Ross 2006 Annual Report Download - page 59

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41
Note H: Stockholders’ Equity
Preferred stock. The Company has four million shares of preferred stock authorized, with a par value of $.01 per share. No
preferred stock is issued or outstanding.
Common stock. In November 2005, the Company’s Board of Directors authorized a new two-year stock repurchase program of
up to $400.0 million for fiscal 2006 and 2007. In January 2004, the Company’s Board of Directors authorized a stock repurchase
program of up to $350.0 million for 2004 and 2005. The following table summarizes the Company’s stock repurchase activity in
fiscal 2006, 2005 and 2004:
Shares Average
repurchased repurchased Repurchased
Fiscal Year (in millions) price (in millions)
2006 7.1 $ 28.17 $ 200.0
2005 6.4 $ 27.26 $ 175.0
2004 6.5 $ 26.77 $ 175.0
Dividends. In January 2007, the Company’s Board of Directors declared a quarterly cash dividend payment of $.075 per common
share, payable on or about March 30, 2007. The Company’s Board of Directors declared quarterly cash dividends of $.06 per
common share in January, May, August and November 2006, a cash dividend of $.06 per common share in November 2005,
cash dividends of $.05 per common share in January, May, and August 2005 and cash dividends of $.0425 per common share
in January, May, August and November 2004.
2004 Equity Incentive Plan. The Company has one equity incentive compensation plan, the 2004 Equity Incentive Plan (the
“2004 Plan”). The 2004 Plan provides for various types of incentive awards, which may potentially include the grant of non-quali-
fied and incentive stock options, stock appreciation rights, restricted stock purchase rights, restricted stock shares, restricted
stock units, performance shares, performance units and deferred stock units. The 2004 Plan also provides for the automatic
grant of stock options to each non-employee director at pre-established times and at a predetermined value. To date, the
Company has granted stock options and restricted stock shares under the 2004 Plan. Stock options are granted at exercise
prices not less than the fair market value on the date the option is granted, expire not more than ten years from the date of grant,
and normally vest over a period not exceeding five years from the date of grant. Restricted shares are granted to officers and
key employees. The fair value of these shares at the date of grant is expensed on a straight-line basis over the vesting period of
generally two to four years.