Dillard's 2010 Annual Report Download - page 39

AMOUNT OF COMMITMENT EXPIRATION PER PERIOD
(in thousands of dollars) Total Amounts After 5
Other Commercial Commitments Committed Within 1 year 2 - 3 years 4 - 5 years years
$1.0 billion line of credit, none
outstanding(1) ..................... $ — $ — $— $— $—
Standby letters of credit ............... 85,751 85,751 — — —
Import letters of credit ................ 5,002 5,002 — — —
Total commercial commitments .......... $90,753 $90,753 $— $— $—
(1) Availability under the credit facility is limited to 85% of the inventory of certain Company
subsidiaries (approximately $818 million at January 29, 2011) which has not been reduced by
outstanding letters of credit of $90.8 million.
NEW ACCOUNTING PRONOUNCEMENTS
Consolidation of Variable Interest Entities
On January 31, 2010, the Company adopted changes issued by the Financial Accounting Standards
Board (FASB) relating to accounting for variable interest entities. These changes require an enterprise
to perform an analysis to determine whether the enterprise’s variable interest or interests give it a
controlling financial interest in a variable interest entity; to require ongoing reassessments of whether
an enterprise is the primary beneficiary of a variable interest entity; to eliminate the solely quantitative
approach previously required for determining the primary beneficiary of a variable interest entity; to
add an additional reconsideration event for determining whether an entity is a variable interest entity
when any changes in facts and circumstances occur such that holders of the equity investment at risk,
as a group, lose the power from voting rights or similar rights of those investments to direct the
activities of the entity that most significantly impact the entity’s economic performance; and to require
enhanced disclosures that will provide users of financial statements with more transparent information
about an enterprise’s involvement in a variable interest entity. The adoption of these changes had no
material impact on the Company’s consolidated financial statements.
Fair Value Measurements and Disclosures
In January 2010, the FASB issued ASU 2010-06, an update to Topic 820, Fair Value Measurements
and Disclosures. ASU 2010-06 provides an update specifically to Subtopic 820-10 that requires new
disclosures including details of significant transfers in and out of Level 1 and Level 2 measurements
and the reasons for the transfers and a gross presentation of activity within the Level 3 roll forward,
presenting separately information about purchases, sales, issuances and settlements. ASU 2010-06 is
effective for the first interim or annual reporting period beginning after December 15, 2009, except for
the gross presentation of the Level 3 roll forward, which is required for interim and annual reporting
periods beginning after December 15, 2010. The adoption of ASU 2010-06 did not have a material
impact on the Company’s consolidated financial statements.
FORWARD-LOOKING INFORMATION
This report contains certain forward-looking statements. The following are or may constitute
forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995:
statements including (a) words such as ‘‘may,’’ ‘‘will,’’ ‘‘could,’’ ‘‘believe,’’ ‘‘expect,’’ ‘‘future,’’
‘‘potential,’’ ‘‘anticipate,’’ ‘‘intend,’’ ‘‘plan,’’ ‘‘estimate,’’ ‘‘continue,’’ or the negative or other variations
thereof; (b) statements regarding matters that are not historical facts; and (c) statements about the
Company’s future occurrences, plans and objectives, including statements regarding management’s
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