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.  Other intangible assets consist of the following (in thousands):  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,  42  BUILD-A-BEAR WORKSHOP, INC.  A reconciliation between the statutory federal income tax rate and the effective  income tax rate is as follows (in thousands): The components of the provision for income taxes are as follows (in thousands): 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. Accrued expenses consist of the following (in thousands) (7) Accrued Expenses  (8) Income Taxes  (5) Other Intangible Assets  (6) Other Non-current Assets  2013 2012 Trademarks and other intellectual property $ 12,389  $ 12,151  Less accumulated amortization 11,871  11,518  Total, net $ 518  $ 633  2013 2012 2011 Current: Federal $ -  $ -  $ -  State (68) 165  (439) Foreign 6  790  906  Deferred: Federal -  -  11,592  State 56  (928) 2,281  Foreign -  839  70  Income tax expense (benefit) $ (6) $ 866  $ 14,410  2013 2012 Accrued wages, bonuses and related expenses $ 9,745  $ 5,455  Sales tax payable 5,979  5,216  Accrued rent and related expenses 429  811  Current income taxes payable 227  88  $ 16,380  $ 11,570  2013 2012 2011 Loss before income taxes $ (2,118) $ (48,429) $ (2,652) Statutory federal income tax rate 34% 34% 34% Income tax expense (benefit)   at statutory federal rate (720) (16,466) (902) State income taxes, net of federal tax  benefit 151  124  2  Permanent difference - Goodwill  impairment -  11,448  -  Valuation allowance 386  4,739  15,565  Effect of lower foreign taxes 497  296  (231) Release of state tax reserves (70) (23) (47) Other items, net (250) 748  23  Income tax expense (benefit) $ (6) $ 866  $ 14,410  Effective tax rate 0.3% (1.8)% (543.4)% 2013 FORM 10-K