Benefit Plans

12 Months Ended

Jan. 31, 2015

Disclosure Text Block Supplement [Abstract]

Compensation and Employee Benefit Plans [Text Block]

Note 7. Benefit Plans

401(k) Savings Plan

The Company offers a 401(k) Savings Plan to eligible employees meeting certain age and service requirements. This plan permits participants to contribute up to 80% of their salary, including bonuses, up to the maximum allowable by IRS regulations. Participants are immediately vested in their voluntary contributions plus actual earnings thereon. As of March 1, 2011, the Company suspended its matching contribution. Effective May 1, 2013, the Company reinstated its matching contribution. Participant vesting of the Company’s matching and profit sharing contribution is based on the years of service completed by the participant. Participants are fully vested upon the completion of four years of service. All participant forfeitures of non-vested benefits are used to reduce the Company’s contributions or fees in future years. Total expense related to the Company’s matching contribution was approximately $437,000, $331,000 and $0 in Fiscal 2014, 2013 and 2012, respectively.

Stock Award Plans

The Company has outstanding awards under three employee stock award plans, the 1994 Stock Option Plan, the 2002 Stock Option Plan and the 2005 Long Term Incentive and Share Award Plan (the “Old Plans”); and the Amended and Restated 2005 Long Term Incentive and Share Award Plan (the “New Plan”). Additionally, the Company had a stock award plan for non-employee directors (the “1990 Plan”). The Company no longer issues stock options under the Old Plans.

Equity awards authorized for issuance under the New Plan total 3.0 million. As of January 31, 2015, of the awards authorized for issuance under the Old Plans, New Plan and 1990 Plan, 2.7 million were granted and are outstanding, 1.8 million of which were vested and exercisable. Shares available for future grants of options and other share based awards under the New Plan at January 31, 2015 and February 1, 2014 were 2.5 million and 2.7 million, respectively.

Total stock-based compensation expense recognized in the Consolidated Statements of Income for Fiscal 2014, Fiscal 2013 and Fiscal 2012 was $0.5 million, $0.3 million and $0.1 million. For Fiscal 2014, Fiscal 2013 and Fiscal 2012 the related total deferred tax benefit was $0. As of January 31, 2015, there was $1.2 million of unrecognized compensation cost related to stock option awards that is expected to be recognized as expense over a weighted average period of 1.4 years.

The fair values of the options granted have been estimated at the date of grant using the Black - Scholes option pricing model with the following assumptions:

	Stock Option Plan
	2014	2013	2012
Dividend yield	0%	0%	0%
Expected stock price volatility	47.0-66.8%	67.6%-75.2%	68.5%-76.8%
Risk-free interest rate	1.45%-2.18%	0.85%-2.1%	0.69%-0.98%
Expected award life ( in years)	4.92-5.71	4.92-6.98	4.92-6.98
Weighted average fair value per share of awards granted during the year	$1.65	$2.99	$1.70

The following table summarizes information about stock option awards outstanding under the Old Plans, New Plan and 1990 Plan as of January 31, 2015:

	Outstanding								Exercisable
					Weighted						Weighted
			Average		Average		Aggregate				Average		Aggregate
Exercise			Remaining		Exercise		Intrinsic				Exercise		Intrinsic
Price Range	Shares		Life		Price		Value		Shares		Price		Value
$0.00-$2.66		386,000		5.9	$	2.13	$	518,437		247,250	$	2.04	$	332,081
2.67-5.33		1,233,125		5.2		4.52		—		624,375		5.27		—
5.34-8.00		204,250		2.1		5.58		—		204,250		5.58		—
8.01-10.67		—		—		—		—		—		—		—
10.68-13.33		—		—		—		—		—		—		—
13.34-16.00		648,475		0.2		14.32		—		648,475		14.32		—
Total		2,471,850		3.8	$	6.81	$	518,437		1,724,350	$	8.25	$	332,081

The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value based on the Company’s closing stock price of $3.47 as of January 31, 2015, which would have been received by the award holders had all award holders under the Old Plans, New Plan and 1990 Plan exercised their awards as of that date.

The following table summarizes stock option activity under the Stock Award Plans:

	Employee and Director Stock Award Plans
	Number of			Stock Award	Weighted		Other			Weighted
	Shares Subject			Exercise Price	Average		Share			Average Grant
	To Option			Range Per Share	Exercise Price		Awards (1)			Date Value
Balance January 28, 2012		6,126,851		$0.98-$14.32	$	6.28		362,444		$	2.71
Granted		305,000		2.53-3.05		2.76		10,491			3.53
Exercised		(174,250	)	0.98-3.50		3.31		(279,898	)		1.63
Forfeited		(703,750	)	0.98-2.31		2.15		—			0.00
Canceled		(889,942	)	3.50-14.32		8.03		—			0.00
Balance February 2, 2013		4,663,909		$0.98-$14.32	$	6.45		93,037		$	6.04
Granted		285,000		3.48-4.87		4.74		11,620			4.30
Exercised		(1,477,450	)	0.98-3.50		3.29		(93,716	)		5.42
Forfeited		(305,000	)	1.67-4.87		3.08		—			0.00
Canceled		(259,269	)	3.50-14.32		8.45		—			0.00
Balance February 1, 2014		2,907,190		$1.73-$14.32	$	8.07		10,941		$	9.50
Granted		492,500		3.36-3.50		3.44		226,459			3.47
Exercised		(39,000	)	1.73		1.73		—			0.00
Forfeited		(136,250	)	1.73-4.87		3.64		—			0.00
Canceled		(752,590	)	1.73-14.32		10.31		—			0.00
Balance January 31, 2015		2,471,850		$1.73-$14.32	$	6.81		237,400		$	3.75

(1) Other Share Awards include deferred shares granted to Directors.

During Fiscal 2014, 2013 and 2012, the Company recognized expenses of approximately $80,000, $50,000 and $0, respectively, for deferred shares issued to non-employee directors.

($ in thousands)	Stock Option Exercises
	2014		2013		2012
Cash received for exercise price	$	67	$	4,869	$	564
Intrinsic value		86		701		92

Defined Benefit Plans

The Company maintains a non-qualified Supplemental Executive Retirement Plan (“SERP”) for certain Executive Officers of the Company. The SERP, which is unfunded, provides eligible executives defined pension benefits that supplement benefits under other retirement arrangements. The annual benefit amount is based on salary and bonus at the time of retirement and number of years of service.

Prior to June 1, 2003, the Company had provided the Board of Directors with a noncontributory, unfunded retirement plan (“Director Retirement Plan”) that paid retired directors an annual retirement benefit.

For Fiscal 2014, Fiscal 2013 and Fiscal 2012, net periodic benefit cost recognized under both plans totaled approximately $1.3 million, $1.5 million, and $1.1 million, respectively. The accrued pension liability for both plans was approximately $19.5 million and $16.3 million at January 31, 2015 and February 1, 2014, respectively, and is recorded within other long term liabilities. The accumulated benefit obligation for both plans was approximately $19.5 million and $16.1 million as of January 31, 2015 and February 1, 2014, respectively.

The following is a summary of the Company’s defined benefit pension plans as of the most recent actuarial calculations:

Obligation and Funded Status:
($ in thousands)	January 31,			February 1,
	2015			2014
Change in Projected Benefit Obligation:
Benefit obligation at beginning of year	$	16,287		$	17,585
Service cost		55			90
Interest cost		689			638
Actuarial loss		2,640			199
Benefits paid		(121	)		(121	)
Projected Benefit obligation at end of year	$	19,550		$	16,287
Fair value of plan assets at end of year	$	—		$	—
Funded status	($  19,550		)	($  16,287		)
Unrecognized prior service cost		580			1,300
Unrecognized net actuarial loss (gain)		502			(2,280	)
Accrued benefit cost	($ 18,468		)	($  17,267		)

Amounts recognized in the Consolidated Balance Sheets consist of:
($ in thousands)	January 31,			February 1,
	2015			2014
Current liability	($   207		)	($ 137		)
Long term liability		(19,343	)		(16,150	)
Add: Accumulated other comprehensive loss (income)		1,082			(980	)
Net amount recognized	($ 18,468		)	($ 17,267		)

Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive (Income) Loss:

($ in thousands)
Net Periodic Benefit Cost:
		Fiscal Year
		2014			2013			2012
Service cost	$	55		$	110		$	90
Interest cost		689			656			637
Amortization of prior service cost		721			721			342
Amortization of net gain		(143	)		(2	)		(448	)
Net periodic benefit cost	$	1,322		$	1,485		$	1,068

Other Changes in Benefit Obligations Recognized in Other Comprehensive (Income) Loss:

Net prior service cost recognized as a component of net periodic benefit cost	$	(721	)	$	(721	)
Net actuarial gain recognized as a component of net periodic benefit cost		143			2
Net actuarial losses / (gains) arising during the period		2,640			(1,936	)
		2,062			(2,655	)
Income tax effect		—			—
Total recognized in other comprehensive (income) loss	$	2,062		($ 2,655		)
Total recognized in net periodic benefit cost and other comprehensive loss (income)	$	3,384		($ 1,170		)

The pre-tax components of accumulated other comprehensive loss, which have not yet been recognized as components of net periodic benefit cost as of January 31, 2015, February 1, 2014 and February 2, 2013 and the tax effect are summarized below.

($ in thousands)	January 31,		February 1,			February 2,
	2015		2014			2013
Net unrecognized actuarial loss (gain)	$	502	($ 2,280		)	($ 346		)
Net unrecognized prior service cost		580		1,300			2,021
Accumulated other comprehensive (income) loss		1,082		(980	)		1,675
Tax expense		1,099		1,099			1,099
Accumulated other comprehensive loss	$	2,181	$	119		$	2,774

In Fiscal 2015, approximately $342,000 of net unrecognized prior service cost and approximately $35,000 of the net unrecognized actuarial gain, recorded as components of accumulated other comprehensive loss at January 31, 2015, will be recognized as components of net periodic benefit cost.

Assumptions:
	Fiscal Year
	2014			2013
Weighted-average assumptions used to determine benefit obligation:
Discount rate		3.00	%		4.25	%
Salary increase rate		3.00	%		4.00	%
Measurement date		Jan 31, 2015			Feb 1, 2014

	Fiscal Year
	2014			2013			2012
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate		4.25	%		3.75	%		4.00	%
Salary increase rate		4.00	%		4.00	%		4.00	%

The discount rate is based on the rates implicit in high-quality fixed-income investments currently available as of the measurement date. The Citigroup Pension Discount Curve (CPDC) rates are intended to represent the spot rates implied by the high quality corporate bond market in the U.S. The projected benefit payments attributed to the projected benefit obligation have been discounted using the CPDC mid-year rates and the discount rate is the single constant rate that produces the same total present value.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:

Year	Pension Benefits
	($ in thousands)
2015		207
2016		1,068
2017		1,079
2018		1,201
2019		1,201
2020 – 2024		5,869

Accumulated Other Comprehensive Income (Loss)

($ in thousands)	Pension and Other Benefit
February 1, 2014	($ 119		)
Other comprehensive income before reclassifications		(2,640	)
Amounts reclassified from AOCI(1)		578
January 31, 2015	($ 2,181		)

(1) Represents amortization of pension and other benefit liabilities, which is recorded in SG&A expenses on the Consolidated Statements of Income.