Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jan. 28, 2017

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 January 30, 2016 to January 28, 2017:

(in thousands)	January 30, 2016		Additions		Impairment		Amortization			January 28, 2017
"Rochester" trademark	$	1,500	$	—	$	—	$	—		$	1,500
"Casual Male" trademark		940		—		—		(341	)		599
Other intangibles ⁽¹⁾		229		—		—		(100	)		129
Total intangible assets	$	2,669	$	—	$	—	$	(441	)	$	2,228

(1)	Other intangibles consist of customer lists, which have a finite life of 16 years based on its estimated economic useful life. At January 28, 2017, customer lists have a remaining life of 1.3 years.

Expected Amortization Expense for Casual Male Trademark and Customer Lists

Expected amortization expense for the Company’s “Casual Male” trademark and customer lists, for the next five fiscal years is as follows:

FISCAL YEAR	(in thousands)
2017	$	407
2018	$	321
2019		—
2020		—
2021		—

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 (Loss). Other comprehensive income and reclassifications from AOCI for fiscal 2016, fiscal 2015 and fiscal 2014 are as follows:

	Fiscal 2016									Fiscal 2015									Fiscal 2014
(in thousands)
	Pension Plans			Foreign Currency			Total			Pension Plans			Foreign Currency			Total			Pension Plans			Foreign Currency			Total
Balance at beginning of fiscal year	$	(6,113	)	$	(539	)	$	(6,652	)	$	(7,795	)	$	(443	)	$	(8,238	)	$	(4,547	)	$	(13	)	$	(4,560	)

Other comprehensive income (loss) before reclassifications, net of taxes		171			(242	)		(71	)		1,035			(96	)		939			(3,506	)		(184	)		(3,690	)

Amounts reclassified from accumulated other comprehensive income (loss), net of taxes ⁽¹⁾		705			—			705			647			—			647			258			(246	)		12

Other comprehensive income (loss) for the period		876			(242	)		634			1,682			(96	)		1,586			(3,248	)		(430	)		(3,678	)

Balance at end of fiscal year	$	(5,237	)	$	(781	)	$	(6,018	)	$	(6,113	)	$	(539	)	$	(6,652	)	$	(7,795	)	$	(443	)	$	(8,238	)

(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 $705,000, $647,000 and $258,000 for fiscal 2016, fiscal 2015 and fiscal 2014, respectively. There was no corresponding tax benefit. Fiscal 2014 includes the recognition of $246,000 related to the substantial liquidation of the Company’s direct business with Sears Canada. The $246,000, with no corresponding tax provision, was recognized in Discontinued Operations on the Consolidated Statement of Operations for fiscal 2014.

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
	January 28, 2017		January 30, 2016		January 31, 2015
(in thousands)
Common stock outstanding:
Basic weighted average common shares outstanding		49,544		49,089		48,740
Common stock equivalents – stock options, restricted stock and restricted stock units (RSUs) ⁽¹⁾		—		—		—
Diluted weighted average common shares outstanding		49,544		49,089		48,740

(1)	Common stock equivalents, in thousands, of 439 shares, 583 shares and 498 shares for January 28, 2017, January 30, 2016 and January 31, 2015, respectively, were excluded due to the net loss.

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 because the unearned compensation associated with either stock options, RSUs, restricted or deferred stock had an anti-dilutive effect.

	FISCAL YEARS ENDED
	January 28, 2017		January 30, 2016		January 31, 2015
(in thousands, except exercise prices)
Stock options (time-vested)		1,162		1,244		1,545
RSUs (time-vested)		370		—		—
Restricted and Deferred stock		8		22		—
Range of exercise prices of such options	$4.49-$7.52		$4.96-$7.52		$4.96-$7.52

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 2016, 2015 and 2014:

Fiscal years ended:	January 28, 2017		January 30, 2016		January 31, 2015
Expected volatility	39.3%-42.7%		37.0%-39.0%		46.0%
Risk-free interest rate	0.78%-1.23%		0.75%-1.25%		0.79%-0.95%
Expected life (in years)	2.0		1.8-4.0		2.6-3.5
Dividend rate		—		—		—
Weighted average fair value of options granted	$1.02		$1.44		$1.71