What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2023-11-21 compared with 2023-08-23 · 266 added, 202 removed, 597 unchanged (44% of the section changed)

5 unchanged sentences

Three Months Ended

Six Months Ended

July 29, 2023

July 30, 2022

July 29, 2023

July 30, 2022

Nine Months Ended

(Dollars in thousands, except per share data)

7 unchanged sentences

Costs and expenses, net

Income before income taxes

Income tax expense

Income (loss) before income taxes

Income tax (benefit) expense

Net income (loss)

6 unchanged sentences

for the three and

six months ended July 29, 2023 and $

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

nine months ended October 28, 2023 and ($

the three and nine months ended October 29, 2022,

Comprehensive income (loss)

2 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

July 29, 2023

October 28, 2023

January 28, 2023

5 unchanged sentences

Accounts receivable, net of allowance for customer credit losses of

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

at October 28, 2023 and January 28, 2023, respectively

Merchandise inventories

21 unchanged sentences

shares authorized;

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

issued at October 28, 2023 and January 28, 2023, respectively

Convertible Class B common stock, $

1 unchanged sentence

shares authorized;

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

issued at October 28, 2023 and January 28, 2023, respectively

Additional paid-in capital

7 unchanged sentences

OF CASH FLOWS

Six Months Ended

July 29, 2023

July 30, 2022

Nine Months Ended

October 28, 2023

October 29, 2022

(Dollars in thousands)

Operating Activities:

Adjustments to reconcile net income to net cash provided

Net income (loss)

Adjustments to reconcile net income (loss) to net cash provided

by operating activities:

22 unchanged sentences

Net cash used in financing activities

Net increase in cash, cash equivalents, and restricted cash

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

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

28 unchanged sentences

Balance — July 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 — October 28, 2023

See notes to condensed consolidated financial statements (unaudited).

24 unchanged sentences

Balance — July 30, 2022

Comprehensive income:

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

deferred income tax benefit 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 — October 29, 2022

See notes to condensed consolidated financial statements (unaudited).

2 unchanged sentences

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NINE MONTHS ENDED OCTOBER 28, 2023 AND

OCTOBER 29, 2022

NOTE 1 - GENERAL

The condensed consolidated financial statements

as of July 29,

2023 and for the

twenty-six-week

Corporation and

its wholly-owned

subsidiaries (the

“Company”), and

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

statements have

been included.

adjustments are

normal, recurring

nature unless

The results of the interim period may not be indicative of the results expected

for the entire year.

thirty-nine-week

periods ended October 28, 2023 and October 29, 2022 have been prepared from the accounting records

In the opinion of

management, all adjustments considered

necessary for a fair

presentation of

the financial statements have been included.

All such adjustments are of a normal, recurring nature unless

otherwise noted.

interim period

be indicative

results expected

The interim financial

1 unchanged sentence

in conjunction with

the consolidated financial

the consolidated financial statements

January 28, 2023.

2 unchanged sentences

accounting principles generally accepted in the United States of

On November 16, 2023, the Board of Directors maintained the quarterly

dividend at $

During the third quarter of the current fiscal year,

the Company received an estimate for costs to repair its

corporate jet,

sustained damage

Company determined

Management has determined that it is more

likely than not that the aircraft

will be sold within the next 12

Company reclassified the

an asset held

estimated fair value

million, which

the accompanying Condensed

Consolidated Balance Sheets

as of October 28, 2023.

THE CATO CORPORATION

1 unchanged sentence

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NINE MONTHS ENDED OCTOBER 28, 2023 AND

OCTOBER 29, 2022

NOTE 2 - EARNINGS PER SHARE:

21 unchanged sentences

Three Months Ended

Six Months Ended

July 29, 2023

July 30, 2022

July 29, 2023

July 30, 2022

Nine Months Ended

(Dollars in thousands)

10 unchanged sentences

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NINE MONTHS ENDED OCTOBER 28, 2023 AND

OCTOBER 29, 2022

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME:

1 unchanged sentence

comprehensive income (in thousands) for the

three months ended July 29, 2023:

three months ended October 28, 2023:

Changes in Accumulated Other

3 unchanged sentences

Available-for-Sale

Beginning Balance at April 29, 2023

Beginning Balance at July 29, 2023

Other comprehensive income before

3 unchanged sentences

Net current-period other comprehensive income

Ending Balance at July 29, 2023

Ending Balance at October 28, 2023

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

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

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

(b) Includes $

4 unchanged sentences

comprehensive income (in thousands) for the

six months ended July 29, 2023:

nine months ended October 28, 2023:

Changes in Accumulated Other

9 unchanged sentences

Net current-period other comprehensive income

Ending Balance at July 29, 2023

Ending Balance at October 28, 2023

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

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

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

(b) Includes $

5 unchanged sentences

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NINE MONTHS ENDED OCTOBER 28, 2023 AND

OCTOBER 29, 2022

NOTE 3 – ACCUMULATED OTHER COMPREHENSIVE INCOME

1 unchanged sentence

comprehensive income (in thousands) for the

three months ended July 30, 2022:

three months ended October 29, 2022:

