Dillard's 2015 Annual Report Download - page 57

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F-15
(in thousands of dollars) Retail Operations
Fiscal 2013
Construction Consolidated
Net sales from external customers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,439,304 $ 92,343 $ 6,531,647
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,301,271 6,661 2,307,932
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255,240 250 255,490
Interest and debt expense (income), net . . . . . . . . . . . . . . . . . . . . . . . . 64,572 (67) 64,505
Income before income taxes and income on and equity in losses of
joint ventures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 494,452 1,772 496,224
Income on and equity in losses of joint ventures . . . . . . . . . . . . . . . . . 847 — 847
Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,011,771 38,968 4,050,739
Intersegment construction revenues of $77.7 million, $82.5 million and $35.0 million were eliminated during
consolidation and have been excluded from net sales for fiscal years 2015, 2014 and 2013, respectively.
3. Revolving Credit Agreement
In May 2015, the Company entered into a new $1.0 billion senior unsecured revolving credit facility ("credit
agreement"), replacing the secured credit facility with J. P. Morgan Securities LLC, Wells Fargo Securities, LLC, Regions
Capital Markets and Citizens Bank, N.A. The facility expires May 13, 2020 and is available to the Company for working
capital needs and general corporate purposes including, among other uses, working capital financing, the issuance of letters of
credit, capital expenditures and, subject to certain restrictions, the repayment of existing indebtedness and share repurchases.
The Company pays a variable rate of interest on borrowings under the credit agreement and a commitment fee to the
participating banks based on the Company's debt rating. The rate of interest on borrowings is LIBOR plus 1.375%, and the
commitment fee for unused borrowings is 0.20% per annum.
No borrowings were outstanding at January 30, 2016. Letters of credit totaling $25.8 million were issued under this credit
agreement leaving unutilized availability under the facility of approximately $974 million at January 30, 2016. The Company
had weighted-average borrowings of $41.3 million and $13.1 million during fiscal 2015 and 2014, respectively.
Peak borrowings under the credit facility were $310 million during fiscal 2015.
To be in compliance with the financial covenants of the new credit facility, the Company's total leverage ratio cannot
exceed 4.0 to 1.0 and the coverage ratio cannot be less than 2.5 to 1.0, as defined in the credit facility agreement. At January 30,
2016, the Company was in compliance with all financial covenants related to the credit agreement.
4. Long-Term Debt
Long-term debt of $614.8 million was outstanding at January 30, 2016 and January 31, 2015. This debt consisted of
unsecured notes, bearing interest rates ranging from 6.625% to 7.875% and maturing during fiscal 2017 through fiscal 2028.
There are no financial covenants under any of the debt agreements.
Long-term debt maturities over the next five years are (in millions):
Fiscal Year
Long-Term Debt
Maturities
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $—
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87.2
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161.0
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . —