Stein Mart 2013 Annual Report Download - page 21

Download and view the complete annual report

Please find page 21 of the 2013 Stein Mart annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 52

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52


%HFDXVHRILWVLQKHUHQWOLPLWDWLRQVLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJPD\QRWSUHYHQWRUGHWHFWPLVVWDWHPHQWV$OVRSURMHFWLRQVRI
DQ\ HYDOXDWLRQ RI HIIHFWLYHQHVV WR IXWXUH SHULRGV DUH VXEMHFW WR WKH ULVN WKDW FRQWUROV PD\ EHFRPH LQDGHTXDWH EHFDXVH RI FKDQJHV LQ
FRQGLWLRQVRUWKDWWKHGHJUHHRIFRPSOLDQFHZLWKWKHSROLFLHVRUSURFHGXUHVPD\GHWHULRUDWH
0DQDJHPHQWDVVHVVHGWKHHIIHFWLYHQHVVRIRXULQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDVRI)HEUXDU\XVLQJWKHFULWHULDVHWIRUWKLQ
,QWHUQDO&RQWURO,QWHJUDWHG)UDPHZRUNLVVXHGE\WKH&RPPLWWHHRI6SRQVRULQJ2UJDQL]DWLRQVRIWKH7UHDGZD\&RPPLVVLRQ%DVHG
RQWKDWDVVHVVPHQWPDQDJHPHQWFRQFOXGHG WKDWRXULQWHUQDOFRQWURORYHUILQDQFLDO UHSRUWLQJZDVQRW HIIHFWLYHDVRI )HEUXDU\ 
EHFDXVHRIWKHLGHQWLILFDWLRQRIWKHPDWHULDOZHDNQHVVQRWHGEHORZ$PDWHULDOZHDNQHVVLVDGHILFLHQF\RUFRPELQDWLRQRIGHILFLHQFLHVLQ
LQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJVXFKWKDWWKHUHLVDUHDVRQDEOHSRVVLELOLW\WKDWDPDWHULDOPLVVWDWHPHQWRIWKH&RPSDQ\¶VDQQXDORU
LQWHULPILQDQFLDOVWDWHPHQWVZLOOQRWEHSUHYHQWHGRUGHWHFWHGRQDWLPHO\EDVLV
:HKDYHLGHQWLILHGDPDWHULDOZHDNQHVVLQWKHGHVLJQDQGHIIHFWLYHQHVVLQWKHRSHUDWLRQRIRXUFRQWUROVWKDWDUHLQWHQGHGWRHQVXUHWKDW
DFFHVV WR RXU UHWDLO PDQDJHPHQW V\VWHP DQG WKH UHODWHG LQYHQWRU\ GDWD ILOHV ZDV DGHTXDWHO\ UHVWULFWHG  $V D UHVXOW RI WKLV PDWHULDO
ZHDNQHVVD UHDVRQDEOH SRVVLELOLW\ H[LVWV WKDWD PDWHULDOPLVVWDWHPHQWLQ LQYHQWRU\LQ RXUDQQXDO RU LQWHULPILQDQFLDO VWDWHPHQWV FRXOG
RFFXUDQGQRWEHSUHYHQWHGRUGHWHFWHGRQDWLPHO\EDVLV
7KHHIIHFWLYHQHVVRIWKH&RPSDQ\¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDVRI)HEUXDU\KDVEHHQDXGLWHGE\.30*//3DQ
LQGHSHQGHQWUHJLVWHUHGSXEOLFDFFRXQWLQJILUPDVVWDWHGLQWKHLUUHSRUWZKLFKLVLQFOXGHGRQSDJH)
F&KDQJHVLQ,QWHUQDO&RQWURO2YHU)LQDQFLDO5HSRUWLQJ
2WKHUWKDQWKHFKDQJHVLQLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJGLVFXVVHGXQGHUEDERYHDQGGEHORZWKHUHZHUHQRFKDQJHVLQWKH
&RPSDQ\¶V LQWHUQDO FRQWURO RYHU ILQDQFLDO UHSRUWLQJ DV WKDW WHUP LV GHILQHG LQ 5XOHV DI DQG GI XQGHU WKH ([FKDQJH $FW
GXULQJWKH PRVWUHFHQW ILVFDOTXDUWHU WKDWKDYH PDWHULDOO\DIIHFWHG RUDUHUHDVRQDEO\ OLNHO\WR PDWHULDOO\ DIIHFWWKH &RPSDQ\¶VLQWHUQDO
