Dillard's 2008 Annual Report Download - page 41

AMOUNT OF COMMITMENT EXPIRATION PER PERIOD
Total
Amounts
Committed
Within 1
year
2-3
years
4-5
years
After 5
years
(in thousands of dollars)
Other Commercial Commitments
$1.2 billion line of credit, none outstanding (1) ............... $ — $ — $ — $— $—
Standby letters of credit ................................. 87,520 84,105 3,415 — —
Import letters of credit .................................. 5,410 5,410 — — —
Total commercial commitments ........................... $92,930 $89,515 $3,415 $— $—
(1) Availability under the credit facility is limited to 85% of the inventory of certain Company subsidiaries
(approximately $828 million at January 31, 2009) which has not been reduced by outstanding short-term
borrowings of $200.0 million or outstanding letters of credit of $92.9 million.
NEW ACCOUNTING PRONOUNCEMENTS
In March 2008, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial
Accounting Standards (“SFAS”) No. 161, Disclosures about Derivative Instruments and Hedging Activities—an
Amendment of FASB Statement No. 133 (“SFAS 161”). SFAS 161 requires entities to provide enhanced
disclosures related to how an entity uses derivative instruments, how derivatives are accounted for under FASB
Statement No. 133, Accounting for Derivative Instruments and Hedging Activities and how derivative
instruments and the related hedged items impact an entity’s financial statements. The provisions of SFAS 161 are
effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008,
with early adoption encouraged. We expect that the adoption of SFAS 161 will not have a material impact on our
consolidated financial statements.
In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interest in Consolidated Financial
Statements (“SFAS 160”). SFAS 160’s objective is to improve the relevance, comparability, and transparency of
the financial information that a reporting entity provides in its consolidated financial statements by establishing
accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a
subsidiary. SFAS 160 will be effective for fiscal years and interim periods within those fiscal years, beginning on
or after December 15, 2008. We expect that the adoption of SFAS 160 will not have a material impact on our
consolidated financial statements.
In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and
Financial Liabilities — Including an Amendment of FASB Statement No. 115 (“SFAS 159”).This statement
permits entities to choose to measure many financial instruments and certain other items at fair value. SFAS 159
was effective February 3, 2008, and we have elected not to measure any financial instruments or certain other
items at fair value.
In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements (“SFAS 157”).This
statement defines fair value, establishes a framework for measuring fair value in generally accepted accounting
principles, and expands disclosures about fair value measurements. This statement applies under other
accounting pronouncements that require or permit fair value measurements, the FASB having concluded in those
other accounting pronouncements that fair value is the relevant measurement attribute. This statement was
effective for financial assets and liabilities in financial statements issued for fiscal years beginning after
November 15, 2007. The adoption of this portion of the statement did not have a material impact on our
consolidated financial statements.
In February 2008, the FASB issued FSP SFAS 157-2, Effective Date for FASB Statement No. 157. This FSP
permits the delayed application of SFAS 157 for all nonrecurring fair value measurements of nonfinancial assets
and nonfinancial liabilities until fiscal years beginning after November 15, 2008. We have chosen to adopt SFAS
157 in accordance with the guidance of FSP SFAS 157-2 as stated above.
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