Delaware | 000-51217 | 20-1920798 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
3333 Beverly Road Hoffman Estates, Illinois | 60179 | |||
(Address of principal executive offices) | (Zip code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 2 - | Financial Information |
Item 2.02 | Results of Operations and Financial Condition. |
On August 22, 2013, the Registrant issued a press release regarding its second quarter 2013 results. The press release is attached hereto as Exhibit 99.1. |
Section 9 - | Financial Statements and Exhibits |
Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits | |
Exhibit 99.1 - Press release dated August 22, 2013, furnished pursuant to Item 2.02. |
By: | /s/ Robert A. Riecker |
Robert A. Riecker | |
Vice President, Controller and Chief Accounting Officer |
99.1 | Press release dated August 22, 2013, furnished pursuant to Item 2.02. |
• | Net loss attributable to Holdings' shareholders of $194 million, or $1.83 loss per diluted share, compared to $132 million, or $1.25 loss per diluted share, in the prior year quarter; |
• | Adjusted EBITDA of $(55) million for the second quarter of 2013 compared to $116 million in the prior year quarter; |
• | Adjusted loss per diluted share for the quarter of $1.46 and $1.06 in 2013 and 2012, respectively; |
• | Second quarter 2013 included gains on the sale of assets of $58 million, after tax and noncontrolling interest, from the sale of certain U.S. and Canadian stores and leasehold interests. These transactions generated approximately $277 million of cash proceeds; |
• | In the second quarter of 2013, Kmart comparable store sales declined 2.1%, Sears Domestic declined 0.8% and Sears Canada declined 2.5%; |
• | Our online business on sears.com and kmart.com grew 20% over the prior year second quarter; |
• | Our Shop Your WayTM membership program is continuing to gain traction with our members as members continue to engage in all aspects of our program, including points and other program benefits. Shop Your Way members generated over 65% of our revenues at Sears Domestic and Kmart during the quarter, as compared to over 55% in the prior year quarter; |
• | Gross margin rate decreased 210 basis points for the second quarter of 2013 compared to the prior year second quarter; and |
• | Domestic inventory declined $968 million from the prior year second quarter. Excluding the inventory related to Sears Hometown and Outlet Stores, Inc. (“SHO”), Domestic inventory declined approximately $564 million. |
• | EBITDA excludes the effects of financing and investing activities by eliminating the effects of interest and depreciation costs; |
• | Management considers gains/(losses) on the sale of assets to result from investing decisions rather than ongoing operations; and |
• | Other significant items, while periodically affecting our results, may vary significantly from period to period and have a disproportionate effect in a given period, which affects the comparability of results, including the results of SHO that were included in our results of operations prior to the separation. Adjustments to EBITDA include impairment charges related to fixed assets and intangible assets, closed store and severance charges, domestic pension expense and the SHO separation. We have adjusted our results for these items to make our statements more comparable and therefore more useful to investors as the items are not representative of our ongoing operations and reflect past investment decisions. |
