Lease termination and impairment charges consist of amounts and number of locations as follows:

	Thirteen Week Period Ended

	May 28, 2011		May 29, 2010
Impairment charges	$	734	$	1,134
Facility and equipment lease exit charges		16,356		12,323

	$	17,090	$	13,457

Impairment charges:
Number of Stores		14		16
Number of Distribution Centers		—		—

		14		16

Lease exit charges:
Number of Stores		3		8
Number of Distribution Centers		—		—

		3		8

These amounts include the write-down of long-lived assets at locations that were assessed for impairment because of management's intention to relocate or close the location, or because of changes in circumstances that indicated the carrying value of an asset may not be recoverable.

Charges to close a store, which principally consist of lease termination costs, are recorded at the time the store is closed and all inventory is liquidated, pursuant to the guidance set forth in ASC 420, "Exit or Disposal Cost Obligations." The Company calculates the liability for closed stores on a store-by-store basis. The calculation includes the discounted effect of future minimum lease payments and related ancillary costs, from the date of closure to the end of the remaining lease term, net of estimated cost recoveries that may be achieved through subletting or favorable lease terminations. The Company evaluates these assumptions each quarter and adjusts the liability accordingly.

As part of our ongoing business activities, the Company assesses stores and distribution centers for potential closure. Decisions to close stores or distribution centers in future periods would result in charges for lease exit costs and liquidation of inventory, as well as impairment of assets at these locations. The following table reflects the closed store and distribution center charges that relate to new closures, changes in assumptions and interest accretion:

		Thirteen Week Period Ended

		May 28, 2011			May 29, 2010
Balance—beginning of period		$	405,350		$	412,654
	Provision for present value of noncancellable lease payments of closed stores		864			5,492
	Changes in assumptions about future sublease income, terminations and changes in interest rates		9,363			857
	Interest accretion		6,944			6,855
	Cash payments, net of sublease income		(26,078	)		(27,607	)

Balance—end of period		$	396,443		$	398,251

The Company's revenues and income (loss) before income taxes for the thirteen week periods ended May 28, 2011 and May 29, 2010 include results from stores that have been closed or are approved for closure as of May 28, 2011. The revenue and income (loss) before income taxes of these stores for the periods are presented as follows:

	Thirteen Week Period Ended

	May 28, 2011			May 29, 2010
Revenues	$	17,216		$	67,027
Operating expenses		19,312			75,818
Gain from sale of assets		(5,149	)		(1,049	)
Other expenses		304			1,252
Income (loss) before income taxes		2,749			(8,994	)
Included in these stores' income (loss) before income taxes are:
Depreciation and amortization		137			778
Inventory liquidation charges		397			1,641

The above results are not necessarily indicative of the impact that these closures will have on revenues and operating results of the Company in the future, as the Company often transfers the business of a closed store to another Company store, thereby retaining a portion of these revenues.

The Company prioritizes inputs used in measuring the fair value of its nonfinancial assets and liabilities into a hierarchy of three levels: Level 1—quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2—inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3—unobservable inputs in which little or no market activity exists, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing.

Long-lived assets are measured at fair value on a nonrecurring basis for purposes of calculating impairment using Level 2 and Level 3 inputs as defined in the fair value hierarchy. The fair value of long-lived assets using Level 2 inputs is determined by evaluating the current economic conditions in the geographic area for similar use assets. The fair value of long-lived assets using Level 3 inputs is determined by estimating the amount and timing of net future cash flows and discounting them using a risk-adjusted rate of interest. The Company estimates future cash flows based on its experience and knowledge of the market in which the store is located.

The table below sets forth by level within the fair value hierarchy the long-lived assets as of the impairment measurement date for which an impairment assessment was performed and total losses for the thirteen week periods ended May 28, 2011 and May 29, 2010, respectively.

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Values as of Impairment Date		Total Losses Thirteen week period ended May 28, 2011

Long-lived assets held and used	$	—	$	—	$	1,484	$	1,484	$	(734	)
Long-lived assets held for sale		—		—		—		—		—

Total	$	—	$	—	$	1,484	$	1,484	$	(734	)

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Values as of Impairment Date		Total Losses Thirteen week period ended May 29, 2010

Long-lived assets held and used	$	—	$	—	$	282	$	282	$	(1,134	)
Long-lived assets held for sale		—		—		—		—		—

Total	$	—	$	—	$	282	$	282	$	(1,134	)