What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2025-03-31 compared with 2024-03-27 · 541 added, 304 removed, 1177 unchanged (42% of the section changed)

5 unchanged sentences

for the fiscal

years ended February 3, 2024, January 28, 2023 and January 29, 2022 ................................

Consolidated Balance Sheets at February 3, 2024 and January 28, 2023

years ended February 1, 2025, February 3, 2024 and January 28, 2023 ................................

Consolidated Balance Sheets at February 1, 2025 and February 3, 2024

.............................................

Consolidated Statements of Cash Flows for the fiscal years ended February 1, 2025,

January 28, 2023

February 3, 2024

and January 28, 2023................................

2 unchanged sentences

Consolidated Statements of Stockholders’ Equity for the fiscal years ended February 1,

January 28, 2023 and January 29, 2022 ................................................................

February 3, 2024 and January 28, 2023 ................................................................

............................

2 unchanged sentences

and Qualifying Accounts for the fiscal years ended February 1, 2025,

January 28, 2023 and January 29, 2022 ................................................................

February 3, 2024 and January 28, 2023 ................................................................

............................

3 unchanged sentences

We have audited the accompanying consolidated balance sheets of The Cato Corporation and its

subsidiaries (the “Company”) as of February 3, 2024 and

January 28, 2023, and the related consolidated

statements of income (loss), of comprehensive income (loss), of stockholders’

subsidiaries (the "Company") as of February 1, 2025 and February 3, 2024,

and the related consolidated

statements of income (loss) and comprehensive income (loss), of stockholders'

equity and of cash flows

5 unchanged sentences

We also have audited the Company's internal control over financial reporting as of

February 3, 2024, based on criteria established in Internal Control - Integrated

Framework (2013) issued

February 1, 2025, based on criteria established in

Internal Control - Integrated Framework

(2013) issued

by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

2 unchanged sentences

respects, the financial position of the Company as of February

3, 2024 and January 28, 2023, and the

1, 2025 and February 3, 2024, and the

results of its operations and its cash flows for each of the three years

4 unchanged sentences

over financial

reporting as of February 3, 2024, based on criteria established in Internal

Control - Integrated Framework

reporting as of February 1, 2025, based on criteria established

Internal Control - Integrated Framework

(2013) issued by the COSO.

82 unchanged sentences

be communicated to the audit

committee and that (i) relates to accounts or disclosures that are material

to the consolidated financial

committee and that (i) relates to accounts or disclosures that are material to

the consolidated financial

statements and (ii) involved our especially challenging, subjective, or

39 unchanged sentences

The principal considerations for our determination that performing

procedures relating to the impairment

of long-lived assets – store location asset groupings is a critical audit matter

are (i) the significant

judgment by management when determining the fair value measurement

of the store location asset

groupings, which led to (ii) a high degree of auditor judgment, subjectivity, and effort in performing

procedures and evaluating management’s projected cash flow assumptions related to contribution margin

procedures relating to impairment of

long-lived assets – store location asset groupings is a critical audit

matter are (i) the significant judgment

by management when determining the fair value measurement of the

store location asset groupings,

which led to (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and

evaluating management’s projected cash flow assumptions related to contribution margin projections.

Addressing the matter involved performing procedures and evaluating

3 unchanged sentences

the effectiveness of controls relating to management’s long-lived assets – store location recoverability test

and determination of the fair value of the asset group.

These procedures

also included, among others (i)

testing the completeness and accuracy of underlying data used in the projected

cash flows and store

and determination of the fair value of the asset groupings.

These procedures also included, among others,

(i) testing the completeness and accuracy of underlying data used in

the projected cash flows and store

location asset groupings, (ii) evaluating the reasonableness of management’s assumptions related to

17 unchanged sentences

February 1, 2025

January 28, 2023

February 3, 2024

January 28, 2023

23 unchanged sentences

and 2022, respectively

Comprehensive income (loss)

Comprehensive loss

See notes to consolidated financial statements.

