Dillard's 2005 Annual Report Download - page 19

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2002
The items below amount to a net $3.0 million pretax gain ($1.8 million after tax or $0.02 per diluted share).
• a pretax gain of $64.3 million ($41.1 million after tax or $0.48 per diluted share) pertaining to the
Company’s sale of its interest in FlatIron Crossing, a Broomfield, Colorado shopping center.
• a pretax asset impairment and store closing charge of $52.2 million ($33.4 million after tax or $0.39 per
diluted share) related to certain stores.
• a call premium resulting in additional interest expense of $11.6 million ($7.4 million after tax or $0.09
per diluted share) associated with a $143.0 million call of debt.
• a pretax charge of $5.4 million ($3.5 million after tax or $0.04 per diluted share) on the amortization of
off-balance-sheet accounts receivable securitization.
• a pretax gain of $4.8 million ($3.0 million after tax or $0.04 per diluted share) on the early
extinguishment of debt.
• a pretax gain of $3.1 million ($2.0 million after tax or $0.02 per diluted share) from an investee
partnership of the Company who received an unusual distribution in the settlement of a receivable.
2001
The items below amount to a net $5.6 million pretax gain ($3.6 million after tax or $0.04 per diluted share).
• a pretax asset impairment and store closing charge of $3.8 million ($2.4 million after tax or $0.03 per
diluted share) related to certain stores.
• a pretax gain of $9.4 million ($6.0 million after tax or $0.07 per diluted share) on the early
extinguishment of debt.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
EXECUTIVE OVERVIEW
Dillard’s, Inc. operates 326 retail department stores in 29 states, net of four locations closed due to hurricane
damage in 2005. Our stores are located in suburban shopping malls and offer a broad selection of fashion apparel
and home furnishings. We offer an appealing and attractive assortment of merchandise to our customers at a fair
price. We offer national brand merchandise as well as our exclusive brand merchandise. We seek to enhance our
income by maximizing the sale of this merchandise to our customers. We do this by promoting and advertising
our merchandise and by making our stores an attractive and convenient place for our customers to shop.
Fundamentally, our business model is to offer the customer a compelling price/value relationship through
the combination of high quality products and services at a competitive price. We seek to deliver a high level of
profitability and cash flow by:
• maximizing the effectiveness of our pricing and brand awareness;
• minimizing costs through leveraging our centralized overhead expense structure;
• sourcing;
• reinvesting operating cash flows into store growth, and distribution initiatives, and improving product
quality in our exclusive brands;
• returning profits to shareholders through dividends, share repurchases and increased share price; and
• continuing to offer access to credit services and financial products to our customers through our long-
term marketing and servicing alliance with GE Consumer Finance (“GE”).
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