What changed in this filing

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Item 1. Financial Statements

2023-08-23 compared with 2023-05-25 · 393 added, 231 removed, 406 unchanged (61% of the section changed)

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS

OF INCOME AND

COMPREHENSIVE INCOME

OF INCOME (LOSS) AND

COMPREHENSIVE INCOME (LOSS)

Three Months Ended

April 29, 2023

April 30, 2022

Six Months Ended

July 29, 2023

July 30, 2022

July 29, 2023

July 30, 2022

(Dollars in thousands, except per share data)

3 unchanged sentences

COSTS AND EXPENSES, NET

Cost of goods sold (exclusive of depreciation shown below)

Selling, general and administrative (exclusive of depreciation

Cost of goods sold (exclusive of depreciation shown

Selling, general and administrative (exclusive of

Interest and other income

2 unchanged sentences

Income tax expense

Basic earnings per share

Diluted earnings per share

Comprehensive income:

Unrealized gain (loss) on available-for-sale securities, net

of deferred income taxes of $

and an income tax benefit of $

for April 29, 2023 and April 30, 2022, respectively

Net income (loss)

Basic earnings (loss) per share

Diluted earnings (loss) per share

Comprehensive income:

Net income (loss)

Unrealized gain (loss) on available-for-sale securities, net of

deferred income taxes of $

for the three and

six months ended July 29, 2023 and $

the three and six months ended July 30, 2022, respectively

Comprehensive income (loss)

See notes to condensed consolidated financial statements (unaudited).

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEETS

April 29, 2023

July 29, 2023

January 28, 2023

5 unchanged sentences

Accounts receivable, net of allowance for customer credit losses of

at April 29, 2023 and January 28, 2023, respectively

at July 29, 2023 and January 28, 2023, respectively

Merchandise inventories

2 unchanged sentences

Property and equipment – net

Deferred income taxes

Noncurrent deferred income taxes

Right-of-Use assets – net

3 unchanged sentences

Accrued expenses

Accrued bonus and benefits

Accrued employee benefits and bonus

Accrued income taxes

10 unchanged sentences

shares authorized;

shares issued

at April 29, 2023 and January 28, 2023, respectively

issued at July 29, 2023 and January 28, 2023, respectively

Convertible Class B common stock, $

1 unchanged sentence

shares authorized;

shares issued at April 29, 2023 and January 28, 2023, respectively

issued at July 29, 2023 and January 28, 2023, respectively

Additional paid-in capital

Retained earnings

Accumulated other comprehensive income

Accumulated other comprehensive income (loss)

Total Stockholders' Equity

4 unchanged sentences

OF CASH FLOWS

Three Months Ended

April 29, 2023

April 30, 2022

Six Months Ended

July 29, 2023

July 30, 2022

(Dollars in thousands)

Operating Activities:

Adjustments to reconcile net income to net cash provided (used) by operating activities:

Adjustments to reconcile net income to net cash provided

by operating activities:

Provision for customer credit losses

2 unchanged sentences

Deferred income taxes

(Gain) Loss on disposal of property and equipment

Changes in operating assets and liabilities which provided (used) cash:

Loss on disposal of property and equipment

Changes in operating assets and liabilities which provided

Accounts receivable

4 unchanged sentences

Accounts payable, accrued expenses and other liabilities

Net cash provided (used) by operating activities

Net cash provided by operating activities

Investing Activities:

2 unchanged sentences

Sales of short-term investments

Net cash provided (used) by investing activities

Net cash provided by investing activities

Financing Activities:

2 unchanged sentences

Proceeds from employee stock purchase plan

Net cash provided (used) by financing activities

Net increase (decrease) in cash, cash equivalents, and restricted cash

Net cash used in financing activities

Net increase in cash, cash equivalents, and restricted cash

Cash, cash equivalents, and restricted cash at beginning of period

11 unchanged sentences

Comprehensive income:

Unrealized net gains on available-for-sale securities, net of deferred

income tax expense of $

Unrealized net gains on available-for-sale securities, net of

deferred income tax expense of $

Dividends paid ($

4 unchanged sentences

Balance — April 29, 2023

Comprehensive income:

Unrealized net gains on available-for-sale securities, net of

deferred income tax expense of $

Dividends paid ($

Class A common stock sold through employee stock purchase

Share-based compensation issuances and exercises

Share-based compensation expense

Repurchase and retirement of treasury shares

Balance — July 29, 2023

See notes to condensed consolidated financial statements (unaudited).

