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Basis of Presentation (Tables)
 9 Months Ended
Oct. 28, 2023
Accounting Policies [Abstract]  
Other Comprehensive Income (Loss) and Reclassifications from AOCI

Other comprehensive income (loss) includes amounts related to foreign currency and retirement plans and is reported in the Consolidated Statements of Comprehensive Income (Loss). Other comprehensive income (loss) and reclassifications from AOCI for the three and nine months ended October 28, 2023 and October 29, 2022 were as follows:

 

 

 

October 28, 2023

 

 

October 29, 2022

 

For the three months ended:

 

(in thousands)

 

 

 

Retirement
Plans

 

 

Foreign
Currency

 

 

Total

 

 

Retirement
Plans

 

 

Foreign
Currency

 

 

Total

 

Balance at beginning of the quarter

 

$

(1,751

)

 

$

—

 

 

$

(1,751

)

 

$

(5,331

)

 

$

(66

)

 

$

(5,397

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss) before
   reclassifications, net of taxes

 

 

14

 

 

 

—

 

 

 

14

 

 

 

77

 

 

 

(3

)

 

 

74

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recognition of loss on retirement plan termination, net of taxes (1)

 

 

31

 

 

 

 

 

 

31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts reclassified from accumulated other
   comprehensive income, net of taxes (2)

 

 

35

 

 

 

—

 

 

 

35

 

 

 

(9

)

 

 

—

 

 

 

(9

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss) for the period

 

 

80

 

 

 

—

 

 

 

80

 

 

 

68

 

 

 

(3

)

 

 

65

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at end of quarter

 

$

(1,671

)

 

$

—

 

 

$

(1,671

)

 

$

(5,263

)

 

$

(69

)

 

$

(5,332

)

 

 

 

October 28, 2023

 

 

October 29, 2022

 

For the nine months ended:

 

(in thousands)

 

 

 

Retirement
Plans

 

 

Foreign
 Currency

 

 

Total

 

 

Retirement
Plans

 

 

Foreign
Currency

 

 

Total

 

Balance at beginning of fiscal year

 

$

(4,928

)

 

$

—

 

 

$

(4,928

)

 

$

(5,466

)

 

$

(59

)

 

$

(5,525

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss) before
   reclassifications, net of taxes

 

 

43

 

 

 

—

 

 

 

43

 

 

 

232

 

 

 

(10

)

 

 

222

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recognition of loss on retirement plan termination, net of taxes (1)

 

 

3,111

 

 

 

 

 

 

3,111

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amounts reclassified from accumulated other
   comprehensive income, net of taxes (2)

 

 

103

 

 

 

—

 

 

 

103

 

 

 

(29

)

 

 

—

 

 

 

(29

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss) for the period

 

 

3,257

 

 

 

—

 

 

 

3,257

 

 

 

203

 

 

 

(10

)

 

 

193

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at end of quarter

 

$

(1,671

)

 

$

—

 

 

$

(1,671

)

 

$

(5,263

)

 

$

(69

)

 

$

(5,332

)

 

(1)
In connection with the Company's decision to terminate its frozen retirement plans, the Company completed a termination of its Supplemental Executive Retirement Plan ("SERP") in the third quarter of fiscal 2023 and recognized the loss in AOCI of $31,000, with no related tax effect. Results for the nine months ended October 28, 2023 also reflect the partial settlement of the Pension Plan which resulted in the recognition of $4.2 million loss on termination, or $3.1 million net of taxes.
(2)
Includes the amortization of the unrecognized loss on retirement plans, which was charged to “Selling, General and Administrative” Expense on the Consolidated Statements of Operations for all periods presented. The Company recognized expense of $47,000, or $35,000 net of taxes, for the three months ended October 28, 2023 and expense of $139,000, or $103,000 net of taxes, for the nine months ended October 28, 2023. For the three and nine months ended October 29, 2022, the Company recognized income of $9,000 and $29,000, respectively, as a result of a change in amortization from average remaining future service to average remaining lifetime. There was no related tax effect for the three and nine months ended October 29, 2022.
Valuation Assumptions for Stock Options

The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model based on the assumptions in the table below as it relates to stock options granted during the first nine months of fiscal 2023 and fiscal 2022.

 

 

 

October 28, 2023

 

 

October 29, 2022

 

Expected volatility

 

86.3% - 92.1%

 

 

87.9% - 123.7%

 

Risk-free interest rate

 

3.71%-4.42%

 

 

2.52% - 4.41%

 

Expected term

 

2.5 yrs.

 

 

2.0 - 3.5 yrs.

 

Dividend rate

 

 

—

 

 

 

—

 

Weighted average fair value of options granted

 

$

3.24

 

 

$

3.46

 

 

During the third quarter of fiscal 2023, the Company granted performance stock units (PSUs) with a market condition. The respective grant-date fair value and derived service periods assigned to the PSUs were determined using a Monte Carlo model. The valuation included assumptions with respect to the volatility, risk-free rate and cost of equity are discussed in Note 6, "Stock-Based Compensation."