Dillard's 2012 Annual Report Download - page 65

Notes to Consolidated Financial Statements (Continued)
1. Description of Business and Summary of Significant Accounting Policies (Continued)
Presentation of Comprehensive Income
In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220)—Presentation
of Comprehensive Income, to make the presentation of items within other comprehensive income
(‘‘OCI’’) more prominent. The new standard requires companies to present items of net income, items
of OCI and total comprehensive income in one continuous statement or two separate consecutive
statements, and companies will no longer be allowed to present items of OCI solely in the statement of
stockholders’ equity. This new update was effective for interim and annual periods beginning after
December 15, 2011 and was applied retrospectively. The adoption of this standard changed the order
and placement where certain financial statement items are presented but did not have any other impact
on the Company’s financial statements.
In February 2013, the FASB issued ASU No. 2013-06, Comprehensive Income (Topic 220): Reporting
of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires the Company
to report the effect of significant reclassifications out of accumulated other comprehensive income on
the respective line items in net income on the Company’s consolidated statement of comprehensive
income if the amount being reclassified is required under U.S. GAAP to be reclassified in its entirety
to net income. This update does not change the current requirements for reporting net income or other
comprehensive income in the consolidated financial statements of the Company, but does require the
Company to provide information about the amounts reclassified out of accumulated other
comprehensive income by component. The provisions in this update are effective prospectively
beginning with the Company’s first quarter of 2013, with early adoption permitted. The adoption of this
update affects the format and presentation of its consolidated financial statements and the footnotes to
the consolidated financial statements but will not have any other impact on the Company’s financial
statements.
2. Business Segments
The Company operates in two reportable segments: the operation of retail department stores and
a general contracting construction company.
For the Company’s retail operations reportable segment, 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.
F-15