and as a result, compensation expense was lowered by $3,200,000 and $1,475,000 in fiscal 2015 and 2014, respectively. As of February 28, 2015, there was $15,020,000 of total unrecognized compensation expense related to restricted stock that may be recognized over a weighted average period of 2.0 years. The total fair value of restricted stock awards vested was $7,098,000, $17,810,000 and $15,339,000 in fiscal 2015, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||
The Company realized a total tax benefit related to stock-based compensation of $5,856,000, $3,993,000 and $7,605,000 during fiscal years 2015, 2014 and 2013, respectively, of which $2,695,000, $2,265,000 and $4,814,000 were recorded as excess tax benefits. See Note 7 of the Notes to Consolidated Financial Statements for additional discussion of income taxes. | |||||||||||||||||||||||||||||
Stock options — Under the CEO’s initial employment agreement effective February 19, 2007, the CEO received stock option grants with a term of ten years from the grant date. As of February 28, 2015, outstanding options covering 944,000 shares were exercisable. The options were granted as an employment inducement award and not under any equity incentive plan adopted by the Company. | |||||||||||||||||||||||||||||
As of February 28, 2015 and March 1, 2014, outstanding options covering 305,700 and 405,400 shares were exercisable under the 2006 Plan, respectively. Options were granted at exercise prices equal to the fair market value of the Company’s common stock at the date of grant. Options issued under the 2006 Plan vest over a period of four years and have a term of ten years from the grant date. The options will be fully vested upon death, disability or retirement of the associate. The 2006 Plan’s administrative committee also 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). Additionally, outstanding options covering 170,000 and 481,500 shares were exercisable under the Company’s previous stock plans at fiscal years ended 2015 and 2014, respectively. | |||||||||||||||||||||||||||||
A summary of stock option transactions related to the Company’s stock option grants during the three fiscal years is as follows: | |||||||||||||||||||||||||||||
Exercisable Shares | |||||||||||||||||||||||||||||
Shares | Weighted | Weighted | Number of | Weighted | |||||||||||||||||||||||||
Average | Average | Shares | Average | ||||||||||||||||||||||||||
Exercise | Fair Value | Exercise | |||||||||||||||||||||||||||
Price | at Date of | Price | |||||||||||||||||||||||||||
Grant | |||||||||||||||||||||||||||||
Outstanding at February 25, 2012 | 5,735,475 | $ | 12.16 | 5,620,525 | $ | 12.26 | |||||||||||||||||||||||
Options granted | 11,900 | 18.8 | $ | 14.75 | |||||||||||||||||||||||||
Options exercised | (1,545,500 | ) | 11.08 | ||||||||||||||||||||||||||
Options cancelled or expired | (713,750 | ) | 20.09 | ||||||||||||||||||||||||||
Outstanding at March 2, 2013 | 3,488,125 | 11.05 | 3,468,275 | 11.02 | |||||||||||||||||||||||||
Options granted | 13,248 | 23.19 | 6.7 | ||||||||||||||||||||||||||
Options exercised | (1,627,500 | ) | 12.9 | ||||||||||||||||||||||||||
Options cancelled or expired | (16,000 | ) | 17.28 | ||||||||||||||||||||||||||
Outstanding at March 1, 2014 | 1,857,873 | 9.45 | 1,830,900 | 9.31 | |||||||||||||||||||||||||
Options granted | 11,300 | 17.78 | 4.25 | ||||||||||||||||||||||||||
Options exercised | (187,625 | ) | 10.97 | ||||||||||||||||||||||||||
Options cancelled or expired | (233,000 | ) | 17.09 | ||||||||||||||||||||||||||
Outstanding at February 28, 2015 | 1,448,548 | 8.09 | 1,419,712 | 7.86 | |||||||||||||||||||||||||
For options outstanding at February 28, 2015 | Weighted | Weighted | |||||||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||||||
Remaining | Exercise Price- | ||||||||||||||||||||||||||||
Contractual | Exercisable | ||||||||||||||||||||||||||||
Life | Shares | ||||||||||||||||||||||||||||
Ranges of Exercise Prices | Total | Weighted | (in years) | Shares | |||||||||||||||||||||||||
Shares | Average | Currently | |||||||||||||||||||||||||||
Exercise | Exercisable | ||||||||||||||||||||||||||||
Price | |||||||||||||||||||||||||||||
$4.24 — $6.69 | 954,000 | $ | 6.66 | 1.99 | 954,000 | $ | 6.66 | ||||||||||||||||||||||
$7.45 — $11.27 | 286,500 | 7.63 | 2.29 | 286,500 | 7.63 | ||||||||||||||||||||||||
$11.47 — $17.78 | 177,900 | 14.37 | 1.07 | 164,950 | 14.17 | ||||||||||||||||||||||||
$18.49 — $23.19 | 30,148 | 20.68 | 6.34 | 14,262 | 19.71 | ||||||||||||||||||||||||
As of February 28, 2015, the weighted average remaining contractual term for outstanding and exercisable options was 2.0 years and 1.9 years, respectively. The aggregate intrinsic value for outstanding and exercisable options was $6,420,000 and $6,419,000, respectively, at fiscal 2015 year end. The total intrinsic value of options exercised for fiscal years 2015, 2014 and 2013 was approximately $1,101,000, $16,380,000 and $13,420,000, 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. | |||||||||||||||||||||||||||||
At February 28, 2015, there was approximately $144,000 of total unrecognized compensation expense related to unvested stock option awards, which is expected to be recognized over a weighted average period of 2.0 years. The fair value of the stock options is amortized on a straight-line basis as compensation expense over the vesting periods of the options. The Company recorded stock-based compensation expense related to stock options of approximately $92,000, $94,000 and $170,000 in fiscal 2015, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||
Director deferred stock units —The 2006 Plan and the 1999 Stock Plan authorize director deferred stock unit awards to non-employee directors. During fiscal 2015, directors could 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 279,540 shares and 683,380 shares deferred, but not delivered, as of February 28, 2015 and March 1, 2014, respectively, under the 2006 Plan and the 1999 Stock Plan. During the term of the 2006 Plan, all future deferred stock unit awards will be from shares available under the plan. During fiscal 2015, approximately 54,560 director deferred stock units were granted, 458,400 units were delivered and no units were cancelled. Compensation expense for the director deferred stock awards was $826,000, $821,000 and $700,000 in fiscal 2015, 2014 and 2013, 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 $465,000, $492,000 and $431,000 in fiscal years 2015, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||
Preferred Stock — As of February 28, 2015, 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 $21,627,000, $21,697,000 and $17,989,000 in fiscal years 2015, 2014 and 2013, respectively. On April 8, 2015, subsequent to year end, the Company announced a $0.07 per share quarterly cash dividend on the Company’s outstanding shares of common stock. The $0.07 quarterly cash dividend will be paid on May 6, 2015 to shareholders of record on April 22, 2015. | |||||||||||||||||||||||||||||
Shares reserved for future issuances — As of February 28, 2015, the Company had approximately 5,175,656 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 share repurchases during fiscal 2015, 2014 and 2013: | |||||||||||||||||||||||||||||
Shares Purchased | |||||||||||||||||||||||||||||
Date Program | Authorized | Date | Fiscal Year | Fiscal Year | Fiscal Year | Weighted | Remaining | ||||||||||||||||||||||
Announced | Amount | Completed | 2015 | 2014 | 2013 | Average | Available as of | ||||||||||||||||||||||
Cost | February 28, 2015 | ||||||||||||||||||||||||||||
Oct. 14, 2011 | $ | 100,000,000 | Dec. 14, 2012 | — | — | 5,822,142 | $ | 17.18 | $ | — | |||||||||||||||||||
Dec. 13, 2012 | 100,000,000 | Sep. 30, 2013 | — | 4,525,805 | — | 22.1 | — | ||||||||||||||||||||||
Oct. 18, 2013 | 200,000,000 | Apr. 10, 2014 | 5,071,812 | 5,262,452 | — | 19.35 | — | ||||||||||||||||||||||
Apr. 10, 2014 | 200,000,000 | 5,208,500 | — | — | 14.94 | 122,176,217 | |||||||||||||||||||||||
In fiscal 2015, the Company had cash outflows of $185,540,000 related to share repurchases. These share repurchases included $173,932,000 for shares of common stock repurchased in fiscal 2015 and included $11,600,000 for shares repurchased in fiscal 2014 that were settled in fiscal 2015. Subsequent to year end, through April 24, 2015, under the April 2014 $200,000,000 program, the Company utilized a total of $5,080,000 to repurchase 383,000 shares of the Company’s common stock at a weighted average price per share of $13.26 and $117,096,000 remained available for further repurchases under that program. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Income Taxes | NOTE 7 – INCOME TAXES | ||||||||||||
The components of income before taxes, by tax jurisdiction, were as follows (in thousands): | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Domestic | $ | 111,338 | $ | 165,658 | $ | 191,494 | |||||||
Foreign | 9,064 | 8,991 | 9,506 | ||||||||||
Income before income taxes | $ | 120,402 | $ | 174,649 | $ | 201,000 | |||||||
The provision for income taxes for each of the last three fiscal years consisted of (in thousands): | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Federal: | |||||||||||||
Current | $ | 30,771 | $ | 43,325 | $ | 45,797 | |||||||
Deferred | 5,620 | 16,311 | 15,635 | ||||||||||
State: | |||||||||||||
Current | 4,402 | 5,234 | 4,738 | ||||||||||
Deferred | 2,027 | (2,404 | ) | 4,293 | |||||||||
Foreign: | |||||||||||||
Current | 2,420 | 4,652 | 1,093 | ||||||||||
Deferred | — | — | — | ||||||||||
Total income tax provision | $ | 45,240 | $ | 67,118 | $ | 71,556 | |||||||
The differences between income taxes at the statutory federal income tax rate of 35% in fiscal 2015, 2014 and 2013, and income tax reported in the consolidated statements of operations were as follows (in thousands): | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Tax provision at statutory federal income tax rate | $ | 42,141 | $ | 61,127 | $ | 70,350 | |||||||
State income taxes, net of federal provision | 4,402 | 3,138 | 6,838 | ||||||||||
Decrease in valuation allowance | (224 | ) | (1,298 | ) | (1,034 | ) | |||||||
