Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | ||
3-May-14 | 31-May-14 | 31-May-14 | |
Common Stock Class A | Common Stock Class B | ||
Entity Registrant Name | 'DILLARDS INC | ' | ' |
Entity Central Index Key | '0000028917 | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 3-May-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--01-31 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 39,207,762 | 4,010,929 |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q1 | ' | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | ' |
Cash and cash equivalents | $312,081 | $237,134 | $155,958 |
Accounts receivable | 19,178 | 30,840 | 27,806 |
Merchandise inventories | 1,564,387 | 1,345,321 | 1,544,118 |
Other current assets | 47,081 | 46,861 | 47,431 |
Total current assets | 1,942,727 | 1,660,156 | 1,775,313 |
Property and equipment (net of accumulated depreciation and amortization of $2,319,162, $2,260,675 and $2,225,365) | 2,096,010 | 2,134,200 | 2,228,095 |
Other assets | 254,885 | 256,383 | 257,752 |
Total assets | 4,293,622 | 4,050,739 | 4,261,160 |
Current liabilities: | ' | ' | ' |
Trade accounts payable and accrued expenses | 820,782 | 640,336 | 847,625 |
Current portion of capital lease obligations | 798 | 784 | 1,316 |
Federal and state income taxes including current deferred taxes | 169,418 | 137,191 | 140,772 |
Total current liabilities | 990,998 | 778,311 | 989,713 |
Long-term debt | 614,785 | 614,785 | 614,785 |
Capital lease obligations | 6,556 | 6,759 | 7,340 |
Other liabilities | 230,112 | 228,439 | 226,228 |
Deferred income taxes | 215,412 | 230,248 | 247,679 |
Subordinated debentures | 200,000 | 200,000 | 200,000 |
Commitments and contingencies | ' | ' | ' |
Stockholdersb equity: | ' | ' | ' |
Common stock | 1,237 | 1,237 | 1,237 |
Additional paid-in capital | 935,208 | 935,208 | 932,495 |
Accumulated other comprehensive loss | -23,664 | -24,074 | -26,265 |
Retained earnings | 3,522,314 | 3,413,240 | 3,214,446 |
Less treasury stock, at cost | -2,399,336 | -2,333,414 | -2,146,498 |
Total stockholdersb equity | 2,035,759 | 1,992,197 | 1,975,415 |
Total liabilities and stockholdersb equity | $4,293,622 | $4,050,739 | $4,261,160 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 |
In Thousands, unless otherwise specified | |||
Statement of Financial Position [Abstract] | ' | ' | ' |
Property and equipment, accumulated depreciation and amortization | $2,319,162 | $2,260,675 | $2,225,365 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | 3-May-14 | 4-May-13 |
Income Statement [Abstract] | ' | ' |
Net sales | $1,551,314 | $1,549,136 |
Service charges and other income | 37,227 | 40,245 |
Total net sales, service charges and other income | 1,588,541 | 1,589,381 |
Cost of sales | 939,224 | 937,785 |
Selling, general and administrative expenses | 393,651 | 390,196 |
Depreciation and amortization | 61,959 | 65,116 |
Rentals | 5,815 | 5,571 |
Interest and debt expense, net | 15,841 | 16,310 |
Gain on disposal of assets | -389 | -12,345 |
Asset impairment and store closing charges | 0 | 6,527 |
Income before income taxes and income on and equity in losses of joint ventures | 172,440 | 180,221 |
Income taxes | 60,960 | 63,420 |
Income on and equity in losses of joint ventures | 203 | 409 |
Net Income | 111,683 | 117,210 |
Retained Earnings [Roll Forward] | ' | ' |
Retained earnings at beginning of period | 3,413,240 | 3,099,566 |
Cash dividends declared | -2,609 | -2,330 |
Retained earnings at end of period | $3,522,314 | $3,214,446 |
Earnings per share: | ' | ' |
Earnings Per Share, Basic and Diluted | $2.56 | $2.50 |
Cash dividends declared per common share (in dollars per share) | $0.06 | $0.05 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
Statement of Other Comprehensive Income [Abstract] | ' | ' |
Net Income | $111,683 | $117,210 |
Other comprehensive income: | ' | ' |
Amortization of retirement plan and other retiree benefit adjustments (net of tax of $255 and $3,098) | 410 | 5,010 |
Comprehensive income | $112,093 | $122,220 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
Statement of Other Comprehensive Income [Abstract] | ' | ' |
Amortization of retirement plan and other retiree benefit adjustments, tax | $255 | $3,098 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
Operating activities: | ' | ' |
Net Income | $111,683 | $117,210 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization of property and deferred financing costs | 62,344 | 65,608 |
Gain on disposal of assets | -389 | -12,345 |
Asset impairment and store closing charges | 0 | 6,527 |
Changes in operating assets and liabilities: | ' | ' |
Decrease in accounts receivable | 11,662 | 3,713 |
Increase in merchandise inventories | -219,066 | -249,537 |
Increase in other current assets | -220 | -5,611 |
Decrease in other assets | 1,138 | 2,179 |
Increase in trade accounts payable and accrued expenses and other liabilities | 177,316 | 187,972 |
Increase in income taxes payable | 17,391 | 21,162 |
Net cash provided by operating activities | 161,859 | 136,878 |
Investing activities: | ' | ' |
Purchases of property and equipment | -22,774 | -7,263 |
