SSI - 12.31.13 11K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
Form 11-K

(Mark One)
þ
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2013

or
¨
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from               to              

Commission file number 1-14035


A.  Full title of the plan and the address of the plan, if different from that of the issuer named below:

Stage Stores, Inc. Nonqualified Deferred Compensation Plan


B.  Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

Stage Stores, Inc.
10201 Main Street
Houston, Texas 77025



TABLE OF CONTENTS
 
 
 
 
 
 
 
 
 
 
 
Page No.
 
 
 
 
 
 
 
 
Report of Independent Registered Public Accounting Firm
 
3
 
 
 
 
Statements of Financial Condition -
 
 
 
December 31, 2013 and 2012
 
4
 
 
 
 
Statements of Income and Changes in Plan Equity -
 
 
 
Years Ended December 31, 2013, 2012 and 2011
 
5
 
 
 
 
Notes to Financial Statements
 
6
 
 
 
 
Schedules I, II and III have been omitted because the required information is shown in the financial statements or notes, or the information is not applicable to this Plan.
 
 
 
 
 
 
SIGNATURE
 
15
 
 
 
 
Exhibit 23 - Consent of Independent Registered Public Accounting Firm
 
 

2


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
 
Stage Stores, Inc. Nonqualified Deferred Compensation Plan
Houston, Texas
 
We have audited the accompanying statements of financial condition of the Stage Stores, Inc. Nonqualified Deferred Compensation Plan (the "Plan") as of December 31, 2013 and 2012, and the related statements of income and changes in plan equity for each of the three years in the period ended December 31, 2013.  These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits.
 
We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
 
In our opinion, such financial statements present fairly, in all material respects, the financial condition of the Plan at December 31, 2013 and 2012, and the income and changes in plan equity for each of the three years in the period ended December 31, 2013, in conformity with accounting principles generally accepted in the United States of America. 
 
 
/s/ Deloitte & Touche LLP
Houston, Texas
March 28, 2014

3



STAGE STORES, INC. NONQUALIFIED DEFERRED COMPENSATION PLAN
STATEMENTS OF FINANCIAL CONDITION
As of December 31, 2013 and 2012
 
 
2013
 
2012
Assets
 
 
 
 
Investments, at fair value:
 
 
 
 
           Mutual funds
 
$
15,374,276

 
$
11,579,035

Stage Stores, Inc. common stock, as determined by quoted market prices - 61,730 and 52,561 shares with a cost basis of $958,112 and $688,531, respectively
 
1,371,650

 
1,302,466

Total investments
 
16,745,926

 
12,881,501

Cash
 
—

 
4,290

Total assets and plan equity
 
$
16,745,926

 
$
12,885,791

 
 
 
The accompanying notes are an integral part of these financial statements.

4

 

STAGE STORES, INC. NONQUALIFIED DEFERRED COMPENSATION PLAN
STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY
For the Years Ended December 31, 2013, 2012 and 2011
 
 
2013
 
2012
 
2011
Additions
 
 
 
 
 
 
Contributions:
 
 
 
 
 
 
Participant
 
$
2,368,487

 
$
1,141,544

 
$
1,510,866

Employer
 
1,488,348

 
834,325

 
1,029,020

Net investment income:
 
 
 
 

 
 

Dividend income on investments in:
 
 
 
 

 
 

Mutual funds
 
931,135

 
211,237

 
195,352

Stage Stores, Inc. common stock
 
27,537

 
24,433

 
20,812

Net appreciation (depreciation) in fair value of investments
 
1,543,193

 
1,880,899

 
(1,199,129
)
Total additions
 
6,358,700

 
4,092,438

 
1,556,921

Deductions
 
 
 
 

 
 

Distributions to participants
 
2,498,565

 
3,265,514

 
809,337

Net increase in plan equity
 
3,860,135

 
826,924

 
747,584

Plan equity at beginning of year
 
12,885,791

 
12,058,867

 
11,311,283

Plan equity at end of year
 
$
16,745,926

 
$
12,885,791

 
$
12,058,867


The accompanying notes are an integral part of these financial statements.

