Business Segments

3 Months Ended

Apr. 29, 2017

Segment Reporting [Abstract]

Business Segments

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: 

(in thousands of dollars)	Retail Operations		Construction			Consolidated
Three Months Ended April 29, 2017:
Net sales from external customers	$	1,385,520	$	32,591		$	1,418,111
Gross profit	546,500		1,526			548,026
Depreciation and amortization	59,843		168			60,011
Interest and debt expense (income), net	15,703		(21		)	15,682
Income before income taxes and income on and equity in earnings of joint ventures	102,361		100			102,461
Income on and equity in earnings of joint ventures	11		—			11
Total assets	4,061,873		53,032			4,114,905
Three Months Ended April 30, 2016:
Net sales from external customers	$	1,449,389	$	53,853		$	1,503,242
Gross profit	562,181		2,482			564,663
Depreciation and amortization	60,476		169			60,645
Interest and debt expense (income), net	15,730		(16		)	15,714
Income before income taxes and income on and equity in earnings of joint ventures	118,779		841			119,620
Income on and equity in earnings of joint ventures	11		—			11
Total assets	3,980,286		45,360			4,025,646

Intersegment construction revenues of $9.0 million and $9.8 million for the three months ended April 29, 2017 and April 30, 2016, respectively, were eliminated during consolidation and have been excluded from net sales for the respective periods.