Delaware | 000-51217, 001-36693 | 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 December 4, 2014, the Registrant issued a press release regarding its third 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 December 4, 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 December 4, 2014, furnished pursuant to Item 2.02. |
• | Online and multi-channel sales grew approximately 9% over the prior year third quarter and approximately 18% over the prior year first nine months as the Company continues to transform to an Integrated Retail Platform - with shopping at the store, online and on mobile; |
• | Sales to Shop Your Way® members in Sears Full-line and Kmart stores were 72% of eligible sales, consistent with the third quarter last year; |
• | Kmart comparable store sales increased 0.5% for the quarter, as compared to a 2.1% decline in the third quarter of last year. Apparel, outdoor living and toys were top performers. Excluding the impact of the consumer electronics and grocery & household goods businesses, comparable store sales would have increased 2.8%; |
• | Sears Domestic comparable store sales decreased 0.7% for the quarter, as compared to a 4.0% decline in the third quarter of last year, reflecting the impact of consumer electronics industry trends. Excluding the impact of consumer electronics, Sears Domestic comparable store sales would have increased 1.0%; |
• | The Company continues to demonstrate that it has the financial flexibility to fund its transformation and meet its obligations. As of December 3, 2014, we had approximately $1.5 billion in availability under our credit facility; and |
• | Year-to-date, we closed, or announced for closure, approximately 235 underperforming stores, the majority of which are Kmart stores. The Company, which has more than 1,830 Sears and Kmart stores, expects to migrate the shopping activity of highly engaged members who previously shopped closed stores to alternative channels. As a result, we hope to retain a portion of the sales previously associated with these stores by nurturing and maintaining our relationships with the members that shopped these locations. |
Sears Holdings Corporation | ||||||||||||||||
Consolidated Statements of Operations | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Amounts are Preliminary and Subject to Change | ||||||||||||||||
13 Weeks Ended | 39 Weeks Ended | |||||||||||||||
millions, except per share data | November 1, 2014 | November 2, 2013 | November 1, 2014 | November 2, 2013 | ||||||||||||
REVENUES | ||||||||||||||||
Merchandise sales and services | $ | 7,207 | $ | 8,272 | $ | 23,099 | $ | 25,595 | ||||||||
COSTS AND EXPENSES | ||||||||||||||||
Cost of sales, buying and occupancy | 5,606 | 6,341 | 17,928 | 19,322 | ||||||||||||
Gross margin dollars | 1,601 | 1,931 | 5,171 | 6,273 | ||||||||||||
Gross margin rate | 22.2 | % | 23.3 | % | 22.4 | % | 24.5 | % | ||||||||
Selling and administrative | 2,011 | 2,262 | 6,218 | 6,771 | ||||||||||||
Selling and administrative expense as a percentage of total revenues | 27.9 | % | 27.3 | % | 26.9 | % | 26.5 | % | ||||||||
Depreciation and amortization | 148 | 181 | 455 | 559 | ||||||||||||
Impairment charges | — | 6 | 25 | 14 | ||||||||||||
Gain on sales of assets | (68 | ) | (21 | ) | (148 | ) | (276 | ) | ||||||||
