Saks Fifth Avenue 2008 Annual Report Download - page 41

FORWARD-LOOKING INFORMATION
The information contained in this Form 10-K that addresses future results or expectations is considered
“forward-looking” information within the definition of the Federal securities laws. Forward-looking information
in this document can be identified through the use of words such as “may,” “will,” “intend,” “plan,” “project,”
“expect,” “anticipate,” “should,” “would,” “believe,” “estimate,” “contemplate,” “possible,” and “point.” The
forward-looking information is premised on many factors, some of which are outlined below. Actual
consolidated results might differ materially from projected forward-looking information if there are any material
changes in management’s assumptions.
The forward-looking information and statements are or may be based on a series of projections and
estimates and involve risks and uncertainties. These risks and uncertainties include such factors as: the level of
consumer spending for luxury apparel and other merchandise carried by the Company and its ability to respond
quickly to consumer trends; macroeconomic conditions and their effect on consumer spending; the Company’s
ability to secure adequate financing; adequate and stable sources of merchandise; the competitive pricing
environment within the retail sector; the effectiveness of planned advertising, marketing, and promotional
campaigns; favorable customer response to relationship marketing efforts of proprietary credit card loyalty
programs; appropriate inventory management; effective expense control; successful operation of the Company’s
proprietary credit card strategic alliance with HSBC Bank Nevada, N.A.; geo-political risks; the performance of
the financial markets; changes in interest rates; and fluctuations in foreign currency. For additional information
regarding these and other risk factors, please refer to Item 1A of Part I in this Form 10-K.
Management undertakes no obligation to correct or update any forward-looking statements, whether as a
result of new information, future events, or otherwise. Persons are advised, however, to consult any further
disclosures management makes on related subjects in its reports filed with the SEC and in its press releases.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
The Company’s exposure to market risk primarily arises from changes in interest rates and the U.S. equity
and bond markets. The effects of changes in interest rates on earnings generally have been small relative to other
factors that also affect earnings, such as sales and operating margins. The Company seeks to manage exposure to
adverse interest rate changes through its normal operating and financing activities, and if appropriate, through the
use of derivative financial instruments. Such derivative instruments can be used as part of an overall risk
management program in order to manage the costs and risks associated with various financial exposures. The
Company does not enter into derivative instruments for trading purposes. The Company is exposed to interest
rate risk primarily through its borrowings under its revolving credit facility.
During 2004 the Company terminated all remaining interest rate swap agreements resulting in net losses.
When combined with net gains from other previously cancelled interest rate swap agreements, the Company had
total unamortized net losses of $53 thousand at January 31, 2009 that are being amortized as a component of
interest expense through 2010. The Company had no net losses at February 2, 2008.
Based on the Company’s market risk sensitive instruments outstanding at January 31, 2009, the Company
has determined that there was no material market risk exposure to the Company’s consolidated financial position,
results of operations, or cash flows as of such date.
Item 8. Financial Statements and Supplementary Data.
Information called for by this item is set forth in the Company’s Consolidated Financial Statements and
supplementary data contained in this report beginning on page F-1.
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