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 First quarter Ended
	(In thousands)
	May 4, 2013		April 28, 2012
Impairment charges from continuing operations	$	861	$	1,464
Impairment charges from discontinued operations		—		25

Total impairment charges	$	861	$	1,489


	May 4, 2013		April 28, 2012
	(In thousands)
Carrying value of assets tested for impairment	$	4,208	$	13,497

Carrying value of assets with impairment	$	1,714	$	2,826

Fair value of assets impaired	$	853	$	1,337


Number of stores tested for impairment		75		119

Number of stores with impairment		14		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 $0.9 million and $1.5 million, respectively, during the quarters ended May 4, 2013 and April 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 May 4, 2013, is recoverable.