Foreign income taxes | 2,420 | 4,652 | 1,093 | ||||||||||
Foreign and other tax credits | (3,436 | ) | (5,444 | ) | (1,785 | ) | |||||||
Other, net | (63 | ) | 4,943 | (3,906 | ) | ||||||||
Provision for income taxes | $ | 45,240 | $ | 67,118 | $ | 71,556 | |||||||
Effective tax rate | 37.6 | % | 38.4 | % | 35.6 | % | |||||||
Deferred tax assets and liabilities at February 28, 2015 and March 1, 2014 were comprised of the following (in thousands): | |||||||||||||
2015 | 2014 | ||||||||||||
Deferred tax assets: | |||||||||||||
Deferred compensation | $ | 22,711 | $ | 21,490 | |||||||||
Net operating loss carryforward | 533 | 2,465 | |||||||||||
Accrued average rent | 11,540 | 10,140 | |||||||||||
Self insurance reserves | 10,855 | 10,717 | |||||||||||
Cumulative foreign currency translation | 4,310 | 2,971 | |||||||||||
Deferred revenue and revenue reserves | 6,375 | 3,825 | |||||||||||
Supplemental retirement plans | 2,227 | 1,788 | |||||||||||
Foreign and other tax credits | 2,931 | 5,667 | |||||||||||
Other | 1,845 | 1,382 | |||||||||||
Total deferred tax assets | 63,327 | 60,445 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Properties, net | (21,389 | ) | (10,483 | ) | |||||||||
Inventory | (22,231 | ) | (20,497 | ) | |||||||||
Store supplies | (3,942 | ) | (3,928 | ) | |||||||||
Deferred gain on debt repurchase | (14,716 | ) | (18,370 | ) | |||||||||
Other | (787 | ) | (451 | ) | |||||||||
Total deferred tax liabilities | (63,065 | ) | (53,729 | ) | |||||||||
Valuation allowance | (422 | ) | (646 | ) | |||||||||
Net deferred tax assets (1) | $ | (160 | ) | $ | 6,070 | ||||||||
-1 | The current portion of the Company’s deferred tax assets was included in prepaid expense and other current assets. For fiscal 2015, the current portion of deferred tax assets was $577 and related to state deferred tax assets. For fiscal 2014, the current portion of deferred tax assets was $4,154 and related to federal and state deferred tax assets. The current portion of deferred tax liabilities was $763 for fiscal 2015 and related to federal deferred tax liabilities. The current portion of deferred tax liabilities was included in other accrued liabilities. | ||||||||||||
Noncurrent deferred tax assets were included in other noncurrent assets. For fiscal 2015 and 2014, noncurrent deferred tax assets were $5,027 and $6,753, respectively, and related to state deferred tax assets. The noncurrent deferred tax liabilities were $5,001 and $4,837 for fiscal 2015 and 2014, respectively, and related to federal deferred tax liabilities. The noncurrent deferred tax liabilities were included in other noncurrent liabilities. | |||||||||||||
Deferred tax assets related to state net operating losses at February 28, 2015 and March 1, 2014, were $533,000 and $2,465,000, respectively. State loss carryforwards vary as to the carryforward period and will expire from fiscal 2016 through fiscal 2030. 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 $422,000 and $646,000 with respect to the deferred tax assets relating to these state tax credits as of February 28, 2015 and March 1, 2014, respectively. | |||||||||||||
The Company is subject to taxation in the United States and various state, provincial and local and foreign (primarily Canadian) jurisdictions. With few exceptions, as of fiscal 2015, the Company is no longer subject to U.S. federal or state examinations by tax authorities for years before fiscal 2013. Certain tax years prior to fiscal 2013 are subject to examination by certain foreign jurisdictions. Fiscal 2013 and 2014 are currently under examination by the Internal Revenue Service. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Unrecognized tax benefits — beginning balance | $ | 6,673 | $ | 2,194 | $ | 8,731 | |||||||
Gross increases — tax positions in prior period | 282 | 5,664 | 1,171 | ||||||||||
Gross decreases — tax positions in prior period | (1,458 | ) | — | (1,054 | ) | ||||||||
Settlements | (4,732 | ) | (1,185 | ) | (1,965 | ) | |||||||
Expiration of statute of limitations | — | — | (4,689 | ) | |||||||||
Unrecognized tax benefits — ending balance | $ | 765 | $ | 6,673 | $ | 2,194 | |||||||
As of February 28, 2015, the Company had total unrecognized tax benefits of $765,000, the majority of which would, if recognized, affect the Company’s effective tax rate. As March 1, 2014, the Company had unrecognized tax benefits of $6,673,000, the majority of which would not, if recognized, affect the Company’s effective tax rate. It is reasonably possible that most of the Company’s gross unrecognized tax benefits could decrease within the next twelve months primarily due to audit settlements. | |||||||||||||
Interest associated with unrecognized tax benefits is recorded in nonoperating (income) and expenses. Penalties associated with unrecognized tax benefits are recorded in selling, general and administrative expenses. During the second quarter of fiscal 2013, the Company reversed a portion of its reserve for uncertain tax positions, resulting in the reversal of $2,758,000 of accrued interest expense. Excluding this reversal of accrued interest in fiscal 2013, the Company recorded expenses for tax interest and penalties, net of refunds, of $3,000, $536,000 and $1,119,000 in fiscal 2015, 2014 and 2013, respectively. The Company had accrued penalties and interest of $389,000 and $1,787,000 at February 28, 2015 and March 1, 2014, respectively. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Commitments and Contingencies | NOTE 8 — COMMITMENTS AND CONTINGENCIES | ||||||||
Leases — At February 28, 2015, the Company had the following minimum lease commitments and future subtenant receipts in the years indicated (in thousands): | |||||||||
Fiscal Year | Operating | Subtenant | |||||||
Leases | Income | ||||||||
2016 | $ | 239,508 | $ | 447 | |||||
2017 | 217,520 | 447 | |||||||
2018 | 183,099 | 90 | |||||||
2019 | 146,694 | — | |||||||
2020 | 113,857 | — | |||||||
Thereafter | 372,091 | — | |||||||
Total lease commitments | $ | 1,272,769 | $ | 984 | |||||
Rental expense incurred was $263,276,000, $244,481,000 and $231,481,000, including contingent rentals of $508,000, $546,000 and $674,000, based upon a percentage of sales, and net of sublease incomes totaling $285,000, $285,000 and $278,000 in fiscal 2015, 2014 and 2013, respectively. | |||||||||
Legal matters — During fiscal years 2015, 2014 and 2013, there were various claims, lawsuits, inquiries and pending actions against the Company and its subsidiaries incident to the operations of its business. The Company considers these matters to be ordinary and routine in nature. The Company maintains liability insurance against most of these matters. It is the opinion of management, after consultation with counsel, that the ultimate resolution of such matters will not have a material adverse effect, either individually or in aggregate, on the Company’s consolidated financial position, results of operations or liquidity. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Selected Quarterly Financial Data | NOTE 9 — SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||
Summarized quarterly financial data for the years ended February 28, 2015 and March 1, 2014 are set forth below (in thousands except per share amounts): | |||||||||||||||||
Three Months Ended | |||||||||||||||||
Fiscal 2015 | 5/31/14 | 8/30/14 | 11/29/14 | 2/28/15 | |||||||||||||
Net sales | $ | 419,059 | $ | 418,622 | $ | 484,501 | $ | 543,600 | |||||||||
Gross profit | 167,714 | 162,637 | 204,913 | 214,442 | |||||||||||||
Operating income | 25,830 | 16,529 | 31,770 | 53,142 | |||||||||||||
Net income | 15,055 | 9,158 | 17,860 | 33,089 | |||||||||||||
Average shares outstanding — basic | 94,656 | 91,503 | 89,741 | 88,426 | |||||||||||||
Average shares outstanding — diluted | 95,925 | 92,531 | 90,635 | 89,421 | |||||||||||||
Basic earnings per share | 0.16 | 0.1 | 0.2 | 0.37 | |||||||||||||
Diluted earnings per share | 0.16 | 0.1 | 0.2 | 0.37 | |||||||||||||
Three Months Ended | |||||||||||||||||
Fiscal 2014 | 6/1/13 | 8/31/13 | 11/30/13 | 3/1/14 | |||||||||||||
Net sales | $ | 394,853 | $ | 395,641 | $ | 465,462 | $ | 515,786 | |||||||||
Gross profit | 167,597 | 161,299 | 202,230 | 214,436 | |||||||||||||
Operating income | 33,215 | 29,061 | 43,094 | 70,130 | |||||||||||||
Net income | 20,347 | 17,834 | 26,758 | 42,592 | |||||||||||||
Average shares outstanding — basic | 105,989 | 105,745 | 103,319 | 101,430 | |||||||||||||
Average shares outstanding — diluted | 107,790 | 107,249 | 104,716 | 103,024 | |||||||||||||
Basic earnings per share | 0.19 | 0.17 | 0.26 | 0.42 | |||||||||||||
Diluted earnings per share | 0.19 | 0.17 | 0.26 | 0.41 | |||||||||||||
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Organization | Organization — Pier 1 Imports, Inc. (together with its consolidated subsidiaries, the “Company”) is the original global importer of home décor and furniture. The Company directly imports merchandise from many countries, and sells a wide variety of decorative accessories, furniture, candles, housewares, gifts and seasonal products in its stores and through the Company’s website, pier1.com. Additionally, the Company sells merchandise primarily in “store within a store” locations in Mexico and El Salvador 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 2015, 2014 and 2013, respectively, the Company’s domestic operations provided 92.5%, 92.0% and 91.4% of its net sales, with 6.9%, 7.3% and 7.9% provided by stores in Canada, and the remainder from royalties received primarily from Sears Operadora de Mexico S.A. de C.V. As of February 28, 2015, March 1, 2014 and March 2, 2013, $4,707,000, $5,578,000 and $5,344,000, respectively, of the Company’s long-lived assets 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. | ||||||||||||
Reclassifications | Reclassifications — Certain items in these consolidated financial statements have been reclassified to conform to the current period presentation. | ||||||||||||
