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IMPAIRMENTS
9 Months Ended
Oct. 31, 2015
IMPAIRMENTS  
IMPAIRMENTS

NOTE 12—IMPAIRMENTS

 

During the third quarter of fiscal 2015, the Company recorded a $0.8 million impairment charge related to 1 store classified as held and used. Of the $0.8 million impairment charge, $0.5 million was charged to costs of merchandise sales, and $0.3 million was charged to costs of service revenue. In the third quarter of fiscal 2014, the Company recorded a $1.4 million impairment charge related to 10 stores classified as held and used. Of the $1.4 million impairment charge, $0.3 million was charged to costs of merchandise sales, and $1.1 million was charged to costs of service revenue. In both periods, 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 store is approximately $1.6 million as of October 31, 2015 and is classified as a Level 2 or 3 measure within the fair value hierarchy.

 

During the first nine months of fiscal 2015, the Company recorded a $3.3 million impairment of which $1.6 million was charged to costs of merchandise sales, and $1.7 million was charged to costs of service revenue. In the first nine months of fiscal 2014, the Company recorded a $5.2 million impairment charge of which $1.8 million was charged to costs of merchandise sales, and $3.5 million was charged to costs of service revenue. In all periods, 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 $3.4 million as of October 31, 2015 and is classified as a Level 2 or 3 measure within the fair value hierarchy.