DSW 2009 Annual Report Download - page 62

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The following table presents the activity related to level 3 fair value measurements for the periods presented:
Short-Term
Investments, Net
Long-Term
Investments, Net
Short-Term
Investments, Net
Long-Term
Investments, Net
January 30, 2010 January 31, 2009
Fiscal Years Ended
(In thousands)
Carrying value at the beginning of the period .... $1,845 $ 1,266 70,005 12,500
Maturities and sales....................... (68,855) (7,600)
Purchase of equity investment ............... 1,151
Transfer out of level 3 ..................... (1,266) (1,150)
Transfers between short-term and long-term
investments, net ........................ (1,845) 1,845 2,500 (2,500)
Reclassification of unrealized losses on
available-for-sale securities to an
other-than-temporary impairment ........... 655
Unrealized losses included in accumulated other
comprehensive loss ..................... (655)
Other-than-temporary impairment included in
earnings ............................. (2,500) (1,134)
Carrying value at the end of the period ........ $ 0 $1,151 $ 1,845 $ 1,266
The following table presents non-financial assets and liabilities measured at fair value on a nonrecurring basis
as of January 30, 2010:
As of
January 30,
2010 Level 1 Level 2 Level 3
(In thousands)
Assets:
Long-lived assets to be held and used ................ $1,004 $1,004
$1,004 $1,004
Long-lived assets held and used with a carrying amount of $1.9 million were written down to their fair value of
$1.0 million, resulting in an impairment charge of $0.9 million, which was included in earnings for fiscal 2009.
The Company periodically evaluates the carrying amount of its long-lived assets, primarily property and
equipment, and finite life intangible assets when events and circumstances warrant such a review to ascertain if any
assets have been impaired. The carrying amount of a long-lived asset or asset group is considered impaired when the
carrying value of the asset or asset group exceeds the expected future cash flows from the asset or asset group. The
Company reviews are conducted at the lowest identifiable level, which include a store. The impairment loss
recognized is the excess of the carrying value of the asset or asset group over its fair value, based on a discounted
cash flow analysis using a discount rate determined by management. Should an impairment loss be realized, it will
generally be included in cost of sales. The impairment charges were recorded within the DSW reportable segment.
7. DSW $150 MILLION CREDIT FACILITY
The Company has a $150 million secured revolving credit facility with a term of five years that will expire on
July 5, 2010. Under this facility, the Company and its subsidiaries are named as co-borrowers. The facility has
borrowing base restrictions and provides for borrowings at variable interest rates based on LIBOR, the prime rate
and the Federal Funds effective rate, plus a margin. The Company’s obligations under this facility are secured by a
lien on substantially all of its and one of its subsidiary’s personal property and a pledge of its shares of DSW Shoe
F-18
DSW INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)