Ross 2009 Annual Report Download - page 47

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— 45 —
The maturities of investment securities at January 31, 2009 were:
Estimated
($000) Cost basis fair value
Maturing in one year or less $ 886 $ 798
Maturing after one year through five years 25,646 25,600
Maturing after five years through ten years 11,525 10,532
Maturing after ten years 1,929 1,882
Total $ 39,986 $ 38,812
The underlying assets in the Company’s non-qualified deferred compensation program totaling $50.7 million as of January 30,
2010 (included in Other long-term assets and in Other long-term liabilities) primarily consist of participant directed money market
mutual funds, as well as stable value, stock, and bond funds. The fair value measurement for funds that are quoted market
prices in active markets (Level 1) totaled $43.9 million as of January 30, 2010. The fair value measurement for the stable value
funds without quoted market prices in active markets (Level 2) totaled $6.8 million as of January 30, 2010. Fair market value for
these funds is considered to be the sum of participant funds invested under the contract plus accrued interest.
Note C: Stock-based compensation
For fiscal 2009, 2008, and 2007, the Company recognized stock-based compensation expense as follows:
($000) 2009 2008 2007
ESPP and stock options $ 2,952 $ 5,359 $ 9,083
Restricted stock and performance awards 22,794 17,216 16,082
Total $ 25,746 $ 22,575 $ 25,165
Capitalized stock-based compensation cost was not significant in any year.
No stock options were granted during 2009 or 2008. Beginning in 2008, the Company eliminated a lookback option in
determining the purchase price for shares purchased under the ESPP. The Company recognizes expense for ESPP purchase
rights equal to the value of the 15% discount given on the purchase date. At January 30, 2010, the Company had one stock-
based compensation plan, which is further described in Note H.
The fair value of stock options granted during fiscal 2007 was estimated using a 3.9 year expected life from grant date, volatility
of 28.4%, risk-free interest rate of 4.7%, and dividend yield of 0.9%. The fair value of ESPP rights granted during fiscal 2007
was estimated using a one year expected life from grant date, 26.4% expected volatility, 5.0% risk-free interest rate, and 0.9%
dividend yield. The weighted average fair values per share of stock options granted and employee stock purchase plan shares
issued during 2007 were $9.12 and $8.02, respectively.