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 21, 2014, the Registrant issued a press release regarding its second quarter 2014 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 21, 2014, furnished pursuant to Item 2.02. |
SEARS HOLDINGS CORPORATION | |
By: | /s/ ROBERT A. RIECKER |
Robert A. Riecker | |
Vice President, Controller and Chief Accounting Officer |
99.1 | Press release dated August 21, 2014, furnished pursuant to Item 2.02. |
• | Sears Full-line stores experienced comparable store sales growth of 0.1% for the quarter as compared to a decline of 0.8% in the second quarter of last year, despite the continuing impact of consumer electronics industry trends. Excluding the impact of consumer electronics, comparable store sales growth would have been 1.6%; |
• | Kmart comparable stores sales were down 1.7% for the quarter as compared to a 2.1% decline last year, also despite the continuing impact of consumer electronics industry trends, as well as the impact of our grocery & household goods business. Excluding the impact of both, comparable store sales would have declined 1.0%; |
• | Sales to Shop Your Way members in Sears Full-line and Kmart stores increased to 73% of eligible sales, up from 71% during the second quarter last year; |
• | Online and multi-channel sales grew 18% over the prior year second quarter and 22% over the prior year first half; |
• | We continue to evaluate our Sears Auto Center business, as well as our 51% interest in Sears Canada, including a potential sale of our interest or Sears Canada as a whole; |
• | Continued with our inventory productivity efforts, with consolidated net inventory down approximately $620 million and domestic net inventory down approximately $510 million year-over-year, when excluding the impact of Lands' End inventory; |
• | Reduced adjusted net consolidated debt year-over-year by $301 million, when including our unfunded pension obligation; net adjusted domestic debt on the same basis declined by $220 million; |
• | Reduced net domestic short-term debt by $565 million, or 41%, from the prior year second quarter to $808 million; |
• | Increased cash on hand on a consolidated basis to $839 million and domestically cash increased by $213 million to $596 million from the prior year second quarter; and |
• | Total amount available to borrow under our revolving credit facilities was $486 million on a consolidated basis and domestic availability was $240 million, with net consolidated inventory of $3.9 billion and net domestic inventory of $3.5 billion, providing availability and financial resources of $5.2 billion on a consolidated basis and $4.4 billion on a domestic basis. |
Summary of Second Quarter Year-Over-Year Revenue Change | ||||||
millions | $ | % | ||||
Closed Stores | $ | (256 | ) | 29.8 | % | |
Lands' End | (330 | ) | 38.5 | % | ||
Comp Sales | (47 | ) | 5.5 | % | ||
Other | (85 | ) | 9.9 | % | ||
Sears Canada | (140 | ) | 16.3 | % | ||
Total | $ | (858 | ) | 100.0 | % |
Summary of Second Quarter Year-Over-Year Margin Change | ||||||
millions | $ | % | ||||
Closed Stores | $ | (54 | ) | 12.1 | % | |
Lands' End | (126 | ) | 28.4 | % | ||
Comp Sales | (1 | ) | 0.2 | % | ||
Rate | (166 | ) | 37.4 | % | ||
SYW Points | (43 | ) | 9.7 | % | ||
Sears Canada | (54 | ) | 12.2 | % | ||
Total | $ | (444 | ) | 100.0 | % |
13 Weeks Ended | 26 Weeks Ended | ||||||||||||||
millions | August 2, 2014 | August 3, 2013 | August 2, 2014 | August 3, 2013 | |||||||||||