Proceeds from disposal of assets | 4,609 | 17,511 |
Net cash (used in) provided by investing activities | -18,165 | 10,248 |
Financing activities: | ' | ' |
Principal payments on long-term debt and capital lease obligations | -189 | -578 |
Cash dividends paid | -2,636 | 0 |
Purchase of treasury stock | -65,922 | -114,650 |
Net cash used in financing activities | -68,747 | -115,228 |
Increase in cash and cash equivalents | 74,947 | 31,898 |
Cash and cash equivalents, beginning of period | 237,134 | 124,060 |
Cash and cash equivalents, end of period | 312,081 | 155,958 |
Non-cash transactions: | ' | ' |
Accrued capital expenditures | $15,015 | $1,300 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
3-May-14 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited interim condensed consolidated financial statements of Dillard’s, Inc. (the “Company”) have been prepared in accordance with the rules of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended May 3, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2015 due to the seasonal nature of the business. | |
These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 1, 2014 filed with the SEC on March 27, 2014. |
Business_Segments
Business Segments | 3 Months Ended | ||||||||||||
3-May-14 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Business Segments | ' | ||||||||||||
Business Segments | |||||||||||||
The Company operates in two reportable segments: the operation of retail department stores (“retail operations”) and a general contracting construction company (“construction”). | |||||||||||||
For the Company’s retail operations, the Company determined its operating segments on a store by store basis. Each store’s operating performance has been aggregated into one reportable segment. The Company’s operating segments are aggregated for financial reporting purposes because they are similar in each of the following areas: economic characteristics, class of consumer, nature of products and distribution methods. Revenues from external customers are derived from merchandise sales, and the Company does not rely on any major customers as a source of revenue. Across all stores, the Company operates one store format under the Dillard’s name where each store offers the same general mix of merchandise with similar categories and similar customers. The Company believes that disaggregating its operating segments would not provide meaningful additional information. | |||||||||||||
The following tables summarize certain segment information, including the reconciliation of those items to the Company’s consolidated operations: | |||||||||||||
(in thousands of dollars) | Retail | Construction | Consolidated | ||||||||||
Operations | |||||||||||||
Three Months Ended May 3, 2014: | |||||||||||||
Net sales from external customers | $ | 1,539,193 | $ | 12,121 | $ | 1,551,314 | |||||||
Gross profit | 611,372 | 718 | 612,090 | ||||||||||
Depreciation and amortization | 61,885 | 74 | 61,959 | ||||||||||
Interest and debt expense (income), net | 15,854 | (13 | ) | 15,841 | |||||||||
Income before income taxes and income on and equity in losses of joint ventures | 173,236 | (796 | ) | 172,440 | |||||||||
Income on and equity in losses of joint ventures | 203 | — | 203 | ||||||||||
Total assets | 4,268,889 | 24,733 | 4,293,622 | ||||||||||
Three Months Ended May 4, 2013: | |||||||||||||
Net sales from external customers | $ | 1,530,000 | $ | 19,136 | $ | 1,549,136 | |||||||
Gross profit | 609,889 | 1,462 | 611,351 | ||||||||||
Depreciation and amortization | 65,057 | 59 | 65,116 | ||||||||||
Interest and debt expense (income), net | 16,330 | (20 | ) | 16,310 | |||||||||
Income before income taxes and income on and equity in losses of joint ventures | 179,899 | 322 | 180,221 | ||||||||||
Income on and equity in losses of joint ventures | 409 | — | 409 | ||||||||||
Total assets | 4,230,148 | 31,012 | 4,261,160 | ||||||||||
Intersegment construction revenues of $14.7 million and $1.7 million for the three months ended May 3, 2014 and May 4, 2013, respectively, were eliminated during consolidation and have been excluded from net sales for the respective periods. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended |
3-May-14 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
The Company has various stock option plans that provide for the granting of options to purchase shares of Class A Common Stock to certain key employees of the Company. Exercise and vesting terms for options granted under the plans are determined at each grant date. No stock options were granted during the three months ended May 3, 2014 and May 4, 2013, and no stock options were outstanding at May 3, 2014. |
Asset_Impairment_and_Store_Clo
Asset Impairment and Store Closing Charges | 3 Months Ended |
3-May-14 | |
Asset Impairment and Store Closing Charges | ' |
Asset Impairment and Store Closing Charges | ' |
Asset Impairment and Store Closing Charges | |
During the three months ended May 4, 2013, the Company recorded a pretax charge of $6.5 million for asset impairment and store closing costs. The charge was for the write-down of an operating property and certain cost method investments. |
