Summary of Significant Accounting Policies (Tables)

12 Months Ended

Feb. 01, 2014

Estimated useful Life of Property and Equipment

Depreciation is computed on the straight-line method over the assets’ estimated useful lives as follows:


Furniture and fixtures		Five to ten years
Equipment		Five to ten years
Leasehold improvements		Lesser of useful lives or related lease term
Hardware and software		Three to seven years

Changes in Carrying Value of Intangible Assets

Below is a table showing the changes in the carrying value of the Company’s intangible assets from February 2, 2013 to February 1, 2014:


(in thousands)	February 2, 2013		Additions		Impairment		Amortization			February 1, 2014
“Rochester” trademark	$	1,500	$	—	$	—	$	—		$	1,500
“Casual Male” trademark ⁽¹⁾		4,110		—		—		(1,646	)		2,464
Other intangibles⁽²⁾		646		—		—		(217	)		429

Total intangible assets	$	6,256		—	$	—	$	(1,863	)	$	4,393

(1)

Beginning in fiscal 2012, the “Casual Male” trademark is being accounted for as a finite-lived asset. The gross carrying amount and accumulated amortization of the “Casual Male” trademark subject to amortization, was $6.1 million and $3.6 million, respectively, at February 1, 2014 and $6.1 million and $2.0 million, respectively, at February 2, 2013.

(2)	Approximately $33,000 of the $217,000 of amortization, which relates to the amortization of favorable lease commitments, was included in cost of goods sold (as part of occupancy costs) on the Consolidated Statement of Operations for fiscal 2013.

Expected Amortization Expense for Other Intangible Assets, Including Casual Male Trademark

Expected amortization expense for intangible assets, including our “Casual Male” trademark, for the next five fiscal years is as follows:


FISCAL YEAR	(in thousands)
2014	$	1,085
2015	$	639
2016	$	441
2017	$	407
2018	$	321

Other Comprehensive Income and Reclassifications from AOCI

Other comprehensive income (loss) includes amounts related to foreign currency and pension plans and is reported in the Consolidated Statements of Comprehensive Income. Other comprehensive income and reclassifications from AOCI for fiscal 2013, fiscal 2012 and fiscal 2011 are as follows:


(in thousands)	Fiscal 2013									Fiscal 2012								Fiscal 2011
	Pension Plans			Foreign Currency			Total			Pension Plans			Foreign Currency		Total			Pension Plans			Foreign Currency			Total
Balance at beginning of the fiscal year	$	(5,828	)	$	267		$	(5,561	)	$	(5,949	)	$	233	$	(5,716	)	$	(4,297	)	$	261		$	(4,036	)
Other comprehensive income (loss) before reclassifications, net of taxes		887			(280	)		607			(191	)		34		(157	)		(1,850	)		(28	)		(1,878	)
Amounts reclassified from accumulated other comprehensive income (loss), net of taxes ⁽¹⁾		394			—			394			312			—		312			198			—			198

Other comprehensive income (loss) for the period		1,281			(280	)		1,001			121			34		155			(1,652	)		(28	)		(1,680	)

Balance at end of the fiscal year	$	(4,547	)	$	(13	)	$	(4,560	)	$	(5,828	)	$	267	$	(5,561	)	$	(5,949	)	$	233		$	(5,716	)

(1)

Includes the amortization of the unrecognized (gain)/loss on pension plans which was charged to Selling, General and Administrative expense on the Consolidated Statements of Operations for all periods presented. The amortization of the unrecognized loss, before tax, was $394,000, $516,000 and $328,000 for fiscal 2013, fiscal 2012 and fiscal 2011, respectively. The corresponding tax benefit was $204,000 and $130,000 for fiscal 2012 and fiscal 2011, respectively. There was no corresponding tax benefit for fiscal 2013.

Reconciliation of Number of Shares Outstanding for Basic and Diluted Earnings Per Share

The following table provides a reconciliation of the number of shares outstanding for basic and diluted earnings per share:


	FISCAL YEARS ENDED
(in thousands)	February 1, 2014			February 2, 2013		January 28, 2012
Net Income (Loss):
Net income (loss) – Basic and Diluted	$	(59,786	)	$	6,126	$	42,663
Weighted Average Shares Outstanding:
Basic weighted-average common shares outstanding		48,473			47,947		47,424
Common stock equivalents - stock options and restricted stock. Common stock equivalents of 443 shares for February 1, 2014 were excluded due to the net loss		—			438		620

Diluted weighted-average shares outstanding		48,473			48,385		48,044

Potential Common Stock Equivalents Excluded From Computation of Diluted Earnings Per Share

The following potential common stock equivalents were excluded from the computation of diluted earnings per share in each year because the exercise price of such options was greater than the average market price per share of common stock for the respective periods or the impact of ASC Topic 718, Compensation – Stock Compensation, primarily related to unearned compensation.

FISCAL YEARS ENDED

(in thousands, except exercise prices)

February 1,
2014

February 2,
2013

January 28,
2012

Stock options (time-vested)

2,088

1,634

2,755

Ranges of exercise prices of such options

4.96 – $10.26

3.76 – $10.26

3.23 – $10.26

Valuation Assumptions for Stock Options

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used for grants in fiscal 2013, 2012 and 2011:


	FISCAL YEARS ENDED
	February 1, 2014	February 2, 2013	January 28, 2012
Expected volatility	52.0%	55.0%	55.0%
Risk-free interest rate	0.34%-0.79%	0.31%-0.67%	0.32%-1.89%
Expected life	3.0-4.1	3.0-4.5	2.5-4.5
Dividend rate	—	—	—
Weighted average fair value of options granted	$2.07	$1.46	$1.53