Ross 2015 Annual Report Download - page 50

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Property and equipment. Property and equipment are stated at cost, less accumulated depreciation and amortization.
Depreciation is calculated using the straight-line method over the estimated useful life of the asset, typically ranging from
three to 12 years for equipment and information systems and 20 to 40 years for land improvements and buildings.
Depreciation and amortization expense on property and equipment was $274.8 million, $233.0 million, and $206.1 million for
fiscal 2015, 2014, and 2013, respectively. The cost of leasehold improvements is amortized over the useful life of the asset
or the applicable lease term, whichever is less. The Company capitalizes interest during the construction period. Interest
capitalized was $6.5 million, $10.8 million, and $10.8 million in fiscal 2015, fiscal 2014, and fiscal 2013, respectively. As of
January 30, 2016, January 31, 2015, and February 1, 2014 the Company had $35.8 million, $58.6 million, and $61.3 million,
respectively, of property and equipment purchased but not yet paid. These purchases are included in Property and
Equipment and in Accounts payable and Accrued expenses and other in the accompanying Consolidated Balance Sheets.
Other long-term assets. Other long-term assets as of January 30, 2016 and January 31, 2015 consisted of the following:
($000)
2015
2014
Deferred compensation (Note B)
$
86,073
$
94,054
Restricted cash and investments
55,913
56,107
Other
10,701
10,508
Total
$
152,687
$
160,669
Property and other long-term assets 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 2015, 2014, and
2013, 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. The lease loss liability was $1.8 million and $2.7 million, as of January 30,
2016 and January 31, 2015, respectively. Operating costs, including depreciation, of stores to be closed are expensed
during the period they remain in use. In 2015, the Company closed six stores. In 2014, the Company closed nine stores.
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 $100.3 million and $123.8 million at January 30, 2016 and January 31, 2015,
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 30, 2016 and January 31, 2015 consisted of the
following:
($000)
2015
2014
Workers’ compensation
$
93,452
$
87,388
General liability
39,895
37,253
Medical plans
4,155
3,159
Total
$
137,502
$
127,800