Net loss attributable to SHC per statement of operations | $ | (573 | ) | $ | (194 | ) | $ | (975 | ) | $ | (473 | ) | |||
Income (loss) attributable to noncontrolling interests | (8 | ) | 67 | (48 | ) | 54 | |||||||||
Income tax expense | 32 | 30 | 29 | 21 | |||||||||||
Interest expense | 72 | 59 | 143 | 120 | |||||||||||
Interest and investment income | (32 | ) | (14 | ) | (36 | ) | (21 | ) | |||||||
Other (income) loss | (5 | ) | 1 | (2 | ) | 1 | |||||||||
Operating loss | (514 | ) | (51 | ) | (889 | ) | (298 | ) | |||||||
Depreciation and amortization | 152 | 187 | 307 | 378 | |||||||||||
Gain on sales of assets | (34 | ) | (241 | ) | (80 | ) | (255 | ) | |||||||
Before excluded items | (396 | ) | (105 | ) | (662 | ) | (175 | ) | |||||||
Closed store reserve and severance | 40 | 10 | 68 | 23 | |||||||||||
Domestic pension expense | 23 | 40 | 45 | 81 | |||||||||||
Impairment charges | 20 | — | 25 | 8 | |||||||||||
Adjusted EBITDA | (313 | ) | (55 | ) | (524 | ) | (63 | ) | |||||||
Lands' End separation | — | (23 | ) | (10 | ) | (41 | ) | ||||||||
Adjusted EBITDA as defined(1) | $ | (313 | ) | $ | (78 | ) | $ | (534 | ) | $ | (104 | ) | |||
% to revenues(2) | (3.9 | )% | (0.9 | )% | (3.4 | )% | (0.6 | )% |
13 Weeks Ended | |||||||||||||
Adjusted EBITDA | % To Revenues(2) | ||||||||||||
millions | August 2, 2014 | August 3, 2013 | August 2, 2014 | August 3, 2013 | |||||||||
Kmart | $ | (120 | ) | $ | (30 | ) | (4.1 | )% | (0.9 | )% | |||
Sears Domestic | (178 | ) | (43 | ) | (4.1 | )% | (1.0 | )% | |||||
Sears Canada | (15 | ) | (5 | ) | (1.9 | )% | (0.5 | )% | |||||
Total Adjusted EBITDA as defined(1) | $ | (313 | ) | $ | (78 | ) | (3.9 | )% | (0.9 | )% | |||
26 Weeks Ended | |||||||||||||
Adjusted EBITDA | % To Revenues(2) | ||||||||||||
millions | August 2, 2014 | August 3, 2013 | August 2, 2014 | August 3, 2013 | |||||||||
Kmart | $ | (207 | ) | $ | (30 | ) | (3.6 | )% | (0.5 | )% | |||
Sears Domestic | (269 | ) | (58 | ) | (3.2 | )% | (0.7 | )% | |||||
Sears Canada | (58 | ) | (16 | ) | (3.9 | )% | (0.9 | )% | |||||
Total Adjusted EBITDA as defined(1) | $ | (534 | ) | $ | (104 | ) | (3.4 | )% | (0.6 | )% |
• | 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 the Lands' End business 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 Lands' End 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. |
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 2, 2014 | August 3, 2013 | August 2, 2014 | August 3, 2013 | ||||||||||||
REVENUES | ||||||||||||||||
Merchandise sales and services | $ | 8,013 | $ | 8,871 | $ | 15,892 | $ | 17,323 | ||||||||
COSTS AND EXPENSES | ||||||||||||||||
Cost of sales, buying and occupancy | 6,271 | 6,685 | 12,322 | 12,981 | ||||||||||||
Gross margin dollars | 1,742 | 2,186 | 3,570 | 4,342 | ||||||||||||
Gross margin rate | 21.7 | % | 24.6 | % | 22.5 | % | 25.1 | % | ||||||||
Selling and administrative | 2,118 | 2,291 | 4,207 | 4,509 | ||||||||||||
Selling and administrative expense as a percentage of total revenues | 26.4 | % | 25.8 | % | 26.5 | % | 26.0 | % | ||||||||
Depreciation and amortization | 152 | 187 | 307 | 378 | ||||||||||||
Impairment charges | 20 | — | 25 | 8 | ||||||||||||
Gain on sales of assets | (34 | ) | (241 | ) | (80 | ) | (255 | ) | ||||||||
Total costs and expenses | 8,527 | 8,922 | 16,781 | 17,621 | ||||||||||||
Operating loss | (514 | ) | (51 | ) | (889 | ) | (298 | ) | ||||||||
Interest expense | (72 | ) | (59 | ) | (143 | ) | (120 | ) | ||||||||
Interest and investment income | 32 | 14 | 36 | 21 | ||||||||||||
