Belk (BLKIA) 10-Q 9 Jun 15 2016 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	2-May-15	Jun. 02, 2015
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	2-May-15
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Trading Symbol	belk
Entity Registrant Name	BELK INC
Entity Central Index Key	1051771
Current Fiscal Year End Date	-29
Entity Filer Category	Accelerated Filer
Class A Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		38,300,291
Class B Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		1,089,974

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Income (unaudited) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	2-May-15	3-May-14
Income Statement [Abstract]
Revenues	$984,979	$955,142
Cost of goods sold (including occupancy, distribution and buying expenses)	665,501	646,118
Selling, general and administrative expenses	275,247	267,756
Gain on sale of property and equipment	670	587
Asset impairment and exit costs	456	788
Operating income	44,445	41,067
Interest expense, net	-11,942	-11,542
Income before income taxes	32,503	29,525
Income tax expense	10,703	10,201
Net income	$21,800	$19,324
Basic and diluted net income per share	$0.55	$0.47
Weighted average shares outstanding:
Basic	39,306,670	41,084,853
Diluted	39,448,715	41,260,122

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Comprehensive Income (unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	2-May-15	3-May-14
Statement of Comprehensive Income [Abstract]
Net income	$21,800	$19,324
Other comprehensive income:
Defined benefit plan adjustments, net of $1,187 and $992 income taxes for the three months ended May 2, 2015 and May 3, 2014, respectively.	2,020	1,672
Total other comprehensive income	2,020	1,672
Total comprehensive income	$23,820	$20,996

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	2-May-15	3-May-14
Statement of Comprehensive Income [Abstract]
Income taxes on defined benefit plan adjustments	$1,187	$992

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (unaudited) (USD $)	2-May-15	Jan. 31, 2015
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$240,290	$294,359
Accounts receivable, net	71,852	60,575
Merchandise inventory	1,043,465	959,645
Prepaid income taxes, expenses and other current assets	28,247	27,323
Total current assets	1,383,854	1,341,902
Property and equipment, net of accumulated depreciation and amortization of $1,600,238 and $1,586,423 as of May 2, 2015 and January 31, 2015, respectively.	1,277,568	1,274,146
Other assets	42,424	38,443
Total assets	2,703,846	2,654,491
Current liabilities:
Accounts payable	358,957	277,212
Accrued liabilities	247,963	254,084
Accrued income taxes	9,721	26,780
Deferred income taxes	32,142	32,663
Current installments of long-term debt and capital lease obligations	107,169	108,736
Total current liabilities	755,952	699,475
Deferred income taxes	18,194	17,721
Long-term debt and capital lease obligations, excluding current installments	317,849	318,991
Retirement obligations and other noncurrent liabilities	257,423	256,558
Total liabilities	1,349,418	1,292,745
Stockholders' equity:
Preferred stock
Common stock, 400 million shares authorized and 39.4 and 39.3 million shares issued and outstanding as of May 2, 2015 and January 31, 2015, respectively.	394	393
Paid-in capital	95,235	94,877
Retained earnings	1,419,197	1,428,894
Accumulated other comprehensive loss	-160,398	-162,418
Total stockholders' equity	1,354,428	1,361,746
Total liabilities and stockholders' equity	$2,703,846	$2,654,491

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) (USD $)	2-May-15	Jan. 31, 2015
In Thousands, except Share data, unless otherwise specified
Statement of Financial Position [Abstract]
Accumulated depreciation and amortization on property and equipment	$1,600,238	$1,586,423
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	39,400,000	39,300,000
Common stock, shares outstanding	39,400,000	39,300,000

Condensed_Consolidated_Stateme3

Condensed Consolidated Statement of Changes in Stockholders' Equity (unaudited) (USD $)	Total	Common Stock [Member]	Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
In Thousands
Balance at Jan. 31, 2015	$1,361,746	$393	$94,877	$1,428,894	($162,418)
Balance, shares at Jan. 31, 2015		39,264
Net income	21,800			21,800
Other comprehensive income	2,020				2,020
Cash dividends	-31,497			-31,497
Issuance of stock-based compensation	-2,867		-2,867
Stock-based compensation expense	3,225		3,225
Common stock issued	1	1
Common stock issued, shares		107
Balance at May. 02, 2015	$1,354,428	$394	$95,235	$1,419,197	($160,398)
Balance, shares at May. 02, 2015		39,371