Earnings_Per_Share_Data
Earnings Per Share Data | 3 Months Ended | ||||||||
3-May-14 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share Data | ' | ||||||||
Earnings Per Share Data | |||||||||
The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data). | |||||||||
Three Months Ended | |||||||||
May 3, | May 4, | ||||||||
2014 | 2013 | ||||||||
Net income | $ | 111,683 | $ | 117,210 | |||||
Weighted average shares of common stock outstanding | 43,651 | 46,936 | |||||||
Basic and diluted earnings per share | $ | 2.56 | $ | 2.5 | |||||
The Company maintains a capital structure in which common stock is the only security issued and outstanding, and there were no preferred stocks, stock options, other dilutive securities or potentially dilutive securities issued or outstanding during the three months ended May 3, 2014 and May 4, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
3-May-14 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
Various legal proceedings, in the form of lawsuits and claims, which occur in the normal course of business, are pending against the Company and its subsidiaries. In the opinion of management, disposition of these matters is not expected to have a material adverse effect on the Company’s financial position, cash flows or results of operations. | |
At May 3, 2014, letters of credit totaling $35.4 million were issued under the Company’s revolving credit facility. |
Benefit_Plans
Benefit Plans | 3 Months Ended | ||||||||
3-May-14 | |||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||
Benefit Plans | ' | ||||||||
Benefit Plans | |||||||||
The Company has an unfunded, nonqualified defined benefit plan (“Pension Plan”) for its officers. The Pension Plan is noncontributory and provides benefits based on years of service and compensation during employment. Pension expense is determined using various actuarial cost methods to estimate the total benefits ultimately payable to officers and allocates this cost to service periods. The actuarial assumptions used to calculate pension costs are reviewed annually. The Company made contributions to the Pension Plan of $0.6 million during the three months ended May 3, 2014. The Company expects to make contributions to the Pension Plan of approximately $2.2 million for the remainder of fiscal 2014. | |||||||||
The components of net periodic benefit costs are as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
May 3, | May 4, | ||||||||
2014 | 2013 | ||||||||
Components of net periodic benefit costs: | |||||||||
Service cost | $ | 1,099 | $ | 1,059 | |||||
Interest cost | 1,911 | 1,696 | |||||||
Net actuarial loss | 665 | 753 | |||||||
Amortization of prior service cost | — | 24 | |||||||
Plan curtailment gain | — | (1,480 | ) | ||||||
Net periodic benefit costs | $ | 3,675 | $ | 2,052 | |||||
Net periodic benefit costs are included in selling, general and administrative expenses. |
Revolving_Credit_Agreement
Revolving Credit Agreement | 3 Months Ended |
3-May-14 | |
Line of Credit Facility [Abstract] | ' |
Revolving Credit Agreement | ' |
Revolving Credit Agreement | |
At May 3, 2014, the Company maintained a $1.0 billion revolving credit facility (“credit agreement”) with J. P. Morgan Securities LLC (“JPMorgan”) and Wells Fargo Capital Finance, LLC as the lead agents for various banks, secured by the inventory of certain Dillard’s, Inc. operating subsidiaries. The credit agreement expires July 1, 2018. | |
Borrowings under the credit agreement accrue interest at either JPMorgan’s Base Rate or LIBOR plus 1.5% (1.65% at May 3, 2014) subject to certain availability thresholds as defined in the credit agreement. | |
Limited to 90% of the inventory of certain Company subsidiaries, availability for borrowings and letter of credit obligations under the credit agreement was $1.0 billion at May 3, 2014. No borrowings were outstanding at May 3, 2014, and letters of credit totaling $35.4 million were issued under this credit agreement leaving unutilized availability under the facility of approximately $965 million at May 3, 2014. There are no financial covenant requirements under the credit agreement provided availability exceeds $100 million. The Company pays an annual commitment fee to the banks of 0.25% of the committed amount less outstanding borrowings and letters of credit. |
Stock_Repurchase_Programs
Stock Repurchase Programs | 3 Months Ended |
3-May-14 | |
Stock Repurchase Programs | ' |
Stock Repurchase Programs | ' |
Stock Repurchase Programs | |
All repurchases of the Company’s Class A Common Stock below were made at the market price at the trade date. Accordingly, all amounts paid to reacquire these shares were allocated to Treasury Stock. | |
November 2013 Stock Plan | |
