Ross 2006 Annual Report Download - page 32

Download and view the complete annual report

Please find page 32 of the 2006 Ross annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 80

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80

14
Item 6. Selected Financial Data.
The following selected financial data is derived from our consolidated financial statements. The data set forth below should be
read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” the section
“Forward-Looking Statements” in the Company’s Annual Report on Form 10-K and our consolidated financial statements and
notes thereto.
($000, except per share data) 20061 2005 2004 2003 2002
Operations
Sales $ 5,570,210 $ 4,944,179 $ 4,239,990 $ 3,920,583 $ 3,531,349
Cost of goods sold2 4,317,527 3,852,591 3,286,604 2,925,454 2,636,086
Percent of sales 77.5% 77.9% 77.5% 74.6% 74.6%
Selling, general and administrative2 863,033 766,144 657,668 621,706 566,452
Percent of sales 15.5% 15.5% 15.5% 15.9% 16.0%
Impairment of long-lived assets3 − − 15,818 − −
Interest (income) expense, net (8,627) (2,898) 915 (262) 279
Earnings before taxes 398,277 328,342 278,985 373,685 328,532
Percent of sales 7.2% 6.6% 6.6% 9.5% 9.3%
Provision for taxes on earnings 156,643 128,710 109,083 146,111 128,456
Net earnings 241,634 199,632 169,902 227,574 200,076
Percent of sales 4.3% 4.0% 4.0% 5.8% 5.7%
Basic earnings per share $ 1.73 $ 1.38 $ 1.15 $ 1.50 $ 1.28
Diluted earnings per share $ 1.70 $ 1.36 $ 1.13 $ 1.47 $ 1.25
Cash dividends declared
per common share $ .255 $ .220 $ .178 $ .129 $ .100
1 Fiscal 2006 was a 53-week year; all other fiscal years presented were 52 weeks.
2 In periods prior to fiscal 2006, stock-based compensation expense and incentive compensation expense were included in selling, general and administrative expenses. In
accordance with the Company’s implementation of Statement of Financial Accounting Standards No. 123(R), “Share-Based Payment,” all compensation-related expenses are
recorded in a manner similar to other employee payroll costs. Therefore, for periods prior to fiscal 2006, the Company has reclassified the portion of stock-based compensation
and incentive compensation that relates to personnel in the merchandising and distribution organizations from selling, general and administrative expense to cost of goods
sold. See also Notes to Consolidated Financial Statements.
3 For the year ended January 29, 2005, the Company recognized a net impairment charge of $15.8 million on its previously owned corporate headquarters in Newark, California.