Stock Based Compensation

6 Months Ended

Jul. 28, 2012

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

Note 4. Stock Based Compensation

Total stock-based compensation expense recognized in the unaudited condensed consolidated statements of operations for the thirteen weeks ended July 28, 2012 and July 30, 2011 was $60,000 and $61,000, respectively, before income taxes. No deferred tax benefit was recorded against stock-based compensation expense for the thirteen weeks ended July 28, 2012 and July 30, 2011.

Total stock-based compensation expense recognized in the unaudited condensed consolidated statements of operations for the twenty-six weeks ended July 28, 2012 and July 30, 2011 was $128,000 and $170,000, respectively, before income taxes. No deferred tax benefit was recorded against stock-based compensation expense for the twenty-six weeks ended July 28, 2011 and July 30, 2011.

As of July 28, 2012, 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 2.3 years.

As of July 28, 2012, stock awards authorized for issuance under the Company’s plans total 20.6 million. Of these awards authorized for issuance, 5.4 million were granted and are outstanding, 4.3 million of which were vested and exercisable. Awards available for future grants at July 28, 2012 were 2.1 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 28, 2012:

	Twenty-six weeks ended July 28, 2012
Dividend yield		—	—	0%
Expected stock price volatility		68.5%	75.4%
Risk-free interest rate		0.7%	1.0%
Expected award life (in years)		4.9	7.0
Weighted average fair value per share of awards granted during the period		$1.53	$1.94

The following table summarizes stock award activity during the twenty-six weeks ended July 28, 2012:

	Employee and Director Stock Award Plans
	Number of Shares Subject To Option			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term		Other Share Awards(1)			Weighted Average Grant Fair Value
Balance January 28, 2012		6,126,851		$	6.28		3.6		362,444		$	2.71
Granted		205,000			2.63		9.9		—			—
Exercised		(2,500	)		2.43		—		(279,898	)		1.63
Forfeited		(150,000	)		2.31		—		—			—
Canceled		(863,732	)		8.03		—		—			—
Balance July 28, 2012		5,315,619		$	5.88		3.7		82,546		$	6.35
Exercisable July 28, 2012		4,173,119		$	6.90		2.4		82,546		$	6.35

(1) Other Share Awards include deferred shares granted to Directors and restricted stock units issued to employees.

As of July 28, 2012, the intrinsic value of stock awards outstanding was $1.3 million and exercisable was $256,000.