Stock Based Compensation

6 Months Ended

Jul. 30, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

Note 4. Stock Based Compensation

Total stock-based compensation expense recognized in the condensed consolidated statements of operations for the thirteen weeks ended July 30, 2011 and July 31, 2010 was $0.1 million and $0.1 million, respectively, before income taxes. No deferred tax benefit was recorded against stock-based compensation expense for the thirteen weeks ended July 30, 2011 and July 31, 2010.

Total stock-based compensation expense recognized in the condensed consolidated statements of operations for the twenty-six weeks ended July 30, 2011 and July 31, 2010 was $0.2 million and $0.4 million, respectively, before income taxes. No deferred tax benefit was recorded against stock-based compensation expense for the twenty-six weeks ended July 30, 2011 and July 31, 2010.

As of July 30, 2011, there was approximately $0.7 million of unrecognized compensation cost related to stock award awards that is expected to be recognized as expense over a weighted average period of 2.9 years.

As of July 30, 2011, stock awards authorized for issuance under the Company’s plans total 20.6 million. Of these awards authorized for issuance, 6.5 million were granted and are outstanding, 5.1 million of which were vested and exercisable. Awards available for future grants at July 30, 2011 were 2.3 million.

The table below outlines the assumptions that the Company used to estimate the fair value of stock based awards granted during the twenty-six weeks ended July 30, 2011:

	Twenty-six weeks ended July 30, 2011
Dividend yield	0%
Expected stock price volatility	69.9 – 75.4%
Risk-free interest rate	2.3 – 2.8%
Expected award life (in years)	4.9 – 7.0
Weighted average fair value per share of awards granted during the period	$1.09 - $1.26

The following table summarizes stock award activity during the twenty-six weeks ended July 30, 2011:

	Employee and Director Stock Award Plans
	Number of Shares Subject To Award			Weighted Average Exercise Price (1)		Weighted Average Remaining Contractual Term
Balance January 29, 2011		6,880,955		$	6.80		3.9
Granted		439,898			1.74		9.6
Exercised(2)		(30,000	)		—		—
Forfeited		(11,425	)		3.23		—
Expired		(738,932	)		8.92		—
Balance July 30, 2011		6,540,496		$	5.98		4.2
Exercisable at July 30, 2011		5,103,822		$	7.24		2.8

(1)	Exercise price ranges exclude the impact of deferred or restricted stock units that were granted at an exercise price of $0. During the twenty-six weeks ended July 30, 2011, 279,898 restricted stock units were granted and 30,000 deferred shares were excercised.
(2)	Deferred shares are exchangeable for common shares on a 1:1 basis and therefore have an exercise price of $0.

As of July 30, 2011, the intrinsic value of stock awards outstanding was $1.0 million and exercisable was $176,000.