13 Weeks Ended | 26 Weeks Ended | |||||||||||||||
millions | August 3, 2013 | July 28, 2012 | August 3, 2013 | July 28, 2012 | ||||||||||||
Net income (loss) attributable to SHC per statement of operations | $ | (194 | ) | $ | (132 | ) | $ | (473 | ) | $ | 57 | |||||
Income (loss) attributable to noncontrolling interests | 67 | (1 | ) | 54 | 4 | |||||||||||
Income tax expense (benefit) | 30 | (25 | ) | 21 | 42 | |||||||||||
Interest expense | 59 | 65 | 120 | 131 | ||||||||||||
Interest and investment income | (14 | ) | (9 | ) | (21 | ) | (21 | ) | ||||||||
Other (income) loss | 1 | (1 | ) | 1 | (1 | ) | ||||||||||
Operating income (loss) | (51 | ) | (103 | ) | (298 | ) | 212 | |||||||||
Depreciation and amortization | 187 | 212 | 378 | 414 | ||||||||||||
Gain on sales of assets | (241 | ) | (15 | ) | (255 | ) | (410 | ) | ||||||||
Before excluded items | (105 | ) | 94 | (175 | ) | 216 | ||||||||||
Closed store reserve and severance | 10 | 18 | 23 | 52 | ||||||||||||
Domestic pension expense | 40 | 41 | 81 | 82 | ||||||||||||
Impairment charges | — | — | 8 | — | ||||||||||||
Adjusted EBITDA | $ | (55 | ) | $ | 153 | $ | (63 | ) | $ | 350 | ||||||
SHO separation | — | (37 | ) | — | (74 | ) | ||||||||||
Adjusted EBITDA as defined | $ | (55 | ) | $ | 116 | $ | (63 | ) | $ | 276 | ||||||
% to revenues | (0.6 | )% | 1.3 | % | (0.4 | )% | 1.6 | % |
13 Weeks Ended | |||||||||||||
Adjusted EBITDA | % To Revenues | ||||||||||||
millions | August 3, 2013 | July 28, 2012 | August 3, 2013 | July 28, 2012 | |||||||||
Kmart | $ | (30 | ) | $ | 33 | (0.9 | )% | 1.0 | % | ||||
Sears Domestic | (20 | ) | 74 | (0.4 | )% | 1.7 | % | ||||||
Sears Canada | (5 | ) | 9 | (0.5 | )% | 0.9 | % | ||||||
Total Adjusted EBITDA | $ | (55 | ) | $ | 116 | (0.6 | )% | 1.3 | % |
26 Weeks Ended | |||||||||||||
Adjusted EBITDA | % To Revenues | ||||||||||||
millions | August 3, 2013 | July 28, 2012 | August 3, 2013 | July 28, 2012 | |||||||||
Kmart | $ | (30 | ) | $ | 134 | (0.5 | )% | 2.0 | % | ||||
Sears Domestic | (17 | ) | 145 | (0.2 | )% | 1.7 | % | ||||||
Sears Canada | (16 | ) | (3 | ) | (0.9 | )% | (0.2 | )% | |||||
Total Adjusted EBITDA | $ | (63 | ) | $ | 276 | (0.4 | )% | 1.6 | % |
Sears Holdings Corporation | ||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Amounts are Preliminary and Subject to Change | ||||||||||||||||
13 Weeks Ended | 26 Weeks Ended | |||||||||||||||
millions, except per share data | August 3, 2013 | July 28, 2012 | August 3, 2013 | July 28, 2012 | ||||||||||||
REVENUES | ||||||||||||||||
Merchandise sales and services | $ | 8,871 | $ | 9,467 | $ | 17,323 | $ | 18,737 | ||||||||
COSTS AND EXPENSES | ||||||||||||||||
Cost of sales, buying and occupancy | 6,685 | 6,936 | 12,981 | 13,639 | ||||||||||||
Gross margin dollars | 2,186 | 2,531 | 4,342 | 5,098 | ||||||||||||
Gross margin rate | 24.6 | % | 26.7 | % | 25.1 | % | 27.2 | % | ||||||||
Selling and administrative | 2,291 | 2,437 | 4,509 | 4,882 | ||||||||||||
Selling and administrative expense as a percentage of total revenues | 25.8 | % | 25.7 | % | 26.0 | % | 26.1 | % | ||||||||