Total costs and expenses | 7,697 | 8,769 | 24,478 | 26,390 | ||||||||||||
Operating loss | (490 | ) | (497 | ) | (1,379 | ) | (795 | ) | ||||||||
Interest expense | (78 | ) | (61 | ) | (221 | ) | (181 | ) | ||||||||
Interest and investment income | 97 | 8 | 133 | 29 | ||||||||||||
Other income | 2 | 1 | 4 | — | ||||||||||||
Loss before income taxes | (469 | ) | (549 | ) | (1,463 | ) | (947 | ) | ||||||||
Income tax (expense) benefit | (159 | ) | 2 | (188 | ) | (19 | ) | |||||||||
Net loss | (628 | ) | (547 | ) | (1,651 | ) | (966 | ) | ||||||||
(Income) loss attributable to noncontrolling interests | 80 | 13 | 128 | (41 | ) | |||||||||||
NET LOSS ATTRIBUTABLE TO HOLDINGS' SHAREHOLDERS | $ | (548 | ) | $ | (534 | ) | $ | (1,523 | ) | $ | (1,007 | ) | ||||
NET LOSS PER COMMON SHARE ATTRIBUTABLE TO HOLDINGS' SHAREHOLDERS | ||||||||||||||||
Diluted loss per share | $ | (5.15 | ) | $ | (5.03 | ) | $ | (14.33 | ) | $ | (9.49 | ) | ||||
Diluted weighted average common shares outstanding | 106.4 | 106.1 | 106.3 | 106.1 |
Sears Holdings Corporation | ||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||
(Unaudited) | ||||||||||||
Amounts are Preliminary and Subject to Change | ||||||||||||
millions | November 1, 2014 | November 2, 2013 | February 1, 2014 | |||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 326 | $ | 599 | $ | 1,028 | ||||||
Restricted cash | — | 8 | 10 | |||||||||
Accounts receivable | 546 | 541 | 553 | |||||||||
Merchandise inventories | 6,464 | 8,912 | 7,034 | |||||||||
Prepaid expenses and other current assets | 255 | 468 | 334 | |||||||||
Total current assets | 7,591 | 10,528 | 8,959 | |||||||||
Property and equipment, net | 4,561 | 5,682 | 5,394 | |||||||||
Goodwill | 269 | 379 | 379 | |||||||||
Trade names and other intangible assets | 2,104 | 2,858 | 2,850 | |||||||||
Other assets | 644 | 762 | 679 | |||||||||
TOTAL ASSETS | $ | 15,169 | $ | 20,209 | $ | 18,261 | ||||||
LIABILITIES | ||||||||||||
Current liabilities | ||||||||||||
Short-term borrowings | $ | 2,096 | $ | 1,751 | $ | 1,332 | ||||||
Current portion of long-term debt and capitalized lease obligations | 75 | 82 | 83 | |||||||||
Merchandise payables | 2,431 | 3,517 | 2,496 | |||||||||
Other current liabilities | 2,100 | 2,510 | 2,527 | |||||||||
Unearned revenues | 825 | 912 | 900 | |||||||||
Other taxes | 406 | 473 | 460 | |||||||||
Short-term deferred tax liabilities | 481 | 430 | 387 | |||||||||
Total current liabilities | 8,414 | 9,675 | 8,185 | |||||||||
Long-term debt and capitalized lease obligations | 2,769 | 2,862 | 2,834 | |||||||||
Pension and postretirement benefits | 1,320 | 2,387 | 1,942 | |||||||||
Other long-term liabilities | 1,830 | 2,039 | 2,008 | |||||||||
Long-term deferred tax liabilities | 710 | 919 | 1,109 | |||||||||
Total Liabilities | 15,043 | 17,882 | 16,078 | |||||||||
EQUITY | ||||||||||||
Total Equity | 126 | 2,327 | 2,183 | |||||||||
TOTAL LIABILITIES AND EQUITY | $ | 15,169 | $ | 20,209 | $ | 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 November 1, 2014 | |||||||||||||||
millions, except store data | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||
Merchandise sales and services | $ | 2,707 | $ | 3,889 | $ | 611 | $ | 7,207 | |||||||
Cost of sales, buying and occupancy | 2,147 | 3,002 | 457 | 5,606 | |||||||||||
