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Financial modelling! Trouble with Dillard's PP&E


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Hi guys, I'm trying to model Dillard's financials and I got stuck in the Property Plant & Equipment. I wonder if someone can help me.


I've attached an Excel File so you can see what I'm talking about:


A- Gross PP&E


C - Cash from the sale of PP&E

D  -Gross PP&E (+) capex) (-) cash from the sale of PP&E

E - Difference between D (-) A


If one adds last year's Gross PP&E to this year's CAPEX, one should get this year's Gross PP&E, right?


Maybe not. If the company has been selling assets, one should also subtract the cash from those sales, right?


The thing is, when I do that math, the row "E" should show a "ZERO", but it's far from that.

Why does this happen? The only reason I can think of is that each year there are assets that become completely depreciated, thus disappearing from the books entirely.


Am I thinking correctly? Am I missing something?


Thank you





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Thanks Bizaro, but how do you know that number?


As Bizaro says you need to add the undepreciated value from the PP&E sold. This would equal the disposal value, plus the accumulated depreciation from the disposed assets, minus gains from the disposal of assets. They provide two of the values but not the accumulated depreciation of the disposed assets but you can estimate it as the difference between: a) the depreciation charge for the year and b) the annual change in accumulated depreciation.


In addition to that you also have to deduct any writedowns in PP&E. There were large "Asset impairment and store closing charges" in 2007 and 2008. Part of those charges were goodwill impairments and JV impairments; the rest should mainly be PP&E (although there are potentially some inventory writedowns as well).


Attaching a file with all those numbers. The differences are much smaller.


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