In November 2013, the Company’s Board of Directors authorized the Company to repurchase up to $250 million of the Company’s Class A Common Stock under an open-ended stock plan (“November 2013 Stock Plan”). This authorization permits the Company to repurchase its Class A Common Stock in the open market, pursuant to preset trading plans meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934 (“Exchange Act”) or through privately negotiated transactions. The November 2013 Stock Plan has no expiration date. During the three months ended May 3, 2014, the Company repurchased 0.3 million shares for $25.5 million at an average price of $89.82 per share. At May 3, 2014, $224.5 million of authorization remained under the November 2013 Stock Plan. | |
March 2013 Stock Plan | |
In March 2013, the Company’s Board of Directors authorized the Company to repurchase up to $250 million of the Company’s Class A Common Stock under an open-ended stock plan (“March 2013 Stock Plan”). This authorization permitted the Company to repurchase its Class A Common Stock in the open market, pursuant to preset trading plans meeting the requirements of Rule 10b5-1 under the Exchange Act or through privately negotiated transactions. During the three months ended May 3, 2014 and May 4, 2013, the Company repurchased 0.5 million and 0.3 million shares for $40.4 million and $22.7 million at an average price of $89.04 and $79.04 per share, respectively. At May 3, 2014, no authorization remained under the March 2013 Stock Plan. | |
2012 Stock Plan | |
In February 2012, the Company’s Board of Directors authorized the Company to repurchase up to $250 million of the Company’s Class A Common Stock under an open-ended stock plan (“2012 Stock Plan”). This authorization permitted the Company to repurchase its Class A Common Stock in the open market, pursuant to preset trading plans meeting the requirements of Rule 10b5-1 under the Exchange Act or through privately negotiated transactions. During the three months ended May 4, 2013, the Company repurchased 1.2 million shares for $92.0 million at an average price of $79.14 per share, which completed the authorization under the 2012 Stock Plan. |
Income_Taxes
Income Taxes | 3 Months Ended |
3-May-14 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
During the three months ended May 3, 2014, income tax expense differed from what would be computed using the statutory federal tax rate primarily due to the effect of state and local income taxes. During the three months ended May 4, 2013, income tax expense differed from what would be computed using the statutory federal tax rate primarily due to the effect of state and local income taxes partially offset by tax benefits recognized for federal tax credits. |
Reclassifications_from_Accumul
Reclassifications from Accumulated Other Comprehensive Loss ("AOCL") | 3 Months Ended | ||||||||||
3-May-14 | |||||||||||
Reclassifications from Accumulated Other Comprehensive Loss ("AOCL") | ' | ||||||||||
Reclassifications from Accumulated Other Comprehensive Loss ("AOCL") | ' | ||||||||||
Reclassifications from Accumulated Other Comprehensive Loss (“AOCL”) | |||||||||||
Reclassifications from AOCL are summarized as follows (in thousands): | |||||||||||
Amount | |||||||||||
Reclassified | |||||||||||
from AOCL | |||||||||||
Three Months Ended | Affected Line Item in the Statement Where Net Income Is Presented | ||||||||||
Details about AOCL Components | 3-May-14 | 4-May-13 | |||||||||
Defined benefit pension plan items | |||||||||||
Amortization of prior service cost | $ | — | $ | 24 | -1 | ||||||
Amortization of actuarial losses | 665 | 753 | -1 | ||||||||
Plan curtailment gain | — | 7,331 | -2 | ||||||||
665 | 8,108 | Total before tax | |||||||||
255 | 3,098 | Income tax expense | |||||||||
$ | 410 | $ | 5,010 | Total net of tax | |||||||
_______________________________ | |||||||||||
(1) These items are included in the computation of net periodic pension cost. See Note 7, Benefit Plans, for additional information. | |||||||||||
(2) The excess of the pension liability for the curtailed plan over the amount shown here is included in the computation of net periodic pension cost. See Note 7, Benefit Plans, for additional information. |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Loss | 3 Months Ended | ||||||||
3-May-14 | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||
Changes in Accumulated Other Comprehensive Loss | ' | ||||||||
Changes in Accumulated Other Comprehensive Loss | |||||||||
Changes in AOCL by component (net of tax) are summarized as follows (in thousands): | |||||||||
Defined Benefit | |||||||||
Pension Plan Items | |||||||||
Three Months Ended | |||||||||
3-May-14 | 4-May-13 | ||||||||
Beginning balance | $ | 24,074 | $ | 31,275 | |||||
Other comprehensive income before reclassifications | — | — | |||||||
Amounts reclassified from AOCL | (410 | ) | (5,010 | ) | |||||
Net other comprehensive income | (410 | ) | (5,010 | ) | |||||
Ending balance | $ | 23,664 | $ | 26,265 | |||||
Gain_on_Disposal_of_Assets
Gain on Disposal of Assets | 3 Months Ended |
3-May-14 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Gain on Disposal of Assets | ' |
Gain on Disposal of Assets | |
During the three months ended May 4, 2013, the Company received proceeds of $15.7 million from the sale of its investment in Acumen Brands, an eCommerce company based in Fayetteville, Arkansas. The sale resulted in a gain of $11.7 million that was recorded in gain on disposal of assets. | |
