Dillard's 2009 Annual Report Download - page 19

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2006
The items below amount to a net $9.1 million pretax gain ($81.8 million after tax gain or $1.02 per
diluted share).
• a $13.8 million pretax gain ($8.5 million after tax or $0.11 per diluted share) on the sale of the
Company’s interest in a mall joint venture.
• a $6.5 million pretax gain ($4.0 million after tax or $0.05 per diluted share) related to proceeds
received from the Visa Check/Mastermoney Antitrust litigation.
• a $21.7 million pretax charge ($13.6 million after tax or $0.17 per diluted share) for a
memorandum of understanding reached in a litigation case.
• a $10.5 million pretax interest credit ($6.6 million after tax or $0.08 per diluted share) and a net
income tax benefit of $64.0 million ($0.80 per diluted share) which includes $18.3 million for the
change in a capital loss valuation allowance. Both the pretax interest credit and the income tax
benefit are related to statute expirations and audit settlements with federal and state authorities
for multiple tax years.
• a $5.8 million income tax benefit ($0.07 per diluted share) for the change in a capital loss
valuation allowance due to capital gain income and $6.5 million tax benefit ($0.08 per diluted
share) due to the release of tax reserves.
2005
The items below amount to a net $32.0 million pretax charge ($24.7 million after tax gain or $0.30
per diluted share).
• a $61.7 million pretax charge ($39.6 million after tax or $0.49 per diluted share) for asset
impairment and store closing charges related to certain stores.
• a $29.7 million pretax gain ($18.9 million after tax or $0.23 per diluted share) related to
hurricane recovery proceeds.
• a $45.4 million tax benefit ($0.56 per diluted share) related to the sale of one of the Company’s
subsidiaries.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
EXECUTIVE OVERVIEW
Dillard’s, Inc. operates 309 retail department stores in 29 states. Our retail stores are located in
fashion-oriented shopping malls and open-air centers 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, including 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 by promoting and
advertising our merchandise and by making our stores an attractive and convenient place for our
customers to shop.
In August of 2008, we purchased the remaining interest in CDI, a former 50% equity method joint
venture investment of the Company. CDI is a general contractor whose business includes constructing
and remodeling stores for the Company, which is a reportable segment separate from our retail
operations.
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