Depreciation and amortization | 187 | 212 | 378 | 414 | ||||||||||||
Impairment charges | — | — | 8 | — | ||||||||||||
Gain on sales of assets | (241 | ) | (15 | ) | (255 | ) | (410 | ) | ||||||||
Total costs and expenses | 8,922 | 9,570 | 17,621 | 18,525 | ||||||||||||
Operating income (loss) | (51 | ) | (103 | ) | (298 | ) | 212 | |||||||||
Interest expense | (59 | ) | (65 | ) | (120 | ) | (131 | ) | ||||||||
Interest and investment income | 14 | 9 | 21 | 21 | ||||||||||||
Other income (loss) | (1 | ) | 1 | (1 | ) | 1 | ||||||||||
Income (loss) before income taxes | (97 | ) | (158 | ) | (398 | ) | 103 | |||||||||
Income tax (expense) benefit | (30 | ) | 25 | (21 | ) | (42 | ) | |||||||||
Net income (loss) | (127 | ) | (133 | ) | (419 | ) | 61 | |||||||||
(Income) loss attributable to noncontrolling interests | (67 | ) | 1 | (54 | ) | (4 | ) | |||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO HOLDINGS’ SHAREHOLDERS | $ | (194 | ) | $ | (132 | ) | $ | (473 | ) | $ | 57 | |||||
NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO HOLDINGS’ SHAREHOLDERS | ||||||||||||||||
Diluted earnings (loss) per share | $ | (1.83 | ) | $ | (1.25 | ) | $ | (4.46 | ) | $ | 0.54 | |||||
Diluted weighted average common shares outstanding | 106.1 | 105.9 | 106.1 | 106.1 |
Sears Holdings Corporation | ||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||
Amounts are Preliminary and Subject to Change | ||||||||||||
(Unaudited) | ||||||||||||
millions | August 3, 2013 | July 28, 2012 | February 2, 2013 | |||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 671 | $ | 730 | $ | 609 | ||||||
Restricted cash | 10 | 8 | 9 | |||||||||
Accounts receivable | 641 | 569 | 635 | |||||||||
Merchandise inventories | 7,708 | 8,653 | 7,558 | |||||||||
Prepaid expenses and other current assets | 470 | 385 | 454 | |||||||||
Total current assets | 9,500 | 10,345 | 9,265 | |||||||||
Property and equipment, net | 5,786 | 6,341 | 6,053 | |||||||||
Goodwill | 379 | 841 | 379 | |||||||||
Trade names and other intangible assets | 2,864 | 2,907 | 2,881 | |||||||||
Other assets | 749 | 749 | 762 | |||||||||
TOTAL ASSETS | $ | 19,278 | $ | 21,183 | $ | 19,340 | ||||||
LIABILITIES | ||||||||||||
Current liabilities | ||||||||||||
Short-term borrowings | $ | 1,756 | $ | 1,176 | $ | 1,094 | ||||||
Current portion of long-term debt and capitalized lease obligations | 75 | 154 | 83 | |||||||||
Merchandise payables | 2,903 | 3,088 | 2,761 | |||||||||
Other current liabilities | 2,435 | 2,742 | 2,683 | |||||||||
Unearned revenues | 925 | 962 | 931 | |||||||||
Other taxes | 484 | 535 | 480 | |||||||||
Short-term deferred tax liabilities | 382 | 515 | 382 | |||||||||
Total current liabilities | 8,960 | 9,172 | 8,414 | |||||||||
Long-term debt and capitalized lease obligations | 1,911 | 1,970 | 1,943 | |||||||||
Pension and postretirement benefits | 2,539 | 2,582 | 2,730 | |||||||||
Other long-term liabilities | 2,081 | 2,124 | 2,126 | |||||||||
Long-term deferred tax liabilities | 963 | 839 | 955 | |||||||||
Total Liabilities | 16,454 | 16,687 | 16,168 | |||||||||
EQUITY | ||||||||||||
Total Equity | 2,824 | 4,496 | 3,172 | |||||||||
TOTAL LIABILITIES AND EQUITY | $ | 19,278 | $ | 21,183 | $ | 19,340 | ||||||
