Stock Based Compensation

9 Months Ended

Oct. 29, 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 October 29, 2011 and October 30, 2010 was $61,000 and $125,000, respectively, before income taxes. No deferred tax benefit was recorded against stock-based compensation expense for the thirteen weeks ended October 29, 2011 and October 30, 2010.

Total stock-based compensation expense recognized in the condensed consolidated statements of operations for the thirty-nine weeks ended October 29, 2011 and October 30, 2010 was $244,000 and $507,000, respectively, before income taxes. No deferred tax benefit was recorded against stock-based compensation expense for the thirty-nine weeks ended October 29, 2011 and October 30, 2010.

As of October 29, 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 2.6 years.

As of October 29, 2011, stock awards authorized for issuance under the Company’s plans total 20.6 million. Of these awards authorized for issuance, 6.4 million were granted and are outstanding, 5.0 million of which were vested and exercisable. Awards available for future grants at October 29, 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 thirty nine weeks ended October 29, 2011:

	Thirty-nine weeks ended October 29, 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 thirty-nine weeks ended October 29, 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		9.3
Exercised(2)		(30,000	)		—		—
Forfeited		(11,425	)		3.23		—
Expired		(858,357	)		8.82		—
Balance October 29, 2011		6,421,071		$	5.94		4.0
Exercisable at October 29, 2011		4,986,897		$	7.22		2.6

(1)	Exercise price ranges exclude the impact of deferred or restricted stock units that were granted at an exercise price of $0. During the thirty-nine weeks ended October 29, 2011, 279,898 restricted stock units were granted and 30,000 deferred shares were exercised.
(2)	Deferred shares are exchangeable for common shares on a 1:1 basis and therefore have an exercise price of $0.

As of October 29, 2011, the intrinsic value of stock awards outstanding was $1.0 million and exercisable was $175,000.