Ross 2009 Annual Report Download - page 30

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— 28 —
We had purchases of investments of $2.9 million, $37.0 million, and $146.1 million in fiscal 2009, 2008, and 2007, respectively.
We had sales of investments of $24.5 million, $42.5 million, and $137.1 million in fiscal 2009, 2008, and 2007, respectively.
We are forecasting approximately $215 million in capital requirements in 2010 to fund expenditures for fixtures and leasehold
improvements to open both new Ross and dd’s DISCOUNTS stores, for the relocation, or upgrade of existing stores, for
investments in store and merchandising systems, buildings, equipment and systems, and for various buying and corporate office
expenditures. We expect to fund these expenditures with available cash, cash flows from operations, and trade credit.
Our capital expenditures over the last three years are set forth in the table below:
($ millions) 2009 2008 2007
New stores $ 55.4 $ 52.0 $ 110.1
Store renovations and improvements 44.3 47.3 32.3
Information systems 10.4 13.2 21.4
Distribution centers, corporate office, and other 48.4 111.9 72.3
Total capital expenditures $ 158.5 $ 224.4 $ 236.1
Financing Activities
During fiscal 2009, 2008, and 2007, our liquidity and capital requirements were provided by available cash, cash flows from
operations, and trade credit. 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 one distribution center in each of the following cities: Carlisle,
Pennsylvania; Moreno Valley, California; and Fort Mill, South Carolina; and one warehouse facility in 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 7.4 million and 9.3 million shares of common stock for aggregate purchase prices of approximately $300 million
in both 2009 and 2008. In January 2010, our Board of Directors approved a two-year $750 million stock repurchase program for
fiscal 2010 and 2011.
In January 2010, our Board of Directors declared a quarterly cash dividend payment of $.16 per common share, payable on
March 31, 2010. Our Board of Directors declared quarterly cash dividends of $.11 per common share in January, May, August,
and November 2009, and cash dividends of $.095 per common share in January, May, August, and November 2008.
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 2010.
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.