Business Segments

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

For the Company's retail operations reportable segment, 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 table summarizes the percentage of net sales by segment and major product line:



	Percentage of Net Sales
	Fiscal 2018		Fiscal 2017		Fiscal 2016
Retail operations segment:
Cosmetics	14	%	14	%	14	%
Ladies' apparel	22		23		22
Ladies' accessories and lingerie	15		16		16
Juniors' and children's apparel	9		8		8
Men's apparel and accessories	17		17		17
Shoes	15		16		16
Home and furniture	4		4		4
	96		98		97
Construction segment	4		2		3
Total	100	%	100	%	100	%

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		Fiscal 2018 Construction			Consolidated
Net sales from external customers	$	6,120,758	$	235,351		$	6,356,109
Gross profit	2,056,010		8,579			2,064,589
Depreciation and amortization	223,175		640			223,815
Interest and debt expense (income), net	52,574		(56		)	52,518
Income before income taxes and income on and equity in earnings of joint ventures	203,330		4,632			207,962
Income on and equity in earnings of joint ventures	31		—			31
Total assets	3,384,277		47,092			3,431,369



(in thousands of dollars)	Retail Operations		Fiscal 2017 Construction			Consolidated
Net sales from external customers	$	6,108,037	$	153,440		$	6,261,477
Gross profit	2,054,969		6,790			2,061,759
Depreciation and amortization	230,946		649			231,595
Interest and debt expense (income), net	62,638		(58		)	62,580
Income before income taxes and income on and equity in earnings of joint ventures	210,969		1,720			212,689
Income on and equity in earnings of joint ventures	835		—			835
Total assets	3,650,393		32,310			3,682,703



(in thousands of dollars)	Retail Operations		Fiscal 2016 Construction			Consolidated
Net sales from external customers	$	6,071,570	$	185,567		$	6,257,137
Gross profit	2,081,935		8,791			2,090,726
Depreciation and amortization	242,981		676			243,657
Interest and debt expense (income), net	63,127		(68		)	63,059
Income before income taxes and income on and equity in earnings of joint ventures	253,887		3,788			257,675
Income on and equity in earnings of joint ventures	45		—			45
Total assets	3,842,730		55,720			3,898,450

Intersegment construction revenues of $30.2 million, $47.4 million and $75.5 million were eliminated during consolidation and have been excluded from net sales for fiscal years 2018, 2017 and 2016, respectively.