2 unchanged sentences

February 1, 2025

January 28, 2023

February 3, 2024

(Dollars in thousands)

5 unchanged sentences

February 1, 2025 and $

at January 28, 2023

at February 3, 2024

Merchandise inventories

2 unchanged sentences

Property and equipment – net

Deferred income taxes

Right-of-Use assets - net

4 unchanged sentences

Accrued bonus and benefits

Accrued income taxes

Current lease liability

11 unchanged sentences

shares issued at

February 3, 2024 and January 28, 2023, respectively

February 1, 2025 and February 3, 2024, respectively

Convertible Class B common stock, $

2 unchanged sentences

shares issued at

February 3, 2024 and January 28, 2023, respectively

February 1, 2025 and February 3, 2024

Additional paid-in capital

9 unchanged sentences

February 1, 2025

January 28, 2023

February 3, 2024

January 28, 2023

2 unchanged sentences

Net income (loss)

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

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

by operating activities:

1 unchanged sentence

Purchase premium and premium amortization of investments

Gain on sale of assets held for investment

(Gain) Loss on sale of assets held for investment

Share based compensation

9 unchanged sentences

Accounts payable, accrued expenses and other liabilities

Net cash provided by operating activities

Net cash (used in) provided by operating activities

Investing Activities:

2 unchanged sentences

Sales of short-term investments

Purchase of other assets

Sales of other assets

Net cash provided by (used in) investing activities

Net cash provided by investing activities

Financing Activities:

3 unchanged sentences

Net cash used in financing activities

Net increase in cash, cash equivalents, and restricted cash

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

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

2 unchanged sentences

Accrued property and equipment expenditures

Accrued treasury stock

See notes to consolidated financial statements.

4 unchanged sentences

Stockholders'

(Dollars in thousands)

(Dollars in thousands, except per share data)

Balance — January 29, 2022

Comprehensive income:

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

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

deferred income tax benefit of $

5 unchanged sentences

Comprehensive income:

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

deferred income tax benefit of ($

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

deferred income tax expense of $

Dividends paid ($

2 unchanged sentences

Repurchase and retirement of treasury shares

Balance — January 28, 2023

Balance — February 3, 2024

Comprehensive income:

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

deferred income tax expense of $

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

deferred income tax benefit of $

Dividends paid ($

23 unchanged sentences

Fiscal year 2024 is

a 53-week year and 2022 and 2021 are

-week year, 2023 is a

-week year and 2022 is a

generally accepted

21 unchanged sentences

million in escrow at February 1, 2025 and

January 28, 2023, respectively, as security and collateral for administration of the Company’s

February 3, 2024, respectively, as security and collateral for administration of the Company’s

Consolidated Balance Sheets.

2 unchanged sentences

received, for

2024, January

and a payment of $

2025, February

and a refund of $

, respectively.

29 unchanged sentences

remodeling of

Company periodically

store locations

and estimates

the recoverability

lived assets,

which primarily relate

and equipment,

Leasehold improvements,

Right-of-use assets

determines that

projected cash

flows associated

and hardware.

The Company periodically reviews its store locations and estimates the recoverability of its

long-lived assets,

be sufficient

determination

considers real estate development in

perceived local market conditions, which

can be difficult

predict and may be

subject to change.

impairment charges of $

incurred in fiscal 2023, fiscal 2022 and fiscal 2021, respectively.

which primarily

equipment, Leasehold

improvements, Right-of-

recorded for the

amount by which

the carrying value

exceeds the estimated

fair value when

sufficient to recover the

carrying value.

This determination is

based on a number of

factors, including the

The Company assesses the fair

value of each lease by

considering market rents and any lease

determining when

Company considers real

estate development

perceived local

market conditions,

impairment charges

were incurred in fiscal 2024, fiscal 2023 and fiscal 2022, respectively.