Gross margin dollars | 560 | 887 | 154 | 1,601 | |||||||||||
Gross margin rate | 20.7 | % | 22.8 | % | 25.2 | % | 22.2 | % | |||||||
Selling and administrative | 708 | 1,131 | 172 | 2,011 | |||||||||||
Selling and administrative expense as a percentage of total revenues | 26.2 | % | 29.1 | % | 28.2 | % | 27.9 | % | |||||||
Depreciation and amortization | 25 | 110 | 13 | 148 | |||||||||||
Gain on sales of assets | (24 | ) | (44 | ) | — | (68 | ) | ||||||||
Total costs and expenses | 2,856 | 4,199 | 642 | 7,697 | |||||||||||
Operating loss | $ | (149 | ) | $ | (310 | ) | $ | (31 | ) | $ | (490 | ) | |||
Number of: | |||||||||||||||
Kmart Stores | 1,050 | — | — | 1,050 | |||||||||||
Full-Line Stores | — | 751 | 113 | 864 | |||||||||||
Specialty Stores | — | 30 | 305 | 335 | |||||||||||
Total Stores | 1,050 | 781 | 418 | 2,249 | |||||||||||
13 Weeks Ended November 2, 2013 | |||||||||||||||
millions, except store data | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||
Merchandise sales and services | $ | 2,916 | $ | 4,419 | $ | 937 | $ | 8,272 | |||||||
Cost of sales, buying and occupancy | 2,327 | 3,326 | 688 | 6,341 | |||||||||||
Gross margin dollars | 589 | 1,093 | 249 | 1,931 | |||||||||||
Gross margin rate | 20.2 | % | 24.7 | % | 26.6 | % | 23.3 | % | |||||||
Selling and administrative | 745 | 1,244 | 273 | 2,262 | |||||||||||
Selling and administrative expense as a percentage of total revenues | 25.5 | % | 28.2 | % | 29.1 | % | 27.3 | % | |||||||
Depreciation and amortization | 31 | 128 | 22 | 181 | |||||||||||
Impairment charges | 3 | 2 | 1 | 6 | |||||||||||
Gain on sales of assets | (19 | ) | (2 | ) | — | (21 | ) | ||||||||
Total costs and expenses | 3,087 | 4,698 | 984 | 8,769 | |||||||||||
Operating loss | $ | (171 | ) | $ | (279 | ) | $ | (47 | ) | $ | (497 | ) | |||
Number of: | |||||||||||||||
Kmart Stores | 1,183 | — | — | 1,183 | |||||||||||
Full-Line Stores | — | 785 | 118 | 903 | |||||||||||
Specialty Stores | — | 50 | 338 | 388 | |||||||||||
Total Stores | 1,183 | 835 | 456 | 2,474 |
Sears Holdings Corporation | |||||||||||||||
Segment Results | |||||||||||||||
(Unaudited) | |||||||||||||||
Amounts are Preliminary and Subject to Change | |||||||||||||||
39 Weeks Ended November 1, 2014 | |||||||||||||||
millions, except store data | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||
Merchandise sales and services | $ | 8,527 | $ | 12,484 | $ | 2,088 | $ | 23,099 | |||||||
Cost of sales, buying and occupancy | 6,790 | 9,552 | 1,586 | 17,928 | |||||||||||
Gross margin dollars | 1,737 | 2,932 | 502 | 5,171 | |||||||||||
Gross margin rate | 20.4 | % | 23.5 | % | 24.0 | % | 22.4 | % | |||||||
Selling and administrative | 2,128 | 3,487 | 603 | 6,218 | |||||||||||
Selling and administrative expense as a percentage of total revenues | 25.0 | % | 27.9 | % | 28.9 | % | 26.9 | % | |||||||
Depreciation and amortization | 72 | 334 | 49 | 455 | |||||||||||
Impairment charges | 2 | 8 | 15 | 25 | |||||||||||
(Gain) loss on sales of assets | (76 | ) | (73 | ) | 1 | (148 | ) | ||||||||
Total costs and expenses | 8,916 | 13,308 | 2,254 | 24,478 | |||||||||||
Operating loss | $ | (389 | ) | $ | (824 | ) | $ | (166 | ) | $ | (1,379 | ) | |||
Number of: | |||||||||||||||
Kmart Stores | 1,050 | — | — | 1,050 | |||||||||||
Full-Line Stores | — | 751 | 113 | 864 | |||||||||||
