Dillard's (DDS) 10-Q 1 Dec 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Oct. 29, 2016	Nov. 26, 2016
Entity Registrant Name	DILLARDS INC
Entity Central Index Key	28,917
Document Type	10-Q
Document Period End Date	Oct. 29, 2016
Amendment Flag	false
Current Fiscal Year End Date	--01-28
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Common Stock Class A
Entity Common Stock, Shares Outstanding		29,386,967
Common Stock Class B
Entity Common Stock, Shares Outstanding		4,010,401

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 29, 2016	Jan. 30, 2016	Oct. 31, 2015
Current assets:
Cash and cash equivalents	$ 80,482	$ 202,869	$ 100,110
Accounts receivable	42,467	47,138	47,114
Merchandise inventories	1,901,991	1,374,505	1,933,472
Income Taxes Receivable, Current	4,284	0	0
Other current assets	61,243	44,371	70,175
Total current assets	2,090,467	1,668,883	2,150,871
Property and equipment (net of accumulated depreciation and amortization of $2,553,315, $2,385,012 and $2,493,815, respectively)	1,825,225	1,939,832	1,976,614
Other assets	268,536	255,186	250,915
Total assets	4,184,228	3,863,901	4,378,400
Current liabilities:
Trade accounts payable and accrued expenses	1,123,087	691,310	1,094,718
Current portion of capital lease obligations	3,258	3,284	3,263
Other Short-term Borrowings	17,000	0	126,000
Accrued Income Taxes, Current	0	56,622	16,567
Total current liabilities	1,143,345	751,216	1,240,548
Long-term debt	613,245	613,061	613,000
Capital lease obligations	4,249	7,269	7,507
Other liabilities	243,296	238,980	252,359
Deferred Tax Liabilities, Net, Noncurrent	243,888	258,070	247,831
Subordinated debentures	200,000	200,000	200,000
Commitments and contingencies
Stockholders’ equity:
Common stock	1,238	1,238	1,238
Additional paid-in capital	941,709	940,796	938,922
Accumulated other comprehensive loss	(16,559)	(17,118)	(29,314)
Retained earnings	4,099,256	3,994,211	3,912,626
Less treasury stock, at cost	(3,289,439)	(3,123,822)	(3,006,317)
Total stockholders’ equity	1,736,205	1,795,305	1,817,155
Total liabilities and stockholders’ equity	$ 4,184,228	$ 3,863,901	$ 4,378,400

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Oct. 29, 2016	Jan. 30, 2016	Oct. 31, 2015
Statement of Financial Position [Abstract]
Property and equipment, accumulated depreciation and amortization	$ 2,553,315	$ 2,385,012	$ 2,493,815

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2016	Oct. 31, 2015	Oct. 29, 2016	Oct. 31, 2015
Income Statement [Abstract]
Net sales	$ 1,365,609	$ 1,434,654	$ 4,321,296	$ 4,521,925
Service charges and other income	40,886	38,200	112,746	115,191
Total net sales, service charges and other income	1,406,495	1,472,854	4,434,042	4,637,116
Cost of sales	878,865	912,920	2,810,803	2,893,670
Selling, General and Administrative Expense	410,563	412,715	1,204,051	1,220,553
Depreciation and amortization	60,681	65,600	181,933	187,253
Rentals	5,668	5,804	17,538	17,280
Interest Expense	15,619	14,872	47,312	44,864
Loss (gain) on disposal of assets	23	(9,400)	(853)	(9,495)
Income before income taxes and income on and equity in earnings of joint ventures	35,076	70,343	173,258	282,991
Income taxes	12,290	24,970	60,980	98,660
Income on and equity in earnings of joint ventures	12	371	34	934
Net Income	22,798	45,744	112,312	185,265
Retained Earnings [Roll Forward]
Retained earnings at beginning of period	4,078,824	3,869,549	3,994,211	3,734,891
Cash dividends declared	(2,366)	(2,667)	(7,267)	(7,530)
Retained earnings at end of period	$ 4,099,256	$ 3,912,626	$ 4,099,256	$ 3,912,626
Earnings per share:
Earnings Per Share, Basic and Diluted	$ 0.67	$ 1.19	$ 3.24	$ 4.65
Cash dividends declared per common share (in dollars per share)	$ 0.07	$ 0.07	$ 0.21	$ 0.19

