Dillard's 2009 Annual Report Download - page 62

Download and view the complete annual report

Please find page 62 of the 2009 Dillard's annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 82

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
6. Long-Term Debt
Long-term debt consists of the following:
(in thousands of dollars) January 30, 2010 January 31, 2009
Unsecured notes, at rates ranging from 6.63% to
9.13%, due 2011 through 2028 ............... $724,369 $756,642
Term note, payable monthly through 2012 and
bearing interest at a rate of 5.93% ............ 22,177 23,059
Mortgage note, payable monthly through 2013 and
bearing interest at a rate of 9.25% ............ 2,760 3,523
749,306 783,224
Current portion ........................... (1,719) (25,535)
$747,587 $757,689
During fiscal 2009, the Company repurchased $8.4 million face amount of 9.125% notes with an
original maturity on August 1, 2011. This repurchase resulted in a pretax gain of approximately
$1.7 million which was recorded in net interest and debt expense.
During fiscal 2008, the Company purchased a corporate aircraft by exercising its option under a
synthetic lease and by issuing a $23.6 million term note, secured by letters of credit. The Company then
sold the aircraft for $44.5 million. A gain of $17.6 million was recognized related to the sale and was
recorded in gain on disposal of assets. The note had a carrying value of $22.2 million and $23.1 million
at January 30, 2010 and January 31, 2009, respectively.
There are no financial covenants under any of the debt agreements. Building, land, and land
improvements with a carrying value of $5.0 million at January 30, 2010 were pledged as collateral on
the mortgage note. Maturities of long-term debt over the next five years are approximately $2 million,
$49 million, $77 million, $0 and $0.
Net interest and debt expense consists of the following:
Fiscal Fiscal Fiscal
(in thousands of dollars) 2009 2008 2007
Long-term debt:
Interest ................................. $70,749 $75,490 $82,037
Gain on early retirement of long-term debt ....... (1,653) — —
Amortization of debt expense ................. 1,753 1,842 1,932
70,849 77,332 83,969
Interest on capital lease obligations .............. 2,005 2,154 2,319
Revolving credit facility expenses ................ 3,693 10,263 9,387
Investment interest income ..................... (2,544) (928) (4,119)
$74,003 $88,821 $91,556
Interest paid during fiscal 2009, 2008 and 2007 was approximately $80.3 million, $90.6 million and
$96.2 million, respectively.
F-17