Other income (loss) | 5 | (1 | ) | 2 | (1 | ) | ||||||||||
Loss before income taxes | (549 | ) | (97 | ) | (994 | ) | (398 | ) | ||||||||
Income tax expense | (32 | ) | (30 | ) | (29 | ) | (21 | ) | ||||||||
Net loss | (581 | ) | (127 | ) | (1,023 | ) | (419 | ) | ||||||||
(Income) loss attributable to noncontrolling interests | 8 | (67 | ) | 48 | (54 | ) | ||||||||||
NET LOSS ATTRIBUTABLE TO HOLDINGS' SHAREHOLDERS | $ | (573 | ) | $ | (194 | ) | $ | (975 | ) | $ | (473 | ) | ||||
NET LOSS PER COMMON SHARE ATTRIBUTABLE TO HOLDINGS' SHAREHOLDERS | ||||||||||||||||
Diluted loss per share | $ | (5.39 | ) | $ | (1.83 | ) | $ | (9.17 | ) | $ | (4.46 | ) | ||||
Diluted weighted average common shares outstanding | 106.3 | 106.1 | 106.3 | 106.1 |
Sears Holdings Corporation | ||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||
(Unaudited) | ||||||||||||
Amounts are Preliminary and Subject to Change | ||||||||||||
millions | August 2, 2014 | August 3, 2013 | February 1, 2014 | |||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 829 | $ | 671 | $ | 1,028 | ||||||
Restricted cash | 10 | 10 | 10 | |||||||||
Accounts receivable | 516 | 641 | 553 | |||||||||
Merchandise inventories | 6,383 | 7,708 | 7,034 | |||||||||
Prepaid expenses and other current assets | 419 | 470 | 334 | |||||||||
Total current assets | 8,157 | 9,500 | 8,959 | |||||||||
Property and equipment, net | 5,091 | 5,786 | 5,394 | |||||||||
Goodwill | 269 | 379 | 379 | |||||||||
Trade names and other intangible assets | 2,302 | 2,864 | 2,850 | |||||||||
Other assets | 619 | 749 | 679 | |||||||||
TOTAL ASSETS | $ | 16,438 | $ | 19,278 | $ | 18,261 | ||||||
LIABILITIES | ||||||||||||
Current liabilities | ||||||||||||
Short-term borrowings | $ | 1,404 | $ | 1,756 | $ | 1,332 | ||||||
Current portion of long-term debt and capitalized lease obligations | 85 | 75 | 83 | |||||||||
Merchandise payables | 2,506 | 2,903 | 2,496 | |||||||||
Other current liabilities | 2,374 | 2,435 | 2,527 | |||||||||
Unearned revenues | 889 | 925 | 900 | |||||||||
Other taxes | 436 | 484 | 460 | |||||||||
Short-term deferred tax liabilities | 484 | 382 | 387 | |||||||||
Total current liabilities | 8,178 | 8,960 | 8,185 | |||||||||
Long-term debt and capitalized lease obligations | 2,815 | 1,911 | 2,834 | |||||||||
Pension and postretirement benefits | 1,721 | 2,539 | 1,942 | |||||||||
Other long-term liabilities | 2,007 | 2,081 | 2,008 | |||||||||
Long-term deferred tax liabilities | 798 | 963 | 1,109 | |||||||||
Total Liabilities | 15,519 | 16,454 | 16,078 | |||||||||
EQUITY | ||||||||||||
Total Equity | 919 | 2,824 | 2,183 | |||||||||
TOTAL LIABILITIES AND EQUITY | $ | 16,438 | $ | 19,278 | $ | 18,261 | ||||||
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 2, 2014 | |||||||||||||||
millions, except store data | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||
Merchandise sales and services | $ | 2,923 | $ | 4,310 | $ | 780 | $ | 8,013 | |||||||
Cost of sales, buying and occupancy | 2,341 | 3,334 | 596 | 6,271 | |||||||||||
Gross margin dollars | 582 | 976 | 184 | 1,742 | |||||||||||
Gross margin rate | 19.9 | % | 22.6 | % | 23.6 | % | 21.7 | % | |||||||
Selling and administrative | 729 | 1,184 | 205 | 2,118 | |||||||||||
Selling and administrative expense as a percentage of total revenues | 24.9 | % | 27.5 | % | 26.3 | % | 26.4 | % | |||||||
Depreciation and amortization | 24 | 110 | 18 | 152 | |||||||||||
Impairment charges | 2 | 3 | 15 | 20 | |||||||||||
