-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DtKl6HlT3/5xv2iuEkXakHzz2R/4wiAqs35lGdFR0PClMIZURFzQfNigJ/6K/i0h 2PJwBGXHTVAczVhXf0c2Fg== 0000063416-96-000032.txt : 19960912 0000063416-96-000032.hdr.sgml : 19960912 ACCESSION NUMBER: 0000063416-96-000032 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19960803 FILED AS OF DATE: 19960911 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MAY DEPARTMENT STORES CO CENTRAL INDEX KEY: 0000063416 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-DEPARTMENT STORES [5311] IRS NUMBER: 431104396 STATE OF INCORPORATION: DE FISCAL YEAR END: 0201 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-00079 FILM NUMBER: 96628326 BUSINESS ADDRESS: STREET 1: 611 OLIVE ST CITY: ST LOUIS STATE: MO ZIP: 63101 BUSINESS PHONE: 3143426300 10-Q 1 2ND QUARTER FORM 10-Q DATED 8/3/96 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For The Quarterly Period Ended August 3, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________ to _______________ Commission File Number 1-79 THE MAY DEPARTMENT STORES COMPANY (Exact name of registrant as specified in its charter) Delaware 43-1104396 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 611 Olive Street, St. Louis, Missouri 63101 (Address of principal executive offices) (Zip Code) (314) 342-6300 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. YES X NO Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. 251,869,356 shares of common stock, $0.50 par value, as of August 3, 1996. 1 PART 1 - FINANCIAL INFORMATION ITEM 1 - FINANCIAL STATEMENTS THE MAY DEPARTMENT STORES COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited) (Millions)
August 3, July 29, Feb. 3, ASSETS 1996 1995 1996 Current Assets: Cash and cash equivalents $ 268 $ 255 $ 159 Accounts receivable, net 2,142 2,024 2,403 Merchandise inventories 2,314 1,957 2,134 Other current assets 174 183 169 Net current assets of discontinued operation - 282 232 Total Current Assets 4,898 4,701 5,097 Property and Equipment, at cost 6,119 5,224 5,617 Accumulated Depreciation (2,043) (1,808) (1,873) Net Property and Equipment 4,076 3,416 3,744 Goodwill 761 590 671 Other Assets 83 90 89 Net Noncurrent Assets of Discontinued Operation - 547 521 Total Assets $ 9,818 $ 9,344 $ 10,122 LIABILITIES AND SHAREOWNERS' EQUITY Current Liabilities: Current maturities of long-term debt $ 225 $ 21 $ 132 Accounts payable 843 825 692 Accrued expenses 713 640 650 Income taxes - 3 128 Total Current Liabilities 1,781 1,489 1,602 Long-term Debt 3,430 3,046 3,333 Deferred Income Taxes 390 326 378 Other Liabilities 211 190 204 ESOP Preference Shares 354 370 366 Unearned Compensation (331) (346) (346) Shareowners' Equity 3,983 4,269 4,585 Total Liabilities and Shareowners' Equity $ 9,818 $ 9,344 $ 10,122 The accompanying notes to condensed consolidated financial statements are an integral part of this balance sheet.
2 THE MAY DEPARTMENT STORES COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (Unaudited)
(Millions, except per share) 13 Weeks Ended 26 Weeks Ended Aug. 3, July 29, Aug. 3, July 29, 1996 1995 1996 1995 Net Retail Sales $ 2,431 $ 2,241 $ 4,836 $ 4,366 Revenues $ 2,533 $ 2,325 $ 5,044 $ 4,543 Cost of sales 1,773 1,625 3,528 3,168 Selling, general and administrative expenses 511 463 1,039 933 Interest expense, net 64 57 128 115 Earnings from continuing operations before income taxes 185 180 349 327 Provision for income taxes 75 73 141 133 Net Earnings from: Continuing operations 110 107 208 194 Discontinued operation - 34 11 61 Net Earnings $ 110 $ 141 $ 219 $ 255 Primary earnings per share: Continuing operations .42 .41 .79 .74 Discontinued operation - .13 .05 .24 Primary Earnings per Share $ .42 $ .54 $ .84 $ .98 Fully diluted earnings per share: Continuing operations .41 .40 .77 .72 Discontinued operation - .13 .04 .23 Fully diluted Earnings per Share $ .41 $ .53 $ .81 $ .95 Dividends Paid per Common Share $ .29 $ .28-1/2 $ .57-1/2 $ .54-1/2 Primary Average Shares Outstanding and Equivalents 251.4 250.2 251.2 249.7 Fully Diluted Average Shares Outstanding and Equivalents 265.7 265.7 265.7 265.4 The accompanying notes to condensed consolidated financial statements are an integral part of this statement.