THE CATO CORPORATION

CONDENSED CONSOLIDATED STATEMENTS

OF STOCKHOLDERS’ EQUITY

Comprehensive

3 unchanged sentences

Comprehensive income:

Unrealized net losses on available-for-sale securities, net of deferred

income tax benefit of $

Unrealized net losses on available-for-sale securities, net of

deferred income tax benefit of $

Dividends paid ($

4 unchanged sentences

Balance — April 30, 2022

Comprehensive income:

Unrealized net gains on available-for-sale securities, net of

deferred income tax expense of $

Dividends paid ($

Class A common stock sold through employee stock purchase

Share-based compensation issuances and exercises

Share-based compensation expense

Repurchase and retirement of treasury shares

Balance — July 30, 2022

See notes to condensed consolidated financial statements (unaudited).

1 unchanged sentence

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NOTE 1 - GENERAL

The condensed

consolidated financial

statements as

the thirteen-week

prepared from

accounting records

The condensed consolidated financial statements

as of July 29,

2023 and for the

twenty-six-week

Corporation and

3 unchanged sentences

In the opinion of management, all adjustments considered necessary for a fair presentation of the financial

statements have

been included.

adjustments are

6 unchanged sentences

in conjunction with

the consolidated financial statements

the consolidated financial

January 28, 2023.

2 unchanged sentences

accounting principles generally accepted in the United States of

On May 18, 2023, the Board of Directors maintained the quarterly dividend at

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NOTE 2 - EARNINGS PER SHARE:

7 unchanged sentences

The Company has presented one basic EPS and one diluted EPS amount for all common shares in

the accompanying

Condensed Consolidated

Statements of

Comprehensive Income.

Company’s certificate

of incorporation

declare dividends

historically paid the same dividends to both Class A and Class B shareholders and the

Board of Directors has

resolved to continue this practice.

Accordingly, the Company’s allocation of income for purposes of the EPS

computation is the same

for Class A and

Class B shares and

the EPS amounts reported

herein are applicable

to both Class A and Class B

the accompanying Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss).

incorporation

dividends on Class A shares without declaration of commensurate dividends on Class B shares, the Company

has historically paid the same dividends to both Class A and Class B shareholders

and the Board of Directors

has resolved to continue this

Accordingly, the Company’s allocation

of income for purposes

applicable to both Class A and Class

weighted average

3 unchanged sentences

Three Months Ended

April 29, 2023

April 30, 2022

Six Months Ended

July 29, 2023

July 30, 2022

July 29, 2023

July 30, 2022

(Dollars in thousands)

Earnings allocated to non-vested equity awards

Net earnings available to common stockholders

Net earnings (loss)

(Earnings) loss allocated to non-vested equity awards

Net earnings (loss) available to common stockholders

Basic weighted average common shares outstanding

Diluted weighted average common shares outstanding

Net income per common share

Basic earnings per share

Diluted earnings per share

Net income (loss) per common share

Basic earnings (loss) per share

Diluted earnings (loss) per share

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME:

1 unchanged sentence

comprehensive income (in thousands) for the

three months ended April 29, 2023:

three months ended July 29, 2023:

Changes in Accumulated Other

3 unchanged sentences

Available-for-Sale

Beginning Balance at January 28, 2023

Other comprehensive income (loss) before

Beginning Balance at April 29, 2023

Other comprehensive income before

reclassification

Amounts reclassified from accumulated

other comprehensive income

Net current-period other comprehensive income (loss)

Ending Balance at April 29, 2023

other comprehensive income (b)

Net current-period other comprehensive income

Ending Balance at July 29, 2023

(a) All amounts are net-of-tax.

Amounts in parentheses indicate a debit/reduction to other comprehensive income ("OCI").

Amounts in parentheses indicate a debit/reduction to other comprehensive income.

(b) Includes $

impact of Accumulated other comprehensive income reclassifications into Interest and other

income for net gains on available-for-sale securities.

The tax impact of this reclassification was $

reclassification

comprehensive income (in thousands) for the

three months ended April 30, 2022:

six months ended July 29, 2023:

Changes in Accumulated Other

4 unchanged sentences

Beginning Balance at January 28, 2023

Other comprehensive income (loss) before

Other comprehensive income before

reclassification

1 unchanged sentence

other comprehensive income (b)

Net current-period other comprehensive income (loss)

Ending Balance at April 30, 2022

Net current-period other comprehensive income

Ending Balance at July 29, 2023

(a) All amounts are net-of-tax.

Amounts in parentheses indicate a debit/reduction to other comprehensive income ("OCI").

Amounts in parentheses indicate a debit/reduction to other comprehensive income.

