Ross 2015 Annual Report Download - page 57

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55
Note E: Leases
The Company currently leases all but three of its store locations with original, non-cancelable terms that in general range
from three to ten years. Store leases typically contain provisions for three to four renewal options of five years each. Most
store leases also provide for minimum annual rentals and for payment of certain expenses. In addition, some store leases
also have provisions for additional rent based on a percentage of sales.
The Company leases three warehouses. Two of the warehouses are in Carlisle, Pennsylvania with leases expiring in 2016
and 2017. The third warehouse is in Fort Mill, South Carolina, with a lease expiring in 2019. The leases for the two Carlisle,
Pennsylvania warehouses contain renewal provisions.
The Company leases approximately 68,000 square feet of office space for its Los Angeles buying office. The lease term for
this facility expires in 2017 and contains renewal provisions. In addition, the Company has a ground lease related to its New
York buying office.
The aggregate future minimum annual lease payments under leases, including the ground lease related to the New York
buying office, in effect at January 30, 2016 are as follows:
($000)
Total operating leases
2016
$
465,085
2017
485,753
2018
422,480
2019
343,645
2020
265,830
Thereafter
1,433,049
Total minimum lease payments
$
3,415,842
Rent expense, including contingent rent and net of sublease income, was $473.2 million, $451.9 million, and $431.8 million
in fiscal 2015, 2014, and 2013, respectively. Contingent rent and sublease income was not significant in any year.
Note F: Taxes on Earnings
The provision for income taxes consisted of the following:
($000)
2015
2014
2013
Current
Federal
497,710
499,009
486,203
State
37,030
36,547
35,053
534,740
535,556
521,256
Deferred
Federal
55,404
23,452
(11,055
)
State
954
1,634
(4,195
)
56,358
25,086
(15,250
)
Total
591,098
560,642
506,006