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 2015 ended February 28, 2015, fiscal 2014 ended March 1, 2014 and fiscal 2013 ended March 2, 2013. Both fiscal 2015 and 2014 consisted of 52-week years and fiscal 2013 was a 53-week year. | ||||||||||||
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 a trust to satisfy retirement obligations and are classified as non-current assets. As of February 28, 2015 and March 1, 2014, the Company’s short-term investments classified as cash equivalents included investments primarily in mutual funds totaling $69,572,000 and $121,446,000, 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 loss. As of February 28, 2015, March 1, 2014 and March 2, 2013, the Company had cumulative other comprehensive loss balances of $(7,425,000), $(3,696,000) and $(1,304,000), respectively, related to cumulative translation adjustments. The adjustments for currency translation during fiscal 2015, 2014 and 2013 resulted in other comprehensive loss, net of tax, as applicable, of $(3,729,000), $(2,391,000) and $(918,000), respectively. Deferred income taxes not recorded on the portion of the cumulative currency translation adjustment considered to be permanently reinvested abroad were immaterial in fiscal 2015, 2014 and 2013. | ||||||||||||
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, 14% derived from merchandise produced in India and 18% 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 February 28, 2015 or March 1, 2014. | ||||||||||||
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. | |||||||||||||
From time to time, the Company hedges certain commitments denominated in foreign currencies through the purchase of forward contracts. The forward contracts are purchased to cover a portion of commitments to buy merchandise for resale. The Company also, on occasion, uses contracts to hedge its exposure associated with the repatriation of funds from its Canadian operations. As of February 28, 2015 and March 1, 2014, there were no material outstanding contracts to hedge exposure associated with the Company’s merchandise purchases denominated in foreign currencies or the repatriation of Canadian funds. For financial accounting purposes, the Company does not designate such contracts as hedges. Thus, changes in the fair value of both types of forward contracts would be included in the Company’s consolidated statements of operations. The changes in fair value and settlement of these contracts were not material and were included in cost of sales for forward contracts related to merchandise purchases, and in selling, general and administrative expense for forward contracts associated with the repatriation of Canadian funds. | |||||||||||||
When the Company enters into forward foreign currency exchange contracts, it enters into them with major financial institutions and monitors its positions with, and the credit quality of, these counterparties to such financial instruments. | |||||||||||||
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. At the end of fiscal 2015, accounts receivable included $6.7 million related to life insurance settlement proceeds that were received during the first quarter of fiscal 2016. | ||||||||||||
Inventories | Inventories — The Company’s inventory is comprised of finished merchandise and is stated at the lower of weighted average cost or market value. Cost is calculated based upon the actual landed cost of an item at the time it is received in the Company’s distribution center using vendor invoices, the cost of warehousing and transporting merchandise to the stores and other direct costs associated with purchasing merchandise. | ||||||||||||
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 2015 and 2014 were $5,105,000 and $5,120,000, respectively. | |||||||||||||
Properties, maintenance and repairs | Properties, maintenance and repairs — 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. 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 related to the Company’s distribution and fulfillment centers, including related equipment, is included in cost of sales. All other depreciation costs are included in depreciation and amortization and were $46,304,000, $38,873,000 and $30,988,000 in fiscal 2015, 2014 and 2013, 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 and whenever an event or change in circumstances indicates that their carrying values may not be recoverable. If the carrying value exceeds the sum of the expected undiscounted cash flows, the assets are considered impaired. Impairment, if any, is recorded in the period in which the impairment occurred. The Company recorded no material impairment charges in fiscal 2015, 2014 or 2013. | |||||||||||||
Insurance provision | Insurance provision — The Company maintains insurance for workers’ compensation and general liability claims with deductibles of $1,000,000 per occurrence. 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 $22,845,000 and $20,480,000 at February 28, 2015 and March 1, 2014, respectively. The recorded liability for general liability claims and fees was $4,455,000 and $6,619,000 at February 28, 2015 and March 1, 2014, 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 reserves for estimated merchandise returns at the end of fiscal 2015 and 2014 were $2,859,000 and $2,748,000, respectively. The Company’s revenues are reported net of discounts and returns, net of sales tax and third-party credit card fees, and include wholesale sales and royalties received from Sears Operadora de Mexico S.A. de C.V. and Corporacion de Tiendas Internationales, S.A. de C.V. Amounts billed to customers for shipping and handling are included in net sales. | ||||||||||||
Cost of sales | Cost of sales — Cost of sales includes the cost of the merchandise, buying expenses, costs related to the Company’s distribution network (including depreciation) and store occupancy expenses. The costs incurred by the Company for shipping and handling are recorded in cost of sales. | ||||||||||||
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 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 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 $3,938,000, $4,455,000 and $4,348,000 in fiscal 2015, 2014 and 2013, respectively. | ||||||||||||
Leases | Leases — The Company leases certain property consisting principally of retail stores, warehouses, its home office and material handling and office equipment under operating leases expiring through fiscal 2029. 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 stores. The portion of rent expense applicable to a store before opening is included in selling, general and administrative 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 additional 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 were $81,483,000, $76,071,000 and $71,214,000 in fiscal 2015, 2014 and 2013, respectively. Prepaid advertising at the end of fiscal years 2015 and 2014 was $4,269,000 and $2,951,000, respectively. | ||||||||||||
Defined benefit plans | Defined benefit plans — The Company maintains supplemental retirement plans for certain of its current and 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 such as discount rates, compensation increase rates, or retirement dates used to determine the projected benefit obligation. Additionally, changes made to the provisions of the plans may impact current and future benefit costs. 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 remaining average service period 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. Deferred tax assets and liabilities are recorded in the Company’s consolidated balance sheet and are classified as current or noncurrent based on the classification of the related assets or liabilities for financial reporting purposes. 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 uncertain tax positions 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, 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): | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Net Income | $ | 75,162 | $ | 107,531 | $ | 129,444 | |||||||
Weighted average shares outstanding: | |||||||||||||
Basic | 91,081 | 104,121 | 106,222 | ||||||||||
Effect of dilutive stock options | 696 | 1,268 | 1,337 | ||||||||||
Effect of dilutive restricted stock | 351 | 859 | 700 | ||||||||||
Diluted | 92,128 | 106,248 | 108,259 | ||||||||||
Earnings per share: | |||||||||||||
Basic | $ | 0.83 | $ | 1.03 | $ | 1.22 | |||||||
Diluted | $ | 0.82 | $ | 1.01 | $ | 1.2 | |||||||
Outstanding stock options totaling 114,623 for fiscal 2015, 6,624 for fiscal 2014 and 961,575 for fiscal 2013 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 all companies to measure and recognize compensation expense at an amount equal to the fair value of share-based payments granted. 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 certain 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 portion of the performance-based shares vests 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 are based on a market condition and 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. | ||||||||||||
The Company estimates forfeitures based on its historical forfeiture experience, and adjusts forfeiture estimates based on actual forfeiture experience for all awards with service conditions. The effect of any forfeiture adjustments was insignificant. | |||||||||||||
Adoption of new accounting standards | Adoption of new accounting standards — In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers,” which creates a new Topic, Accounting Standards Codification Topic 606. The standard is principle-based and provides a five-step model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This standard is effective for the Company beginning in fiscal 2018 at the earliest, and allows for either full retrospective adoption or modified retrospective adoption. The Company is currently evaluating the impact of the adoption of Topic 606 on its financial statements. | ||||||||||||
