Benefit Plans

12 Months Ended

Feb. 01, 2014

Disclosure Text Block Supplement [Abstract]

Compensation and Employee Benefit Plans [Text Block]

Note 7. Benefit Plans

401(k) Savings Plan

The Company offers a 401(k) Savings Plan to eligible employees meeting certain age and service requirements. This plan permits participants to contribute up to 80% of their salary, including bonuses, up to the maximum allowable by IRS regulations. Participants are immediately vested in their voluntary contributions plus actual earnings thereon. As of March 1, 2011, the Company suspended its matching contribution. Effective May 1, 2013, the Company reinstated its matching contribution. Participant vesting of the Company’s matching and profit sharing contribution is based on the years of service completed by the participant. Participants are fully vested upon the completion of four years of service. All participant forfeitures of non-vested benefits are used to reduce the Company’s contributions or fees in future years. Total expense related to the Company’s matching contribution was approximately $331,000, $0 and $3,000 in Fiscal 2013, 2012 and 2011, respectively.

Stock Award Plans

The Company has three employee stock award plans, the 1994 Stock Option Plan and the 2002 Stock Option Plan (the “Old Plans”); and the 2005 Long Term Incentive and Share Award Plan (the “New Plan”). Additionally, the Company had a stock award plan for non-employee directors (the “1990 Plan”). The Company no longer issues stock options under the Old Plans.

Equity awards authorized for issuance under the New Plan total 5.0 million. As of February 1, 2014, of the awards authorized for issuance under the Old Plans, New Plan and 1990 Plan, 2.9 million were granted and are outstanding, 2.3 million of which were vested and exercisable. Shares available for future grants of options and other share based awards under the New Plan at February 1, 2014 and February 2, 2013 were 2.7 million and 2.6 million, respectively.

Total stock-based compensation expense recognized in the Consolidated Statements of Income for Fiscal 2013, Fiscal 2012 and Fiscal 2011 was $0.3 million, $0.1 million and $0.3 million. For Fiscal 2013, Fiscal 2012 and Fiscal 2011 the related total deferred tax benefit was $0. As of February 1, 2014, there was $0.6 million of unrecognized compensation cost related to stock option awards that is expected to be recognized as expense over a weighted average period of 1.8 years.

The fair values of the options granted have been estimated at the date of grant using the Black - Scholes option pricing model with the following assumptions:

	Stock Option Plan
	2013		2012		2011
Dividend yield		0%		0%		0%
Expected stock price volatility		67.6%-75.2%		68.5%-76.8%		69.9%-75.4%
Risk-free interest rate		0.85%-2.1%		0.69%-0.98%		1.42%-2.81%
Expected award life ( in years)		4.92-6.98		4.92-6.98		4.92-6.98
Weighted average fair value per share of awards granted during the year		$2.99		$1.70		$1.27

The following table summarizes information about stock option awards outstanding under the Old Plans, New Plan and 1990 Plan as of February 1, 2014:

			Outstanding								Exercisable
Exercise Minimum Price Range		Exercise Maximum Price Range	Shares		Average Remaining Life		Weighted Average Exercise Price		Aggregate Intrinsic Value		Shares		Weighted Average Exercise Price		Aggregate Intrinsic Value
$0.00	-	$2.66		445,000		7.0	$	2.09	$	831,171		82,500	$	2.08	$	154,094
2.67	-	5.33		857,525		4.3		5.06		—		611,275		5.30		—
5.34	-	8.00		204,800		3.2		5.58		—		204,800		5.58		—
8.01	-	10.67		749,950		0.2		10.31		—		749,950		10.31		—
10.68	-	13.33		—		—		—		—		—		—		—
13.34	-	16.00		649,915		1.2		14.32		—		649,915		14.32		—
Total				2,907,190		2.9	$	8.07	$	831,171		2,298,440	$	9.40	$	154,094

The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value based on the Company’s closing stock price of $3.96 as of January 31, 2014, which would have been received by the award holders had all award holders under the Old Plans, New Plan and 1990 Plan exercised their awards as of that date.

The following table summarizes stock option activity under the Stock Award Plans:

	Employee and Director Stock Award Plans
	Number of Shares Subject To Option			Stock Award Exercise Price Range Per Share		Weighted Average Exercise Price		Other  Share  Awards (1)			Weighted Average Grant Date Value
Balance January 29, 2011		6,687,058		$	0.98-$14.32	$	6.80		192,822		$	4.19
Granted		310,000			1.73-2.31		2.02		279,898			1.63
Exercised		—			—		—		(110,276	)		2.57
Forfeited		(12,925	)		1.16-5.50		2.99		—			0.00
Canceled		(857,282	)		3.50-14.32		8.82		—			0.00
Balance January 28, 2012		6,126,851		$	0.98-$14.32	$	6.28		362,444		$	2.71
Granted		305,000			2.53-3.05		2.76		10,491			3.53
Exercised		(174,250	)		0.98-3.50		3.31		(279,898	)		1.63
Forfeited		(703,750	)		0.98-2.31		2.15		—			0.00
Canceled		(889,942	)		3.50-14.32		8.03		—			0.00
Balance February 2, 2013		4,663,909		$	0.98-$14.32	$	6.45		93,037		$	6.04
Granted		285,000			3.48-4.87		4.74		11,620			4.30
Exercised		(1,477,450	)		0.98-3.50		3.29		(93,716	)		5.42
Forfeited		(305,000	)		1.67-4.87		3.08		—			0.00
Canceled		(259,269	)		3.50-14.32		8.45		—			0.00
Balance February 1, 2014		2,907,190		$	1.73-$14.32	$	8.07		10,941		$	9.50

(1) Other Share Awards include deferred shares granted to Directors.

