Impairment of Long-Lived Assets

3 Months Ended

Apr. 30, 2011

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

Note 2. Impairment of Long-Lived Assets

During our quarterly reviews for impairment in the first quarter of fiscal 2011 and fiscal 2010, we completed evaluations of long-lived assets at certain underperforming stores and, as a result, determined that the carrying values of certain assets exceeded their future undiscounted cash flows.  We then determined the fair value of these assets by discounting their future cash flows using a rate approximating our cost of capital, which resulted in an impairment charge of approximately $1.4 million and $0.8 million for the first quarter of 2011 and 2010, respectively.