In April 2015, the Financial Accounting Standards Board issued Accounting Standards Update 2015-03, “Interest — Imputation of Interest”. To simplify presentation of debt issuance costs, the amendments in this standard would require that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of debt, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs would not be affected by the amendments in this standard. This Accounting Standards Update is the final version of Proposed Accounting Standards Update 2014-250, “Interest — Imputation of Interest (Subtopic 835-30)”, which has been deleted. The standard is effective for the Company beginning in fiscal 2017. The Company is currently evaluating the impact of the adoption on its consolidated financial statements. |
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Calculation of Earnings per Share | Earnings per share amounts were calculated as follows (in thousands except per share amounts): | ||||||||||||
2015 | 2014 | 2013 | |||||||||||
Net Income | $ | 75,162 | $ | 107,531 | $ | 129,444 | |||||||
Weighted average shares outstanding: | |||||||||||||
Basic | 91,081 | 104,121 | 106,222 | ||||||||||
Effect of dilutive stock options | 696 | 1,268 | 1,337 | ||||||||||
Effect of dilutive restricted stock | 351 | 859 | 700 | ||||||||||
Diluted | 92,128 | 106,248 | 108,259 | ||||||||||
Earnings per share: | |||||||||||||
Basic | $ | 0.83 | $ | 1.03 | $ | 1.22 | |||||||
Diluted | $ | 0.82 | $ | 1.01 | $ | 1.2 |
Properties_Tables
Properties (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Summary of Properties | Properties are summarized as follows at February 28, 2015 and March 1, 2014 (in thousands): | ||||||||
2015 | 2014 | ||||||||
Land | $ | 535 | $ | 535 | |||||
Buildings | 8,087 | 8,087 | |||||||
Equipment, furniture, fixtures and other | 342,407 | 303,822 | |||||||
Leasehold improvements | 213,148 | 203,938 | |||||||
Computer software | 89,271 | 85,157 | |||||||
Projects in progress | 6,837 | 6,059 | |||||||
660,285 | 607,598 | ||||||||
Less accumulated depreciation and amortization | 446,237 | 424,246 | |||||||
Properties, net | $ | 214,048 | $ | 183,352 |
Other_Accrued_Liabilities_and_1
Other Accrued Liabilities and Noncurrent Liabilities (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Summary of Other Accrued Liabilities and Noncurrent Liabilities | The following is a summary of other accrued liabilities and noncurrent liabilities at February 28, 2015 and March 1, 2014 (in thousands): | ||||||||
2015 | 2014 | ||||||||
Accrued payroll and other employee-related liabilities | $ | 59,422 | $ | 46,275 | |||||
Accrued taxes, other than income | 23,160 | 20,568 | |||||||
Rent-related liabilities | 7,854 | 6,946 | |||||||
Other | 17,108 | 36,489 | |||||||
Other accrued liabilities | $ | 107,544 | $ | 110,278 | |||||
Rent-related liabilities | $ | 26,263 | $ | 23,444 | |||||
Deferred gains | 5,666 | 7,573 | |||||||
Retirement benefits | 41,791 | 42,050 | |||||||
Other | 5,658 | 5,655 | |||||||
Other noncurrent liabilities | $ | 79,378 | $ | 78,722 |
LongTerm_Debt_and_Available_Cr1
Long-Term Debt and Available Credit (Tables) | 12 Months Ended | ||||
Feb. 28, 2015 | |||||
Term loan Facility Maturity | The Term Loan Facility matures as follows (in thousands): | ||||
Fiscal Year | Amount | ||||
2016 | $ | 2,000 | |||
2017 | 2,000 | ||||
2018 | 2,000 | ||||
2019 | 2,000 | ||||
Thereafter | 191,000 | ||||
Total | 199,000 | ||||
Debt Discount | (1,754 | ) | |||
Total Debt | $ | 197,246 |
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
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 February 28, 2015 and March 1, 2014 (in thousands): | ||||||||||||
2015 | 2014 | ||||||||||||
Change in projected benefit obligation: | |||||||||||||
Projected benefit obligation, beginning of year | $ | 27,481 | $ | 25,573 | |||||||||
Service cost | 1,402 | 1,456 | |||||||||||
Interest cost | 823 | 765 | |||||||||||
Actuarial (gain) loss | 2,772 | (188 | ) | ||||||||||
Benefits paid (including settlements) | (7,707 | ) | (125 | ) | |||||||||
Curtailment | 633 | — | |||||||||||
Projected benefit obligation, end of year | $ | 25,404 | $ | 27,481 | |||||||||
Reconciliation of funded status: | |||||||||||||
Projected benefit obligation | $ | 25,404 | $ | 27,481 | |||||||||
Plan assets | — | — | |||||||||||
Funded status | $ | (25,404 | ) | $ | (27,481 | ) | |||||||
Accumulated benefit obligation | $ | (25,404 | ) | $ | (27,481 | ) | |||||||
Amounts recognized in the balance sheets: | |||||||||||||
Current liability | $ | (127 | ) | $ | (127 | ) | |||||||
Noncurrent liability | (25,277 | ) | (27,354 | ) | |||||||||
Accumulated other comprehensive loss, pre-tax | 4,361 | 4,724 | |||||||||||
Net amount recognized | $ | (21,043 | ) | $ | (22,757 | ) | |||||||
Cumulative other comprehensive loss, net of taxes of $3,121 and $3,261 in fiscal 2015 and 2014, respectively | $ | 1,240 | $ | 1,463 | |||||||||
Weighted average assumptions used to determine: | |||||||||||||
Benefit obligation, end of year: | |||||||||||||
Discount rate | 2.5 | % | 3 | % | |||||||||
Lump-sum conversion discount rate | 4 | % | 5 | % | |||||||||
Rate of compensation increase (1) | 3 | % | 0 | % | |||||||||
Net periodic benefit cost for years ended: | |||||||||||||
Discount rate | 2.5 | % | 3 | % | |||||||||
Lump-sum conversion discount rate | 4 | % | 5 | % | |||||||||
Rate of compensation increase | 0 | % | 3 | % | |||||||||
(1) | The rate of compensation increase shown above assumes an increase of 0% for fiscal year 2016 and 3% for fiscal years thereafter, except for the Company’s CEO. The CEO’s rate of compensation is set forth in his employment agreement. | ||||||||||||
Components of Net Periodic Benefit Cost | Net periodic benefit cost included the following actuarially determined components during fiscal 2015, 2014 and 2013 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. | ||||||||||||
2015 | 2014 | 2013 | |||||||||||
Service cost | $ | 1,402 | $ | 1,456 | $ | 1,353 | |||||||
Interest cost | 823 | 765 | 740 | ||||||||||
Amortization of unrecognized prior service cost | 410 | 410 | 410 | ||||||||||
Amortization of net actuarial loss | 1,329 | 1,392 | 1,408 | ||||||||||
Settlement | 1,248 | — | (488 | ) | |||||||||
Curtailment | 781 | — | — | ||||||||||
Net periodic benefit cost | $ | 5,993 | $ | 4,023 | $ | 3,423 |
Matters_Concerning_Shareholder1
Matters Concerning Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||||||||||||||
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: | ||||||||||||||||||||||||||||
Exercisable Shares | |||||||||||||||||||||||||||||
Shares | Weighted | Weighted | Number of | Weighted | |||||||||||||||||||||||||
Average | Average | Shares | Average | ||||||||||||||||||||||||||
Exercise | Fair Value | Exercise | |||||||||||||||||||||||||||
Price | at Date of | Price | |||||||||||||||||||||||||||
Grant | |||||||||||||||||||||||||||||
Outstanding at February 25, 2012 | 5,735,475 | $ | 12.16 | 5,620,525 | $ | 12.26 | |||||||||||||||||||||||
Options granted | 11,900 | 18.8 | $ | 14.75 | |||||||||||||||||||||||||
Options exercised | (1,545,500 | ) | 11.08 | ||||||||||||||||||||||||||
Options cancelled or expired | (713,750 | ) | 20.09 | ||||||||||||||||||||||||||
Outstanding at March 2, 2013 | 3,488,125 | 11.05 | 3,468,275 | 11.02 | |||||||||||||||||||||||||
Options granted | 13,248 | 23.19 | 6.7 | ||||||||||||||||||||||||||
Options exercised | (1,627,500 | ) | 12.9 | ||||||||||||||||||||||||||
Options cancelled or expired | (16,000 | ) | 17.28 | ||||||||||||||||||||||||||
Outstanding at March 1, 2014 | 1,857,873 | 9.45 | 1,830,900 | 9.31 | |||||||||||||||||||||||||
Options granted | 11,300 | 17.78 | 4.25 | ||||||||||||||||||||||||||
Options exercised | (187,625 | ) | 10.97 | ||||||||||||||||||||||||||
Options cancelled or expired | (233,000 | ) | 17.09 | ||||||||||||||||||||||||||
Outstanding at February 28, 2015 | 1,448,548 | 8.09 | 1,419,712 | 7.86 | |||||||||||||||||||||||||
Shares Outstanding by Ranges of Exercise Prices | |||||||||||||||||||||||||||||
For options outstanding at February 28, 2015 | Weighted | Weighted | |||||||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||||||
Remaining | Exercise Price- | ||||||||||||||||||||||||||||
Contractual | Exercisable | ||||||||||||||||||||||||||||
Life | Shares | ||||||||||||||||||||||||||||
Ranges of Exercise Prices | Total | Weighted | (in years) | Shares | |||||||||||||||||||||||||
Shares | Average | Currently | |||||||||||||||||||||||||||
Exercise | Exercisable | ||||||||||||||||||||||||||||
Price | |||||||||||||||||||||||||||||
$4.24 — $6.69 | 954,000 | $ | 6.66 | 1.99 | 954,000 | $ | 6.66 | ||||||||||||||||||||||
$7.45 — $11.27 | 286,500 | 7.63 | 2.29 | 286,500 | 7.63 | ||||||||||||||||||||||||
$11.47 — $17.78 | 177,900 | 14.37 | 1.07 | 164,950 | 14.17 | ||||||||||||||||||||||||
$18.49 — $23.19 | 30,148 | 20.68 | 6.34 | 14,262 | 19.71 | ||||||||||||||||||||||||
Share Repurchase Plan | The following table summarizes the Company’s total share repurchases during fiscal 2015, 2014 and 2013: | ||||||||||||||||||||||||||||
Shares Purchased | |||||||||||||||||||||||||||||
Date Program | Authorized | Date | Fiscal Year | Fiscal Year | Fiscal Year | Weighted | Remaining | ||||||||||||||||||||||
Announced | Amount | Completed | 2015 | 2014 | 2013 | Average | Available as of | ||||||||||||||||||||||
Cost | February 28, 2015 | ||||||||||||||||||||||||||||
Oct. 14, 2011 | $ | 100,000,000 | Dec. 14, 2012 | — | — | 5,822,142 | $ | 17.18 | $ | — | |||||||||||||||||||
Dec. 13, 2012 | 100,000,000 | Sep. 30, 2013 | — | 4,525,805 | — | 22.1 | — | ||||||||||||||||||||||
Oct. 18, 2013 | 200,000,000 | Apr. 10, 2014 | 5,071,812 | 5,262,452 | — | 19.35 | — | ||||||||||||||||||||||
Apr. 10, 2014 | 200,000,000 | 5,208,500 | — | — | 14.94 | 122,176,217 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Components of Income Before Taxes | The components of income before taxes, by tax jurisdiction, were as follows (in thousands): | ||||||||||||
2015 | 2014 | 2013 | |||||||||||
Domestic | $ | 111,338 | $ | 165,658 | $ | 191,494 | |||||||
Foreign | 9,064 | 8,991 | 9,506 | ||||||||||
Income before income taxes | $ | 120,402 | $ | 174,649 | $ | 201,000 | |||||||
Provision for Income Taxes | The provision for income taxes for each of the last three fiscal years consisted of (in thousands): | ||||||||||||
2015 | 2014 | 2013 | |||||||||||
