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## Notes to Consolidated Financial Statements (continued) 

During 2013, the Company reviewed the operating performance and forecasts of future performance for the stores in its Retail segment. As a result of that review, it was determined that several stores would not be able to recover the carrying value of certain store leasehold improvements through expected undiscounted cash flows over the remaining life of the related assets. Accordingly, the carrying value of the assets was reduced to fair value, calculated as the net present value of estimated future cash flows for each asset group, and asset impairment charges of $0.1 million were recorded in the fourth quarter of fiscal 2013, which are included in cost of merchandise sold as a component of net loss before income taxes in the Retail segment. The inputs used to determine the fair value of the assets are Level 3 fair value inputs as defined by ASC section 820-10. In the event that we decide to close any or all of these stores in the future, we may be required to record additional impairments, lease termination charges, severance charges and other charges. The Company recorded asset impairment charges of $1.4 million in the fourth quarter of fiscal 2012 and $0.4 million in the fourth quarter of fiscal 2011. 

## (5) Other Intangible Assets 

Other intangible assets consist of the following (in thousands): 

<img src='content_image/244161.jpg'>

## (6) Other Non-current Assets 

In 2010, certain other non-current assets were obtained through a series of wholesale transactions whereby the Company exchanged $6.4 million of inventory, at cost, with a third-party vendor for $4.9 million of trade credits and $1.5 million in cash. The transaction was accounted for based upon the fair values of the assets involved in the transaction. In accordance with Accounting Standards Codification (ASC) Section 845-10, in an exchange transaction for trade credits, the fair value of the asset being surrendered cannot exceed its carrying value, meaning that the sale of the inventory was recorded at its cost in the Commercial segment. The trade credits expire in 2015. 

The Company evaluated its trade credits to determine if an impairment existed at December 28, 2013. Based on current utilization expectations, the Company determined that the full value of the asset was not recoverable. Accordingly, the carrying value of the trade credits was reduced to fair value, calculated as the expected present value of estimated future utilization. An impairment charge of $0.3 million was recorded in the fiscal 2013 fourth quarter and is included in selling, general and administrative expenses as a component of net income before income taxes in the Commercial segment. The inputs used to determine the fair value of the asset are level 3 fair value inputs as defined by ASC 820-10. As of December 28, 2013 and December 29, 2012, $0.7 million and $0.7 million, 

respectively was included in prepaid expenses and other current assets and $0.4 million and $1.2 million, respectively, was included in other assets, net, related to these credits. An impairment charge of $2.2 million was recorded in the fiscal 2012 fourth quarter. 

## (7) Accrued Expenses 

Accrued expenses consist of the following (in thousands) 

## (8) Income Taxes 

<img src='content_image/244163.jpg'>

The components of the provision for income taxes are as follows (in thousands): 

<img src='content_image/244162.jpg'>

A reconciliation between the statutory federal income tax rate and the effective income tax rate is as follows (in thousands): 

<img src='content_image/244164.jpg'>