During the three months ended May 4, 2013, the Company also received proceeds of $1.7 million from the sale of two former retail stores located in Oklahoma City, Oklahoma and Pasadena, Texas that were held for sale, resulting in a gain of $0.6 million that was recorded in gain on disposal of assets. |
Fair_Value_Disclosures
Fair Value Disclosures | 3 Months Ended | ||||||||||||||||
3-May-14 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||||
Fair Value Disclosures | |||||||||||||||||
The estimated fair values of financial instruments which are presented herein have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of amounts the Company could realize in a current market exchange. | |||||||||||||||||
The fair value of the Company’s long-term debt and subordinated debentures is based on market prices or dealer quotes. | |||||||||||||||||
The fair value of the Company’s cash and cash equivalents, accounts receivable and other short-term borrowings approximates their carrying values at May 3, 2014 due to the short-term maturities of these instruments. The fair value of the Company’s long-term debt at May 3, 2014 was approximately $673 million. The carrying value of the Company’s long-term debt at May 3, 2014 was $615 million. The fair value of the Company’s subordinated debentures at May 3, 2014 was approximately $206 million. The carrying value of the Company’s subordinated debentures at May 3, 2014 was $200 million. | |||||||||||||||||
During the three months ended May 4, 2013, the Company recognized an impairment charge of $5.4 million on certain cost method investments. The Company evaluated all factors and determined that an other-than-temporary impairment charge was necessary. These investments are recorded in other assets on the balance sheet. | |||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | |||||||||||||||||
The Financial Accounting Standards Board's ("FASB") accounting guidance utilizes a fair value hierarchy that prioritizes the inputs to the valuation techniques used to measure fair value into three broad levels: | |||||||||||||||||
• | Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities | ||||||||||||||||
•Level 2: Inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active | |||||||||||||||||
• | Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions | ||||||||||||||||
Basis of Fair Value Measurements | |||||||||||||||||
Fair Value | Quoted Prices In Active | Significant Other | Significant | ||||||||||||||
of Assets | Markets for | Observable | Unobservable | ||||||||||||||
Identical Items | Inputs | Inputs | |||||||||||||||
(in thousands) | (Liabilities) | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Long-lived assets held for use | |||||||||||||||||
As of May 4, 2013 | $ | 3,000 | $ | — | $ | 3,000 | $ | — | |||||||||
Long-lived assets held for use | |||||||||||||||||
During the three months ended May 4, 2013, a long-lived asset group held for use was written down to its fair value of $3.0 million, resulting in an impairment charge of $1.2 million, which was charged against earnings during the period. The inputs used to calculate the fair value of these long-lived assets held for use were based upon an offer to purchase the property. |
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 3 Months Ended |
3-May-14 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Recently Issued Accounting Standards | ' |
Recently Issued Accounting Standards | |
Presentation of Discontinued Operations | |
In April 2014, the FASB issued Accounting Standards Update (“ASU”) 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 stipulates that the disposal of a component of an entity is to be reported in discontinued operations only if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The pronouncement also removed the conditions that (a) the operations and cash flows of the component have been (or will be) eliminated from the ongoing operations of the entity as a result of the disposal transaction and (b) the entity will not have any significant continuing involvement in the operations of the component after the disposal transaction. The Company adopted this guidance as of the beginning of its fiscal year 2014. The adoption of this guidance had no impact on the Company's condensed consolidated financial statements in the first quarter of 2014. | |
Revenue from Contracts with Customers | |
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. This update will be effective for the Company retrospectively beginning in the first quarter of fiscal 2017 with early adoption not permitted. The Company is currently assessing the impact of this update on its operations. |
Business_Segments_Tables
Business Segments (Tables) | 3 Months Ended | ||||||||||||
3-May-14 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Schedule of segment information | ' | ||||||||||||
The following tables summarize certain segment information, including the reconciliation of those items to the Company’s consolidated operations: | |||||||||||||