Other Assets:

5 unchanged sentences

February 1, 2025

January 28, 2023

February 3, 2024

(Dollars in thousands)

6 unchanged sentences

For purposes of recognizing incentives and minimum rental expenses on

a straight-line basis over the terms of the leases, including renewal periods considered reasonably

THE CATO CORPORATION

1 unchanged sentence

— (Continued)

a straight-line basis over the terms of the leases, including renewal periods considered reasonably

the Company begins amortization

3 unchanged sentences

takes possession

merchandise and pays

purchase, generally with

merchandise and

the purchase,

generally with cash

E-commerce sales

recorded when

deferred revenue

customer takes

possession or

the merchandise.

have expiration dates.

A provision is

made for estimated

expiration dates.

Layaway sales

revenue until

the customer takes possession or forfeits the merchandise.

A provision is made for estimated merchandise

returns based

1 unchanged sentence

from historical amounts.

A provision is made for estimated write-offs associated with sales made with

A provision is made for estimated write-offs associated with sales

made with the

Company’s proprietary credit card.

In addition, a provision is made for estimated rewards cards issued

handling billed

are classified

costs related to shipping product to customers (billed and accrued) are classified

as Cost of goods sold.

In addition, a provision is made for estimated rewards cards issued to

customers based

purchases with the

Company’s propriety

by the Company have a

-day expiration.

Amounts related to shipping and handling billed to

customers (billed and accrued) are classified as Cost of goods sold.

In accordance with ASU 2014-09,

7 unchanged sentences

breakage percentage

miscellaneous

issued by the Company have a 90-day expiration.

redeemed gift cards.

See Note 2 for further information on miscellaneous

proprietary credit

3 unchanged sentences

the Company’s

credit card of $

million and $

million for the twelve months

ended February 3, 2024 and January

28, 2023, respectively.

February 3, 2024, respectively.

The following table provides information about receivables

3 unchanged sentences

February 1, 2025

January 28, 2023

February 3, 2024

Proprietary Credit Card Receivables, net

19 unchanged sentences

for the fiscal years ended February 1,

2024, January 28, 2023 and January 29, 2022, respectively.

2025, February 3, 2024 and January 28, 2023, respectively.

Stock Repurchase Program:

2 unchanged sentences

authorizations.

repurchase program.

Share repurchases are recorded in Retained

earnings, net of par value.

earnings, net

December 23, 2024.

accompanying Consolidated Statements of

Income (Loss) and Comprehensive

Income (Loss).

Income (Loss) and

Comprehensive Income (Loss).

Company’s certificate

23 unchanged sentences

the fiscal years ended

3, 2024, January 28, 2023 and January 29, 2022:

1, 2025, February 3, 2024 and January 28, 2023:

Fiscal Year Ended

February 1, 2025

January 28, 2023

February 3, 2024

January 28, 2023

85 unchanged sentences

estimated forfeitures.

consolidated financial statements in the first quarter of fiscal 2024.

subsidiaries,

Agreement”) and

documents, by

subsidiaries,

establish an asset-based revolving credit facility (the “ABL Facility”) in an amount up to $

proceeds from the ABL

Facility may be used to

provide funding for ongoing working capital

THE CATO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

— (Continued)

corporate purposes.

The ABL Credit Agreement replaces

the credit agreement, dated as of

May 19, 2022,

time, between

certain domestic

subsidiaries of

principal or accrued interest was outstanding under

the credit facility under the Prior

Credit Agreement at

the time of its termination on March 13, 2025.

The ABL Facility may be

used for revolving credit

loans and letters of

credit from time to

a maximum principal amount of $

million, less an amount equal to the greater of (a)

% of the lesser

of the borrowing base described below and $

million and (b) $

million, subject to the other limitations

described below.

