Dillard's 2015 Annual Report Download - page 66

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F-24
At January 30, 2016, letters of credit totaling $25.8 million were issued under the Company's $1.0 billion revolving credit
facility.
Various legal proceedings, in the form of lawsuits and claims, which occur in the normal course of business, are pending
against the Company and its subsidiaries. In the opinion of management, disposition of these matters is not expected to
materially affect the Company's financial position, cash flows or results of operations.
13. Asset Impairment and Store Closing Charges
During fiscal 2015 and 2014, no asset impairment and store closing charges were recorded.
During fiscal 2013, the Company recorded a pretax charge of $5.4 million for asset impairment and store closing costs.
The charge was for the write-down of certain cost method investments.
14. Fair Value Disclosures
The estimated fair values of financial instruments which are presented herein have been determined by the Company
using available market information and appropriate valuation methodologies. However, considerable judgment is required in
interpreting market data to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily
indicative of amounts the Company could realize in a current market exchange.
The fair value of the Company's long-term debt and subordinated debentures is based on market prices.
The fair value of the Company's cash and cash equivalents, restricted cash and trade accounts receivable approximates
their carrying values at January 30, 2016 and January 31, 2015 due to the short-term maturities of these instruments. The fair
values of the Company's long-term debt at January 30, 2016 and January 31, 2015 were approximately $695 million and $678
million, respectively. The carrying value of the Company's long-term debt at January 30, 2016 and January 31, 2015 was
approximately $615 million. The fair value of the subordinated debentures at January 30, 2016 and January 31, 2015 was
approximately $204 million and $207 million, respectively. The carrying value of the subordinated debentures at January 30,
2016 and January 31, 2015 was $200 million.
During fiscal 2013, the Company recognized an impairment charge of $5.4 million on certain cost method investments.
The Company evaluated all factors and determined that an other-than-temporary impairment charge was necessary. These
investments are recorded in other assets on the balance sheet.
15. Quarterly Results of Operations (unaudited)
Fiscal 2015, Three Months Ended
(in thousands of dollars, except per share data) May 2 August 1 October 31 January 30
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,573,493 $ 1,513,778 $ 1,434,654 $ 2,073,701
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 613,074 493,447 521,734 616,566
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109,571 29,950 45,744 84,105
Diluted earnings per share:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.66 $ 0.75 $ 1.19 $ 2.31
Fiscal 2014, Three Months Ended
(in thousands of dollars, except per share data) May 3 August 2 November 1 January 31
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,551,314 $ 1,474,484 $ 1,459,781 $ 2,135,475
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 612,090 498,215 535,338 702,806
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111,683 34,449 55,231 130,490
Diluted earnings per share:
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.56 $ 0.80 $ 1.30 $ 3.17
Total of quarterly earnings per common share may not equal the annual amount because net income per common share is
calculated independently for each quarter.