Summary of Significant Accounting Policies (Tables)

12 Months Ended

Feb. 02, 2019

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 3, 2018 to February 2, 2019:

(in thousands)	February 3, 2018		Additions		Impairment			Amortization			February 2, 2019
"Rochester" trademark	$	1,500	$	—	$	(1,500	)	$	—		$	—
"Casual Male" trademark		292		—		—			(292	)		—
"dxl.com" domain		—		1,150		—			—			1,150
Other intangibles ⁽¹⁾		29		—		—			(29	)		—
Total intangible assets	$	1,821	$	1,150	$	(1,500	)	$	(321	)	$	1,150

(1)	Other intangibles consisted of customer lists and were amortized based on an estimated economic useful life of 16 years.

Other Comprehensive Income (loss) 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 (loss) and reclassifications from AOCI for fiscal 2018, fiscal 2017 and fiscal 2016 are as follows:

	Fiscal 2018									Fiscal 2017									Fiscal 2016
(in thousands)
	Pension Plans			Foreign Currency			Total			Pension Plans			Foreign Currency			Total			Pension Plans			Foreign Currency			Total
Balance at beginning of fiscal year	$	(5,840	)	$	(403	)	$	(6,243	)	$	(5,237	)	$	(781	)	$	(6,018	)	$	(6,113	)	$	(539	)	$	(6,652	)

Other comprehensive income (loss) before reclassifications, net of taxes		(746	)		(264	)		(1,010	)		820			393			1,213			171			(242	)		(71	)

Amounts reclassified from accumulated other comprehensive income (loss), net of taxes ⁽¹⁾		352			—			352			670			—			670			705			—			705

Other comprehensive income (loss) for the period		(394	)		(264	)		(658	)		1,490			393			1,883			876			(242	)		634

Remeasurement and reclassification of stranded tax effect ⁽²⁾		713			5			718			—			—			—			—			—			—

Adjustment to reclassify intraperiod tax allocation to accumulated deficit (Note E)		—			—			—			(2,093	)		(15	)		(2,108	)		—			—			—

Balance at end of fiscal year	$	(5,521	)	$	(662	)	$	(6,183	)	$	(5,840	)	$	(403	)	$	(6,243	)	$	(5,237	)	$	(781	)	$	(6,018	)

(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 $352,000, $670,000 and $705,000 for fiscal 2018, fiscal 2017 and fiscal 2016, respectively. There was no corresponding tax benefit.

(2)	Represents the reclassification to retained earnings of the tax benefit associated with comprehensive income earned, adjusted for the effects of ASU 2018-02 which allows for the reclassification to retained earnings of stranded tax effect as a result of the 2017 Tax Act.

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
	February 2, 2019		February 3, 2018		January 28, 2017
(in thousands)
Common stock outstanding:
Basic weighted average common shares outstanding		49,163		48,888		49,544
Common stock equivalents – stock options, restricted stock and restricted stock units (RSUs) ⁽¹⁾		—		—		—
Diluted weighted average common shares outstanding		49,163		48,888		49,544

(1)	Common stock equivalents, in thousands, of 497 shares, 134 shares and 439 shares for February 2, 2019, February 3, 2018 and January 28, 2017, 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
	February 2, 2019		February 3, 2018		January 28, 2017
(in thousands, except exercise prices)
Stock options (time-vested)		942		1,196		1,162
RSUs (time-vested)		754		732		370
Restricted and deferred stock		75		63		8
Range of exercise prices of such options	$2.25 - $7.02		$1.85-$7.52		$4.49-$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 2018, 2017 and 2016:

Fiscal years ended:	February 2, 2019		February 3, 2018		January 28, 2017
Expected volatility	48.9% - 57.1%		49.9%		39.3%-42.7%
Risk-free interest rate	2.55% -2.63%		1.44%		0.78%-1.23%
Expected life (in years)	3.0 - 4.5		3.0		2.0
Dividend rate		—		—		—
Weighted average fair value of options granted	$	1.06	$	0.65	$1.02