Reportable Segment Information - Notes to Financial Statements

12 Months Ended

Jan. 29, 2022

Reportable Segment Information [Abstract]

Reportable Segment Information

13. 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 2021

Retail

Credit

Total

Revenues

$

767,205

$

2,066

$

769,271

Depreciation

12,354

2

12,356

Interest and other income

2,141

-

2,141

Income (loss) before taxes

38,340

625

38,965

Capital expenditures

4,101

4

4,105

Fiscal 2020

Retail

Credit

Total

Revenues

$

572,453

$

2,658

$

575,111

Depreciation

14,680

1

14,681

Interest and other income

6,630

-

6,630

Income (loss) before taxes

(73,972)

1,166

(72,806)

Capital expenditures

13,955

1

13,956

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 (loss) before taxes

41,386

1,821

43,207

Capital expenditures

8,287

19

8,306

Retail

Credit

Total

Total assets as of January 29, 2022

$

595,487

$

38,279

$

633,766

Total assets as of January 30, 2021

549,349

42,103

591,452

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):

`

January 29, 2022

January 30, 2021

February 1, 2020

Payroll

$

501

$

541

$

644

Postage

342

360

488

Other expenses

595

590

651

Total expenses

$

1,438

$

1,491

$

1,783