Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 30, 2016 | Feb. 27, 2016 | Aug. 01, 2015 | |
Entity Registrant Name | DILLARDS INC | ||
Entity Central Index Key | 28,917 | ||
Document Type | 10-K | ||
Document Period End Date | Jan. 30, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --01-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 3,158,176,418 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Common Stock Class A | |||
Entity Common Stock, Shares Outstanding | 31,909,989 | ||
Common Stock Class B | |||
Entity Common Stock, Shares Outstanding | 4,010,401 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 202,869 | $ 403,752 |
Restricted cash | 0 | 7,346 |
Accounts receivable | 47,138 | 56,510 |
Merchandise inventories | 1,374,505 | 1,374,481 |
Other current assets | 44,371 | 46,353 |
Total current assets | 1,668,883 | 1,888,442 |
Property and equipment: | ||
Land and land improvements | 64,313 | 67,918 |
Buildings and leasehold improvements | 3,106,014 | 3,083,734 |
Furniture, fixtures and equipment | 1,130,471 | 1,183,045 |
Buildings under construction | 398 | 21,867 |
Buildings and equipment under capital leases | 23,648 | 14,555 |
Less accumulated depreciation and amortization | (2,385,012) | (2,341,948) |
Property and equipment, net | 1,939,832 | 2,029,171 |
Other assets | 256,910 | 252,458 |
Total assets | 3,865,625 | 4,170,071 |
Current liabilities: | ||
Trade accounts payable and accrued expenses | 691,310 | 730,422 |
Current portion of capital lease obligations | 3,284 | 840 |
Federal and state income taxes | 56,622 | 69,382 |
Total current liabilities | 751,216 | 800,644 |
Long-term debt | 614,785 | 614,785 |
Capital lease obligations | 7,269 | 5,919 |
Other liabilities | 238,980 | 250,455 |
Deferred income taxes | 258,070 | 278,998 |
Subordinated debentures | $ 200,000 | $ 200,000 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Additional paid-in capital | $ 940,796 | $ 937,993 |
Accumulated other comprehensive loss | (17,118) | (31,029) |
Retained earnings | 3,994,211 | 3,734,891 |
Less treasury stock, at cost, Class A—87,857,159 and 82,550,422 shares | (3,123,822) | (2,623,822) |
Total stockholders' equity | 1,795,305 | 2,019,270 |
Total liabilities and stockholders' equity | 3,865,625 | 4,170,071 |
Common stock Class A | ||
Stockholders' equity: | ||
Common stock | 1,198 | 1,197 |
Common stock Class B (convertible) | ||
Stockholders' equity: | ||
Common stock | $ 40 | $ 40 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Jan. 30, 2016 | Jan. 31, 2015 |
Treasury stock, at cost, Class A, shares | 87,857,159 | 82,550,422 |
Common stock Class A | ||
Common stock, shares issued | 119,767,148 | 119,731,790 |
Common stock, shares outstanding | 31,909,989 | 37,181,368 |
Common stock Class B (convertible) | ||
Common stock, shares issued | 4,010,401 | 4,010,929 |
Common stock, shares outstanding | 4,010,401 | 4,010,929 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Income Statement [Abstract] | |||
Net sales | $ 6,595,626 | $ 6,621,054 | $ 6,531,647 |
Service charges and other income | 158,919 | 159,075 | 160,130 |
Total net sales, service charges and other income | 6,754,545 | 6,780,129 | 6,691,777 |
Cost of sales | 4,350,805 | 4,272,605 | 4,223,715 |
Selling, general and administrative expenses | 1,669,916 | 1,663,859 | 1,632,036 |
Depreciation and amortization | 250,011 | 250,683 | 255,490 |
Rentals | 26,732 | 26,977 | 26,833 |
Interest and debt expense, net | 60,923 | 61,306 | 64,505 |
Gain on disposal of assets | (12,626) | (6,069) | (12,379) |
Asset impairment and store closing charges | 0 | 0 | 5,353 |
Income before income taxes and income on and equity in losses of joint ventures | 408,784 | 510,768 | 496,224 |
Income taxes | 140,770 | 179,480 | 173,400 |
Income on and equity in losses of joint ventures | 1,356 | 565 | 847 |
Net income | $ 269,370 | $ 331,853 | $ 323,671 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 6.91 | $ 7.79 | $ 7.10 |
Diluted (in dollars per share) | $ 6.91 | $ 7.79 | $ 7.10 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 269,370 | $ 331,853 | $ 323,671 |
Other comprehensive income (loss): | |||
Amortization of retirement plan and other retiree benefit adjustments (net of tax of $8,574, $(4,235) and $4,452) | 13,911 | (6,955) | 7,201 |
Comprehensive income | $ 283,281 | $ 324,898 | $ 330,872 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Amortization of retirement plan and other retiree benefit adjustments, tax | $ 8,574 | $ (4,235) | $ 4,452 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock | Common Stock Class ACommon Stock | Common Stock Class BCommon Stock |
Net income | $ 323,671 | $ 323,671 | |||||
Balance at Feb. 02, 2013 | 1,970,175 | $ 932,495 | $ (31,275) | 3,099,566 | $ (2,031,848) | $ 1,197 | $ 40 |
Increase (Decrease) in Stockholders' Equity | |||||||
Other comprehensive income (loss) | 7,201 | 7,201 | |||||
Issuance of 34,830, 24,864 and 30,452 shares under stock option and stock bonus plans during the years 2014, 2013 and 2012, respectively | 2,713 | 2,713 | 0 | ||||
Purchase of 5,306,737, 2,780,743 and 3,851,516 shares of treasury stock during the years 2014, 2013 and 2012, respectively | (301,566) | (301,566) | |||||
Cash dividends declared: | |||||||
Common stock, $0.24, $0.22, and $5.20 per share during the years 2014, 2013 and 2012, respectively | (9,997) | (9,997) | |||||
Balance at Feb. 01, 2014 | 1,992,197 | 935,208 | (24,074) | 3,413,240 | (2,333,414) | 1,197 | 40 |
Net income | 331,853 | 331,853 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Other comprehensive income (loss) | (6,955) | (6,955) | |||||
Issuance of 34,830, 24,864 and 30,452 shares under stock option and stock bonus plans during the years 2014, 2013 and 2012, respectively | 2,785 | 2,785 | |||||
Purchase of 5,306,737, 2,780,743 and 3,851,516 shares of treasury stock during the years 2014, 2013 and 2012, respectively | (290,408) | (290,408) | |||||
Cash dividends declared: | |||||||
Common stock, $0.24, $0.22, and $5.20 per share during the years 2014, 2013 and 2012, respectively | (10,202) | (10,202) | |||||
Balance at Jan. 31, 2015 | 2,019,270 | 937,993 | (31,029) | 3,734,891 | (2,623,822) | 1,197 | 40 |
Net income | 269,370 | 269,370 | |||||
Increase (Decrease) in Stockholders' Equity | |||||||
Other comprehensive income (loss) | 13,911 | 13,911 | |||||
Issuance of 34,830, 24,864 and 30,452 shares under stock option and stock bonus plans during the years 2014, 2013 and 2012, respectively | 2,804 | 2,803 | |||||
Purchase of 5,306,737, 2,780,743 and 3,851,516 shares of treasury stock during the years 2014, 2013 and 2012, respectively | (500,000) | (500,000) | |||||
Cash dividends declared: | |||||||
Common stock, $0.24, $0.22, and $5.20 per share during the years 2014, 2013 and 2012, respectively | (10,050) | (10,050) | |||||
Balance at Jan. 30, 2016 | $ 1,795,305 | $ 940,796 | $ (17,118) | $ 3,994,211 | $ (3,123,822) | $ 1,198 | $ 40 |
Consolidated Statements of Sto8
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Issuance of shares under stock option and stock bonus plans, shares | 34,830 | 24,864 | 30,452 |
Purchase and retirement of shares under stock option plan, shares | 0 | 0 | 0 |
Purchase of shares of treasury stock, shares | 5,306,737 | 2,780,743 | 3,851,516 |
Cash dividends declared: common stock, per share (in dollars per share) | $ 0.26 | $ 0.24 | $ 0.22 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Operating activities: | |||
Net income | $ 269,370 | $ 331,853 | $ 323,671 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization of property and other deferred cost | 252,147 | 252,334 | 257,237 |
Deferred income taxes | (35,975) | (30,927) | (7,329) |
Gain on disposal of assets | (12,626) | (6,069) | (12,379) |
Asset impairment and store closing charges | 0 | 0 | 5,353 |
Changes in operating assets and liabilities: | |||
Decrease (increase) in accounts receivable | 9,372 | (25,670) | 679 |
Increase in merchandise inventories | (24) | (29,160) | (50,740) |
Decrease (increase) in other current assets | 2,911 | 1,406 | (4,272) |
Decrease in other assets | 2,939 | 1,031 | 3,810 |
(Decrease) increase in trade accounts payable and accrued expenses and other liabilities | (33,702) | 104,923 | (21,752) |
(Decrease) increase in income taxes payable | (4,186) | 11,868 | 7,479 |
Net cash provided by operating activities | 450,226 | 611,589 | 501,757 |
Investing activities: | |||
Purchase of property and equipment | (165,788) | (151,888) | (94,923) |
Proceeds from disposal of assets | 25,503 | 14,767 | 18,295 |
Increase (Decrease) in Restricted Cash | 7,346 | (7,346) | 0 |
Distribution from joint venture | 0 | 1,055 | 0 |
Net cash used in investing activities | (132,939) | (143,412) | (76,628) |
Financing activities: | |||
Principal payments on long-term debt and capital lease obligations | (5,299) | (784) | (1,691) |
Cash dividends paid | (10,008) | (10,367) | (7,361) |
Purchase of treasury stock | (500,000) | (290,408) | (301,566) |
Issuance cost of line of credit | (2,863) | 0 | (1,437) |
Net cash used in financing activities | (518,170) | (301,559) | (312,055) |
(Decrease) increase in cash and cash equivalents | (200,883) | 166,618 | 113,074 |
Cash and cash equivalents, beginning of year | 403,752 | 237,134 | 124,060 |
Cash and cash equivalents, end of year | 202,869 | 403,752 | 237,134 |
Non-cash transactions: | |||
Accrued capital expenditures | 10,909 | 12,051 | 9,775 |
Stock awards | 2,803 | 2,785 | 2,713 |
Capital Lease Obligations Incurred | $ 9,093 | $ 0 | $ 0 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jan. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business —Dillard's, Inc. ("Dillard's" or the "Company") operates retail department stores, located primarily in the southeastern, southwestern and midwestern areas of the United States, and a general contracting construction company based in Little Rock, Arkansas. The Company's fiscal year ends on the Saturday nearest January 31 of each year. Fiscal years 2015, 2014 and 2013 ended on January 30, 2016, January 31, 2015 and February 1, 2014, respectively, and each included 52 weeks. Consolidation —The accompanying consolidated financial statements include the accounts of Dillard's, Inc. and its wholly owned subsidiaries. Intercompany accounts and transactions are eliminated in consolidation. Investments in and advances to joint ventures are accounted for by the equity method where the Company does not have control. Use of Estimates —The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include inventories, sales return, self-insured accruals, future cash flows for impairment analysis, pension discount rate and taxes. Actual results could differ from those estimates. Seasonality —The Company's business is highly seasonal, and historically the Company has realized a significant portion of its sales, net income and cash flow in the second half of the fiscal year, attributable to the impact of the back-to-school selling season in the third quarter and the holiday selling season in the fourth quarter. Additionally, working capital requirements fluctuate during the year, increasing in the third quarter in anticipation of the holiday season. Cash Equivalents —The Company considers all highly liquid investments with an original maturity of 3 months or less when purchased or certificates of deposit with no early withdrawal penalty to be cash equivalents. The Company considers receivables from charge card companies as cash equivalents because they settle the balances within 2 to 3 days. Restricted Cash —Restricted cash consists of cash proceeds from the sale of property held in escrow for the acquisition of replacement property under like-kind exchange agreements. The escrow accounts are administered by an intermediary. Pursuant to the like-kind exchange agreements, the cash remains restricted for a maximum of 180 days from the date of the property sale pending the acquisition of replacement property. Changes in restricted cash balances are reflected as an investment activity in the accompanying Consolidated Statements of Cash Flows. Accounts Receivable —Accounts receivable primarily consists of construction receivables of CDI and the monthly settlement with Wells Fargo for Dillard's share of revenue from the long-term marketing and servicing alliance. Construction receivables are based on amounts billed to customers. The Company provides any allowance for doubtful accounts considered necessary based upon a review of outstanding receivables, historical collection information and existing economic conditions. Accounts receivable are ordinarily due 30 days after the issuance of the invoice. Contract retentions are due 30 days after completion of the project and acceptance by the owner. Accounts that are past due more than 120 days are considered delinquent. Delinquent receivables are written off based on individual credit evaluation and specific circumstances of the customer. Merchandise Inventories —Approximately 96% of the Company's inventories are valued at the lower of cost or market using the last-in, first-out ("LIFO") retail inventory method. Under the retail inventory method, the valuation of inventories at cost and the resulting gross margins are calculated by applying a calculated cost to retail ratio to the retail value of inventories. The retail inventory method is an averaging method that is widely used in the retail industry due to its practicality. Inherent in the retail inventory method calculation are certain significant management judgments including, among others, merchandise markon, markups, and markdowns, which significantly impact the ending inventory valuation at cost as well as the resulting gross margins. During periods of deflation, inventory values on the first-in, first-out ("FIFO") retail inventory method may be lower than the LIFO retail inventory method. Additionally, inventory values at LIFO cost may be in excess of net realizable value. At January 30, 2016 and January 31, 2015, merchandise inventories valued at LIFO, including adjustments as necessary to record inventory at the lower of cost or market, approximated the cost of such