Ross 2011 Annual Report Download - page 41

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39
Other long-term assets. Other long-term assets as of January 28, 2012 and January 29, 2011 consisted of the following:
($000) 2011 2010
Deferred compensation (Note B) $ 67,459 $ 63,569
Restricted cash and investments 48,059 —
Goodwill 2,889 2,889
Deposits 4,115 3,835
Other 6,992 4,814
Total $ 129,514 $ 75,107
Other assets are principally comprised of prepaid rent and other long-term prepayments.
Property, other long-term assets, and certain identifiable intangibles that are subject to amortization are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Intangible
assets that are not subject to amortization, including goodwill, are tested for impairment annually or more frequently if events or
changes in circumstances indicate that the asset may be impaired. Based on the Company’s evaluation during fiscal 2011, 2010,
and 2009, no impairment charges were recorded.
Store closures. The Company continually reviews the operating performance of individual stores. For stores that are closed,
the Company records a liability for future minimum lease payments net of estimated sublease recoveries and related ancillary
costs at the time the liability is incurred. In 2011, the Company closed ten Ross stores. In 2010, the Company closed six Ross
stores. The lease loss liability related to certain of these closed stores was $3.0 million and $4.9 million, as of January 28, 2012
and January 29, 2011, respectively. Operating costs, including depreciation, of stores to be closed are expensed during the
period they remain in use.
Accounts payable. Accounts payable represents amounts owed to third parties at the end of the period. Accounts payable
includes book cash overdrafts (checks issued under zero balance accounts not yet presented for payment) in excess of
cash balances in such accounts of approximately $78.9 million and $53.4 million at January 28, 2012 and January 29, 2011,
respectively. The Company includes the change in book cash overdrafts in operating cash flows.
Insurance obligations. The Company uses a combination of insurance and self-insurance for a number of risk management
activities, including workers’ compensation, general liability, and employee-related health care benefits. The self-insurance and
deductible liability is determined actuarially, based on claims filed and an estimate of claims incurred but not yet reported. Self-
insurance and deductible reserves as of January 28, 2012 and January 29, 2011 consisted of the following:
($000) 2011 2010
Workers’ compensation $ 74,773 $ 67,425
General liability 27,375 25,490
Medical plans 3,220 3,344
Total $ 105,368 $ 96,259
Workers’ compensation and self-insured medical plan liabilities are included in accrued payroll and benefits, and accruals for
general liability are included in accrued expenses and other in the accompanying consolidated balance sheets.