Specialty Stores | — | 30 | 305 | 335 | |||||||||||
Total Stores | 1,050 | 781 | 418 | 2,249 | |||||||||||
39 Weeks Ended November 2, 2013 | |||||||||||||||
millions, except store data | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||
Merchandise sales and services | $ | 9,187 | $ | 13,709 | $ | 2,699 | $ | 25,595 | |||||||
Cost of sales, buying and occupancy | 7,184 | 10,163 | 1,975 | 19,322 | |||||||||||
Gross margin dollars | 2,003 | 3,546 | 724 | 6,273 | |||||||||||
Gross margin rate | 21.8 | % | 25.9 | % | 26.8 | % | 24.5 | % | |||||||
Selling and administrative | 2,205 | 3,800 | 766 | 6,771 | |||||||||||
Selling and administrative expense as a percentage of total revenues | 24.0 | % | 27.7 | % | 28.4 | % | 26.5 | % | |||||||
Depreciation and amortization | 97 | 390 | 72 | 559 | |||||||||||
Impairment charges | 3 | 10 | 1 | 14 | |||||||||||
Gain on sales of assets | (47 | ) | (48 | ) | (181 | ) | (276 | ) | |||||||
Total costs and expenses | 9,442 | 14,315 | 2,633 | 26,390 | |||||||||||
Operating income (loss) | $ | (255 | ) | $ | (606 | ) | $ | 66 | $ | (795 | ) | ||||
Number of: | |||||||||||||||
Kmart Stores | 1,183 | — | — | 1,183 | |||||||||||
Full-Line Stores | — | 785 | 118 | 903 | |||||||||||
Specialty Stores | — | 50 | 338 | 388 | |||||||||||
Total Stores | 1,183 | 835 | 456 | 2,474 |
Sears Holdings Corporation | |||||||||
Adjusted EBITDA | |||||||||
Amounts are Preliminary and Subject to Change |
13 Weeks Ended | 39 Weeks Ended | ||||||||||||||
millions | November 1, 2014 | November 2, 2013 | November 1, 2014 | November 2, 2013 | |||||||||||
Net loss attributable to Holdings per statement of operations | $ | (548 | ) | $ | (534 | ) | $ | (1,523 | ) | $ | (1,007 | ) | |||
Income (loss) attributable to noncontrolling interests | (80 | ) | (13 | ) | (128 | ) | 41 | ||||||||
Income tax expense (benefit) | 159 | (2 | ) | 188 | 19 | ||||||||||
Interest expense | 78 | 61 | 221 | 181 | |||||||||||
Interest and investment income | (97 | ) | (8 | ) | (133 | ) | (29 | ) | |||||||
Other income | (2 | ) | (1 | ) | (4 | ) | — | ||||||||
Operating loss | (490 | ) | (497 | ) | (1,379 | ) | (795 | ) | |||||||
Depreciation and amortization | 148 | 181 | 455 | 559 | |||||||||||
Gain on sales of assets | (68 | ) | (21 | ) | (148 | ) | (276 | ) | |||||||
Before excluded items | (410 | ) | (337 | ) | (1,072 | ) | (512 | ) | |||||||
Closed store reserve and severance | 70 | 4 | 138 | 27 | |||||||||||
Domestic pension expense | 22 | 41 | 67 | 122 | |||||||||||
Other expenses(1) | 9 | — | 9 | — | |||||||||||
Impairment charges | — | 6 | 25 | 14 | |||||||||||
Adjusted EBITDA | (309 | ) | (286 | ) | (833 | ) | (349 | ) | |||||||
Lands' End separation | — | (29 | ) | (10 | ) | (70 | ) | ||||||||
Adjusted EBITDA as defined(2) | $ | (309 | ) | $ | (315 | ) | $ | (843 | ) | $ | (419 | ) | |||
Sears Canada segment | 13 | 5 | 71 | 21 | |||||||||||
Domestic Adjusted EBITDA as defined(2) | $ | (296 | ) | $ | (310 | ) | $ | (772 | ) | $ | (398 | ) |
Sears Holdings Corporation | |||||||||||||||||||||||||
Adjusted EBITDA | |||||||||||||||||||||||||
Amounts are Preliminary and Subject to Change | |||||||||||||||||||||||||
13 Weeks Ended | |||||||||||||||||||||||||
November 1, 2014 | November 2, 2013 | ||||||||||||||||||||||||
millions | Kmart | Sears Domestic | Sears Canada | Sears Holdings | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||||||||