Condensed_Consolidated_Stateme4

Condensed Consolidated Statements of Cash Flows (unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	2-May-15	3-May-14
Cash flows from operating activities:
Net income	$21,800	$19,324
Adjustments to reconcile net income to net cash provided by operating activities:
Asset impairment and exit costs	456	788
Deferred income tax (benefit) expense	-938	328
Depreciation and amortization expense	42,093	36,689
Stock-based compensation expense	3,225	2,235
(Gain) loss on sale of property and equipment	-13	70
Amortization of deferred gain on sale and leaseback	-657	-657
Amortization of deferred debt issuance costs	122	207
Increase in:
Accounts receivable, net	-11,277	-4,116
Merchandise inventory	-83,820	-59,977
Prepaid income taxes, expenses and other assets	-5,480	-5,986
Increase (decrease) in:
Accounts payable and accrued liabilities	69,653	32,026
Accrued income taxes	-17,059	-4,085
Retirement obligations and other liabilities	4,766	809
Net cash provided by operating activities	22,871	17,655
Cash flows from investing activities:
Purchases of property and equipment	-39,955	-52,657
Proceeds from sales of property and equipment	88	50
Net cash used by investing activities	-39,867	-52,607
Cash flows from financing activities:
Principal payments on long-term debt and capital lease obligations	-2,709	-2,010
Dividends paid	-31,497	-32,964
Stock compensation tax benefit	455	357
Cash paid for withholding taxes in lieu of stock-based compensation shares	-3,322	-6,349
Net cash used by financing activities	-37,073	-40,966
Net decrease in cash and cash equivalents	-54,069	-75,918
Cash and cash equivalents at beginning of period	294,359	295,334
Cash and cash equivalents at end of period	240,290	219,416
Supplemental disclosures of cash flow information:
Income taxes paid	28,724	14,854
Interest paid, net of capitalized interest	4,790	4,492
Supplemental schedule of noncash investing activities:
Increase in property and equipment through accrued purchases	$5,491	$5,970

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	2-May-15
Accounting Policies [Abstract]
Basis of Presentation	(1) Basis of Presentation
	The accompanying unaudited condensed consolidated financial statements of Belk, Inc. and subsidiaries (the “Company”) have been prepared in accordance with the instructions to Form 10-Q promulgated by the United States Securities and Exchange Commission (“SEC”) and should be read in conjunction with our Annual Report on Form 10-K for the fiscal year ended January 31, 2015. In the opinion of management, this information is fairly presented and all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods have been included; however, certain items are included in these statements based on estimates for the entire year. Also, operating results for the three months ended May 2, 2015 may not be indicative of the operating results that may be expected for the full fiscal year.

New_Accounting_Pronouncements

New Accounting Pronouncements	3 Months Ended
	2-May-15
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	(2) New Accounting Pronouncements
	In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which changes the definition of a discontinued operation and the requirements for reporting discontinued operations. The Company adopted this guidance beginning in the first quarter of fiscal year 2016 when it was required. The adoption of this update did not have a material effect on the Company’s condensed consolidated results of operations, financial position or cash flows.

Accumulated_Other_Comprehensiv

Accumulated Other Comprehensive Loss	3 Months Ended
	2-May-15
Equity [Abstract]
Accumulated Other Comprehensive Loss	(3) Accumulated Other Comprehensive Loss
	As of May 2, 2015 and January 31, 2015, the accumulated other comprehensive loss for defined benefit plans was $160.4 million and $162.4 million, respectively. These amounts are net of income taxes of $96.5 million and $97.7 million at May 2, 2015 and January 31, 2015, respectively.
	As of May 2, 2015 and May 3, 2014, the Company reclassified $2.0 million and $1.7 million of amortization of defined benefit plan liabilities from accumulated comprehensive income to selling, general and administrative expenses on the condensed consolidated statements of income, respectively. These amounts are net of income taxes of $1.2 million and $1.0 million at May 2, 2015 and May 3, 2014, respectively.

