Dillard's 2015 Annual Report Download - page 37

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31
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 those statements included under the headings "2016 Guidance" and "Fiscal
2016 Outlook" included in this Management's Discussion and Analysis and other statements regarding management's
expectations and forecasts for fiscal 2016, statements concerning the opening of new stores or the closing of existing stores,
statements concerning capital expenditures and sources of liquidity, statements concerning pension contributions and
statements concerning estimated taxes. 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 SEC, particularly those set forth
under the caption "Item 1A, Risk Factors" in this Annual Report.
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.
Expected Maturity Date
(fiscal year)
(in thousands of dollars) 2016 2017 2018 2019 2020 Thereafter Total Fair Value
Long-term debt . . . . . . . . . $ — $ 87,201 $160,959 $ — $ — $366,625 $614,785 $ 695,058
Average fixed interest rate —% 6.6% 7.1% —% —% 7.5% 7.3%
Subordinated debentures . . $ — $ — $ — $ — $ — $ 200,000 $ 200,000 $ 204,080
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 senior unsecured
revolving credit facility. Outstanding balances under this facility bear interest at a variable rate of LIBOR plus 1.375%. The
Company had weighted average borrowings of $41.3 million during fiscal 2015. Based on the average amount outstanding
during fiscal 2015, a 100 basis point change in interest rates would result in an approximate $0.4 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.