DSW 2009 Annual Report Download - page 55

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In February 2008, the FASB issued an update which delays the effective date of the Fair Value Measurements
and Disclosures topic, ASC 820, for non-financial assets and liabilities that are recognized or disclosed in the
financial statements on a nonrecurring basis to fiscal years beginning after November 15, 2008. ASC 820, which
defines fair value, establishes a framework for measuring fair value under GAAP and expands disclosures about fair
value measurements. The Company adopted this update on February 1, 2009. Refer to Note 6 for additional
information regarding the Company’s fair value measurements.
In April 2008, the FASB issued an update to the Goodwill and Other Intangible Assets topic that removes the
requirement to consider whether an intangible asset can be renewed without substantial cost or material modi-
fications to the existing terms and conditions and replaces it with a requirement that an entity consider its own
historical experience in renewing similar arrangements. The adoption of this update on February 1, 2009 did not
have an impact on the Company’s consolidated financial statements.
In June 2008, the FASB issued accounting guidance to address whether instruments granted in share-based
payment transactions are participating securities prior to vesting and, therefore, need to be included in the earnings
allocation in computing earnings per share. The adoption of this accounting guidance on February 1, 2009 did not
have an impact on the Company’s consolidated financial statements.
In April 2009, the FASB issued accounting guidance which affirms that the objective of fair value when the
market for an asset is not active is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date under current market conditions. The
accounting guidance provides guidance for estimating fair value when the volume and level of market activity for an
asset or liability have significantly decreased and determining whether a transaction was orderly and applies to all
fair value measurements when appropriate. The adoption of this accounting guidance during the quarter ended
August 1, 2009 did not have an impact on the Company’s consolidated financial statements.
In April 2009, the FASB issued updates to existing guidance for determining whether an other-than-temporary
impairment of debt securities has occurred. This guidance replaces the existing requirement that an entity’s
management assert it has both the intent and ability to hold an impaired security until recovery with a requirement
that management assert (a) it does not have the intent to sell the security, and (b) it is more likely than not it will not
have to sell the security before recovery of its cost basis. The adoption of this update during the quarter ended
August 1, 2009 did not have an impact on the Company’s consolidated financial statements.
In April 2009, the FASB issued accounting guidance which requires an entity to provide the annual disclosures
required by the Financial Instruments topic, ASC 825, in its interim financial statements. The adoption of this
accounting guidance during the quarter ended August 1, 2009 did not have an impact on the Company’s
consolidated financial statements.
In January 2010, the FASB issued updates to existing guidance related to fair value measurements. Among
these updates, entities will be required to provide enhanced disclosures about transfers into and out of level 1 and
level 2 classifications, provide separate disclosures about purchases, sales, issuances and settlements relating to the
tabular reconciliation of beginning and ending balances of the level 3 classification and provide greater disag-
gregation for each class of assets and liabilities that use fair value measurements. Except for the detailed level 3
disclosures, the new standard is effective for the Company for interim and annual reporting periods beginning after
January 30, 2010. The requirement related to level 3 fair value measurements is effective for the Company for
interim and annual reporting periods beginning after January 29, 2011. The Company does not expect that the
adoption of this new standard will have a material impact to its consolidated financial statements.
2. RELATED PARTY TRANSACTIONS
RVI — Under the terms of the Amended and Restated Shared Services Agreement, DSW provides shared
finance, information technology and human resources services to RVI. In fiscal 2009, DSW charged RVI
$0.7 million for these services. In fiscal 2008 and 2007, DSW charged RVI and its now former subsidiaries
F-11
DSW INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)