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Reportable Segment Information - Notes to Financial Statements
 9 Months Ended
Nov. 01, 2014
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 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. Customers 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 customers in a similar manner, through its retail stores.

              

The Company operates its women's fashion specialty retail stores in 32 states as of November 1, 2014, 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   
November 1, 2014RetailCreditTotal November 1, 2014RetailCreditTotal
         
Revenues$ 214,569$ 1,441$ 216,010 Revenues$ 742,448$ 4,353$ 746,801
Depreciation5,412105,422 Depreciation16,2623516,297
Interest and other income(686) -(686) Interest and other income(2,527) -(2,527)
Income before taxes6,6305267,156 Income before taxes78,5091,58480,093
Total assets514,72767,762582,489 Total assets514,72767,762582,489
Capital expenditures7,414 -7,414 Capital expenditures21,380 -21,380
         
Three Months Ended    Nine Months Ended   
November 2, 2013RetailCreditTotal November 2, 2013RetailCreditTotal
         
Revenues$ 199,540$ 1,503$ 201,043 Revenues$ 697,782$ 4,677$ 702,459
Depreciation5,45185,459 Depreciation16,3143016,344
Interest and other income(723) -(723) Interest and other income(2,328) -(2,328)
Income before taxes5,9485406,488 Income before taxes76,7561,66378,419
Total assets505,59566,532572,127 Total assets505,59566,532572,127
Capital expenditures13,087 8813,175 Capital expenditures23,693 8823,781
         
         

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
  November 1, 2014  November 2, 2013  November 1, 2014  November 2, 2013
            
Bad debt expense$ 257 $ 279 $ 805 $ 975
Payroll  213   231   630   696
Postage  181   179   559   558
Other expenses  254   266   740   755
            
Total expenses$ 905 $ 955 $ 2,734 $ 2,984