5


Stage Stores, Inc. Nonqualified Deferred Compensation Plan
Notes to Financial Statements
December 31, 2013, 2012 and 2011

1. Plan Description
The following brief description of the Stage Stores, Inc. Nonqualified Deferred Compensation Plan (the "Plan") is provided for general information purposes only. Participants should refer to the Plan document for more complete information.
General
The Plan is a defined contribution plan and was established on January 1, 2002 by Stage Stores, Inc. (the "Company") for the purpose of attracting and retaining highly qualified individuals for the successful conduct of the Company's business by helping to provide for the retirement of the Company's key employees selected to participate in the Plan.
Administration of the Plan
Since April 1, 2013, Fidelity Management Trust Company (the "Plan Administrator") has administered all mutual funds and the Company Stock Investment Option, executed all investment transactions, served as the Plan's trustee and held the Plan assets. From July 1, 2010 until April 1, 2013, Wilmington Trust Retirement and Institutional Services Company administered all mutual funds, executed all investment transactions and held the Plan assets; UBS Financial Services, Inc. administered the Company Stock Investment Option; and Pen Cal Administrators, Inc. served as the Plan's recordkeeper.
      Eligibility and Vesting
The Plan covers key employees ("Participants"), the selection of which remains at the sole discretion of the Plan Administrative Committee (the "Committee") of the Company, as defined in the Plan document. Participation is voluntary and Participants can elect to contribute up to fifty percent (50%) of the Participant's compensation and up to one hundred percent (100%) of the Participant's bonus. Employer matching contributions are determined by the Committee from year to year. The Participant and employer matching contributions are vested 100% in the Plan at all times.
Participant Accounts
The Company maintains a Participant Account ("Account") for each Participant deferring compensation to the Plan. The Account is adjusted for the Participant deferral/contribution, employer match and any investment gain or loss (on investments in which the Account balance is placed) and any payment or distribution attributable to that Account.
Effective June 5, 2008, the Company amended the Plan to include a stock investment option wherein Participants can elect to invest a portion of their deferrals in the Company's common stock (the "Company Stock Investment Option"). Effective April 1, 2013, the Company amended and restated the Plan and the Terms and Conditions of the Company Stock Investment Option to provide that Participant contributions and employer matching contributions designated toward the purchase of Company stock are applied to the purchase of Company stock in the open market in "real time" as those contributions are received rather than on the last trading day of the calendar month. These shares are held in a grantor trust. Once Company stock has been credited to the Participant's Account, it may not be transferred or liquidated by the Participant and shall remain in the Account until such date as the Participant is no longer an employee of the Company and for a period of six months thereafter, at which time the Company stock shall be transferred to the Participant's personal brokerage account, as designated at that time by the Participant; hence, the Company Stock Investment Option portion of the Account cannot be settled in cash. The number of shares of common stock credited to a Participant's Account shall be adjusted, as appropriate, to reflect any stock split, any dividends or deemed dividends, any recapitalization of the Company, or any reorganization of the Company. Shares of common stock will be issued in the name of the Plan. During the period the common stock is held by the Plan, Participants will not have the right to vote those shares of common stock and Participants will not have any other incidents of ownership or rights as a shareholder with respect to those shares of common stock.
          Payment of Benefits
On termination of service, a participant may generally elect to receive either a lump sum amount equal to the value of the participant's vested interest in his or her account, or annual installments over a 2 to 5 year period.
          

6

Plan Termination
          The Company retains the unilateral power to amend or terminate the Plan at any time.  No such amendment or termination shall adversely affect any Participant or their beneficiaries with respect to their right to receive the value of their vested Accounts, determined as of the later of the date that the Plan amendment or termination is adopted or by its terms to be effective, without the consent of affected Participants or their beneficiaries.
2.            Significant Accounting Policies
          Basis of Accounting.  The financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.
          Investment Valuation and Income Recognition.  The Plan's investments are stated at fair value. Fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Plan's investments include publicly traded mutual funds and shares of Company stock both of which are valued based on quoted market prices on the last business day of the Plan year.  The change in market value of the investments is reflected in the Statements of Income and Changes in Plan Equity as appreciation /depreciation in the fair market value of investments.  Refer to Note 4 for further details related to the Plan's fair value valuation methods.  Realized gains and losses on investments are calculated using average cost.  Purchases and sales of securities are recorded on a trade-date basis.  Dividends are recorded on the ex-dividend date.  
          Distributions.  Distributions to participants are recorded when paid.
          Use of Estimates.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Committee to make estimates and assumptions that affect the reported amounts of assets and changes therein, and disclosure of contingent assets at the date of the financial statements.  Actual results could differ from those estimates.
          Risks and Uncertainties. Investment securities, in general, are exposed to various risks, such as interest rate, liquidity risk, credit and overall market volatility risk.  Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such a change could materially affect the amount reported in the Statements of Financial Condition.

