Summary of Significant Accounting Policies (Tables)

12 Months Ended

Feb. 01, 2020

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

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 2019, fiscal 2018 and fiscal 2017 are as follows:

	Fiscal 2019									Fiscal 2018									Fiscal 2017
(in thousands)
	Pension Plans			Foreign Currency			Total			Pension Plans			Foreign Currency			Total			Pension Plans			Foreign Currency			Total
Balance at beginning of fiscal year	$	(5,521	)	$	(662	)	$	(6,183	)	$	(5,840	)	$	(403	)	$	(6,243	)	$	(5,237	)	$	(781	)	$	(6,018	)

Other comprehensive income (loss) before reclassifications, net of taxes		(1,597	)		(83	)		(1,680	)		(746	)		(264	)		(1,010	)		820			393			1,213

Recognition of accumulated foreign currency translation adjustment ⁽¹⁾					792			792			—			—			—			—			—			—

Amounts reclassified from accumulated other comprehensive income (loss), net of taxes ⁽²⁾		640			—			640			352			—			352			670			—			670

Other comprehensive income (loss) for the period		(957	)		709			(248	)		(394	)		(264	)		(658	)		1,490			393			1,883

Remeasurement and reclassification of stranded tax effect ⁽³⁾		—			—			—			713			5			718			—			—			—

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

Balance at end of fiscal year	$	(6,478	)	$	47		$	(6,431	)	$	(5,521	)	$	(662	)	$	(6,183	)	$	(5,840	)	$	(403	)	$	(6,243	)

(1)

In connection with the Company’s closing of its Rochester Clothing store in London, England and exiting its London operations, the Company recognized the accumulated foreign currency translation adjustment as an expense and it has been included in “Exit costs associated with London operations” on the Consolidated Statement of Operations for fiscal 2019.

(2)

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 $640,000, $352,000 and $670,000 for fiscal 2019, fiscal 2018 and fiscal 2017, respectively. There was no corresponding tax benefit.

(3)	Represents the reclassification to retained earnings of the tax benefit associated with comprehensive income earned, adjusted for the effects of ASU 2018-02 which allowed 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 1, 2020		February 2, 2019		February 3, 2018
(in thousands)
Common stock outstanding:
Basic weighted average common shares outstanding		49,992		49,163		48,888
Common stock equivalents – stock options, restricted stock and restricted stock units (RSUs)⁽¹⁾		—		—		—
Diluted weighted average common shares outstanding		49,992		49,163		48,888

(1)

Common stock equivalents, in thousands, of 408 shares, 497 shares and 134 shares for February 1, 2020, February 2, 2019 and February 3, 2018, 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 1, 2020		February 2, 2019		February 3, 2018
(in thousands, except exercise prices)
Stock options (time-vested)		755		942		1,196
RSUs (time-vested)		560		754		732
Restricted and deferred stock		114		75		63
Range of exercise prices of such options	$1.85 - $7.02		$2.25 - $7.02		$1.85-$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 and 2017 set forth below. There were no grants of stock options in fiscal 2019.

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