Operating loss per statement of operations | $ | (149 | ) | $ | (310 | ) | $ | (31 | ) | $ | (490 | ) | $ | (171 | ) | $ | (279 | ) | $ | (47 | ) | $ | (497 | ) | |
Depreciation and amortization | 25 | 110 | 13 | 148 | 31 | 128 | 22 | 181 | |||||||||||||||||
Gain on sales of assets | (24 | ) | (44 | ) | — | (68 | ) | (19 | ) | (2 | ) | — | (21 | ) | |||||||||||
Before excluded items | (148 | ) | (244 | ) | (18 | ) | (410 | ) | (159 | ) | (153 | ) | (25 | ) | (337 | ) | |||||||||
Closed store reserve and severance | 48 | 20 | 2 | 70 | 17 | (32 | ) | 19 | 4 | ||||||||||||||||
Domestic pension expense | — | 22 | — | 22 | — | 41 | — | 41 | |||||||||||||||||
Other expenses (1) | 3 | 3 | 3 | 9 | — | — | — | — | |||||||||||||||||
Impairment charges | — | — | — | — | 3 | 2 | 1 | 6 | |||||||||||||||||
Adjusted EBITDA | (97 | ) | (199 | ) | (13 | ) | (309 | ) | (139 | ) | (142 | ) | (5 | ) | (286 | ) | |||||||||
Lands' End separation | — | — | — | — | — | (29 | ) | — | (29 | ) | |||||||||||||||
Adjusted EBITDA as defined(2) | $ | (97 | ) | $ | (199 | ) | $ | (13 | ) | $ | (309 | ) | $ | (139 | ) | $ | (171 | ) | $ | (5 | ) | $ | (315 | ) | |
% to revenues(3) | (3.6 | )% | (5.1 | )% | (2.1 | )% | (4.3 | )% | (4.8 | )% | (4.2 | )% | (0.5 | )% | (4.0 | )% | |||||||||
39 Weeks Ended | |||||||||||||||||||||||||
November 1, 2014 | November 2, 2013 | ||||||||||||||||||||||||
millions | Kmart | Sears Domestic | Sears Canada | Sears Holdings | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||||||||
Operating income (loss) per statement of operations | $ | (389 | ) | $ | (824 | ) | $ | (166 | ) | $ | (1,379 | ) | $ | (255 | ) | $ | (606 | ) | $ | 66 | $ | (795 | ) | ||
Depreciation and amortization | 72 | 334 | 49 | 455 | 97 | 390 | 72 | 559 | |||||||||||||||||
(Gain) loss on sales of assets | (76 | ) | (73 | ) | 1 | (148 | ) | (47 | ) | (48 | ) | (181 | ) | (276 | ) | ||||||||||
Before excluded items | (393 | ) | (563 | ) | (116 | ) | (1,072 | ) | (205 | ) | (264 | ) | (43 | ) | (512 | ) | |||||||||
Closed store reserve and severance | 84 | 27 | 27 | 138 | 33 | (27 | ) | 21 | 27 | ||||||||||||||||
Domestic pension expense | — | 67 | — | 67 | — | 122 | — | 122 | |||||||||||||||||
Other expenses (1) | 3 | 3 | 3 | 9 | — | — | — | — | |||||||||||||||||
Impairment charges | 2 | 8 | 15 | 25 | 3 | 10 | 1 | 14 | |||||||||||||||||
Adjusted EBITDA | (304 | ) | (458 | ) | (71 | ) | (833 | ) | (169 | ) | (159 | ) | (21 | ) | (349 | ) | |||||||||
Lands' End separation | — | (10 | ) | — | (10 | ) | — | (70 | ) | — | (70 | ) | |||||||||||||
Adjusted EBITDA as defined(2) | $ | (304 | ) | $ | (468 | ) | $ | (71 | ) | $ | (843 | ) | $ | (169 | ) | $ | (229 | ) | $ | (21 | ) | $ | (419 | ) | |
% to revenues(3) | (3.6 | )% | (3.8 | )% | (3.4 | )% | (3.7 | )% | (1.8 | )% | (1.8 | )% | (0.8 | )% | (1.7 | )% |
Sears Holdings Corporation | ||||||||
Adjusted Earnings per Share | ||||||||
Amounts are Preliminary and Subject to Change |
13 Weeks Ended November 1, 2014 | |||||||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||||||
millions, except per share data | GAAP | Domestic Pension Expense | Domestic Closed Store Reserve and Severance | Domestic Gain on Sales of Assets | Other Expenses | Gain on Sears Canada Disposition | Domestic Tax Matters | Sears Canada Segment | As Adjusted(1) | ||||||||||||||||||
