Dillard's 2009 Annual Report Download - page 73

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
14. Leases and Commitments (Continued)
The future minimum rental commitments as of January 30, 2010 for all non-cancelable leases for
buildings and equipment are as follows:
(in thousands of dollars) Operating Capital
Fiscal Year Leases Leases
2010 ........................................... $ 44,163 $ 3,568
2011 ........................................... 44,211 3,508
2012 ........................................... 34,716 13,787
2013 ........................................... 11,519 1,676
2014 ........................................... 9,653 1,428
After 2014 ....................................... 34,782 8,943
Total minimum lease payments ........................ $179,044 32,910
Less amount representing interest ...................... (8,713)
Present value of net minimum lease payments (of which $1,775
is currently payable) .............................. $24,197
Renewal options from three to 25 years exist on the majority of leased properties. At January 30,
2010 the Company is committed to incur costs of approximately $5 million to acquire, complete and
furnish certain stores and equipment.
We were a member of a class of a settled lawsuit against Visa U.S.A. Inc. (‘‘Visa’’) and
MasterCard International Incorporated (‘‘MasterCard’’). The Visa Check/MasterMoney Antitrust
litigation settlement became final on June 1, 2005. The settlement provided $3.05 billion in
compensatory relief by Visa and MasterCard to be funded over a fixed period of time to respective
Settlement Funds. We received and recorded $5.7 million ($3.6 million after tax) as part of our share of
the proceeds from the settlement during year ended January 30, 2010. This amount was recorded in
service charges and other income.
At January 30, 2010, letters of credit totaling $89.6 million were issued under the Company’s
$1.2 billion revolving credit facility.
On May 27, 2009, a lawsuit was filed in the United States District Court for the Eastern District of
Arkansas styled Steven Harben, Derivatively on Behalf of Nominal Defendant Dillard’s, Inc. v. William
Dillard II et al, Case Number 4:09-IV-395. The lawsuit generally seeks return of monies and alleges that
certain officers and directors of the Company have been overcompensated and/or received improper
benefits at the expense of the Company and its shareholders. While it is too soon to predict the
outcome of any litigation filed as recently as this suit, the named officers and directors intend to
contest these allegations vigorously.
On June 10, 2009, a lawsuit was filed in the Circuit Court of Pulaski County, Arkansas styled
Billy K. Berry, Derivatively on behalf of Dillard’s, Inc. v. William Dillard II et al, Case
Number CV-09-4227-2. The lawsuit generally seeks return of monies and alleges that certain officers
and directors of the Company have been overcompensated and/or received improper benefits at the
expense of the Company and its shareholders. On February 18, 2010, the Circuit Court entered an
‘‘Order of Dismissal with Prejudice and Final Judgment’’ dismissing the case as to all parties defendant.
Plaintiff has appealed the Court’s Order. The named officers and directors will continue to contest
these allegations vigorously.
F-28