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Table of Contents DSW INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As discussed in Note 8 , the Company classifies its fair value measurements under the following fair value hierarchy:
The following table presents the activity related to fair value measurements of pension plan assets for the periods presented:
The Company sponsors a 401(k) Plan. Eligible employees may contribute up to fifty percent of their compensation to the 401(k) Plan, on a pre-
tax
basis, subject to Internal Revenue Service limitations. As of the first day of the month following an employee’
s completion of one year of service
as defined under the terms of the 401(k) Plan, the Company matches employee deferrals, 100% on the first 3% of eligible compensation deferred
and 50% on the next 2% of eligible compensation deferred. Additionally, the Company may contribute a discretionary profit sharing amount to the
Plan each year but has not for the past three fiscal years. The Company incurred costs associated with the Plan of $2.0 million , $1.9 million
and
$1.8 million for fiscal 2011 , 2010 and 2009 , respectively.
Value City - On January 23, 2008, RVI disposed of an 81% ownership interest in its Value City Department Stores (“Value City”)
business to
VCHI Acquisition Co., a newly formed entity owned by VCDS Acquisition Holdings, LLC, Emerald Capital Management LLC and Crystal
Value, LLC.
On October 25, 2010, Value City Holdings, Inc. and related entities filed a complaint against RVI, Retail Ventures Services, Inc., and DSW in the
United States Bankruptcy Court for the Southern District of New York related to the debtors’
voluntary cases under Chapter 11 of the Bankruptcy
Code. In the complaint, the debtors alleged claims for avoidable preferences, fraudulent transfer, receipt of illegal dividends, recovery of assets,
unjust enrichment and breach of contract. The claims primarily related to transfers made by the debtors to the defendants during the one year
period preceding the debtors’
filing of voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code on October 26, 2008. The
debtors sought damages that totaled approximately $373.4 million. On January 20, 2011, the Bankruptcy Court approved a settlement between the
debtors and the defendants, which became final and non-
appealable as of February 4, 2011. The defendants paid to Value City the settlement
payment of $3.6 million, and Value City filed a dismissal of the complaint.
RVI recognized an aggregate after-tax loss related to the Value City disposition of $64.3 million as of January 28, 2012
. The fiscal 2011, 2010
and 2009 reduction of the loss of $0.2 million , $2.7 million and $9.5 million
, respectively, was due to a revaluation of a guarantee due to the
passage of time, payments by the primary obligor to the guaranteed party or information available indicating that it was no longer probable that
the liability would be incurred.
The following table presents the significant components of the income from discontinued operations - Value City:
F-32
•
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that are publicly accessible. Active markets have
frequent transactions with enough volume to provide ongoing pricing information.
•
Level 2 inputs are other than level 1 inputs that are directly or indirectly observable. These can include unadjusted quoted prices for similar
assets or liabilities in active markets, unadjusted quoted prices for identical assets or liabilities in inactive markets or other observable
inputs.
•
Level 3 inputs are unobservable inputs.
As of January 28, 2012
As of January 29, 2011
Total Level 1 Level 2
Total Level 1 Level 2
Assets: (in thousands)
Cash and equivalents
$
1,290
$
1,290
$
94
$
94
Fixed income
6,968
$
6,968
6,071
$
6,071
Large cap funds
6,017
6,017
Small and mid cap funds
1,337
1,337
Exchange traded funds
8,078
8,078
Fair market value at end of year
$
16,336
$
1,290
$
15,046
$
13,519
$
94
$
13,425
11.
OTHER BENEFIT PLANS
12.
DISCONTINUED OPERATIONS