4. 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 Third Quarter Ended				For the Three Quarters Ended
	(In thousands)
	October 27, 2012		October 29, 2011		October 27, 2012		October 29, 2011
Impairment charges from continuing operations	$	533	$	4,457	$	3,164	$	9,575
Impairment charges from discontinued operations		—		2,588		—		3,254

Total impairment charges	$	533	$	7,045	$	3,164	$	12,829


	October 27, 2012		October 29, 2011
	(In thousands)
Carrying value of assets tested for impairment	$	6,726	$	24,845

Carrying value of assets with impairment	$	1,023	$	8,939

Fair value of assets impaired	$	490	$	1,894

Number of stores tested for impairment		101		221

Number of stores with impairment		17		64

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 $0.5 million and $7.0 million, respectively, during the quarters ended October 27, 2012 and October 29, 2011 and $3.2 million and $12.8 million, respectively, during the first three quarters ended October 27, 2012 and October 29, 2011. 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. Based on historical operating performance and the projected outlook for these stores, the Company believes that the remaining asset value of approximately $6 million, as of October 27, 2012, is recoverable. Additionally, the Company wrote off approximately $0.9 million of excess store fixtures in the first three quarters of fiscal 2012.