7


3.            Investments
 
          The Plan's investments that represented 5% or more of the Plan's net assets available for plan benefits as of December 31, 2013 and 2012 are as follows:

 
 
2013
 
2012
Fidelity Adv New Insights Z
 
$
2,555,750

 
$
—

Blackrock Intl Opportunities Inst
 
1,609,723

 
—

Stage Stores, Inc. common stock (1)
 
1,371,650

 
1,302,466

Columbia Balanced R5
 
1,304,671

 
—

Fidelity Contrafund
 
1,026,122

 
—

Lord Abbett Fundamental Equity I
 
1,014,603

 
—

Oppenheimer Developing Markets I
 
955,604

 
—

American Century Equity Income
 
895,833

 
—

Fidelity Adv New Insights A
 
—

 
1,880,988

Columbia Balanced A
 
—

 
1,103,359

Oppenheimer Developing Markets A
 
—

 
1,091,914

American Century Equity Income A
 
—

 
1,066,209

Fidelity Adv Treasury Money Market CI T
 
—

 
1,043,234

Blackrock International Opportunities Port A
 
—

 
757,180

John Hancock Global Opp CL A
 
—

 
662,296

Total
 
10,733,956

 
8,907,646

Other, individually representing less than 5% of total
 
6,011,970

 
3,973,855

Investments, at fair value
 
$
16,745,926

 
$
12,881,501

 
 
 
 
 
(1) Indicates party in interest to the Plan
 
 
 
 
 
         During the years ended December 31, 2013, 2012 and 2011, the Plan's investments, including gains and losses on investments bought and sold as well as held during the year, appreciated (depreciated) in value as follows:
 
 
 
2013
 
2012
 
2011
Realized gain (loss) on investments in mutual funds
 
$
1,307,495

 
$
325,377

 
$
(611,200
)
Unrealized gain (loss) on investments in mutual funds
 
 
 
 

 
 

Domestic equities
 
195,495

 
375,409

 
61,453

International equities
 
97,278

 
289,405

 
(395,350
)
Bond
 
(3,873
)
 
21,039

 
(19,532
)
Balanced
 
100,731

 
101,277

 
(8,257
)
Target date
 
3,049

 
1,389

 
—

Stage Stores, Inc. common stock
 
(156,982
)
 
767,003

 
(226,243
)
Net appreciation (depreciation) in fair value of investments
 
$
1,543,193

 
$
1,880,899

 
$
(1,199,129
)


8



The following tables set forth the detailed investment activities by individual fund for the following periods:
 
 
 
 
 
 
Net Investment Income
 
 
 
 
 
 
 
 
Investments at 1/1/13
 
Contributions
 
Dividend Income
 
Realized Gain (Loss) on Investment
 
Unrealized Gain (Loss) on Investment
 
Distributions
 
Transfers
 
Investments at 12/31/13
Mutual funds:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
American Century Equity Income
 
$
—

 
$
4,288

 
$
60,062

 
$
(1,450
)
 
$
(52,989
)
 
$
(155,472
)
 
$
1,041,394

 
$
895,833

American Century Equity Income A
 
1,066,209

 
115,091

 
17,614

 
92,965

 
89,157

 
(19,065
)
 
(1,361,971
)
 
—

American Century Mid Cap Value A
 
144,941

 
39,933

 
1,579

 
37,052

 
16,824

 
—

 
(240,329
)
 
—

American Century Mid Cap Value Inv
 
—

 
3,982

 
28,318

 
—

 
(20,654
)
 
—

 
444,588

 
456,234

Blackrock Equity Dividend A
 
494,550

 
276,466

 
10,886

 
83,227

 
42,200

 
(11,688
)
 
(895,641
)
 
—

Blackrock Equity Dividend I
 
—

 
17,693

 
4,309

 
703

 
16,846

 
(60,714
)
 
804,160

 
782,997

Blackrock Intl Opportunities Port A
 
757,180

 
172,713

 
—

 
115,209

 
39,967

 
(7,262
)
 
(1,077,807
)
 
—

Blackrock Intl Opportunities Inst
 
—

 
13,255

 
6,519

 
110

 
52,761

 
(71,121
)
 
