Ross 2010 Annual Report Download - page 49

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At the end of fi scal 2010, 2009, and 2008, the reserves for unrecognized tax benefi ts (net of federal tax benefi ts) were
$41.8 million, $33.6 million, and $26.0 million inclusive of $12.0 million, $10.0 million, and $6.5 million of related interest, respectively.
The Company accounts for interest and penalties related to unrecognized tax benefi ts as a part of its provision for taxes on
earnings. If recognized, $35.0 million would impact the Company’s effective tax rate. The difference between the total amount of
unrecognized tax benefi ts and the amounts that would impact the effective tax rate relates to amounts attributable to deferred
income tax assets and liabilities. These amounts are net of federal and state income taxes.
During the next twelve months, it is reasonably possible that the statute of limitations may lapse pertaining to positions taken by
the Company in prior year tax returns. If this occurs, the total amount of unrecognized tax benefi ts may decrease, reducing the
provision for taxes on earnings by up to $1.1 million.
The Company is generally open to audit by the Internal Revenue Service under the statute of limitations for fi scal years 2007
through 2010. The Company’s state income tax returns are generally open to audit under the various statutes of limitations for
fi scal years 2006 through 2010. Certain state tax returns are currently under audit by state tax authorities. The Company does
not expect the results of these audits to have a material impact on the consolidated fi nancial statements.
Note G: Employee Benefi t Plans
The Company has a defi ned contribution plan that is available to certain employees. Under the plan, employee and Company
contributions and accumulated plan earnings qualify for favorable tax treatment under Section 401(k) of the Internal Revenue
Code. This plan permits employees to make contributions up to the maximum limits allowable under the Internal Revenue Code.
The Company matches up to 4% of the employee’s salary up to the plan limits. Company matching contributions to the 401(k)
plan were $8.2 million, $7.6 million, and $7.3 million in fi scal 2010, 2009, and 2008, respectively.
The Company also has an Incentive Compensation Plan which provides cash awards to key management and employees based
on Company and individual performance.
The Company also makes available to management a Non-qualifi ed Deferred Compensation Plan which allows management
to make payroll contributions on a pre-tax basis in addition to the 401(k) plan. Other long-term assets include $63.6 million and
$50.7 million at January 29, 2011 and January 30, 2010, respectively, of long-term plan investments, at market value, set aside or
designated for the Non-qualifi ed Deferred Compensation Plan (See Note B). Plan investments are designated by the participants,
and investment returns are not guaranteed by the Company. The Company has a corresponding liability to participants of
$63.6 million and $50.7 million at January 29, 2011 and January 30, 2010, respectively, included in other long-term liabilities in the
consolidated balance sheets.
In addition, the Company has certain individuals who receive or will receive post-employment medical benefi ts. The estimated
liability for these benefi ts of $4.9 million and $3.9 million is included in accrued liabilities and other in the accompanying
consolidated balance sheets as of January 29, 2011 and January 30, 2010, respectively.
Note H: Stockholders’ Equity
Common stock. The Company repurchased 6.7 million, 7.4 million, and 9.3 million shares of common stock for aggregate
purchase prices of approximately $375 million, $300 million, and $300 million in fi scal 2010, 2009, and 2008, respectively. In
January 2011, the Company’s Board of Directors approved a new two-year $900 million stock repurchase program for fi scal
2011 and 2012, replacing the $375 million remaining under the prior two-year $750 million stock repurchase program approved
in January 2010.