Changes in Accumulated Other

3 unchanged sentences

Available-for-Sale

Beginning Balance at April 30, 2022

Beginning Balance at July 30, 2022

Other comprehensive income before

3 unchanged sentences

Net current-period other comprehensive income

Ending Balance at July 30, 2022

Ending Balance at October 29, 2022

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

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

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

(b) Includes $

4 unchanged sentences

comprehensive income (in thousands) for the

six months ended July 30, 2022:

nine months ended October 29, 2022:

Changes in Accumulated Other

9 unchanged sentences

Net current-period other comprehensive income

Ending Balance at July 30, 2022

Ending Balance at October 29, 2022

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

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

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

(b) Includes $

5 unchanged sentences

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NINE MONTHS ENDED OCTOBER 28, 2023 AND

OCTOBER 29, 2022

NOTE 4 – FINANCING ARRANGEMENTS:

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

As of October 28, 2023, the Company has an unsecured revolving credit line, which provides for borrowings

million, less

revocable letters

purchase commitments,

committed through

The revolving

credit agreement

contains various

financial covenants

and limitations,

including the

maintenance of

specific financial

amended the revolving

credit agreement

the calculation

Company’s EBITDAR

coverage ratio

minimum EBITDAR

coverage ratio

quarter ended

forward, the Company

was in compliance

with the amended

credit agreement for

the quarter ended

compliance without

giving effect

availability,

at July 29, 2023 due to

October 28, 2023.

The weighted average

interest rate under

the credit facility

at October 28,

borrowings outstanding.

8 unchanged sentences

Retail and Credit.

The Company has aggregated its three retail operating segments,

The Company has aggregated its

retail operating segments,

280-10, which

11 unchanged sentences

subsequently sold to customers in

Company operates

specialty retail

principally in

8 unchanged sentences

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NINE MONTHS ENDED OCTOBER 28, 2023 AND

OCTOBER 29, 2022

NOTE 5 – REPORTABLE SEGMENT INFORMATION

2 unchanged sentences

Three Months Ended

Six Months Ended

July 29, 2023

Nine Months Ended

October 28, 2023

Interest and other income

Income before

Income (loss) before

Capital expenditures

1 unchanged sentence

Three Months Ended

Six Months Ended

July 30, 2022

Nine Months Ended

October 29, 2022

Interest and other income

Income before

Income (loss) before

Income before

1 unchanged sentence

Capital expenditures

Total assets as of July 29, 2023

Total assets as of October 28, 2023

Total assets as of January 28, 2023

The Company evaluates segment performance based on

income before income taxes.

The Company does not

allocate certain corporate expenses or

5 unchanged sentences

Three Months Ended

Six Months Ended

July 29, 2023

July 30, 2022

July 29, 2023

July 30, 2022

Nine Months Ended

Other expenses

3 unchanged sentences

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NINE MONTHS ENDED OCTOBER 28, 2023 AND

OCTOBER 29, 2022

NOTE 6 – STOCK-BASED COMPENSATION:

As of October 28, 2023,

the Company had

long-term compensation plans pursuant to

which stock-based

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

3 unchanged sentences

available for grant under each of

the plans as of July 29,

the plans as of October 28,

Options and/or restricted stock initially authorized

Options and/or restricted stock available for grant:

July 29, 2023

October 28, 2023

Compensation–Stock Compensation

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

As of July 29,

amortized to compensation expense on a straight-line basis over the

related vesting periods.

As of October

respectively,

average vesting

unrecognized compensation expense

related to nonvested

restricted stock awards,

weighted-average

respectively.

respectively,

compensation expense

respectively.

classified as a component

of Selling, general and

administrative expenses in the

Condensed Consolidated

Statements of Income (Loss) and Comprehensive Income

The following

summary shows the

changes in the

shares of unvested

restricted stock

outstanding during

six months ended July

component of Selling,

general and administrative expenses

in the Condensed

Consolidated Statements of

Income (Loss) and Comprehensive Income (Loss).

The following summary

shows the changes

in the number

unvested restricted stock

the nine months ended

Weighted Average

2 unchanged sentences

Forfeited or expired

Restricted stock awards at July 29, 2023

Restricted stock awards at October 28, 2023

THE CATO CORPORATION

1 unchanged sentence

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NINE MONTHS ENDED OCTOBER 28, 2023 AND

OCTOBER 29, 2022

NOTE 6 – STOCK BASED-COMPENSATION (CONTINUED):

semi-annual offering

% discount through payroll

During the six

months ended July 29,

2023 and July 30,

shares to employees

average discount of

respectively, under

Stock Purchase

compensation expense

% discount through

payroll deductions.

During the nine

per share, respectively,

under the Employee

Stock Purchase Plan.

The compensation expense

recognized for

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.

Stock Purchase

approximately $

respectively.

classified as a component of Selling,

general and administrative expenses.