The ABL Facility includes a $

million uncommitted accordion feature that permits the

principal amount

sub-facility that

Facility at closing of the ABL Credit Agreement was $

eligible credit card receivables and inventory, reduced by specified reserves, as follows:

% of eligible credit card receivable, plus

% of net recovery percentage of eligible inventory multiplied by most recent appraised value of

calculated at

first-in first-out

market value (net of intercompany profits and certain other adjustments), minus

applicable reserves (as defined in the ABL Credit Agreement).

permits borrowings

rate (calculated

federal funds rate plus

, (ii) the SOFR rate

described below for an interest period of

one month, plus

rate of interest

announced, from time to

Lender’s “prime rate”

six-month interest

periods (with

secured overnight

bear interest at an annual

rate equal to SOFR for

the interest period selected plus

basis points plus

basis points.

Facility charges

on unutilized

commitments at

commitments are

unutilized and

commitments are

Facility charges

collateral monitoring fee and customary fees for letters of credit.

The ABL Facility

matures on March

The ABL Facility

may be prepaid

including, without limitation, outstanding borrowing exposures

exceeding the borrowing base and

dispositions of assets outside of the ordinary course of business.

Accrued interest is payable (a) at the end

of each interest period for borrowings based upon the SOFR

rate (but not to exceed three months) and

monthly for borrowings based upon the base rate.

obligations under

certain related

obligations) are

other borrowers

the Company’s

future domestic

subsidiaries is

addition, the

borrowers’ obligations are

a first-priority

Loan Parties,

subject to certain exceptions.

THE CATO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

— (Continued)

Cash Dominion.

ABL Facility,

default exists

borrowing availability

Availability”)

become subject

cash dominion,

require prepayment

the cash deposited in

certain deposit accounts of

the Loan Parties, including

a concentration account, and

concentration

dominion period

longer exists,

and in the case of when Excess Availability falls below the threshold described in the first sentence of this

paragraph, when Excess Availability exceeds such threshold for a period of

consecutive days.

customary representations

warranties, affirmative

negative covenants

qualifications),

Company’s ability to, among other things:

incur additional indebtedness;

create liens on its assets;

make investments, including loans and advances to foreign subsidiaries;

pay dividends and make other restricted payments;

sell certain assets outside of the ordinary course of business;

consolidate, merge, sell or otherwise dispose of all or substantially all of the Company’s assets;

make acquisitions;

enter into transactions with affiliates.

acquisitions,

indebtedness,

substantially

payments, if the Company can satisfy the following payment conditions:

no default or event of

default under

revolving credit loans

outstanding, (iii) the

have unrestricted

million, (iv)

business days’

compliance with the foregoing clauses and demonstrating the calculations required

Recently Adopted Accounting

Pronouncements:

Standards Board (“FASB”)

issued Accounting Standards

Update (“ASU”) 2023-07,

“Segment Reporting

Improvements to Reportable Segment Disclosures”, which modifies disclosure requirements

In November 2023,

07, “Segment Reporting (Topic

Improvements to Reportable Segment Disclosures,”

which requires

fourth quarter

retrospective application

periods presented

financial statements.

Company's financial

statements in

additional information related to segment expenses.

Recently Issued Accounting Pronouncements:

In December 2023, the

issued ASU 2023-09,

“Income Taxes (Topic

Improvements to Income Tax Disclosures,” which modifies the requirements

on income tax disclosures to require disaggregated information about

a reporting entity’s effective tax rate

reconciliation

beginning after

December 15, 2024

public business

entities, with early

adoption and retrospective

adoption of this new guidance on its consolidated financial statements and

related disclosures.

“Income Statement—Reporting

Comprehensive

Income—Expense

Disaggregation

THE CATO CORPORATION

1 unchanged sentence

— (Continued)

adding significant

segment expenses, other

segment items, title

also requires

disclosure about

interim periods.

This guidance

years beginning

after December

periods within fiscal

years beginning after

Early adoption is

retrospectively to

guidance on its consolidated financial statements and related disclosures.

