Dillard's 2013 Annual Report Download - page 14

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8
additional resources related to our information security systems and could result in a disruption of our operations, particularly
our online sales operations.
The percentage-of-completion method of accounting that we use to recognize contract revenues for our construction
segment may result in material adjustments, which could result in a charge against our earnings.
Our construction segment recognizes contract revenues using the percentage-of-completion method. Under this method,
estimated contract revenues are recognized by applying the percentage of completion of the project for the period to the total
estimated revenues for the contract. Estimated contract losses are recognized in full when determined. Total contract revenues
and cost estimates are reviewed and revised at a minimum on a quarterly basis as the work progresses and as change orders are
approved. Adjustments based upon the percentage of completion are reflected in contract revenues in the period when these
estimates are revised. To the extent that these adjustments result in an increase, a reduction or an elimination of previously
reported contract profit, we are required to recognize a credit or a charge against current earnings, which could be material.
ITEM 1B. UNRESOLVED STAFF COMMENTS.
None.