| 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 table summarizes the percentage of net sales by segment and major product line: | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | August 4, 2018 | | July 29, 2017 | | August 4, 2018 | | July 29, 2017 | Retail operations segment | | |
| | |
| | | | | Cosmetics | | 13 | % | | 13 | % | | 13 | % | | 13 | % | Ladies’ apparel | | 24 |
| | 25 |
| | 24 |
| | 25 |
| Ladies’ accessories and lingerie | | 16 |
| | 16 |
| | 15 |
| | 15 |
| Juniors’ and children’s apparel | | 8 |
| | 8 |
| | 9 |
| | 9 |
| Men’s apparel and accessories | | 18 |
| | 17 |
| | 17 |
| | 16 |
| Shoes | | 14 |
| | 15 |
| | 15 |
| | 16 |
| Home and furniture | | 3 |
| | 3 |
| | 3 |
| | 3 |
| | | 96 |
| | 97 |
|
| 96 |
|
| 97 |
| Construction segment | | 4 |
| | 3 |
| | 4 |
| | 3 |
| Total | | 100 | % |
| 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 |
| Construction |
| Consolidated | Three Months Ended August 4, 2018: | | |
| | |
|
| |
| Net sales from external customers | | $ | 1,408,803 |
| | $ | 59,220 |
|
| $ | 1,468,023 |
| Gross profit | | 448,910 |
| | 1,936 |
|
| 450,846 |
| Depreciation and amortization | | 56,064 |
| | 157 |
|
| 56,221 |
| Interest and debt expense (income), net | | 14,333 |
| | (12 | ) |
| 14,321 |
| (Loss) income before income taxes and income on and equity in earnings of joint ventures | | (4,482 | ) | | 654 |
|
| (3,828 | ) | Total assets | | 3,531,148 |
| | 51,482 |
|
| 3,582,630 |
| | | | | | | | Three Months Ended July 29, 2017: | | | | |
|
|
| Net sales from external customers | | $ | 1,384,623 |
| | $ | 42,657 |
|
| $ | 1,427,280 |
| Gross profit | | 418,561 |
| | 1,665 |
|
| 420,226 |
| Depreciation and amortization | | 59,701 |
| | 167 |
|
| 59,868 |
| Interest and debt expense (income), net | | 15,817 |
| | (19 | ) |
| 15,798 |
| (Loss) income before income taxes and income on and equity in earnings of joint ventures | | (27,683 | ) | | 642 |
|
| (27,041 | ) | Income on and equity in earnings of joint ventures | | 11 |
| | — |
|
| 11 |
| Total assets | | 3,721,281 |
| | 41,436 |
|
| 3,762,717 |
| | | | | | | | Six Months Ended August 4, 2018: | | | | |
|
|
| Net sales from external customers | | $ | 2,820,147 |
| | $ | 106,138 |
|
| $ | 2,926,285 |
| Gross profit | | 1,001,775 |
| | 3,592 |
|
| 1,005,367 |
| Depreciation and amortization | | 111,908 |
| | 316 |
|
| 112,224 |
| Interest and debt expense (income), net | | 28,363 |
| | (20 | ) |
| 28,343 |
| Income before income taxes and income on and equity in earnings of joint ventures | | 98,922 |
| | 488 |
|
| 99,410 |
| Total assets | | 3,531,148 |
| | 51,482 |
|
| 3,582,630 |
| | | | | | | | Six Months Ended July 29, 2017: | | | | |
|
|
| Net sales from external customers | | $ | 2,770,492 |
| | $ | 75,248 |
|
| $ | 2,845,740 |
| Gross profit | | 965,410 |
| | 3,191 |
|
| 968,601 |
| Depreciation and amortization | | 119,544 |
| | 335 |
|
| 119,879 |
| Interest and debt expense (income), net | | 31,520 |
| | (40 | ) |
| 31,480 |
| Income before income taxes and income on and equity in earnings of joint ventures | | 74,677 |
| | 743 |
|
| 75,420 |
| Income on and equity in earnings of joint ventures | | 22 |
| | — |
|
| 22 |
| Total assets | | 3,721,281 |
| | 41,436 |
|
| 3,762,717 |
|
Intersegment construction revenues of $6.7 million and $12.6 million for the three months ended August 4, 2018 and July 29, 2017, respectively, and $12.1 million and $21.6 million for the six months ended August 4, 2018 and July 29, 2017, respectively, were eliminated during consolidation and have been excluded from net sales for the respective periods. |