Disclosures”,

disaggregated

reconciliation

information on

This guidance

years beginning

after December

15, 2024 for all public

business entities, with early adoption and retrospective application

of evaluating

the potential

on its consolidated financial statements and related disclosures.

guidance is effective for annual periods beginning after December 15, 2026 and for interim periods within

fiscal years beginning after December 15, 2027, with early adoption permitted.

The Company is currently

financial statements and related disclosures.

Interest and Other Income:

2 unchanged sentences

February 1, 2025

January 28, 2023

February 3, 2024

January 28, 2023

20 unchanged sentences

comprehensive

February 3, 2024 and January 28, 2023 (in thousands):

THE CATO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

— (Continued)

February 1, 2025 and February 3, 2024 (in thousands):

February 1, 2025

January 28, 2023

February 3, 2024

Debt securities

14 unchanged sentences

(in thousands):

THE CATO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

— (Continued)

February 1, 2025

January 28, 2023

February 3, 2024

Security Type

7 unchanged sentences

assets that are measured

at fair value as of February 3, 2024 and January 28, 2023 (in thousands):

at fair value as of February 1, 2025 and February 3, 2024 (in thousands):

February 1, 2025

4 unchanged sentences

Asset-backed Securities (ABS)

Corporate Equities

Deferred Compensation

Total Liabilities

January 28, 2023

February 3, 2024

State/Municipal Bonds

4 unchanged sentences

Corporate Equities

Commercial Paper

Deferred Compensation

5 unchanged sentences

asset-backed securities have contractual maturities

to 2.0 years.

securities are classified as

available-for-sale and are recorded

Accumulated other comprehensive income.

The asset-backed securities are bonds

comprised of auto loans

loan asset-backed securities

THE CATO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

— (Continued)

from American

Capital One, and Discover.

which range from

Treasury notes have contractual maturities which range

securities are classified

as available-for-sale

accompanying Consolidated

Balance Sheets.

comprehensive income.

Additionally,

corporate equities,

respectively,

recorded within

Consolidated Balance Sheets.

investment securities include corporate and municipal bonds for which quoted prices may

not be available on

active exchanges for identical instruments.

Their fair value is principally based on market values determined

by management with the assistance of a third-party pricing service.

Since quoted prices in active markets for

identical assets are

not available, these

prices are determined

by the pricing

service using observable

characteristics, among other factors.

THE CATO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

— (Continued)

available on active exchanges for identical

Their fair value is principally based on market

determined by management with the assistance

of a third-party pricing service.

Since quoted prices in active

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

similar characteristics, among other factors.

policies are valued based on the cash surrender value of the insurance contract, which is determined based

5 unchanged sentences

money market funds that are observable and actively traded.

THE CATO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

— (Continued)

The following tables summarize

4 unchanged sentences

years ended February 1, 2025 and

January 28, 2023

February 3, 2024

(in thousands):

THE CATO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

— (Continued)

Measurements Using

2 unchanged sentences

Surrender Value

Beginning Balance at January 28, 2023

Beginning Balance at February 3, 2024

Total gains or (losses)

5 unchanged sentences

Liability Inputs (Level 3)

Beginning Balance at January 28, 2023

Beginning Balance at February 3, 2024

Total (gains) or losses

10 unchanged sentences

changes in net assets)

Ending Balance at January 28, 2023

Ending Balance at February 3, 2024

Measurements Using

5 unchanged sentences

changes in net assets)

Ending Balance at January 28, 2023

Ending Balance at February 3, 2024

THE CATO CORPORATION

4 unchanged sentences

February 1, 2025

January 28, 2023

February 3, 2024

Customer accounts — principally deferred payment accounts

8 unchanged sentences

for the fiscal

years ended February 3, 2024, January 28, 2023

years ended February 1, 2025, February 3, 2024

and January 28,

4 unchanged sentences

Consolidated Statements of Income (Loss) and Comprehensive Income

Miscellaneous

Company’s corporate jet, which had sustained damage at the end of the second quarter.