(b) Includes $

impact of Accumulated other comprehensive income reclassifications into Interest and other

3 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME

reclassification

comprehensive income (in thousands) for the

three months ended July 30, 2022:

Changes in Accumulated Other

Comprehensive Income (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Beginning Balance at April 30, 2022

Other comprehensive income before

reclassifications

Amounts reclassified from accumulated

other comprehensive income (b)

Net current-period other comprehensive income

Ending Balance at July 30, 2022

(a) All amounts are net-of-tax.

Amounts in parentheses indicate a debit/reduction to other comprehensive income.

(b) Includes $

impact of Accumulated other comprehensive income reclassifications into Interest and other

income for net gains on available-for-sale securities.

The tax impact of this reclassification was $

reclassification

comprehensive income (in thousands) for the

six months ended July 30, 2022:

Changes in Accumulated Other

Comprehensive Income (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Beginning Balance at January 29, 2022

Other comprehensive income before

reclassifications

Amounts reclassified from accumulated

other comprehensive income (b)

Net current-period other comprehensive income

Ending Balance at July 30, 2022

(a) All amounts are net-of-tax.

Amounts in parentheses indicate a debit/reduction to other comprehensive income.

(b) Includes $

impact of Accumulated other comprehensive income reclassifications into Interest and other

income for net gains on available-for-sale securities.

The tax impact of this reclassification was $

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NOTE 4 – FINANCING ARRANGEMENTS:

borrowings of

revocable letters

covenants and limitations, including the maintenance of specific financial

ratios with which the Company

reduced borrowing availability,

average interest

rate under the credit facility was

at April 29, 2023 due to

outstanding borrowings.

29, 2023, the

Company has an

unsecured revolving credit

provides for borrowings

million, less the balance of

any revocable letters of credit related

to purchase commitments, and is

amended the revolving credit

agreement to modify

a definition used in

calculating the Company’s

EBITDAR coverage ratio to add back certain income tax receivables for purposes of calculating

the quarter ended July

29, 2023, after giving

effect to the amendment,

the Company was in

compliance with

availability,

at July 29, 2023 due to

borrowings outstanding.

NOTE 5 – REPORTABLE SEGMENT INFORMATION:

has determined

operating segments,

, including Cato,

4 unchanged sentences

Retail and Credit.

The Company has aggregated its

retail operating segments,

The Company has aggregated its three retail operating segments,

280-10, which

8 unchanged sentences

Merchandise for the Company’s retail operating segments is distributed to retail stores

clients in a similar manner.

in a similar manner through

the Company’s single distribution center and is

subsequently sold to customers in

principally in

1 unchanged sentence

United States.

The Company offers its own credit card to its customers

all credit authorizations,

payment processing and collection

efforts are performed by

a separate subsidiary of

The Company offers its own credit

card to its customers and

authorizations,

subsidiary of the Company.

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NOTE 5 – REPORTABLE SEGMENT INFORMATION

2 unchanged sentences

Three Months Ended

April 29, 2023

Six Months Ended

July 29, 2023

Interest and other income

Income before taxes

Interest and other income

Income before

Capital expenditures

Three Months Ended

April 30, 2022

Six Months Ended

July 30, 2022

Interest and other income

Income before taxes

Interest and other income

Income before

Capital expenditures

Total assets as of April 29, 2023

Capital expenditures

Total assets as of July 29, 2023

Total assets as of January 28, 2023

1 unchanged sentence

income taxes to the credit segment.

The following schedule

summarizes the direct

expenses of the

credit segment which

are reflected in

The following schedule summarizes the direct expenses

of the credit segment, which are

reflected in Selling,

general and administrative expenses (in

Three Months Ended

April 29, 2023

April 30, 2022

Six Months Ended

July 29, 2023

July 30, 2022

July 29, 2023

July 30, 2022

Other expenses

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 6 – SHARE BASED COMPENSATION:

two long-term

compensation plans

which stock-based

restricted stock and stock options for grant

to officers, directors and key

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NOTE 6 – STOCK-BASED COMPENSATION:

restricted stock and stock options for grant, to officers, directors and key employees.

Effective May 24,

2 unchanged sentences

available for grant under each of

the plans as of April 29,

the plans as of July 29,

Options and/or restricted stock initially authorized

Options and/or restricted stock available for grant:

April 29, 2023

July 29, 2023

Compensation–Stock Compensation

amortized to compensation expense on a straight-line basis over the related vesting periods.