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2016	Oct. 31, 2015	Oct. 29, 2016	Oct. 31, 2015
Statement of Comprehensive Income [Abstract]
Net Income	$ 22,798	$ 45,744	$ 112,312	$ 185,265
Other comprehensive income:
Amortization of retirement plan and other retiree benefit adjustments (net of tax of $114, $352, $344 and $1,057, respectively)	187	572	559	1,715
Comprehensive income	$ 22,985	$ 46,316	$ 112,871	$ 186,980

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2016	Oct. 31, 2015	Oct. 29, 2016	Oct. 31, 2015
Statement of Comprehensive Income [Abstract]
Amortization of retirement plan and other retiree benefit adjustments, tax	$ 114	$ 352	$ 344	$ 1,057

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Oct. 29, 2016	Oct. 31, 2015
Operating activities:
Net Income	$ 112,312	$ 185,265
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and other deferred costs	183,549	188,847
Loss (gain) on disposal of assets	(853)	(9,495)
Changes in operating assets and liabilities:
Decrease in accounts receivable	4,671	9,396
Increase in merchandise inventories	(529,212)	(558,992)
Increase in other current assets	(13,198)	(22,893)
Decrease in other assets	6,626	1,172
Increase in trade accounts payable and accrued expenses and other liabilities	433,797	373,972
Decrease in income taxes	(71,787)	(83,981)
Net cash provided by operating activities	125,905	83,291
Investing activities:
Purchases of property and equipment	(73,374)	(141,929)
Proceeds from disposal of assets	1,049	19,422
Payments to Acquire Interest in Joint Venture	(20,000)	0
Decrease in restricted cash	0	7,346
Net cash used in investing activities	(92,325)	(115,161)
Financing activities:
Principal payments on long-term debt and capital lease obligations	(3,046)	(5,081)
Payments of Financing Costs	0	2,863
Proceeds from (Repayments of) Lines of Credit	17,000	126,000
Cash dividends paid	(7,414)	(7,334)
Purchase of treasury stock	(162,507)	(382,494)
Net cash used in financing activities	(155,967)	(271,772)
Decrease in cash and cash equivalents	(122,387)	(303,642)
Cash and cash equivalents, beginning of period	202,869	403,752
Cash and cash equivalents, end of period	80,482	100,110
Non-cash transactions:
Accrued capital expenditures	7,500	5,797
Accrued treasury stock purchases	3,110	0
Capital Lease Obligations Incurred	0	9,093
Stock Issued	913	929
Insurance Recovery	$ 2,761	$ 0

Basis of Presentation

Basis of Presentation	9 Months Ended
	Oct. 29, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements of Dillard’s, Inc. (the “Company”) have been prepared in accordance with the rules of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended October 29, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending January 28, 2017 due to, among other factors, the seasonal nature of the business. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 30, 2016 filed with the SEC on March 23, 2016. 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.

