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, 2012

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.
 
 
 
 
 
 
 
 
 
3
 
 
 
 
 
 
 
 
4
 
 
 
 
 
 
 
 
5
 
 
 
 
 
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.
 
 
 
 
 
 
 
14
 
 
 
 
 
 
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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, 2012 and 2011, and the related statements of income and changes in plan equity for each of the three years in the period ended December 31, 2012.  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, 2012 and 2011, and the income and changes in plan equity for each of the three years in the period ended December 31, 2012, in conformity with accounting principles generally accepted in the United States of America. 
 
 
/s/ Deloitte & Touche LLP
Houston, Texas
March 28, 2013
 
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STAGE STORES, INC. NONQUALIFIED DEFERRED COMPENSATION PLAN
  
STATEMENTS OF FINANCIAL CONDITION
  
As of December 31, 2012 and 2011
  
 
  
   
 
 
  
   
 
 
  
   
 
 
  
2012
   
2011
 
 
  
   
 
Assets
  
   
 
Investments, at fair value:
  
   
 
Mutual funds
  
$
11,579,035
    
$
11,060,299
  
Stage Stores, Inc. common stock, as determined by quoted market prices - 52,561 and 66,406 shares with a cost basis of $688,531 and $829,790, respectively
    
1,302,466
      
922,377
  
Total investments
    
12,881,501
      
11,982,676
  
 Cash
    
4,290
      
76,191
  
Total assets and plan equity
  
$
12,885,791
    
$
12,058,867
  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
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STAGE STORES, INC. NONQUALIFIED DEFERRED COMPENSATION PLAN
  
STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY
  
For the Years Ended December 31, 2012, 2011 and 2010
  
 
  
   
   
 
 
  
   
   
 
 
  
2012
    
2011
    
2010
  
Additions
  
   
   
 
Contributions:
  
   
   
 
Participant
  
$
1,141,544
    
$
1,510,866
    
$
1,223,407
  
Employer
    
834,325
      
1,029,020
      
1,054,820
  
Net investment income:
                        
Dividend income on investments in:
                        
Mutual funds
    
211,237
      
195,352
      
159,077
  
Stage Stores, Inc. common stock
    
24,433
      
20,812
      
14,279
  
Net appreciation (depreciation) in fair value of investments
    
1,880,899
      
(1,199,129
)
    
1,174,054
  
Total additions
    
4,092,438
      
1,556,921
      
3,625,637
  
 
                        
Deductions
                        
Distributions to participants
    
3,265,514
      
809,337
      
1,553,006
  
Net increase in plan equity
    
826,924
      
747,584
      
2,072,631
  
 
                        
Plan equity at beginning of year
    
12,058,867
      
11,311,283
      
9,238,652
  
Plan equity at end of year
  
$
12,885,791
    
$
12,058,867
    
$
11,311,283
  
The accompanying notes are an integral part of these financial statements.
 
5
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Stage Stores, Inc. Nonqualified Deferred Compensation Plan
Notes to Financial Statements
December 31, 2012, 2011 and 2010




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.
 
      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 will amend and restate the Plan and the Terms and Conditions of the Company Stock Investment Option. Participant contributions and employer matching contributions, which are currently invested in a money market account and are applied to the purchase of Company stock in the open market on the last trading day of the calendar month, will instead be applied to the purchase of Company stock in the open market in "real time" as those contributions are received.  As is currently the case, 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.
6
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      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.
      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.
           Reclassifications
      Certain amounts previously reported have been reclassified to conform to the current presentation.
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.  Effective April 1, 2013, Fidelity Management Trust Company will administer all mutual funds and the Company Stock Investment Option, execute all investment transactions and serve as the Plan's trustee.  Since July 1, 2010, Pen-Cal Administrators, Inc. and UBS Financial Services, Inc. have administered all mutual funds and the Company Stock Investment Option and executed all investment transactions, while Wilmington Trust Retirement and Institutional Services Company have served as the Plan's trustee and held the Plan assets.  Prior to July 1, 2010, Compass Consulting and Wells Fargo administered and executed all investment transactions and held the Plan assets.  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.  Interest is recorded as earned.
      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.
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Table of Contents
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, 2012 and 2011 are as follows:
 
  
2012
    
2011
  
Fidelity Advisor New Insights A
  
$
1,880,988
    
$
1,994,202
  
Stage Stores, Inc. common stock (1)
    
1,302,466
      
922,377
  
Columbia Balanced A
    
1,103,359
      
857,429
  
Oppenheimer Developing Markets A
    
1,091,914
      
743,439
  
American Century Equity Income A
    
1,066,209
      
907,941
  
Fidelity Advisor Treasury Money Market CI T
    
1,043,234
      
2,121,317
  
Blackrock International Opportunities Portfolio A
    
757,180
      
699,957
  
John Hancock Global Opportunities CL A
    
662,296
      
1,408,680
  
Total
    
8,907,646
      
9,655,342
  
 
                
Other, individually representing less than 5% of total
    
3,973,855
      
2,327,334
  
Investments, at fair value
  
$
12,881,501
    
$
11,982,676
  
         (1) Indicates party in interest to the Plan
 
         During the years ended December 31, 2012, 2011 and 2010, the Plan's investments, including gains and losses on investments bought and sold as well as held during the year, (depreciated) appreciated in value as follows:
 
 
  
2012
    
2011
    
2010
  
Realized gain (loss) on investments in mutual funds
  
$
325,377
    
$
(611,200
)
  
