Dillard's 2008 Annual Report Download - page 13

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accounts, the level of balances carried on the GE accounts by GE customers, payment rates on GE accounts,
finance charge rates and other fees on GE accounts, the level of credit losses for the GE accounts, GE’s ability to
extend credit to our customers as well as GE’s funding costs, all of which can vary based on changes in federal
and state banking and consumer protection laws and from a variety of economic, legal, social, and other factors
that we cannot control.
The percentage-of-completion method of accounting for contract revenues may result in material adjustments,
which could result in a charge against our earnings.
Our construction segment recognizes contract revenues using the percentage-of-completion method. Under
this method, estimated contract revenues are recognized by applying the percentage of completion of the project
for the period to the total estimated revenues for the contract. Estimated contract losses are recognized in full
when determined. Total contract revenues and cost estimates are reviewed and revised at a minimum on a
quarterly basis as the work progresses and as change orders are approved. Adjustments based upon the
percentage of completion are reflected in contract revenues in the period when these estimates are revised. To the
extent that these adjustments result in an increase, a reduction or an elimination of previously reported contract
profit, we recognize a credit or a charge against current earnings, which could be material.
ITEM 1B. UNRESOLVED STAFF COMMENTS.
None.
7