During fiscal 2024, the Company received $

million from the insurance claim settlement and sale of

its corporate

had sustained

million which

the accompanying

Consolidated Statements

Income (Loss) and Comprehensive Income (Loss) for the year ended February

Property and Equipment:

1 unchanged sentence

February 1, 2025

January 28, 2023

February 3, 2024

Land and improvements

8 unchanged sentences

distribution center improvements and investments in new technology.

THE CATO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

— (Continued)

Accrued Expenses:

1 unchanged sentence

February 1, 2025

January 28, 2023

February 3, 2024

Accrued employment and related items

5 unchanged sentences

Financing Arrangements:

revolving credit

agreement, which

Company further

minimum EBITDAR

borrowings outstanding,

outstanding letters

borrowing availability,

credit facility

average interest

credit facility

At February 1,

2025, the Company had

outstanding revocable letters of credit relating to purchase commitments at February

3, 2024 or at January 28, 2023.

an unsecured revolving credit

agreement, which provided

borrowings of

revocable letters

commitments, and

was committed

credit agreement

contained various

covenants and limitations, including the maintenance of specific

financial ratios with which the Company

was not in compliance as of

February 1, 2025.

borrowings outstanding, or any outstanding

credit, under

ended February

Company terminated

unsecured revolving

credit when it entered into

million asset-backed revolving line of credit

(the “ABL Facility”)

secured primarily by

inventory and third-party

credit card receivables.

31, 2025 there

additional information regarding the ABL Facility, see Note 1 to the Consolidated Financial Statements.

February 1, 2025 or at February 3, 2024.

2024, the Company amended

the now terminated

unsecured revolving credit agreement

to modify a definition used in calculating the Company’s

minimum EBITDAR coverage ratio to add back

corresponding minimum

determine the

EBITDAR coverage ratio in exchange for a secured position in any

future borrowings.

Stockholders’ Equity:

5 unchanged sentences

converted at any time into one share of Class A Common Stock.

Subject to the rights of the holders of any

Subject to the rights of

the holders of any

Preferred Stock

17 unchanged sentences

Class B Common

partnerships controlled

Company’s employee benefit

13 unchanged sentences

discretion of

contribution for

ended February

The Company’s

contributions

2022 were approximately $

, respectively.

The Company has a trusteed, non-contributory Employee Stock Ownership Plan (“ESOP”), which

covers substantially all associates who meet minimum age and service requirements.

THE CATO CORPORATION

1 unchanged sentence

— (Continued)

approximately

, respectively.

The Company has a trusteed, non-contributory Employee Stock Ownership Plan (“ESOP”), which

covers substantially all associates who meet minimum age and service requirements.

Company’s discretionary

2 unchanged sentences

Compensation Committee of the

Board of Directors and can be

made in Company Class A Common stock or

Due to a net operating

contributions

January 28, 2023 and January 29, 2022, respectively.

Board of Directors and

can be made in

Company Class A Common

stock or cash.

net operating

Committee did

contribution was

year ended January 28, 2023.

The Company is primarily self-insured for healthcare.

12 unchanged sentences

the historical

trend is not indicative of future trends, then the Company may be required to record

additional expense or

trend is not indicative of future trends, then the Company may be required to

record additional expense or

period recorded.

21 unchanged sentences

February 1, 2025

February 3, 2024

January 28, 2023

2 unchanged sentences

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

) million, ($

) million, and ($

) million for the twelve months

ended February 3, 2024 and January 28, 2023, respectively.

) million for the twelve months ended

February 1, 2025, February 3, 2024, and January 28, 2023 respectively.

