Ross 2010 Annual Report Download - page 45

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43
No stock options were granted during fi scal 2010, 2009, or 2008. The Company recognizes expense for ESPP purchase rights
equal to the value of the 15% discount given on the purchase date. At January 29, 2011, the Company had one stock-based
compensation plan, which is further described in Note H.
Total stock-based compensation recognized in the Company’s consolidated statements of earnings for fi scal 2010, 2009, and
2008 is as follows:
Statements of Earnings Classifi cation ($000) 2010 2009 2008
Cost of goods sold $ 15,665 $ 11,912 $ 10,021
Selling, general and administrative 20,886 13,834 12,554
Total $ 36,551 $ 25,746 $ 22,575
Note D: Debt
Revolving credit facility. At January 29, 2011, the Company had a $600 million unsecured revolving credit facility with interest
pricing at LIBOR plus 45 basis points. 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 was payable upon borrowing maturity but no less than
quarterly. The Company had no borrowings outstanding under this facility as of January 29, 2011 and January 30, 2010.
In March 2011, the Company entered into a new $600 million unsecured, revolving credit facility. This credit facility, which
replaced the Company’s 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.
Senior notes. The Company has two series of unsecured senior notes 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%. The fair value of these notes as of January 29, 2011
of approximately $171 million is estimated by obtaining comparable market quotes. The senior notes are subject to prepayment
penalties for early payment of principal.
Borrowings under the credit facility and the senior notes are subject to certain covenants, including 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, the Company was in compliance with these covenants.
Letters of credit. The Company uses standby letters of credit to collateralize certain obligations related to its self-insured
workers’ compensation and general liability programs. The Company had $69.6 million and $65.2 million in standby letters of
credit at January 29, 2011 and January 30, 2010, respectively.
The Company also had $35.2 million and $32.9 million in trade letters of credit outstanding at January 29, 2011 and January 30,
2010, respectively.