inventories using the FIFO retail inventory method. The application of the LIFO retail inventory method did not result in the recognition of any LIFO charges or credits affecting cost of sales for fiscal 2015, 2014 or 2013. The remaining 4% of the inventories are valued at the lower of cost or market using the average cost or specific identified cost methods. The Company regularly records a provision for estimated shrinkage, thereby reducing the carrying value of merchandise inventory. Complete physical inventories of all of the Company's stores and warehouses are performed no less frequently than annually, with the recorded amount of merchandise inventory being adjusted to coincide with these physical counts. Property and Equipment —Property and equipment owned by the Company is stated at cost, which includes related interest costs incurred during periods of construction, less accumulated depreciation and amortization. Interest capitalized during fiscal 2015 and 2014 was $2.1 million and $1.7 million , respectively, and was immaterial during fiscal 2013. For financial reporting purposes, depreciation is computed by the straight-line method over estimated useful lives: Buildings and leasehold improvements 20 - 40 years Furniture, fixtures and equipment 3 - 10 years Properties leased by the Company under lease agreements which are determined to be capital leases are stated at an amount equal to the present value of the minimum lease payments during the lease term, less accumulated amortization. The assets under capital leases and leasehold improvements under operating leases are amortized on the straight-line method over the shorter of their useful lives or the related lease terms. The provision for amortization of leased properties is included in depreciation and amortization expense. Included in property and equipment as of January 30, 2016 are assets held for sale in the amount of $4.0 million . During fiscal 2015, 2014 and 2013, the Company realized gains on the disposal of property and equipment of $12.6 million , $6.4 million and $0.6 million , respectively. Depreciation expense on property and equipment was $250 million , $251 million and $255 million for fiscal 2015, 2014 and 2013, respectively. Long-Lived Assets —Impairment losses are required to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amount. In the evaluation of the fair value and future benefits of long-lived assets, the Company performs an analysis of the anticipated undiscounted future net cash flows of the related long-lived assets. This analysis is performed at the store unit level. If the carrying value of the related asset exceeds the undiscounted cash flows, the carrying value is reduced to its fair value. Various factors including future sales growth and profit margins are included in this analysis. Management believes at this time that the carrying value and useful lives continue to be appropriate. Other Assets —Other assets include the deferred charge related to the REIT Transaction of $184.7 million and $191.8 million at January 30, 2016 and January 31, 2015, respectively. Other assets also include investments accounted for by the equity and cost methods. During fiscal 2013, the Company received proceeds of $15.7 million from the sale of its investment in Acumen, resulting in a gain of $11.7 million that was recorded in gain on disposal of assets. Vendor Allowances —The Company receives concessions from its vendors through a variety of programs and arrangements, including cooperative advertising and margin maintenance programs. The Company has agreements in place with each vendor setting forth the specific conditions for each allowance or payment. These agreements range in periods from a few days to up to a year. If the payment is a reimbursement for costs incurred, it is offset against those related costs; otherwise, it is treated as a reduction to the cost of the merchandise. Amounts of vendor concessions are recorded only when an agreement has been reached with the vendor and the collection of the concession is deemed probable. For cooperative advertising programs, the Company generally offsets the allowances against the related advertising expense when incurred. Many of these programs require proof-of-advertising to be provided to the vendor to support the reimbursement of the incurred cost. Programs that do not require proof-of-advertising are monitored to ensure that the allowance provided by each vendor is a reimbursement of costs incurred to advertise for that particular vendor. If the allowance exceeds the advertising costs incurred on a vendor-specific basis, then the excess allowance from the vendor is recorded as a reduction of merchandise cost for that vendor. Margin maintenance allowances are credited directly to cost of purchased merchandise in the period earned according to the agreement with the vendor. Under the retail method of accounting for inventory, a portion of these allowances reduces cost of goods sold and a portion reduces the carrying value of merchandise inventory. Insurance Accruals —The Company's consolidated balance sheets include liabilities with respect to self-insured workers' compensation and general liability claims. The Company's self-insured retention is insured through a wholly-owned captive insurance subsidiary. The Company estimates the required liability of such claims, utilizing an actuarial method, based upon various assumptions, which include, but are not limited to, the Company's historical loss experience, projected loss development factors, actual payroll and other data. The required liability is also subject to adjustment in the future based upon the changes in claims experience, including changes in the number of incidents (frequency) and changes in the ultimate cost per incident (severity). These insurance accruals are recorded in trade accounts payable and accrued expenses and other liabilities on the consolidated balance sheets. Operating Leases —The Company leases retail stores, office space and equipment under operating leases. Many store leases contain construction allowance reimbursements by landlords, rent holidays, rent escalation clauses and/or contingent rent provisions. The Company recognizes the related rental expense on a straight-line basis over the lease term and records the difference between the amounts charged to expense and the rent paid as a deferred rent liability. To account for construction allowance reimbursements from landlords and rent holidays, the Company records a deferred rent liability in other liabilities on the consolidated balance sheets and amortizes the deferred rent over the lease term, as a reduction to rent expense on the consolidated income statements. For leases containing rent escalation clauses, the Company records minimum rent expense on a straight-line basis over the lease term on the consolidated income statement. The lease term used for lease evaluation includes renewal option periods only in instances in which the exercise of the option period can be reasonably assured and failure to exercise such options would result in an economic penalty. Revenue Recognition —The Company's retail operations segment recognizes merchandise revenue at the "point of sale." Allowance for sales returns are recorded as a component of net sales in the period in which the related sales are recorded. Sales taxes collected from customers are excluded from revenue and are recorded in trade accounts payable and accrued expenses until remitted to the taxing authorities. Synchrony Financial ("Synchrony"; formerly GE Consumer Finance ) owned and managed Dillard's private label credit cards under a long-term marketing and servicing alliance ("Synchrony Alliance") that expired in November 2014. Following the scheduled expiration, Wells Fargo Bank, N.A. ("Wells Fargo") purchased the Dillard's private label credit card portfolio from Synchrony and began managing Dillard's private label cards under a new 10 -year agreement ("Wells Fargo Alliance"). The Company's share of income earned under the Wells Fargo Alliance and former Synchrony Alliance is included as a component of service charges and other income. The Company received income of approximately $105 million , $112 million and $113 million from the alliances in fiscal 2015, 2014 and 2013, respectively. The Company participates in the marketing of the private label cards and accepts payments on the private label cards in its stores as a convenience to customers who prefer to pay in person rather than by mailing their payments to Wells Fargo. Revenue from CDI construction contracts is generally recognized by applying percentages of completion for each period to the total estimated profits for the respective contracts. The length of each contract varies but is typically nine to eighteen months. The percentages of completion are determined by relating the actual costs of work performed to date to the current estimated total costs of the respective contracts. When the estimate on a contract indicates a loss, the entire loss is recorded in the current period. Gift Card Revenue Recognition —The Company establishes a liability upon the sale of a gift card. The liability is relieved and revenue is recognized when gift cards are redeemed for merchandise. Gift card breakage income is determined based upon historical redemption patterns. The Company uses a homogeneous pool to recognize gift card breakage and will recognize income over the period when the likelihood of the gift card being redeemed is remote and the Company determines that it does not have a legal obligation to remit the value of unredeemed gift cards to the relevant jurisdiction as abandoned property. At that time, the Company will recognize breakage income over the performance period for those gift cards (i.e. 60 months ) and will record it in service charges and other income. As of January 30, 2016 and January 31, 2015 , gift card liabilities of $60.0 million and $60.2 million , respectively, were included in trade accounts payable and accrued expenses and other liabilities. Advertising —Advertising and promotional costs, which include newspaper, magazine, Internet, broadcast and other media advertising, are expensed as incurred and were approximately $50 million , $56 million and $65 million , net of cooperative advertising reimbursements of $29.3 million , $31.6 million and $34.1 million for fiscal years 2015, 2014 and 2013, respectively. The Company records net advertising expenses in selling, general and administrative expenses. Income Taxes —Income taxes are recognized for the amount of taxes payable for the current year and deferred tax assets and liabilities for the future tax consequence of events that have been recognized differently in the financial statements than for tax purposes. Deferred tax assets and liabilities are established using statutory tax rates and are adjusted for tax rate changes. Tax positions are analyzed to determine whether it is "more likely than not" that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the financial statements. For those tax positions where it is not "more likely than not" that a tax benefit will be sustained, no tax benefit is recognized. The Company classifies accrued interest expense and penalties relating to income tax in the consolidated financial statements as income tax expense. Shipping and Handling —The Company records shipping and handling reimbursements in service charges and other income. The Company records shipping and handling costs in cost of sales. Defined Benefit Retirement Plans —The Company's defined benefit retirement plan costs are accounted for using actuarial valuations. The Company recognizes the funded status of its defined benefit pension plans on the balance sheet and recognizes changes in the funded status that arise during the period but that are not recognized as components of net periodic benefit cost, within other comprehensive income, net of income taxes. 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 distributions of excess cash from a mall joint venture. Comprehensive Income —Comprehensive income is defined as the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. It consists of the net income or loss and other gains and losses affecting stockholders' equity that, under GAAP, are excluded from net income or loss. One such exclusion is the amortization of retirement plan and other retiree benefit adjustments, which is the only item impacting our accumulated other comprehensive loss. Supply Concentration —The Company purchases merchandise from many sources and does not believe that the Company was dependent on any one supplier during fiscal 2015. Reclassifications —Certain items have been reclassified from their prior year classifications to conform to the current year presentation. These reclassifications had no effect on net income or stockholders' equity as previously reported. New Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 was amended by ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which deferred the effective date for the Company from the first quarter of fiscal 2017 to the first quarter of fiscal 2018 with early adoption permitted. The Company is currently assessing the impact of this update on its consolidated financial statements. Presentation of Financial Statements - Going Concern In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40) , which requires management to evaluate, at each annual and interim reporting period, whether there are conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date the financial statements are issued and provide related disclosures. This ASU is effective for annual periods ending after December 15, 2016 and interim periods thereafter. Early application is permitted. The adoption of this guidance is not expected to have a significant impact on the Company's consolidated financial statements. Simplifying the Presentation of Debt Issuance Costs In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs , to amend ASC Topic 835. The amendment adds the requirement for an entity to present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset and to report amortization of the debt issuance costs as interest expense. This update will be effective for the Company beginning in the first quarter of fiscal 2016. The adoption of this guidance is not expected to have a significant impact on the Company's consolidated financial statements. Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements In August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements, to provide authoritative guidance related to line-of-credit arrangements, which were not addressed in ASU No. 2015-03. An entity may defer and present debt issuance costs related to line-of-credit arrangements as an asset. Subsequently, the debt issuance costs may be amortized as interest expense ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. This update will be effective for the Company beginning in the first quarter of fiscal 2016. The adoption of this guidance is not expected to have a significant impact on the Company's consolidated financial statements. Simplifying the Measurement of Inventory In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory , to simplify the measurement of inventory using the first-in, first out (FIFO) or average cost methods. Under this amendment, inventory under the FIFO or average cost methods should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This update will be effective for the Company beginning in the first quarter of fiscal 2017. Approximately 96% of the Company's merchandise inventories are valued using the retail inventory method, which is outside the scope of ASU No. 2015-11. The remaining 4% of the Company's merchandise inventories are valued at the lower of cost or market using the average cost or specific identified cost methods, and the Company is evaluating the effect of this update on these inventory values. The adoption of this guidance is not expected to have a significant impact on the Company's consolidated financial statements. Balance Sheet Classification of Deferred Taxes In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, to simplify the presentation of deferred taxes in the balance sheet. Under this amendment, entities will no longer be required to separate deferred income tax liabilities and assets into current and noncurrent amounts in the balance sheet. Rather, the amendment requires deferred tax liabilities and assets be classified as noncurrent in the balance sheet. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and early adoption is permitted as of the beginning of an interim or annual reporting period. The Company elected to adopt the accounting standard in the beginning of the fourth quarter of fiscal 2015. Prior periods in our consolidated financial statements were retrospectively adjusted (refer to Note 6). Leases: Amendments to the FASB Accounting Standards Codification In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842): Amendments to the FASB Accounting Standards Codification, to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and disclosing key information about leasing arrangements. Under these amendments, lessees are required to recognize lease assets and lease liabilities for leases classified as operating leases under ASC 840. ASU No. 2016-02 is effective for financial statements issued for fiscal years beginning after December 15, 2018, and early adoption is permitted. The Company is currently assessing the impact of this update on its consolidated financial statements. |
Business Segments
Business Segments | 12 Months Ended |
Jan. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company operates in two reportable segments: the operation of retail department stores and a general contracting construction company. For the Company's retail operations reportable segment, 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 table summarizes the percentage of net sales by segment and major product line: Percentage of Net Sales Fiscal 2015 Fiscal 2014 Fiscal 2013 Retail operations segment: Cosmetics 14 % 14 % 15 % Ladies' apparel 22 22 22 Ladies' accessories and lingerie 16 16 16 Juniors' and children's apparel 8 9 8 Men's apparel and accessories 17 17 17 Shoes 16 16 16 Home and furniture 4 4 5 97 98 99 Construction segment 3 2 1 Total 100 % 100 % 100 % The following tables summarize certain segment information, including the reconciliation of those items to the Company's consolidated operations. (in thousands of dollars) Retail Operations Fiscal 2015 Construction Consolidated Net sales from external customers $ 6,388,769 $ 206,857 $ 6,595,626 Gross profit 2,237,077 7,744 2,244,821 Depreciation and amortization 249,508 503 250,011 Interest and debt expense (income), net 60,989 (66 ) 60,923 Income before income taxes and income on and equity in losses of joint ventures 404,582 4,202 408,784 Income on and equity in losses of joint ventures 1,356 — 1,356 Total assets 3,804,718 60,907 3,865,625 (in thousands of dollars) Retail Operations Fiscal 2014 Construction Consolidated Net sales from external customers $ 6,490,387 $ 130,667 $ 6,621,054 Gross profit 2,342,109 6,340 2,348,449 Depreciation and amortization 250,371 312 250,683 Interest and debt expense (income), net 61,352 (46 ) 61,306 Income before income taxes and income on and equity in losses of joint ventures 508,730 2,038 510,768 Income on and equity in losses of joint ventures 565 — 565 Total assets 4,111,744 58,327 4,170,071 (in thousands of dollars) Retail Operations Fiscal 2013 Construction Consolidated Net sales from external customers $ 6,439,304 $ 92,343 $ 6,531,647 Gross profit 2,301,271 6,661 2,307,932 Depreciation and amortization 255,240 250 255,490 Interest and debt expense (income), net 64,572 (67 ) 64,505 Income before income taxes and income on and equity in losses of joint ventures 494,452 1,772 496,224 Income on and equity in losses of joint ventures 847 — 847 Total assets 4,011,771 38,968 4,050,739 Intersegment construction revenues of $77.7 million , $82.5 million and $35.0 million were eliminated during consolidation and have been excluded from net sales for fiscal years 2015, 2014 and 2013, respectively. |
Revolving Credit Agreement
Revolving Credit Agreement | 12 Months Ended |
Jan. 30, 2016 | |
Line of Credit Facility [Abstract] | |
Revolving Credit Agreement | Revolving Credit Agreement In May 2015, the Company entered into a new $1.0 billion senior unsecured revolving credit facility ("credit agreement"), replacing the secured credit facility with J. P. Morgan Securities LLC, Wells Fargo Securities, LLC, Regions Capital Markets and Citizens Bank, N.A. The facility expires May 13, 2020 and is available to the Company for working capital needs and general corporate purposes including, among other uses, working capital financing, the issuance of letters of credit, capital expenditures and, subject to certain restrictions, the repayment of existing indebtedness and share repurchases. The Company pays a variable rate of interest on borrowings under the credit agreement and a commitment fee to the participating banks based on the Company's debt rating. The rate of interest on borrowings is LIBOR plus 1.375% , and the commitment fee for unused borrowings is 0.20% per annum. No borrowings were outstanding at January 30, 2016 . Letters of credit totaling $25.8 million were issued under this credit agreement leaving unutilized availability under the facility of approximately $974 million at January 30, 2016 . The Company had weighted-average borrowings of $41.3 million and $13.1 million during fiscal 2015 and 2014, respectively. Peak borrowings under the credit facility were $310 million during fiscal 2015. To be in compliance with the financial covenants of the new credit facility, the Company's total leverage ratio cannot exceed 4.0 to 1.0 and the coverage ratio cannot be less than 2.5 to 1.0, as defined in the credit facility agreement. At January 30, 2016, the Company was in compliance with all financial covenants related to the credit agreement. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jan. 30, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt of $614.8 million was outstanding at January 30, 2016 and January 31, 2015. This debt consisted of unsecured notes, bearing interest rates ranging from 6.625% to 7.875% and maturing during fiscal 2017 through fiscal 2028. There are no financial covenants under any of the debt agreements. Long-term debt maturities over the next five years are (in millions): Fiscal Year Long-Term Debt Maturities 2016 $ — 2017 87.2 2018 161.0 2019 — 2020 — Net interest and debt expense consists of the following: (in thousands of dollars) Fiscal 2015 Fiscal 2014 Fiscal 2013 Long-term debt: Interest $ 57,346 $ 57,739 $ 59,462 Amortization of debt expense 1,555 1,438 1,641 58,901 59,177 61,103 Interest on capital lease obligations 588 644 796 Revolving credit facility expenses 2,739 2,719 3,628 Investment interest income (1,305 ) (1,234 ) (1,022 ) $ 60,923 $ 61,306 $ 64,505 Interest paid during fiscal 2015, 2014 and 2013 was approximately $62.9 million , $62.9 million , $54.7 million , respectively. |
Trade Accounts Payable and Accr
Trade Accounts Payable and Accrued Expenses | 12 Months Ended |
Jan. 30, 2016 | |
Payables and Accruals [Abstract] | |
Trade Accounts Payable and Accrued Expenses | Trade Accounts Payable and Accrued Expenses Trade accounts payable and accrued expenses consist of the following: (in thousands of dollars) January 30, 2016 January 31, 2015 Trade accounts payable $ 494,268 $ 530,809 Accrued expenses: Taxes, other than income 59,138 61,341 Salaries, wages and employee benefits 57,240 59,626 Liability to customers 56,397 51,931 Interest 13,301 13,486 Rent 3,631 3,934 Other 7,335 9,295 $ 691,310 $ 730,422 |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for federal and state income taxes is summarized as follows: (in thousands of dollars) Fiscal 2015 Fiscal 2014 Fiscal 2013 Current: Federal $ 173,786 $ 206,387 $ 176,291 State 2,959 4,020 4,438 176,745 210,407 180,729 Deferred: Federal (33,708 ) (32,051 ) (8,990 ) State (2,267 ) 1,124 1,661 (35,975 ) (30,927 ) (7,329 ) $ 140,770 $ 179,480 $ 173,400 A reconciliation between the Company's income tax provision and income taxes using the federal statutory income tax rate is presented below: (in thousands of dollars) Fiscal 2015 Fiscal 2014 Fiscal 2013 Income tax at the statutory federal rate (inclusive of income on and equity in losses of joint ventures) $ 143,549 $ 178,967 $ 173,975 State income taxes, net of federal benefit (inclusive of income on and equity in losses of joint ventures) 2,488 4,426 8,013 Net changes in unrecognized tax benefits, interest and penalties /reserves (367 ) (1,386 ) (481 ) Tax benefit of federal credits (2,018 ) (2,810 ) (3,037 ) Changes in cash surrender value of life insurance policies (705 ) (731 ) (986 ) Changes in valuation allowance (1,473 ) 1,485 (5,501 ) Tax benefit of dividends paid to ESOP (763 ) (802 ) (581 ) Other 59 331 1,998 $ 140,770 $ 179,480 $ 173,400 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities as of January 30, 2016 and January 31, 2015 are as follows: (in thousands of dollars) January 30, January 31, Property and equipment bases and depreciation differences $ 245,404 $ 265,764 Prepaid expenses 57,672 58,998 Joint venture bases differences 12,985 14,351 Differences between book and tax bases of inventory 43,116 52,486 Other 6,551 3,599 Total deferred tax liabilities 365,728 395,198 Accruals not currently deductible (88,277 ) (90,192 ) Net operating loss carryforwards (74,094 ) (77,774 ) State income taxes (1,123 ) (1,320 ) Other (3,361 ) (1,573 ) Total deferred tax assets (166,855 ) (170,859 ) Net operating loss valuation allowance 52,724 54,659 Net deferred tax assets (114,131 ) (116,200 ) Net deferred income taxes $ 251,597 $ 278,998 At January 30, 2016, the Company had a deferred tax asset related to state net operating loss carryforwards of approximately $74.1 million that could be utilized to reduce the tax liabilities of future years. These carryforwards will expire between fiscal 2016 and 2036. A portion of the deferred tax asset attributable to state net operating loss carryforwards was reduced by a valuation allowance of approximately $52.7 million for the losses of various members of the affiliated group in states for which the Company determined that it is "more likely than not" that the benefit of the net operating losses will not be realized. In the beginning of the fourth quarter of fiscal 2015, the Company elected to adopt ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, to simplify the presentation of deferred taxes in the consolidated balance sheets (refer to Note 1). The Company's retrospective application resulted in the reclassification of $84.7 million net deferred tax liabilities from current deferred taxes to noncurrent deferred taxes in the consolidated balance sheet at January 31, 2015. Deferred tax assets and liabilities are presented as follows in the accompanying consolidated balance sheets: (in thousands of dollars) January 30, January 31, Net deferred tax assets—other assets $ (6,473 ) $ — Net deferred tax liabilities—deferred income taxes 258,070 278,998 Net deferred income taxes $ 251,597 $ 278,998 The total amount of unrecognized tax benefits as of January 30, 2016 and January 31, 2015 was $4.3 million and $4.8 million , respectively, of which $2.5 million and $2.6 million , respectively, would, if recognized, affect the effective tax rate. The Company does not expect a significant change in unrecognized tax benefits in the next twelve months. Where applicable, associated interest and penalties are also recorded. The total amounts of interest and penalties were not material. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: (in thousands of dollars) Fiscal 2015 Fiscal 2014 Fiscal 2013 Unrecognized tax benefits at beginning of period $ 4,806 $ 6,538 $ 5,432 Gross increases—tax positions in prior period — 55 967 Gross decreases—tax positions in prior period (734 ) (1,689 ) (733 ) Gross increases—current period tax positions 317 665 1,207 Settlements — (545 ) (335 ) Lapse of statutes of limitation (124 ) (218 ) — Unrecognized tax benefits at end of period $ 4,265 $ 4,806 $ 6,538 The fiscal tax years that remain subject to examination for the federal tax jurisdiction are 2013 and forward and for major state tax jurisdictions are 2012 and forward. At this time, the Company does not expect the results from any income tax audit to have a material impact on the Company's consolidated financial statements. Income taxes paid, net of income tax refunds received, during fiscal 2015, 2014 and 2013 were approximately $183.6 million , $189.7 million and $173.8 million , respectively. |
