Ross 2014 Annual Report Download - page 47

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Treasury stock. The Company records treasury stock at cost. Treasury stock includes shares purchased from employees for
tax withholding purposes related to vesting of restricted stock grants.
Earnings per share (“EPS”). The Company computes and reports both basic EPS and diluted EPS. Basic EPS is computed
by dividing net earnings by the weighted average number of common shares outstanding for the period. Diluted EPS is
computed by dividing net earnings by the sum of the weighted average number of common shares and dilutive common stock
equivalents outstanding during the period. Diluted EPS reflects the total potential dilution that could occur from outstanding
equity plan awards, including unexercised stock options and unvested shares of both performance and non-performance based
awards of restricted stock and restricted stock units.
In fiscal 2014, 2013, and 2012 there were 2,500, 2,900, and 53,900 weighted average shares, respectively, that were excluded
from the calculation of diluted EPS because their effect would have been anti-dilutive for those years.
The following is a reconciliation of the number of shares (denominator) used in the basic and diluted EPS computations:
Effect of dilutive
Basic common stock Diluted
Shares in (000s) EPS equivalents EPS
2014
Shares 206,777 2,262 209,039
Amount $ 4.47 $ (0.05) $ 4.42
2013
Shares 212,881 2,924 215,805
Amount $ 3.93 $ (0.05) $ 3.88
2012
Shares 219,130 3,654 222,784
Amount $ 3.59 $ (0.06) $ 3.53
Comprehensive income. Comprehensive income includes net earnings and components of other comprehensive income
(loss), net of tax, consisting of unrealized investment gains or losses.
Recently issued accounting standards. In May 2014, the Financial Accounting Standards Board (“FASB”) issued
Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. The guidance provides a five-step
analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a company
should recognize revenue when the customer obtains control of promised goods or services in an amount that reflects the
consideration which the company expects to receive in exchange for those goods or services. ASU 2014-09 is effective for the
Company’s annual and interim reporting periods beginning in fiscal 2017. The Company is currently evaluating the effect that
adoption of this new guidance will have on its consolidated financial statements.
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