Federal: | |||||||||||||
Current | $ | 30,771 | $ | 43,325 | $ | 45,797 | |||||||
Deferred | 5,620 | 16,311 | 15,635 | ||||||||||
State: | |||||||||||||
Current | 4,402 | 5,234 | 4,738 | ||||||||||
Deferred | 2,027 | (2,404 | ) | 4,293 | |||||||||
Foreign: | |||||||||||||
Current | 2,420 | 4,652 | 1,093 | ||||||||||
Deferred | — | — | — | ||||||||||
Total income tax provision | $ | 45,240 | $ | 67,118 | $ | 71,556 | |||||||
Income Tax Reported in Consolidated Statements of Operations | The differences between income taxes at the statutory federal income tax rate of 35% in fiscal 2015, 2014 and 2013, and income tax reported in the consolidated statements of operations were as follows (in thousands): | ||||||||||||
2015 | 2014 | 2013 | |||||||||||
Tax provision at statutory federal income tax rate | $ | 42,141 | $ | 61,127 | $ | 70,350 | |||||||
State income taxes, net of federal provision | 4,402 | 3,138 | 6,838 | ||||||||||
Decrease in valuation allowance | (224 | ) | (1,298 | ) | (1,034 | ) | |||||||
Foreign income taxes | 2,420 | 4,652 | 1,093 | ||||||||||
Foreign and other tax credits | (3,436 | ) | (5,444 | ) | (1,785 | ) | |||||||
Other, net | (63 | ) | 4,943 | (3,906 | ) | ||||||||
Provision for income taxes | $ | 45,240 | $ | 67,118 | $ | 71,556 | |||||||
Effective tax rate | 37.6 | % | 38.4 | % | 35.6 | % | |||||||
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities at February 28, 2015 and March 1, 2014 were comprised of the following (in thousands): | ||||||||||||
2015 | 2014 | ||||||||||||
Deferred tax assets: | |||||||||||||
Deferred compensation | $ | 22,711 | $ | 21,490 | |||||||||
Net operating loss carryforward | 533 | 2,465 | |||||||||||
Accrued average rent | 11,540 | 10,140 | |||||||||||
Self insurance reserves | 10,855 | 10,717 | |||||||||||
Cumulative foreign currency translation | 4,310 | 2,971 | |||||||||||
Deferred revenue and revenue reserves | 6,375 | 3,825 | |||||||||||
Supplemental retirement plans | 2,227 | 1,788 | |||||||||||
Foreign and other tax credits | 2,931 | 5,667 | |||||||||||
Other | 1,845 | 1,382 | |||||||||||
Total deferred tax assets | 63,327 | 60,445 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Properties, net | (21,389 | ) | (10,483 | ) | |||||||||
Inventory | (22,231 | ) | (20,497 | ) | |||||||||
Store supplies | (3,942 | ) | (3,928 | ) | |||||||||
Deferred gain on debt repurchase | (14,716 | ) | (18,370 | ) | |||||||||
Other | (787 | ) | (451 | ) | |||||||||
Total deferred tax liabilities | (63,065 | ) | (53,729 | ) | |||||||||
Valuation allowance | (422 | ) | (646 | ) | |||||||||
Net deferred tax assets (1) | $ | (160 | ) | $ | 6,070 | ||||||||
-1 | The current portion of the Company’s deferred tax assets was included in prepaid expense and other current assets. For fiscal 2015, the current portion of deferred tax assets was $577 and related to state deferred tax assets. For fiscal 2014, the current portion of deferred tax assets was $4,154 and related to federal and state deferred tax assets. The current portion of deferred tax liabilities was $763 for fiscal 2015 and related to federal deferred tax liabilities. The current portion of deferred tax liabilities was included in other accrued liabilities. | ||||||||||||
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | ||||||||||||
2015 | 2014 | 2013 | |||||||||||
Unrecognized tax benefits — beginning balance | $ | 6,673 | $ | 2,194 | $ | 8,731 | |||||||
Gross increases — tax positions in prior period | 282 | 5,664 | 1,171 | ||||||||||
Gross decreases — tax positions in prior period | (1,458 | ) | — | (1,054 | ) | ||||||||
Settlements | (4,732 | ) | (1,185 | ) | (1,965 | ) | |||||||
Expiration of statute of limitations | — | — | (4,689 | ) | |||||||||
Unrecognized tax benefits — ending balance | $ | 765 | $ | 6,673 | $ | 2,194 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Schedule of Minimum Lease Commitments and Future Subtenant Receipts | At February 28, 2015, the Company had the following minimum lease commitments and future subtenant receipts in the years indicated (in thousands): | ||||||||
Fiscal Year | Operating | Subtenant | |||||||
Leases | Income | ||||||||
2016 | $ | 239,508 | $ | 447 | |||||
2017 | 217,520 | 447 | |||||||
2018 | 183,099 | 90 | |||||||
2019 | 146,694 | — | |||||||
2020 | 113,857 | — | |||||||
Thereafter | 372,091 | — | |||||||
Total lease commitments | $ | 1,272,769 | $ | 984 |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Schedule of Quarterly Financial Data | Summarized quarterly financial data for the years ended February 28, 2015 and March 1, 2014 are set forth below (in thousands except per share amounts): | ||||||||||||||||
Three Months Ended | |||||||||||||||||
Fiscal 2015 | 5/31/14 | 8/30/14 | 11/29/14 | 2/28/15 | |||||||||||||
Net sales | $ | 419,059 | $ | 418,622 | $ | 484,501 | $ | 543,600 | |||||||||
Gross profit | 167,714 | 162,637 | 204,913 | 214,442 | |||||||||||||
Operating income | 25,830 | 16,529 | 31,770 | 53,142 | |||||||||||||
Net income | 15,055 | 9,158 | 17,860 | 33,089 | |||||||||||||
Average shares outstanding — basic | 94,656 | 91,503 | 89,741 | 88,426 | |||||||||||||
Average shares outstanding — diluted | 95,925 | 92,531 | 90,635 | 89,421 | |||||||||||||
Basic earnings per share | 0.16 | 0.1 | 0.2 | 0.37 | |||||||||||||
Diluted earnings per share | 0.16 | 0.1 | 0.2 | 0.37 | |||||||||||||
Three Months Ended | |||||||||||||||||
Fiscal 2014 | 6/1/13 | 8/31/13 | 11/30/13 | 3/1/14 | |||||||||||||
Net sales | $ | 394,853 | $ | 395,641 | $ | 465,462 | $ | 515,786 | |||||||||
Gross profit | 167,597 | 161,299 | 202,230 | 214,436 | |||||||||||||
Operating income | 33,215 | 29,061 | 43,094 | 70,130 | |||||||||||||
Net income | 20,347 | 17,834 | 26,758 | 42,592 | |||||||||||||
Average shares outstanding — basic | 105,989 | 105,745 | 103,319 | 101,430 | |||||||||||||
Average shares outstanding — diluted | 107,790 | 107,249 | 104,716 | 103,024 | |||||||||||||
Basic earnings per share | 0.19 | 0.17 | 0.26 | 0.42 | |||||||||||||
Diluted earnings per share | 0.19 | 0.17 | 0.26 | 0.41 |
Description_of_Business_and_Su3
Description of Business and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 | |
Segment | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Number of operating segment | 1 | ||
Short-term investments classified as cash equivalents | $69,572,000 | $121,446,000 | |
Cumulative other comprehensive income (loss) related to translation adjustments | -7,425,000 | -3,696,000 | -1,304,000 |
Adjustments for currency translation resulted in other comprehensive income (loss), net of tax | -3,729,000 | -2,391,000 | -918,000 |
Assets or liabilities with a fair value significantly different from the recorded value | 0 | 0 | |
Life insurance proceeds received | 6,700,000 | ||
Reserves for estimated shrinkage of inventory | 5,105,000 | 5,120,000 | |
Depreciation and amortization cost | 46,304,000 | 38,873,000 | 30,988,000 |
Impairment charges | 0 | 0 | 0 |
Workers compensation and general liability claims deductible | 1,000,000 | ||
Workers compensation liability | 22,845,000 | 20,480,000 | |
General liability insurance claims not settled | 4,455,000 | 6,619,000 | |
Reserves for estimated merchandise returns | 2,859,000 | 2,748,000 | |
Gift card breakage recognition period from original issuance, months | 0 months | ||
Gift card breakage recognized | 3,938,000 | 4,455,000 | 4,348,000 |
Operating lease expiring year | 2029 | ||
Number of years leased | 10 years | ||
Advertising costs | 81,483,000 | 76,071,000 | 71,214,000 |
Prepaid advertising | 4,269,000 | 2,951,000 | |
Stock options and unvested restricted stock excluded from computation of earnings per share | 114,623 | 6,624 | 961,575 |
Minimum | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Number of years leased | 5 years | ||
Maximum | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Number of years leased | 10 years | ||
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 | ||
CANADA | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Long-lived assets | 4,707,000 | 5,578,000 | 5,344,000 |
MEXICO | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Long-lived assets | 0 | 0 | 0 |
EL SALVADOR | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Long-lived assets | 0 | 0 | 0 |
Foreign exchange contract | Long | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Material outstanding contracts to hedge exposure associated with merchandise purchases | $0 | $0 | |
Sales Revenue, Net | Product Concentration Risk | UNITED STATES | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 92.50% | 92.00% | 91.40% |
Sales Revenue, Net | Product Concentration Risk | CANADA | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 6.90% | 7.30% | 7.90% |
Sales Revenue, Product Line | Geographic Concentration Risk | CHINA | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 59.00% | ||
Sales Revenue, Product Line | Geographic Concentration Risk | INDIA | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 14.00% | ||
Sales Revenue, Product Line | Geographic Concentration Risk | Vietnam Indonesia And United States | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 18.00% |
Calculation_of_Earnings_Per_Sh
Calculation of Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Nov. 29, 2014 | Aug. 30, 2014 | 31-May-14 | Mar. 01, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | Jun. 01, 2013 | Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 |
Earnings Per Share Disclosure [Line Items] | |||||||||||
Net income | $33,089 | $17,860 | $9,158 | $15,055 | $42,592 | $26,758 | $17,834 | $20,347 | $75,162 | $107,531 | $129,444 |
Basic | 88,426 | 89,741 | 91,503 | 94,656 | 101,430 | 103,319 | 105,745 | 105,989 | 91,081 | 104,121 | 106,222 |
Diluted | 89,421 | 90,635 | 92,531 | 95,925 | 103,024 | 104,716 | 107,249 | 107,790 | 92,128 | 106,248 | 108,259 |
Basic | $0.37 | $0.20 | $0.10 | $0.16 | $0.42 | $0.26 | $0.17 | $0.19 | $0.83 | $1.03 | $1.22 |
Diluted | $0.37 | $0.20 | $0.10 | $0.16 | $0.41 | $0.26 | $0.17 | $0.19 | $0.82 | $1.01 | $1.20 |
Employee Stock Option | |||||||||||
Earnings Per Share Disclosure [Line Items] | |||||||||||
