DSW 2013 Annual Report Download - page 35

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Table of Contents
As of February 1, 2014, we have entered into various construction commitments, including capital items to be purchased for projects that were under
construction, or for which a lease has been signed. Our obligations under these commitments aggregated to approximately $6.7 million as of February 1, 2014.
In addition, as of February 1, 2014, we have signed 30 lease agreements for new store locations opening in fiscal 2014 and 2015 with total annual rent of
approximately $10.3 million. In connection with the new lease agreements, we expect to receive a total of approximately $15.7 million of construction and
tenant allowance reimbursements for expenditures at these locations.

Recent Accounting Pronouncements and their impact on DSW are disclosed in Note 3 to the Consolidated Financial Statements included in this Annual Report
on Form 10-K.

As discussed in Note 3 to the Consolidated Financial Statements included elsewhere in this Annual Report on Form 10-K, the preparation of our consolidated
financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of commitments and contingencies at the date of the consolidated financial statements and reported amounts of revenues and expenses
during the reporting period. We base these estimates and judgments on our historical experience and other factors we believe to be relevant, the results of which
form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. The process of
determining significant estimates is fact-specific and takes into account factors such as historical experience, current and expected economic conditions,
product mix, and in some cases, actuarial and appraisal techniques. We constantly re-evaluate these significant factors and make adjustments where facts and
circumstances dictate.
While we believe that our historical experience and other factors considered provide a meaningful basis for the accounting policies applied in the preparation of
the consolidated financial statements, we cannot guarantee that our estimates and assumptions will be accurate. As the determination of these estimates requires
the exercise of judgment, actual results inevitably will differ from those estimates, and such differences may be material to our consolidated financial
statements. We believe the following represent the most significant accounting policies, critical estimates and assumptions, among others, used in the
preparation of our consolidated financial statements:
 


Revenue Recognition. Revenues from merchandise
sales are recognized upon customer receipt of
merchandise, are net of returns through period end,
exclude sales tax and are not recognized until
collectibility is reasonably assured.
For online and charge-send sales, we estimate a time
lag for shipments to record revenue when the
customer receives the goods.
We believe a one day change in our estimate
would not materially impact our revenue.
31
Source: DSW Inc., 10-K, March 27, 2014 Powered by Morningstar® Document Research℠
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