As of July 29,

, respectively,

average vesting

respectively.

compensation expense

straight-line basis

related vesting

respectively,

unrecognized compensation

expense related

unvested restricted

stock awards,

weighted-average vesting period of

years, respectively.

total compensation expense

administrative expenses in the Condensed Consolidated Statements of Income.

classified as a component

of Selling, general and

administrative expenses in the

Condensed Consolidated

Statements of Income (Loss) and Comprehensive Income

The following

1 unchanged sentence

changes in the

unvested restricted

stock outstanding

three months ended April

shares of unvested

restricted stock

outstanding during

six months ended July

Weighted Average

Grant Date Fair

1 unchanged sentence

Forfeited or expired

Restricted stock awards at April 29, 2023

Restricted stock awards at July 29, 2023

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NOTE 6 – STOCK BASED-COMPENSATION (CONTINUED):

semi-annual offering

% discount through payroll deductions.

During the three months ended April 29, 2023 and

April 30, 2022,

the Company sold

shares to employees at an average discount of $

% discount through payroll

During the six

months ended July 29,

2023 and July 30,

shares to employees

average discount of

respectively, under

2 unchanged sentences

recognized for

approximately

respectively.

administrative

discount given under the Employee

Stock Purchase Plan was approximately

months ended July 29, 2023 and July 30, 2022, respectively.

These expenses are classified as a

Selling, general and administrative expenses.

– FAIR VALUE MEASUREMENTS:

4 unchanged sentences

measured at fair value (in thousands)

as of April 29, 2023 and January

April 29, 2023

as of July 29, 2023 and

January 28, 2023:

July 29, 2023

State/Municipal Bonds

9 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

January 28, 2023

State/Municipal Bonds

12 unchanged sentences

tax-exempt and taxable

debt securities

managed accounts

with underlying

contractual maturities

Certificates of

Deposit have contractual maturities

which range from

These securities are

classified as

governmental debt securities held in managed accounts

with underlying ratings of A or better

at July 29, 2023

Treasury Notes have contractual

maturities which range from

available-for-sale

accompanying Condensed Consolidated Balance Sheets.

These assets are carried at fair value with unrealized

comprehensive

asset-backed securities are

of auto loans

originated and

auto finance units,

finance companies.

asset-backed securities

Citibank, JPMorgan Chase, Capital One, and

Restricted cash and Other assets on the accompanying Condensed Consolidated Balance Sheets.

comprehensive income.

The asset-backed

securities are bonds comprised

of auto loans and

bank credit cards

loan asset-backed

securities are

were originated and serviced by captive auto finance units, banks or finance companies.

The bank credit card

asset-backed securities are backed by revolving pools of credit card receivables generated by account holders

of cards from American Express, Citibank, JPMorgan

Chase, Capital One and Discover.

Additionally,

3 unchanged sentences

million of corporate

equities and deferred compensation

plan assets of $

assets are recorded within

equities and deferred compensation plan assets of $

All of these assets are recorded within

assets in the Condensed Consolidated Balance

Level 1 category securities are measured

at fair value using quoted active

market prices.

Level 2 investment

identical assets are

not available, these

prices are determined

by the pricing

service using observable

characteristics, among other factors.

Level 1 securities are measured at fair value using quoted active market prices.

Level 2 investment securities

available on active exchanges for identical

Their fair value is principally based on market values

observable market information such as quotes from less active markets and/or quoted prices of securities with

similar characteristics, among other factors.

Deferred compensation plan

8 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

compensation obligation,

4 unchanged sentences

actively traded.

measured using Level 3 inputs as of April

29, 2023 and January 28, 2023

(dollars in thousands):

measured using Level

the six months

ended July 29,

year ended January

(in thousands):

Measurements Using

4 unchanged sentences

Total gains or (losses):

Included in interest and other income (or changes in net assets)

Included in interest and other income (or

changes in net assets)

Included in other comprehensive income

Ending Balance at April 29, 2023

Ending Balance at July 29, 2023

Measurements Using

4 unchanged sentences

Total (gains) or losses:

Included in interest and other income (or changes in net assets)

Included in interest and other income (or

changes in net assets)

Included in other comprehensive income

Ending Balance at April 29, 2023

Ending Balance at July 29, 2023

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

Measurements Using

4 unchanged sentences

Total gains or (losses):

Included in interest and other income (or changes in net assets)

Included in interest and other income (or

changes in net assets)

Included in other comprehensive income

3 unchanged sentences

Liability Inputs (Level 3)

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Deferred Compensation

1 unchanged sentence

Total (gains) or losses:

Included in interest and other income (or changes in net assets)

Included in interest and other income (or

changes in net assets)

Included in other comprehensive income

2 unchanged sentences

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NOTE 8 – RECENT ACCOUNTING PRONOUNCEMENTS:

pronouncements

The Company has reviewed recent accounting pronouncements and

believe none will have a material

impact on the Company’s financial statements.

