IMPAIRMENT OF LONG-LIVED ASSETS

The Company assesses long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of such assets (or asset group) may not be recoverable. Based on management’s review of the historical operating performance, including sales trends, gross margin rates, current cash flows from operations and the projected outlook for each of the Company’s stores, the Company determined that certain stores would not be able to generate sufficient cash flows over the remaining term of the related leases to recover the Company’s investment in the respective stores. As a result, the Company recorded the following non-cash impairment charges related to its retail stores within the accompanying Condensed Consolidated Statements of Operations and Comprehensive Operations, to write-down the carrying value of its long-lived store assets to their estimated fair values.



	For the Second Quarter Ended				For the First Half Ended
	(In thousands)
	August 3, 2013		July 28, 2012		August 3, 2013		July 28, 2012
Impairment charges from continuing operations	$	570	$	1,038	$	1,431	$	2,502
Impairment charges from discontinued operations	—		104		—		129
Total impairment charges	$	570	$	1,142	$	1,431	$	2,631



	August 3, 2013		July 28, 2012
	(In thousands)
Carrying value of assets tested for impairment	$	2,650	$	9,016
Carrying value of assets with impairment	$	1,203	$	1,955
Fair value of assets impaired	$	633	$	813
Number of stores tested for impairment	60		116
Number of stores with impairment	12		23

The long-lived assets disclosed above that were written down to their respective fair values consisted primarily of leasehold improvements, furniture, fixtures and equipment. The Company recognized impairment charges of $0.6 million and $1.1 million, respectively, during the quarters ended August 3, 2013 and July 28, 2012 and $1.4 million and $2.6 million, respectively, during the first half ended August 3, 2013 and July 28, 2012. The decrease in the number of stores tested for impairment year-over-year was primarily related to the Company’s closure of certain underperforming stores in fiscal 2012. Based on historical operating performance and the projected outlook for these stores, the Company believes that the remaining asset value of approximately $1 million, as of August 3, 2013, is recoverable. Additionally, the Company wrote off approximately $1 million of excess store fixtures in the second quarter of fiscal 2012.