1,608,199

 
1,609,723

Columbia Balanced A
 
1,103,359

 
200,396

 
7,184

 
138,280

 
78,903

 
—

 
(1,528,122
)
 
—

Columbia Balanced R5
 
—

 
10,980

 
4,320

 
295

 
21,828

 
(141,249
)
 
1,408,497

 
1,304,671

Dreyfus S&P 500 Index
 
4,682

 
52,312

 
—

 
9,257

 
619

 
—

 
(66,870
)
 
—

Fidelity Adv Div Gr A
 
145,508

 
28,391

 
—

 
29,748

 
13,623

 
—

 
(217,270
)
 
—

Fidelity Adv Dividend Growth Z
 
—

 
4,642

 
2,056

 
—

 
4,732

 
—

 
219,036

 
230,466

Fidelity Adv Freedom
 
—

 
4,846

 
142

 
1,319

 
—

 
—

 
(6,307
)
 
—

Fidelity Adv Freedom 2025-A
 
11,645

 
69,221

 
1,890

 
1,821

 
687

 
—

 
(85,264
)
 
—

Fidelity Adv Freedom 2030-A
 
17,489

 
23,243

 
859

 
2,348

 
1,025

 
—

 
(44,964
)
 
—

Fidelity Adv Freedom 2035-A
 
17,539

 
23,243

 
1,218

 
2,519

 
1,178

 
—

 
(45,697
)
 
—

Fidelity Adv Freedom 2040-A
 
6,965

 
22,991

 
750

 
1,876

 
524

 
—

 
(33,106
)
 
—

Fidelity Adv Freedom 2045-A
 
—

 
1,094

 
—

 
43

 
—

 
—

 
(1,137
)
 
—

Fidelity Adv Freedom 2050-A
 
—

 
2,188

 
—

 
85

 
—

 
—

 
(2,273
)
 
—

Fidelity Adv Gov Income A
 
—

 
33,660

 
117

 
(99
)
 
—

 
—

 
(33,678
)
 
—

Fidelity Adv Gov Income Inst
 
—

 
1,295

 
94

 
—

 
(441
)
 
—

 
33,680

 
34,628

Fidelity Adv Materials Inst
 
—

 
2,725

 
2,513

 
—

 
1,687

 
—

 
101,825

 
108,750

Fidelity Adv Mid Cap II A
 
365,294

 
90,719

 
4,993

 
87,124

 
34,693

 
(7,192
)
 
(575,631
)
 
—

Fidelity Adv Mid Cap II z
 
—

 
7,763

 
66,178

 
48

 
(40,892
)
 
(34,874
)
 
632,245

 
630,468

Fidelity Adv New Insights A
 
1,880,988

 
314,236

 
—

 
396,398

 
165,412

 
(3,486
)
 
(2,753,548
)
 
—

Fidelity Adv New Insights Z
 
—

 
13,587

 
304,355

 
1,293

 
(223,222
)
 
(200,824
)
 
2,660,561

 
2,555,750

Fidelity Adv Small Cap A
 
220,064

 
80,448

 
—

 
69,339

 
27,777

 
(3,774
)
 
(393,854
)
 
—

Fidelity Adv Treasury Money Mkt CI T
 
1,043,234

 
488,724

 
115

 
—

 
—

 
(1,166,761
)
 
(365,312
)
 
—

Fidelity Advisor Income A
 
88

 
—

 
—

 
—

 
(1
)
 
—

 
(87
)
 
—

Fidelity Contrafund
 
559,962

 
273,868

 
70,530

 
17,850

 
149,626

 
(76,739
)
 
31,025

 
1,026,122

Fidelity Money Market Trust Ret
 
—

 
8,848

 
6

 
—

 
—

 
(57,538
)
 
559,133

 
510,449

Fidelity Spartan 500 Index
 
—

 
10,534

 
1,634

 
29

 
6,693

 
—

 
304,775

 
323,665

Franklin High Income A
 
242,291

 
79,754

 
19,335

 
(1,949
)
 
1,025

 
(9,119
)
 
(331,337
)
 
—

Franklin High Income Adv
 
—

 
4,648

 
1,100

 
805

 
914

 
(14,395
)
 
299,424

 
292,496

Heartland Value Plus IS
 
436,709

 
166,874

 
—

 
97,476

 
41,375

 
—

 
(742,434
)
 
—

Heartland Value Plus IV
 
—

 
8,275

 
56,424

 
2,269

 
(29,105
)
 
