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Reportable Segment Information - Notes to Financial Statements
 3 Months Ended
Oct. 27, 2012
Reportable Segment Information [Abstract]  
Reportable Segment Information

NOTE 5 – REPORTABLE SEGMENT INFORMATION:

 

The Company has determined that it has four operating segments, as defined under ASC 280-10, including Cato, It's Fashion, Versona Accessories and Credit. As outlined in ASC 280-10, the Company has two reportable segments: Retail and Credit. The Company has aggregated its retail operating segments based on the aggregation criteria outlined in ASC 280-10, which states that two or more operating segments may be aggregated into a single reportable segment if aggregation is consistent with the objective and basic principles of ASC 280-10, if the segments have similar economic characteristics, similar product, similar production processes, similar clients and similar methods of distribution.

 

The Company's retail operating segments have similar economic characteristics and similar operating, financial and competitive risks. They are similar in nature of product, as they all offer women's apparel, shoes and accessories. Merchandise inventory of the Company's operating segments is sourced from the same countries and some of the same vendors, using similar production processes. Clients of the Company's operating segments have similar characteristics. Merchandise for the Company's operating segments is distributed to retail stores in a similar manner through the Company's single distribution center and is subsequently distributed to clients in a similar manner, through its retail stores.

              

The Company operates its women's fashion specialty retail stores in 31 states as of October 27, 2012, principally in the southeastern United States. The Company offers its own credit card to its customers and all credit authorizations, payment processing, and collection efforts are performed by a separate subsidiary of the Company.

 

 

NOTE 5 – REPORTABLE SEGMENT INFORMATION (CONTINUED):

 

The following schedule summarizes certain segment information (in thousands):

Three Months Ended          Nine Months Ended         
October 27, 2012  Retail  Credit  Total October 27, 2012  Retail  Credit  Total
                     
Revenues $198,247 $1,758 $200,005 Revenues $704,019 $5,393 $709,412
Depreciation  5,333  13  5,346 Depreciation  16,820  39  16,859
Interest and other income  (814)   -  (814) Interest and other income  (2,705)  0  (2,705)
Income before taxes  6,153  669  6,822 Income before taxes  83,433  2,307  85,740
Total assets  503,110  77,085  580,195 Total assets  503,110  77,085  580,195
Capital expenditures  11,044  0  11,044 Capital expenditures  30,966  0  30,966
                     
Three Months Ended          Nine Months Ended         
October 29, 2011  Retail  Credit  Total October 29, 2011  Retail  Credit  Total
                     
Revenues $194,769 $1,916 $196,685 Revenues $701,361 $5,790 $707,151
Depreciation  5,302  19  5,321 Depreciation  16,069  27  16,096
Interest and other income  (861)   -  (861) Interest and other income  (2,767)  0  (2,767)
Income before taxes  8,100  802  8,902 Income before taxes  82,284  2,383  84,667
Total assets  462,588  74,107  536,695 Total assets  462,588  74,107  536,695
Capital expenditures  10,857  0  10,857 Capital expenditures  26,522  86  26,608
                     
                     

The Company evaluates segment performance based on income before taxes. The Company does not allocate certain corporate expenses or income taxes to the credit segment.

The following schedule summarizes the direct expenses of the credit segment which are reflected in selling, general and administrative expenses (in thousands):

  Three Months Ended  Nine Months Ended
  October 27, 2012  October 29, 2011  October 27, 2012  October 29, 2011
            
Bad debt expense$ 408 $ 381 $ 1,004 $ 1,263
Payroll  231   233   676   722
Postage  170   186   555   574
Other expenses  267   295   812   821
            
Total expenses$1,076 $1,095 $3,047 $3,380