Total common shares outstanding | 106.5 | 106.5 | 106.4 |
Sears Holdings Corporation | |||||||||||||||
Segment Results | |||||||||||||||
(Unaudited) | |||||||||||||||
Amounts are Preliminary and Subject to Change | |||||||||||||||
13 Weeks Ended August 3, 2013 | |||||||||||||||
millions, except store data | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||
Merchandise sales and services | $ | 3,168 | $ | 4,783 | $ | 920 | $ | 8,871 | |||||||
Cost of sales, buying and occupancy | 2,459 | 3,544 | 682 | 6,685 | |||||||||||
Gross margin dollars | 709 | 1,239 | 238 | 2,186 | |||||||||||
Gross margin rate | 22.4 | % | 25.9 | % | 25.9 | % | 24.6 | % | |||||||
Selling and administrative | 747 | 1,301 | 243 | 2,291 | |||||||||||
Selling and administrative expense as a percentage of total revenues | 23.6 | % | 27.2 | % | 26.4 | % | 25.8 | % | |||||||
Depreciation and amortization | 33 | 129 | 25 | 187 | |||||||||||
Gain on sales of assets | (15 | ) | (45 | ) | (181 | ) | (241 | ) | |||||||
Total costs and expenses | 3,224 | 4,929 | 769 | 8,922 | |||||||||||
Operating income (loss) | $ | (56 | ) | $ | (146 | ) | $ | 151 | $ | (51 | ) | ||||
Number of: | |||||||||||||||
Kmart Stores | 1,195 | — | — | 1,195 | |||||||||||
Full-Line Stores | — | 791 | 118 | 909 | |||||||||||
Specialty Stores | — | 50 | 343 | 393 | |||||||||||
Total Stores | 1,195 | 841 | 461 | 2,497 | |||||||||||
13 Weeks Ended July 28, 2012 | |||||||||||||||
millions, except store data | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||
Merchandise sales and services | $ | 3,374 | $ | 5,062 | $ | 1,031 | $ | 9,467 | |||||||
Cost of sales, buying and occupancy | 2,586 | 3,611 | 739 | 6,936 | |||||||||||
Gross margin dollars | 788 | 1,451 | 292 | 2,531 | |||||||||||
Gross margin rate | 23.4 | % | 28.7 | % | 28.3 | % | 26.7 | % | |||||||
Selling and administrative | 763 | 1,389 | 285 | 2,437 | |||||||||||
Selling and administrative expense as a percentage of total revenues | 22.6 | % | 27.4 | % | 27.6 | % | 25.7 | % | |||||||
Depreciation and amortization | 38 | 149 | 25 | 212 | |||||||||||
Gain on sales of assets | (9 | ) | (5 | ) | (1 | ) | (15 | ) | |||||||
Total costs and expenses | 3,378 | 5,144 | 1,048 | 9,570 | |||||||||||
Operating loss | $ | (4 | ) | $ | (82 | ) | $ | (17 | ) | $ | (103 | ) | |||
Number of: | |||||||||||||||
Kmart Stores | 1,261 | — | — | 1,261 | |||||||||||
Full-Line Stores | — | 814 | 122 | 936 | |||||||||||
Specialty Stores | — | 1,282 | 369 | 1,651 | |||||||||||
Total Stores | 1,261 | 2,096 | 491 | 3,848 |
Sears Holdings Corporation | |||||||||||||||
Segment Results | |||||||||||||||
(Unaudited) | |||||||||||||||
Amounts are Preliminary and Subject to Change | |||||||||||||||
26 Weeks Ended August 3, 2013 | |||||||||||||||
millions, except store data | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||
Merchandise sales and services | $ | 6,271 | $ | 9,290 | $ | 1,762 | $ | 17,323 | |||||||
Cost of sales, buying and occupancy | 4,857 | 6,837 | 1,287 | 12,981 | |||||||||||
Gross margin dollars | 1,414 | 2,453 | 475 | 4,342 | |||||||||||
Gross margin rate | 22.5 | % | 26.4 | % | 27.0 | % | 25.1 | % | |||||||
Selling and administrative | 1,460 | 2,556 | 493 | 4,509 | |||||||||||