Subordinated Debentures
Subordinated Debentures | 12 Months Ended |
Jan. 30, 2016 | |
Subordinated Debentures | |
Subordinated Debentures | Subordinated Debentures At January 30, 2016 , the Company had $200 million outstanding of its 7.5% subordinated debentures due August 1, 2038. All of these subordinated debentures were held by Dillard's Capital Trust I ("Trust"), a 100% owned unconsolidated finance subsidiary of the Company. The subordinated debentures are the sole asset of the Trust. The Company has the right to defer the payment of interest on the subordinated debentures at any time for a period not to exceed 20 consecutive quarters. At January 30, 2016 , the Trust has outstanding $200 million liquidation amount of 7.5% Capital Securities, due August 1, 2038 (the "Capital Securities"). Holders of the Capital Securities are entitled to receive cumulative cash distributions, payable quarterly, at the annual rate of 7.5% of the liquidation amount of $25 per Capital Security. The Capital Securities are subject to mandatory redemption upon repayment of the Company's subordinated debentures. The Company's obligations under the subordinated debentures and related agreements, taken together, provide a full and unconditional guarantee of payments due on the Capital Securities. The Trust is a variable interest entity and is not consolidated into the Company's financial statements, since the Company is not the primary beneficiary of the Trust. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Jan. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | Benefit Plans The Company has a retirement plan with a 401(k)-salary deferral feature for eligible employees. Under the terms of the plan, eligible employees could contribute up to the lesser of $18,000 ( $24,000 if at least 50 years of age) or 75% of eligible pay. Eligible employees with 1 year of service, who elect to participate in the plan or are auto-enrolled, receive a Company matching contribution. Company matching contributions are calculated on the eligible employee's first 6% of elective deferrals with the first 1% being matched 100% and the next 5% being matched 50% . The Company matching contributions are used to purchase Class A Common Stock of the Company for the benefit of the employee. This stock may be immediately diversified into any of the other funds within the plan at the election of the employee. The terms of the plan provide a two -year vesting schedule for the Company matching contribution portion of the plan. The Company incurred benefit plan expense of approximately $18 million for each of fiscal 2015, 2014 and 2013. 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 an actuarial cost method 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. Net periodic benefit costs are included in selling, general and administrative expenses. The accumulated benefit obligations, change in projected benefit obligation, change in Pension Plan assets, funded status, and reconciliation to amounts recognized in the consolidated balance sheets are as follows: (in thousands of dollars) January 30, January 31, Change in benefit obligation: Benefit obligation at beginning of year $ 196,922 $ 173,870 Service cost 3,932 4,396 Interest cost 6,736 7,644 Actuarial (gain) loss (18,788 ) 13,850 Benefits paid (3,992 ) (2,838 ) Benefit obligation at end of year $ 184,810 $ 196,922 Change in Pension Plan assets: Fair value of Pension Plan assets at beginning of year $ — $ — Employer contribution 3,992 2,838 Benefits paid (3,992 ) (2,838 ) Fair value of Pension Plan assets at end of year $ — $ — Funded status (Pension Plan assets less benefit obligation) $ (184,810 ) $ (196,922 ) Amounts recognized in the balance sheets: Accrued benefit liability $ (184,810 ) $ (196,922 ) Net amount recognized $ (184,810 ) $ (196,922 ) Pretax amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 27,669 $ 50,153 Prior service cost — — Net amount recognized $ 27,669 $ 50,153 The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic cost in 2016: Net actuarial loss $ 1,204 Prior service cost — Net amount recognized $ 1,204 Accumulated benefit obligation at end of year $ (177,228 ) $ (188,126 ) The accrued benefit liability is included in other liabilities. The discount rate that the Company utilizes for determining future pension obligations is based on the Citigroup Above Median Pension Index Curve on its annual measurement date as of the end of each fiscal year and is matched to the future expected cash flows of the benefit plans by annual periods. The discount rate increased to 4.2% as of January 30, 2016 from 3.5% as of January 31, 2015. Weighted average assumptions are as follows: Fiscal 2015 Fiscal 2014 Fiscal 2013 Discount rate—net periodic pension cost 3.5 % 4.4 % 4.1 % Discount rate—benefit obligations 4.2 % 3.5 % 4.4 % Rate of compensation increases 3.0 % 3.0 % 3.0 % The components of net periodic benefit costs are as follows: (in thousands of dollars) Fiscal 2015 Fiscal 2014 Fiscal 2013 Components of net periodic benefit costs: Service cost $ 3,932 $ 4,396 $ 4,237 Interest cost 6,736 7,644 6,782 Net actuarial loss 3,697 2,660 3,012 Amortization of prior service cost — — 96 Plan curtailment gain — — (1,480 ) Net periodic benefit costs $ 14,365 $ 14,700 $ 12,647 Other changes in benefit obligations recognized in other comprehensive (income) loss: Net actuarial (gain) loss $ (22,485 ) $ 11,190 $ (4,225 ) Amortization of prior service cost — — (96 ) Total recognized in other comprehensive (income) loss $ (22,485 ) $ 11,190 $ (4,321 ) Total recognized in net periodic benefit costs and other comprehensive income or loss $ (8,120 ) $ 25,890 $ 8,326 The estimated future benefits payments for the nonqualified benefit plan are as follows: (in thousands of dollars) Fiscal Year 2016 $ 4,027 * 2017 6,039 2018 6,453 2019 6,515 2020 9,291 2021 - 2025 57,258 Total payments for next ten fiscal years $ 89,583 ___________________________________ * The estimated benefit payment for fiscal 2016 also represents the amount the Company expects to contribute to the Pension Plan for fiscal 2016. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jan. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Capital stock is comprised of the following: Type Par Value Shares Authorized Preferred (5% cumulative) $ 100.00 5,000 Additional preferred $ 0.01 10,000,000 Class A, common $ 0.01 289,000,000 Class B, common $ 0.01 11,000,000 Holders of Class A are empowered as a class to elect one-third of the members of the Board of Directors, and the holders of Class B are empowered as a class to elect two-thirds of the members of the Board of Directors. Shares of Class B are convertible at the option of any holder thereof into shares of Class A at the rate of one share of Class B for one share of Class A. During fiscal 2015, the Company issued 528 shares of Class A Common Stock in exchange for 528 shares of Class B Common Stock tendered for conversion pursuant to the Certificate of Incorporation. Stock Repurchase Programs All repurchases of the Company's Class A Common Stock were made at the market price at the trade date and all amounts paid to reacquire these shares were allocated to Treasury Stock. Stock Plans The Company’s Board of Directors has authorized the Company to repurchase the Company’s Class A Common Stock under open-ended stock repurchase plans. The following is a summary of share repurchase activity for the periods indicated (in thousands, except per share data): Fiscal 2015 Fiscal 2014 Fiscal 2013 Cost of shares repurchased $ 500,000 $ 290,408 $ 301,566 Number of shares repurchased 5,307 2,781 3,852 Average price per share $ 94.22 $ 104.44 $ 78.30 As of January 30, 2016, no authorization remained under the Company's historical stock repurchase plans. On February 25, 2016, the Company announced that the Company's Board of Directors approved a new stock repurchase program authorizing the Company to repurchase up to $500 million of its Class A Common Stock. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss ("AOCL") | 12 Months Ended |
Jan. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss (AOCL) | Accumulated Other Comprehensive Loss ("AOCL") Reclassifications from AOCL Reclassifications from AOCL are summarized as follows (in thousands): Amount Reclassified from AOCL Affected Line Item in the Statement Where Net Income Is Presented Details about AOCL Components Fiscal 2015 Fiscal 2014 Defined benefit pension plan items Amortization of prior service cost $ — $ — (1) Amortization of actuarial losses 3,697 2,660 (1) 3,697 2,660 Total before tax 1,410 1,017 Income tax expense $ 2,287 $ 1,643 Total net of tax _______________________________ (1) These items are included in the computation of net periodic pension cost. See Note 8 for additional information. Changes in AOCL Changes in AOCL by component (net of tax) are summarized as follows (in thousands): Defined Benefit Fiscal 2015 Fiscal 2014 Beginning balance $ 31,029 $ 24,074 Other comprehensive (income) loss before reclassifications (11,624 ) 8,598 Amounts reclassified from AOCL (2,287 ) (1,643 ) Net other comprehensive (income) loss (13,911 ) 6,955 Ending balance $ 17,118 $ 31,029 |
Earnings per Share
Earnings per Share | 12 Months Ended |
Jan. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic earnings per share has been computed based upon the weighted average of Class A and Class B common shares outstanding. Diluted earnings per share gives effect to outstanding stock options. Earnings per common share has been computed as follows: Fiscal 2015 Fiscal 2014 Fiscal 2013 (in thousands, except per share data) Basic Diluted Basic Diluted Basic Diluted Net earnings available for per-share calculation $ 269,370 $ 269,370 $ 331,853 $ 331,853 $ 323,671 $ 323,671 Average shares of common stock outstanding 39,005 39,005 42,603 42,603 45,586 45,586 Dilutive effect of stock-based compensation — — — — — — Total average equivalent shares 39,005 39,005 42,603 42,603 45,586 45,586 Per share of common stock: Net income $ 6.91 $ 6.91 $ 7.79 $ 7.79 $ 7.10 $ 7.10 No stock options were outstanding at January 30, 2016, January 31, 2015 and February 1, 2014. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jan. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Rental expense consists of the following: (in thousands of dollars) Fiscal 2015 Fiscal 2014 Fiscal 2013 Operating leases: Buildings: Minimum rentals $ 15,546 $ 15,699 $ 15,767 Contingent rentals 4,914 4,959 5,196 Equipment 6,272 6,319 5,870 $ 26,732 $ 26,977 $ 26,833 Contingent rentals on certain leases are based on a percentage of annual sales in excess of specified amounts. Other contingent rentals are based entirely on a percentage of sales. The future minimum rental commitments as of January 30, 2016 for all non-cancelable leases for buildings and equipment are as follows: (in thousands of dollars) Fiscal Year Operating Leases Capital Leases 2016 $ 21,269 $ 3,791 2017 15,748 3,699 2018 10,541 1,428 2019 4,368 1,428 2020 1,618 1,077 After 2020 789 726 Total minimum lease payments $ 54,333 12,149 Less amount representing interest (1,596 ) Present value of net minimum lease payments (of which $3,284 is currently payable) $ 10,553 Renewal options from three to 25 years exist on the majority of leased properties. At January 30, 2016 , the Company is committed to incur costs of approximately $16.4 million to acquire, complete and furnish certain stores and equipment. At January 30, 2016 , letters of credit totaling $25.8 million were issued under the Company's $1.0 billion revolving credit facility. 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 materially affect the Company's financial position, cash flows or results of operations. |
Asset Impairment and Store Clos
Asset Impairment and Store Closing Charges | 12 Months Ended |
Jan. 30, 2016 | |
Asset Impairment and Store Closing Charges | |
Asset Impairment and Store Closing Charges | Asset Impairment and Store Closing Charges During fiscal 2015 and 2014, no asset impairment and store closing charges were recorded. During fiscal 2013, the Company recorded a pretax charge of $5.4 million for asset impairment and store closing costs. The charge was for the write-down of certain cost method investments. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Jan. 30, 2016 | |
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. The fair value of the Company's cash and cash equivalents, restricted cash and trade accounts receivable approximates their carrying values at January 30, 2016 and January 31, 2015 due to the short-term maturities of these instruments. The fair values of the Company's long-term debt at January 30, 2016 and January 31, 2015 were approximately $695 million and $678 million , respectively. The carrying value of the Company's long-term debt at January 30, 2016 and January 31, 2015 was approximately $615 million . The fair value of the subordinated debentures at January 30, 2016 and January 31, 2015 was approximately $204 million and $207 million , respectively. The carrying value of the subordinated debentures at January 30, 2016 and January 31, 2015 was $200 million . During fiscal 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. |
Quarterly Results of Operations
Quarterly Results of Operations (unaudited) | 12 Months Ended |