—

 
509,519

 
547,382

John Hancock Global Opp CL A
 
662,296

 
78,605

 
—

 
(34,409
)
 
578

 
—

 
(707,070
)
 
—


9

Lord Abbett AII Value A
 
507,395

 
225,221

 
—

 
122,749

 
64,227

 
—

 
(919,592
)
 
—

Lord Abbett Fundamental Equity I
 
—

 
10,286

 
147,205

 
(16,761
)
 
(86,572
)
 
(113,486
)
 
1,073,931

 
1,014,603

MFS New Discovery R4
 
—

 
5,601

 
42,553

 
(613
)
 
(13,462
)
 
(94,172
)
 
591,976

 
531,883

NB Real Estate Inst
 
—

 
4,203

 
13,795

 
—

 
(13,100
)
 
—

 
231,569

 
236,467

Oppenheimer Developing Markets A
 
1,091,914

 
310,759

 
—

 
78,725

 
590

 
(3,286
)
 
(1,478,702
)
 
—

Oppenheimer Developing Markets I
 
—

 
15,546

 
9,772

 
(573
)
 
4,737

 
—

 
926,122

 
955,604

Pimco Total Return A
 
521,753

 
143,310

 
10,400

 
(16,878
)
 
(927
)
 
(17,310
)
 
(640,348
)
 
—

Pimco Total Return Inst
 
—

 
9,415

 
3,852

 
(2,242
)
 
(6,535
)
 
(98,640
)
 
434,036

 
339,886

T. R. Price Retirement 2025
 
—

 
8,783

 
1,357

 
—

 
(273
)
 
—

 
40,429

 
50,296

T. R. Price Retirement 2035
 
—

 
2,130

 
1,387

 
—

 
(220
)
 
—

 
44,964

 
48,261

T. R. Price Retirement 2045
 
—

 
1,911

 
1,213

 
—

 
52

 
—

 
45,697

 
48,873

T. R. Price Retirement 2050
 
—

 
2,613

 
922

 
—

 
67

 
—

 
33,106

 
36,708

T.R. Price Retirement 2030
 
—

 
328

 
34

 
—

 
6

 
—

 
1,137

 
1,505

T.R.Price Retirement 2040
 
—

 
438

 
71

 
—

 
3

 
—

 
2,273

 
2,785

T.R.Price Retirement Inc
 
—

 
1,454

 
1,044

 
—

 
(556
)
 
—

 
55,433

 
57,375

Templeton Global Bond A
 
276,980

 
71,029

 
9,833

 
(8,464
)
 
1,036

 
(3,195
)
 
(347,219
)
 
—

Templeton Global Bond Adv
 
—

 
4,258

 
2,136

 
(29
)
 
1,612

 
(38,244
)
 
333,061

 
302,794

Wasatch Intl Growth
 
—

 
4,721

 
10,461

 
—

 
(1,355
)
 
—

 
423,775

 
437,602

Stages Stores, Inc common stock
 
1,302,466

 
287,588

 
27,537

 
—

 
(156,982
)
 
(88,959
)
 
—

 
1,371,650

 
 
$
12,881,501

 
$
3,861,125

 
$
958,672

 
$
1,307,495

 
$
235,698

 
$
(2,498,565
)
 
$
—

 
16,745,926

 














10

 
 
 
 
 
 
Net Investment Income
 
 
 
 
 
 
 
 
Investments at 1/1/12
 
Contributions
 
Dividend Income
 
Realized Gain (Loss) on Investment
 
Unrealized Gain (Loss) on Investment
 
Distributions
 
Transfers
 
Investments at 12/31/12
Mutual funds:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
American Century Equity Income A
 
$
907,941

 
$
98,221

 
$
33,078

 
$
24,695

 
$
52,121

 
$
(78,366
)
 
$
28,519

 
$
1,066,209

American Century Mid Cap Value A
 
2,496

 
17,652

 
5,203

 
923

 
10,564

 
—

 
108,103

 
144,941

Blackrock Equity Dividend A
 
3,475

 
89,158

 
7,534

 
5

 
16,530

 
—

 
377,848

 
494,550

Blackrock Intl Opportunities Port A
 
699,957

 
130,074

 
10,491

 
22,224

 
99,977

 
(168,194
)
 
(37,349
)
 
757,180

Columbia Balanced A
 
857,429

 
137,815

 
11,887

 
10,230

 
101,277

 
(76,218
)
 