Business Segments

Business Segments	9 Months Ended
	Oct. 29, 2016
Segment Reporting [Abstract]
Business Segments	Business Segments The Company operates in two reportable segments: the operation of retail department stores (“retail operations”) and a general contracting construction company (“construction”). For the Company’s retail operations, the Company determined its operating segments on a store by store basis. Each store’s operating performance has been aggregated into one reportable segment. The Company’s operating segments are aggregated for financial reporting purposes because they are similar in each of the following areas: economic characteristics, class of consumer, nature of products and distribution methods. Revenues from external customers are derived from merchandise sales, and the Company does not rely on any major customers as a source of revenue. Across all stores, the Company operates one store format under the Dillard’s name where each store offers the same general mix of merchandise with similar categories and similar customers. The Company believes that disaggregating its operating segments would not provide meaningful additional information. The following tables summarize certain segment information, including the reconciliation of those items to the Company’s consolidated operations: (in thousands of dollars) Retail Operations Construction Consolidated Three Months Ended October 29, 2016: Net sales from external customers $ 1,322,641 $ 42,968 $ 1,365,609 Gross profit 484,441 2,303 486,744 Depreciation and amortization 60,513 168 60,681 Interest and debt expense (income), net 15,637 (18 ) 15,619 Income before income taxes and income on and equity in earnings of joint ventures 34,333 743 35,076 Income on and equity in earnings of joint ventures 12 — 12 Total assets 4,130,023 54,205 4,184,228 Three Months Ended October 31, 2015: Net sales from external customers $ 1,381,821 $ 52,833 $ 1,434,654 Gross profit 520,033 1,701 521,734 Depreciation and amortization 65,437 163 65,600 Interest and debt expense (income), net 14,887 (15 ) 14,872 Income before income taxes and income on and equity in earnings of joint ventures 69,734 609 70,343 Income on and equity in earnings of joint ventures 371 — 371 Total assets 4,318,160 60,240 4,378,400 Nine Months Ended October 29, 2016: Net sales from external customers $ 4,175,439 $ 145,857 $ 4,321,296 Gross profit 1,503,895 6,598 1,510,493 Depreciation and amortization 181,421 512 181,933 Interest and debt expense (income), net 47,360 (48 ) 47,312 Income before income taxes and income on and equity in earnings of joint ventures 171,032 2,226 173,258 Income on and equity in earnings of joint ventures 34 — 34 Total assets 4,130,023 54,205 4,184,228 Nine Months Ended October 31, 2015: Net sales from external customers $ 4,367,890 $ 154,035 $ 4,521,925 Gross profit 1,622,672 5,583 1,628,255 Depreciation and amortization 186,915 338 187,253 Interest and debt expense (income), net 44,908 (44 ) 44,864 Income before income taxes and income on and equity in earnings of joint ventures 280,934 2,057 282,991 Income on and equity in earnings of joint ventures 934 — 934 Total assets 4,318,160 60,240 4,378,400 Intersegment construction revenues of $22.4 million and $22.9 million for the three months ended October 29, 2016 and October 31, 2015, respectively, and $55.5 million and $65.4 million for the nine months ended October 29, 2016 and October 31, 2015 , respectively, were eliminated during consolidation and have been excluded from net sales for the respective periods.

Earnings Per Share Data

Earnings Per Share Data	9 Months Ended
	Oct. 29, 2016
Earnings Per Share [Abstract]
Earnings Per Share Data	Earnings Per Share Data The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data). Three Months Ended Nine Months Ended October 29, October 31, October 29, October 31, Net income $ 22,798 $ 45,744 $ 112,312 $ 185,265 Weighted average shares of common stock outstanding 33,962 38,341 34,717 39,876 Basic and diluted earnings per share $ 0.67 $ 1.19 $ 3.24 $ 4.65 The Company maintains a capital structure in which common stock is the only equity security issued and outstanding, and there were no shares of preferred stock, stock options, other dilutive securities or potentially dilutive securities issued or outstanding during the three and nine months ended October 29, 2016 and October 31, 2015 .

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Oct. 29, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Various legal proceedings, in the form of lawsuits and claims, which occur in the normal course of business, are pending against the Company and its subsidiaries. In the opinion of management, disposition of these matters, individually or in the aggregate, is not expected to have a material adverse effect on the Company’s financial position, cash flows or results of operations. At October 29, 2016 , letters of credit totaling $26.4 million were issued under the Company’s revolving credit facility.

Benefit Plans

Benefit Plans	9 Months Ended
	Oct. 29, 2016
Compensation and Retirement Disclosure [Abstract]
Benefit Plans	Benefit Plans The Company has an unfunded, nonqualified defined benefit plan (“Pension Plan”) for its officers. The Pension Plan is noncontributory and provides benefits based on years of service and compensation during employment. The Company determines pension expense 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. The Company contributed $1.4 million and $3.3 million to the Pension Plan during the three and nine months ended October 29, 2016 and expects to make additional contributions to the Pension Plan of approximately $1.1 million during the remainder of fiscal 2016 . The components of net periodic benefit costs are as follows (in thousands): Three Months Ended Nine Months Ended October 29, October 31, October 29, October 31, Components of net periodic benefit costs: Service cost $ 983 $ 983 $ 2,950 $ 2,949 Interest cost 1,920 1,684 5,759 5,052 Net actuarial loss 301 924 903 2,772 Net periodic benefit costs $ 3,204 $ 3,591 $ 9,612 $ 10,773 Net periodic benefit costs are included in selling, general and administrative expenses.

