Stock-Based Compensation (Tables)

9 Months Ended

Nov. 01, 2014

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 November 1, 2014 and November 2, 2013 was estimated on the grant date using the following assumptions:

	Thirteen Weeks Ended November 1, 2014			Thirteen Weeks Ended November 2, 2013			Thirty-Nine Weeks Ended November 1, 2014			Thirty-Nine Weeks Ended November 2, 2013
Expected option term(1)		5.0 years			5.0 years			5.0 years			5.0 years
Expected volatility factor(2)		44.4% - 44.6	%		55.0	%		44.4% - 46.9	%		55.0% - 56.2	%
Risk-free interest rate(3)		1.7% - 1.8	%		1.7	%		1.6% - 1.8	%		0.8% - 1.7	%
Expected annual dividend yield		0	%		0	%		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 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 November 1, 2014 (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 February 1, 2014		2,356,790		$	13.31
Granted		832,500			12.21
Exercised		(21,750	)		8.34
Forfeited		(200,000	)		13.87
Outstanding at November 1, 2014		2,967,540		$	13.00		7.2	$	85
Vested and expected to vest at November 1, 2014		2,848,391		$	13.00		7.2	$	85
Exercisable at November 1, 2014		1,349,540		$	12.58		5.6	$	85

(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 $7.12 at October 31, 2014.