Impairments

We evaluate the carrying amount of long-lived assets periodically and when events and circumstances warrant such a review. A long-lived asset group that is held and used is considered impaired when the carrying value of the asset group exceeds the expected future cash flows from the asset group. The impairment loss recognized is the excess of carrying value above its fair value. Assets classified as held for sale on our Consolidated Balance Sheets are considered impaired when their fair value, less costs to sell, is determined to be lower than their carrying value.

The estimation of fair value requires significant estimates of factors in future restaurant performance and market-based real estate appraisals. To estimate fair value for locations where we own the land and building, we obtain appraisals from third party real estate valuation firms based on sales of comparable properties in the same area as our restaurant location, which approximates fair value and is considered a level 2 measurement. We use discounted future cash flows to estimate fair value for long-lived assets for our leased locations. Our weighted average cost of capital is used as the discount rate in our fair value measurements for leased locations, which is considered a Level 3 measurement. A reasonable change in this discount rate would not have a significant impact on these fair value measurements.

In fiscal 2016 we incurred pretax impairment charges of $8,384 in the Bob Evans Restaurant segment. This included $6,710 of charges related to our decision to close 27 underperforming restaurants and $1,674 of charges related for nonoperating properties whose fair values were determined to be less than their carrying values. These charges were recorded on the impairments line in the Consolidated Statement of Net Income.

In fiscal 2015 we incurred pretax impairment charges of $6,100 in the Bob Evans Restaurant segment. This included $2,851 of charges related to our decision to close 20 underperforming restaurants in fiscal 2016, and $3,249 of charges as a result of adverse performance and a reassessment of expected future cash flows at ten current and former restaurant locations. These charges were recorded on the impairments line in the Consolidated Statement of Net Income.

In fiscal 2014 we recorded $16,850 of impairment charges, including $9,380 related to an agreement to sell 29 former locations, $4,133 on seven additional restaurant locations due as a result of adverse store performance and $3,000 related to the closure of our production facility in Richardson, Texas. These charges are recorded on the impairments line in the Consolidated Statement of Net Income.

The following table represents impairments for those assets re-measured to fair value on a nonrecurring basis during the fiscal year:



(in thousands)	2016			2015			2014
Bob Evans Restaurants
Assets held and used	$	3,316	⁽¹⁾	$	3,442	⁽³⁾	$	4,470	⁽⁵⁾
Assets held for sale	$	5,068	⁽²⁾	$	2,658	⁽⁴⁾	$	9,380	⁽⁶⁾
BEF Foods
Assets held for sale				—			$	3,000	⁽⁷⁾


(1)	Relates to six operating and two nonoperating properties


(2)	Relates to 13 operating and five nonoperating properties


(3)	Relates to 11 operating and two nonoperating properties


(4)	Relates to eight operating and one nonoperating properties


(5)	$4,133 and $337 relates to impairment of seven operating properties and certain commercial vehicles, respectively


(6)	$9,380 relates to impairment of 29 nonoperating properties, of which $714 relates to the impairment of one property no longer classified as held for sale


(7)	$3,000 relates to impairment of one nonoperating property