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

4 unchanged sentences

are as follows (in thousands):

THE CATO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

— (Continued)

Operating cash flow information:

1 unchanged sentence

February 1, 2025

February 3, 2024

January 28, 2023

Cash paid for amounts included in the measurement of lease liabilities

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, net of rent violations

THE CATO CORPORATION

6 unchanged sentences

February 1, 2025

January 28, 2023

February 3, 2024

Weighted-average remaining lease term

13 unchanged sentences

circumstances.

approximately

gross unrecognized

totaling approximately

the gross unrecognized tax benefits,

and interest and penalties, $

million would affect the

effective tax

approximately

million (inclusive

Company had approximately $

million and $

million of interest and

penalties accrued

penalties accrued related

to uncertain tax

positions as of

February 1, 2025,

February 3, 2024

respectively.

Company recognizes

and penalties

Consolidated Statements

Comprehensive

Income (Loss) for the years ended February 3, 2024, January 28, 2023

and January 29, 2022, respectively.

resolution of

uncertain tax

Comprehensive Income

respectively.

jurisdictions,

which a range cannot be determined.

exposure before

months, various

authorities’ statutes

reduction of unrecognized tax benefits for which a range cannot be determined.

A reconciliation

1 unchanged sentence

ending amount

unrecognized tax

unrecognized tax benefits

(in thousands):

3 unchanged sentences

February 1, 2025

January 28, 2023

February 3, 2024

January 28, 2023

8 unchanged sentences

February 1, 2025

January 28, 2023

February 3, 2024

January 28, 2023

8 unchanged sentences

and liabilities

January 28, 2023 are as follows

February 3, 2024 are as follows

(in thousands):

February 1, 2025

January 28, 2023

February 3, 2024

Deferred tax assets:

7 unchanged sentences

Charitable contribution carryover

State tax credits

Lease liabilities

12 unchanged sentences

February 1, 2025

February 3, 2024

January 28, 2023

3 unchanged sentences

Allowance Ending Balance

The Company had $

million of state tax credits to offset future state income tax expense, which expired

during fiscal 2023.

The Company had previously

recorded a valuation allowance of $

As of February

17 unchanged sentences

allowance for the same amount.

attributable to

carryforwards,

1 unchanged sentence

other deferred

THE CATO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

— (Continued)

deferred tax liabilities.

12 unchanged sentences

net of deferred tax liabilities.

The net change in the

valuation allowance of $

million for the year ended February

3, 2024 is due to

THE CATO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

— (Continued)

The net change

in the valuation

allowance of $

million for the

year ended February

recording a valuation allowance of

5 unchanged sentences

other deferred

allowance for the year ended January 28, 2023

is due to state net operating losses and

state tax credits.

liabilities, including $

million against state net operating losses.

The net change in the valuation allowance

carryforwards,

carryforwards, all

other deferred

liabilities, state

net operating

undistributed

13 unchanged sentences

February 1, 2025

January 28, 2023

February 3, 2024

January 28, 2023

1 unchanged sentence

State income taxes

CARES ACT - Carryback differential

Global intangible low-taxed income

5 unchanged sentences

Addback on wage related credits

Tax exempt interest

Tax credits - Other

Charitable contribution of inventory

5 unchanged sentences

the valuation allowance (discussed above)

carryforwards, other credit carryforwards and all other deferred tax assets

net of deferred tax liabilities.

carryforwards, other credit carryforwards and all other deferred tax assets net

of deferred tax liabilities.

Reportable Segment Information:

22 unchanged sentences

all credit authorizations, payment processing

and collection efforts are performed by a

wholly-owned subsidiary of the Company.

and collection efforts are performed by

a wholly-owned subsidiary of the

allocate certain corporate expenses to the Credit segment.

THE CATO CORPORATION

1 unchanged sentence

— (Continued)

The following schedule summarizes certain segment

information (in thousands):

Interest and other income

Income (loss) before taxes

Capital expenditures

Interest and other income

Income before taxes

Capital expenditures

assesses information for

decision-making purposes, including

the allocation

of resources.

also provides corporate services, including finance, information technology, and corporate administration,

to its segments which

are fully allocated to

the retail segment.

