Dillard's 2013 Annual Report Download - page 25

19
2014 Guidance
A summary of estimates on key financial measures for fiscal 2014 is shown below.
(in millions of dollars)
Fiscal 2014
Estimated
Fiscal 2013
Actual
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 260 $ 255
Rentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 27
Interest and debt expense, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 65
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 95
General
Net sales. Net sales include merchandise sales of comparable and non-comparable stores and revenue recognized on
contracts of CDI, the Company's general contracting construction company. Comparable store sales include sales for those
stores which were in operation for a full period in both the current quarter and the corresponding quarter for the prior year.
Comparable store sales exclude changes in the allowance for sales returns. Non-comparable store sales include: sales in the
current fiscal year from stores opened during the previous fiscal year before they are considered comparable stores; sales from
new stores opened during the current fiscal year; sales in the previous fiscal year for stores closed during the current or
previous fiscal year that are no longer considered comparable stores; sales in clearance centers; and changes in the allowance
for sales returns.
Service charges and other income. Service charges and other income include income generated through the Alliance
with GE. Other income includes rental income, shipping and handling fees, gift card breakage and lease income on leased
departments.
Cost of sales. Cost of sales includes the cost of merchandise sold (net of purchase discounts and non-specific margin
maintenance allowances), bankcard fees, freight to the distribution centers, employee and promotional discounts, and direct
payroll for salon personnel. Cost of sales also includes CDI contract costs, which comprise all direct material and labor costs,
subcontract costs and those indirect costs related to contract performance, such as indirect labor, employee benefits and
insurance program costs.
Selling, general and administrative expenses. Selling, general and administrative expenses include buying,
occupancy, selling, distribution, warehousing, store and corporate expenses (including payroll and employee benefits),
insurance, employment taxes, advertising, management information systems, legal and other corporate level expenses. Buying
expenses consist of payroll, employee benefits and travel for design, buying and merchandising personnel.
Depreciation and amortization. Depreciation and amortization expenses include depreciation and amortization on
property and equipment.
Rentals. Rentals include expenses for store leases, including contingent rent, and data processing and other equipment
rentals.
Interest and debt expense, net. Interest and debt expense includes interest, net of interest income, relating to the
Company's unsecured notes, mortgage note, term note, subordinated debentures and borrowings under the Company's credit
facility. Interest and debt expense also includes gains and losses on note repurchases, if any, amortization of financing costs and
interest on capital lease obligations.
Gain on litigation settlement. Gain on litigation settlement includes the proceeds received, net of related expenses,
from the settlement of a lawsuit with JDA Software Group.
Gain on disposal of assets. Gain on disposal of assets includes the net gain or loss on the sale or disposal of property
and equipment and the gain on the sale of an investment.
Asset impairment and store closing charges. Asset impairment and store closing charges consist of (a) write-downs
to fair value of under-performing or held for sale properties and of cost method investments and (b) exit costs associated with
the closure of certain stores. Exit costs include future rent, taxes and common area maintenance expenses from the time the
stores are closed.
Income on and equity in losses of joint ventures. Income on and equity in losses of joint ventures includes the
Company's portion of the income or loss of the Company's unconsolidated joint ventures as well as a distribution of excess cash
from one of the Company's mall joint ventures.