(in thousands of dollars) | Retail | Construction | Consolidated | ||||||||||
Operations | |||||||||||||
Three Months Ended May 3, 2014: | |||||||||||||
Net sales from external customers | $ | 1,539,193 | $ | 12,121 | $ | 1,551,314 | |||||||
Gross profit | 611,372 | 718 | 612,090 | ||||||||||
Depreciation and amortization | 61,885 | 74 | 61,959 | ||||||||||
Interest and debt expense (income), net | 15,854 | (13 | ) | 15,841 | |||||||||
Income before income taxes and income on and equity in losses of joint ventures | 173,236 | (796 | ) | 172,440 | |||||||||
Income on and equity in losses of joint ventures | 203 | — | 203 | ||||||||||
Total assets | 4,268,889 | 24,733 | 4,293,622 | ||||||||||
Three Months Ended May 4, 2013: | |||||||||||||
Net sales from external customers | $ | 1,530,000 | $ | 19,136 | $ | 1,549,136 | |||||||
Gross profit | 609,889 | 1,462 | 611,351 | ||||||||||
Depreciation and amortization | 65,057 | 59 | 65,116 | ||||||||||
Interest and debt expense (income), net | 16,330 | (20 | ) | 16,310 | |||||||||
Income before income taxes and income on and equity in losses of joint ventures | 179,899 | 322 | 180,221 | ||||||||||
Income on and equity in losses of joint ventures | 409 | — | 409 | ||||||||||
Total assets | 4,230,148 | 31,012 | 4,261,160 | ||||||||||
Earnings_Per_Share_Data_Tables
Earnings Per Share Data (Tables) | 3 Months Ended | ||||||||
3-May-14 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of computation of basic and diluted earnings per share | ' | ||||||||
The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data). | |||||||||
Three Months Ended | |||||||||
May 3, | May 4, | ||||||||
2014 | 2013 | ||||||||
Net income | $ | 111,683 | $ | 117,210 | |||||
Weighted average shares of common stock outstanding | 43,651 | 46,936 | |||||||
Basic and diluted earnings per share | $ | 2.56 | $ | 2.5 | |||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 3 Months Ended | ||||||||
3-May-14 | |||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||
Schedule of components of net periodic benefit costs | ' | ||||||||
The components of net periodic benefit costs are as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
May 3, | May 4, | ||||||||
2014 | 2013 | ||||||||
Components of net periodic benefit costs: | |||||||||
Service cost | $ | 1,099 | $ | 1,059 | |||||
Interest cost | 1,911 | 1,696 | |||||||
Net actuarial loss | 665 | 753 | |||||||
Amortization of prior service cost | — | 24 | |||||||
Plan curtailment gain | — | (1,480 | ) | ||||||
Net periodic benefit costs | $ | 3,675 | $ | 2,052 | |||||
Net periodic benefit costs are included in selling, general and administrative expenses. |
Reclassifications_from_Accumul1
Reclassifications from Accumulated Other Comprehensive Loss ("AOCL") (Tables) | 3 Months Ended | ||||||||||
3-May-14 | |||||||||||
Reclassifications from Accumulated Other Comprehensive Loss ("AOCL") | ' | ||||||||||
Summary of reclassifications from AOCL | ' | ||||||||||
Reclassifications from AOCL are summarized as follows (in thousands): | |||||||||||
Amount | |||||||||||
Reclassified | |||||||||||
from AOCL | |||||||||||
Three Months Ended | Affected Line Item in the Statement Where Net Income Is Presented | ||||||||||
Details about AOCL Components | 3-May-14 | 4-May-13 | |||||||||
Defined benefit pension plan items | |||||||||||
Amortization of prior service cost | $ | — | $ | 24 | -1 | ||||||
Amortization of actuarial losses | 665 | 753 | -1 | ||||||||
Plan curtailment gain | — | 7,331 | -2 | ||||||||
665 | 8,108 | Total before tax | |||||||||
255 | 3,098 | Income tax expense | |||||||||
$ | 410 | $ | 5,010 | Total net of tax | |||||||
_______________________________ | |||||||||||
(1) These items are included in the computation of net periodic pension cost. See Note 7, Benefit Plans, for additional information. | |||||||||||
(2) The excess of the pension liability for the curtailed plan over the amount shown here is included in the computation of net periodic pension cost. See Note 7, Benefit Plans, for additional information. |
Changes_in_Accumulated_Other_C1
Changes in Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | ||||||||
3-May-14 | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||
Summary of changes in AOCL by component (net of tax) | ' | ||||||||
Changes in AOCL by component (net of tax) are summarized as follows (in thousands): | |||||||||
Defined Benefit | |||||||||
Pension Plan Items | |||||||||
Three Months Ended | |||||||||
3-May-14 | 4-May-13 | ||||||||
Beginning balance | $ | 24,074 | $ | 31,275 | |||||
Other comprehensive income before reclassifications | — | — | |||||||
Amounts reclassified from AOCL | (410 | ) | (5,010 | ) | |||||
Net other comprehensive income | (410 | ) | (5,010 | ) | |||||
Ending balance | $ | 23,664 | $ | 26,265 | |||||
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 3 Months Ended | ||||||||||||||||
3-May-14 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | ' | ||||||||||||||||
The Financial Accounting Standards Board's ("FASB") accounting guidance utilizes a fair value hierarchy that prioritizes the inputs to the valuation techniques used to measure fair value into three broad levels: | |||||||||||||||||
• | Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities | ||||||||||||||||
•Level 2: Inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active | |||||||||||||||||
• | Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions | ||||||||||||||||
Basis of Fair Value Measurements | |||||||||||||||||
Fair Value | Quoted Prices In Active | Significant Other | Significant | ||||||||||||||
of Assets | Markets for | Observable | Unobservable | ||||||||||||||
Identical Items | Inputs | Inputs | |||||||||||||||
(in thousands) | (Liabilities) | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Long-lived assets held for use | |||||||||||||||||
As of May 4, 2013 | $ | 3,000 | $ | — | $ | 3,000 | $ | — | |||||||||
Business_Segments_Details
Business Segments (Details) (USD $) | 3 Months Ended | ||
3-May-14 | 4-May-13 | Feb. 01, 2014 | |
segment | |||
Business Segments | ' | ' | ' |
Number of reportable segments | 2 | ' | ' |
Net sales from external customers | $1,551,314,000 | $1,549,136,000 | ' |
Gross profit | 612,090,000 | 611,351,000 | ' |
Depreciation and amortization | 61,959,000 | 65,116,000 | ' |
Interest and debt expense (income), net | 15,841,000 | 16,310,000 | ' |
Income (loss) before income taxes and income on and equity in losses of joint ventures | 172,440,000 | 180,221,000 | ' |
Income on and equity in losses of joint ventures | 203,000 | 409,000 | ' |
Total assets | 4,293,622,000 | 4,261,160,000 | 4,050,739,000 |
Intersegment revenues | 14,700,000 | 1,700,000 | ' |
Retail operations | ' | ' | ' |
Business Segments | ' | ' | ' |
Number of reportable segments | 1 | ' | ' |
Number of store formats | 1 | ' | ' |
Net sales from external customers | 1,539,193,000 | 1,530,000,000 | ' |
Gross profit | 611,372,000 | 609,889,000 | ' |
Depreciation and amortization | 61,885,000 | 65,057,000 | ' |
Interest and debt expense (income), net | 15,854,000 | 16,330,000 | ' |
Income (loss) before income taxes and income on and equity in losses of joint ventures | 173,236,000 | 179,899,000 | ' |
Income on and equity in losses of joint ventures | 203,000 | 409,000 | ' |
Total assets | 4,268,889,000 | 4,230,148,000 | ' |
Construction | ' | ' | ' |
Business Segments | ' | ' | ' |
Net sales from external customers | 12,121,000 | 19,136,000 | ' |
Gross profit | 718,000 | 1,462,000 | ' |
Depreciation and amortization | 74,000 | 59,000 | ' |
Interest and debt expense (income), net | -13,000 | -20,000 | ' |
Income (loss) before income taxes and income on and equity in losses of joint ventures | -796,000 | 322,000 | ' |
Total assets | $24,733,000 | $31,012,000 | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) | 3 Months Ended | |
3-May-14 | 4-May-13 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Stock options granted during period (in shares) | 0 | 0 |
Total stock options outstanding (in shares) | 0 | ' |
Asset_Impairment_and_Store_Clo1
Asset Impairment and Store Closing Charges (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
Asset Impairment and Store Closing Charges | ' | ' |
Asset impairment and store closing charges | $0 | $6,527 |
Earnings_Per_Share_Data_Detail
Earnings Per Share Data (Details) (USD $) | 3 Months Ended | |
In Thousands, except Share data, unless otherwise specified | 3-May-14 | 4-May-13 |
Earnings Per Share [Abstract] | ' | ' |
Net Income | $111,683 | $117,210 |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 43,651,000 | 46,936,000 |
Earnings Per Share, Basic and Diluted | $2.56 | $2.50 |
Total dilutive and potentially dilutive securities outstanding (in shares) | 0 | 0 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3-May-14 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Outstanding letters of credit under the Company's revolving credit facility | $35.40 |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 3 Months Ended | |
3-May-14 | 4-May-13 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Employer contributions to pension plan | $600,000 | ' |
Expected employer contributions to pension plan for remainder of current fiscal year | 2,200,000 | ' |
Components of net periodic benefit costs: | ' | ' |
Service cost | 1,099,000 | 1,059,000 |
Interest cost | 1,911,000 | 1,696,000 |
Net actuarial loss | 665,000 | 753,000 |
Amortization of prior service cost | 0 | 24,000 |
Plan curtailment gain | 0 | -1,480,000 |
Net periodic benefit costs | $3,675,000 | $2,052,000 |
Revolving_Credit_Agreement_Det
Revolving Credit Agreement (Details) (USD $) | 3 Months Ended |
3-May-14 | |
Credit agreement | ' |
Revolving credit facility | $1,000,000,000 |
Interest rate at end of period (as a percent) | 1.65% |
Limit on availability for borrowings and letter of credit obligations, expressed as a percentage of inventory of certain subsidiaries | 90.00% |
Availability for borrowings and letter of credit obligations | 1,000,000,000 |
Outstanding borrowings under the credit facility | 0 |
Letters of credit issued | 35,400,000 |
Unutilized credit facility borrowing capacity | 965,000,000 |
Annual commitment fee (as a percent) | 0.25% |
Minimum | ' |