Jan. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (unaudited) | Quarterly Results of Operations (unaudited) Fiscal 2015, Three Months Ended (in thousands of dollars, except per share data) May 2 August 1 October 31 January 30 Net sales $ 1,573,493 $ 1,513,778 $ 1,434,654 $ 2,073,701 Gross profit 613,074 493,447 521,734 616,566 Net income 109,571 29,950 45,744 84,105 Diluted earnings per share: Net income $ 2.66 $ 0.75 $ 1.19 $ 2.31 Fiscal 2014, Three Months Ended (in thousands of dollars, except per share data) May 3 August 2 November 1 January 31 Net sales $ 1,551,314 $ 1,474,484 $ 1,459,781 $ 2,135,475 Gross profit 612,090 498,215 535,338 702,806 Net income 111,683 34,449 55,231 130,490 Diluted earnings per share: Net income $ 2.56 $ 0.80 $ 1.30 $ 3.17 Total of quarterly earnings per common share may not equal the annual amount because net income per common share is calculated independently for each quarter. Quarterly information for fiscal 2015 and fiscal 2014 includes the following items: Fourth Quarter 2015 • a $3.1 million pretax gain ( $2.0 million after tax or $0.06 per share) primarily related to the sale of one retail store location. Third Quarter 2015 • a $9.4 million pretax gain ( $6.0 million after tax or $0.16 per share) primarily related to the sale of three retail store locations. 2014 • a $5.9 million pretax gain ( $3.8 million after tax or $0.09 per share) related to the sale of a retail store location. |
Description of Business and S25
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jan. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | Consolidation —The accompanying consolidated financial statements include the accounts of Dillard's, Inc. and its wholly owned subsidiaries. Intercompany accounts and transactions are eliminated in consolidation. Investments in and advances to joint ventures are accounted for by the equity method where the Company does not have control. |
Use of Estimates | Use of Estimates —The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include inventories, sales return, self-insured accruals, future cash flows for impairment analysis, pension discount rate and taxes. Actual results could differ from those estimates. |
Cash Equivalents and Restricted Cash | Cash Equivalents —The Company considers all highly liquid investments with an original maturity of 3 months or less when purchased or certificates of deposit with no early withdrawal penalty to be cash equivalents. The Company considers receivables from charge card companies as cash equivalents because they settle the balances within 2 to 3 days. Restricted Cash —Restricted cash consists of cash proceeds from the sale of property held in escrow for the acquisition of replacement property under like-kind exchange agreements. The escrow accounts are administered by an intermediary. Pursuant to the like-kind exchange agreements, the cash remains restricted for a maximum of 180 days from the date of the property sale pending the acquisition of replacement property. Changes in restricted cash balances are reflected as an investment activity in the accompanying Consolidated Statements of Cash Flows. |
Accounts Receivable | Accounts Receivable —Accounts receivable primarily consists of construction receivables of CDI and the monthly settlement with Wells Fargo for Dillard's share of revenue from the long-term marketing and servicing alliance. Construction receivables are based on amounts billed to customers. The Company provides any allowance for doubtful accounts considered necessary based upon a review of outstanding receivables, historical collection information and existing economic conditions. Accounts receivable are ordinarily due 30 days after the issuance of the invoice. Contract retentions are due 30 days after completion of the project and acceptance by the owner. Accounts that are past due more than 120 days are considered delinquent. Delinquent receivables are written off based on individual credit evaluation and specific circumstances of the customer. |
Merchandise Inventories | Merchandise Inventories —Approximately 96% of the Company's inventories are valued at the lower of cost or market using the last-in, first-out ("LIFO") retail inventory method. Under the retail inventory method, the valuation of inventories at cost and the resulting gross margins are calculated by applying a calculated cost to retail ratio to the retail value of inventories. The retail inventory method is an averaging method that is widely used in the retail industry due to its practicality. Inherent in the retail inventory method calculation are certain significant management judgments including, among others, merchandise markon, markups, and markdowns, which significantly impact the ending inventory valuation at cost as well as the resulting gross margins. During periods of deflation, inventory values on the first-in, first-out ("FIFO") retail inventory method may be lower than the LIFO retail inventory method. Additionally, inventory values at LIFO cost may be in excess of net realizable value. At January 30, 2016 and January 31, 2015, merchandise inventories valued at LIFO, including adjustments as necessary to record inventory at the lower of cost or market, approximated the cost of such inventories using the FIFO retail inventory method. The application of the LIFO retail inventory method did not result in the recognition of any LIFO charges or credits affecting cost of sales for fiscal 2015, 2014 or 2013. The remaining 4% of the inventories are valued at the lower of cost or market using the average cost or specific identified cost methods. The Company regularly records a provision for estimated shrinkage, thereby reducing the carrying value of merchandise inventory. Complete physical inventories of all of the Company's stores and warehouses are performed no less frequently than annually, with the recorded amount of merchandise inventory being adjusted to coincide with these physical counts. |
Property and Equipment | Property and Equipment —Property and equipment owned by the Company is stated at cost, which includes related interest costs incurred during periods of construction, less accumulated depreciation and amortization. Interest capitalized during fiscal 2015 and 2014 was $2.1 million and $1.7 million , respectively, and was immaterial during fiscal 2013. For financial reporting purposes, depreciation is computed by the straight-line method over estimated useful lives: Buildings and leasehold improvements 20 - 40 years Furniture, fixtures and equipment 3 - 10 years Properties leased by the Company under lease agreements which are determined to be capital leases are stated at an amount equal to the present value of the minimum lease payments during the lease term, less accumulated amortization. The assets under capital leases and leasehold improvements under operating leases are amortized on the straight-line method over the shorter of their useful lives or the related lease terms. The provision for amortization of leased properties is included in depreciation and amortization expense. |
Long-Lived Assets | Long-Lived Assets —Impairment losses are required to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets' carrying amount. In the evaluation of the fair value and future benefits of long-lived assets, the Company performs an analysis of the anticipated undiscounted future net cash flows of the related long-lived assets. This analysis is performed at the store unit level. If the carrying value of the related asset exceeds the undiscounted cash flows, the carrying value is reduced to its fair value. Various factors including future sales growth and profit margins are included in this analysis. Management believes at this time that the carrying value and useful lives continue to be appropriate. |
Other Assets | Other Assets —Other assets include the deferred charge related to the REIT Transaction of $184.7 million and $191.8 million at January 30, 2016 and January 31, 2015, respectively. Other assets also include investments accounted for by the equity and cost methods. |
Vendor Allowances | Vendor Allowances —The Company receives concessions from its vendors through a variety of programs and arrangements, including cooperative advertising and margin maintenance programs. The Company has agreements in place with each vendor setting forth the specific conditions for each allowance or payment. These agreements range in periods from a few days to up to a year. If the payment is a reimbursement for costs incurred, it is offset against those related costs; otherwise, it is treated as a reduction to the cost of the merchandise. Amounts of vendor concessions are recorded only when an agreement has been reached with the vendor and the collection of the concession is deemed probable. For cooperative advertising programs, the Company generally offsets the allowances against the related advertising expense when incurred. Many of these programs require proof-of-advertising to be provided to the vendor to support the reimbursement of the incurred cost. Programs that do not require proof-of-advertising are monitored to ensure that the allowance provided by each vendor is a reimbursement of costs incurred to advertise for that particular vendor. If the allowance exceeds the advertising costs incurred on a vendor-specific basis, then the excess allowance from the vendor is recorded as a reduction of merchandise cost for that vendor. Margin maintenance allowances are credited directly to cost of purchased merchandise in the period earned according to the agreement with the vendor. Under the retail method of accounting for inventory, a portion of these allowances reduces cost of goods sold and a portion reduces the carrying value of merchandise inventory. |
Insurance Accruals | Insurance Accruals —The Company's consolidated balance sheets include liabilities with respect to self-insured workers' compensation and general liability claims. The Company's self-insured retention is insured through a wholly-owned captive insurance subsidiary. The Company estimates the required liability of such claims, utilizing an actuarial method, based upon various assumptions, which include, but are not limited to, the Company's historical loss experience, projected loss development factors, actual payroll and other data. The required liability is also subject to adjustment in the future based upon the changes in claims experience, including changes in the number of incidents (frequency) and changes in the ultimate cost per incident (severity). These insurance accruals are recorded in trade accounts payable and accrued expenses and other liabilities on the consolidated balance sheets. |
Operating Leases | Operating Leases —The Company leases retail stores, office space and equipment under operating leases. Many store leases contain construction allowance reimbursements by landlords, rent holidays, rent escalation clauses and/or contingent rent provisions. The Company recognizes the related rental expense on a straight-line basis over the lease term and records the difference between the amounts charged to expense and the rent paid as a deferred rent liability. To account for construction allowance reimbursements from landlords and rent holidays, the Company records a deferred rent liability in other liabilities on the consolidated balance sheets and amortizes the deferred rent over the lease term, as a reduction to rent expense on the consolidated income statements. For leases containing rent escalation clauses, the Company records minimum rent expense on a straight-line basis over the lease term on the consolidated income statement. The lease term used for lease evaluation includes renewal option periods only in instances in which the exercise of the option period can be reasonably assured and failure to exercise such options would result in an economic penalty. |
Revenue Recognition | Revenue Recognition —The Company's retail operations segment recognizes merchandise revenue at the "point of sale." Allowance for sales returns are recorded as a component of net sales in the period in which the related sales are recorded. Sales taxes collected from customers are excluded from revenue and are recorded in trade accounts payable and accrued expenses until remitted to the taxing authorities. Synchrony Financial ("Synchrony"; formerly GE Consumer Finance ) owned and managed Dillard's private label credit cards under a long-term marketing and servicing alliance ("Synchrony Alliance") that expired in November 2014. Following the scheduled expiration, Wells Fargo Bank, N.A. ("Wells Fargo") purchased the Dillard's private label credit card portfolio from Synchrony and began managing Dillard's private label cards under a new 10 -year agreement ("Wells Fargo Alliance"). The Company's share of income earned under the Wells Fargo Alliance and former Synchrony Alliance is included as a component of service charges and other income. The Company received income of approximately $105 million , $112 million and $113 million from the alliances in fiscal 2015, 2014 and 2013, respectively. The Company participates in the marketing of the private label cards and accepts payments on the private label cards in its stores as a convenience to customers who prefer to pay in person rather than by mailing their payments to Wells Fargo. Revenue from CDI construction contracts is generally recognized by applying percentages of completion for each period to the total estimated profits for the respective contracts. The length of each contract varies but is typically nine to eighteen months. The percentages of completion are determined by relating the actual costs of work performed to date to the current estimated total costs of the respective contracts. |
Gift Card Revenue Recognition | Gift Card Revenue Recognition —The Company establishes a liability upon the sale of a gift card. The liability is relieved and revenue is recognized when gift cards are redeemed for merchandise. Gift card breakage income is determined based upon historical redemption patterns. The Company uses a homogeneous pool to recognize gift card breakage and will recognize income over the period when the likelihood of the gift card being redeemed is remote and the Company determines that it does not have a legal obligation to remit the value of unredeemed gift cards to the relevant jurisdiction as abandoned property. At that time, the Company will recognize breakage income over the performance period for those gift cards (i.e. 60 months ) and will record it in service charges and other income. |
