As of August 1, 2020, February 1, 2020, and August 3, 2019, the Company held financial liabilities included in other long-term liabilities on the consolidated balance sheets of $27,283, $29,442, and $26,848, respectively, related to its non-qualified deferred compensation plan. The liabilities have been categorized as Level 2 as they are based on third-party reported values, which are based primarily on quoted market prices of underlying assets of the funds within the plan.
Some assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. These assets can include long-lived assets and goodwill that have been reduced to fair value when impaired. Assets that are written down to fair value when impaired are not subsequently adjusted to fair value unless further impairment occurs.
10. Investments
Short-term investments typically consist of certificates of deposit and are carried at cost, which approximates fair value and are recorded in the consolidated balance sheets in short-term investments. The Company did not have short-term investments as of August 1, 2020. The Company’s short-term investments were $110,000 and $150,000 as of February 1, 2020, and August 3, 2019, respectively.
The Company’s investments in renewable energy projects are accounted for under the equity method of accounting. The balance of these investments was $5,110, $3,936, and $17,449 as of August 1, 2020, February 1, 2020, and August 3, 2019, respectively, and is included in other long-term assets on the consolidated balance sheets. The Company contributed capital of $5,386 and received distributions including $1,291 of investment tax credits during the 26 weeks ended August 1, 2020. The Company contributed capital of $33,339 and received distributions including $17,370 of investment tax credits during the 26 weeks ended August 3, 2019.
11.Stock-based compensation
The Company measures stock-based compensation expense on the grant date, based on the fair value of the award, and recognizes the expense on a straight-line basis over the requisite service period for awards expected to vest. The Company estimated the grant date fair value of stock options using a Black-Scholes valuation model using the following weighted-average assumptions for the periods indicated:
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26 Weeks Ended
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August 1,
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August 3,
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2020
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2019
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Volatility rate
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43.0%
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31.0%
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Average risk-free interest rate
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0.3%
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2.3%
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Average expected life (in years)
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3.4
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3.5
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Dividend yield
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None
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None
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The Company granted 248 and 97 stock options during the 26 weeks ended August 1, 2020 and August 3, 2019, respectively. The stock-based compensation expense for stock options was $2,872 and $2,199 for the 13 weeks ended August 1, 2020 and August 3, 2019, respectively. The stock-based compensation expense for stock options was $5,347 and $4,319 for the 26 weeks ended August 1, 2020 and August 3, 2019, respectively. The weighted-average grant date fair value of these stock options was $54.40 and $89.91 for the 26 weeks ended August 1, 2020 and August 3, 2019, respectively. At August 1, 2020, there was approximately $23,696 of unrecognized stock-based compensation expense related to unvested stock options.
The Company issued 158 and 47 restricted stock units during the 26 weeks ended August 1, 2020 and August 3, 2019, respectively. The stock-based compensation expense for restricted stock units was $5,161 and $3,422 for the 13 weeks ended August 1, 2020 and August 3, 2019, respectively. The stock-based compensation expense for restricted stock units was $9,348 and $6,243 for the 26 weeks ended August 1, 2020 and August 3, 2019, respectively. At August 1, 2020, there was approximately $38,743 of unrecognized stock-based compensation expense related to restricted stock units.