Fair Value Measurements (Tables)

3 Months Ended

May 04, 2013

Summary of Fair Value Assumptions for Derivative Liabilities

The Series B Preferred shares are required to be measured at fair value each reporting period. The fair value of the Series B Preferred shares was estimated using an option pricing model that requires Level 3 inputs, which are highly subjective and determined using the following significant assumptions:


	May 4, 2013			February 2, 2013
Conversion price	$	1.75		$	1.75
Expected volatility		69	%		68	%
Expected term (in years)		8.60			8.85
Risk free interest rate		1.48	%		2.04	%
Expected dividends	$	—		$	—

Summary of Activity Recorded for Derivatives Using Level 3 Inputs

The following table presents the activity recorded for the derivative liability during the first quarter ended:


	May 4, 2013
	(In thousands)
Beginning balance as of February 2, 2013	$	20,082
Loss on change in fair value		9,290

Ending balance as of May 4, 2013	$	29,372

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

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