Advertising | Advertising —Advertising and promotional costs, which include newspaper, magazine, Internet, broadcast and other media advertising, are expensed as incurred and were approximately $50 million , $56 million and $65 million , net of cooperative advertising reimbursements of $29.3 million , $31.6 million and $34.1 million for fiscal years 2015, 2014 and 2013, respectively. The Company records net advertising expenses in selling, general and administrative expenses. |
Income Taxes | Income Taxes —Income taxes are recognized for the amount of taxes payable for the current year and deferred tax assets and liabilities for the future tax consequence of events that have been recognized differently in the financial statements than for tax purposes. Deferred tax assets and liabilities are established using statutory tax rates and are adjusted for tax rate changes. Tax positions are analyzed to determine whether it is "more likely than not" that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the financial statements. For those tax positions where it is not "more likely than not" that a tax benefit will be sustained, no tax benefit is recognized. The Company classifies accrued interest expense and penalties relating to income tax in the consolidated financial statements as income tax expense. |
Shipping and Handling | Shipping and Handling —The Company records shipping and handling reimbursements in service charges and other income. The Company records shipping and handling costs in cost of sales. |
Defined Benefit Retirement Plans | Defined Benefit Retirement Plans —The Company's defined benefit retirement plan costs are accounted for using actuarial valuations. The Company recognizes the funded status of its defined benefit pension plans on the balance sheet and recognizes changes in the funded status that arise during the period but that are not recognized as components of net periodic benefit cost, within other comprehensive income, net of income taxes. |
Income on and Equity in Losses of Joint Ventures | 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 distributions of excess cash from a mall joint venture. |
Comprehensive Income | Comprehensive Income —Comprehensive income is defined as the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. It consists of the net income or loss and other gains and losses affecting stockholders' equity that, under GAAP, are excluded from net income or loss. One such exclusion is the amortization of retirement plan and other retiree benefit adjustments, which is the only item impacting our accumulated other comprehensive loss. |
Supply Concentration | Supply Concentration —The Company purchases merchandise from many sources and does not believe that the Company was dependent on any one supplier during fiscal 2015. |
Description of Business and S26
Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of estimated useful lives | Buildings and leasehold improvements 20 - 40 years Furniture, fixtures and equipment 3 - 10 years |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Segment Reporting [Abstract] | |
Summary of percentage of net sales by segment and major product line | Percentage of Net Sales Fiscal 2015 Fiscal 2014 Fiscal 2013 Retail operations segment: Cosmetics 14 % 14 % 15 % Ladies' apparel 22 22 22 Ladies' accessories and lingerie 16 16 16 Juniors' and children's apparel 8 9 8 Men's apparel and accessories 17 17 17 Shoes 16 16 16 Home and furniture 4 4 5 97 98 99 Construction segment 3 2 1 Total 100 % 100 % 100 % |
Schedule of segment information | (in thousands of dollars) Retail Operations Fiscal 2015 Construction Consolidated Net sales from external customers $ 6,388,769 $ 206,857 $ 6,595,626 Gross profit 2,237,077 7,744 2,244,821 Depreciation and amortization 249,508 503 250,011 Interest and debt expense (income), net 60,989 (66 ) 60,923 Income before income taxes and income on and equity in losses of joint ventures 404,582 4,202 408,784 Income on and equity in losses of joint ventures 1,356 — 1,356 Total assets 3,804,718 60,907 3,865,625 (in thousands of dollars) Retail Operations Fiscal 2014 Construction Consolidated Net sales from external customers $ 6,490,387 $ 130,667 $ 6,621,054 Gross profit 2,342,109 6,340 2,348,449 Depreciation and amortization 250,371 312 250,683 Interest and debt expense (income), net 61,352 (46 ) 61,306 Income before income taxes and income on and equity in losses of joint ventures 508,730 2,038 510,768 Income on and equity in losses of joint ventures 565 — 565 Total assets 4,111,744 58,327 4,170,071 (in thousands of dollars) Retail Operations Fiscal 2013 Construction Consolidated Net sales from external customers $ 6,439,304 $ 92,343 $ 6,531,647 Gross profit 2,301,271 6,661 2,307,932 Depreciation and amortization 255,240 250 255,490 Interest and debt expense (income), net 64,572 (67 ) 64,505 Income before income taxes and income on and equity in losses of joint ventures 494,452 1,772 496,224 Income on and equity in losses of joint ventures 847 — 847 Total assets 4,011,771 38,968 4,050,739 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of maturities of long-term debt | Long-term debt maturities over the next five years are (in millions): Fiscal Year Long-Term Debt Maturities 2016 $ — 2017 87.2 2018 161.0 2019 — 2020 — |
Schedule of net interest and debt expense | (in thousands of dollars) Fiscal 2015 Fiscal 2014 Fiscal 2013 Long-term debt: Interest $ 57,346 $ 57,739 $ 59,462 Amortization of debt expense 1,555 1,438 1,641 58,901 59,177 61,103 Interest on capital lease obligations 588 644 796 Revolving credit facility expenses 2,739 2,719 3,628 Investment interest income (1,305 ) (1,234 ) (1,022 ) $ 60,923 $ 61,306 $ 64,505 |
Trade Accounts Payable and Ac29
Trade Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of trade accounts payable and accrued expenses | (in thousands of dollars) January 30, 2016 January 31, 2015 Trade accounts payable $ 494,268 $ 530,809 Accrued expenses: Taxes, other than income 59,138 61,341 Salaries, wages and employee benefits 57,240 59,626 Liability to customers 56,397 51,931 Interest 13,301 13,486 Rent 3,631 3,934 Other 7,335 9,295 $ 691,310 $ 730,422 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for federal and state income taxes | (in thousands of dollars) Fiscal 2015 Fiscal 2014 Fiscal 2013 Current: Federal $ 173,786 $ 206,387 $ 176,291 State 2,959 4,020 4,438 176,745 210,407 180,729 Deferred: Federal (33,708 ) (32,051 ) (8,990 ) State (2,267 ) 1,124 1,661 (35,975 ) (30,927 ) (7,329 ) $ 140,770 $ 179,480 $ 173,400 |
Schedule of reconciliation between the Company's income tax provision and income taxes using the federal income tax rate | (in thousands of dollars) Fiscal 2015 Fiscal 2014 Fiscal 2013 Income tax at the statutory federal rate (inclusive of income on and equity in losses of joint ventures) $ 143,549 $ 178,967 $ 173,975 State income taxes, net of federal benefit (inclusive of income on and equity in losses of joint ventures) 2,488 4,426 8,013 Net changes in unrecognized tax benefits, interest and penalties /reserves (367 ) (1,386 ) (481 ) Tax benefit of federal credits (2,018 ) (2,810 ) (3,037 ) Changes in cash surrender value of life insurance policies (705 ) (731 ) (986 ) Changes in valuation allowance (1,473 ) 1,485 (5,501 ) Tax benefit of dividends paid to ESOP (763 ) (802 ) (581 ) Other 59 331 1,998 $ 140,770 $ 179,480 $ 173,400 |
Schedule of deferred tax assets and liabilities | (in thousands of dollars) January 30, January 31, Property and equipment bases and depreciation differences $ 245,404 $ 265,764 Prepaid expenses 57,672 58,998 Joint venture bases differences 12,985 14,351 Differences between book and tax bases of inventory 43,116 52,486 Other 6,551 3,599 Total deferred tax liabilities 365,728 395,198 Accruals not currently deductible (88,277 ) (90,192 ) Net operating loss carryforwards (74,094 ) (77,774 ) State income taxes (1,123 ) (1,320 ) Other (3,361 ) (1,573 ) Total deferred tax assets (166,855 ) (170,859 ) Net operating loss valuation allowance 52,724 54,659 Net deferred tax assets (114,131 ) (116,200 ) Net deferred income taxes $ 251,597 $ 278,998 |
Schedule of classification of deferred tax assets and liabilities | (in thousands of dollars) January 30, January 31, Net deferred tax assets—other assets $ (6,473 ) $ — Net deferred tax liabilities—deferred income taxes 258,070 278,998 Net deferred income taxes $ 251,597 $ 278,998 |
Schedule of reconciliation of beginning and ending amount of unrecognized tax benefits | (in thousands of dollars) Fiscal 2015 Fiscal 2014 Fiscal 2013 Unrecognized tax benefits at beginning of period $ 4,806 $ 6,538 $ 5,432 Gross increases—tax positions in prior period — 55 967 Gross decreases—tax positions in prior period (734 ) (1,689 ) (733 ) Gross increases—current period tax positions 317 665 1,207 Settlements — (545 ) (335 ) Lapse of statutes of limitation (124 ) (218 ) — Unrecognized tax benefits at end of period $ 4,265 $ 4,806 $ 6,538 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of accumulated benefit obligation, changes in projected benefit obligation, change in Pension Plan assets, funded status and reconciliation to amounts recognized in the consolidated balance sheets | (in thousands of dollars) January 30, January 31, Change in benefit obligation: Benefit obligation at beginning of year $ 196,922 $ 173,870 Service cost 3,932 4,396 Interest cost 6,736 7,644 Actuarial (gain) loss (18,788 ) 13,850 Benefits paid (3,992 ) (2,838 ) Benefit obligation at end of year $ 184,810 $ 196,922 Change in Pension Plan assets: Fair value of Pension Plan assets at beginning of year $ — $ — Employer contribution 3,992 2,838 Benefits paid (3,992 ) (2,838 ) Fair value of Pension Plan assets at end of year $ — $ — Funded status (Pension Plan assets less benefit obligation) $ (184,810 ) $ (196,922 ) Amounts recognized in the balance sheets: Accrued benefit liability $ (184,810 ) $ (196,922 ) Net amount recognized $ (184,810 ) $ (196,922 ) Pretax amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 27,669 $ 50,153 Prior service cost — — Net amount recognized $ 27,669 $ 50,153 The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic cost in 2016: Net actuarial loss $ 1,204 Prior service cost — Net amount recognized $ 1,204 Accumulated benefit obligation at end of year $ (177,228 ) $ (188,126 ) |
Schedule of weighted average assumption | Fiscal 2015 Fiscal 2014 Fiscal 2013 Discount rate—net periodic pension cost 3.5 % 4.4 % 4.1 % Discount rate—benefit obligations 4.2 % 3.5 % 4.4 % Rate of compensation increases 3.0 % 3.0 % 3.0 % |
Schedule of components of net periodic benefit costs | (in thousands of dollars) Fiscal 2015 Fiscal 2014 Fiscal 2013 Components of net periodic benefit costs: Service cost $ 3,932 $ 4,396 $ 4,237 Interest cost 6,736 7,644 6,782 Net actuarial loss 3,697 2,660 3,012 Amortization of prior service cost — — 96 Plan curtailment gain — — (1,480 ) Net periodic benefit costs $ 14,365 $ 14,700 $ 12,647 Other changes in benefit obligations recognized in other comprehensive (income) loss: Net actuarial (gain) loss $ (22,485 ) $ 11,190 $ (4,225 ) Amortization of prior service cost — — (96 ) Total recognized in other comprehensive (income) loss $ (22,485 ) $ 11,190 $ (4,321 ) Total recognized in net periodic benefit costs and other comprehensive income or loss $ (8,120 ) $ 25,890 $ 8,326 |
Schedule of estimated future benefits payments for the nonqualified benefit plan | (in thousands of dollars) Fiscal Year 2016 $ 4,027 * 2017 6,039 2018 6,453 2019 6,515 2020 9,291 2021 - 2025 57,258 Total payments for next ten fiscal years $ 89,583 ___________________________________ * The estimated benefit payment for fiscal 2016 also represents the amount the Company expects to contribute to the Pension Plan for fiscal 2016. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of capital stock | Type Par Value Shares Authorized Preferred (5% cumulative) $ 100.00 5,000 Additional preferred $ 0.01 10,000,000 Class A, common $ 0.01 289,000,000 Class B, common $ 0.01 11,000,000 |
Accumulated Other Comprehensi33
Accumulated Other Comprehensive Loss ("AOCL") (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Equity [Abstract] | |
Reclassification Out of Accumulated Other Comprehensive Income | Amount Reclassified from AOCL Affected Line Item in the Statement Where Net Income Is Presented Details about AOCL Components Fiscal 2015 Fiscal 2014 Defined benefit pension plan items Amortization of prior service cost $ — $ — (1) Amortization of actuarial losses 3,697 2,660 (1) 3,697 2,660 Total before tax 1,410 1,017 Income tax expense $ 2,287 $ 1,643 Total net of tax _______________________________ (1) These items are included in the computation of net periodic pension cost. See Note 8 for additional information. |
Change in Accumulated Other Comprehensive Income (Loss) | Defined Benefit Fiscal 2015 Fiscal 2014 Beginning balance $ 31,029 $ 24,074 Other comprehensive (income) loss before reclassifications (11,624 ) 8,598 Amounts reclassified from AOCL (2,287 ) (1,643 ) Net other comprehensive (income) loss (13,911 ) 6,955 Ending balance $ 17,118 $ 31,029 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per common share | Fiscal 2015 Fiscal 2014 Fiscal 2013 (in thousands, except per share data) Basic Diluted Basic Diluted Basic Diluted Net earnings available for per-share calculation $ 269,370 $ 269,370 $ 331,853 $ 331,853 $ 323,671 $ 323,671 Average shares of common stock outstanding 39,005 39,005 42,603 42,603 45,586 45,586 Dilutive effect of stock-based compensation — — — — — — Total average equivalent shares 39,005 39,005 42,603 42,603 45,586 45,586 Per share of common stock: Net income $ 6.91 $ 6.91 $ 7.79 $ 7.79 $ 7.10 $ 7.10 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of rental expense | (in thousands of dollars) Fiscal 2015 Fiscal 2014 Fiscal 2013 Operating leases: Buildings: Minimum rentals $ 15,546 $ 15,699 $ 15,767 Contingent rentals 4,914 4,959 5,196 Equipment 6,272 6,319 5,870 $ 26,732 $ 26,977 $ 26,833 |
