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 Consolidated Statements of Operations and Comprehensive Operations, to write-down the carrying value of its long-lived store assets to their estimated fair values.



	Fourth Quarter Ended				Fiscal Year Ended
	(Unaudited)
	(In thousands)
	February 1, 2014		February 2, 2013		February 1, 2014		February 2, 2013		January 28, 2012
Impairment charges from continuing operations	$	1,168	$	1,242	$	3,190	$	5,174	$	8,698
Impairment charges from discontinued operations	5		26		14		167		6,089
Total impairment charges	$	1,173	$	1,268	$	3,204	$	5,341	$	14,787



	February 1, 2014		February 2, 2013
	(In thousands)
Carrying value of assets tested for impairment	$	3,661	$	6,612
Carrying value of assets with impairment	$	1,500	$	1,673
Fair value of assets impaired	$	327	$	405
Number of stores tested for impairment	56		99
Number of stores with impairment	12		25

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 $1.2 million and $1.3 million, respectively, during the fourth fiscal quarters ended February 1, 2014 and February 2, 2013, respectively, and $3.2 million, $5.3 million and $14.8 million, during the fiscal years ended February 1, 2014, February 2, 2013 and January 28, 2012, respectively. The decrease in the number of stores tested for impairment year-over-year was primarily related to the Company’s recent closure of certain underperforming stores and the improved financial performance of the remaining store base. Based on historical operating performance and the projected outlook for a subset of the stores tested for impairment as of February 1, 2014, the Company believes that the remaining asset value of approximately $0.3 million, is recoverable.