Asset Impairments

9 Months Ended

Oct. 02, 2011

Asset Impairments [Abstract]

Asset Impairments

7. Asset Impairments:

During the three months ended October 2, 2011, we recognized asset impairment charges of approximately $1.3 million related to three of our stores we continue to operate and during the three months ended October 3, 2010, we recognized asset impairment charges of approximately $0.9 million related to three stores we continue to operate. The asset impairment charges were the result of the adverse impact of various economic factors in the markets in which these stores operate, which resulted in a decline in the stores financial performance. Based on these factors, we determined that the impaired stores' forecasted cash flows were insufficient to recover the carrying amount of their long-lived assets. Asset impairments represent adjustments we recorded to write down the carrying amount of the property and equipment at these stores to their estimated fair value.

Our estimate of cash flows used to determine the fair value was developed from the highest and best use of the store from the perspective of market participants, which could differ from the basis of our own internal expectations of the store's future cash flows. Accordingly, the inputs to the fair value measurement of the stores we recognized as an impairment charge were classified within Level 3 of the fair value hierarchy. For more information regarding fair value measurement, refer to Note 1 "Fair Value Disclosures" to our consolidated financial statements in our Annual Report on Form 10-K for our fiscal year ended January 2, 2011, filed on February 24, 2011.