60,939

 
1,103,359

Dreyfus S&P 500 Index
 
157

 
4,330

 
144

 
—

 
51

 
—

 
—

 
4,682

Fidelity Adv Div Gr A
 
—

 
5,585

 
1,092

 
—

 
15,600

 
—

 
123,231

 
145,508

Fidelity Adv Freedom 2025-A
 
—

 
11,161

 
213

 
—

 
271

 
—

 
—

 
11,645

Fidelity Adv Freedom 2030-A
 
—

 
16,742

 
319

 
—

 
428

 
—

 
—

 
17,489

Fidelity Adv Freedom 2035-A
 
—

 
16,742

 
281

 
—

 
516

 
—

 
—

 
17,539

Fidelity Adv Freedom 2040-A
 
—

 
6,682

 
109

 
—

 
174

 
—

 
—

 
6,965

Fidelity Adv Mid Cap II A
 
5,930

 
36,800

 
17,420

 
—

 
4,230

 
—

 
300,914

 
365,294

Fidelity Adv New Insights A
 
1,994,202

 
258,701

 
7,585

 
84,682

 
211,842

 
(198,303
)
 
(477,721
)
 
1,880,988

Fidelity Adv Small Cap A
 
6,188

 
33,210

 
689

 
(66
)
 
18,644

 
—

 
161,399

 
220,064

Fidelity Adv Treasury Money Mkt CI T
 
2,121,315

 
227,837

 
196

 
—

 
—

 
(1,517,643
)
 
211,529

 
1,043,234

Fidelity Advisor Income A
 
213,034

 
4,285

 
860

 
574

 
(2
)
 
—

 
(218,663
)
 
88

Fidelity Contrafund
 
76,119

 
135,594

 
5,868

 
5,650

 
17,077

 
—

 
319,654

 
559,962

Franklin High Inc A
 
557,536

 
67,527

 
22,980

 
16,178

 
12,080

 
(5,424
)
 
(428,586
)
 
242,291

Heartland Value Plus IS
 
32,850

 
87,466

 
16,464

 
(7,407
)
 
(3,641
)
 
—

 
310,977

 
436,709

John Hancock Global Opp CL A
 
1,408,680

 
117,742

 
4,870

 
94,163

 
47,451

 
(270,536
)
 
(740,074
)
 
662,296

Lord Abbett AII Value A
 
483,361

 
104,404

 
8,911

 
14,974

 
32,391

 
(140,502
)
 
3,856

 
507,395

Oppenheimer Developing Markets A
 
743,439

 
176,617

 
4,257

 
33,075

 
141,977

 
(299,447
)
 
291,996

 
1,091,914

Pimco Total Return A
 
505,436

 
112,613

 
30,919

 
12,111

 
2,335

 
(5,083
)
 
(136,578
)
 
521,753

Templeton Global Bond A
 
440,754

 
56,361

 
19,867

 
13,366

 
6,626

 
—

 
(259,994
)
 
276,980

Stage Stores, Inc. common stock
 
922,377

 
94,451

 
24,433

 
—

 
767,003

 
(505,798
)
 
—

 
1,302,466

 
 
$
11,982,676

 
$
2,047,770

 
$
235,670

 
$
325,377

 
$
1,555,522

 
$
(3,265,514
)
 
$
—

 
$
12,881,501



11

 
 
 
 
 
 
Net Investment Income
 
 
 
 
 
 
 
 
Investments at 1/1/11
 
Contributions
 
Dividend Income
 
Realized (Loss) Gain on Investment
 
Unrealized (Loss) Gain
on Investment
 
Distributions
 
Transfers
 
Investments at 12/31/11
Mutual funds:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
American Century Equity Income A
 
$
—

 
$
38,680

 
$
14,722

 
$
(6,034
)
 
$
38,419

 
$
(42,777
)
 
$
864,931

 
$
907,941

AMCAP Fund A
 
1,188,197

 
177,456

 
4,970

 
(50,253
)
 
—

 
(18,462
)
 
(1,301,908
)
 
—

American Balanced Fund A
 
927,541

 
145,754

 
11,115

 
(9,867
)
 
—

 
—

 
(1,074,543
)
 
—

American High-Income Trust A
 
181,326

 
48,525

 
10,219

 
(9,301
)
 
—

 
(4,766
)
 
(226,003
)
 
