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Business Segments
 6 Months Ended
Jul. 30, 2022
Segment Reporting [Abstract]  
Business Segments

Note 3. 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:

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​

​

​

​

​

​

​

​

​

​

    

Three Months Ended

    

Six Months Ended

 

​

​

July 30,

​

July 31,

​

July 30,

​

July 31,

​

​

​

2022

    

2021

​

2022

    

2021

 

Retail operations segment

​

  

​

  

​

  

​

  

 

Cosmetics

 

14

%  

13

%

13

%  

14

%

Ladies’ apparel

 

23

 

24

 

23

 

23

​

Ladies’ accessories and lingerie

 

15

 

15

 

14

 

15

​

Juniors’ and children’s apparel

 

8

 

9

 

10

 

10

​

Men’s apparel and accessories

 

21

 

20

 

20

 

19

​

Shoes

 

14

 

14

 

15

 

14

​

Home and furniture

 

3

 

3

 

3

 

3

​

​

 

98

 

98

 

98

 

98

​

Construction segment

 

2

 

2

 

2

 

2

​

Total

 

100

%  

100

%

100

%  

100

%

​

The following tables summarize certain segment information, including the reconciliation of those items to the Company’s consolidated operations:

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​

​

​

​

​

​

​

​

    

Retail 

    

​

​

    

​

​

(in thousands of dollars)

​

Operations

​

Construction

​

Consolidated

Three Months Ended July 30, 2022

 

​

  

 

​

  

 

​

  

Net sales from external customers

​

$

1,552,658

​

$

35,962

​

$

1,588,620

Gross margin

​

 

644,921

​

 

2,482

​

 

647,403

Depreciation and amortization

​

 

47,863

​

 

56

​

 

47,919

Interest and debt expense (income), net

​

 

9,601

​

 

(12)

​

 

9,589

Income before income taxes

​

 

209,960

​

 

619

​

 

210,579

Total assets

​

 

3,174,436

​

 

47,167

​

 

3,221,603

​

​

​

​

​

​

​

​

​

​

Three Months Ended July 31, 2021

​

 

  

​

 

  

​

 

  

Net sales from external customers

​

$

1,539,396

​

$

30,982

​

$

1,570,378

Gross margin

​

 

641,240

​

 

1,928

​

 

643,168

Depreciation and amortization

​

 

49,981

​

 

62

​

 

50,043

Interest and debt expense (income), net

​

 

10,782

​

 

(11)

​

 

10,771

Income before income taxes

​

 

239,790

​

 

526

​

 

240,316

Total assets

​

 

3,339,862

​

 

43,647

​

 

3,383,509

​

​

​

​

​

​

​

​

​

​

Six Months Ended July 30, 2022

​

 

  

​

 

  

​

 

  

Net sales from external customers

​

$

3,133,457

​

$

66,831

​

$

3,200,288

Gross margin

​

 

1,393,365

​

 

4,269

​

 

1,397,634

Depreciation and amortization

​

 

94,014

​

 

114

​

 

94,128

Interest and debt expense (income), net

​

 

20,170

​

 

(19)

​

 

20,151

Income before income taxes

​

 

534,102

​

 

500

​

 

534,602

Total assets

​

 

3,174,436

​

 

47,167

​

 

3,221,603

​

​

​

​

​

​

​

​

​

​

Six Months Ended July 31, 2021

​

 

  

​

 

  

​

 

  

Net sales from external customers

​

$

2,836,132

​

$

62,789

​

$

2,898,921

Gross margin

​

 

1,194,241

​

 

3,381

​

 

1,197,622

Depreciation and amortization

​

 

96,319

​

 

132

​

 

96,451

Interest and debt expense (income), net

​

 

22,332

​

 

(26)

​

 

22,306

Income before income taxes

​

 

442,988

​

 

815

​

 

443,803

Total assets

​

 

3,339,862

​

 

43,647

​

 

3,383,509

​

Intersegment construction revenues of $11.6 million and $12.3 million for the three months ended July 30, 2022 and July 31, 2021, respectively, and $21.6 and $16.6 million for the six months July 30, 2022 and July 31, 2021, 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 customer loyalty program associated with Dillard’s private label cards 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:

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​

​

​

​

​

​

​

​

​

​

​

​

​

Retail

​

​

​

​

​

​

​

​

​

​

​

​

​

​

July 30,

​

January 29,

​

July 31,

​

January 30,

(in thousands of dollars)

    

2022

    

2022

    

2021

    

2021

Contract liabilities

​

$

68,543

​

$

80,421

​

$

59,713

​

$

68,021

​

During the six months ended July 30, 2022 and July 31, 2021, the Company recorded $37.4 million and $28.8 million, respectively, in revenue that was previously included in the retail operations contract liability balances of $80.4 million and $68.0 million at January 29, 2022 and January 30, 2021, 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:

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​

​

​

​

​

​

​

​

​

​

​

​

​

Construction

    

​

​

    

​

​

    

​

​

    

​

​

​

​

July 30,

​

January 29,

​

July 31,

​

January 30,

(in thousands of dollars)

​

2022

​

2022

​

2021

​

2021

Accounts receivable

​

$

26,229

​

$

25,912

​

$

23,374

​

$

25,094

Costs and estimated earnings in excess of billings on uncompleted contracts

​

 

4,036

​

 

2,847

​

 

1,426

​

 

450

Billings in excess of costs and estimated earnings on uncompleted contracts

​

 

7,850

​

 

6,298

​

 

5,118

​

 

4,685

​

During the six months ended July 30, 2022 and July 31, 2021, the Company recorded $5.7 million and $4.1 million, respectively, in revenue that was previously included in billings in excess of costs and estimated earnings on uncompleted contracts of $6.3 million and $4.7 million at January 29, 2022 and January 30, 2021, respectively.

The remaining performance obligations related to executed construction contracts totaled $215.9 million, $93.9 million and $51.8 million at July 30, 2022, January 29, 2022 and July 31, 2021, respectively.