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NOTE 9 - EMPLOYEE BENEFIT PLANS
 12 Months Ended
Feb. 03, 2013
Pension and Other Postretirement Benefits Disclosure [Text Block]
NOTE 9 – EMPLOYEE BENEFIT PLANS

Employee Savings Plans

We sponsor a tax-qualified 401(k) retirement plan covering substantially all employees.  This plan assists employees in meeting their savings and retirement planning goals through employee salary deferrals and discretionary employer matching contributions.  Company contributions to the plan amounted to $575,000 in fiscal 2013, $602,000 in fiscal 2012 and $571,000 in fiscal 2011.

Executive Benefits

We provide salary continuation and supplemental executive retirement benefits to certain management employees under a supplemental retirement income plan (“SRIP”).  The SRIP provides monthly payments to participants or their designated beneficiaries based on a participant’s “final average monthly earnings” and “specified percentage” participation level as defined in the plan, subject to a vesting schedule that may vary for each participant.  The benefit is payable for a 15-year period following the participant’s termination of employment due to retirement, disability or death.  In addition, the monthly retirement benefit for each participant, regardless of age, becomes fully vested and the present value of that benefit is paid to each participant in a lump sum upon a change in control of the Company as defined in the plan.  The SRIP is unfunded and all benefits are payable solely from the general assets of the Company. The plan liability is based on the aggregate actuarial present value of the vested benefits to which participating employees are currently entitled, but based on the employees’ expected dates of separation or retirement.

Summarized plan information as of each fiscal year-end (the measurement date) is as follows:

   
Fifty-Three Weeks Ended
   
Fifty-Two Weeks Ended
 
   
February 3,
   
January 29,
 
   
2013
   
2012
 
Change in benefit obligation:
           
Beginning projected benefit obligation
  $ 7,569     $ 6,537  
      Service cost
    255       525  
      Interest cost
    297       337  
      Benefits paid
    (485 )     (307 )
      Actuarial (gain) loss
    (201 )     477  
Ending projected benefit obligation (funded status)
  $ 7,435     $ 7,569  
                 
Accumulated benefit obligation
  $ 7,306     $ 7,238  
                 
Amount recognized in the consolidated balance sheets:
               
   Current liabilities
  $ 379     $ 469  
   Non-current liabilities
    7,056       7,100  
      Total
  $ 7,435     $ 7,569  
                 
Other changes recognized in accumulated other comprehensive income
               
   Net gain arising during period
    (58 )     (326 )
   Net periodic benefit cost
    552       862  
   Total recognized in net periodic benefit cost and
      accumulated other comprehensive income
  $ 494     $ 536  

   
Fifty-Three Weeks Ended
   
Fifty-Two Weeks Ended
 
   
February 3,
   
January 29,
   
January 30,
 
   
2013
   
2012
   
2011
 
Net periodic benefit cost
                 
   Service cost
  $ 255     $ 525     $ 583  
   Interest cost
    297       337       340  
      Net periodic benefit cost
  $ 552     $ 862     $ 923  
                         
                         
Assumptions used to determine net periodic benefit cost:
                       
Discount rate (Moody's Composite Bond Rate)
    4.0 %     5.25 %     5.5 %
Increase in future compensation levels
    4.0 %     4.0 %     4.0 %
                         
Estimated Future Benefit Payments:
                       
Fiscal 2014
  $ 379                  
Fiscal 2015
    703                  
Fiscal 2016
    703                  
Fiscal 2017
    703                  
Fiscal 2018
    631                  
Fiscal 2019 through Fiscal 2023
    3,480                  

At February 3, 2013, $202,000, net of tax of $115,000, was in accumulated other comprehensive income. At January 29, 2012, $115,000, net of tax of $64,000, was in accumulated other comprehensive income.

We also provide a life insurance program for certain executives.  The life insurance program provides death benefit protection for these executives during employment up to age 65.  Coverage under the program declines when he attains age 60 and automatically terminates when he attains age 65 or terminates employment with us for any reason, other than death, whichever occurs first.  The life insurance policies funding this program are owned by the Company with a specified portion of the death benefits payable under those policies endorsed to the insured executives’ designated beneficiaries.

Performance Grants

From time to time, the Compensation Committee of our board of directors may award performance grants to certain senior executives under the Company’s Stock Incentive Plan. Payments under these awards are based on our achieving specified performance targets during a designated performance period. In addition, each executive must remain continuously employed with the Company through the end of the performance period. Typically, performance grants can be paid in cash, shares of the Company’s common stock, or both, at the discretion of the Compensation Committee at the time payment is made.

Outstanding performance grants are classified as liabilities since the (i) settlement amount for each grant is not known until after the applicable performance period is completed and (ii) settlement of the grants may be made in common stock, cash or a combination of both.  The estimated cost of each grant is recorded as compensation expense over its performance period when it becomes probable that the applicable performance targets will be achieved.  The expected cost of the performance grants is revalued each reporting period.  As assumptions change regarding the expected achievement of performance targets, a cumulative adjustment is recorded and future compensation expense will increase or decrease based on the currently projected performance levels.  If we determine that it is not probable that the minimum performance thresholds for outstanding performance grants will be met, no further compensation cost will be recognized and any previously recognized compensation cost will be reversed.


During fiscal 2011, the Compensation Committee awarded two performance grants to certain senior executives for the two and three fiscal-year periods ending January 29, 2012 and February 3, 2013, respectively. At January 30, 2011, we concluded that it was unlikely that the minimum performance thresholds for the performance grants for the two fiscal-year period ending January 29, 2012 would be met and, consequently, we reversed accruals related to those performance grants.  During fiscal 2012, we determined that it was unlikely that the minimum performance thresholds for the performance grants for the fiscal three-year period ending February 3, 2013 would be met and, consequently, we reversed accruals related to those performance grants. The performance grants awarded in fiscal 2011 expired without payment because the minimum performance thresholds were not achieved.

During fiscal 2013, the Compensation Committee awarded performance grants for the 2013 and 2014 fiscal years. These awards have three-year performance periods ending on January 25, 2015 and January 15, 2016, respectively. At February 3, 2013, $273,000 was accrued in the accrued salaries, wages and benefits section of our consolidated statements of financial position for the fiscal 2013 performance grants. The performance period for the fiscal 2014 performance awards did not begin until our fiscal 2014 commenced on February 4, 2013. Therefore, no amounts are accrued for these awards at February 3, 2013.