FRQWURORYHUILQDQFLDOUHSRUWLQJ
G0DQDJHPHQW·V3ODQVIRU5HPHGLDWLRQRIRXU0DWHULDO:HDNQHVVHV
5HPHGLDWLRQ(IIRUWVWR$GGUHVVWKH0DWHULDO:HDNQHVV
:HKDYHGLVFXVVHGWKHPDWHULDOZHDNQHVVGHVFULEHGDERYHZLWKRXU$XGLW&RPPLWWHHDQGDUHLPSOHPHQWLQJQHZSROLFLHVDQGSURFHGXUHV
WR HQKDQFH RYHUVLJKW RI RXU V\VWHP DFFHVV FRQWUROV LQFOXGLQJ LPSOHPHQWDWLRQ RI DQ DFFHVV FRQWUROV JRYHUQDQFH VRIWZDUH SURJUDP
LPSURYHGSHULRGLFDFFHVVUHYLHZVDQGWLPHO\FRPPXQLFDWLRQRIHPSOR\HHFKDQJHV
5HPHGLDWLRQRI3UHYLRXVO\'LVFORVHG0DWHULDO:HDNQHVVHV
$V GLVFXVVHG LQ RXU  )RUP . ZH LGHQWLILHG PDWHULDO ZHDNQHVVHV LQ RXU LQWHUQDO FRQWURO RYHU ILQDQFLDO UHSRUWLQJ UHODWHGWR
HYDOXDWLQJ PRQLWRULQJ DQG SURSHUO\ DFFRXQWLQJ IRU LQYHQWRU\ PDUNGRZQV OHDVHKROG LPSURYHPHQW FRVWV FRPSHQVDWHG DEVHQFHV SDLG
YDFDWLRQ LQGLUHFW RYHUKHDG FRVW FDSLWDOL]DWLRQ DQG DPRUWL]DWLRQ SHULRGV DQG UHWLUHPHQWV RI VRIWZDUH DVVHWV  :H DOVR GHWHUPLQHG
LQDGHTXDWHFRPPXQLFDWLRQH[LVWHGEHWZHHQILQDQFHDQGRWKHUGHSDUWPHQWV7KHIROORZLQJUHPHGLDWLRQDFWLYLWLHVZHUHLPSOHPHQWHGDQG
WHVWHGGXULQJ
,QYHQWRU\0DUNGRZQV
0HUFKDQGLVLQJDQGILQDQFLDOPDQDJHPHQWXSGDWHGWKHH[LVWLQJSROLFLHVDQGSURFHGXUHVWRUHIOHFWWKHDJUHHGXSRQFKDUDFWHULVWLFV
RIPDUNGRZQVDVHLWKHUSURPRWLRQDORUSHUPDQHQW
$WTXDUWHUHQGPHUFKDQGLVLQJDQGILQDQFLDOPDQDJHPHQWUHYLHZPDUNGRZQDFWLYLW\WRGHWHUPLQHLIDOOLWHPVKDYHEHHQUHFRUGHG
LQDFFRUGDQFHZLWKPDUNGRZQSROLFLHV
$WTXDUWHUHQGILQDQFLDOPDQDJHPHQWPHHWVZLWKPHUFKDQGLVLQJPDQDJHPHQWWRUHYLHZWKHVHDVRQDOLQYHQWRU\OHYHOV%DVHG
RQWKLVDQDO\VLVWKH\ZLOODVVHVVFRPSDUDELOLW\DQGDSSURSULDWHQHVVRISHUPDQHQWPDUNGRZQVDQGUHODWHGPDUNGRZQOHYHOV
0HUFKDQGLVLQJDQGILQDQFLDOPDQDJHPHQWUHYLHZSURPRWLRQDOPDUNGRZQVLQGHWDLOWRGHWHUPLQHZKHWKHUSULFLQJDFWLRQVEHIRUH
DQGDIWHUTXDUWHUHQGLQGLFDWHVLWXDWLRQVZKHUHPDUNGRZQVVKRXOGEHPRUHDSSURSULDWHO\LGHQWLILHGDVSHUPDQHQW
)LQDQFLDOPDQDJHPHQWDSSURYHVFKDQJHVLIDQ\LQVHDVRQDOPHUFKDQGLVHGHVLJQDWHGRXWRIVWRFNGDWHV
7KHHIIHFWLYHQHVVRIFHUWDLQRIWKHVHFRQWUROVGHSHQGVLQSDUWXSRQDFFHVVFRQWUROVVHHPDWHULDOZHDNQHVVGHVFULEHGLQE
/HDVHKROGLPSURYHPHQWFRVWV
0DQDJHPHQWXSGDWHGWKHH[LVWLQJSROLFLHVDQGSURFHGXUHVWRUHIOHFWWKHSURSHUDFFRXQWLQJWUHDWPHQWRIOHDVHWHUPV
)LQDQFLDOPDQDJHPHQWUHYLHZVWKHWHUPVRIDOOQHZOHDVHVWKDWFRQWDLQWHQDQWLPSURYHPHQWDOORZDQFHVLQDFFRUGDQFHZLWKWKH
XSGDWHGSROLFLHVWRYHULI\WKDWOHDVHKROGLPSURYHPHQWVDQGGHIHUUHGUHQWFUHGLWVDUHFRUUHFWO\UHFRUGHG