Dillard's 2010 Annual Report Download - page 60

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Notes to Consolidated Financial Statements (Continued)
4. Revolving Credit Agreement (Continued)
of 0.25% of the committed amount less outstanding borrowings and letters of credit. The Company had
weighted-average borrowings of $8.7 million and $57.2 million during fiscal 2010 and 2009, respectively.
Under the credit agreement, the Company unilaterally reduced the previous $1.2 billion credit
facility by $200 million to $1.0 billion, effective September 1, 2010, in order to reduce the amount of
commitment fees. Planned inventory levels would not allow for utilization of the full $1.2 billion. All
other aspects of the credit agreement remain unchanged.
5. Long-Term Debt
Long-term debt consists of the following:
(in thousands of dollars) January 29, 2011 January 30, 2010
Unsecured notes, at rates ranging from 6.63% to
9.13%, due 2011 through 2028 ............... $723,194 $724,369
Term note, payable monthly through 2012 and
bearing interest at a rate of 5.93% ............ 21,295 22,177
Mortgage note, payable monthly through 2013 and
bearing interest at a rate of 9.25% ............ 1,923 2,760
746,412 749,306
Current portion ........................... (49,166) (1,719)
$697,246 $747,587
During fiscal 2010, the Company repurchased $1.2 million face amount of 7.13% notes with an
original maturity on August 1, 2018. This repurchase resulted in a pretax gain of approximately
$21 thousand which was recorded in net interest and debt expense.
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 $21.3 million and $22.2 million
at January 29, 2011 and January 30, 2010, respectively.
There are no financial covenants under any of the debt agreements. Building, land, and land
improvements with a carrying value of $4.7 million at January 29, 2011 were pledged as collateral on
the mortgage note. Maturities of long-term debt over the next five years are approximately $49 million,
$77 million, $0, $0 and $0.
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