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Business Segments | 6 Months Ended
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Aug. 01, 2020
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 table summarizes the percentage of net sales by segment and major product line:
|  | Three Months Ended |  |  |  | Six Months Ended |  |
|  | August 1, 2020 |  | August 3, 2019 |  | August 1, 2020 |  | August 3, 2019
Retail operations segment |  |  |  |  |  |  |  |
Cosmetics |  | 14 | % |  | 13 | % |  | 14 | % |  | 13 | %
Ladies’ apparel |  | 21 |  |  | 24 |  |  | 21 |  |  | 24 |
Ladies’ accessories and lingerie |  | 16 |  |  | 16 |  |  | 16 |  |  | 15 |
Juniors’ and children’s apparel |  | 9 |  |  | 8 |  |  | 9 |  |  | 10 |
Men’s apparel and accessories |  | 20 |  |  | 19 |  |  | 18 |  |  | 17 |
Shoes |  | 13 |  |  | 14 |  |  | 14 |  |  | 15 |
Home and furniture |  | 4 |  |  | 3 |  |  | 4 |  |  | 3 |
|  | 97 |  |  | 97 |  |  | 96 |  |  | 97 |
Construction segment |  | 3 |  |  | 3 |  |  | 4 |  |  | 3 |
Total |  | 100 | % |  | 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 |  | Construction |  | Consolidated
Three Months Ended August 1, 2020: |  |  |  |  |  |
Net sales from external customers |  | $ | 893,216 |  |  | $ | 25,828 |  |  | $ | 919,044 |
Gross profit |  | 277,407 |  |  | 1,790 |  |  | 279,197 |
Depreciation and amortization |  | 50,784 |  |  | 167 |  |  | 50,951 |
Interest and debt expense (income), net |  | 12,885 |  |  | (12) |  |  | 12,873 |
(Loss) income before income taxes |  | (33,699) |  |  | 373 |  |  | (33,326) |
Total assets |  | 3,056,320 |  |  | 26,916 |  |  | 3,083,236 |
Three Months Ended August 3, 2019: |  |  |  |  |  |
Net sales from external customers |  | $ | 1,378,163 |  |  | $ | 48,700 |  |  | $ | 1,426,863 |
Gross profit |  | 395,137 |  |  | (288) |  |  | 394,849 |
Depreciation and amortization |  | 54,207 |  |  | 176 |  |  | 54,383 |
Interest and debt expense (income), net |  | 12,278 |  |  | (30) |  |  | 12,248 |
Loss before income taxes |  | (50,929) |  |  | (1,222) |  |  | (52,151) |
Total assets |  | 3,463,087 |  |  | 48,992 |  |  | 3,512,079 |
Six Months Ended August 1, 2020: |  |  |  |  |  |
Net sales from external customers |  | $ | 1,644,243 |  |  | $ | 61,456 |  |  | $ | 1,705,699 |
Gross profit |  | 373,441 |  |  | 3,942 |  |  | 377,383 |
Depreciation and amortization |  | 101,516 |  |  | 336 |  |  | 101,852 |
Interest and debt expense (income), net |  | 25,176 |  |  | (33) |  |  | 25,143 |
(Loss) income before income taxes |  | (262,366) |  |  | 895 |  |  | (261,471) |
Total assets |  | 3,056,320 |  |  | 26,916 |  |  | 3,083,236 |
Six Months Ended August 3, 2019 |  |  |  |  |  |
Net sales from external customers |  | $ | 2,798,685 |  |  | $ | 93,619 |  |  | $ | 2,892,304 |
Gross profit |  | 931,508 |  |  | 1,015 |  |  | 932,523 |
Depreciation and amortization |  | 106,401 |  |  | 346 |  |  | 106,747 |
Interest and debt expense (income), net |  | 23,542 |  |  | (57) |  |  | 23,485 |
Income (loss) before income taxes |  | 49,799 |  |  | (1,178) |  |  | 48,621 |
Total assets |  | 3,463,087 |  |  | 48,992 |  |  | 3,512,079 |
Intersegment construction revenues of $6.9 million and $6.2 million for the three months ended August 1, 2020 and August 3, 2019, respectively, and $18.3 million and $14.6 million for the six months ended August 1, 2020 and August 3, 2019, respectively, were eliminated during consolidation and have been excluded from net sales for the respective periods. The retail operations segment gives rise to contract liabilities through the loyalty program and through the issuances of gift cards. The loyalty program liability and a portion of the gift card liability is included in trade accounts payable and accrued expenses, and a portion of the gift card liability is included in other liabilities on the condensed consolidated balance sheets. Our retail operations segment contract liabilities are as follows:
Retail |  |  |  |  |  |  |  |
(in thousands of dollars) |  | August 1, 2020 |  | February 1, 2020 |  | August 3, 2019 |  | February 2, 2019
Contract liabilities |  | $ | 58,186 |  |  | $ | 75,229 |  |  | $ | 63,041 |  |  | $ | 72,852 |
During the six months ended August 1, 2020 and August 3, 2019, the Company recorded $29.8 million and $37.6 million, respectively, in revenue that was previously included in the retail operations contract liability balances of $75.2 million and $72.9 million, at February 1, 2020 and February 2, 2019, respectively. Construction contracts give rise to accounts receivable, contract assets and contract liabilities. We record accounts receivable based on amounts expected to be collected from customers. We also record costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) and billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) in other current assets and trade accounts payable and accrued expenses in the condensed consolidated balance sheets, respectively. The amounts included in the condensed consolidated balance sheets are as follows:
Construction |  |  |  |  |  |  |  |
(in thousands of dollars) |  | August 1, 2020 |  | February 1, 2020 |  | August 3, 2019 |  | February 2, 2019
Accounts receivable |  | $ | 19,222 |  |  | $ | 28,522 |  |  | $ | 36,276 |  |  | $ | 31,867 |
Costs and estimated earnings in excess of billings on uncompleted contracts |  | 722 |  |  | 2,179 |  |  | 2,927 |  |  | 1,165 |
Billings in excess of costs and estimated earnings on uncompleted contracts |  | 7,212 |  |  | 5,737 |  |  | 10,358 |  |  | 7,414 |
During the six months ended August 1, 2020 and August 3, 2019, the Company recorded $4.7 million and $6.8 million, respectively, in revenue that was previously included in billings in excess of costs and estimated earnings on uncompleted contracts of $5.7 million and $7.4 million at February 1, 2020 and February 2, 2019, respectively. The remaining performance obligations related to executed construction contracts totaled $127.0 million, $156.5 million and $108.4 million at August 1, 2020, February 1, 2020 and August 3, 2019, respectively.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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