Ross 2014 Annual Report Download - page 44

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In September 2014, the Company completed the purchase of its previously leased New York buying office for $222 million.
Other long-term assets. Other long-term assets as of January 31, 2015 and February 1, 2014 consisted of the following:
($000)
2014 2013
Deferred compensation (Note B) $ 94,054 $ 88,269
Restricted cash and investments 56,107 50,763
Deposits
3,285 3,285
Goodwill
2,889 2,889
Other
7,147 5,423
Total
$ 163,482 $ 150,629
Property and other long-term assets that are subject to amortization are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount of an asset may not be recoverable. Intangible assets that are not subject
to amortization, including goodwill, are tested for impairment annually or more frequently if events or changes in circumstances
indicate that the asset may be impaired. Based on the Company’s evaluation during fiscal 2014, 2013, and 2012, no impairment
charges were recorded.
Store closures. The Company continually reviews the operating performance of individual stores. For stores that are closed,
the Company records a liability for future minimum lease payments net of estimated sublease recoveries and related ancillary
costs at the time the liability is incurred. In 2014, the Company closed nine stores. In 2013, the Company closed 11 stores. The
lease loss liability was $2.7 million and $6.3 million, as of January 31, 2015 and February 1, 2014, respectively. Operating costs,
including depreciation, of stores to be closed are expensed during the period they remain in use.
Accounts payable. Accounts payable represents amounts owed to third parties at the end of the period. Accounts payable
includes book cash overdrafts (checks issued under zero balance accounts not yet presented for payment) in excess of
cash balances in such accounts of approximately $123.8 million and $75.7 million at January 31, 2015 and February 1, 2014,
respectively. The Company includes the change in book cash overdrafts in operating cash flows.
Insurance obligations. The Company uses a combination of insurance and self-insurance for a number of risk management
activities, including workers’ compensation, general liability, and employee-related health care benefits. The self-insurance and
deductible liability is determined actuarially, based on claims filed and an estimate of claims incurred but not yet reported. Self-
insurance and deductible reserves as of January 31, 2015 and February 1, 2014 consisted of the following:
($000) 2014 2013
Workers’ compensation $ 87,388 $ 82,223
General liability 37,25 3 34,524
Medical plans 3,159 3,537
Total $ 127,8 00 $ 120,284
Workers’ compensation and self-insured medical plan liabilities are included in Accrued payroll and benefits, and accruals for
general liability are included in Accrued expenses and other in the accompanying Consolidated Balance Sheets.
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