Effect of dilutive stock | 696 | 1,268 | 1,337 | ||||||||
Restricted Stock Awards | |||||||||||
Earnings Per Share Disclosure [Line Items] | |||||||||||
Effect of dilutive stock | 351 | 859 | 700 |
Summary_of_Properties_Detail
Summary of Properties (Detail) (USD $) | Feb. 28, 2015 | Mar. 01, 2014 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Land | $535 | $535 |
Buildings | 8,087 | 8,087 |
Equipment, furniture, fixtures and other | 342,407 | 303,822 |
Leasehold improvements | 213,148 | 203,938 |
Computer software | 89,271 | 85,157 |
Projects in progress | 6,837 | 6,059 |
Properties, gross | 660,285 | 607,598 |
Less accumulated depreciation and amortization | 446,237 | 424,246 |
Properties, net | $214,048 | $183,352 |
Properties_Additional_Informat
Properties - Additional Information (Detail) (USD $) | 12 Months Ended | |
Feb. 28, 2015 | Mar. 01, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Net proceeds from sale of properties | $12,379,000 | |
Lease term | 10 years | |
Gain on the sale of property | 7,338,000 | |
Remaining deferred gain on sale of property | $5,572,000 | $6,358,000 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Lease term | 5 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Lease term | 10 years |
Summary_of_Other_Accrued_Liabi
Summary of Other Accrued Liabilities and Noncurrent Liabilities (Detail) (USD $) | Feb. 28, 2015 | Mar. 01, 2014 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities And Other Non Current Liabilities [Line Items] | ||
Accrued payroll and other employee-related liabilities | $59,422 | $46,275 |
Accrued taxes, other than income | 23,160 | 20,568 |
Rent-related liabilities | 7,854 | 6,946 |
Other | 17,108 | 36,489 |
Other accrued liabilities | 107,544 | 110,278 |
Rent-related liabilities | 26,263 | 23,444 |
Deferred gains | 5,666 | 7,573 |
Retirement benefits | 41,791 | 42,050 |
Other | 5,658 | 5,655 |
Other noncurrent liabilities | $79,378 | $78,722 |
LongTerm_Debt_and_Available_Cr2
Long-Term Debt and Available Credit - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 | |
Debt Instrument [Line Items] | |||
Industrial revenue bonds outstanding | $197,246,000 | ||
Weighted average effective interest rate | 1.70% | 1.90% | 2.40% |
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 17.5% | 350,000,000 | ||
Fixed charge coverage less than 30% | 350,000,000 | ||
Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Weighted average effective interest rate | 5.00% | ||
Credit facility , maximum borrowing capacity | 200,000,000 | ||
Borrowings outstanding | 199,000,000 | ||
Term loan facility, maturity date | 30-Apr-21 | ||
Amount of notes payable | 197,246,000 | ||
Term loan facility, quarterly amortization of principal amount of loans | 0.25% | ||
Prepayment penalty rate | 1.00% | ||
Fair Value, Inputs, Level 2 | Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Fair value of term loan facility | 199,000,000 | ||
LIBOR | Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Basis points | 3.50% | ||
Interest floor rate | 1.00% | ||
Base Rate | Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Basis points | 2.50% | ||
Interest floor rate | 2.00% | ||
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Credit facility , maximum borrowing capacity | 350,000,000 | ||
Credit facility accordion feature | 100,000,000 | ||
Potential increase to credit facility | 450,000,000 | ||
Credit facility, maturity date | 2018-06 | ||
Borrowings outstanding | 0 | 0 | |
Remaining borrowing | 311,931,000 | ||
Revolving credit facility | LIBOR | Minimum | |||
Debt Instrument [Line Items] | |||
Basis points | 1.25% | ||
Revolving credit facility | LIBOR | Maximum | |||
Debt Instrument [Line Items] | |||
Basis points | 1.75% | ||
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 | 0.75% | ||
Standby letters of credit | |||
Debt Instrument [Line Items] | |||
Commitment fee | 1.25% | ||
Borrowings outstanding | 1,644,000 | ||
Standby letters of credit | Workers' Compensation And General Liability Insurance Policies | |||
Debt Instrument [Line Items] | |||
Borrowings outstanding | 20,250,000 | ||
Standby letters of credit | Minimum | |||
Debt Instrument [Line Items] | |||
Basis points | 1.25% | ||
Standby letters of credit | Maximum | |||
Debt Instrument [Line Items] | |||
Basis points | 1.75% | ||
Trade letter of credit | |||
Debt Instrument [Line Items] | |||
Commitment fee | 0.63% | ||
Trade letter of credit | Minimum | |||
Debt Instrument [Line Items] | |||
Basis points | 0.63% | ||
Trade letter of credit | Maximum | |||
Debt Instrument [Line Items] | |||
Basis points | 0.88% | ||
Letters of Credit And Bankers' Acceptances | |||
Debt Instrument [Line Items] | |||
Credit facility borrowing base | 393,248,000 | ||
Trade Letters Of Credit And Bankers Acceptances | |||
Debt Instrument [Line Items] | |||
Borrowings outstanding | 38,069,000 | ||
Other Miscellaneous Standby Letters Of Credit | |||
Debt Instrument [Line Items] | |||
Borrowings outstanding | 6,460,000 | ||
Industrial Revenue Bonds | |||
Debt Instrument [Line Items] | |||
Industrial revenue bonds, maturity date | 2026 | ||
Industrial revenue bonds outstanding | 9,500,000 | 9,500,000 | |
Borrowings outstanding | $9,715,000 |
Term_Loan_Facility_Maturity_De
Term Loan Facility Maturity (Detail) (USD $) | Feb. 28, 2015 |
In Thousands, unless otherwise specified | |
Debt Instrument [Line Items] | |
2016 | $2,000 |
2017 | 2,000 |
2018 | 2,000 |
2019 | 2,000 |
Thereafter | 191,000 |
Total | 199,000 |
Debt Discount | -1,754 |
Total Debt | $197,246 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum age eligibility, years | 18 years | ||
Minimum employment period for eligibility, months | 6 months | ||
Company matching contribution | 3.00% | 3.00% | 3.00% |
Contributions by Company to the plan | $2,455,000 | $2,071,000 | $2,119,000 |
Interest bearing investments included in other noncurrent assets | 17,000 | 17,000 | |
Benefit payments expected in fiscal 2016 | 127,000 | ||
Benefit payments expected in fiscal 2017 | 127,000 | ||
Benefit payments expected in fiscal 2018 | 127,000 | ||
Benefit payments expected in fiscal 2019 | 27,111,000 | ||
Benefit payments expected in fiscal 2020 | 134,000 | ||
Benefit payments expected during fiscal years 2021 through 2025 | 1,218,000 | ||
Amounts of cumulative other comprehensive loss not recognized as components of net periodic benefit cost related to prior service cost | 178,000 | 736,000 | |
Amounts of cumulative other comprehensive loss not recognized as components of net periodic benefit cost related to net actuarial gain | 4,183,000 | 3,988,000 | |
Net actuarial gain (loss) recognized in other comprehensive income | -2,772,000 | 188,000 | -854,000 |
Estimated amortization of prior service cost from cumulative other comprehensive loss into net periodic cost in 2016 | 59,000 | ||
Estimated amortization of net actuarial loss from cumulative other comprehensive loss into net periodic cost in 2016 | 1,394,000 | ||
Chief Financial Officer | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Retirement benefit payment | 7,573,981 | ||
Death benefit plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Value of unrestricted policies | 19,927,000 | 26,362,000 | |
Life insurance policies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Value of unrestricted policies | 13,096,000 | 18,068,000 | |
Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employees contribution for Company match | 1.00% | 1.00% | 1.00% |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employees contribution for Company match | 5.00% | 5.00% | 5.00% |
Nonqualified deferred compensation plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company's expense for the plans | 1,269,000 | 1,381,000 | 1,051,000 |
Cash contributions to trust | 3,192,000 | 1,715,000 | |
Restricted investments sold to fund retirement benefits | 3,196,000 | 758,000 | |
Cash surrender values of life insurance policies | 5,736,000 | 6,728,000 | |
Nonqualified deferred compensation plans | Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest bearing investments included in other noncurrent assets | 10,571,000 | 6,673,000 | |
Nonqualified deferred compensation plans | Death benefit plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Death benefits of life insurance policy | 11,336,000 | 13,127,000 | |
Supplemental Employee Retirement Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company's expense for the plans | $5,993,000 | $4,023,000 | $3,423,000 |
Reconciliation_of_Benefit_Obli
Reconciliation of Benefit Obligations and Funded Status of Plans (Detail) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 | ||
Change in projected benefit obligation: | |||||
Projected benefit obligation, beginning of year | $27,481 | $25,573 | |||
Service cost | 1,402 | 1,456 | 1,353 | ||
Interest cost | 823 | 765 | 740 | ||
Actuarial (gain) loss | 2,772 | -188 | |||
Benefits paid (including settlements) | -7,707 | -125 | |||
Curtailment | 633 | ||||
Projected benefit obligation, end of year | 25,404 | 27,481 | 25,573 | ||
Reconciliation of funded status: | |||||
Projected benefit obligation | 25,404 | 27,481 | 25,573 | ||
Plan assets | 0 | 0 | |||
Funded status | -25,404 | -27,481 | |||
Accumulated benefit obligation | -25,404 | -27,481 | |||
Amounts recognized in the balance sheets: | |||||
Current liability | -127 | -127 | |||
Noncurrent liability | -25,277 | -27,354 | |||
Accumulated other comprehensive loss, pre-tax | 4,361 | 4,724 | |||
Net amount recognized | -21,043 | -22,757 | |||
Cumulative other comprehensive loss, net of taxes of $3,121 and $3,261 in fiscal 2015 and 2014, respectively | $1,240 | $1,463 | |||
Benefit obligation, end of year: | |||||
Discount rate | 2.50% | 3.00% | |||
Lump-sum conversion discount rate | 4.00% | 5.00% | |||
Rate of compensation increase | 3.00% | [1] | 0.00% | [1] | |
Net periodic benefit cost for years ended: | |||||
Discount rate | 2.50% | 3.00% | |||
Lump-sum conversion discount rate | 4.00% | 5.00% | |||
Rate of compensation increase | 0.00% | 3.00% | |||
