Dillard's 2009 Annual Report Download - page 40

2009, which resulted in a new disclosure in the Company’s consolidated financial statements (see
Note 17 of these Notes to Condensed Consolidated Financial Statements).
Consolidation of Variable Interest Entities
In June 2009, the FASB issued new accounting guidance relating to the consolidation of variable
interest entities. This guidance requires an enterprise to perform an analysis:
• to determine whether the enterprise’s variable interest or interests give it a controlling financial
interest in a variable interest entity;
• to require ongoing reassessments of whether an enterprise is the primary beneficiary of a
variable interest entity;
• to eliminate the quantitative approach previously required for determining the primary
beneficiary of a variable interest entity;
• to add an additional reconsideration event for determining whether an entity is a variable
interest entity when any changes in facts and circumstances occur such that holders of the equity
investment at risk, as a group, lose the power from voting rights or similar rights of those
investments to direct the activities of the entity that most significantly impact the entity’s
economic performance; and
• to require enhanced disclosures that will provide users of financial statements with more
transparent information about an enterprise’s involvement in a variable interest entity.
This guidance becomes effective for the Company for its fiscal year beginning on January 31, 2010.
The Company adopted this guidance on January 31, 2010, and the adoption did not have a material
impact on the Company’s consolidated financial statements.
FORWARD-LOOKING INFORMATION
This report contains certain forward-looking statements. The following are or may constitute
forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995:
statements including (a) words such as ‘‘may,’’ ‘‘will,’’ ‘‘could,’’ ‘‘believe,’’ ‘‘expect,’’ ‘‘future,’’
‘‘potential,’’ ‘‘anticipate,’’ ‘‘intend,’’ ‘‘plan,’’ ‘‘estimate,’’ ‘‘continue,’’ or the negative or other variations
thereof, and (b) statements regarding matters that are not historical facts. The Company cautions that
forward-looking statements contained in this report are based on estimates, projections, beliefs and
assumptions of management and information available to management at the time of such statements
and are not guarantees of future performance. The Company disclaims any obligation to update or
revise any forward-looking statements based on the occurrence of future events, the receipt of new
information, or otherwise. Forward-looking statements of the Company involve risks and uncertainties
and are subject to change based on various important factors. Actual future performance, outcomes
and results may differ materially from those expressed in forward-looking statements made by the
Company and its management as a result of a number of risks, uncertainties and assumptions, including
the matters described under the caption ‘‘Risk Factors’’ above. Representative examples of those factors
include (without limitation) general retail industry conditions and macro-economic conditions; economic
and weather conditions for regions in which the Company’s stores are located and the effect of these
factors on the buying patterns of the Company’s customers, including the effect of changes in prices
and availability of oil and natural gas; the availability of consumer credit; the impact of competitive
pressures in the department store industry and other retail channels including specialty, off-price,
discount and Internet retailers; changes in consumer spending patterns, debt levels and their ability to
meet credit obligations; changes in legislation, affecting such matters as the cost of employee benefits
or credit card income; adequate and stable availability of materials, production facilities and labor from
which the Company sources its merchandise; changes in operating expenses, including employee wages,
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