Business Segments

3 Months Ended

May 04, 2013

Business Segments

Business Segments

Note 2. Business Segments

The Company operates in two reportable segments:  the operation of retail department stores (“retail operations”) and a general contracting construction company (“construction”).

For the Company’s retail operations, the Company determined its operating segments on a store by store basis.  Each store’s operating performance has been aggregated into one reportable segment.  The Company’s operating segments are aggregated for financial reporting purposes because they are similar in each of the following areas: economic characteristics, class of consumer, nature of products and distribution methods. Revenues from external customers are derived from merchandise sales, and the Company does not rely on any major customers as a source of revenue. Across all stores, the Company operates one store format under the Dillard’s name where each store offers the same general mix of merchandise with similar categories and similar customers.  The Company believes that disaggregating its operating segments would not provide meaningful additional information.

The following tables summarize certain segment information, including the reconciliation of those items to the Company’s consolidated operations:

	Three Months Ended May 4, 2013
(in thousands of dollars)	Retail Operations		Construction			Consolidated
Net sales from external customers	$	1,530,000	$	19,136		$	1,549,136
Gross profit	609,889		1,462			611,351
Depreciation and amortization	65,057		59			65,116
Interest and debt expense (income), net	16,330		(20		)	16,310
Income before income taxes and income on and equity in losses of joint ventures	179,899		322			180,221
Income on and equity in losses of joint ventures	409		—			409
Total assets	4,230,148		31,012			4,261,160

	Three Months Ended April 28, 2012
(in thousands of dollars)	Retail Operations		Construction			Consolidated
Net sales from external customers	$	1,521,975	$	27,344		$	1,549,319
Gross profit	591,063		1,343			592,406
Depreciation and amortization	63,975		45			64,020
Interest and debt expense (income), net	17,490		(35		)	17,455
Income before income taxes and income on and equity in losses of joint ventures	146,968		150			147,118
Income on and equity in losses of joint ventures	835		—			835
Total assets	4,474,037		41,997			4,516,034

Intersegment construction revenues of $1.7 million and $7.9 million were eliminated during consolidation and have been excluded from net sales for the quarters ended May 4, 2013 and April 28, 2012, respectively.