Reportable Segment Information - Notes to Financial Statements

3 Months Ended

May 05, 2018

Reportable Segment Information [Abstract]

NOTE 5 – 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 and Credit. As outlined in ASC 280-10, the Company has two reportable segments: Retail and Credit. The Company has aggregated its three retail operating segments, including e-commerce, 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, which require the segments to have similar economic characteristics, products, production processes, clients and 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 for the Company’s retail operating segments is sourced from the same countries and some of the same vendors, using similar production processes. 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.

The Company operates its women’s fashion specialty retail stores in 33 states as of May 5, 2018, 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):

Three Months Ended
May 5, 2018	Retail	Credit	Total

Revenues	$237,334	$966	$238,300
Depreciation	4,218	6	4,224
Interest and other income	(754)	-	(754)
Income before taxes	25,942	642	26,584
Capital expenditures	675	-	675

Three Months Ended
April 29, 2017	Retail	Credit	Total

Revenues	$238,642	$1,099	$239,741
Depreciation	5,048	12	5,060
Interest and other income	(942)	-	(942)
Income before taxes	25,619	441	26,060
Capital expenditures	3,446	-	3,446

	Retail	Credit	Total

Total assets as of May 5, 2018	$475,945	$42,529	$518,474
Total assets as of February 3, 2018	469,652	46,424	516,076

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

The Company evaluates segment performance based on income before taxes. The Company does not allocate certain corporate expenses or income taxes to the credit segment.

	Three Months Ended
		May 5, 2018		April 29, 2017

Bad debt expense	$	-	$	54
Payroll		197		221
Postage		123		137
Other expenses		(2)		234

Total expenses	$	318	$	646