Dillard's 2013 Annual Report Download - page 40

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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: (a) statements including 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 expectations and forecasts for fiscal
2014. The Company cautions that forward-looking statements contained in this report are based on estimates, projections,
beliefs and assumptions of management and information available to management at the time of such statements and are not
guarantees of future performance. The Company disclaims any obligation to update or revise any forward-looking statements
based on the occurrence of future events, the receipt of new information, or otherwise. Forward-looking statements of the
Company involve risks and uncertainties and are subject to change based on various important factors. Actual future
performance, outcomes and results may differ materially from those expressed in forward-looking statements made by the
Company and its management as a result of a number of risks, uncertainties and assumptions. Representative examples of those
factors include (without limitation) general retail industry conditions and macro-economic conditions; economic and weather
conditions for regions in which the Company's stores are located and the effect of these factors on the buying patterns of the
Company's customers, including the effect of changes in prices and availability of oil and natural gas; the availability of
consumer credit; the impact of competitive pressures in the department store industry and other retail channels including
specialty, off-price, discount and Internet retailers; changes in consumer confidence, spending patterns, debt levels and their
ability to meet credit obligations; high levels of unemployment; changes in legislation, affecting such matters as the cost of
employee benefits or credit card income; adequate and stable availability of materials, production facilities and labor from
which the Company sources its merchandise at acceptable pricing; changes in operating expenses, including employee wages,
commission structures and related benefits; system failures or data security breaches; possible future acquisitions of store
properties from other department store operators; the continued availability of financing in amounts and at the terms necessary
to support the Company's future business; fluctuations in LIBOR and other base borrowing rates; potential disruption from
terrorist activity and the effect on ongoing consumer confidence; epidemic, pandemic or other public health issues; potential
disruption of international trade and supply chain efficiencies; world conflict and the possible impact on consumer spending
patterns and other economic and demographic changes of similar or dissimilar nature, and other risks and uncertainties,
including those detailed from time to time in our periodic reports filed with the Securities and Exchange Commission,
particularly those set forth under the caption "Item 1A, Risk Factors" in this Form 10-K.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
The table below provides information about the Company's obligations that are sensitive to changes in interest rates. The
table presents maturities of the Company's long-term debt and subordinated debentures along with the related weighted-average
interest rates by expected maturity dates.
(in thousands of dollars)
Expected Maturity Date
(fiscal year) 2014 2015 2016 2017 2018 Thereafter Total Fair Value
Long-term debt . . . . . . . . . $ — $ — $ — $ 87,201 $160,959 $ 366,625 $ 614,785 $ 667,469
Average fixed interest rate — — — 6.6% 7.1% 7.5% 7.3%
Subordinated debentures . . $ — $ — $ — $ — $ — $ 200,000 $ 200,000 $ 203,680
Average interest rate . . . . . — — — — — 7.5% 7.5%
The Company is exposed to market risk from changes in the interest rates under its $1.0 billion revolving credit facility.
Outstanding balances under this facility bear interest at a variable rate based on JPMorgan's Base Rate or LIBOR plus 1.5%.
The Company had weighted average borrowings of $45.5 million during fiscal 2013. Based on the average amount outstanding
during fiscal 2013, a 100 basis point change in interest rates would result in an approximate $0.5 million annual change to
interest expense.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
The consolidated financial statements of the Company and notes thereto are included in this report beginning on
page F-1.