Ross 2015 Annual Report Download - page 42

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Recently issued accounting standards. In May 2014, the Financial Accounting Standards Board (“FASB”) issued
Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. The guidance provides a five-step
analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a
company should recognize revenue when the customer obtains control of promised goods or services in an amount that
reflects the consideration which the company expects to receive in exchange for those goods or services. ASU 2014-09 is
effective for our annual and interim reporting periods beginning in fiscal 2018. We are currently evaluating the effect adoption
of this new guidance will have on our consolidated financial statements.
In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842). The
guidance requires balance sheet recognition for all leases with lease terms greater than one year including a lease liability,
which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-
use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease
term. ASU 2016-02 is effective for our annual and interim reporting periods beginning in fiscal 2019. We are currently
evaluating the effect adoption of this new guidance will have on our consolidated financial statements.
Recently issued and adopted accounting standards. In April 2015, the FASB issued ASU 2015-03, Simplifying the
Presentation of Debt Issuance Costs. The standard amends existing guidance to require the presentation of debt issuance
costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of as an asset. ASU
2015-03 is effective for annual and interim reporting periods after December 15, 2015, with early adoption permitted. We
early adopted ASU 2015-03 retrospectively in our first fiscal quarter ended May 2, 2015. As a result, we reclassified
unamortized debt issuance costs of $2.8 million as of January 31, 2015, from Other long-term assets to a reduction in Long-
term debt on the Consolidated Balance Sheet. Adoption of this standard did not impact results of operations, retained
earnings, or cash flows in the current or previous interim and annual reporting periods.
In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred
Taxes, which simplifies the presentation of deferred taxes by requiring deferred tax assets and liabilities be classified as
noncurrent on the balance sheet. ASU 2015-17 is effective for annual and interim reporting periods after December 15,
2016, with early adoption permitted. We early adopted ASU 2015-17 retrospectively, as of January 30, 2016. As a result,
$13.0 million of our deferred tax assets previously presented in current assets have been reclassified to long term deferred
tax liabilities in the Consolidated Balance Sheet as of January 31, 2015. Adoption of this standard did not impact results of
operations, retained earnings, or cash flows in the current or previous annual reporting periods.
Forward-Looking Statements
Our Annual Report on Form 10-K for fiscal 2015, and information we provide in our Annual Report to Stockholders, press
releases, and other investor communications including those on our corporate website, may contain a number of forward-
looking statements regarding, without limitation, planned store growth, new markets, expected sales, projected earnings
levels, capital expenditures, and other matters. These forward-looking statements reflect our then current beliefs, projections,
and estimates with respect to future events and our projected financial performance, operations, and competitive position.
The words “plan,” “expect,” “target,” “anticipate,” “estimate,” “believe,” “forecast,” “projected,” “guidance,” “looking ahead” and
similar expressions identify forward-looking statements.
Future economic and industry trends that could potentially impact revenue, profitability, and growth remain difficult to predict.
Our forward-looking statements are subject to risks and uncertainties which could cause our actual results to differ materially
from those forward-looking statements and our previous expectations and projections. Refer to Item 1A in this Annual Report
on Form 10-K for a more complete discussion of risk factors for Ross and dd's DISCOUNTS. The factors underlying our
forecasts are dynamic and subject to change. As a result, any forecasts or forward-looking statements speak only as of the
date they are given and do not necessarily reflect our outlook at any other point in time. We disclaim any obligation to update
or revise these forward-looking statements.