—

Capital World Bond Fund A
 
245,358

 
44,160

 
3,930

 
11,606

 
—

 
(46,599
)
 
(258,455
)
 
—

Intermediate Bond Fund of America A
 
223,170

 
66,300

 
3,549

 
4,721

 
—

 
(30,792
)
 
(266,948
)
 
—

New World Fund A
 
1,048,028

 
184,513

 
—

 
(75,221
)
 
—

 
(34,082
)
 
(1,123,238
)
 
—

SMALLCAP World Fund A
 
988,073

 
165,722

 
—

 
(102,077
)
 
—

 
(8,806
)
 
(1,042,912
)
 
—

Washington Mutual Investors Fund A
 
990,990

 
152,747

 
11,650

 
(15,925
)
 
—

 
(54,409
)
 
(1,085,053
)
 
—

Capital World Growth and Income Fund A
 
893,973

 
127,848

 
14,303

 
(70,955
)
 
—

 
(44,057
)
 
(921,112
)
 
—

American Century Mid Cap Value A
 
—

 
2,443

 
109

 
—

 
(56
)
 
—

 
—

 
2,496

EuroPacific Growth Fund A
 
756,360

 
153,561

 
—

 
(65,598
)
 
—

 
(23,320
)
 
(821,003
)
 
—

The Growth Fund of America A
 
1,264,597

 
201,759

 
—

 
(76,418
)
 
—

 
(48,544
)
 
(1,341,394
)
 
—

The Investment Company of America A
 
620,295

 
94,722

 
6,131

 
(47,735
)
 
—

 
—

 
(673,413
)
 
—

American Funds Money Market Fund
 
902,664

 
261,821

 
—

 
—

 
—

 
(260,327
)
 
(904,158
)
 
—

Blackrock Equity Dividend A
 
—

 
3,362

 
19

 
6,462

 
(46
)
 
—

 
(6,322
)
 
3,475

Blackrock Intl Opportunities Port A
 
—

 
48,427

 
12,486

 
(8,131
)
 
(70,058
)
 
(4,916
)
 
722,149

 
699,957

Columbia Balanced A
 
—

 
45,232

 
33,272

 
(2,221
)
 
(8,257
)
 
(5,143
)
 
794,546

 
857,429

Dreyfus S&P 500 Index
 
—

 
155

 
3

 
—

 
(1
)
 
—

 
—

 
157

Fidelity Adv Mid Cap II A
 
—

 
6,076

 
—

 
—

 
(146
)
 
—

 
—

 
5,930

Fidelity Adv New Insights A
 
—

 
111,161

 
—

 
(26,470
)
 
13,488

 
(46,146
)
 
1,942,169

 
1,994,202

Fidelity Adv Small Cap A
 
—

 
6,076

 
424

 
—

 
(312
)
 
—

 
—

 
6,188

Fidelity Adv Treasury Money Mkt CI T
 
—

 
81,728

 
41

 
—

 
—

 
—

 
2,039,546

 
2,121,315

Fidelity Advisor Income A
 
—

 
667

 
2,750

 
—

 
(2,107
)
 
—

 
211,724

 
213,034

Fidelity Contrafund
 
—

 
15,500

 
110

 
11,936

 
3,323

 
—

 
45,250

 
76,119

Franklin High Inc A
 
—

 
19,354

 
7,570

 
99

 
9,680

 
(19,274
)
 
540,107

 
557,536

Heartland Value Plus IS
 
—

 
5,876

 
586

 
9,379

 
2,258

 
—

 
14,751

 
32,850

John Hancock Global Opp CL A
 
—

 
73,613

 
7,025

 
(48,033
)
 
(236,216
)
 
(45,259
)
 
1,657,550

 
1,408,680

Lord Abbett AII Value A
 
—

 
32,037

 
16,001

 
(15,064
)
 
4,526

 
(5,605
)
 
451,466

 
483,361

Oppenheimer Developing Markets A
 
—

 
55,738

 
13,829

 
(23,351
)
 
(89,076
)
 
(23,177
)
 
809,476

 
743,439

Pimco Total Return A
 
—

 
25,144

 
6,402

 
(7
)
 
(2,330
)
 
(812
)
 
477,039

 
505,436

Templeton Global Bond A
 
—

 
16,873

 
14,136

 
(2,742
)
 
(24,775
)
 
(38,496
)
 
475,758

 
440,754

Stage Stores, Inc. common stock
 
1,015,360

 
116,016

 
20,812

 
—

 
(226,243
)
 