Interest and other income

Income before taxes

Capital expenditures

Total assets as of February 3,

Total assets as of January 28,

from assets held

allocated to either segment.

expenses, and

operations before

budget and forecasting process,

monthly analyses of budget-to-actual

and prior year

administrative

therefore, total segment assets are not presented in the tables below.

The accounting

5 unchanged sentences

before income taxes.

The Company does not

allocate certain corporate expenses to the

Credit segment.

Selling, general and administrative expenses (in thousands):

February 3, 2024

January 28, 2023

January 29, 2022

Other expenses

Total expenses

THE CATO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

— (Continued)

The following schedule summarizes certain segment

information (in thousands):

Total Revenues

Cost of goods sold (a)

Selling, general, and administrative (b)

Corporate overhead

Interest and other income

Income (loss) before income taxes

Corporate interest and other income

Net income (loss) before income taxes

Capital expenditures

Total Revenues

Cost of goods sold (a)

Selling, general, and administrative (b)

Corporate overhead

Interest and other income

Income (loss) before income taxes

Corporate interest and other income

Net income (loss) before income taxes

Capital expenditures

Total Revenues

Cost of goods sold (a)

Selling, general, and administrative (b)

Corporate overhead

Interest and other income

Income (loss) before income taxes

Corporate interest and other income

Net income (loss) before income taxes

Capital expenditures

(a) Refer to Note 1 for additional information on the components of Cost of goods sold.

(b) Selling, general, and administrative expense include corporate and store payroll, related payroll taxes

and benefits, insurance, supplies, advertising, bank and credit card processing fees.

Stock Based Compensation:

directors and key employees.

equity-based awards,

restricted stock

officers, directors and key employees.

THE CATO CORPORATION

6 unchanged sentences

Options and/or restricted stock available for grant:

January 28, 2023

February 3, 2024

In accordance with

fair value of

restricted stock awards

is estimated on

to compensation

February 1, 2025

In accordance with ASC 718, the fair value of restricted stock awards is estimated on the date of grant

straight-line basis

7 unchanged sentences

, respectively.

increase in total compensation expense for fiscal 2023 is

due to a true-up in fiscal 2022 that

resulted from

classified as a

component of Selling, general

and administrative expenses in

the Consolidated Statements

of Income (Loss) and Comprehensive Income (Loss).

administrative

Consolidated Statements of Income (Loss) and Comprehensive Income

The following summary shows

3 unchanged sentences

the years ended February 1, 2025,

January 28, 2023 and January 29, 2022:

February 3, 2024 and January 28, 2023:

Weighted Average

4 unchanged sentences

Forfeited or expired

Restricted stock awards at January 28, 2023

Restricted stock awards at February 3, 2024

Forfeited or expired

10 unchanged sentences

approximately

THE CATO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

— (Continued)

2024, 2023 and 2022,

5 unchanged sentences

Commitments and Contingencies:

THE CATO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

— (Continued)

litigation instituted

12 unchanged sentences

information currently

available, management

pending litigation

16 unchanged sentences

Available-for-Sale

Beginning Balance at January 28, 2023

Beginning Balance at February 3, 2024

Other comprehensive income (loss) before

8 unchanged sentences

comprehensive income.

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 $

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

THE CATO CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

— (Continued)

The following table sets forth information regarding the reclassification

out of Accumulated other

comprehensive income (in thousands) for the year ended February 3, 2024:

Changes in Accumulated Other

Comprehensive Income (a)

Unrealized Gains

and (Losses) on

Available-for-Sale

Beginning Balance at January 28, 2023

Other comprehensive income (loss) before

reclassification

Amounts reclassified from accumulated

other comprehensive income (b)

Net current-period other comprehensive income (loss)

Ending Balance at February 3, 2024

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

Amounts in parentheses indicate a debit/reduction to

accumulated other

comprehensive income.

(b) Includes $

2 unchanged sentences

tax impact of this reclassification was $

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

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

THE CATO CORPORATION

28 unchanged sentences

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-K

Item 8. Financial Statements and Supplementary Data