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IMPAIRMENTS
3 Months Ended
May 04, 2013
IMPAIRMENTS  
IMPAIRMENTS

NOTE 12—IMPAIRMENTS

 

During the first quarter of fiscal 2013, the Company recorded a $1.2 million impairment charge related to 7 stores classified as held and used. Of the $1.2 million impairment charge, $0.2 million was charged to costs of merchandise sales, and $1.0 million was charged to costs of service revenue. The Company used a probability-weighted approach and estimates of expected future cash flows to determine the fair value of these stores. Discount and growth rate assumptions were derived from current economic conditions, management’s expectations and projected trends of current operating results. The remaining fair value of the impaired stores is approximately $0.4 million and is classified as a Level 2 or 3 measure within the fair value hierarchy.