loss before income taxes in the Retail segment. As of December 28,  2013, the remaining net book value of the leasehold assets related  to these stores was $-0-. In fiscal 2012, we recorded $0.9 million in  similar charges. include, but are not limited to, the following: (1) significant  underperformance relative to historical or projected future  operating results; (2) significant changes in the manner of our use  of the acquired assets or the strategy for our overall business; and  (3) significant changes in our business strategies and/or negative  industry or economic trends. We assess events and changes in  circumstances or strategy that could potentially indicate that the  carrying value of long-lived assets may not be recoverable as they  occur. Due to the significance of the fourth quarter to individual store  locations, we assess store performance annually, using the full year’s  results. We consider a historical and/or projected negative cash flow  trend for a store location to be an indicator that the carrying value of  that asset group may not be recoverable.  As a result of our 2013 review, we determined that one store 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, we reduced  the carrying value of the assets to fair value, calculated as the  present value of estimated future cash flows for each asset group  and recorded asset impairment charges of $0.1 million in the fourth  quarter of fiscal 2013, which is included in cost of merchandise sold.  The calculation of fair value could increase or decrease depending  on changes in the inputs and assumptions used, such as changes in  the financial performance of the asset group, future growth rate and  discount rate. In order to evaluate the sensitivity of the fair value  assumptions on store asset impairment, we applied a hypothetical  decrease of 1% in the comparable stores sales trend and in margin,  which we believe is appropriate. Based on the analysis performed as  of December 28, 2013, the changes in our assumptions would not have  resulted in additional impairment charges.  Corporate assets, including computer hardware and software and the  Company-owned distribution center (approximately $23.1 million as  of December 28, 2013), and certain other assets, such as trademarks  and intellectual property, net (approximately $0.6 million as of  December 28, 2013), have a broad applicability and are generally  considered to be recoverable, unless abandoned. Other long-lived  assets, including deferred franchise and lease costs (approximately  $0.6 million as of December 28, 2013), are monitored in relation to the  relevant franchisee or store location.  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 fees, severance and other charges. Impairment losses in  the future are dependent on a number of factors such as site selection  and general economic trends, and thus could be significantly  different than historical results. As we continue to face a challenging  retail environment and general uncertainty in the global economy,  the assumptions used in future calculations of fair value may change  significantly which could result in further impairment charges in  future periods.  At December 28, 2013, we evaluated our trade credits asset and  determined that certain assumptions regarding future utilization  were no longer attainable. Accordingly, an impairment review was  performed. Based on current utilization expectations, we 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. As of December 28, 2013, $0.7  million was included in prepaid expenses and other current assets  and $0.4 million was included in other assets, net, related to these  credits. In fiscal 2012, we recorded a similar charge of $2.2 million. As a result of our reviews in 2012 and 2011, we determined that certain  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, we reduced  the carrying value of the assets to fair value, calculated as the  present value of estimated future cash flows for each asset group and  recorded asset impairment charges of $1.4 million and $0.4 million  in the fourth quarters of fiscal 2012 and 2011, respectively, which are  included in cost of merchandise sold.  Revenues from retail sales, net of discounts and excluding sales  tax, are recognized at the time of sale. Guest returns have not been  significant. Revenues from gift cards are recognized at the time of  redemption. Unredeemed gift cards are included in current liabilities  on the consolidated balance sheets.  We have a customer loyalty program, the Stuff Fur Stuff club, whereby  guests enroll in the program and receive one point for every dollar  spent. Points accumulate and expire after 12 months of inactivity. In  North America, guests receive a coupon for free merchandise after  reaching 50 points and a $10 reward certificate after reaching 100  points. Additional awards are earned for each additional 50 points  Additionally, we consider a more likely than not assessment that an  individual location will close prior to the end of its lease term as a  triggering event to review the store asset group for recoverability.  These assessments are reviewed on a quarterly basis. As a result of  these reviews, it was determined that certain stores would not be  able to recover the carrying value of store leasehold improvements  through expected undiscounted cash flows over the shortened  remaining life of the related assets. Accordingly, the carrying value  of the assets was reduced to fair value, calculated as the estimated  future cash flows for each asset group, and asset impairment charges  of $1.0 million were recorded in fiscal 2013, which are included in  selling, general and administrative expenses as a component of net  2013 FORM 10-K 27 BUILD-A-BEAR WORKSHOP, INC.  Revenue Recognition 