Revolving Credit Agreement

Revolving Credit Agreement	9 Months Ended
	Oct. 29, 2016
Line of Credit Facility [Abstract]
Revolving Credit Agreement	Revolving Credit Agreement At October 29, 2016 , the Company maintained a $1.0 billion unsecured revolving credit facility (“credit agreement”). The credit agreement matures on May 13, 2020 and is available to the Company for working capital needs and general corporate purposes. 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. At October 29, 2016, $17.0 million in borrowings were outstanding, and letters of credit totaling $26.4 million were issued under the credit agreement leaving unutilized availability under the facility of approximately $956.6 million . The weighted average interest rate under the credit agreement for the borrowings outstanding at October 29, 2016 was 1.88% . To be in compliance with the financial covenants of the credit agreement, 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. At October 29, 2016, the Company was in compliance with all financial covenants related to the credit agreement.

Stock Repurchase Programs

Stock Repurchase Programs	9 Months Ended
	Oct. 29, 2016
Schedule of Share Repurchase Program Activity [Abstract]
Stock Repurchase Programs	Stock Repurchase Programs The Company’s Board of Directors has authorized the Company to repurchase the Company’s Class A Common Stock under open-ended stock plans. These authorizations permit the Company to repurchase its Class A Common Stock in the open market, pursuant to preset trading plans meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934 or through privately negotiated transactions. On February 25, 2016, the Company’s Board of Directors authorized the Company to repurchase $500 million of the Company’s Class A Common Stock under an open-ended stock repurchase plan. The authorization has no expiration date. The following is a summary of share repurchase activity for the periods indicated (in millions, except per share data): Three Months Ended Nine Months Ended October 29, October 31, October 29, October 31, Cost of shares repurchased $ 53.1 $ 174.6 $ 165.6 $ 382.5 Number of shares repurchased 0.9 1.9 2.5 3.7 Average price per share $ 61.64 $ 92.45 $ 67.13 $ 102.52 All repurchases of the Company’s Class A Common Stock above were made at the market price at the trade date. Accordingly, all amounts paid to reacquire these shares were allocated to Treasury Stock. As of October 29, 2016 , $334.4 million of authorization remained under the Company's stock repurchase plan.

Income Taxes

Income Taxes	9 Months Ended
	Oct. 29, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes During the three months ended October 29, 2016, income tax expense differed from what would be computed using the statutory federal tax rate primarily due to the effect of state and local income taxes partially offset by tax benefits recognized for federal tax credits. During the three months ended October 31, 2015, income tax expense differed from what would be computed using the statutory federal tax rate primarily due to the effect of state and local income taxes. During the nine months ended October 29, 2016, income tax expense differed from what would be computed using the statutory federal tax rate primarily due to the effect of state and local income taxes partially offset by tax benefits recognized for federal tax credits. During the nine months ended October 31, 2015, income tax expense differed from what would be computed using the statutory federal tax rate primarily due to the effect of state and local income taxes.

Reclassifications from Accumula

Reclassifications from Accumulated Other Comprehensive Loss ("AOCL")	9 Months Ended
	Oct. 29, 2016
Reclassifications from Accumulated Other Comprehensive Loss ("AOCL")
Reclassifications from Accumulated Other Comprehensive Loss ("AOCL")	Reclassifications from Accumulated Other Comprehensive Loss (“AOCL”) Reclassifications from AOCL are summarized as follows (in thousands): Amount Reclassified from AOCL Three Months Ended Nine Months Ended Affected Line Item in the Statement Where Net Income Is Presented Details about AOCL Components October 29, 2016 October 31, 2015 October 29, October 31, Defined benefit pension plan items Amortization of actuarial losses $ 301 $ 924 $ 903 $ 2,772 Total before tax (1) 114 352 344 1,057 Income tax expense $ 187 $ 572 $ 559 $ 1,715 Total net of tax _______________________________ (1) These items are included in the computation of net periodic pension cost. See Note 5, Benefit Plans , for additional information.

