Ross 2007 Annual Report Download - page 59

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Note G: Employee Benefit Plans
The Company has a defined contribution plan that is available to certain employees. Under the plan, employee and Company
contributions and accumulated plan earnings qualify for favorable tax treatment under Section 401(k) of the Internal Revenue
Code. This plan permits employees to make contributions up to the maximum limits allowable under the Internal Revenue Code.
The Company matches up to 4% of the employee’s salary up to the plan limits. Company matching contributions to the 401(k)
plan were $6.8 million, $6.1 million and $5.1 million in fiscal 2007, 2006 and 2005, respectively.
The Company also has an Incentive Compensation Plan, which provides cash awards to key management employees based
on the Company’s and the individual’s performance. The Company also makes available to management a Non-Qualified
Deferred Compensation Plan which allows management to make payroll contributions on a pre-tax basis in addition to the 401(k)
plan. Other long-term assets include $48.2 million and $47.0 million at February 2, 2008 and February 3, 2007, respectively,
of long-term investments, at market value, set aside or designated for the Non-Qualified Deferred Compensation Plan. Plan
investments are designated by the participants, and investment returns are not guaranteed by the Company. The Company has a
corresponding liability to participants of $48.2 million and $47.0 million at February 2, 2008 and February 3, 2007, respectively.
In addition, the Company has certain individuals who receive or will receive post-employment benefits. The estimated liability
for these benefits of $3.2 million and $2.4 million is included in accrued liabilities and other in the accompanying consolidated
balance sheets as of February 2, 2008 and February 3, 2007, respectively.
Note H: Stockholders’ Equity
Preferred stock. The Company has four million shares of preferred stock authorized, with a par value of $.01 per share. No
preferred stock is issued or outstanding.
Common stock. In November 2005, the Company’s Board of Directors authorized a two-year stock repurchase program of up to
$400 million for fiscal 2006 and 2007. In January 2004, the Company’s Board of Directors authorized a stock repurchase program
of up to $350 million for 2004 and 2005. The following table summarizes the Company’s stock repurchase activity in fiscal 2007,
2006 and 2005:
Shares repurchased Average repurchase Repurchased
Fiscal Year (in millions) price (in millions)
2007 6.9 $ 29.10 $ 200.0
2006 7.1 $ 28.17 $ 200.0
2005 6.4 $ 27.26 $ 175.0
In January 2008, the Company’s Board of Directors approved a new two-year $600 million stock repurchase program for fiscal
2008 and 2009.
Dividends. In January 2008, the Company’s Board of Directors declared a quarterly cash dividend of $.095 per common share,
payable on or about March 31, 2008. The Company’s Board of Directors declared quarterly cash dividends of $.075 per common
share in January, May, August and November 2007, a cash dividend of $.06 per common share in January, May, August and
November 2006, a cash dividend of $.06 per common share in November 2005, and cash dividends of $.05 per common share
in January, May, and August 2005.