Ross 2009 Annual Report Download - page 31

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Contractual Obligations
The table below presents our significant contractual obligations as of January 30, 2010:
Less than 1 1 – 3 3 – 5 After 5
($000) year years years years Total
1
Senior Notes $ — $ — $ — $ 150,000 $ 150,000
Interest payment obligations 9,667 19,335 19,335 50,195 98,532
Capital leases 291 45 — — 336
Operating leases:
Rent obligations 333,077 660,350 502,136 500,278 1,995,841
Synthetic leases 5,681 8,886 1,705 — 16,272
Other synthetic lease obligations 1,564 1,030 56,000 — 58,594
Purchase obligations 1,078,071 7,886 831 — 1,086,788
Total contractual obligations $ 1,428,351 $ 697,532 $ 580,007 $ 700,473 $ 3,406,363
1 We have a $33.6 million liability for unrecognized tax benefits that is included in other long-term liabilities on our consolidated balance sheet. This liability is excluded from the
schedule above as the timing of payments cannot be reasonably estimated.
Senior Notes. We have two series of unsecured senior notes outstanding with various institutional investors for $150 million.
The Series A notes totaling $85 million are due in December 2018 and bear interest at a rate of 6.38%. The Series B notes
totaling $65 million, are due in December 2021, and bear interest at a rate of 6.53%. Interest on these notes is included in
Interest payment obligations in the table above. These notes are subject to prepayment penalties for early payment of principal.
Borrowings under these notes are subject to certain operating and financial covenants, including maintaining certain interest
coverage and other financial ratios. As of January 30, 2010, we were in compliance with these covenants.
Capital leases. The obligations under capital leases relate to distribution center equipment and have terms of two to
three years.
Off-Balance Sheet Arrangements
Operating leases. We lease our two buying offices, our corporate headquarters, one distribution center, one trailer parking
lot, three warehouse facilities, and all but two of our store locations. Except for certain leasehold improvements and equipment,
these leased locations do not represent long-term capital investments.
We have lease arrangements for certain equipment in our stores for our point-of-sale (“POS”) hardware and software systems.
These leases are accounted for as operating leases for financial reporting purposes. The initial terms of these leases are either
two or three years, and we typically have options to renew the leases for two to three one-year periods. Alternatively, we may
purchase or return the equipment at the end of the initial or each renewal term. We have guaranteed the value of the equipment
of $2.6 million, at the end of the respective initial lease terms, which is included in Other synthetic lease obligations in the
table above.
We lease approximately 181,000 square feet of office space for our corporate headquarters in Pleasanton, California, under
several facility leases. The terms for these leases expire between 2011 and 2015 and contain renewal provisions.
We lease approximately 197,000 and 26,000 square feet of office space for our New York City and Los Angeles buying offices,
respectively. The lease terms for these facilities expire in 2021 and 2014, respectively and contain renewal provisions.