Reportable Segment Information - Notes to Financial Statements

12 Months Ended

Feb. 02, 2013

Reportable Segment Information [Abstract]

Reportable Segment Information

14. Reportable Segment Information

The Company has determined that it has four operating segments, as defined under ASC 280-10, including Cato, It's Fashion, Versona Accessories and Credit.  As outlined in ASC 280-10, the Company has two reportable segments: Retail and Credit.  The Company has aggregated its retail operating segments based on the aggregation criteria outlined in ASC 280-10, which states that two or more operating segments may be aggregated into a single reportable segment if aggregation is consistent with the objective and basic principles of ASC 280-10, if the segments have similar economic characteristics, similar product, similar production processes, similar clients and similar methods of distribution. 

The Company's retail operating segments have similar economic characteristics and similar operating, financial and competitive risks.  They are similar in nature of product, as they all offer women's apparel, shoes and accessories.  Merchandise inventory of the Company's operating segments is sourced from the same countries and some of the same vendors, using similar production processes.  Clients of the Company's operating segments have similar characteristics.  Merchandise for the Company's operating segments is distributed to retail stores in a similar manner through the Company's single distribution center and is subsequently distributed to clients in a similar manner, through its retail stores.

The Company operates its women's fashion specialty retail stores in 31 states as of February 2, 2013, principally in the southeastern United States. The Company offers its own credit card to its customers and all credit authorizations, payment processing, and collection efforts are performed by a separate subsidiary of the Company.

The following schedule summarizes certain segment information (in thousands):

Fiscal 2012		Retail		Credit		Total
Revenues	$	937,119	$	6,929	$	944,048
Depreciation		22,404		51		22,455
Interest and other income		(3,782)		-		(3,782)
Income before taxes		95,972		2,999		98,971
Total assets		463,527		69,119		532,646
Capital expenditures		44,924		251		45,175
Fiscal 2011		Retail		Credit		Total
Revenues	$	923,742	$	7,716	$	931,458
Depreciation		21,785		40		21,825
Interest and other income		(3,817)		-		(3,817)
Income before taxes		97,037		3,234		100,271
Total assets		471,397		79,692		551,089
Capital expenditures		35,804		86		35,890
Fiscal 2010		Retail		Credit		Total
Revenues	$	916,150	$	8,535	$	924,685
Depreciation		21,801		21		21,822
Interest and other income		(3,971)		-		(3,971)
Income before taxes		89,703		3,069		92,772
Total assets		457,182		75,577		532,759
Capital expenditures		19,559		-		19,559

       The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1. The Company evaluates performance based on profit or loss from operations before income taxes. The Company does not allocate certain corporate expenses to the credit segment.

The following schedule summarizes the direct expenses of the credit segment which are reflected in selling, general and administrative expenses (in thousands):

		February 2, 2013		January 28, 2012
Bad debt expense	$	1,259	$	1,723
Payroll		919		954
Postage		751		757
Other expenses		950		1,008
Total expenses	$	3,879	$	4,442