3. 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
	February 2, 2013		January 28, 2012		February 2, 2013		January 28, 2012		January 29, 2011
(In thousands)
Impairment charges from continuing operations	$	1,268	$	1,619	$	5,202	$	8,788	$	10,773
Impairment charges from discontinued operations		—		338		139		5,999		4,838

Total impairment charges	$	1,268	$	1,957	$	5,341	$	14,787	$	15,611


	February 2, 2013		January 28, 2012
Carrying value of assets tested for impairment	$	6,612	$	15,335

Carrying value of assets with impairment	$	1,673	$	3,059

Fair value of assets impaired	$	405	$	1,102

Number of stores tested for impairment		99		127

Number of stores with impairment		25		28

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 $1.3 million and $2.0 million, respectively, during the fourth fiscal quarters ended February 2, 2013 and January 28, 2012, respectively, and $5.3 million, $14.8 million and $15.6 million, during the fiscal years ended February 2, 2013, January 28, 2012 and January 29, 2011, 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 2, 2013, the Company believes that the remaining asset value of approximately $5 million, is recoverable.