Dillard's 2012 Annual Report Download - page 34

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Selling, General and Administrative Expenses (‘‘SG&A’’)
(in thousands of dollars) Fiscal 2012 Fiscal 2011 Fiscal 2010
SG&A:
Retail operations segment ............. $1,666,798 $1,626,142 $1,621,190
Construction segment ................ 4,728 4,765 4,603
Total SG&A ......................... $1,671,526 $1,630,907 $1,625,793
SG&A as a percentage of segment net sales:
Retail operations segment ............. 25.7% 26.3% 26.9%
Construction segment ................ 4.6 6.8 4.6
Total SG&A as a percentage of net sales .... 25.4 26.0 26.6
2012 Compared to 2011
SG&A improved 60 basis points of sales during fiscal 2012 compared to fiscal 2011 while total
SG&A dollars increased $40.6 million. The dollar increase was most noted in: payroll and payroll
related taxes ($42.9 million), primarily due to the 53rd week of fiscal 2012 as well as increases in selling
payroll; services purchased ($9.6 million); and insurance ($6.7 million). These increases were partially
offset by decreased net advertising expenditures ($21.5 million).
We believe that SG&A will improve slightly as a percentage of sales during fiscal 2013 as
compared to fiscal 2012; however, there is no guarantee of improved SG&A performance.
2011 Compared to 2010
SG&A improved 60 basis points of sales during fiscal 2011 compared to fiscal 2010 while total
SG&A dollars increased $5.1 million. The dollar increase was most noted in payroll and payroll related
taxes ($12.7 million), primarily of selling payroll, supplies ($6.6 million), and services purchased
($2.8 million) and partially offset by decreased net advertising expenditures ($8.5 million) and utilities
($6.7 million).
Depreciation and Amortization
(in thousands of dollars) Fiscal 2012 Fiscal 2011 Fiscal 2010
Depreciation and amortization:
Retail operations segment ................ $259,414 $257,504 $261,368
Construction segment ................... 207 181 182
Total depreciation and amortization ........... $259,621 $257,685 $261,550
2012 Compared to 2011
Depreciation and amortization expense increased $1.9 million during fiscal 2012 compared to fiscal
2011.
2011 Compared to 2010
Depreciation and amortization expense decreased $3.9 million during fiscal 2011 compared to
fiscal 2010 primarily as a result of reduced capital expenditures and store closures.
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