Impairment of Long-Lived Assets

6 Months Ended

Jul. 30, 2011

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

8. Impairment of Long-Lived Assets

If facts and circumstances indicate that a long-lived asset may be impaired, the carrying value is reviewed. If this review indicates that the carrying value of the asset will not be recovered as determined based on projected undiscounted cash flows related to the asset over its remaining life, the carrying value of the asset is reduced to its estimated fair value.  Non-cash impairment losses related to leasehold improvements and fixtures and equipment at 21 underperforming stores totaled $1.6 million in the twenty-six and thirteen week periods ended July 30, 2011.  There were no impairment losses in the twenty-six and thirteen week periods ended July 31, 2010.  There are an additional 16 stores with asset carrying values totaling $1.6 million that will require close monitoring in future quarters due to having projected undiscounted cash flows that are just slightly above asset carrying values.  Impairment losses in the future are dependent on a number of factors such as site selection and general economic trends on a localized, regional or national basis, and thus could be significantly different from historical results. To the extent the Company’s estimates for net sales, gross profit and store expenses are not realized, future assessments of recoverability could result in additional impairment charges.