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
	2-May-15
Fair Value Disclosures [Abstract]
Fair Value Measurements	(4) Fair Value Measurements
	Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date. The Company uses a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets and liabilities; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
	The Company has equity and fixed income investments related to its company-owned life insurance. The fair value of the investments is the estimated amount that the Company would receive if the policy was terminated, taking into consideration the current creditworthiness of the insurer. The fair value of the company-owned life insurance is considered Level 2, as it is determined by inputs that are readily available in public markets or can be derived from information available in publicly quoted markets. Additionally, the change in the fair value of the company-owned life insurance is marked to market through income.
	As of May 2, 2015 and January 31, 2015, the Company held company-owned life insurance measured at fair value on a recurring basis of $33.0 million and $28.6 million, respectively. These amounts are presented net of loans that are secured by some of these policies of $161.6 million and $164.1 million at May 2, 2015 and January 31, 2015, respectively. Total gross company-owned life insurance assets were $194.6 million and $192.7 million at May 2, 2015 and January 31, 2015, respectively.
	Certain long-lived assets are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances (for example, when there is evidence of impairment). The fair value measurements related to long-lived assets are determined using expected future cash flow analyses. The Company estimates future cash flows based on historical experience and its expectation of future performance. The analyses use discounted cash flows and take into consideration any anticipated salvage value or sales price for the store. The analyses also assume available option periods through 20 years unless there is a real estate related event which would either increase or decrease the time period. The Company classifies these measurements as Level 3. There were no significant impairments of long-lived assets for the three months ended May 2, 2015 and May 3, 2014.
	As of May 2, 2015 and January 31, 2015, the fair value of fixed rate long-term debt, including the current portion and excluding capitalized leases, was $399.3 million and $400.9 million, respectively. The Company classifies these measurements as Level 2. The fair value of the Company’s fixed rate long-term debt is estimated based on the current rates offered for debt of the same remaining maturities and credit ratings. The total carrying value of long-term debt, including the current portion and excluding capitalized leases, was $375.0 million as of May 2, 2015 and January 31, 2015.

Income_Taxes

Income Taxes	3 Months Ended
	2-May-15
Income Tax Disclosure [Abstract]
Income Taxes	(5) Income Taxes
	Income tax expense for the three months ended May 2, 2015 was $10.7 million, or 32.9% of pre-tax income, compared to $10.2 million, or 34.6% of pre-tax income, for the three months ended May 3, 2014. The increase in income tax expense was due primarily to the increase in income before income taxes for the three months ended May 2, 2015. The decrease in the income tax rate was primarily a result of a decrease in the state tax effective rates and higher non-taxable corporate owned life insurance income.

Pension_SERP_and_Postretiremen

Pension, SERP and Postretirement Benefits	3 Months Ended
	2-May-15
Compensation and Retirement Disclosure [Abstract]
Pension, SERP and Postretirement Benefits	(6) Pension, SERP and Postretirement Benefits
	The Company has a defined benefit pension plan, the Belk Pension Plan, which prior to fiscal year 2010 had been partially frozen and closed to new participants. Pension benefits were suspended for fiscal year 2010, and effective December 31, 2009, the Pension Plan was frozen for those remaining participants whose benefits were not previously frozen.
	The Company has a non-qualified defined benefit Supplemental Executive Retirement Plan, (“Old SERP”), which provides retirement and death benefits to certain qualified executives. Old SERP has been closed to new executives and has been replaced by the 2004 Supplemental Executive Retirement Plan (“2004 SERP”), a non-qualified defined contribution plan.
	The Company also provides postretirement medical and life insurance benefits to certain employees, and was closed to new participants in 2002. The Company accounts for postretirement benefits by recognizing the cost of these benefits over an employee’s estimated term of service with the Company, in accordance with ASC 715, “Compensation – Retirement Benefits.”
	The components of net periodic benefit expense for these plans are as follows:
		Three Months Ended
		Pension Plan						Old SERP Plan				Postretirement Plan
		May 2,			May 3,			May 2,		May 3,		May 2,		May 3,
		2015			2014			2015		2014		2015		2014
								(in thousands)
	Service cost	$	—		$	—		$	50	$	39	$	20	$	19
	Interest cost		5,466			5,986			142		133		167		206
	Expected return on plan assets		(6,824	)		(7,530	)		—		—		—		—
	Amortization of net loss (gain)		2,965			2,547			242		127		—		(10	)
	Net periodic benefit expense	$	1,607		$	1,003		$	434	$	299	$	187	$	215
	The Company does not expect to make contributions to the Pension Plan during fiscal year 2016 and did not make any contributions during fiscal year 2015.

Earnings_per_Share

Earnings per Share	3 Months Ended
	2-May-15
Earnings Per Share [Abstract]
Earnings per Share	(7) Earnings per Share
	Basic earnings per share (“EPS”) is computed by dividing net income by the weighted-average number of shares of common stock outstanding for the period. The diluted EPS calculation includes the effect of contingently issuable stock-based compensation awards with remaining service vesting conditions as being outstanding at the beginning of the period in which all vesting conditions are met.
	If all necessary conditions have not been satisfied by the end of the period, the contingently issuable shares included in diluted EPS are based on the number of dilutive shares that would be issuable at the end of the contingency period. Contingently-issuable non-vested share awards are included in the diluted EPS calculation as of the beginning of the period (or as of the date of the contingent share agreement, if later).
	The reconciliation of basic and diluted shares for the three months ended May 2, 2015 and May 3, 2014, are as follows:
		Three Months Ended
		May 2,		May 3,
		2015		2014
	Basic Shares		39,306,670		41,084,853
	Dilutive contingently-issuable non-vested share awards		141,277		174,601
	Dilutive contingently-issuable vested share awards		768		668
	Diluted Shares		39,448,715		41,260,122

New_Accounting_Pronouncements_

New Accounting Pronouncements (Policies)	3 Months Ended
	2-May-15
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which changes the definition of a discontinued operation and the requirements for reporting discontinued operations. The Company adopted this guidance beginning in the first quarter of fiscal year 2016 when it was required. The adoption of this update did not have a material effect on the Company’s condensed consolidated results of operations, financial position or cash flows.

