DSW 2008 Annual Report Download - page 54

li
a
bili
ty represents an est
i
mate o
f
t
h
eu
l
t
i
mate cost o
f
c
l
a
i
ms
i
ncurre
d
as o
f
t
h
e
b
a
l
ance s
h
eet
d
ate. Hea
l
t
h
an
d
we
lf
ar
e
e
st
i
mates are ca
l
cu
l
ate
d
ut
ili
z
i
ng c
l
a
i
ms
d
eve
l
opment est
i
mates
b
ase
d
on
hi
stor
i
ca
l
exper
i
ence an
d
ot
h
er
f
actors
.
W
orkers’ compensation and
g
eneral liabilit
y
estimates are calculated utilizin
g
claims development estimates based o
n
hi
stor
i
ca
l
exper
i
ence an
d
ot
h
er
f
actors. T
h
eCompany
h
as purc
h
ase
d
stop
l
oss
i
nsurance to
li
m
i
t
i
ts exposure to an
y
si
gn
ifi
cant exposure on a per person
b
as
i
s
f
or
h
ea
l
t
h
an
d
we
lf
are an
d
on a per c
l
a
i
m
b
as
i
s
f
or wor
k
ers compensat
i
on
and
g
eneral liabilit
y
.Althou
g
h the Compan
y
does not anticipate the amounts ultimatel
y
paid will differ si
g
nificantl
y
from the estimates, self-insurance reserves could be affected if future claim experience differs significantly from the
hi
stor
i
ca
l
tren
d
san
d
t
h
eactuar
i
a
l
assumpt
i
ons. For examp
l
e,
f
or wor
k
ers’ compensat
i
on an
dli
a
bili
t
yf
uture c
l
a
i
ms
e
st
i
mates, a 1%
i
ncrease or
d
ecrease to t
h
eassum
p
t
i
ons
f
or c
l
a
i
ms costs an
dl
oss
d
eve
l
o
p
ment
f
actors wou
ld i
ncrease
or decrease our self-insurance accrual at January 31, 2009, by approximately
$
0.1 million. The self-insurance reserves
were
$
1.8 million and
$
1.4 million at the end of fiscal 2008 and 2007, respectivel
y
.
Goo
d
wi
ll
—Goo
d
w
ill
represents t
h
e excess cost over t
h
eest
i
mate
df
a
i
rva
l
ues o
f
net assets
i
nc
l
u
di
ng
id
ent
ifi
a
bl
e
i
ntan
g
ible assets of businesses acquired. At Januar
y
31, 2009 and Februar
y
, 2, 2008, the balance of
g
oodwill related t
o
t
he DSW stores was
$
25.9 million. Goodwill is tested for impairment at least annually in accordance with Statement of
F
i
nanc
i
a
l
Account
i
ng Stan
d
ar
d
s(“SFAS”)No.142,Goo
d
wi
ll
an
d
Ot
h
er Intan
g
i
bl
eAsset
s
.
Management eva
l
uates t
h
e
f
a
i
rva
l
ue o
f
t
h
e report
i
ng un
i
tus
i
ng mar
k
et
b
ase
d
ana
l
ys
i
storev
i
ew mar
k
et
c
ap
i
ta
li
zat
i
on as we
ll
as rev
i
ew
i
n
g
a
di
scounte
d
cas
hfl
ow ana
ly
s
i
sus
i
n
g
mana
g
ement’s assumpt
i
ons. Severa
l
factors could result in an impairment charge. Failure to achieve sufficient levels of cash flow at the reporting unit
level or a significant and sustained decline in our stock price could result in goodwill impairment charges.
Sig
n
ifi
cant
j
u
dg
ment
i
s requ
i
re
d
to
d
eterm
i
ne t
h
eun
d
er
lyi
n
g
cause o
f
t
h
e
d
ec
li
ne an
d
w
h
et
h
er stoc
k
pr
i
ce
d
ec
li
nes
are related to the market or specificall
y
to the Compan
y
. The Compan
y
did not record an
yg
oodwill impairments i
n
fiscal 2008
,
2007 or 2006.
Tradenames and Other Intan
g
ible Asset
s
— Tradenames and other intangible assets are comprised of values
ass
ig
ne
d
to names t
h
e Compan
y
acqu
i
re
d
an
dl
eases acqu
i
re
d
.T
h
e accumu
l
ate
d
amort
i
zat
i
on
f
or t
h
ese assets
i
s
$9.2 million and $8.4 million at Januar
y
31, 2009 and Februar
y
2, 2008, respectivel
y.
Th
e asset va
l
ue an
d
accumu
l
ate
d
amort
i
zat
i
on o
fi
ntan
gibl
e assets
i
sas
f
o
ll
ows
:
January
31
,
2009
F
ebruary
2,
2008
(
Dollars in thousands
)
Not su
bj
ect to amort
i
zat
i
o
n
D
oma
i
n name
s
.............................................
$
21
$
21
Subject to amortizatio
n
T
radenames
:
G
ross asse
t
.
............................................. $ 12,750 $ 12,750
A
ccu
m
u
l
ated a
m
o
r
t
iz
at
i
on
...................................
(9
,
138) (8
,
28
7
)
S
u
b
tota
l
.
.................................................
$
3
,
612
$
4
,
463
U
se
f
u
l life
.
............................................. 1
5
years 15 year
s
Fa
v
ora
bl
e
l
eases:
Gross asse
t
.
.............................................
$
140
$
140
A
ccu
m
u
l
ated a
m
o
r
t
iz
at
i
on
...................................
(
10
5
) (102)
Subtota
l
.
................................................. $ 35 $ 3
8
U
se
f
u
l life
.............................................. 14
y
ears
14 y
ear
s
T
ra
d
enames an
d
ot
h
er
i
ntan
gibl
e assets, ne
t
.
.......................
$
3
,
668
$
4
,
522
F-
8
D
S
WIN
C.
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)