(3,568
)
 
—

 
922,377

 
 
$
11,245,932

 
$
2,529,046

 
$
216,164

 
$
(611,200
)
 
$
(587,929
)
 
$
(809,337
)
 
$
—

 
$
11,982,676





12

4.            Fair Value Measurements
In accordance with Accounting Standards Codification ("ASC") No. 820, Fair Value Measurements and Disclosures, the Plan defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  When determining the fair value measurements for assets and liabilities which are required to be recorded at fair value, the Plan considers the principal or most advantageous market in which the Plan would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions and credit risk. The following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used at December 31, 2013 and 2012.
Common Stocks. Valued at the closing price reported on the active market on which the individual securities are traded.
Mutual Funds. Valued at the daily closing price as reported by the fund. Mutual funds held by the Plan are open-ended mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value and to transact at that price. The mutual funds held by the Plan are deemed to be actively traded.
  The Plan applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels, and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
Level 1 -
Quoted prices in active markets for identical assets or liabilities.
Level 2 -
Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 -
Inputs that are generally unobservable and typically reflect the Plan Administrator's estimates of assumptions that market participants would use in pricing the asset or liability.
          
Using the market approach, the following table presents the Plan's assets measured at fair value on a recurring basis as of December 31, 2013 and 2012:

 
 
2013
 
 
Balance
 
Quoted Prices in Active Markets for Identical Instruments
 (Level 1)
 
Significant Other Observable Inputs
 (Level 2)
 
Significant Unobservable Inputs
 (Level 3)
Assets
 
 
 
 
 
 
 
 
Mutual funds:
 
 
 
 
 
 
 
 
Domestic equities
 
$
9,340,620

 
$
9,340,620

 
$
—

 
$
—

International equities
 
3,002,929

 
3,002,929

 
—

 
—

Bond
 
1,537,628

 
1,537,628

 
—

 
—

Balanced
 
1,304,671

 
1,304,671

 
—

 
—

Target date
 
188,428

 
188,428

 
—

 
—

Stage Stores, Inc. common stock
 
1,371,650

 
1,371,650

 
—

 
—

 
 
$
16,745,926

 
$
16,745,926

 
$
—

 
$
—





13

 
 
2012
 
 
Balance
 
Quoted Prices in Active Markets for Identical Instruments
 (Level 1)
 
Significant Other Observable Inputs
 (Level 2)
 
Significant Unobservable Inputs
 (Level 3)
Assets
 
 
 
 
 
 
 
 
Mutual funds:
 
 
 
 
 
 
 
 
Domestic equities
 
$
5,826,302

 
$
5,826,302

 
$
—

 
$
—

International equities
 
2,511,390

 
2,511,390

 
—

 
—

Bond
 
1,041,112

 
1,041,112

 
—


—

Money market
 
1,043,234

 
1,043,234

 
—


—

Balanced
 
1,103,359

 
1,103,359

 
—

 
—

Target date
 
53,638

 
53,638

 
—

 
—

Stage Stores, Inc. common stock
 
1,302,466

 
1,302,466

 
—

 
—

 
 
$
12,881,501

 
$
12,881,501

 
$
—

 
$
—

For the years ended December 31, 2013 and 2012, there were no transfers between levels.
5.            Administrative Expenses
          All administrative expenses of the Plan are paid by the Company.
6.            Income Tax Status
           The Plan, being operated as a nonqualified deferred compensation plan, is not subject to Federal income tax.  A nonqualified deferred compensation arrangement effectively defers compensation for individual Participants.

7.            Exempt Party-in-Interest Transactions
          At December 31, 2013 and 2012, the plan held $1,371,560 and $1,302,466, respectively, of common stock of the Company, the sponsoring employer, with a cost basis of $958,112 and $688,531, respectively. During the year ended December 31, 2013, 2012 and 2011 the Plan recorded dividend income of $27,537, $24,433 and $20,812 from the Company's shares, respectively.

14


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the members of the Plan Administrative Committee, which is the administrative committee for the Stage Stores, Inc. Nonqualified Deferred Compensation Plan, have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

 
STAGE STORES, INC. NONQUALIFIED
 
DEFERRED COMPENSATION PLAN
 
 
 March 28, 2014    
/s/ Oded Shein
(Date)   
Oded Shein
 
Plan Administrative Committee
 
Stage Stores, Inc.
 
 


15