Ross 2008 Annual Report Download - page 42

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40
The following is a reconciliation of the number of shares (denominator) used in the basic and diluted EPS computations:
Effect of dilutive
common stock
Shares in (000s) Basic EPS equivalents Diluted EPS
2008
Shares 129,235 2,080 131,315
Amount $ 2.36 $ (.03) $ 2.33
2007
Shares 135,093 2,049 137,142
Amount $ 1.93 $ (.03) $ 1.90
2006
Shares 139,488 2,395 141,883
Amount $ 1.73 $ (.03) $ 1.70
Segment reporting. The Company has one reportable segment. The Company’s operations include only activities related to
off-price retailing in stores throughout the United States and, therefore, comprise only one segment.
Sales Mix. The Company’s sales mix is shown below for fiscal 2008, 2007 and 2006:
2008 2007 2006
Ladies 32% 32% 33%
Home accents and bed and bath 23% 23% 22%
Men’s 14% 15% 15%
Accessories, lingerie, fine jewelry, and fragrances 12% 11% 11%
Shoes 10% 10% 10%
Children’s 9% 9% 9%
Total 100% 100% 100%
Comprehensive income. Comprehensive income consists of net earnings and other comprehensive income, principally
unrealized investment gains or losses. Components of comprehensive income are presented in the consolidated statements of
stockholders’ equity.
Derivative instruments and hedging activities. SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities,”
as amended, requires the Company to record all derivatives as either assets or liabilities on the balance sheet and to measure those
instruments at fair value. The Company had no derivative instruments outstanding as of January 31, 2009 or February 2, 2008.
Adoption of new accounting standards. SFAS No. 157, “Fair Value Measurements” (“SFAS No. 157”), is effective for
financial assets and liabilities for fiscal years beginning after November 15, 2007, except for nonfinancial assets and liabilities that
are recognized or disclosed at fair value in the financial statements on a nonrecurring basis, for which application was deferred
for one year. SFAS No. 157 defines fair value, establishes a framework for measuring fair value and expands required disclosures
about fair value measurements.
SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities” (“SFAS No. 159”) is effective for fiscal years
beginning after November 15, 2007. SFAS No. 159 establishes a fair value option under which entities can elect to report certain
financial assets and liabilities at fair value, with changes in fair value recognized in earnings.
The Company adopted SFAS No. 157, and SFAS No. 159 effective February 3, 2008. Adoption of the deferred provisions of
SFAS No. 157 will not have a material impact on the Company’s operating results or financial position.