Ross 2014 Annual Report Download - page 46

Download and view the complete annual report

Please find page 46 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

Sales mix. The Company’s sales mix is shown below for fiscal 2014, 2013, and 2012:
2014 2013 2012
Ladies 29% 29% 29%
Home Accents and Bed and Bath 24% 24% 24%
Accessories, Lingerie, Fine Jewelry, and Fragrances 13% 13% 13%
Men’s 13% 13% 13%
Shoes
13% 13% 13%
Children’s 8% 8% 8%
Total 100% 100% 100%
Allowance for sales returns. An allowance for the gross margin loss on estimated sales returns is included in Accrued
expenses and other in the Consolidated Balance Sheets. The allowance for sales returns consists of the following:
($000) Beginning Balance Additions Returns Ending Balance
Year ended:
January 31, 2015 $ 7,431 $ 717,040 $ (715,877) $ 8,594
February 1, 2014 $ 7,165 $ 699,835 $ (699,569) $ 7,431
February 2, 2013 $ 6,426 $ 680,058 $ (679,319) $ 7,165
Store pre-opening. Store pre-opening costs are expensed in the period incurred.
Advertising. Advertising costs are expensed in the period incurred and are included in Selling, general and administrative
expenses. Advertising costs for fiscal 2014, 2013, and 2012 were $72.1 million, $70.2 million, and $67.7 million, respectively.
Stock-based compensation. The Company recognizes compensation expense based upon the grant date fair value of
all stock-based awards, typically over the vesting period. See Note C for more information on the Company’s stock-based
compensation plans.
Taxes on earnings. The Company accounts for income taxes in accordance with Accounting Standards Codification (“ASC”)
740, “Accounting for Income Taxes,” which requires the recognition of deferred tax assets and liabilities for the expected future
tax consequences of events that have been recognized in the Company’s consolidated financial statements or tax returns. In
estimating future tax consequences, the Company generally considers all expected future events other than changes in the
tax law or tax rates. ASC 740 clarifies the criteria that an individual tax position must satisfy for some or all of the benefits of
that position to be recognized in a company’s consolidated financial statements. ASC 740 prescribes a recognition threshold of
more-likely-than-not, and a measurement standard for all tax positions taken or expected to be taken on a tax return, in order
for those tax positions to be recognized in the consolidated financial statements. See Note F.
44