Dillard's 2012 Annual Report Download - page 67

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Notes to Consolidated Financial Statements (Continued)
2. Business Segments (Continued)
Fiscal 2010
(in thousands of dollars) Retail Operations Construction Consolidated
Net sales from external customers ................... $6,020,043 $100,918 $6,120,961
Gross profit .................................... 2,138,103 1,985 2,140,088
Depreciation and amortization ...................... 261,368 182 261,550
Interest and debt expense (income), net ............... 74,009 (217) 73,792
Income (loss) before income taxes and income on (equity in
losses of) joint ventures ......................... 269,644 (928) 268,716
Income on (equity in losses of) joint ventures ........... (4,646) — (4,646)
Total assets .................................... 4,332,262 41,904 4,374,166
Intersegment construction revenues of $32.4 million, $37.3 million and $28.8 million were
eliminated during consolidation and have been excluded from net sales for the years ended February 2,
2013, January 28, 2012 and January 29, 2011, respectively.
3. Revolving Credit Agreement
At February 2, 2013, the Company maintained a $1.0 billion revolving credit facility (‘‘credit
agreement’’) with JPMorgan Securities LLC (‘‘JPMorgan’’) and Wells Fargo Capital Finance, LLC as
the agents for various banks, secured by the inventory of Dillard’s, Inc. operating subsidiaries. The
credit agreement expires April 11, 2017. Borrowings under the credit agreement accrue interest at
either JPMorgan’s Base Rate or LIBOR plus 1.5% (1.70% at February 2, 2013) subject to certain
availability thresholds as defined in the credit agreement.
Limited to 90% of the inventory of certain Company subsidiaries, availability for borrowings and
letter of credit obligations under the credit agreement was $871.5 million at February 2, 2013. No
borrowings were outstanding at February 2, 2013. Letters of credit totaling $52.5 million were issued
under this credit agreement leaving unutilized availability under the facility of approximately
$819 million at February 2, 2013. No borrowings were outstanding as of January 28, 2012. There are no
financial covenant requirements under the credit agreement provided that availability for borrowings
and letters of credit exceeds $100 million. The Company pays an annual commitment fee to the banks
of 0.375% of the committed amount less outstanding borrowings and letters of credit. The Company
had weighted-average borrowings of $17.0 million and $72.6 million during fiscal 2012 and 2011,
respectively.
F-17