During Fiscal 2013, 2012 and 2011, the Company recognized expenses of approximately $50,000, $0 and $13,000, respectively, for deferred shares issued to non-employee directors.

($ in thousands)	Stock Option Exercises
	2013		2012		2011
Cash received for exercise price	$	4,869	$	564	$	0
Intrinsic value		701		92		0

Defined Benefit Plans

The Company maintains a non-qualified Supplemental Executive Retirement Plan (“SERP”) for certain Executive Officers of the Company. The SERP, which is unfunded, provides eligible executives defined pension benefits that supplement benefits under other retirement arrangements. The annual benefit amount is based on salary and bonus at the time of retirement and number of years of service.

Prior to June 1, 2003, the Company had provided the Board of Directors with a noncontributory, unfunded retirement plan (“Director Retirement Plan”) that paid retired directors an annual retirement benefit.

For Fiscal 2013, Fiscal 2012 and Fiscal 2011, net periodic benefit cost recognized under both plans totaled approximately $1.5 million, $1.1 million, and $0.7 million, respectively. The accrued pension liability for both plans was approximately $16.3 million and $17.6 million at February 1, 2014 and February 2, 2013, respectively, and is recorded within other long term liabilities. The accumulated benefit obligation for both plans was approximately $16.1 million and $17.4 million as of February 1, 2014 and February 2, 2013, respectively.

The following is a summary of the Company’s defined benefit pension plans as of the most recent actuarial calculations:

Obligation and Funded Status:
($ in thousands)	February 1, 2014			February 2, 2013
Change in Projected Benefit Obligation:
Benefit obligation at beginning of year	$	17,585		$	16,021
Service cost		110			90
Interest cost		657			638
Actuarial (gain)/loss		(1,936	)		199
Benefits paid		(129	)		(121	)
Plan change		0			758
Projected Benefit obligation at end of year	$	16,287		$	17,585
Fair value of plan assets at end of year	$	—		$	—
Funded status		($16,287	)		($17,585	)
Unrecognized prior service cost		1,300			2,021
Unrecognized net actuarial gain		(2,280	)		(346	)
Accrued benefit cost		($17,267	)		($15,910	)

Amounts recognized in the Consolidated Balance Sheets consist of:

($ in thousands)	February 1, 2014			February 2, 2013
Current liability		($137	)		($151	)
Long term liability		(16,150	)		(17,434	)
Add: Accumulated other comprehensive (income) loss		(980	)		1,675
Net amount recognized		($17,267	)		($15,910	)

Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other
Comprehensive (Income) Loss:

($ in thousands)

Net Periodic Benefit Cost:	Fiscal Year
	2013			2012			2011
Service cost	$	110		$	90		$	147
Interest cost		656			637			671
Amortization of prior service cost		721			342			342
Amortization of net gain		(2	)		(1	)		(448	)
Net periodic benefit cost	$	1,485		$	1,068		$	712
Other Changes in Benefit Obligations Recognized in Other Comprehensive (Income) Loss:
Net prior service cost recognized as a component of net periodic benefit cost	$	(721	)		($342	)
Net actuarial gain recognized as a component of net periodic benefit cost		2			1
Prior service cost arising during the period		0			758
Net actuarial losses / (gains) arising during the period		(1,936	)		200
		(2,655	)		617
Income tax effect		—			—
Total recognized in other comprehensive (income) loss		($2,655	)	$	617
Total recognized in net periodic benefit cost and other comprehensive (income) loss		($1,170	)	$	1,685

The pre-tax components of accumulated other comprehensive income, which have not yet been recognized as components of net periodic benefit cost as of February 1, 2014, February 2, 2013 and January 28, 2012 and the tax effect are summarized below.

($ in thousands)	February 1, 2014			February 2, 2013			January 28, 2012
Net unrecognized actuarial gain		($2,280	)		($346	)		($547	)
Net unrecognized prior service cost		1,300			2,021			1,605
Accumulated other comprehensive (income) loss		(980	)		1,675			1,058
Tax expense		1,099			1,099			1,099
Accumulated other comprehensive loss	$	119		$	2,774		$	2,157

In Fiscal 2014, approximately $721,000 of net unrecognized prior service cost and approximately $143,000 of the net unrecognized actuarial gain, recorded as components of accumulated other comprehensive loss at February 1, 2014, will be recognized as components of net periodic benefit cost.

Assumptions:

	Fiscal Year
	2013		2012
Weighted-average assumptions used to determine benefit obligation:
Discount rate		4.25%		3.75%
Salary increase rate		4.00%		4.00%
Measurement date		Feb 1, 2014		Feb 2, 2013

	Fiscal Year
	2013		2012		2011
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate		3.75%		4.00%		4.00%
Salary increase rate		4.00%		4.00%		4.00%

The discount rate is based on the rates implicit in high-quality fixed-income investments currently available as of the measurement date. The Citigroup Pension Discount Curve (CPDC) rates are intended to represent the spot rates implied by the high quality corporate bond market in the U.S. The projected benefit payments attributed to the projected benefit obligation have been discounted using the CPDC mid-year rates and the discount rate is the single constant rate that produces the same total present value.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:

Year	Pension Benefits
($ in thousands)
2014	137
2015	127
2016	197
2017	1,079
2018	1,201
2019 - 2023	5,904

Accumulated Other Comprehensive Income (Loss)

($ in thousands)	Pension and Other Benefit
February 2, 2013		($2,774	)
Other comprehensive income before reclassifications		1,936
Amounts reclassified from AOCI (1)		719
February 1, 2014		(119	)

(1) Represents amortization of pension and other benefit liabilities, which is recorded in SG&A expenses on the Consolidated Statements of Income.