IMPAIRMENT CHARGES

The following table reflects asset impairment charges for the periods presented:



	Three Months Ended				Six Months Ended
(in thousands)	March 27, 2014		March 28, 2013		March 27, 2014		March 28, 2013
Operating stores	$	907	$	237	$	1,649	$	1,612
Surplus properties	—		643		87		1,567
Total impairment charges	$	907	$	880	$	1,736	$	3,179

Operating Stores. We test our operating stores for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. We compared the carrying amount of these operating store assets to their estimated future undiscounted cash flows to determine recoverability. If the sum of the estimated undiscounted cash flows did not exceed the carrying value, we then estimated the fair value of these operating stores to measure the impairment, if any. We recorded impairment charges related to operating stores detailed in the table above. There were no operating stores classified as held for sale as of March 27, 2014 and September 26, 2013.

Surplus Properties. We test our surplus properties for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Periodically management determines that certain surplus properties should be classified as held for sale because of a change in facts and circumstances, including increased marketing and bid activity. We estimate the fair value of these and other surplus properties where events or changes in circumstances indicated, based on marketing and bid activity, that the carrying amount of the assets may not be recoverable. Based on these estimates, we determined that the carrying values of certain surplus properties exceeded fair value resulting in the impairment charges detailed above. Surplus properties classified as held for sale and included in prepaid expenses and other current assets on the accompanying Condensed Consolidated Balance Sheets were $4.7 million as of March 27, 2014 and September 26, 2013.

The impairment evaluation process requires management to make estimates and assumptions with regard to fair value. Actual values may differ significantly from these estimates. Such differences could result in future impairment that could have a material impact on our consolidated financial statements.

Refer to Note 9, Fair Value Measurements, for additional information regarding the determination of fair value.