Stock-Based Compensation (Tables)

9 Months Ended

Nov. 01, 2014

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

	November 1, 2014			November 2, 2013
Expected volatility		46.0	%		52.0	%
Risk-free interest rate	0.79%-0.93%			0.34-0.79%
Expected life	3.1-3.5 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 nine months of fiscal 2014:

	Number of Shares			Weighted-average exercise price per option		Weighted-average remaining contractual term	Aggregate intrinsic value
Stock Options
Outstanding options at beginning of year		2,721,569		$	4.95
Options granted		141,684		$	5.29
Options canceled		(87,306	)	$	5.04
Options exercised ⁽¹⁾		(26,224	)	$	4.69

Outstanding options at end of quarter		2,749,723		$	4.97	8.2 years	$	862,978
Options exercisable at end of quarter		338,810		$	4.55	5.0 years	$	341,453

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

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

	Number of Shares			Weighted-average grant-date fair value ⁽¹⁾
Restricted Shares
Restricted shares outstanding at beginning of year		2,017,940		$	5.01
Restricted shares granted		97,950		$	5.32
Deferred shares granted ⁽²⁾		8,345		$	5.22
Restricted shares vested		(143,203	)	$	4.31
Restricted shares canceled		(67,974	)	$	5.00

Restricted and Deferred shares outstanding at end of quarter		1,913,058		$	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 nine months of fiscal 2014, the Company granted 8,345 shares of deferred stock, with a fair value of approximately $43,561 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.

Employee Stock Plan, 1992 Plan

Stock Option Activity

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

	Number of Shares			Weighted-average exercise price per option		Weighted-average remaining contractual term	Aggregate intrinsic value ⁽¹⁾
Stock Options
Outstanding options at beginning of year		911,775		$	6.82
Options granted		—			—
Options canceled		(684,775	)	$	6.77
Options exercised ⁽²⁾		(7,500	)	$	5.67

Outstanding options at end of quarter		219,500		$	7.02	0.6 years		—
Options exercisable at end of quarter		219,500		$	7.02	0.6 years		—

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

(2)	Options were exercised through net share settlement. As a result, no shares were issued. The intrinsic value of options exercised was immaterial.