Gross margin impact | $ | 1,601 | $ | — | $ | 41 | $ | — | $ | — | $ | — | $ | — | $ | (154 | ) | $ | 1,488 | ||||||||
Selling and administrative impact | 2,011 | (22 | ) | (27 | ) | — | (6 | ) | — | — | (172 | ) | 1,784 | ||||||||||||||
Depreciation and amortization impact | 148 | — | (6 | ) | — | — | — | — | (13 | ) | 129 | ||||||||||||||||
Gain on sales of assets impact | (68 | ) | — | — | 42 | — | — | — | — | (26 | ) | ||||||||||||||||
Operating loss impact | (490 | ) | 22 | 74 | (42 | ) | 6 | — | — | 31 | (399 | ) | |||||||||||||||
Interest expense impact | (78 | ) | — | — | — | — | — | — | 1 | (77 | ) | ||||||||||||||||
Interest and investment income impact | 97 | — | — | — | — | (70 | ) | — | (12 | ) | 15 | ||||||||||||||||
Other income impact | 2 | — | — | — | — | — | — | (2 | ) | — | |||||||||||||||||
Income tax expense impact | (159 | ) | (8 | ) | (28 | ) | 16 | (2 | ) | 26 | 180 | 148 | 173 | ||||||||||||||
Loss attributable to noncontrolling interest impact | 80 | — | — | — | — | — | — | (80 | ) | — | |||||||||||||||||
After tax and noncontrolling interest impact | (548 | ) | 14 | 46 | (26 | ) | 4 | (44 | ) | 180 | 86 | (288 | ) | ||||||||||||||
Diluted loss per share impact | $ | (5.15 | ) | $ | 0.13 | $ | 0.43 | $ | (0.25 | ) | $ | 0.04 | $ | (0.41 | ) | $ | 1.69 | $ | 0.81 | $ | (2.71 | ) |
13 Weeks Ended November 2, 2013 | |||||||||||||||||||||
Adjustments | |||||||||||||||||||||
millions, except per share data | GAAP | Domestic Pension Expense | Domestic Closed Store Reserve, Store Impairments and Severance | Domestic Tax Matters | Sears Canada Segment | Lands' End Separation | As Adjusted(2) | ||||||||||||||
Gross margin impact | $ | 1,931 | $ | — | $ | 13 | $ | — | $ | (249 | ) | $ | (150 | ) | $ | 1,545 | |||||
Selling and administrative impact | 2,262 | (41 | ) | 28 | — | (273 | ) | (121 | ) | 1,855 | |||||||||||
Depreciation and amortization impact | 181 | — | (3 | ) | — | (22 | ) | (5 | ) | 151 | |||||||||||
Impairment charges impact | 6 | — | (5 | ) | — | (1 | ) | — | — | ||||||||||||
Operating loss impact | (497 | ) | 41 | (7 | ) | — | 47 | (24 | ) | (440 | ) | ||||||||||
Interest expense impact | (61 | ) | — | — | — | (4 | ) | — | (65 | ) | |||||||||||
Interest and investment income impact | 8 | — | — | — | (6 | ) | — | 2 | |||||||||||||
Income tax benefit impact | 2 | (15 | ) | 3 | 200 | (11 | ) | 9 | 188 | ||||||||||||
Loss attributable to noncontrolling interest impact | 13 | — | — | — | (13 | ) | — | — | |||||||||||||
After tax and noncontrolling interest impact | (534 | ) | 26 | (4 | ) | 200 | 13 | (15 | ) | (314 | ) | ||||||||||
Diluted loss per share impact | $ | (5.03 | ) | $ | 0.25 | $ | (0.04 | ) | $ | 1.88 | $ | 0.12 | $ | (0.14 | ) | $ | (2.96 | ) |
Sears Holdings Corporation | ||||||||
Adjusted Earnings per Share | ||||||||
Amounts are Preliminary and Subject to Change |
39 Weeks Ended November 1, 2014 | ||||||||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||||||||
millions, except per share data | GAAP | Domestic Pension Expense | Domestic Closed Store Reserve, Store Impairments and Severance | Domestic Gain on Sales of Assets | Other Expenses | Gain on Sears Canada Disposition | Domestic Tax Matters | Sears Canada Segment | Lands' End Separation | As Adjusted(1) | ||||||||||||||||||||
