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Reportable Segment Information - Notes to Financial Statements
 6 Months Ended
Aug. 01, 2015
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 three retail operating segments, including e-commerce, 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, which require 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 for the Company's retail operating segments is sourced from the same countries and some of the same vendors, using similar production processes. 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.

              

The Company operates its women's fashion specialty retail stores in 32 states as of August 1, 2015, 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    Six Months Ended   
August 1, 2015RetailCreditTotal August 1, 2015RetailCreditTotal
         
Revenues$ 249,919$ 1,350$ 251,269 Revenues$ 532,412$ 2,756$ 535,168
Depreciation5,541135,554 Depreciation10,9032510,928
Interest and other income(834) -(834) Interest and other income(1,402) -(1,402)
Income before taxes24,47947624,955 Income before taxes71,99794772,944
Total assets554,37569,029623,404 Total assets554,37569,029623,404
Capital expenditures6,823 -6,823 Capital expenditures11,402 -11,402
         
Three Months Ended    Six Months Ended   
August 2, 2014RetailCreditTotal August 2, 2014RetailCreditTotal
         
Revenues$ 244,622$ 1,436$ 246,058 Revenues$ 527,879$ 2,912$ 530,791
Depreciation5,412125,424 Depreciation10,8502510,875
Interest and other income(1,099) -(1,099) Interest and other income(1,841) -(1,841)
Income before taxes24,18857624,764 Income before taxes71,8791,05872,937
Total assets513,17466,937580,111 Total assets513,17466,937580,111
Capital expenditures9,851 -9,851 Capital expenditures13,967 -13,967
         
         

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 Six Months Ended
  August 1, 2015  August 2, 2014  August 1, 2015  August 2, 2014
            
Bad debt expense$ 239 $ 240 $ 498 $ 548
Payroll  219   211   430   417
Postage  200   188   391   379
Other expenses  203   209   465   485
            
Total expenses$ 861 $ 848 $ 1,784 $ 1,829