Changes in Accumulated Other Co

Changes in Accumulated Other Comprehensive Loss	9 Months Ended
	Oct. 29, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Changes in Accumulated Other Comprehensive Loss	Changes in Accumulated Other Comprehensive Loss Changes in AOCL by component (net of tax) are summarized as follows (in thousands): Defined Benefit Pension Plan Items Three Months Ended Nine Months Ended October 29, 2016 October 31, 2015 October 29, October 31, Beginning balance $ 16,746 $ 29,886 $ 17,118 $ 31,029 Other comprehensive income before reclassifications — — — — Amounts reclassified from AOCL (187 ) (572 ) (559 ) (1,715 ) Net other comprehensive income (187 ) (572 ) (559 ) (1,715 ) Ending balance $ 16,559 $ 29,314 $ 16,559 $ 29,314

Fair Value Disclosures

Fair Value Disclosures	9 Months Ended
	Oct. 29, 2016
Fair Value Disclosures [Abstract]
Fair Value Disclosures	Fair Value Disclosures The estimated fair values of financial instruments presented herein have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of amounts the Company could realize in a current market exchange. The fair value of the Company’s long-term debt and subordinated debentures is based on market prices or dealer quotes. The fair value of the Company’s cash and cash equivalents and accounts receivable approximates their carrying values at October 29, 2016 due to the short-term maturities of these instruments. The fair value of the Company’s long-term debt at October 29, 2016 was approximately $692 million . The carrying value of the Company’s long-term debt at October 29, 2016 was $613.2 million . The fair value of the Company’s subordinated debentures at October 29, 2016 was approximately $210 million . The carrying value of the Company’s subordinated debentures at October 29, 2016 was $200.0 million .

Recently Issued Accounting Stan

Recently Issued Accounting Standards	9 Months Ended
	Oct. 29, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards 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. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). This ASU clarifies the implementation guidance on principal versus agent considerations, as it assists in the determination of whether the entity controls the good or service before it is transferred to the customer. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. This ASU clarifies two aspects of Topic 606, including identifying performance obligations and the licensing implementation guidance, while retaining the principles for those areas. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients . This ASU clarifies three aspects of Topic 606, including the objective of the collectibility criterion, the measurement date for noncash consideration and the requirements for a completed contract. The ASU also includes a practical expedient for contract modifications. Additionally, the amendments allow an entity to exclude amounts collected from customers for all sales taxes from the transaction price. The Company is currently assessing the impact of these updates 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 reporting periods ending after December 15, 2016, and we plan to adopt this ASU for the annual period ending on January 28, 2017. We do not believe the adoption of this guidance will have a material 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. The prior period in our consolidated financial statements was retrospectively adjusted. 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 Accounting Standards Codification ("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. ASU No. 2015-03 requires retrospective application and represents a change in accounting principle. The Company adopted ASU No. 2015-03 during the first quarter of fiscal 2016, using retrospective application as permitted. Prior period amounts in our condensed consolidated financial statements have been reclassified to conform with current presentation. As a result, the Company reclassified $1.7 million and $1.8 million of debt issuance costs from other assets to reduce long-term debt on our condensed consolidated balance sheets at January 30, 2016 and October 31, 2015, respectively. 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. The Company adopted ASU No. 2015-15 at the beginning of the first quarter of fiscal 2016. The adoption of this guidance had no 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 this ASU. 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. 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. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to reduce the diversity in practice of how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments within ASU No. 2016-15 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. The Company is currently assessing the impact of this update on its consolidated financial statements. Intra-Entity Transfers of Assets Other Than Inventory In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, as part of its initiative to reduce complexity in accounting standards. Under these amendments, an entity is required to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments within ASU No. 2016-16 are effective for financial statements issued for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. The Company is currently assessing the impact of this update on its consolidated financial statements.