Pension_SERP_and_Postretiremen1

Pension, SERP and Postretirement Benefits (Tables)	3 Months Ended
	2-May-15
Compensation and Retirement Disclosure [Abstract]
Schedule of Net Periodic Benefit Expense	The components of net periodic benefit expense for these plans are as follows:
		Three Months Ended
		Pension Plan						Old SERP Plan				Postretirement Plan
		May 2,			May 3,			May 2,		May 3,		May 2,		May 3,
		2015			2014			2015		2014		2015		2014
								(in thousands)
	Service cost	$	—		$	—		$	50	$	39	$	20	$	19
	Interest cost		5,466			5,986			142		133		167		206
	Expected return on plan assets		(6,824	)		(7,530	)		—		—		—		—
	Amortization of net loss (gain)		2,965			2,547			242		127		—		(10	)
	Net periodic benefit expense	$	1,607		$	1,003		$	434	$	299	$	187	$	215

Earnings_per_Share_Tables

Earnings per Share (Tables)	3 Months Ended
	2-May-15
Earnings Per Share [Abstract]
Reconciliation of Basic and Diluted Shares	The reconciliation of basic and diluted shares for the three months ended May 2, 2015 and May 3, 2014, are as follows:
		Three Months Ended
		May 2,		May 3,
		2015		2014
	Basic Shares		39,306,670		41,084,853
	Dilutive contingently-issuable non-vested share awards		141,277		174,601
	Dilutive contingently-issuable vested share awards		768		668
	Diluted Shares		39,448,715		41,260,122

Accumulated_Other_Comprehensiv1

Accumulated Other Comprehensive Loss - Additional Information (Detail) (USD $)	3 Months Ended
In Millions, unless otherwise specified	2-May-15	3-May-14	Jan. 31, 2015
Equity [Abstract]
Accumulated other comprehensive loss for defined benefit plans	($160.40)		($162.40)
Accumulated income taxes on accumulated other comprehensive loss for defined benefit plans	96.5		97.7
Amount reclassified from accumulated comprehensive income	2	1.7
Amount reclassified from accumulated comprehensive income, tax effect	$1.20	$1

Fair_Value_Measurements_Additi

Fair Value Measurements - Additional Information (Detail) (USD $)	3 Months Ended
	2-May-15	3-May-14	Jan. 31, 2015
Fair Value Disclosures [Abstract]
Life insurance corporate or bank owned fair value amount	$33,000,000		$28,600,000
Loans secured by company-owned life insurance	161,600,000		164,100,000
Company-owned life insurance assets, gross	194,600,000		192,700,000
Available option period	20 years
Asset impairment charges	0	0
Fair value of fixed rate long-term debt	399,300,000		400,900,000
Carrying value of long-term debt	$375,000,000		$375,000,000

Income_Taxes_Additional_Inform

Income Taxes - Additional Information (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	2-May-15	3-May-14
Income Tax Disclosure [Abstract]
Income tax expense	$10,703	$10,201
Income tax expense, percentage	32.90%	34.60%

Pension_SERP_and_Postretiremen2

Pension, SERP and Postretirement Benefits - Schedule of Net Periodic Benefit Expense (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	2-May-15	3-May-14
Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	$5,466	$5,986
Expected return on plan assets	-6,824	-7,530
Amortization of net loss (gain)	2,965	2,547
Net periodic benefit expense	1,607	1,003
Old SERP Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	50	39
Interest cost	142	133
Amortization of net loss (gain)	242	127
Net periodic benefit expense	434	299
Postretirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	20	19
Interest cost	167	206
Amortization of net loss (gain)		-10
Net periodic benefit expense	$187	$215

Earnings_Per_Share_Reconciliat

Earnings Per Share - Reconciliation of Basic and Diluted Shares (Detail)	3 Months Ended
	2-May-15	3-May-14
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Basic Shares	39,306,670	41,084,853
Diluted Shares	39,448,715	41,260,122
Non-vested Share Awards [Member]
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Dilutive contingently-issuable	141,277	174,601
Vested Share Awards [Member]
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Dilutive contingently-issuable	768	668