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IMPAIRMENTS
9 Months Ended
Nov. 02, 2013
IMPAIRMENTS  
IMPAIRMENTS

NOTE 14—IMPAIRMENTS

 

During the third quarter of fiscal 2013, the Company recorded a $2.0 million impairment charge related to 10 stores classified as held and used.  The impairment charge includes $0.9 million for three owned store locations which will be closed and marketed for sale before the end of fiscal 2013.  As the Company continues to operate these stores into the fourth quarter of fiscal 2013, the related assets are classified as “held for use” at November 2, 2013.  Of the $2.0 million impairment charge, $0.9 million was charged to costs of merchandise sales, and $1.1 million was charged to costs of service revenue. In the third quarter of fiscal 2012, the Company recorded an $8.8 million impairment charge related to 35 stores classified as held and used. Of the $8.8 million impairment charge, $4.2 million was charged to costs of merchandise sales, and $4.6 million was charged to costs of service revenue. In both periods, the Company used a probability-weighted approach and estimates of expected future cash flows to determine the fair value of these stores. Discount and growth rate assumptions were derived from current economic conditions, management’s expectations and projected trends of current operating results. The remaining fair value of the impaired stores is approximately $2.0 million as of November 2, 2013 and is classified as a Level 2 or 3 measure within the fair value hierarchy.