Credit agreement | ' |
Minimum line of credit availability for no financial covenant requirements | $100,000,000 |
JP Morgan's base rate | ' |
Credit agreement | ' |
Reference rate | 'JPMorganbs Base Rate |
LIBOR | ' |
Credit agreement | ' |
Reference rate | 'LIBOR |
Percentage points added to reference rate | 1.50% |
Stock_Repurchase_Programs_Deta
Stock Repurchase Programs (Details) (USD $) | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | |
Share data in Millions, except Per Share data, unless otherwise specified | Nov. 30, 2013 | 3-May-14 | Mar. 31, 2013 | 3-May-14 | 4-May-13 | Feb. 29, 2012 | 4-May-13 |
November 2013 Stock Plan [Member] | November 2013 Stock Plan [Member] | March 2013 Stock Plan | March 2013 Stock Plan | March 2013 Stock Plan | 2012 Stock Plan | 2012 Stock Plan | |
Stock Repurchase Programs | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase authorization | $250,000,000 | ' | $250,000,000 | ' | ' | $250,000,000 | ' |
Number of shares repurchased | ' | 0.3 | ' | 0.5 | 0.3 | ' | 1.2 |
Amount of shares repurchased | ' | 25,500,000 | ' | 40,400,000 | 22,700,000 | ' | 92,000,000 |
Average price of shares repurchased (in dollars per share) | ' | $89.82 | ' | $89.04 | $79.04 | ' | $79.14 |
Repurchase of common stock remaining authorization | ' | $224,500,000 | ' | $0 | ' | ' | ' |
Reclassifications_from_Accumul2
Reclassifications from Accumulated Other Comprehensive Loss ("AOCL") (Details) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 | ||
Reclassifications from accumulated other comprehensive loss | ' | ' | ||
Amortization of prior service cost | $0 | $24 | ||
Amortization of actuarial losses | 665 | 753 | ||
Income before income taxes and income on and equity in losses of joint ventures | -172,440 | -180,221 | ||
Income tax expense | -60,960 | -63,420 | ||
Net Income | -111,683 | -117,210 | ||
Defined benefit pension plan | Amount Reclassified from AOCL | ' | ' | ||
Reclassifications from accumulated other comprehensive loss | ' | ' | ||
Amortization of prior service cost | 0 | [1] | 24 | [1] |
Amortization of actuarial losses | 665 | [1] | 753 | [1] |
Plan curtailment gain | 0 | [2] | 7,331 | [2] |
Income before income taxes and income on and equity in losses of joint ventures | 665 | 8,108 | ||
Income tax expense | 255 | 3,098 | ||
Net Income | $410 | $5,010 | ||
[1] | These items are included in the computation of net periodic pension cost. See Note 7, Benefit Plans, for additional information. | |||
[2] | The excess of the pension liability for the curtailed plan over the amount shown here is included in the computation of net periodic pension cost. See Note 7, Benefit Plans, for additional information. |
Changes_in_Accumulated_Other_C2
Changes in Accumulated Other Comprehensive Loss (Details) (USD $) | 3-May-14 | Feb. 01, 2014 | 4-May-13 | 3-May-14 | 4-May-13 |
In Thousands, unless otherwise specified | Defined benefit pension plan | Defined benefit pension plan | |||
Changes in accumulated other comprehensive loss | ' | ' | ' | ' | ' |
Beginning balance | $23,664 | $24,074 | $26,265 | $24,074 | $31,275 |
Other comprehensive income before reclassifications | ' | ' | ' | 0 | 0 |
Amounts reclassified from AOCL | ' | ' | ' | -410 | -5,010 |
Net other comprehensive income | ' | ' | ' | -410 | -5,010 |
Ending balance | $23,664 | $24,074 | $26,265 | $23,664 | $26,265 |
Gain_on_Disposal_of_Assets_Det
Gain on Disposal of Assets (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | 3-May-14 | 4-May-13 |
Gain on disposal of assets | ' | ' |
Proceeds from disposal of assets | $4,609 | $17,511 |
Gain on disposal of assets | 389 | 12,345 |
Sale of investment | ' | ' |
Gain on disposal of assets | ' | ' |
Proceeds from disposal of assets | ' | 15,700 |
Gain on disposal of assets | ' | 11,700 |
Sale of retail store location | ' | ' |
Gain on disposal of assets | ' | ' |
Proceeds from disposal of assets | ' | 1,700 |
Gain on disposal of assets | ' | $600 |
Number of former retail stores sold | ' | 2 |
Fair_Value_Disclosures_Details
Fair Value Disclosures (Details) (USD $) | 3 Months Ended | ||
4-May-13 | 3-May-14 | Feb. 01, 2014 | |
Fair value disclosures | ' | ' | ' |
Subordinated debentures | $200,000,000 | $200,000,000 | $200,000,000 |
Impairment charge on cost method investments | 5,400,000 | ' | ' |
Nonrecurring | ' | ' | ' |
Fair value disclosures | ' | ' | ' |
Impairment charge on long-lived assets held for use | 1,200,000 | ' | ' |
Fair Value of Assets | ' | ' | ' |
Fair value disclosures | ' | ' | ' |
Long-term debt, including current portion, fair value | ' | 673,000,000 | ' |
Subordinated debentures, fair value | ' | 206,000,000 | ' |
Fair Value of Assets | Nonrecurring | ' | ' | ' |
Fair value disclosures | ' | ' | ' |
Long-lived assets held for use | 3,000,000 | ' | ' |
Significant Other Observable Inputs (Level 2) | Nonrecurring | ' | ' | ' |
Fair value disclosures | ' | ' | ' |
Long-lived assets held for use | 3,000,000 | ' | ' |
Carrying value | ' | ' | ' |
Fair value disclosures | ' | ' | ' |
Long-term debt, including current portion | ' | 615,000,000 | ' |
Subordinated debentures | ' | $200,000,000 | ' |