[1] | The rate of compensation increase shown above assumes an increase of 0% for fiscal year 2016 and 3% for fiscal years thereafter, except for the Company's CEO. The CEO's rate of compensation is set forth in his employment agreement. |
Reconciliation_of_Benefit_Obli1
Reconciliation of Benefit Obligations and Funded Status of Plans (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Feb. 28, 2015 | Mar. 01, 2014 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Cumulative other comprehensive loss, taxes | $3,121 | $3,261 |
Anticipated increase for fiscal years, 2016 | 0.00% | |
Anticipated increase for fiscal years, thereafter | 3.00% |
Components_of_Net_Periodic_Ben
Components of Net Periodic Benefit Costs (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $1,402 | $1,456 | $1,353 |
Interest cost | 823 | 765 | 740 |
Amortization of unrecognized prior service cost | 410 | 410 | 410 |
Amortization of net actuarial loss | 1,329 | 1,392 | 1,408 |
Settlement | 1,248 | -488 | |
Curtailment | 781 | ||
Net periodic benefit cost | $5,993 | $4,023 | $3,423 |
Matters_Concerning_Shareholder2
Matters Concerning Shareholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||||||
Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 | Apr. 08, 2015 | Apr. 24, 2015 | Jun. 13, 2012 | Feb. 25, 2012 | Mar. 23, 2006 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Prior period authorized aggregate number of shares available for issuance | 5,175,656 | |||||||
Vesting rights | The Company began expensing these shares during fiscal 2015. Each officerbs shares will vest one half on October 16, 2019, and the remaining shares will vest on October 16, 2020, provided that the officer is employed on each respective vesting date. | |||||||
Recorded stock-based compensation expense | $92,000 | $94,000 | $170,000 | |||||
Total unrecognized compensation expense related to unvested stock option awards | 144,000 | |||||||
Weighted average period for recognizing unrecognized compensation expense, in years | 2 years | |||||||
Realized tax benefit related to stock-based compensation | 5,856,000 | 3,993,000 | 7,605,000 | |||||
Excess tax benefit related to stock-based compensation | 2,694,000 | 2,265,000 | 4,814,000 | |||||
Outstanding options exercisable | 1,419,712 | 1,830,900 | 3,468,275 | 5,620,525 | ||||
Weighted average remaining contractual term for outstanding options, in years | 2 years | |||||||
Weighted average remaining contractual term for exercisable options, in years | 1 year 10 months 24 days | |||||||
Aggregate intrinsic value for outstanding options | 6,420,000 | |||||||
Aggregate intrinsic value for exercisable options | 6,419,000 | |||||||
Total intrinsic value of options exercised | 1,101,000 | 16,380,000 | 13,420,000 | |||||
Percentage of matching contribution to annual retainer fees deferred | 25.00% | |||||||
Compensation expense for director deferred stock awards | 826,000 | 821,000 | 700,000 | |||||
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 | 465,000 | 492,000 | 431,000 | |||||
Cash dividends paid | 21,627,000 | 21,697,000 | 17,989,000 | |||||
Common stock, dividends, per share | $0.24 | $0.21 | $0.17 | |||||
Dividends payable, date of record | 22-Apr-15 | |||||||
Dividends payable, date to be paid | 6-May-15 | |||||||
Payment for repurchased shares | 185,540,000 | 192,284,000 | 100,000,000 | |||||
Common stock repurchased under Share repurchase plan | 173,932,000 | 11,600,000 | ||||||
Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Percentage of associate contribution to stock purchase plan | 20.00% | |||||||
Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, dividends, per share | $0.07 | |||||||
Share Repurchase Program April 2014 | Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Payment for repurchased shares | 5,080,000 | |||||||
Common stock repurchased under Share repurchase plan | 383,000 | |||||||
Weighted Average Cost | $13.26 | |||||||
Amount remained for repurchase | 117,096,000 | |||||||
Authorized amount for share repurchase | 200,000,000 | |||||||
Restated Certificate Of Incorporation [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Preferred stock, restated certificate of incorporation authorized | 20,000,000 | |||||||
Par value of preferred stock | $1 | |||||||
Preferred stock issued, shares | 0 | |||||||
Restricted Stock Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares of restricted stock that will be awarded during fiscal years 2014 | 1,125,000 | |||||||
Weighted average grant date fair value | $16.04 | |||||||
Shares awarded | 633,852 | |||||||
Unvested shares of restricted stock awards outstanding | 1,025,638 | 823,826 | ||||||
Awards other than options vested in period | 272,041 | |||||||
Awards other than options forfeited in period | 159,999 | |||||||
Recorded stock-based compensation expense | 7,240,000 | 11,890,000 | 12,167,000 | |||||
Total unrecognized compensation expense related to unvested stock option awards | 15,020,000 | |||||||
Weighted average period for recognizing unrecognized compensation expense, in years | 2 years | |||||||
Total fair value of awards vested | 7,098,000 | 17,810,000 | 15,339,000 | |||||
Restricted Stock Awards | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Term from date of grant, years | 3 years | |||||||
Time-Based Restricted Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares of restricted stock that will be awarded during fiscal years 2014 | 540,000 | |||||||
Weighted average grant date fair value | 15.58 | |||||||
Performance Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares of restricted stock that will be awarded during fiscal years 2014 | 585,000 | |||||||
Weighted average grant date fair value | $18.69 | |||||||
Expense per share | $9.94 | |||||||
Recorded stock-based compensation expense | $3,200,000 | $1,475,000 | ||||||
Performance Shares | Second Portion | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Weighted average grant date fair value | $17.78 | |||||||
Performance Shares | Third Portion | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expense per share | $9.04 | |||||||
Time-Based Long-Term Incentive Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
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% | |||||||
Vesting period, years | 3 years | |||||||
Performance-Based Long-Term Incentive Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Weighted average grant date fair value | $18.69 | |||||||
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% | |||||||
Vesting period, years | 3 years | |||||||
Performance-Based Long-Term Incentive Awards | First Portion | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Weighted average grant date fair value | $17.78 | |||||||
Service-Based Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Weighted average grant date fair value | $12.30 | |||||||
Shares awarded | 122,280 | |||||||
Employment Inducement Award | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Outstanding options exercisable | 944,000 | |||||||
Director Deferred Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares awarded | 54,560 | |||||||
Stock units delivered | 458,400 | |||||||
2006 Stock Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Prior period authorized aggregate number of shares available for issuance | 447,563 | 1,500,000 | ||||||
Outstanding options exercisable | 305,700 | 405,400 | ||||||
Deferred compensation arrangement shares deferred, but not delivered | 279,540 | |||||||
2006 Stock Incentive Plan | Time-Based Long-Term Incentive Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Expense per share | $17.78 | |||||||
2006 Stock Incentive Plan | Employee Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Term from date of grant, years | 10 years | |||||||
Vesting period, years | 4 years | |||||||
Outstanding options exercisable | 170,000 | 481,500 | ||||||
1999 Stock Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Prior period authorized aggregate number of shares available for issuance | 560,794 | |||||||
Deferred compensation arrangement shares deferred, but not delivered | 683,380 | |||||||
1999 Stock Plan | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Prior period authorized aggregate number of shares available for issuance | 11,186,150 |
Summary_of_Stock_Option_Grants
Summary of Stock Option Grants (Detail) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding, Shares, Beginning Balance | 1,857,873 | 3,488,125 | 5,735,475 |
Options granted, Shares | 11,300 | 13,248 | 11,900 |
Options exercised, Shares | -187,625 | -1,627,500 | -1,545,500 |
Options cancelled or expired, Shares | -233,000 | -16,000 | -713,750 |
Options Outstanding, Shares, Ending Balance | 1,448,548 | 1,857,873 | 3,488,125 |
Options outstanding, Weighted Average Exercise Price, Beginning Balance | $9.45 | $11.05 | $12.16 |
Options granted, Weighted Average Exercise Price | $17.78 | $23.19 | $18.80 |
Options exercised, Weighted Average Exercise Price | $10.97 | $12.90 | $11.08 |
Options cancelled or expired, Weighted Average Exercise Price | $17.09 | $17.28 | $20.09 |
Options outstanding, Weighted Average Exercise Price, Ending Balance | $8.09 | $9.45 | $11.05 |
Options outstanding, Exercisable Shares, Number of Shares, Beginning Balance | 1,830,900 | 3,468,275 | 5,620,525 |
Options granted, Weighted Average Fair Value at Date of Grant | $4.25 | $6.70 | $14.75 |
Options outstanding, Exercisable Shares, Number of Shares, Ending Balance | 1,419,712 | 1,830,900 | 3,468,275 |
Options outstanding, Exercisable Shares, Weighted Average Exercise Price, Beginning Balance | $9.31 | $11.02 | $12.26 |
Options outstanding, Exercisable Shares, Weighted Average Exercise Price, Ending Balance | $7.86 | $9.31 | $11.02 |
Shares_Outstanding_by_Ranges_o
Shares Outstanding by Ranges of Exercise Prices (Detail) (USD $) | 12 Months Ended |
Feb. 28, 2015 | |
$4.24 - $6.69 | |
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 | $6.69 |
Total Shares | 954,000 |
Weighted Average Exercise Price | $6.66 |
Weighted Average Remaining Contractual Life (in years) | 1 year 11 months 27 days |
Shares Currently Exercisable | 954,000 |
Weighted Average Exercise Price- Exercisable Shares | $6.66 |