Gross margin impact | $ | 5,171 | $ | — | $ | 58 | $ | — | $ | — | $ | — | $ | — | $ | (502 | ) | $ | (87 | ) | $ | 4,640 | ||||||||
Selling and administrative impact | 6,218 | (67 | ) | (53 | ) | — | (6 | ) | — | — | (603 | ) | (77 | ) | 5,412 | |||||||||||||||
Depreciation and amortization impact | 455 | — | (7 | ) | — | — | — | — | (49 | ) | (3 | ) | 396 | |||||||||||||||||
Impairment charges impact | 25 | — | (10 | ) | — | — | — | — | (15 | ) | — | — | ||||||||||||||||||
Gain on sales of assets impact | (148 | ) | — | — | 65 | — | — | — | (1 | ) | — | (84 | ) | |||||||||||||||||
Operating loss impact | (1,379 | ) | 67 | 128 | (65 | ) | 6 | — | — | 166 | (7 | ) | (1,084 | ) | ||||||||||||||||
Interest expense impact | (221 | ) | — | — | — | — | — | — | 5 | — | (216 | ) | ||||||||||||||||||
Interest and investment income impact | 133 | — | — | — | — | (70 | ) | — | (38 | ) | — | 25 | ||||||||||||||||||
Other income impact | 4 | — | — | — | — | — | — | (4 | ) | — | — | |||||||||||||||||||
Income tax expense impact | (188 | ) | (25 | ) | (48 | ) | 25 | (2 | ) | 26 | 554 | 136 | 3 | 481 | ||||||||||||||||
Loss attributable to noncontrolling interest impact | 128 | — | — | — | — | — | — | (128 | ) | — | — | |||||||||||||||||||
After tax and noncontrolling interest impact | (1,523 | ) | 42 | 80 | (40 | ) | 4 | (44 | ) | 554 | 137 | (4 | ) | (794 | ) | |||||||||||||||
Diluted loss per share impact | $ | (14.33 | ) | $ | 0.40 | $ | 0.75 | $ | (0.38 | ) | $ | 0.04 | $ | (0.41 | ) | $ | 5.21 | $ | 1.29 | $ | (0.04 | ) | $ | (7.47 | ) |
39 Weeks Ended November 2, 2013 | ||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||
millions, except per share data | GAAP | Domestic Pension Expense | Domestic Closed Store Reserve, Store Impairments and Severance | Domestic Gain on Sales of Assets | Domestic Tax Matters | Sears Canada Segment | Lands' End Separation | As Adjusted(1) | ||||||||||||||||
Gross margin impact | $ | 6,273 | $ | — | $ | 28 | $ | — | $ | — | $ | (724 | ) | $ | (408 | ) | $ | 5,169 | ||||||
Selling and administrative impact | 6,771 | (122 | ) | 22 | — | — | (766 | ) | (338 | ) | 5,567 | |||||||||||||
Depreciation and amortization impact | 559 | — | (5 | ) | — | — | (72 | ) | (16 | ) | 466 | |||||||||||||
Impairment charges impact | 14 | — | (13 | ) | — | — | (1 | ) | — | — | ||||||||||||||
Gain on sales of assets impact | (276 | ) | — | — | 55 | — | 181 | — | (40 | ) | ||||||||||||||
Operating loss impact | (795 | ) | 122 | 24 | (55 | ) | — | (66 | ) | (54 | ) | (824 | ) | |||||||||||
Interest expense impact | (181 | ) | — | — | — | — | (2 | ) | — | (183 | ) | |||||||||||||
Interest and investment income impact | 29 | — | — | — | — | (17 | ) | — | 12 | |||||||||||||||
Other income impact | — | — | — | — | — | 1 | — | 1 | ||||||||||||||||
Income tax expense impact | (19 | ) | (45 | ) | (10 | ) | 21 | 406 | (1 | ) | 21 | 373 | ||||||||||||
Income attributable to noncontrolling interest impact | (41 | ) | — | — | — | — | 41 | — | — | |||||||||||||||
After tax and noncontrolling interest impact | (1,007 | ) | 77 | 14 | (34 | ) | 406 | (44 | ) | (33 | ) | (621 | ) | |||||||||||
Diluted loss per share impact | $ | (9.49 | ) | $ | 0.73 | $ | 0.13 | $ | (0.32 | ) | $ | 3.82 | $ | (0.41 | ) | $ | (0.31 | ) | $ | (5.85 | ) |