Ross 2007 Annual Report Download - page 36

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Investing Activities
In fiscal 2007, 2006 and 2005, our capital expenditures (excluding leased equipment) were approximately $236.1 million,
$223.9 million and $175.9 million, respectively, for fixtures and leasehold improvements to open new stores, implement
information technology systems, build distribution centers and implement material handling equipment and related distribution
center systems, and various other expenditures related to our stores, buying and corporate offices. Fiscal 2006 included the
purchase of distribution center assets under a lease of $87.3 million. We opened 97, 66 and 86 new stores and relocated one,
two, and two stores in fiscal 2007, 2006 and 2005, respectively.
In fiscal 2007 we had purchases of investments of $146.1 million and sales of investments of $137.1 million. In fiscal 2006 we had
purchases of investments of $71.9 million and sales of investments of $59.3 million. In fiscal 2005 we had purchases of
$313.6 million and sales of investments of $357.0 million.
We are forecasting approximately $250 million in capital requirements in 2008 to fund expenditures for fixtures and leasehold
improvements to open both new Ross and dd’s DISCOUNTS stores, the relocation, or upgrade of existing stores, and
investments in store and merchandising systems, distribution center land, buildings, equipment and systems, and various buying
andcorporateofceexpenditures.Weexpecttofundtheseexpenditureswithcashowsfromoperationsandexistingcredit
facilities.
Our capital expenditures over the last three years are set forth in the table below:
($ millions)
2007 2006 2005
New stores $ 110.1 $ 49.5 $ 63.3
Store renovations and improvements 32.3 42.4 31.9
Information systems 21.4 13.4 19.8
Distribution centers, corporate office and other 72.3 118.6 60.9
Total capital expenditures $ 236.1 $ 223.9 $ 175.9
Financing Activities
Duringscal2007,2006and2005,ourliquidityandcapitalrequirementswereprovidedbycashowsfromoperations,trade
credit, and issuance of senior notes. All but two of our store locations, our buying offices, our corporate headquarters, and
one distribution center are leased and, except for certain leasehold improvements and equipment, do not represent long-term
capital investments. We own three distribution centers in Carlisle, Pennsylvania, Moreno Valley, California, and Fort Mill, South
Carolina.
In November 2005, we announced that our Board of Directors authorized a two-year stock repurchase program of up to
$400 million for 2006 and 2007. We repurchased 6.9 million and 7.1 million shares of common stock for aggregate purchase
pricesofapproximately$200millioninboth2007and2006.Theserepurchaseswerefundedbycashowsfromoperations.
In March 2006, we repaid our $50 million term debt in full. In October 2006, we entered into a Note Purchase Agreement with
various institutional investors for $150 million of unsecured, senior notes. See “Senior Notes” below for more information.
In January 2008, our Board of Directors declared a quarterly cash dividend payment of $.095 per common share, payable on or
about March 31, 2008. Our Board of Directors declared quarterly cash dividends of $.075 per common share in January, May,
August and November 2007, and cash dividends of $.06 per common share in January, May, August, and November 2006. Also
in January 2008 our Board of Directors approved a new two-year $600 million stock repurchase program for fiscal 2008 and
20 09.