Dillard's 2012 Annual Report Download - page 36

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The Company reached an agreement effective November 30, 2011 with i2 Technologies, Inc. (‘‘i2’’),
a subsidiary of JDA Software Group, Inc. (‘‘JDA’’), to settle a lawsuit filed by Dillard’s against i2 over
software sold to Dillard’s by i2 in 2000, prior to JDA’s acquisition of i2 in 2010. Pursuant to the
agreement, i2 paid Dillard’s $57.0 million during fiscal 2011. After providing for settlement related
expenses, the Company recorded $44.5 million in gain on litigation settlement.
Gain on Disposal of Assets
(in thousands of dollars) Fiscal 2012 Fiscal 2011 Fiscal 2010
Gain (loss) on disposal of assets:
Retail operations segment ................ $12,434 $4,019 $5,620
Construction segment ................... 1 (64) 12
Total gain on disposal of assets .............. $12,435 $3,955 $5,632
Fiscal 2012
During fiscal 2012, the Company sold five former retail stores and one building that was a portion
of a currently operating retail location. Four of the former retail stores were held for sale and were
located in Charlotte, North Carolina; Cincinnati, Ohio; Antioch, Tennessee and Dallas, Texas. The
other former retail store was located in Colonial Heights, Virginia and was closed during the year. The
Company received proceeds of $25.1 million relative to these sales which resulted in a net gain of
$12.3 million. The gain was recorded in gain on disposal of assets.
Fiscal 2011
During fiscal 2011, the Company received proceeds of $10.3 million from the sale of two former
retail store locations located in West Palm Beach, Florida and Las Vegas, Nevada, resulting in gains
totaling $1.3 million. Additionally, the Company received proceeds of $11.0 million from the sale of an
interest in a mall joint venture, resulting in a gain of $2.1 million.
Fiscal 2010
During fiscal 2010, the Company sold three vacant retail store properties located in Austin, Texas;
Macon, Georgia and Chesapeake, Virginia for $7.3 million, resulting in a $3.1 million net gain. The
Company also sold two retail store properties located in Coral Springs, Florida and Miami, Florida for
$10.0 million, resulting in a $2.0 million gain.
Asset Impairment and Store Closing Charges
(in thousands of dollars) Fiscal 2012 Fiscal 2011 Fiscal 2010
Asset impairment and store closing charges:
Retail operations segment ................ $1,591 $1,200 $2,208
Construction segment ................... — — —
Total asset impairment and store closing charges . $1,591 $1,200 $2,208
Fiscal 2012
Asset impairment and store closing charges for fiscal 2012 consisted of the write-down of a
property held for sale and of an operating property, both of which the Company has currently
contracted to sell.
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