Stein Mart 2009 Annual Report Download - page 21

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to interest rate risk primarily through borrowings under our revolving credit facility which are at variable rates. The
facility permits debt commitments up to $150 million, has a January 2012 maturity date and bears interest at spreads over the prime
rate and LIBOR. At January 30, 2010, we had no direct borrowings under the facility.
For 2009, average borrowings under our revolving credit facility were $14.5 million. If interest rates on 2009 average borrowings
changed by 100 basis points, our annual interest expense would change by $145,000, assuming comparable borrowing levels.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The consolidated financial statements and the Report of Independent Registered Certified Public Accounting Firm thereon are filed
pursuant to this Item 8 and are included in this report beginning on page F-1.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer,
we have carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as
defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, as of the end of the period covered
by this report.
No system of controls, no matter how well designed and operated, can provide absolute assurance that the objectives of the system
of controls are met, and no evaluation of controls can provide absolute assurance that the system of controls has operated effectively
in all cases. Our disclosure controls and procedures, however, are designed to provide reasonable assurance that the objectives of
disclosure controls and procedures are met.
Based on the evaluation discussed above, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure
controls and procedures were effective as of the date of that evaluation to provide reasonable assurance that the objectives of
disclosure controls and procedures are met.
Management’s Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is
defined in Exchange Act Rule 13a-15(f). Our internal control over financial reporting was designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with
generally accepted accounting principles.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes
in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Management assessed the effectiveness of our internal control over financial reporting as of January 30, 2010. In making this
assessment, management used the criteria set forth in Internal Control-Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission. Based on that assessment, management concluded that our internal control over
financial reporting was effective as of January 30, 2010.
The effectiveness of the Company’s internal control over financial reporting as of January 30, 2010 has been audited by
PricewaterhouseCoopers LLP, an independent registered certified public accounting firm, as stated in their report which is included on
page F-1 herein.
Changes in Control Over Financial Reporting
There were no changes in the Company’s internal control over financial reporting during the last fiscal quarter that have materially
affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
ITEM 9B. OTHER INFORMATION
None.
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