Ross 2010 Annual Report Download - page 30

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We have also recognized a liability and corresponding asset for the inception date estimated fair values of the distribution center
and POS synthetic lease residual value guarantees. As of January 29, 2011 we have approximately $2.4 million of residual value
guarantee asset and liability. These residual value guarantees are being amortized on a straight-line basis over the original terms
of the leases. The current portion of the related asset and liability is recorded in prepaid expenses and accrued expenses,
respectively, and the long-term portion of the related assets and liabilities is recorded in other long-term assets and other long-
term liabilities, respectively, in the accompanying consolidated balance sheets.
We lease three warehouses. Two of the warehouses are in Carlisle, Pennsylvania with leases expiring in 2013 and 2014. The third
warehouse is in Fort Mill, South Carolina, with a lease expiring in 2013. We also own a 423,000 square foot warehouse in Fort Mill,
South Carolina. All four of these warehouses are used to store our packaway inventory. We also lease a 10-acre parcel that has
been developed for trailer parking adjacent to our Perris distribution center.
We lease approximately 181,000 square feet of offi ce space for our corporate headquarters in Pleasanton, California, under
several facility leases. The terms for these leases expire between 2014 and 2015 and contain renewal provisions.
We lease approximately 201,000 and 26,000 square feet of offi ce space for our New York City and Los Angeles buying offi ces,
respectively. The lease terms for these facilities expire in 2021 and 2014, respectively, and contain renewal provisions.
Purchase obligations. As of January 29, 2011 we had purchase obligations of approximately $1,332 million. These purchase
obligations primarily consist of merchandise inventory purchase orders, commitments related to store fi xtures and supplies, and
information technology service and maintenance contracts. Merchandise inventory purchase orders of $1,250 million represent
purchase obligations of less than one year as of January 29, 2011.
Commercial Credit Facilities
The table below presents our signifi cant available commercial credit facilities at January 29, 2011:
Amount of Commitment Expiration Per Period
Total
Less than 1 — 3 3 — 5 After 5 amount
($000) 1 year years years years committed
Revolving credit facility $ 600,000 $ — $ — $ — $ 600,000
Total commercial commitments $ 600,000 $ — $ — $ — $ 600,000
For additional information relating to this credit facility, refer to note D of Notes to the Consolidated Financial Statements.
Revolving credit facility. At January 29, 2011, we had available a $600 million unsecured revolving credit facility with our
banks. The credit facility contained a $300 million sublimit for issuance of standby letters of credit, of which $230.4 million was
available at January 29, 2011. Interest pricing on this credit facility was LIBOR plus an applicable margin (45 basis points at
January 29, 2011) and was payable upon maturity but not less than quarterly. Our borrowing ability under this credit facility was
subject to our maintaining certain fi nancial ratios. As of January 29, 2011 we had no borrowings outstanding under this facility.
In March 2011, we entered into a new $600 million unsecured, revolving credit facility. This credit facility, which replaced our
previous $600 million revolving credit facility, expires in March 2016. Interest on this facility is based on LIBOR plus an applicable
margin (currently 150 basis points) and is payable upon maturity but not less than quarterly.
The synthetic lease facilities described above, as well as our revolving credit facility and senior notes, have covenant restrictions
requiring us to maintain certain interest coverage and other fi nancial ratios. In addition, the interest rates under the revolving credit
facility may vary depending on actual interest coverage ratios achieved. As of January 29, 2011, we were in compliance with these
covenants.