Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, and is a market-based measurement based on assumptions of the market participants. As a basis for these assumptions, we classify fair value measurements under the following fair value hierarchy:

The fair value of our long-term debt is based on the current interest rates offered for debt of the same maturities, thus a level 1 measurement.

Financial assets and liabilities, held under certain deferred compensation arrangements, are measured at fair value on a recurring basis, using quoted prices in active markets, thus a level 1 measurement.

In addition to the financial assets and liabilities that are measured at fair value on a recurring basis, we measure certain assets and liabilities at fair value on a nonrecurring basis, including, long-lived assets that have been reduced to fair value when they are held for sale and long-lived assets that are written down to fair value when they are impaired. We evaluate the carrying amount of long-lived assets held and used in the business, periodically and when events and circumstances warrant such a review to ascertain if any assets have been impaired. The carrying amount of a long-lived asset or asset group is considered impaired when the carrying value of the asset or asset group exceeds the expected future cash flows from the asset or asset group. The impairment loss recognized is the excess of the carrying value of the asset or asset group over its fair value, based on a discounted cash flow analysis using a discount rate determined by management, and is recorded within in SG&A. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs. The inputs to determine the fair value are considered level 3 measurements.

As a result of our definitive agreement to sell Mimi's Café for $50,000, we determined indicators of impairment existed during the third quarter of fiscal 2013 for our held for sale asset group. We used a market-approached valuation and performed a recoverability test and determined that undiscounted cash flows of the long-lived asset group were less than the carrying amount of the long-lived asset group. Using the specifics of the definitive sales agreement and the discount rate of 12%, we determined the impairment on the net book value of $22,667.

The following table represents impairments for those assets remeasured to fair value on a non-recurring basis during the fiscal year:

			(in thousands)
			Impairments					Impairments
			Three Months Ended					Nine Months Ended
			Jan. 25, 2013			Jan. 27, 2012		Jan. 25, 2013			Jan. 27, 2012
Assets held for use
	Bob Evans Restaurants	$	2,371	¹	$	-	$	3,598	²	$	2,806	³
	BEF Foods		-			-		-			87
Assets held for sale			2,167	⁴		-		2,167	⁴		-


¹ $1,717 relates to impairment of three underperforming restaurants and $654 relates to the impairment of five nonoperating property, plant and equipment locations

² $1,717 relates to impairment of three underperforming restaurants and $1,881 relates to the impairment of six nonoperating property, plant and equipment locations

³ $600 relates to one underperforming location and $2,206 related to impairment of nonoperating restaurant property, plant and equipment

⁴ $2,167 relates to three underperforming locations

Adjusted fair values of non-financial held for use assets measured at fair value on a non-recurring basis and still held at January 25, 2013 were not material. The adjusted fair value as of the impairment date of the net book value of assets held for sale was $125,555.