Stock-Based Compensation (Tables)

9 Months Ended

Oct. 27, 2012

Assumptions Used to Estimate Fair Value of Stock Options Granted

The fair value of stock options granted during the thirteen and thirty-nine weeks ended October 27, 2012 were estimated on the grant dates using the following assumptions:

	Thirteen Weeks Ended October 27, 2012		Thirty-Nine Weeks Ended October 27, 2012
Expected option term(1)		5.0 years		5.0 years
Expected volatility factor(2)		57.6% - 62.9%		57.6% - 62.9%
Risk-free interest rate(3)		0.6% - 0.8%		0.6% - 0.8%
Expected annual dividend yield		0%		0%

(1) The Company has limited historical information regarding expected option term. Accordingly, the Company determined the expected option term of the awards using the latest historical data available from comparable public companies and management’s expectation of exercise behavior.

(2) Stock volatility for each grant is measured using the weighted average of historical daily price changes of the Company’s competitors’ common stock over the most recent period equal to the expected option term of the Company’s awards.

(3) The risk-free interest rate is determined using the rate on treasury securities with the same term as the expected life of the stock option as of the grant date.

Stock Option Activity Under Stock Option Plan

The following table summarizes the Company’s stock option activity for the thirty-nine weeks ended October 27, 2012 (aggregate intrinsic value in thousands):

	Stock Options			Grant Date Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (in Years)		Aggregate Intrinsic Value(1)
Outstanding at January 28, 2012		1,540,000		$	11.34
Granted year-to-date		730,500		$	15.60
Exercised year-to-date		(81,625	)	$	8.85
Forfeited year-to-date		(16,000	)	$	14.24
Outstanding at October 27, 2012		2,172,875		$	12.84		7.6	$	7,497
Exercisable at October 27, 2012		928,000		$	9.66		5.8	$	6,145

(1) Intrinsic value for stock options is defined as the difference between the market price of the Company’s Class A common stock on the last business day of the fiscal quarter and the weighted average exercise price of in-the-money stock options outstanding at the end of each fiscal period. The market value per share was $16.28 at October 26, 2012.