Schedule of future minimum rental commitments | (in thousands of dollars) Fiscal Year Operating Leases Capital Leases 2016 $ 21,269 $ 3,791 2017 15,748 3,699 2018 10,541 1,428 2019 4,368 1,428 2020 1,618 1,077 After 2020 789 726 Total minimum lease payments $ 54,333 12,149 Less amount representing interest (1,596 ) Present value of net minimum lease payments (of which $3,284 is currently payable) $ 10,553 |
Quarterly Results of Operatio36
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly results of operations | Fiscal 2015, Three Months Ended (in thousands of dollars, except per share data) May 2 August 1 October 31 January 30 Net sales $ 1,573,493 $ 1,513,778 $ 1,434,654 $ 2,073,701 Gross profit 613,074 493,447 521,734 616,566 Net income 109,571 29,950 45,744 84,105 Diluted earnings per share: Net income $ 2.66 $ 0.75 $ 1.19 $ 2.31 Fiscal 2014, Three Months Ended (in thousands of dollars, except per share data) May 3 August 2 November 1 January 31 Net sales $ 1,551,314 $ 1,474,484 $ 1,459,781 $ 2,135,475 Gross profit 612,090 498,215 535,338 702,806 Net income 111,683 34,449 55,231 130,490 Diluted earnings per share: Net income $ 2.56 $ 0.80 $ 1.30 $ 3.17 |
Description of Business and S37
Description of Business and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of days in a fiscal year | 364 days | 364 days | 364 days |
Cash Equivalents and Restricted Cash | |||
Maximum original maturity period of highly liquid investments classified as cash equivalents | 3 months | ||
Receivable settlement period, minimum | 2 days | ||
Receivable settlement period, maximum | 3 days | ||
Restricted cash and cash equivalents, maximum days restricted | 180 days | ||
Accounts Receivable | |||
Number of days in which accounts receivable are ordinarily due | 30 days | ||
Number of days in which contract retentions are due | 30 days | ||
Minimum number of days past due for accounts receivable to be considered delinquent | 120 days | ||
Merchandise Inventories | |||
Percentage of inventories valued at the lower of cost or market using LIFO retail inventory method | 96.00% | ||
Remaining percentage of inventories valued at the lower of cost or market using the average cost or specific identified cost methods | 4.00% | ||
Property and Equipment | |||
Disposal group, including discontinued operation, long lived assets | $ 4,000 | ||
Accumulated capitalized interest costs | 2,100 | $ 1,700 | |
Gain on disposal of assets | 12,626 | 6,069 | $ 12,379 |
Depreciation expense | $ 250,011 | 250,683 | 255,490 |
Buildings and leasehold improvements | Minimum | |||
Property and Equipment | |||
Estimated useful lives | 20 years | ||
Buildings and leasehold improvements | Maximum | |||
Property and Equipment | |||
Estimated useful lives | 40 years | ||
Furniture, fixtures and equipment | Minimum | |||
Property and Equipment | |||
Estimated useful lives | 3 years | ||
Furniture, fixtures and equipment | Maximum | |||
Property and Equipment | |||
Estimated useful lives | 10 years | ||
Property and equipment | |||
Property and Equipment | |||
Gain on disposal of assets | $ 12,600 | $ 6,400 | $ 600 |
Description of Business and S38
Description of Business and Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Other Assets | |||
Deferred charge related to the REIT transaction | $ 184,700 | $ 191,800 | |
Schedule of Equity and Cost Method Investments [Line Items] | |||
Gain on disposal of assets | (12,626) | (6,069) | $ (12,379) |
Proceeds from disposal of assets | 25,503 | 14,767 | 18,295 |
Asset impairment and store closing charges | 0 | 0 | 5,353 |
Distribution from joint venture | 0 | 1,055 | 0 |
Income on and equity in losses of joint ventures | 1,356 | 565 | 847 |
Revenue Recognition | |||
Income received from private label credit cards under the Alliance | $ 105,000 | 112,000 | 113,000 |
Original term of Wells Fargo Alliance | 10 years | ||
Gift Card Revenue Recognition | |||
Gift card breakage income, recognition period | 60 months | ||
Gift card liabilities | $ 60,000 | 60,200 | |
Advertising | |||
Advertising expense | 50,000 | 56,000 | 65,000 |
Cooperative advertisement reimbursements | $ 29,300 | $ 31,600 | 34,100 |
Minimum | |||
Revenue Recognition | |||
Typical term of CDI construction contracts | 9 months | ||
Maximum | |||
Revenue Recognition | |||
Typical term of CDI construction contracts | 18 months | ||
Sale of Investment [Member] | |||
Schedule of Equity and Cost Method Investments [Line Items] | |||
Gain on disposal of assets | (11,700) | ||
Proceeds from disposal of assets | $ 15,700 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016USD ($) | Oct. 31, 2015USD ($) | Aug. 01, 2015USD ($) | May. 02, 2015USD ($) | Jan. 31, 2015USD ($) | Nov. 01, 2014USD ($) | Aug. 02, 2014USD ($) | May. 03, 2014USD ($) | Jan. 30, 2016USD ($)segmentstore | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | |
Business Segments | |||||||||||
Number of reportable segments | segment | 2 | ||||||||||
Percentage of net sales by segment and major product line | 100.00% | 100.00% | 100.00% | ||||||||
Net sales from external customers | $ 2,073,701 | $ 1,434,654 | $ 1,513,778 | $ 1,573,493 | $ 2,135,475 | $ 1,459,781 | $ 1,474,484 | $ 1,551,314 | $ 6,595,626 | $ 6,621,054 | $ 6,531,647 |
Gross profit | 616,566 | $ 521,734 | $ 493,447 | $ 613,074 | 702,806 | $ 535,338 | $ 498,215 | $ 612,090 | 2,244,821 | 2,348,449 | 2,307,932 |
Depreciation and amortization | 250,011 | 250,683 | 255,490 | ||||||||
Interest and debt expense (income), net | 60,923 | 61,306 | 64,505 | ||||||||
Income before income taxes and income on and equity in losses of joint ventures | 408,784 | 510,768 | 496,224 | ||||||||
Income on and equity in losses of joint ventures | 1,356 | 565 | 847 | ||||||||
Total assets | 3,865,625 | 4,170,071 | 3,865,625 | 4,170,071 | 4,050,739 | ||||||
Intersegment revenues | $ 6,754,545 | $ 6,780,129 | $ 6,691,777 | ||||||||
Retail operations | |||||||||||
Business Segments | |||||||||||
Number of store formats | store | 1 | ||||||||||
Percentage of net sales by segment and major product line | 97.00% | 98.00% | 99.00% | ||||||||
Net sales from external customers | $ 6,388,769 | $ 6,490,387 | $ 6,439,304 | ||||||||
Gross profit | 2,237,077 | 2,342,109 | 2,301,271 | ||||||||
Depreciation and amortization | 249,508 | 250,371 | 255,240 | ||||||||
Interest and debt expense (income), net | 60,989 | 61,352 | 64,572 | ||||||||
Income before income taxes and income on and equity in losses of joint ventures | 404,582 | 508,730 | 494,452 | ||||||||
Income on and equity in losses of joint ventures | 1,356 | 565 | 847 | ||||||||
Total assets | 3,804,718 | 4,111,744 | $ 3,804,718 | $ 4,111,744 | $ 4,011,771 | ||||||
Retail operations | Cosmetics | |||||||||||
Business Segments | |||||||||||
Percentage of net sales by segment and major product line | 14.00% | 14.00% | 15.00% | ||||||||
Retail operations | Ladies' apparel | |||||||||||
Business Segments | |||||||||||
Percentage of net sales by segment and major product line | 22.00% | 22.00% | 22.00% | ||||||||
Retail operations | Ladies' accessories and lingerie | |||||||||||
Business Segments | |||||||||||
Percentage of net sales by segment and major product line | 16.00% | 16.00% | 16.00% | ||||||||
Retail operations | Juniors' and children's apparel | |||||||||||
Business Segments | |||||||||||
Percentage of net sales by segment and major product line | 8.00% | 9.00% | 8.00% | ||||||||
Retail operations | Men's apparel and accessories | |||||||||||
Business Segments | |||||||||||
Percentage of net sales by segment and major product line | 17.00% | 17.00% | 17.00% | ||||||||
Retail operations | Shoes | |||||||||||
Business Segments | |||||||||||
Percentage of net sales by segment and major product line | 16.00% | 16.00% | 16.00% | ||||||||
Retail operations | Home and furniture | |||||||||||
Business Segments | |||||||||||
Percentage of net sales by segment and major product line | 4.00% | 4.00% | 5.00% | ||||||||
Construction | |||||||||||
Business Segments | |||||||||||
Percentage of net sales by segment and major product line | 3.00% | 2.00% | 1.00% | ||||||||
Net sales from external customers | $ 206,857 | $ 130,667 | $ 92,343 | ||||||||
Gross profit | 7,744 | 6,340 | 6,661 | ||||||||
Depreciation and amortization | 503 | 312 | 250 | ||||||||
Interest and debt expense (income), net | (66) | (46) | (67) | ||||||||
Income before income taxes and income on and equity in losses of joint ventures | 4,202 | 2,038 | 1,772 | ||||||||
Income on and equity in losses of joint ventures | 0 | 0 | 0 | ||||||||
Total assets | $ 60,907 | $ 58,327 | 60,907 | 58,327 | 38,968 | ||||||
Intersegment Eliminations [Member] | |||||||||||
Business Segments | |||||||||||
Intersegment revenues | $ 77,700 | $ 82,500 | $ 35,000 |
Revolving Credit Agreement (Det
Revolving Credit Agreement (Details) | 12 Months Ended | |
Jan. 30, 2016USD ($) | Jan. 31, 2015USD ($) | |
Line of Credit Facility [Abstract] | ||
Revolving credit facility | $ 1,000,000,000 | |
Credit agreement | ||
Outstanding borrowings under the credit facility | 0 | |
Letters of credit issued | 25,800,000 | |
Unutilized credit facility borrowing capacity | $ 974,000,000 | |
Annual commitment fee (as a percent) | 0.20% | |
Weighted-average borrowings | $ 41,300,000 | $ 13,100,000 |
LIBOR | ||
Credit agreement | ||
Reference rate | LIBOR | |
Percentage points added to reference rate | 1.375% | |
Revolving Credit Facility [Member] | Maximum | ||
Credit agreement | ||
Maximum Leverage Ratio Under Credit Facility | 4 | |
Revolving Credit Facility [Member] | Minimum | ||
Credit agreement | ||
Minimum Coverage Ratio Under Credit Facility | 2.5 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Long-term debt | |||
Long-term debt | $ 614,785 | $ 614,785 | |
Maturity of long-term debt | |||
2,015 | 0 | ||
2,016 | 87,200 | ||
2,017 | 161,000 | ||
2,018 | 0 | ||
2,019 | 0 | ||
Net interest and debt expense | |||
Interest | 57,346 | 57,739 | $ 59,462 |
Amortization of debt expense | 1,555 | 1,438 | 1,641 |
Total interest expense | 58,901 | 59,177 | 61,103 |
Interest on capital lease obligations | 588 | 644 | 796 |
Revolving credit facility expenses | 2,739 | 2,719 | 3,628 |
Investment interest income | (1,305) | (1,234) | (1,022) |
Interest and debt expense, net | 60,923 | 61,306 | 64,505 |
Interest paid | 62,900 | 62,900 | $ 54,700 |
Unsecured notes, at rates ranging from 6.63% to 7.88%, due 2017 through 2028 | |||
Long-term debt | |||
Long-term debt | $ 614,800 | $ 614,800 | |
Interest rate on notes, minimum (as a percent) | 6.625% | 6.625% | |
Interest rate on notes, maximum (as a percent) | 7.875% | 7.875% |
Trade Accounts Payable and Ac42
Trade Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Trade accounts payable and accrued expenses | ||
Trade accounts payable | $ 494,268 | $ 530,809 |
Accrued expenses: | ||
Taxes, other than income | 59,138 | 61,341 |
Salaries, wages and employee benefits | 57,240 | 59,626 |
Liability to customers | 56,397 | 51,931 |
Interest | 13,301 | 13,486 |
Rent | 3,631 | 3,934 |
Other | 7,335 | 9,295 |
Trade accounts payable and accrued expenses | $ 691,310 | $ 730,422 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Current: | |||
Federal | $ 173,786 | $ 206,387 | $ 176,291 |
State | 2,959 | 4,020 | 4,438 |
Total current provision for income taxes | 176,745 | 210,407 | 180,729 |
Deferred: | |||
Federal | (33,708) | (32,051) | (8,990) |
State | (2,267) | 1,124 | 1,661 |
Total deferred provision for income taxes | (35,975) | (30,927) | (7,329) |
Income taxes (benefit) | $ 140,770 | $ 179,480 | $ 173,400 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Reconciliation between the entity's income tax provision and income taxes using federal statutory income tax rate | |||
Income tax at the statutory federal rate (inclusive of income on and equity in losses of joint ventures) | $ 143,549 | $ 178,967 | $ 173,975 |
State income taxes, net of federal benefit (inclusive of income on and equity in losses of joint ventures) | 2,488 | 4,426 | 8,013 |
Net changes in unrecognized tax benefits, interest and penalties /reserves | (367) | (1,386) | (481) |
Tax benefit of federal credits | (2,018) | (2,810) | (3,037) |
Changes in cash surrender value of life insurance policies | (705) | (731) | (986) |
Changes in valuation allowance | (1,473) | 1,485 | (5,501) |
Tax benefit of dividends paid to ESOP | (763) | (802) | (581) |
Other | 59 | 331 | 1,998 |
Income taxes (benefit) | $ 140,770 | $ 179,480 | $ 173,400 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Components of deferred tax assets and liabilities | ||
Property and equipment bases and depreciation differences | $ 245,404 | $ 265,764 |
Prepaid expenses | 57,672 | 58,998 |
Joint venture bases differences | 12,985 | 14,351 |
Differences between book and tax bases of inventory | 43,116 | 52,486 |
Other | 6,551 | 3,599 |
Total deferred tax liabilities | 365,728 | 395,198 |
Accruals not currently deductible | (88,277) | (90,192) |
Net operating loss carryforwards | (74,094) | (77,774) |
State income taxes | (1,123) | (1,320) |
Other | (3,361) | (1,573) |
Total deferred tax assets | (166,855) | (170,859) |
Net operating loss valuation allowance | 52,724 | 54,659 |
Net deferred tax assets | (114,131) | (116,200) |
Net deferred income taxes | $ 251,597 | 278,998 |
Adjustments for New Accounting Pronouncement [Member] | ||
Components of deferred tax assets and liabilities | ||
Net deferred income taxes | $ 84,700 |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Thousands | Jan. 30, 2016 | Jan. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Portion of unrecognized tax benefits that, if recognized, would affect the effective tax rate | $ 2,500 | $ 2,600 |
Net deferred tax assets—other assets | 6,473 | 0 |
Net deferred tax liabilities—deferred income taxes | 258,070 | 278,998 |
Net deferred income taxes | $ 251,597 | $ 278,998 |
Income Taxes (Details 5)
Income Taxes (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Reconciliation of beginning and ending amount of unrecognized tax benefits | |||
Unrecognized tax benefits at beginning of period | $ 4,806 | $ 6,538 | $ 5,432 |