Gain on sales of assets | (31 | ) | (3 | ) | — | (34 | ) | ||||||||
Total costs and expenses | 3,065 | 4,628 | 834 | 8,527 | |||||||||||
Operating loss | $ | (142 | ) | $ | (318 | ) | $ | (54 | ) | $ | (514 | ) | |||
Number of: | |||||||||||||||
Kmart Stores | 1,077 | — | — | 1,077 | |||||||||||
Full-Line Stores | — | 757 | 113 | 870 | |||||||||||
Specialty Stores | — | 36 | 319 | 355 | |||||||||||
Total Stores | 1,077 | 793 | 432 | 2,302 | |||||||||||
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 |
Sears Holdings Corporation | |||||||||||||||
Segment Results | |||||||||||||||
(Unaudited) | |||||||||||||||
Amounts are Preliminary and Subject to Change | |||||||||||||||
26 Weeks Ended August 2, 2014 | |||||||||||||||
millions, except store data | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||
Merchandise sales and services | $ | 5,820 | $ | 8,595 | $ | 1,477 | $ | 15,892 | |||||||
Cost of sales, buying and occupancy | 4,643 | 6,550 | 1,129 | 12,322 | |||||||||||
Gross margin dollars | 1,177 | 2,045 | 348 | 3,570 | |||||||||||
Gross margin rate | 20.2 | % | 23.8 | % | 23.6 | % | 22.5 | % | |||||||
Selling and administrative | 1,420 | 2,356 | 431 | 4,207 | |||||||||||
Selling and administrative expense as a percentage of total revenues | 24.4 | % | 27.4 | % | 29.2 | % | 26.5 | % | |||||||
Depreciation and amortization | 47 | 224 | 36 | 307 | |||||||||||
Impairment charges | 2 | 8 | 15 | 25 | |||||||||||
(Gain) loss on sales of assets | (52 | ) | (29 | ) | 1 | (80 | ) | ||||||||
Total costs and expenses | 6,060 | 9,109 | 1,612 | 16,781 | |||||||||||
Operating loss | $ | (240 | ) | $ | (514 | ) | $ | (135 | ) | $ | (889 | ) | |||
Number of: | |||||||||||||||
Kmart Stores | 1,077 | — | — | 1,077 | |||||||||||
Full-Line Stores | — | 757 | 113 | 870 | |||||||||||
Specialty Stores | — | 36 | 319 | 355 | |||||||||||
Total Stores | 1,077 | 793 | 432 | 2,302 | |||||||||||
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 |
Sears Holdings Corporation | |||||||||||||||||||||||||
Adjusted EBITDA | |||||||||||||||||||||||||
Amounts are Preliminary and Subject to Change | |||||||||||||||||||||||||
13 Weeks Ended | |||||||||||||||||||||||||
August 2, 2014 | August 3, 2013 | ||||||||||||||||||||||||
millions | Kmart | Sears Domestic | Sears Canada | Sears Holdings | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||||||||
Operating income (loss) per statement of operations | $ | (142 | ) | $ | (318 | ) | $ | (54 | ) | $ | (514 | ) | $ | (56 | ) | $ | (146 | ) | $ | 151 | $ | (51 | ) | ||
Depreciation and amortization | 24 | 110 | 18 | 152 | 33 | 129 | 25 | 187 | |||||||||||||||||
Gain on sales of assets | (31 | ) | (3 | ) | — | (34 | ) | (15 | ) | (45 | ) | (181 | ) | (241 | ) | ||||||||||
Before excluded items | (149 | ) | (211 | ) | (36 | ) | (396 | ) | (38 | ) | (62 | ) | (5 | ) | (105 | ) | |||||||||
Closed store reserve and severance | 27 | 7 | 6 | 40 | 8 | 2 | — | 10 | |||||||||||||||||
Domestic pension expense | — | 23 | — | 23 | — | 40 | — | 40 | |||||||||||||||||
Impairment charges | 2 | 3 | 15 | 20 | — | — | — | — | |||||||||||||||||
Adjusted EBITDA | (120 | ) | (178 | ) | (15 | ) | (313 | ) | (30 | ) | (20 | ) | (5 | ) | (55 | ) | |||||||||
Lands' End separation | — | — | — | — | — | (23 | ) | — | (23 | ) | |||||||||||||||
Adjusted EBITDA as defined(1) | $ | (120 | ) | $ | (178 | ) | $ | (15 | ) | $ | (313 | ) | $ | (30 | ) | $ | (43 | ) | $ | (5 | ) | $ | (78 | ) | |
% to revenues(2) | (4.1 | )% | (4.1 | )% | (1.9 | )% | (3.9 | )% | (0.9 | )% | (1.0 | )% | (0.5 | )% | (0.9 | )% | |||||||||
