Ross 2008 Annual Report Download - page 28

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We are forecasting approximately $190 million in capital requirements in 2009 to fund expenditures for fixtures and leasehold
improvements to open both new Ross and dd’s DISCOUNTS stores, for the relocation, or upgrade of existing stores, for
investments in store and merchandising systems, buildings, equipment and systems, and for various buying and corporate office
expenditures. We expect to fund these expenditures with cash flows from operations.
Our capital expenditures over the last three years are set forth in the table below:
($ millions) 2008 2007 2006
New stores $ 52.0 $ 110.1 $ 49.5
Store renovations and improvements 47.3 32.3 42.4
Information systems 13.2 21.4 13.4
Distribution centers, corporate office, and other 111.9 72.3 118.6
Total capital expenditures $ 224.4 $ 236.1 $ 223.9
Financing Activities
During fiscal 2008, 2007 and 2006, our liquidity and capital requirements were provided by available cash and investment
balances, cash flows from operations, trade credit, and issuance of senior notes. Our buying offices, our corporate
headquarters, one distribution center, one trailer parking lot, three warehouse facilities, and all but two of our store locations
are leased and, except for certain leasehold improvements and equipment, do not represent capital investments. We own
three distribution centers in Carlisle, Pennsylvania, Moreno Valley, California, and Fort Mill, South Carolina.
In January 2008, our Board of Directors approved a two-year $600 million stock repurchase program for fiscal 2008 and 2009.
We repurchased 9.3 million shares of common stock for an aggregate purchase price of approximately $300 million in 2008
and expect to complete the remaining purchase of $300 million in 2009. In November 2005, our Board of Directors authorized
a 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 flows from operations.
In January 2009, our Board of Directors declared a quarterly cash dividend payment of $.11 per common share, payable on
March 31, 2009. Our Board of Directors declared quarterly cash dividends of $.095 per common share in January, May, August
and November 2008, and cash dividends of $.075 per common share in January, May, August, and November 2007.
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.
Short-term trade credit represents a significant source of financing for merchandise inventory. Trade credit arises from
customary payment terms and trade practices with our vendors. We regularly review the adequacy of credit available to us
from all sources and expect to be able to maintain adequate trade, bank and other credit lines to meet our capital and liquidity
requirements, including lease payment obligations in 2009.
We estimate that cash flows from operations, bank credit lines and trade credit are adequate to meet operating cash needs,
fund our planned capital investments, repurchase common stock and make quarterly dividend payments for at least the
next twelve months.