Ross 2008 Annual Report Download - page 18

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16
Distribution Centers
We operate four distribution facilities. We have two 1.3 million square foot distribution centers — one in Fort Mill, South
Carolina, and the other in Perris, California. Our Fort Mill, South Carolina facility, which we own, opened in July 2002. The Perris,
California facility opened in September 2003 and is financed with a ten-year synthetic lease facility that expires in July 2013.
We own a 685,000 square foot distribution center in Moreno Valley, California that we acquired to increase our distribution and
packaway storage capacity. We are in the process of expanding our Moreno Valley, California distribution center to 1.3 million
square feet. We also own a 426,000 square foot distribution center located in Carlisle, Pennsylvania. See additional discussion
in Management’s Discussion and Analysis.
In November 2001 we entered into a nine-year lease for a 239,000 square foot warehouse and a ten-year lease for a 246,000
square foot warehouse in Carlisle, Pennsylvania. In January 2009, we exercised a three-year option for a 253,000 square foot
warehouse in Fort Mill, South Carolina, extending the term to February 2013. In June 2008, we purchased a 423,000 square
foot warehouse also in Fort Mill, South Carolina. All four of these properties are used to store our packaway inventory. We also
lease a 10-acre parcel of land that has been developed for trailer parking adjacent to our Perris distribution center.
In October 2008 we purchased 160 acres of land in South Carolina with the intention of building a new distribution
center in the future.
See additional discussion under “Distribution” in Item 1.
Other Leased Facilities
We lease approximately 181,000 square feet of office space for our corporate headquarters in Pleasanton, California, under
several leases. The terms for these leases expire between 2010 and 2014 with various renewal provisions.
We lease approximately 161,000 and 15,000 square feet of office space for our New York and Los Angeles buying offices,
respectively. The terms for these leases expire in 2015 and 2011, respectively. The lease term for the New York office contains
a renewal provision.
ITEM 3. LEGAL PROCEEDINGS.
We are party to various litigation matters related to customers, vendors, and employees, including class action lawsuits alleging
misclassification of assistant store managers and missed meal and rest break periods, and other litigation incident to our
business. We believe that none of these legal proceedings will have a material adverse effect on our financial condition or results
of operations. See Note J of Notes to Consolidated Financial Statements.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.