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 First Quarter Ended
	(In thousands)
	May 3, 2014		May 4, 2013
Impairment charges from continuing operations	$	783	$	861



	May 3, 2014		May 4, 2013
	(In thousands)
Carrying value of assets tested for impairment	$	4,028	$	4,208
Carrying value of assets with impairment	$	1,024	$	1,714
Fair value of assets impaired	$	241	$	853
Number of stores tested for impairment	54		75
Number of stores with impairment	17		14

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 $0.8 million and $0.9 million, respectively, during the first quarters ended May 3, 2014 and May 4, 2013. 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 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 May 3, 2014, the Company believes that the remaining asset value of approximately $0.2 million, is recoverable. See Note 10, "Fair Value Measurements" for further discussion related to impairment of long-lived assets.