Business Segments (Tables)

Business Segments (Tables)	9 Months Ended
	Oct. 29, 2016
Segment Reporting [Abstract]
Schedule of segment information	The following tables summarize certain segment information, including the reconciliation of those items to the Company’s consolidated operations: (in thousands of dollars) Retail Operations Construction Consolidated Three Months Ended October 29, 2016: Net sales from external customers $ 1,322,641 $ 42,968 $ 1,365,609 Gross profit 484,441 2,303 486,744 Depreciation and amortization 60,513 168 60,681 Interest and debt expense (income), net 15,637 (18 ) 15,619 Income before income taxes and income on and equity in earnings of joint ventures 34,333 743 35,076 Income on and equity in earnings of joint ventures 12 — 12 Total assets 4,130,023 54,205 4,184,228 Three Months Ended October 31, 2015: Net sales from external customers $ 1,381,821 $ 52,833 $ 1,434,654 Gross profit 520,033 1,701 521,734 Depreciation and amortization 65,437 163 65,600 Interest and debt expense (income), net 14,887 (15 ) 14,872 Income before income taxes and income on and equity in earnings of joint ventures 69,734 609 70,343 Income on and equity in earnings of joint ventures 371 — 371 Total assets 4,318,160 60,240 4,378,400 Nine Months Ended October 29, 2016: Net sales from external customers $ 4,175,439 $ 145,857 $ 4,321,296 Gross profit 1,503,895 6,598 1,510,493 Depreciation and amortization 181,421 512 181,933 Interest and debt expense (income), net 47,360 (48 ) 47,312 Income before income taxes and income on and equity in earnings of joint ventures 171,032 2,226 173,258 Income on and equity in earnings of joint ventures 34 — 34 Total assets 4,130,023 54,205 4,184,228 Nine Months Ended October 31, 2015: Net sales from external customers $ 4,367,890 $ 154,035 $ 4,521,925 Gross profit 1,622,672 5,583 1,628,255 Depreciation and amortization 186,915 338 187,253 Interest and debt expense (income), net 44,908 (44 ) 44,864 Income before income taxes and income on and equity in earnings of joint ventures 280,934 2,057 282,991 Income on and equity in earnings of joint ventures 934 — 934 Total assets 4,318,160 60,240 4,378,400

Earnings Per Share Data (Tables

Earnings Per Share Data (Tables)	9 Months Ended
	Oct. 29, 2016
Earnings Per Share [Abstract]
Schedule of computation of basic and diluted earnings per share	The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data). Three Months Ended Nine Months Ended October 29, October 31, October 29, October 31, Net income $ 22,798 $ 45,744 $ 112,312 $ 185,265 Weighted average shares of common stock outstanding 33,962 38,341 34,717 39,876 Basic and diluted earnings per share $ 0.67 $ 1.19 $ 3.24 $ 4.65

Benefit Plans (Tables)

Benefit Plans (Tables)	9 Months Ended
	Oct. 29, 2016
Compensation and Retirement Disclosure [Abstract]
Schedule of components of net periodic benefit costs	The components of net periodic benefit costs are as follows (in thousands): Three Months Ended Nine Months Ended October 29, October 31, October 29, October 31, Components of net periodic benefit costs: Service cost $ 983 $ 983 $ 2,950 $ 2,949 Interest cost 1,920 1,684 5,759 5,052 Net actuarial loss 301 924 903 2,772 Net periodic benefit costs $ 3,204 $ 3,591 $ 9,612 $ 10,773 Net periodic benefit costs are included in selling, general and administrative expenses.

Stock Repurchase Programs Sched

Stock Repurchase Programs Schedule of Repurchase Program Activity (Tables)	9 Months Ended
	Oct. 29, 2016
Schedule of Share Repurchase Program Activity [Abstract]
Schedule of Repurchase Agreements [Table Text Block]	The following is a summary of share repurchase activity for the periods indicated (in millions, except per share data): Three Months Ended Nine Months Ended October 29, October 31, October 29, October 31, Cost of shares repurchased $ 53.1 $ 174.6 $ 165.6 $ 382.5 Number of shares repurchased 0.9 1.9 2.5 3.7 Average price per share $ 61.64 $ 92.45 $ 67.13 $ 102.52

Reclassifications from Accumu24

Reclassifications from Accumulated Other Comprehensive Loss ("AOCL") (Tables)	9 Months Ended
	Oct. 29, 2016
Reclassifications from Accumulated Other Comprehensive Loss ("AOCL")
Summary of reclassifications from AOCL	Reclassifications from AOCL are summarized as follows (in thousands): Amount Reclassified from AOCL Three Months Ended Nine Months Ended Affected Line Item in the Statement Where Net Income Is Presented Details about AOCL Components October 29, 2016 October 31, 2015 October 29, October 31, Defined benefit pension plan items Amortization of actuarial losses $ 301 $ 924 $ 903 $ 2,772 Total before tax (1) 114 352 344 1,057 Income tax expense $ 187 $ 572 $ 559 $ 1,715 Total net of tax _______________________________ (1) These items are included in the computation of net periodic pension cost. See Note 5, Benefit Plans , for additional information.

