Ross 2006 Annual Report Download - page 57

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39
The Company leases approximately 181,000 square feet of office space for its corporate headquarters in Pleasanton, California,
under various facility leases. The lease terms for these facilities generally expire between 2010 and 2014 and contain renewal
provisions.
In October 2004, the Company entered into a lease arrangement to use a portion of the Newark Facility to support distribu-
tion activities for ddā€™s DISCOUNTS for an initial lease term of two years with three one-year renewal options, a minor part of its
remaining useful life. At the end of the original lease term on September 30, 2006, the lease was not renewed and the Company
ceased using this facility.
The aggregate future minimum annual lease payments under leases in effect at February 3, 2007 are as follows:
Operating Synthetic Residual value
($000) leases leases guarantee Total leases
2007 $ 279,573 $ 9,725 $ 9,028 $ 298,326
2008 270,420 4,507 571 275,498
2009 243,428 4,091 āˆ’ 247,519
2010 217,612 4,091 āˆ’ 221,703
2011 184,201 4,091 āˆ’ 188,292
Thereafter 447,151 6,136 56,000 509,287
Total $ 1,642,385 $ 32,641 $ 65,599 $ 1,740,625
Total rent expense for all leases was as follows:
($000) 2006 2005 2004
Rent expense $ 274,211 $ 246,214 $ 216,163
Note F: Taxes on Earnings
The provision for taxes consists of the following:
($000) 2006 2005 2004
Current
Federal $ 153,263 $ 112,040 $ 67,763
State 14,064 19,260 13,219
167,327 131,300 80,982
Deferred
Federal (10,268) (1,433) 23,982
State (416) (1,157) 4,119
(10,684) (2,590) 28,101
Total $ 156,643 $ 128,710 $ 109,083
In fiscal 2006, 2005 and 2004, the Company realized tax benefits of $12.1 million, $21.9 million and $14.8 million, respectively,
related to employee equity programs that were credited to additional paid-in capital.