Gross increases—tax positions in prior period | 0 | 55 | 967 |
Gross decreases—tax positions in prior period | (734) | (1,689) | (733) |
Gross increases—current period tax positions | 317 | 665 | 1,207 |
Settlements | 0 | (545) | (335) |
Lapse of statutes of limitation | (124) | (218) | 0 |
Unrecognized tax benefits at end of period | 4,265 | 4,806 | 6,538 |
Income taxes paid, net of income tax refunds received | $ 183,600 | $ 189,700 | $ 173,800 |
Subordinated Debentures (Detail
Subordinated Debentures (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Note repurchase | ||
Outstanding amount | $ 200,000 | $ 200,000 |
Dillard's Capital Trust I | ||
Note repurchase | ||
Ownership interest percentage held in trust | 100.00% | |
Dillard's Capital Trust I | 7.5% capital securities due on August 1, 2038, subject to mandatory redemption | ||
Note repurchase | ||
Liquidation amount | $ 200,000 | |
Dividend rate (as a percent) | 7.50% | |
Liquidation amount per security (in dollars per share) | $ 25 | |
Dillard's Capital Trust I | 7.5% subordinated debentures due on August 1, 2038 | ||
Note repurchase | ||
Outstanding amount | $ 200,000 | |
Interest rate (as a percent) | 7.50% | |
Maximum number of consecutive quarters available for deferral of interest payment | 5 years |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |||
Employee contribution limit per calendar year | $ 18,000 | ||
Employee contribution limit per calendar year for employees attaining at least 50 years of age | $ 24,000 | ||
Requisite age of eligible employees for additional contribution | 50 years | ||
Employee contribution limit per calendar year (as a percent of eligible pay) | 75.00% | ||
Requisite service period of employee, to receive a employer's matching contribution | 1 year | ||
Employee's contribution matched by employer (as a percent of elective deferrals) | 6.00% | ||
Percentage of elective deferrals, matched 100% by employer | 1.00% | ||
Employer match of employee contributions of first 1% of elective deferrals (as a percent) | 100.00% | ||
Percentage of elective deferrals, matched 50% by employer | 5.00% | ||
Employer match of employee contributions of next 5% of elective deferrals (as a percent) | 50.00% | ||
Vesting period for employer's contribution | 2 years | ||
Benefit plan expense | $ 18,000,000 | ||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 196,922,000 | $ 173,870,000 | |
Service cost | 3,932,000 | 4,396,000 | $ 4,237,000 |
Interest cost | 6,736,000 | 7,644,000 | 6,782,000 |
Actuarial (gain) loss | (18,788,000) | 13,850,000 | |
Benefits paid | (3,992,000) | (2,838,000) | |
Benefit obligation at end of year | 184,810,000 | 196,922,000 | 173,870,000 |
Change in Pension Plan assets: | |||
Fair value of Pension Plan assets at beginning of year | 0 | 0 | |
Employer contribution | 3,992,000 | 2,838,000 | |
Benefits paid | (3,992,000) | (2,838,000) | |
Fair value of Pension Plan assets at end of year | 0 | 0 | $ 0 |
Funded status (Pension Plan assets less benefit obligation) | (184,810,000) | (196,922,000) | |
Amounts recognized in the balance sheets: | |||
Accrued benefit liability | (184,810,000) | (196,922,000) | |
Net amount recognized | (184,810,000) | (196,922,000) | |
Net actuarial loss | 27,669,000 | 50,153,000 | |
Prior service cost | 0 | 0 | |
Net amount recognized | 27,669,000 | 50,153,000 | |
Net actuarial loss | 1,204,000 | ||
Prior service cost | 0 | ||
Net amount recognized | 1,204,000 | ||
Accumulated benefit obligation at end of year | $ (177,228,000) | $ (188,126,000) |
Benefit Plans (Details 2)
Benefit Plans (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Weighted average assumptions | |||
Discount rate—net periodic pension cost | 3.50% | 4.40% | 4.10% |
Discount rate—benefit obligations | 4.20% | 3.50% | 4.40% |
Rate of compensation increases | 3.00% | 3.00% | 3.00% |
Components of net periodic benefit costs: | |||
Service cost | $ 3,932 | $ 4,396 | $ 4,237 |
Interest cost | 6,736 | 7,644 | 6,782 |
Net actuarial loss | 3,697 | 2,660 | 3,012 |
Amortization of prior service cost | 0 | 0 | 96 |
Plan curtailment gain | 0 | 0 | (1,480) |
Net periodic benefit costs | 14,365 | 14,700 | 12,647 |
Other changes in benefit obligations recognized in other comprehensive (income) loss: | |||
Net actuarial (gain) loss | (22,485) | 11,190 | (4,225) |
Other Comprehensive Income (Loss), Amortization, Pension and Other Postretirement Benefit Plans, Net Prior Service Cost Recognized in Net Periodic Benefit Cost, before Tax | 0 | 0 | (96) |
Total recognized in other comprehensive (income) loss | (22,485) | 11,190 | (4,321) |
Total recognized in net periodic benefit costs and other comprehensive income or loss | $ (8,120) | $ 25,890 | $ 8,326 |
Benefit Plans (Details 3)
Benefit Plans (Details 3) $ in Thousands | Jan. 30, 2016USD ($) | |
Estimated future benefits payments for the nonqualified benefit plan | ||
2,015 | $ 4,027 | [1] |
2,016 | 6,039 | |
2,017 | 6,453 | |
2,018 | 6,515 | |
2,019 | 9,291 | |
2021 - 2025 | 57,258 | |
Total payments for next ten fiscal years | $ 89,583 | |
[1] | The estimated benefit payment for fiscal 2016 also represents the amount the Company expects to contribute to the Pension Plan for fiscal 2016. |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 12 Months Ended |
Jan. 30, 2016$ / sharesshares | |
Capital stock | |
Number of Class A Common Stock shares received for conversion of each share of Class B Common Stock | 528 |
Preferred (5% cumulative) | |
Capital stock | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 100 |
Preferred stock, shares authorized | 5,000 |
Additional preferred | |
Capital stock | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 |
Common stock Class A | |
Capital stock | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 |
Common stock, shares authorized | 289,000,000 |
Percentage of Board of Directors members that common stock holders have a right to elect | 33.00% |
Number of Class A Common Stock shares received for conversion of each share of Class B Common Stock | 1 |
Common stock Class B (convertible) | |
Capital stock | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 |
Common stock, shares authorized | 11,000,000 |
Percentage of Board of Directors members that common stock holders have a right to elect | 66.00% |
Number of Class B common stock shares which are convertible into each Class A Common Stock share | 1 |
Stockholders' Equity (Details 2
Stockholders' Equity (Details 2) - USD ($) | 12 Months Ended | |||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 27, 2016 | |
Stock Repurchase Programs | ||||
Amount of shares repurchased | $ 500,000,000 | $ 290,408,000 | $ 301,566,000 | |
Number of shares repurchased | 5,306,737 | 2,780,743 | 3,851,516 | |
Average price of shares repurchased (in dollars per share) | $ 94.22 | $ 104.44 | $ 78.30 | |
Subsequent Event | ||||
Stock Repurchase Programs | ||||
Stock repurchase authorization | $ 500,000,000 | |||
November 2014 Stock Plan | ||||
Stock Repurchase Programs | ||||
Repurchase of common stock remaining authorization | $ 0 |
Accumulated Other Comprehensi54
Accumulated Other Comprehensive Loss ("AOCL") (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amortization of prior service cost | $ 0 | $ 0 | $ 96 | ||||||||
Amortization of actuarial losses | 3,697 | 2,660 | 3,012 | ||||||||
Income before income taxes and income on and equity in losses of joint ventures | (408,784) | (510,768) | (496,224) | ||||||||
Income taxes (benefit) | (140,770) | (179,480) | (173,400) | ||||||||
Net income | $ (84,105) | $ (45,744) | $ (29,950) | $ (109,571) | $ (130,490) | $ (55,231) | $ (34,449) | $ (111,683) | (269,370) | (331,853) | (323,671) |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||||||||
Beginning balance | 31,029 | 31,029 | |||||||||
Ending balance | 17,118 | 31,029 | 17,118 | 31,029 | |||||||
Defined benefit pension plans | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||||||||
Beginning balance | $ 31,029 | $ 24,074 | 31,029 | 24,074 | |||||||
Other comprehensive (income) loss before reclassifications | (11,624) | 8,598 | |||||||||
Amounts reclassified from AOCL | (2,287) | (1,643) | |||||||||
Net other comprehensive (income) loss | (13,911) | 6,955 | |||||||||
Ending balance | $ 17,118 | $ 31,029 | 17,118 | 31,029 | $ 24,074 | ||||||
Defined benefit pension plans | Amount Reclassified from AOCL | |||||||||||
Reclassification Adjustment Out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amortization of prior service cost | 0 | 0 | |||||||||
Amortization of actuarial losses | 3,697 | 2,660 | |||||||||
Income before income taxes and income on and equity in losses of joint ventures | 3,697 | 2,660 | |||||||||
Income taxes (benefit) | 1,410 | 1,017 | |||||||||
Net income | $ 2,287 | $ 1,643 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Basic: | |||||||||||
Net earnings available for per-share calculation | $ 84,105 | $ 45,744 | $ 29,950 | $ 109,571 | $ 130,490 | $ 55,231 | $ 34,449 | $ 111,683 | $ 269,370 | $ 331,853 | $ 323,671 |
Average shares of common stock outstanding | 39,005,000 | 42,603,000 | 45,586,000 | ||||||||
Net income per share of common stock (in dollars per share) | $ 6.91 | $ 7.79 | $ 7.10 | ||||||||
Diluted: | |||||||||||
Net earnings available for per-share calculation | $ 84,105 | $ 45,744 | $ 29,950 | $ 109,571 | $ 130,490 | $ 55,231 | $ 34,449 | $ 111,683 | $ 269,370 | $ 331,853 | $ 323,671 |
Average shares of common stock outstanding | 39,005,000 | 42,603,000 | 45,586,000 | ||||||||
Dilutive effect of stock-based compensation (in shares) | 0 | 0 | 0 | ||||||||
Total weighted average equivalent shares | 39,005,000 | 42,603,000 | 45,586,000 | ||||||||
Net income per share of common stock (in dollars per share) | $ 2.31 | $ 1.19 | $ 0.75 | $ 2.66 | $ 3.17 | $ 1.30 | $ 0.80 | $ 2.56 | $ 6.91 | $ 7.79 | $ 7.10 |
Total stock options outstanding (in shares) | 0 | 0 | 0 | 0 | 0 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - shares | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total stock options outstanding (in shares) | 0 | 0 | 0 |
Number of shares returned tendered relative to exercise | 0 | 0 | 0 |
Commitments and Contingencies57
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Operating leases: | |||
Rentals | $ 26,732,000 | $ 26,977,000 | $ 26,833,000 |
Capital Leases | |||
Current portion of capital lease obligations | 3,284,000 | 840,000 | |
Capital and operating leases | |||
Commitment to incur costs to acquire, complete and furnish certain stores and equipment | 16,000,000 | ||
Outstanding letters of credit under the Company's revolving credit facility | 25,800,000 | ||
Revolving credit facility maximum borrowing capacity | $ 1,000,000,000 | ||
Minimum | |||
Capital and operating leases | |||
Renewal period of leased property | 3 years | ||
Maximum | |||
Capital and operating leases | |||
Renewal period of leased property | 25 years | ||
Buildings | |||
Operating leases: | |||
Minimum rentals | $ 15,546,000 | 15,699,000 | 15,767,000 |
Contingent rentals | 4,914,000 | 4,959,000 | 5,196,000 |
Equipment | |||
Operating leases: | |||
Rentals | 6,272,000 | $ 6,319,000 | $ 5,870,000 |
Buildings and equipment | |||
Operating Leases | |||
2,015 | 21,269,000 | ||
2,016 | 15,748,000 | ||
2,017 | 10,541,000 | ||
2,018 | 4,368,000 | ||
2,019 | 1,618,000 | ||
After 2,020 | 789,000 | ||
Total minimum lease payments | 54,333,000 | ||
Capital Leases | |||
2,015 | 3,791,000 | ||
2,016 | 3,699,000 | ||
2,017 | 1,428,000 | ||
2,018 | 1,428,000 | ||
2,019 | 1,077,000 | ||
After 2,020 | 726,000 | ||
Total minimum lease payments | 12,149,000 | ||
Less amount representing interest | (1,596,000) | ||
Present value of net minimum lease payments (of which $3,284 is currently payable) | 10,553,000 | ||
Current portion of capital lease obligations | $ 3,284,000 |
Asset Impairment and Store Cl58
Asset Impairment and Store Closing Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Asset Impairment and Store Closing Charges | |||
Pretax charges for asset impairment and store closing costs | $ 0 | $ 0 | $ 5,353 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jan. 31, 2015 | Jan. 30, 2016 | |
Fair value disclosures | ||
Subordinated debentures | $ 200,000 | $ 200,000 |
Cost-method investments, other than temporary impairment | 5,400 | |
Fair Value of Assets | ||
Fair value disclosures | ||
Long-term debt, including current portion, fair value | 678,000 | 695,000 |
Subordinated debentures | 207,000 | 204,000 |
Carrying value | ||
Fair value disclosures | ||
Long-term debt, including current portion | 615,000 | |
Subordinated debentures | $ 200,000 | $ 200,000 |
Quarterly Results of Operatio60
Quarterly Results of Operations (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 2,073,701 | $ 1,434,654 | $ 1,513,778 | $ 1,573,493 | $ 2,135,475 | $ 1,459,781 | $ 1,474,484 | $ 1,551,314 | $ 6,595,626 | $ 6,621,054 | $ 6,531,647 |
Gross profit | 616,566 | 521,734 | 493,447 | 613,074 | 702,806 | 535,338 | 498,215 | 612,090 | 2,244,821 | 2,348,449 | 2,307,932 |
Net income | $ 84,105 | $ 45,744 | $ 29,950 | $ 109,571 | $ 130,490 | $ 55,231 | $ 34,449 | $ 111,683 | $ 269,370 | $ 331,853 | $ 323,671 |
Diluted earnings per share: | |||||||||||
Net income (in dollars per share) | $ 2.31 | $ 1.19 | $ 0.75 | $ 2.66 | $ 3.17 | $ 1.30 | $ 0.80 | $ 2.56 | $ 6.91 | $ 7.79 | $ 7.10 |
Quarterly Results of Operatio61
Quarterly Results of Operations (unaudited) (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jan. 30, 2016 | Oct. 31, 2015 | Nov. 01, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
(Gain) loss on disposal of assets | ||||||
Pretax charges for asset impairment and store closing costs | $ 0 | $ 0 | $ 5,353 | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 0 | 0 | 1,480 | |||
Gain on disposal of assets | $ 12,626 | $ 6,069 | $ 12,379 | |||
Sale of former retail store location | ||||||
(Gain) loss on disposal of assets | ||||||
Gain (loss) on disposal of assets, net of tax | $ 2,000 | $ 6,000 | $ 3,800 | |||
Gain (loss) on disposal of assets, per share, net of tax (in dollars per share) | $ 0.06 | $ 0.16 | $ 0.09 | |||
Gain on disposal of assets | $ 3,100 | $ 9,400 | $ 5,900 |