NOTE 9 – INCOME TAXES:

The Company had an effective tax rate for the

first quarter of 2023 of

% compared to an effective tax

% for the first quarter of 2022.

The increase in the 2023 first quarter tax

rate was primarily due

and offshore claim, as a percentage on lower pre-tax earnings.

The Company had

the first six

months of 2023

% compared to

the first six months of 2022.

The change in the effective tax rate for the first six months of 2023 compared

was primarily

Intangible Low-taxed

Income (GILTI),

income taxes, non-deductible officer’s compensation, and increases in foreign tax credits and employment

credits, partially offset by the foreign rate differential.

NOTE 10 – COMMITMENTS AND CONTINGENCIES:

17 unchanged sentences

financial statements.

uncertainties

materially and adversely affect the Company’s

financial condition, results of operations and cash flows in

probable and reasonably estimable.

inherent uncertainties

adverse outcome

materially and

adversely affect

financial condition,

operations and

deemed probable and reasonably estimable.

NOTE 11 – REVENUE RECOGNITION:

6 unchanged sentences

Layaway sales

are recorded as deferred

revenue until the customer

takes possession of, or

forfeits, the merchandise.

cards do not have

11 unchanged sentences

to customers.

wholly-owned subsidiaries.

receivables are

estimated customer credit losses of

for the periods ended April

29, 2023 and April

Company’s wholly-owned

subsidiaries.

of the credit

card receivables are

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

, respectively,

the Company’s

proprietary credit

million for the periods ended April 29, 2023 and April 30, 2022, respectively.

respectively.

months ended July

29, 2023 were

million and $

million, respectively,

compared to $

million for the three and six months ended July 30, 2022,

respectively.

customers (in thousands):

Balance as of

April 29, 2023

July 29, 2023

January 28, 2023

1 unchanged sentence

Gift Card Liability

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NOTE 12 – LEASES:

Company determines

arrangement is

stores, offices,

warehouse space

and equipment.

have remaining

, some of which include options to

extend the lease term for

up to five years

, and some of

Its leases have

remaining lease terms

years based on

the estimated likelihood

include options to

extend the lease

, and some include options to terminate the lease

within one year

Company considers

establish its

right-of-use assets

lease agreements do not contain any material residual value guarantees or material

The Company considers

determining the

restrictive covenants.

2 unchanged sentences

Three Months Ended

April 29, 2023

April 30, 2022

July 29, 2023

July 30, 2022

Operating lease cost (a)

2 unchanged sentences

) million and ($

) million for the three months ended

April 29, 2023 and April 30, 2022, respectively.

(b) Primarily relates to monthly percentage rent for stores not presented on the balance sheet.

) million for the three months ended July 29, 2023 and July 30,

2022, respectively.

(b) Primarily related to monthly percentage rent for stores not presented on the condensed consolidated balance sheets.

Six Months Ended

July 29, 2023

July 30, 2022

Operating lease cost (a)

lease cost (b)

(a) Includes right-of-use asset amortization of ($

) million and ($

) million for the six months ended July 29, 2023 and July 30,

2022, respectively.

(b) Primarily related to monthly percentage rent for stores not presented on the condensed consolidated balance sheets.

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

Supplemental cash flow

4 unchanged sentences

as follows (in thousands):

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Operating cash flow information:

Three Months Ended

April 29, 2023

April 30, 2022

July 29, 2023

July 30, 2022

Cash paid for amounts included in the measurement of lease liabilities

Non-cash activity:

Right-of-use assets obtained in exchange for lease obligations, net of rent violations

Right-of-use assets obtained in exchange for lease obligations

Six Months Ended

July 29, 2023

July 30, 2022

Cash paid for amounts included in the measurement of lease liabilities

Non-cash activity:

Right-of-use assets obtained in exchange for lease obligations

Weighted-average

April 29, 2023

April 30, 2022

July 29, 2023

July 30, 2022

Weighted-average remaining lease term

Weighted-average discount rate

2023, the maturities

liabilities by fiscal

the Company’s

operating leases

are as follows (in thousands):

Total lease payments

1 unchanged sentence

Present value of lease liabilities

(a) Excluding the 3 months ended April 29, 2023.

(a) Excluding the six months ended July 29, 2023

THE CATO CORPORATION

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements