Reportable Segment Information - Notes to Financial Statements

12 Months Ended

Feb. 01, 2020

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 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 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 terms of product offered, as they all offer women’s apparel, shoes and accessories. Merchandise inventory of 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 retail 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 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 2019		Retail		Credit		Total
Revenues	$	821,730	$	3,605	$	825,335
Depreciation		15,484		1		15,485
Interest and other income		6,065		-		6,065
Income before taxes		41,386		1,821		43,207
Capital expenditures		8,287		19		8,306
Fiscal 2018		Retail		Credit		Total
Revenues	$	825,850	$	3,814	$	829,664
Depreciation		16,441		22		16,463
Interest and other income		4,991		-		4,991
Income before taxes		31,149		1,902		33,051
Capital expenditures		4,315		39		4,354
Fiscal 2017		Retail		Credit		Total
Revenues	$	845,759	$	4,222	$	849,981
Depreciation		19,604		39		19,643
Interest and other income		5,111		-		5,111
Income before taxes		14,762		1,211		15,973
Capital expenditures		11,047		49		11,096
		Retail		Credit		Total
Total assets as of February 1, 2020	$	636,503	$	48,473	$	684,976
Total assets as of February 2, 2019		454,143		43,763		497,906

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 1, 2020		February 2, 2019		February 3, 2018
Bad debt expense	$	-	$	-	$	690
Payroll		644		749		861
Postage		488		506		546
Other expenses		651		635		875
Total expenses	$	1,783	$	1,890	$	2,972