26 Weeks Ended | |||||||||||||||||||||||||
August 2, 2014 | August 3, 2013 | ||||||||||||||||||||||||
millions | Kmart | Sears Domestic | Sears Canada | Sears Holdings | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||||||||
Operating income (loss) per statement of operations | $ | (240 | ) | $ | (514 | ) | $ | (135 | ) | $ | (889 | ) | $ | (84 | ) | $ | (327 | ) | $ | 113 | $ | (298 | ) | ||
Depreciation and amortization | 47 | 224 | 36 | 307 | 66 | 262 | 50 | 378 | |||||||||||||||||
(Gain) loss on sales of assets | (52 | ) | (29 | ) | 1 | (80 | ) | (28 | ) | (46 | ) | (181 | ) | (255 | ) | ||||||||||
Before excluded items | (245 | ) | (319 | ) | (98 | ) | (662 | ) | (46 | ) | (111 | ) | (18 | ) | (175 | ) | |||||||||
Closed store reserve and severance | 36 | 7 | 25 | 68 | 16 | 5 | 2 | 23 | |||||||||||||||||
Domestic pension expense | — | 45 | — | 45 | — | 81 | — | 81 | |||||||||||||||||
Impairment charges | 2 | 8 | 15 | 25 | — | 8 | — | 8 | |||||||||||||||||
Adjusted EBITDA | (207 | ) | (259 | ) | (58 | ) | (524 | ) | (30 | ) | (17 | ) | (16 | ) | (63 | ) | |||||||||
Lands' End separation | — | (10 | ) | — | (10 | ) | — | (41 | ) | — | (41 | ) | |||||||||||||
Adjusted EBITDA as defined(1) | $ | (207 | ) | $ | (269 | ) | $ | (58 | ) | $ | (534 | ) | $ | (30 | ) | $ | (58 | ) | $ | (16 | ) | $ | (104 | ) | |
% to revenues(2) | (3.6 | )% | (3.2 | )% | (3.9 | )% | (3.4 | )% | (0.5 | )% | (0.7 | )% | (0.9 | )% | (0.6 | )% |
Sears Holdings Corporation | ||||||||
Adjusted Earnings per Share | ||||||||
Amounts are Preliminary and Subject to Change |
13 Weeks Ended August 2, 2014 | |||||||||||||||||||||
Adjustments | |||||||||||||||||||||
millions, except per share data | GAAP | Domestic Pension Expense | Closed Store Reserve, Store Impairments and Severance | Gain on Sales of Assets | Gain on Sale of Canadian Joint Venture | Tax Matters | As Adjusted | ||||||||||||||
Gross margin impact | $ | 1,742 | $ | — | $ | 11 | $ | — | $ | — | $ | — | $ | 1,753 | |||||||
Selling and administrative impact | 2,118 | (23 | ) | (29 | ) | — | — | — | 2,066 | ||||||||||||
Depreciation and amortization impact | 152 | — | (1 | ) | — | — | — | 151 | |||||||||||||
Impairment charges impact | 20 | — | (20 | ) | — | — | — | — | |||||||||||||
Gain on sales of assets impact | (34 | ) | — | — | 10 | — | — | (24 | ) | ||||||||||||
Operating loss impact | (514 | ) | 23 | 61 | (10 | ) | — | — | (440 | ) | |||||||||||
Interest and investment income impact | 32 | — | — | — | (23 | ) | — | 9 | |||||||||||||
Income tax expense impact | (32 | ) | (9 | ) | (22 | ) | 4 | 6 | 236 | 183 | |||||||||||
Loss attributable to noncontrolling interest impact | 8 | — | (7 | ) | — | 8 | 1 | 10 | |||||||||||||
After tax and noncontrolling interest impact | (573 | ) | 14 | 32 | (6 | ) | (9 | ) | 237 | (305 | ) | ||||||||||
Diluted loss per share impact | $ | (5.39 | ) | $ | 0.13 | $ | 0.30 | $ | (0.06 | ) | $ | (0.08 | ) | $ | 2.23 | $ | (2.87 | ) |
13 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 - Reported | Lands' End Separation | As Adjusted(1) | ||||||||||||||||
Gross margin impact | $ | 2,186 | $ | — | $ | 7 | $ | — | $ | — | $ | 2,193 | $ | (126 | ) | $ | 2,067 | |||||||
Selling and administrative impact | 2,291 | (40 | ) | (3 | ) | — | — | 2,248 | (103 | ) | 2,145 | |||||||||||||
Depreciation and amortization impact | 187 | — | (1 | ) | — | — | 186 | (5 | ) | 181 | ||||||||||||||