$
61,868
  
Unrealized gain (loss) on investments in
                        
Mutual funds
                        
Domestic equities
    
375,409
      
61,453
      
431,788
  
International equities
    
289,405
      
(395,350
)
    
387,246
  
Bond
    
21,039
      
(19,532
)
    
10,730
  
Balanced
    
101,277
      
(8,257
)
    
-
  
Target date
    
1,389
      
-
      
-
  
Stage Stores, Inc. common stock
    
767,003
      
(226,243
)
    
282,422
  
Net appreciation (depreciation) in fair value of investments
  
$
1,880,899
    
$
(1,199,129
)
  
$
1,174,054
  
8
Table of Contents
 
 
      The following tables set forth the detailed investment activities by individual fund for the following periods:

 
  
   
   
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
    
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
  
 
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Table of Contents
 
  
   
   
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
    
-
      
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
  
 
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Table of Contents
 
  
   
   
Net Investment Income
    
   
   
 
 
  
Investments at 1/1/10
    
Contributions
    
Dividend Income
    
Realized Gain on Investment
    
Unrealized Gain on Investment
    
Distributions
    
Transfers
    
Investments at 12/31/10
  
 
  
   
   
   
   
   
   
   
 
Mutual funds:
  
   
   
   
   
   
   
   
 
  AMCAP Fund A
  
$
637,314
    
$
165,754
    
$
4,518
    
$
-
    
$
117,623
    
$
-
    
$
262,988
    
$
1,188,197
  
  EuroPacific Growth Fund A
    
776,690
      
176,985
      
10,278
      
8,711
      
49,437
      
(87,024
)
    
(178,717
)
    
756,360
  
  The Growth Fund of America A
    
813,578
      
291,327
      
10,097
      
4,753
      
115,293
      
(78,196
)
    
107,745
      
1,264,597
  
  New World Fund A
    
907,230
      
210,288
      
14,688
      
17,814
      
128,330
      
(155,385
)
    
(74,937
)
    
1,048,028
  
  SMALLCAP World Fund A
    
722,673
      
158,031
      
13,070
      
11,786
      
163,648
      
(109,165
)
    
28,030
      
988,073
  
  Capital World Growth and Income Fund A
    
825,952
      
170,854
      
21,525
      
1,400
      
45,831
      
(15,552
)
    
(156,037
)
    
893,973
  
  The Investment Company of America A
    
382,060
      
96,296
      
11,005
      
-
      
45,121
      
-
      
85,813
      
620,295
  
  Washington Mutual Investors Fund A
    
635,848
      
79,657
      
22,428
      
978
      
78,519
      
-
      
173,560
      
990,990
  
  American Balanced Fund A
    
586,197
      
161,794
      
16,940
      
2,823
      
75,232
      
(51,474
)
    
136,029
      
927,541
  
  American High-Income Trust A
    
8,903
      
46,160
      
9,141
      
-
      
3,263
      
-
      
113,859
      
181,326
  
  Capital World Bond Fund A
    
1,398,020
      
163,661
      
21,325
      
13,603
      
4,950
      
(235,606
)
    
(1,120,595
)
    
245,358
  
  Intermediate Bond Fund of America A
    
110,612
      
78,537
      
4,062
      
-
      
2,517
      
-
      
27,442
      
223,170
  
  American Funds Money Market Fund
    
779,175
      
320,049
      
-
      
-
      
-
      
(791,380
)
    
594,820
      
902,664
  
Stage Stores, Inc. common stock
    
654,400
      
93,483
      
14,279
      
-
      
282,422
      
(29,224
)
    
-
      
1,015,360
  
 
  
$
9,238,652
    
$
2,212,876
    
$
173,356
    
$
61,868
    
$
1,112,186
    
$
(1,553,006
)
  
$
-
    
$
11,245,932
  

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 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.
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Table of Contents
 
      Using the market approach, the following table presents the Plan's assets measured at fair value on a recurring basis as of December 31, 2012 and 2011:
 
  
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
    
$
-
    
$
-
 
 
 
 
  
2011
  
 
  
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
  
$
3,512,719
    
$
3,512,719
    
$
-
    
$
-
  
International equities
    
2,852,076
      
2,852,076
      
-
      
-
  
Bond
    
1,716,760
      
1,716,760
      
-
      
-
  
Money market
    
2,121,315
      
2,121,315
      
-
      
-
  
Balanced
    
857,429
      
857,429
                  
Stage Stores, Inc. common stock
    
922,377
      
922,377
      
-
      
-
  
 
  
$
11,982,676
    
$
11,982,676
    
$
-
    
$
-
  

For the years ended December 31, 2012 and 2011, there were no transfers in or out of Levels 1, 2 or 3.
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.
12
 

7.            Exempt Party-in-Interest Transactions
      At December 31, 2012 and 2011, the plan held $1,302,466 and $922,377, respectively, of common stock of the Company, the sponsoring employer, with a cost basis of $688,531 and $829,790, respectively. During the year ended December 31, 2012 the Plan  recorded dividend income of $24,433 from the Company's shares.
8.            Subsequent Event
         Effective April 1, 2013, the Committee has appointed Fidelity Management Trust Company to administer all mutual funds and the Company Stock Investment Option, execute all investment transactions and serve as the Plan's trustee.
13
Table of Contents
 
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, 2013     /s/ Oded Shein
      (Date)    Oded Shein
  Plan Administrative Committee
  Stage Stores, Inc.
   
14