Ross 2009 Annual Report Download - page 53

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— 51 —
In addition, the Company has certain individuals who receive or will receive post-employment medical benefits. The estimated
liability for these benefits of $3.9 million and $4.3 million is included in accrued liabilities and other in the accompanying
consolidated balance sheets as of January 30, 2010 and January 31, 2009, respectively.
Note H: Stockholders’ Equity
Common stock. In January 2008 the Company’s Board of Directors approved a two-year stock repurchase program of
up to $600 million for fiscal 2008 and 2009. In November 2005, the Company’s Board of Directors authorized a two-year
stock repurchase program of up to $400 million for fiscal 2006 and 2007. In January 2010, the Company’s Board of Directors
approved a two-year $750 million stock repurchase program for fiscal 2010 and 2011. The following table summarizes the
Company’s stock repurchase activity in fiscal 2009, 2008, and 2007:
Shares repurchased Average repurchase Repurchased
Fiscal Year (in millions) price (in millions)
2009 7.4 $ 40.68 $ 300
2008 9.3 $ 32.09 $ 300
2007 6.9 $ 29.10 $ 200
Preferred stock. The Company has four million shares of preferred stock authorized, with a par value of $.01 per share. No
preferred stock is issued or outstanding.
Dividends. In January 2010, the Company’s Board of Directors declared a quarterly cash dividend of $.16 per common
share, payable on March 31, 2010. The Company’s Board of Directors declared quarterly cash dividends of $.11 per common
share in January, May, August, and November 2009, 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.
2008 Equity Incentive Plan. On May 22, 2008, the Company’s stockholders approved the adoption of the Ross Stores, Inc.
2008 Equity Incentive Plan (the “2008 Plan”) with an initial share reserve of 8.3 million shares of the Company’s common stock,
of which 6.0 million shares can be issued as full value awards. The 2008 Plan provides for various types of incentive awards,
which may potentially include the grant of stock options, stock appreciation rights, restricted stock purchase rights, restricted
stock bonuses, restricted stock units, performance shares, performance units, and deferred compensation awards.
As of January 30, 2010, there were 4.9 million shares that remained available for grant under the 2008 Plan. A summary of the
stock option activity for fiscal 2009 is presented below.
Weighted
Weighted average
average remaining Aggregate
Number of exercise contractual intrinsic
(000, except per share data) shares price term value
Outstanding at January 31, 2009 4,534 $ 25.39
Granted — $ —
Exercised (1,733) $ 25.16
Forfeited (28) $ 25.75
Outstanding at January 30, 2010 2,773 $ 25.53 4.54 $ 56,568
Vested and Expected to Vest at January 30, 2010 2,751 $ 25.46 4.52 $ 56,319
Exercisable at January 30, 2010 2,451 $ 24.38 4.20 $ 52,827