Gain on sales of assets impact | (241 | ) | — | — | 235 | — | (6 | ) | — | (6 | ) | |||||||||||||
Operating loss impact | (51 | ) | 40 | 11 | (235 | ) | — | (235 | ) | (18 | ) | (253 | ) | |||||||||||
Income tax expense impact | (30 | ) | (15 | ) | (4 | ) | 89 | 65 | 105 | 7 | 112 | |||||||||||||
Income attributable to noncontrolling interest impact | (67 | ) | — | — | 88 | — | 21 | — | 21 | |||||||||||||||
After tax and noncontrolling interest impact | (194 | ) | 25 | 7 | (58 | ) | 65 | (155 | ) | (11 | ) | (166 | ) | |||||||||||
Diluted loss per share impact | $ | (1.83 | ) | $ | 0.24 | $ | 0.07 | $ | (0.55 | ) | $ | 0.61 | $ | (1.46 | ) | $ | (0.10 | ) | $ | (1.56 | ) |
Sears Holdings Corporation | ||||||||
Adjusted Earnings per Share | ||||||||
Amounts are Preliminary and Subject to Change |
26 Weeks Ended August 2, 2014 | ||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||
millions, except per share data | GAAP | Domestic Pension Expense | Closed Store Reserve, Store Impairments and Severance | Gain on Sales of Assets | Gain on Sale of Canadian Joint Venture | Tax Matters | Lands' End Separation | As Adjusted(1) | ||||||||||||||||
Gross margin impact | $ | 3,570 | $ | — | $ | 18 | $ | — | $ | — | $ | — | $ | (87 | ) | $ | 3,501 | |||||||
Selling and administrative impact | 4,207 | (45 | ) | (50 | ) | — | — | — | (77 | ) | 4,035 | |||||||||||||
Depreciation and amortization impact | 307 | — | (1 | ) | — | — | — | (3 | ) | 303 | ||||||||||||||
Impairment charges impact | 25 | — | (25 | ) | — | — | — | — | — | |||||||||||||||
Gain on sales of assets impact | (80 | ) | — | — | 23 | — | — | — | (57 | ) | ||||||||||||||
Operating loss impact | (889 | ) | 45 | 94 | (23 | ) | — | — | (7 | ) | (780 | ) | ||||||||||||
Interest and investment income impact | 36 | — | — | — | (23 | ) | — | — | 13 | |||||||||||||||
Income tax expense impact | (29 | ) | (17 | ) | (32 | ) | 9 | 6 | 394 | 3 | 334 | |||||||||||||
Loss attributable to noncontrolling interest impact | 48 | — | (14 | ) | — | 8 | (9 | ) | — | 33 | ||||||||||||||
After tax and noncontrolling interest impact | (975 | ) | 28 | 48 | (14 | ) | (9 | ) | 385 | (4 | ) | (541 | ) | |||||||||||
Diluted loss per share impact | $ | (9.17 | ) | $ | 0.26 | $ | 0.45 | $ | (0.13 | ) | $ | (0.08 | ) | $ | 3.62 | $ | (0.04 | ) | $ | (5.09 | ) |
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 - Reported | Lands' End Separation | As Adjusted(1) | ||||||||||||||||
Gross margin impact | $ | 4,342 | $ | — | $ | 15 | $ | — | $ | — | $ | 4,357 | $ | (258 | ) | $ | 4,099 | |||||||
Selling and administrative impact | 4,509 | (81 | ) | (8 | ) | — | — | 4,420 | (217 | ) | 4,203 | |||||||||||||
Depreciation and amortization impact | 378 | — | (2 | ) | — | — | 376 | (11 | ) | 365 | ||||||||||||||
Impairment charges impact | 8 | — | (8 | ) | — | — | — | — | — | |||||||||||||||
Gain on sales of assets impact | (255 | ) | — | — | 235 | — | (20 | ) | — | (20 | ) | |||||||||||||
Operating loss impact | (298 | ) | 81 | 33 | (235 | ) | — | (419 | ) | (30 | ) | (449 | ) | |||||||||||
Income tax expense impact | (21 | ) | (30 | ) | (13 | ) | 89 | 170 | 195 | 12 | 207 | |||||||||||||
Income attributable to noncontrolling interest impact | (54 | ) | — | (1 | ) | 88 | — | 33 | — | 33 | ||||||||||||||
After tax and noncontrolling interest impact | (473 | ) | 51 | 19 | (58 | ) | 170 | (291 | ) | (18 | ) | (309 | ) | |||||||||||
Diluted loss per share impact | $ | (4.46 | ) | $ | 0.49 | $ | 0.18 | $ | (0.55 | ) | $ | 1.60 | $ | (2.74 | ) | $ | (0.17 | ) | $ | (2.91 | ) |