Dillard's 2009 Annual Report Download - page 61

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
4. Goodwill
The changes in the carrying amount of goodwill for the retail segment for the years ended
January 30, 2010 and January 31, 2009 are as follows (in thousands):
Accumulated
Impairment
Gross Losses Net
Goodwill balance at February 3, 2007 .......... $39,214 $ (4,703) $ 34,511
Impairment losses during fiscal 2007 ......... (2,599) (2,599)
Goodwill balance at February 2, 2008 .......... 39,214 (7,302) 31,912
Impairment losses during fiscal 2008 ......... (31,912) (31,912)
Goodwill balance at January 31, 2009 and
January 30, 2010 ........................ $39,214 $(39,214) $ —
The goodwill write-off of $31.9 million during fiscal 2008 was for seven stores where the projected
cash flows were unable to sustain the amount of goodwill. The goodwill write-off of $2.6 million during
fiscal 2007 was for a store that closed during that year where the projected cash flows were unable to
sustain the amount of goodwill. There was no further goodwill activity in fiscal 2009.
5. Revolving Credit Agreement
At January 30, 2010, the Company maintained a $1.2 billion revolving credit facility (‘‘credit
agreement’’) with JPMorgan Chase Bank (‘‘JPMorgan’’) as the lead agent for various banks, secured by
the inventory of Dillard’s, Inc. operating subsidiaries. The credit agreement expires December 12, 2012.
Borrowings under the credit agreement accrue interest at either JPMorgan’s Base Rate minus
0.5% or LIBOR plus 1.0% (1.23% at January 30, 2010) subject to certain availability thresholds as
defined in the credit agreement. During the period April 1, 2009 through June 30, 2009, interest on
borrowings under the credit agreement accrued interest at either JPMorgan’s Base Rate minus 0.25%
of LIBOR plus 1.25% due to lower average availability (which is analyzed each calendar quarter).
Limited to 85% of the inventory of certain Company subsidiaries, availability for borrowings and
letter of credit obligations under the credit agreement was $816.3 million at January 30, 2010. No
borrowings were outstanding at January 30, 2010. Letters of credit totaling $89.6 million were issued
under this credit agreement leaving unutilized availability under the facility of $726.7 million at
January 30, 2010. Borrowings of $200 million were outstanding as of January 31, 2009. There are no
financial covenant requirements under the credit agreement provided that availability for borrowings
and letters of credit exceeds $100 million. The Company pays an annual commitment fee to the banks
of 0.25% of the committed amount less outstanding borrowings and letters of credit. The Company had
weighted-average borrowings of $57.2 million and $251.3 million during fiscal 2009 and 2008,
respectively.
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