Dillard's 2009 Annual Report Download - page 30

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2009 Compared to 2008
SG&A decreased $288.6 million during fiscal 2009 compared to fiscal 2008 primarily as a result of
the Company’s cost control measures enacted during fiscal 2008 and store closures that occurred
primarily during fiscal 2008. The decline was most noted in payroll and related payroll taxes
($193.3 million), advertising ($31.6 million), services purchased ($20.0 million) and supplies
($13.0 million).
2008 Compared to 2007
SG&A decreased $132.6 million during fiscal 2008 from fiscal 2007 primarily as a result of the
Company’s cost control measures and store closures. Notable areas of savings during the year were in
payroll and related payroll taxes ($73.5 million), advertising ($31.6 million), services purchased
($15.7 million) and supplies ($12.3 million). These savings were partially offset by charges of
$7.3 million related to losses and remediation expenses incurred during the current year as a result of
Hurricane Ike.
Depreciation and Amortization
(in thousands of dollars) Fiscal 2009 Fiscal 2008 Fiscal 2007
Depreciation and amortization .............. $262,877 $284,287 $298,927
2009 Compared to 2008
Depreciation and amortization expense decreased $21.4 million during fiscal 2009 compared to
fiscal 2008 primarily as a result of the Company’s continuing efforts to reduce capital expenditures and
of store closures that occurred and impairment charges that were recorded mainly during the fourth
quarter of fiscal 2008.
2008 Compared to 2007
Depreciation and amortization expense decreased $14.6 million during fiscal 2008 compared to
fiscal 2007 primarily as a result of the Company’s plan to reduce capital expenditures.
Rentals
(in thousands of dollars) Fiscal 2009 Fiscal 2008 Fiscal 2007
Rentals ............................... $58,363 $61,481 $59,987
2009 Compared to 2008
Rental expense declined $3.1 million or 5.1% in fiscal 2009 compared to fiscal 2008 primarily due
to store closures that occurred during the second half of fiscal 2008 as the Company executed its plan
to exit under-performing locations.
2008 Compared to 2007
Rental expense increased $1.5 million or 2.5% in fiscal 2008 compared to fiscal 2007 primarily due
to the increase of leased equipment.
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