$7.45 - $11.27 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Shares outstanding, Ranges of Exercise Prices, Lower Range Limit | $7.45 |
Shares outstanding, Ranges of Exercise Prices, Upper Range Limit | $11.27 |
Total Shares | 286,500 |
Weighted Average Exercise Price | $7.63 |
Weighted Average Remaining Contractual Life (in years) | 2 years 3 months 15 days |
Shares Currently Exercisable | 286,500 |
Weighted Average Exercise Price- Exercisable Shares | $7.63 |
$11.47 - $17.78 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Shares outstanding, Ranges of Exercise Prices, Lower Range Limit | $11.47 |
Shares outstanding, Ranges of Exercise Prices, Upper Range Limit | $17.78 |
Total Shares | 177,900 |
Weighted Average Exercise Price | $14.37 |
Weighted Average Remaining Contractual Life (in years) | 1 year 26 days |
Shares Currently Exercisable | 164,950 |
Weighted Average Exercise Price- Exercisable Shares | $14.17 |
$18.49 - $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 | $18.49 |
Shares outstanding, Ranges of Exercise Prices, Upper Range Limit | $23.19 |
Total Shares | 30,148 |
Weighted Average Exercise Price | $20.68 |
Weighted Average Remaining Contractual Life (in years) | 6 years 4 months 2 days |
Shares Currently Exercisable | 14,262 |
Weighted Average Exercise Price- Exercisable Shares | $19.71 |
Share_Repurchase_Plan_Detail
Share Repurchase Plan (Detail) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 | |
Equity, Class of Treasury Stock [Line Items] | |||
Shares Purchased | 173,932,000 | 11,600,000 | |
Stock Repurchase Program 1 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Date Announced | 14-Oct-11 | ||
Authorized Amount | 100,000,000 | ||
Date Completed | 14-Dec-12 | ||
Shares Purchased | 5,822,142 | ||
Weighted Average Cost | 17.18 | ||
Stock Repurchase Program 2 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Date Announced | 13-Dec-12 | ||
Authorized Amount | 100,000,000 | ||
Date Completed | 30-Sep-13 | ||
Shares Purchased | 4,525,805 | ||
Weighted Average Cost | 22.1 | ||
Stock Repurchase Program 3 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Date Announced | 18-Oct-13 | ||
Authorized Amount | 200,000,000 | ||
Date Completed | 10-Apr-14 | ||
Shares Purchased | 5,071,812 | 5,262,452 | |
Weighted Average Cost | 19.35 | ||
Stock Repurchase Program 4 | |||
Equity, Class of Treasury Stock [Line Items] | |||
Date Announced | 10-Apr-14 | ||
Authorized Amount | 200,000,000 | ||
Shares Purchased | 5,208,500 | ||
Weighted Average Cost | 14.94 | ||
Remaining | 122,176,217 |
Components_of_Income_Before_Ta
Components of Income Before Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 |
Income Tax [Line Items] | |||
Income before income taxes, Domestic | $111,338 | $165,658 | $191,494 |
Income before income taxes, Foreign | 9,064 | 8,991 | 9,506 |
Income before income taxes | $120,402 | $174,649 | $201,000 |
Provision_Benefit_for_Income_T
Provision (Benefit) for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 |
Components Of Income Tax Expense Benefit [Line Items] | |||
Federal, Current | $30,771 | $43,325 | $45,797 |
Federal, Deferred | 5,620 | 16,311 | 15,635 |
State, Current | 4,402 | 5,234 | 4,738 |
State, Deferred | 2,027 | -2,404 | 4,293 |
Foreign, Current | 2,420 | 4,652 | 1,093 |
Foreign, Deferred | 0 | 0 | 0 |
Provision for income taxes | $45,240 | $67,118 | $71,556 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
Aug. 31, 2013 | Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 | Feb. 25, 2012 | |
Income Taxes [Line Items] | |||||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% | ||
State net operating loss | $533,000 | $2,465,000 | |||
Unrecognized tax benefits | 765,000 | 6,673,000 | 2,194,000 | 8,731,000 | |
Unrecognized tax benefits, reversal of accrued interest expense | 2,758,000 | ||||
Unrecognized tax benefits, income tax penalties and interest | 3,000 | 536,000 | 1,119,000 | ||
Unrecognized tax benefits, income tax penalties and interest accrued | 389,000 | 1,787,000 | |||
Federal | |||||
Income Taxes [Line Items] | |||||
Deferred tax liabilities, noncurrent | 5,001 | 4,837 | |||
State | |||||
Income Taxes [Line Items] | |||||
Deferred tax assets, noncurrent | 5,027 | 6,753 | |||
State net operating loss | 533,000 | 2,465,000 | |||
Valuation allowance, deferred tax assets | $422,000 | $646,000 | |||
State | Minimum | |||||
Income Taxes [Line Items] | |||||
State net operating loss carryforwards expiration year | 2016 | ||||
State | Maximum | |||||
Income Taxes [Line Items] | |||||
State net operating loss carryforwards expiration year | 2030 |
Income_Tax_Reported_in_Consoli
Income Tax Reported in Consolidated Statements of Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 |
Reconciliation Of Income Taxes [Line Items] | |||
Tax provision at statutory federal income tax rate | $42,141 | $61,127 | $70,350 |
State income taxes, net of federal provision | 4,402 | 3,138 | 6,838 |
Decrease in valuation allowance | -224 | -1,298 | -1,034 |
Foreign income taxes | 2,420 | 4,652 | 1,093 |
Foreign and other tax credits | -3,436 | -5,444 | -1,785 |
Other, net | -63 | 4,943 | -3,906 |
Provision for income taxes | $45,240 | $67,118 | $71,556 |
Effective tax rate | 37.60% | 38.40% | 35.60% |
Deferred_Tax_Assets_and_Liabil
Deferred Tax Assets and Liabilities (Detail) (USD $) | Feb. 28, 2015 | Mar. 01, 2014 | ||
In Thousands, unless otherwise specified | ||||
Components Of Deferred Income Tax Assets And Liabilities [Line Items] | ||||
Deferred compensation | $22,711 | $21,490 | ||
Net operating loss carryforward | 533 | 2,465 | ||
Accrued average rent | 11,540 | 10,140 | ||
Self insurance reserves | 10,855 | 10,717 | ||
Cumulative foreign currency translation | 4,310 | 2,971 | ||
Deferred revenue and revenue reserves | 6,375 | 3,825 | ||
Supplemental retirement plans | 2,227 | 1,788 | ||
Foreign and other tax credits | 2,931 | 5,667 | ||
Other | 1,845 | 1,382 | ||
Total deferred tax assets | 63,327 | 60,445 | ||
Properties, net | -21,389 | -10,483 | ||
Inventory | -22,231 | -20,497 | ||
Store supplies | -3,942 | -3,928 | ||
Deferred gain on debt repurchase | -14,716 | -18,370 | ||
Other | -787 | -451 | ||
Total deferred tax liabilities | -63,065 | -53,729 | ||
Valuation allowance | -422 | -646 | ||
Net deferred tax assets | ($160) | [1] | $6,070 | [1] |
[1] | The current portion of the Company's deferred tax assets was included in prepaid expense and other current assets. For fiscal 2015, the current portion of deferred tax assets was $577 and related to state deferred tax assets. For fiscal 2014, the current portion of deferred tax assets was $4,154 and related to federal and state deferred tax assets. The current portion of deferred tax liabilities was $763 for fiscal 2015 and related to federal deferred tax liabilities. The current portion of deferred tax liabilities was included in other accrued liabilities. |
Deferred_Tax_Assets_and_Liabil1
Deferred Tax Assets and Liabilities (Parenthetical) (Detail) (USD $) | Feb. 28, 2015 | Mar. 01, 2014 |
In Thousands, unless otherwise specified | ||
Components Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Deferred tax assets net current | $577 | |
Federal | ||
Components Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Deferred tax liabilities, current | 763 | |
State | ||
Components Of Deferred Income Tax Assets And Liabilities [Line Items] | ||
Deferred tax assets net current | $4,154 |
Reconciliation_of_Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits - beginning balance | $6,673,000 | $2,194,000 | $8,731,000 |
Gross increases - tax positions in prior period | 282,000 | 5,664,000 | 1,171,000 |
Gross decreases - tax positions in prior period | -1,458,000 | -1,054,000 | |
Settlements | -4,732,000 | -1,185,000 | -1,965,000 |
Expiration of statute of limitations | -4,689,000 | ||
Unrecognized tax benefits - ending balance | $765,000 | $6,673,000 | $2,194,000 |
Schedule_of_Minimum_Lease_Comm
Schedule of Minimum Lease Commitments and Future Subtenant Receipts (Detail) (USD $) | Feb. 28, 2015 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
Operating Leases, 2016 | $239,508 |
Operating Leases, 2017 | 217,520 |
Operating Leases, 2018 | 183,099 |
Operating Leases, 2019 | 146,694 |
Operating Leases, 2020 | 113,857 |
Operating Leases, Thereafter | 372,091 |
Total lease commitments | 1,272,769 |
Subtenant Income, 2016 | 447 |
Subtenant Income, 2017 | 447 |
Subtenant Income, 2018 | 90 |
Subtenant Income, 2019 | 0 |
Subtenant Income, 2020 | 0 |
Subtenant Income, Thereafter | 0 |
Total lease commitments | $984 |
Recovered_Sheet1
Commitments And Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Rental expense | $263,276,000 | $244,481,000 | $231,481,000 |
Contingent rentals expense | 508,000 | 546,000 | 674,000 |
Sublease incomes | $285,000 | $285,000 | $278,000 |
Schedule_of_Quarterly_Financia
Schedule of Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Nov. 29, 2014 | Aug. 30, 2014 | 31-May-14 | Mar. 01, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | Jun. 01, 2013 | Feb. 28, 2015 | Mar. 01, 2014 | Mar. 02, 2013 |
Selected Quarterly Financial Data [Line Items] | |||||||||||
Net sales | $543,600 | $484,501 | $418,622 | $419,059 | $515,786 | $465,462 | $395,641 | $394,853 | $1,865,782 | $1,771,743 | $1,704,885 |
Gross profit | 214,442 | 204,913 | 162,637 | 167,714 | 214,436 | 202,230 | 161,299 | 167,597 | 749,706 | 745,563 | 743,059 |
Operating income | 53,142 | 31,770 | 16,529 | 25,830 | 70,130 | 43,094 | 29,061 | 33,215 | 127,271 | 175,500 | 198,986 |
Net income | $33,089 | $17,860 | $9,158 | $15,055 | $42,592 | $26,758 | $17,834 | $20,347 | $75,162 | $107,531 | $129,444 |
Average shares outstanding - basic | 88,426 | 89,741 | 91,503 | 94,656 | 101,430 | 103,319 | 105,745 | 105,989 | 91,081 | 104,121 | 106,222 |
Average shares outstanding - diluted | 89,421 | 90,635 | 92,531 | 95,925 | 103,024 | 104,716 | 107,249 | 107,790 | 92,128 | 106,248 | 108,259 |
Basic earnings per share | $0.37 | $0.20 | $0.10 | $0.16 | $0.42 | $0.26 | $0.17 | $0.19 | $0.83 | $1.03 | $1.22 |
Diluted earnings per share | $0.37 | $0.20 | $0.10 | $0.16 | $0.41 | $0.26 | $0.17 | $0.19 | $0.82 | $1.01 | $1.20 |