– FAIR VALUE MEASUREMENTS:

4 unchanged sentences

measured at fair value (in thousands)

as of July 29, 2023 and

January 28, 2023:

July 29, 2023

as of October 28, 2023 and January

October 28, 2023

State/Municipal Bonds

10 unchanged sentences

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NINE MONTHS ENDED OCTOBER 28, 2023 AND

OCTOBER 29, 2022

January 28, 2023

13 unchanged sentences

tax-exempt and taxable

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

governmental debt securities held

in managed accounts with

underlying ratings of A

Treasury Notes

have contractual maturities which range from

available-for-sale

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.

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

unrealized gains

in Accumulated

other comprehensive income.

asset-backed securities are bonds

comprised of auto loans

and bank credit

cards that carry

asset-backed securities

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

The bank credit

card receivables

holders of cards from American Express, Citibank,

JPMorgan Chase, Capital One and Discover.

Additionally,

9 unchanged sentences

available on active exchanges for identical

Their fair value is principally based on market values

Their fair value is principally based on market

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

11 unchanged sentences

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NINE MONTHS ENDED OCTOBER 28, 2023 AND

OCTOBER 29, 2022

compensation obligation,

4 unchanged sentences

actively traded.

measured using Level

the six months

ended July 29,

measured using

inputs for the

ended October

year ended January

9 unchanged sentences

Included in other comprehensive income

Ending Balance at July 29, 2023

Ending Balance at October 28, 2023

Measurements Using

7 unchanged sentences

Included in other comprehensive income

Ending Balance at July 29, 2023

Ending Balance at October 28, 2023

THE CATO CORPORATION

1 unchanged sentence

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NINE MONTHS ENDED OCTOBER 28, 2023 AND

OCTOBER 29, 2022

Measurements Using

21 unchanged sentences

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NINE MONTHS ENDED OCTOBER 28, 2023 AND

OCTOBER 29, 2022

NOTE 8 – RECENT ACCOUNTING PRONOUNCEMENTS:

3 unchanged sentences

NOTE 9 – INCOME TAXES:

The Company had

the first six

months of 2023

The Company had an effective tax rate

for the first nine 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

the first nine months of 2022.

The change in the effective tax

rate for the first nine months was

due to increases in foreign rate differential and the release of reserves for uncertain tax positions,

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.

income taxes,

non-deductible

compensation, and foreign tax credits, as percentages on a pre-tax

NOTE 10 – COMMITMENTS AND CONTINGENCIES:

The Company is, from time to time, involved in routine litigation incidental to the conduct of its business,

litigation instituted

premises under

litigation with

discrimination and

present or former employees.

litigation instituted by persons injured upon premises under the Company’s control, litigation with respect

discrimination

litigation with present or former employees.

Although such

40 unchanged sentences

and accrued) are classified as Cost of goods sold.

THE CATO CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS AND

NINE MONTHS ENDED OCTOBER 28, 2023 AND

OCTOBER 29, 2022

own proprietary

4 unchanged sentences

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,

and nine months ended October 28, 2023, the

Company estimated customer credit losses of $

, respectively,

months ended July

29, 2023 were

million and $

million, respectively,

compared to $

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

for the three

and nine months

ended October

respectively.

Sales purchased

proprietary credit

respectively,

million and $

million for the three and nine months ended October 29, 2022, respectively.

customers (in thousands):

Balance as of

July 29, 2023

October 28, 2023

January 28, 2023

4 unchanged sentences

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NINE MONTHS ENDED OCTOBER 28, 2023 AND

OCTOBER 29, 2022

NOTE 12 – LEASES:

18 unchanged sentences

Three Months Ended

July 29, 2023

July 30, 2022

October 28, 2023

October 29, 2022

Operating lease cost (a)

2 unchanged sentences

) million and ($

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

2022, respectively.

) million for the three months ended October 28, 2023 and

October 29, 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

Nine Months Ended

October 28, 2023

October 29, 2022

Operating lease cost (a)

2 unchanged sentences

) million and ($

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

2022, respectively.

) million for the nine months ended October 28, 2023 and

October 29, 2022, respectively.

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

2 unchanged sentences

FOR THE THREE MONTHS AND

SIX MONTHS ENDED JULY 29, 2023 AND JULY

NINE MONTHS ENDED OCTOBER 28, 2023 AND

OCTOBER 29, 2022

Supplemental cash flow

6 unchanged sentences

Three Months Ended

July 29, 2023

July 30, 2022

October 28, 2023

October 29, 2022

Cash paid for amounts included in the measurement of lease liabilities

1 unchanged sentence

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

Six Months Ended

July 29, 2023

July 30, 2022

Nine Months Ended

October 28, 2023

October 29, 2022

Cash paid for amounts included in the measurement of lease liabilities

2 unchanged sentences

Weighted-average

July 29, 2023

July 30, 2022

October 28, 2023

October 29, 2022

Weighted-average remaining lease term

3 unchanged sentences

Present value of lease liabilities

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

(a) Excluding the nine months ended October 28, 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