Dillard's 2012 Annual Report Download - page 80

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Notes to Consolidated Financial Statements (Continued)
14. Fair Value Disclosures (Continued)
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
The FASB’s accounting guidance utilizes a fair value hierarchy that prioritizes the inputs to the
valuation techniques used to measure fair value into three broad levels:
• Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical
assets or liabilities
• Level 2: Inputs, other than quoted prices, that are observable for the asset or liability, either
directly or indirectly; these include quoted prices for similar assets or liabilities in active markets
and quoted prices for identical or similar assets or liabilities in markets that are not active
• Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions
Basis of Fair Value Measurements
Quoted Prices Significant
In Active Other Significant
Markets for Observable Unobservable
Fair Value Identical Items Inputs Inputs
(in thousands) of Assets (Level 1) (Level 2) (Level 3)
Long-lived assets held for use
As of February 2, 2013 .................... $ 5,000 $— $5,000 $ —
Long-lived assets held for sale
As of February 2, 2013 .................... $ 7,358 $— $ 940 $ 6,418
As of January 28, 2012 .................... 17,348 — — 17,348
As of January 29, 2011 .................... 27,548 — — 27,548
Long-lived assets held for use
During fiscal 2012, long-lived assets held for use were written down to their fair value of
$5.0 million, resulting in an impairment charge of $1.0 million, which was included in earnings for the
period. The input used to calculate the fair value of these long-lived assets held for use was based upon
a contract the Company has currently entered to sell the assets.
Long-lived assets held for sale
During fiscal 2012, the Company sold five former retail store locations with carrying values totaling
$9.4 million. During fiscal 2012, long-lived assets held for sale were written down to their fair value of
$7.4 million, resulting in an impairment charge of $0.6 million, which was included in earnings for the
period. The input used to calculate the fair value of $0.9 million of these long-lived assets held for sale
was based upon a contract the Company has currently entered to sell the assets. The inputs used to
calculate the fair value of $6.4 million of these long-lived assets held for sale included selling prices
from commercial real estate transactions for similar assets in similar markets that we estimated would
be used by a market participant in valuing these assets.
During fiscal 2011, the Company sold two former retail store locations with carrying values totaling
$9.0 million. During fiscal 2011, long-lived assets held for sale were written down to their fair value of
$17.3 million, resulting in an impairment charge of $1.2 million, which was included in earnings for the
period.
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