Ross 2014 Annual Report Download - page 33

Download and view the complete annual report

Please find page 33 of the 2014 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

In February 2015, our Board of Directors declared a quarterly cash dividend of $0.235 per common share, payable on March
31, 2015. Our Board of Directors declared cash dividends of $0.20 per common share in February, May, August, and November
2014, cash dividends of $0.17 per common share in January, May, August, and November 2013, and cash dividends of $0.14
per common share in January, May, August, and November 2012.
During fiscal 2014, 2013, and 2012, we paid dividends of $168.5 million, $147.9 million, and $125.7 million, respectively.
In March 2015, our Board of Directors approved a two-for-one stock split in the form of a 100 percent stock dividend, to be
paid on June 11, 2015 to stockholders of record as of April 22, 2015. The stock split will not have an impact on our consolidated
financial position or results of operations. Share and per share amounts have not been restated to reflect the pending stock split.
Short-term trade credit represents a significant source of financing for merchandise inventory. Trade credit arises from
customary payment terms and trade practices with our vendors. We regularly review the adequacy of credit available to us from
all sources and expect to be able to maintain adequate trade credit, bank lines, and other credit sources to meet our capital and
liquidity requirements, including lease payment obligations, in 2015.
Our existing $600 million unsecured revolving credit facility expires in June 2017 and contains a $300 million sublimit for
issuance of standby letters of credit. Interest on this facility is based on LIBOR plus an applicable margin (currently 100 basis
points) and is payable quarterly and upon maturity. As of January 31, 2015, we had no borrowings or standby letters of credit
outstanding on this facility and our $600 million credit facility remains in place and available.
We estimate that existing cash balances, cash flows from operations, bank credit lines, and trade credit are adequate to meet
our operating cash needs and to fund our planned capital investments, common stock repurchases, and quarterly dividend
payments for at least the next twelve months.
Contractual Obligations
The table below presents our significant contractual obligations as of January 31, 2015:
Less than 1 1 – 3 3 – 5 After 5
($000) year years years years Total1
Senior notes $ — $ — $ 85,000 $ 315,000 $ 400,000
Interest payment obligations 18,105 36,210 30,109 50,146 134,570
Operating leases (rent obligations) 432,005 855,580 589,540 475,499 2,352,624
New York buying office ground lease2 6,418 12,835 12,835 958,986 991,074
Purchase obligations 1,928,578 19,726 4,663 — 1,952,967
Total contractual obligations $ 2,385,106 $ 924,351 $ 722,147 $ 1,799,631 $ 5,831,235
¹ We have a $101.7 million liability for unrecognized tax benefits that is included in Other long-term liabilities on our Consolidated Balance Sheets. This liability is excluded from
the schedule above as the timing of payments cannot be reasonably estimated.
2 Our New York buying office building is subject to a 99-year ground lease.
31