Changes in Accumulated Other 25

Changes in Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Oct. 29, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Summary of changes in AOCL by component (net of tax)	Changes in AOCL by component (net of tax) are summarized as follows (in thousands): Defined Benefit Pension Plan Items Three Months Ended Nine Months Ended October 29, 2016 October 31, 2015 October 29, October 31, Beginning balance $ 16,746 $ 29,886 $ 17,118 $ 31,029 Other comprehensive income before reclassifications — — — — Amounts reclassified from AOCL (187 ) (572 ) (559 ) (1,715 ) Net other comprehensive income (187 ) (572 ) (559 ) (1,715 ) Ending balance $ 16,559 $ 29,314 $ 16,559 $ 29,314

Business Segments (Details)

Business Segments (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2016USD ($)	Oct. 31, 2015USD ($)	Oct. 29, 2016USD ($)segment	Oct. 31, 2015USD ($)	Jan. 30, 2016USD ($)
Business Segments
Number of reportable segments | segment			2
Net sales from external customers	$ 1,365,609	$ 1,434,654	$ 4,321,296	$ 4,521,925
Gross profit	486,744	521,734	1,510,493	1,628,255
Depreciation and amortization	60,681	65,600	181,933	187,253
Interest and debt expense (income), net	15,619	14,872	47,312	44,864
Income before income taxes and income on and equity in earnings of joint ventures	35,076	70,343	173,258	282,991
Income on and equity in earnings of joint ventures	12	371	34	934
Total assets	4,184,228	4,378,400	$ 4,184,228	4,378,400	$ 3,863,901
Retail operations
Business Segments
Number of reportable segments | segment			1
Number of store formats | segment			1
Net sales from external customers	1,322,641	1,381,821	$ 4,175,439	4,367,890
Gross profit	484,441	520,033	1,503,895	1,622,672
Depreciation and amortization	60,513	65,437	181,421	186,915
Interest and debt expense (income), net	15,637	14,887	47,360	44,908
Income before income taxes and income on and equity in earnings of joint ventures	34,333	69,734	171,032	280,934
Income on and equity in earnings of joint ventures	12	371	34	934
Total assets	4,130,023	4,318,160	4,130,023	4,318,160
Construction
Business Segments
Net sales from external customers	42,968	52,833	145,857	154,035
Gross profit	2,303	1,701	6,598	5,583
Depreciation and amortization	168	163	512	338
Interest and debt expense (income), net	(18)	(15)	(48)	(44)
Income before income taxes and income on and equity in earnings of joint ventures	743	609	2,226	2,057
Income on and equity in earnings of joint ventures	0	0	0	0
Total assets	54,205	60,240	54,205	60,240
Intersegment Eliminations [Member]
Business Segments
Net sales from external customers	$ 22,400	$ 22,900	$ 55,500	$ 65,400

Earnings Per Share Data (Detail

Earnings Per Share Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2016	Oct. 31, 2015	Oct. 29, 2016	Oct. 31, 2015
Earnings Per Share [Abstract]
Net Income	$ 22,798	$ 45,744	$ 112,312	$ 185,265
Weighted Average Number of Shares Outstanding, Basic and Diluted	33,962,000	38,341,000	34,717,000	39,876,000
Earnings Per Share, Basic and Diluted	$ 0.67	$ 1.19	$ 3.24	$ 4.65
Diluted:
Total dilutive and potentially dilutive securities outstanding (in shares)	0		0

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Oct. 29, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Outstanding letters of credit under the Company's revolving credit facility	$ 26.4

Benefit Plans (Details)

Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2016	Oct. 31, 2015	Oct. 29, 2016	Oct. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Employer contributions to pension plan	$ 1,400		$ 3,300
Expected employer contributions to pension plan for remainder of current fiscal year			1,100
Components of net periodic benefit costs:
Service cost	983	$ 983	2,950	$ 2,949
Interest cost	1,920	1,684	5,759	5,052
Net actuarial loss	301	924	903	2,772
Net periodic benefit costs	$ 3,204	$ 3,591	$ 9,612	$ 10,773

Revolving Credit Agreement (Det

Revolving Credit Agreement (Details)	9 Months Ended
	Oct. 29, 2016USD ($)	Oct. 31, 2015USD ($)
Credit agreement
Payments of Financing Costs	$ 0	$ 2,863,000
Minimum Coverage Ratio Under Credit Facility	2.5
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,000,000,000
Reference rate	LIBOR
Percentage points added to reference rate	1.375%
Interest rate at end of period (as a percent)	1.88%
Letters of credit issued	$ 26,400,000
Unutilized credit facility borrowing capacity	$ 957,000,000
Maximum Leverage Ratio Under Credit Facility	4
Annual commitment fee (as a percent)	0.20%
Proceeds from (Repayments of) Lines of Credit	$ 17,000,000	$ 126,000,000

Stock Repurchase Programs (Deta

Stock Repurchase Programs (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Oct. 29, 2016	Oct. 31, 2015	Oct. 29, 2016	Oct. 31, 2015
Schedule of Share Repurchase Program Activity [Abstract]
Stock Repurchase Program, Authorized Amount	$ 500		$ 500
Number of shares repurchased	0.9	1.9	2.5	3.7
Amount of shares repurchased	$ 53.1	$ 174.6	$ 165.6	$ 382.5
Average price of shares repurchased (in dollars per share)	$ 61.64	$ 92.45	$ 67.13	$ 102.52
Repurchase of common stock remaining authorization	$ 334.4		$ 334.4

Reclassifications from Accumu32

Reclassifications from Accumulated Other Comprehensive Loss ("AOCL") (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2016	Oct. 31, 2015	Oct. 29, 2016	Oct. 31, 2015
Reclassifications from accumulated other comprehensive loss
Amortization of actuarial losses	$ 301	$ 924	$ 903	$ 2,772
Income before income taxes and income on and equity in losses of joint ventures	(35,076)	(70,343)	(173,258)	(282,991)
Income tax expense	(12,290)	(24,970)	(60,980)	(98,660)
Net Income	(22,798)	(45,744)	(112,312)	(185,265)
Defined benefit pension plan | Amount Reclassified from AOCL
Reclassifications from accumulated other comprehensive loss
Income tax expense	114	352	344	1,057
Net Income	$ 187	$ 572	$ 559	$ 1,715

Changes in Accumulated Other 33

Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2016	Oct. 31, 2015	Oct. 29, 2016	Oct. 31, 2015
Changes in accumulated other comprehensive loss
Beginning balance			$ 17,118
Ending balance	$ 16,559	$ 29,314	16,559	$ 29,314
Defined benefit pension plan
Changes in accumulated other comprehensive loss
Beginning balance	16,746	29,886	17,118	31,029
Other comprehensive income before reclassifications	0	0	0	0
Amounts reclassified from AOCL	(187)	(572)	(559)	(1,715)
Net other comprehensive income	(187)	(572)	(559)	(1,715)
Ending balance	$ 16,559	$ 29,314	$ 16,559	$ 29,314

Fair Value Disclosures (Details

Fair Value Disclosures (Details) - USD ($) $ in Thousands	Oct. 29, 2016	Jan. 30, 2016	Oct. 31, 2015
Fair value disclosures
Subordinated debentures	$ 200,000	$ 200,000	$ 200,000
Fair Value of Assets
Fair value disclosures
Long-term debt, including current portion, fair value	692,000
Subordinated debentures	210,000
Carrying value
Fair value disclosures
Long-term debt, including current portion	613,000
Subordinated debentures	$ 200,000

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Millions	Jan. 30, 2016	Oct. 31, 2015
Long-term debt
Debt Issuance Costs, Line of Credit Arrangements, Net	$ 1.7	$ 1.8