Selling and administrative expense as a percentage of total revenues | 23.3 | % | 27.5 | % | 28.0 | % | 26.0 | % | |||||||
Depreciation and amortization | 66 | 262 | 50 | 378 | |||||||||||
Impairment charges | — | 8 | — | 8 | |||||||||||
Gain on sales of assets | (28 | ) | (46 | ) | (181 | ) | (255 | ) | |||||||
Total costs and expenses | 6,355 | 9,617 | 1,649 | 17,621 | |||||||||||
Operating income (loss) | $ | (84 | ) | $ | (327 | ) | $ | 113 | $ | (298 | ) | ||||
Number of: | |||||||||||||||
Kmart Stores | 1,195 | — | — | 1,195 | |||||||||||
Full-Line Stores | — | 791 | 118 | 909 | |||||||||||
Specialty Stores | — | 50 | 343 | 393 | |||||||||||
Total Stores | 1,195 | 841 | 461 | 2,497 | |||||||||||
26 Weeks Ended July 28, 2012 | |||||||||||||||
millions, except store data | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||
Merchandise sales and services | $ | 6,789 | $ | 10,000 | $ | 1,948 | $ | 18,737 | |||||||
Cost of sales, buying and occupancy | 5,151 | 7,098 | 1,390 | 13,639 | |||||||||||
Gross margin dollars | 1,638 | 2,902 | 558 | 5,098 | |||||||||||
Gross margin rate | 24.1 | % | 29.0 | % | 28.6 | % | 27.2 | % | |||||||
Selling and administrative | 1,515 | 2,804 | 563 | 4,882 | |||||||||||
Selling and administrative expense as a percentage of total revenues | 22.3 | % | 28.0 | % | 28.9 | % | 26.1 | % | |||||||
Depreciation and amortization | 71 | 292 | 51 | 414 | |||||||||||
Gain on sales of assets | (14 | ) | (233 | ) | (163 | ) | (410 | ) | |||||||
Total costs and expenses | 6,723 | 9,961 | 1,841 | 18,525 | |||||||||||
Operating income | $ | 66 | $ | 39 | $ | 107 | $ | 212 | |||||||
Number of: | |||||||||||||||
Kmart Stores | 1,261 | — | — | 1,261 | |||||||||||
Full-Line Stores | — | 814 | 122 | 936 | |||||||||||
Specialty Stores | — | 1,282 | 369 | 1,651 | |||||||||||
Total Stores | 1,261 | 2,096 | 491 | 3,848 |
Sears Holdings Corporation | |||||||||||||||||||||||||
Adjusted EBITDA | |||||||||||||||||||||||||
Amounts are Preliminary and Subject to Change | |||||||||||||||||||||||||
13 Weeks Ended | |||||||||||||||||||||||||
August 3, 2013 | July 28, 2012 | ||||||||||||||||||||||||
millions | Kmart | Sears Domestic | Sears Canada | Sears Holdings | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||||||||
Operating income (loss) per statement of operations | $ | (56 | ) | $ | (146 | ) | $ | 151 | $ | (51 | ) | $ | (4 | ) | $ | (82 | ) | $ | (17 | ) | $ | (103 | ) | ||
Depreciation and amortization | 33 | 129 | 25 | 187 | 38 | 149 | 25 | 212 | |||||||||||||||||
Gain on sales of assets | (15 | ) | (45 | ) | (181 | ) | (241 | ) | (9 | ) | (5 | ) | (1 | ) | (15 | ) | |||||||||
Before excluded items | (38 | ) | (62 | ) | (5 | ) | (105 | ) | 25 | 62 | 7 | 94 | |||||||||||||
Closed store reserve and severance | 8 | 2 | — | 10 | 8 | 8 | 2 | 18 | |||||||||||||||||
Domestic pension expense | — | 40 | — | 40 | — | 41 | — | 41 | |||||||||||||||||
Adjusted EBITDA | $ | (30 | ) | $ | (20 | ) | $ | (5 | ) | $ | (55 | ) | $ | 33 | $ | 111 | $ | 9 | $ | 153 | |||||
SHO separation | — | — | — | — | — | (37 | ) | — | (37 | ) | |||||||||||||||
Adjusted EBITDA as defined | $ | (30 | ) | $ | (20 | ) | $ | (5 | ) | $ | (55 | ) | $ | 33 | $ | 74 | $ | 9 | $ | 116 | |||||
% to revenues | (0.9 | )% | (0.4 | )% | (0.5 | )% | (0.6 | )% | 1.0 | % | 1.7 | % | 0.9 | % | 1.3 | % |
