DSW 2015 Annual Report Download - page 63
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Table of Contents
The following table presents financial assets and liabilities at fair value as of the dates presented:
January 30, 2016
January 31, 2015
Total
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
(in thousands)
Financial Assets:
Cash and equivalents $ 32,495
$ 32,495
—
—
$ 59,171
$ 59,171
—
—
Short-term investments(a) 226,027
2,127
$ 223,900
—
171,268
—
$ 171,268
—
Long-term investments(a) 71,953
181
71,772
—
216,810
—
216,810
—
Cost method investment(b) 6,000
—
—
$ 6,000
—
—
—
—
Note receivable from Town
Shoes(c) 33,311
—
33,311
—
43,304
—
43,304
—
Total Financial Assets $ 369,786
$ 34,803
$ 328,983
$ 6,000
$ 490,553
$ 59,171
$ 431,382
—
Financial Liabilities:
Stock appreciation rights(d) $ 561
—
$ 561
—
—
—
—
—
Total Financial Liabilities $ 561
—
$ 561
—
—
—
—
—
(a) Short-term and long-term investments are valued using a market-based approach using level 2 inputs such as prices of similar assets in active markets.
(b) DSW Inc.'s cost method investment is valued using level 3 inputs. The fair value approximates the carrying value.
(c) The Company estimated the fair value of the note receivable based upon current interest rates offered on similar instruments. The reduction in fair
value is based on the change in comparable rates on similar instruments. Based on the Company’s intention and ability to hold the note until
maturity or the exercise of the put/call option (see Note 3), the carrying value is not other-than-temporarily impaired.
(d) Stock appreciation rights are valued using the Black-Scholes model.
The following table presents activity related to level 3 fair value measurement for DSW Inc.'s cost method investment for the period presented:
Fiscal year ended
January 30, 2016
(in thousands)
Carrying value, beginning of period
$ —
Activity related to cost method investment
6,000
Carrying value, end of period
$ 6,000
The Company periodically evaluates the carrying amount of its long-lived assets, primarily property and equipment, and finite lived
intangible assets when events and circumstances warrant such a review to ascertain if any assets have been impaired.
In fiscal 2015 and 2014, the Company recognized impairment losses on leasehold improvements used in stores. The impairment losses were included in the
DSW and ABG segments. The Company determined that the carrying value exceeded the expected future cash flows and recorded an impairment after
determining fair value based on the discounted future cash flow analysis using a discount rate determined by management based on historical performance
and expectations of future performance. The following table presents the activity related to the fair value of assets held and used that realized an impairment
loss for the periods presented:
F- 24
Source: DSW Inc., 10-K, March 24, 2016 Powered by Morningstar® Document Research℠
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except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.