Basis of Presentation (Tables)

9 Months Ended

Oct. 31, 2020

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 (loss) and reclassifications from AOCI for the three and nine months ended October 31, 2020 and November 2, 2019, respectively, were as follows:

	October 31, 2020								November 2, 2019
For the three months ended:	(in thousands)
	Pension Plans			Foreign Currency		Total			Pension Plans			Foreign Currency			Total
Balance at beginning of the quarter	$	(5,983	)	$	8	$	(5,975	)	$	(5,229	)	$	(726	)	$	(5,955	)

Other comprehensive income (loss) before reclassifications, net of taxes		77			—		77			27			(17	)		10

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

Amounts reclassified from accumulated other comprehensive income, net of taxes ⁽²⁾		170			—		170			118			—			118

Other comprehensive income (loss) for the period		247			—		247			145			775			920

Balance at end of quarter	$	(5,736	)	$	8	$	(5,728	)	$	(5,084	)	$	49		$	(5,035	)

	October 31, 2020									November 2, 2019
For the nine months ended:	(in thousands)
	Pension Plans			Foreign Currency			Total			Pension Plans			Foreign Currency			Total
Balance at beginning of fiscal year	$	(6,478	)	$	47		$	(6,431	)	$	(5,521	)	$	(662	)	$	(6,183	)

Other comprehensive income (loss) before reclassifications, net of taxes		231			(39	)		192			82			(81	)		1

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

Amounts reclassified from accumulated other comprehensive income, net of taxes ⁽²⁾		511			—			511			355			—			355

Other comprehensive income (loss) for the period		742			(39	)		703			437			711			1,148

Balance at end of quarter	$	(5,736	)	$	8		$	(5,728	)	$	(5,084	)	$	49		$	(5,035	)

(1)

In connection with the Company’s closing its Rochester Clothing store in London, England and exiting its London operations, the Company recognized the accumulated foreign currency translation adjustment as an expense, which was included in “Exit costs associated with London operations” on the Consolidated Statement of Operations for the three and nine months ended November 2, 2019.

(2)

Includes the amortization of the unrecognized 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 $170,000 and $160,000 for the three-month period ended October 31, 2020 and November 2, 2019, respectively, and $511,000 and $481,000 for the nine-month period ended October 31, 2020 and November 2, 2019, respectively. As a result of the adoption of ASU 2019-12, as discussed below, there was no tax provision for the third quarter and first nine months of fiscal 2020. The tax effect for the third quarter and first nine months of fiscal 2019 was $42,000 and $126,000, respectively.

Valuation Assumptions for Stock Options

The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model based on the assumptions in the table below as it relates to stock options granted during the first nine months of fiscal 2020. There were no grants of stock options during the first nine months of fiscal 2019.

For the nine months ended:	October 31, 2020
Expected volatility	82.3% - 87.8%
Risk-free interest rate	0.22% - 0.27%
Expected life	3.0 - 4.0 yrs.
Dividend rate		—
Weighted average fair value of options granted	$0.32