26 Weeks Ended | |||||||||||||||||||||||||
August 3, 2013 | July 28, 2012 | ||||||||||||||||||||||||
millions | Kmart | Sears Domestic | Sears Canada | Sears Holdings | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||||||||
Operating income (loss) per statement of operations | $ | (84 | ) | $ | (327 | ) | $ | 113 | $ | (298 | ) | $ | 66 | $ | 39 | $ | 107 | $ | 212 | ||||||
Depreciation and amortization | 66 | 262 | 50 | 378 | 71 | 292 | 51 | 414 | |||||||||||||||||
Gain on sales of assets | (28 | ) | (46 | ) | (181 | ) | (255 | ) | (14 | ) | (233 | ) | (163 | ) | (410 | ) | |||||||||
Before excluded items | (46 | ) | (111 | ) | (18 | ) | (175 | ) | 123 | 98 | (5 | ) | 216 | ||||||||||||
Closed store reserve and severance | 16 | 5 | 2 | 23 | 11 | 39 | 2 | 52 | |||||||||||||||||
Domestic pension expense | — | 81 | — | 81 | — | 82 | — | 82 | |||||||||||||||||
Impairment charges | — | 8 | — | 8 | — | — | — | — | |||||||||||||||||
Adjusted EBITDA | $ | (30 | ) | $ | (17 | ) | $ | (16 | ) | $ | (63 | ) | $ | 134 | $ | 219 | $ | (3 | ) | $ | 350 | ||||
SHO separation | — | — | — | — | — | (74 | ) | — | (74 | ) | |||||||||||||||
Adjusted EBITDA as defined | $ | (30 | ) | $ | (17 | ) | $ | (16 | ) | $ | (63 | ) | $ | 134 | $ | 145 | $ | (3 | ) | $ | 276 | ||||
% to revenues | (0.5 | )% | (0.2 | )% | (0.9 | )% | (0.4 | )% | 2.0 | % | 1.7 | % | (0.2 | )% | 1.6 | % |
Sears Holdings Corporation |
Adjusted Earnings per Share |
Amounts are Preliminary and Subject to Change |
13 Weeks Ended August 3, 2013 | |||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||
millions, except per share data | GAAP | Domestic Pension Expense | Closed Store Reserve and Severance | Gain on Sales of Assets | Tax Matters | As Adjusted | |||||||||||||||||
Gross margin impact | $ | 2,186 | $ | — | $ | 7 | $ | — | $ | — | $ | 2,193 | |||||||||||
Selling and administrative impact | 2,291 | (40 | ) | (3 | ) | — | — | 2,248 | |||||||||||||||
Depreciation and amortization impact | 187 | — | (1 | ) | — | — | 186 | ||||||||||||||||
Gain on sales of assets impact | (241 | ) | — | — | 235 | — | (6 | ) | |||||||||||||||
Operating loss impact | (51 | ) | 40 | 11 | (235 | ) | — | (235 | ) | ||||||||||||||
Income tax expense impact | (30 | ) | (15 | ) | (4 | ) | 89 | 65 | 105 | ||||||||||||||
Income attributable to noncontrolling interest impact | (67 | ) | — | — | 88 | — | 21 | ||||||||||||||||
After tax and noncontrolling interest impact | (194 | ) | 25 | 7 | (58 | ) | 65 | (155 | ) | ||||||||||||||
Diluted loss per share impact | $ | (1.83 | ) | $ | 0.24 | $ | 0.07 | $ | (0.55 | ) | $ | 0.61 | $ | (1.46 | ) |
13 Weeks Ended July 28, 2012 | |||||||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||||||
millions, except per share data | GAAP | Domestic Pension Expense | Closed Store Reserve and Severance | Mark-to-Market Gains | As Adjusted - Reported | SHO Separation | As Adjusted(1) | ||||||||||||||||||||
Gross margin impact | $ | 2,531 | $ | — | $ | — | $ | — | $ | 2,531 | $ | (160 | ) | $ | 2,371 | ||||||||||||
Selling and administrative impact | 2,437 | (41 | ) | (18 | ) | — | 2,378 | (124 | ) | 2,254 | |||||||||||||||||
Depreciation and amortization impact | 212 | — | (7 | ) | — | 205 | (2 | ) | 203 | ||||||||||||||||||
