Stock-Based Compensation (Tables)

6 Months Ended

Aug. 02, 2014

Assumptions Used for Grants

The following assumptions were used for grants for the first six months of fiscal 2014 and fiscal 2013:

	August 2, 2014	August 3, 2013
Expected volatility	46.0%	52.0%
Risk-free interest rate	0.79%	0.34-0.79%
Expected life	3.1 yrs	3.0-4.1 yrs
Dividend rate	—	—

2006 Plan

Stock Option Activity

The following tables summarize the stock option activity and restricted share activity under the 2006 Plan for the first six months of fiscal 2014:

Stock Options	Number of Shares			Weighted-average Exercise price per Option		Weighted-average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding options at beginning of year		2,721,569		$	4.95
Options granted		106,882			5.29
Options canceled		(87,306	)		5.04
Options exercised (1)		(16,224	)		5.04
Outstanding options at end of quarter		2,724,921		$	4.96		8.4 years	$	671,295
Options exercisable at end of quarter		340,069		$	4.50		5.2 years	$	329,714

(1) The intrinsic value of options exercised was immaterial.

Summary of Activity for Non-Vested Shares (Restricted Shares)

Restricted Shares	Number of Shares			Weighted-average Grant-Date Fair Value (1)
Restricted shares outstanding at beginning of year		2,017,940		$	5.01
Restricted shares granted		74,018			5.33
Deferred shares granted (2)		5,448			5.24
Restricted shares vested		(143,203	)		4.31
Restricted shares canceled		(67,974	)		5.00
Restricted and Deferred shares outstanding at end of quarter		1,886,229		$	5.08

(1) The fair value of a restricted share is equal to the Company’s closing stock price on the date of grant.

(2) During the first six months of fiscal 2014, the Company granted 5,448 shares of deferred stock, with a fair value of approximately $28,560 to a director as compensation in lieu of cash and in accordance with his irrevocable election. The shares of deferred stock will vest three years from the date of grant. The Company is recognizing compensation expense over the respective vesting periods.

Employee Stock Plan, 1992 Plan

Stock Option Activity

The following table summarizes stock option activity under the 1992 Plan for the first six months of fiscal 2014:

Stock Options	Number of Shares			Weighted-average Exercise price per Option		Weighted-average Remaining Contractual Term		Aggregate Intrinsic Value (1)
Outstanding at beginning of year		911,775		$	6.82
Options granted		—			—
Options canceled		(440,775	)		7.28
Options exercised		(7,500	)		5.67
Outstanding at end of quarter		463,500		$	6.40		0.4 years		—
Options exercisable at end of quarter		463,500		$	6.40		0.4 years		—

(1) The intrinsic value of the options outstanding at August 2, 2014 was immaterial.