Saks Fifth Avenue 2011 Annual Report Download - page 37

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.
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; 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.
The Company undertakes no obligation to correct or update any forward-looking statements, whether as a
result of new information, future events, or otherwise.
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.
Based on the Company’s market risk sensitive instruments outstanding at January 28, 2012, 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.
Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure.
None.
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