DSW 2009 Annual Report Download - page 64

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sharing amount to the Plan each year but has not for the past three fiscal years. The Company incurred costs
associated with the Plan of $1.8 million, $1.9 million and $1.8 million for fiscal 2009, 2008 and 2007, respectively.
10. LEGAL PROCEEDINGS
The Company is involved in various legal proceedings that are incidental to the conduct of its business. The
Company estimates the range of liability related to pending litigation where the amount of the range of loss can be
estimated. The Company records its best estimate of a loss when the loss is considered probable. When a liability is
probable and there is a range of estimated loss, the Company records the most likely estimated liability related to the
claim. In the opinion of management, the amount of any potential liability with respect to current legal proceedings
will not be material to the Company’s results of operations or financial condition. As additional information
becomes available, the Company will assess the potential liability related to its pending litigation and revise the
estimates as needed. Revisions in its estimates and the amount of potential liability could materially impact the
Company’s future results of operations and financial condition.
11. SEGMENT REPORTING
The Company is managed in three operating segments: DSW stores, dsw.com and leased departments. DSW
stores and dsw.com have been aggregated and are presented as one reportable segment, the DSW segment, based on
their similar economic characteristics, products, production processes, target customers and distribution methods.
The Company has identified such segments based on internal management reporting and management respon-
sibilities and measures segment profit as gross profit, which is defined as net sales less cost of sales. All operations
are located in the United States. The goodwill balance of $25.9 million outstanding as of January 30, 2010 and
January 31, 2009 is recorded in the DSW segment related to the DSW stores operating segment. The following
tables present segment information for the Company’s two reportable segments:
DSW
Leased
Departments DSW Inc.
(In thousands)
As of and for the fiscal year ended January 30, 2010
Net sales ................................... $1,455,044 $147,561 $1,602,605
Gross profit ................................. 439,347 28,145 467,492
Capital expenditures ........................... 21,701 84 21,785
Total assets ................................. 784,213 66,543 850,756
As of and for the fiscal year ended January 31, 2009
Net sales ................................... $1,298,886 $164,058 $1,462,944
Gross profit ................................. 351,899 27,200 379,099
Capital expenditures ........................... 80,670 304 80,974
Total assets ................................. 659,876 61,321 721,197
As of and for the fiscal year ended February 2, 2008
Net sales ................................... $1,230,217 $175,398 $1,405,615
Gross profit ................................. 344,276 25,859 370,135
Capital expenditures ........................... 101,269 1,182 102,451
F-20
DSW INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)