Stock-Based Compensation

9 Months Ended

Oct. 27, 2012

Stock-Based Compensation [Abstract]

Share-Based Compensation

Note 5 - Stock-Based Compensation

On April 27, 2012, we completed a three-for-two stock split of the shares of our common stock, which was effected in the form of a stock dividend. All share and per share amounts referenced below give effect to the stock split and have been adjusted retroactively for all periods presented.

Stock-based compensation includes stock options, stock appreciation rights, restricted stock grants and certain transactions under our stock-based compensation plans. Additionally, we recognize stock-based compensation expense for the discount on shares sold to employees through our employee stock purchase plan. Stock-based compensation expense for stock options, stock appreciation rights, and the employee stock purchase plan was $114,000 before the income tax benefit of $45,000 and $285,000 before the income tax benefit of $113,000 for the thirteen and thirty-nine weeks ended October 27, 2012, respectively. For the thirteen and thirty-nine weeks ended October 29, 2011, stock-based compensation expense was $58,000 before the income tax benefit of $22,000 and $225,000 before the income tax benefit of $86,000, respectively.

The following section summarizes the share transactions for our restricted stock awards:

	Number of Shares			Weighted- Average Grant Date Fair Value
Non-vested at January 28, 2012		277,145		$	17.31
Granted		329,154			19.39
Vested		(2,250	)		17.66
Forfeited or expired		(113,015	)		17.17
Non-vested at October 27, 2012		491,034		$	18.73

The weighted-average grant date fair value of stock awards granted during the thirty-nine week periods ended October 27, 2012 and October 29, 2011 was $19.39 and $17.08, respectively. The total fair value at grant date of previously non-vested stock awards that vested during the first nine months of fiscal 2012 and the first nine months of fiscal 2011 was $40,000 and $5.8 million, respectively. Of the 113,015 restricted stock awards that were forfeited or that expired during the first nine months of fiscal 2012, 22,539 shares were restricted stock awards that expired unvested, as the performance measure was not achieved. These awards represented the third tier of the restricted stock granted on March 13, 2006 that expired in the first quarter of fiscal 2012. An additional 77,500 shares of non-vested restricted stock were forfeited upon the retirement of our former President and Chief Executive Officer on October 27, 2012.

The following section summarizes information regarding stock-based compensation expense recognized for restricted stock awards:

(In thousands)	Thirteen Weeks Ended October 27, 2012		Thirteen Weeks Ended October 29, 2011		Thirty-nine Weeks Ended October 27, 2012		Thirty-nine Weeks Ended October 29, 2011
Stock-based compensation expense before the recognized income tax benefit	$	555	$	533	$	3,273	$	2,188
Income tax benefit	$	220	$	203	$	1,298	$	834

During the fourth quarter of fiscal 2011, stock-based compensation expense was reduced by $716,000 due to the reversal of cumulative prior period expense for performance-based awards that management deemed were not probable to vest prior to their expiration. However, based on our improved financial outlook, a cumulative catch-up of $789,000 in expense was recorded during the second quarter of fiscal 2012 as management deemed that these awards are probable to vest prior to their expiration. During the third quarter of fiscal 2012, a cumulative reduction in stock-based compensation expense of $835,000 was recorded as we increased our applied forfeiture rate on the non-vested performance-based awards due to the retirement of our former President and Chief Executive Officer.

As of October 27, 2012, approximately $5.6 million of unrecognized compensation expense remained related to both our performance-based and service-based non-vested stock awards. This expense is expected to be recognized over a weighted average period of approximately 1.8 years. This incorporates our current assumptions with respect to the estimated requisite service period required to achieve the designated performance conditions for performance-based stock awards.