Operating loss impact | (103 | ) | 41 | 25 | — | (37 | ) | (34 | ) | (71 | ) | ||||||||||||||||
Other income impact | 1 | — | — | (1 | ) | — | (1 | ) | (1 | ) | |||||||||||||||||
Income tax benefit impact | 25 | (15 | ) | (9 | ) | — | 1 | 14 | 15 | ||||||||||||||||||
After tax and noncontrolling interest impact | (132 | ) | 26 | 16 | (1 | ) | (91 | ) | (21 | ) | (112 | ) | |||||||||||||||
Diluted loss per share impact | $ | (1.25 | ) | $ | 0.25 | $ | 0.15 | $ | (0.01 | ) | $ | (0.86 | ) | $ | (0.20 | ) | $ | (1.06 | ) |
Sears Holdings Corporation |
Adjusted Earnings per Share |
Amounts are Preliminary and Subject to Change |
26 Weeks Ended August 3, 2013 | |||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||
millions, except per share data | GAAP | Domestic Pension Expense | Closed Store Reserve, Store Impairments and Severance | Gain on Sales of Assets | Tax Matters | As Adjusted | |||||||||||||||||
Gross margin impact | $ | 4,342 | $ | — | $ | 15 | $ | — | $ | — | $ | 4,357 | |||||||||||
Selling and administrative impact | 4,509 | (81 | ) | (8 | ) | — | — | 4,420 | |||||||||||||||
Depreciation and amortization impact | 378 | — | (2 | ) | — | — | 376 | ||||||||||||||||
Impairment charges impact | 8 | — | (8 | ) | — | — | — | ||||||||||||||||
Gain on sales of assets impact | (255 | ) | — | — | 235 | — | (20 | ) | |||||||||||||||
Operating loss impact | (298 | ) | 81 | 33 | (235 | ) | — | (419 | ) | ||||||||||||||
Income tax expense impact | (21 | ) | (30 | ) | (13 | ) | 89 | 170 | 195 | ||||||||||||||
Income attributable to noncontrolling interest impact | (54 | ) | — | (1 | ) | 88 | — | 33 | |||||||||||||||
After tax and noncontrolling interest impact | (473 | ) | 51 | 19 | (58 | ) | 170 | (291 | ) | ||||||||||||||
Diluted loss per share impact | $ | (4.46 | ) | $ | 0.49 | $ | 0.18 | $ | (0.55 | ) | $ | 1.60 | $ | (2.74 | ) |
26 Weeks Ended July 28, 2012 | |||||||||||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||||||||||
millions, except per share data | GAAP | Domestic Pension Expense | Closed Store Reserve and Severance | Gain on Sales of Assets | Tax Matters | As Adjusted - Reported | SHO Separation | As Adjusted(1) | |||||||||||||||||||||||
Gross margin impact | $ | 5,098 | $ | — | $ | — | $ | — | $ | — | $ | 5,098 | $ | (319 | ) | $ | 4,779 | ||||||||||||||
Selling and administrative impact | 4,882 | (82 | ) | (52 | ) | — | — | 4,748 | (246 | ) | 4,502 | ||||||||||||||||||||
Depreciation and amortization impact | 414 | — | (7 | ) | — | — | 407 | (5 | ) | 402 | |||||||||||||||||||||
Gain on sales of assets impact | (410 | ) | — | — | 386 | — | (24 | ) | — | (24 | ) | ||||||||||||||||||||
Operating income impact | 212 | 82 | 59 | (386 | ) | — | (33 | ) | (68 | ) | (101 | ) | |||||||||||||||||||
Income tax expense impact | (42 | ) | (31 | ) | (22 | ) | 145 | (37 | ) | 13 | 27 | 40 | |||||||||||||||||||
Income attributable to noncontrolling interest impact | (4 | ) | — | — | 8 | — | 4 | — | 4 | ||||||||||||||||||||||
After tax and noncontrolling interest impact | 57 | 51 | 37 | (233 | ) | (37 | ) | (125 | ) | (42 | ) | (167 | ) | ||||||||||||||||||
Diluted earnings per share impact | $ | 0.54 | $ | 0.48 | $ | 0.35 | $ | (2.20 | ) | $ | (0.35 | ) | $ | (1.18 | ) | $ | (0.40 | ) | $ | (1.58 | ) |