3 THE MAY DEPARTMENT STORES COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
(Millions) 26 Weeks Ended Aug. 3, July 29, 1996 1995 Operating Activities: Net earnings from continuing operations and depreciation/amortization $ 385 $ 347 Decrease in working capital (excluding cash, cash equivalents and short-term debt) 280 209 Other assets and liabilities, net 21 (12) Net cash used in discontinued operation - 26 686 570 Investing Activities: Net additions to property and equipment (287) (285) Other - (1) (287) (286) Financing Activities: Net issuances (repayments) of long-term debt (41) 47 Net issuances (acquisitions) of treasury stock (88) 28 Dividend payments, net of tax benefit (161) (152) (290) (77) Increase in Cash and Cash Equivalents $ 109 $ 207 Noncash financing activities for the 26 weeks ended August 3, 1996 include the distribution of $764 million of equity in the spin-off of Payless ShoeSource, Inc. and the acquisition of the former Strawbridge & Clothier stores for shares of May valued at $292 million and the assumption of $255 million of debt and certain other liabilities. Cash paid during the period: Interest $ 137 $ 127 Income Taxes 249 292 The accompanying notes to condensed consolidated financial statements are an integral part of this statement.
4 THE MAY DEPARTMENT STORES COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Interim Results. These unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of The Securities and Exchange Commission and should be read in conjunction with the Notes to Consolidated Financial Statements (pages 21-27) in the 1995 Annual Report. In the opinion of management, this information is fairly presented and all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the results for the interim periods have been included; however, certain items are included in these statements based on estimates for the entire year. Also, operating results of periods which exclude the Christmas season may not be indicative of the operating results that may be expected for the full fiscal year. Inventories. Merchandise inventories are stated on the LIFO (last- in, first-out) cost basis. The LIFO provision for the second quarter was $8 million in 1996 and 1995. The year-to-date LIFO provision was $16 million in 1996 and 1995. Discontinued Operation. In January 1996, the registrant announced its intention to spin off Payless ShoeSource, Inc. ("Payless"), its chain of self-service family shoe stores. The spin-off was completed effective May 4, 1996, as a tax-free distribution to shareowners. The registrant's financial statements presented herein reflect Payless as a discontinued operation through the end of the first quarter. As discussed in the 1995 Annual Report to Shareowners, and in accordance with generally accepted accounting principles, Payless 1996 pre-tax earnings were recorded in 1995 to the extent of spin- off costs and the Payless operating loss from January 17, 1996 through fiscal 1995 year-end. As a result, $21 million of 1996 Payless pre-tax earnings is not reported in the year-to-date net earnings from discontinued operation. Acquisition. On July 18, 1996, the registrant purchased 13 former Strawbridge & Clothier department stores in the greater Philadelphia area. At the July closing, the registrant delivered, subject to later adjustment, 4.2 million shares of May common stock and assumed approximately $255 million of debt and certain other liabilities in exchange for the Strawbridge & Clothier department store assets. The registrant has also agreed to issue additional May common stock in exchange for any cash proceeds from Strawbridge & Clothier's divestiture of its other assets, including its Clover discount division, remaining after satisfaction of all Strawbridge & Clothier liabilities and obligations. The acquisition was accounted for as a purchase. Reclassifications. Certain prior period amounts have been reclassified to conform with current year presentation. 5 Summarized Financial Information - 2nd Quarter; The May Department Stores Company, New York. At the shareowners' annual meeting on May 24, 1996, the shareowners approved the change of the state of incorporation of The May Department Stores Company from New York to Delaware. This transaction did not result in any change in the business or the consolidated assets, liabilities or net worth of the reincorporated entity. Reincorporation in Delaware allows the registrant to take advantage of certain provisions of the corporate laws of Delaware and also allows the registrant to manage its state franchise tax and other affairs in ways that will result in significant savings each year beginning in 1996. The reincorporation in Delaware was accomplished by means of a statutory share exchange (Share Exchange) where each share of common stock of The May Department Stores Company (and associated preferred stock purchase right) outstanding prior to the filing of a "Certificate of Exchange" by the Department of State of the State of New York was exchanged for one share of common stock of the reincorporated entity. As a result of the Share Exchange, The May Department Stores Company, New York became a wholly owned subsidiary of registrant. Summarized financial information for The May Department Stores Company, New York, is set forth below for 1996. Corresponding information for fiscal year 1995 is not included below as amounts reflected in the respective consolidated financial statements reflect information for The May Department Stores Company, New York. August 3, 1996 Balance Sheet Current assets $ 4,898 Noncurrent assets 4,920 Current liabilities 1,781 Noncurrent liabilities 3,700 ESOP preference shares 354 August 3, 1996 13 Weeks 26 Weeks Ended Ended Statement of Earnings Revenues 2,533 5,044 Cost of sales 1,773 3,528 Earnings from continuing operations before extraordinary item 110 208 Net earnings 110 219 6 Subsequent Event. At a meeting of its board of directors on August 16, 1996, a resolution was passed authorizing registrant's management to implement a common stock repurchase program of up to $600 million. Such purchases will be made in the open market from time to time as market conditions allow, subject to Securities and Exchange Commission rules and regulations. Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations Financial Condition A summary of key financial information reflecting the completion of the spin-off of Payless in all periods indicated is as follows: Aug. 3, July 29, Feb. 3, 1996 1995 1996 Current Ratio* 2.8 3.0 3.0 Debt-Capitalization Ratio** 43% 42% 42% Fixed Charge Coverage*** 4.1x 4.3x 4.2x * The current ratios including net current assets of the discontinued operation were 3.2 at July 29, 1995 and Feb. 3, 1996, respectively. ** The debt-to-capitalization ratios including the discontinued operation were 44% at July 29, 1995 and February 3, 1996. *** Fixed charge coverage including the discontinued operation was 3.4x at July 29, 1995 and 3.1x at February 3, 1996. Fixed charge coverage, which is presented for the trailing 52 weeks ended August 3, 1996, February 3, 1996, and July 29, 1995, is defined as earnings before gross interest expense, the expense portion of interest on the ESOP debt, rent expense and income taxes divided by gross interest expense, interest expense on the ESOP debt, total rent expense and the pretax equivalent of dividends on redeemable stock. Registrant's second quarter 1996 current ratio decreased compared with second quarter 1995 primarily due to an increase in the current maturities of long-term debt which was partially offset by an increase in merchandise inventory. Merchandise inventories increased due to new store growth including the acquisition of Wanamaker's stores in the 1995 third quarter and Strawbridge & Clothier stores late in the 1996 second quarter and the full year 1995 LIFO credit. The second quarter 1996 current ratio decreased as compared with year-end 1995 primarily due to the seasonal decrease in accounts receivable, an increase in current maturities of long-term debt and an increase in accounts payable partially offset by an increase in inventory. The resultant decrease to the current ratio for these items was partially offset by a decrease in income taxes payable. The increase in registrant's second quarter 1996 debt- capitalization ratio compared with year-end 1995 is due to 7 increased debt balances. In addition to the issuance of debt described below, the company assumed $246 million of debt (of which, $120 million was immediately retired) in the acquisition of 13 former Strawbridge & Clothier department stores. During the 1996 second quarter, registrant issued $200 million, 8.30% debentures due in 2026. The proceeds from the issuance were added to registrant's general funds to be used for capital expenditures, working capital needs, stock repurchases and other general corporate purposes, including investments and acquisitions. The registrants' fixed charge coverage ratio for the 52 weeks ended August 3, 1996 decreased slightly as compared with the 52 week periods ended July 29, 1995 and February 3, 1996 due primarily to an increase in interest expense, partially offset by an increased level of earnings. Results of Operations Net retail sales represent the sales of stores operating at the end of the latest period. They exclude finance charge revenue and the sales of stores which have been closed and not replaced. Sales percent increases are as follows: Second Quarter First Six Months Store-for- Store-for- Total Store Total Store 8.5% 2.3% 10.8% 4.4% Store-for-store sales represent sales of those stores open during both periods. The following table presents the components of costs and expenses, as a percent of revenues. Revenues include finance charge revenues and all sales from all stores operating during the period. Second Quarter First Six Months 1996 1995 1996 1995 Cost of sales 70.0% 69.9% 70.0% 69.7% Selling, general and administrative expenses 20.2 19.9 20.6 20.6 Interest expense, net 2.5 2.4 2.5 2.5 Earnings before income taxes 7.3% 7.8% 6.9% 7.2% Effective income tax rate 40.6% 40.7% 40.6% 40.7% Net Earnings 4.3% 4.6% 4.1% 4.3% Cost of sales was $1,773 million in the 1996 second quarter, up 9.1% from $1,625 million in the 1995 second quarter. For the first six months of 1996, cost of sales was $3,528 million, an 11.4% increase from $3,168 million in the 1995 period. The overall increase is primarily related to higher sales volume. As a percent 8 of revenues, cost of sales increased 0.1% from the second quarter of 1995 due principally to an increase in occupancy expenses. For the first six months, cost of sales increased 0.3% due to a slight decrease in finance charge revenue. For the second quarter and first six months of each year, the LIFO charge was $8 million and $16 million, respectively. There were no significant changes in the other components of cost of sales. Selling, general and administrative expenses were $511 million in the 1996 second quarter, compared with $463 million in the 1995 second quarter, a 10.3% increase. For the first six months of 1996, selling, general and administrative expenses were $1,039 million compared with $933 million in the 1995 period, an 11.3% increase. The increase is primarily related to higher sales volume. Selling, general and administrative expenses, as a percent of revenues, increased 0.3% for the second quarter of 1996 as compared with 1995 due primarily to an increase in payroll costs. Net interest expense for the second quarter and first six months of 1996 and 1995 was as follows (millions): Second Quarter First Six Months 1996 1995 1996 1995 Interest expense $ 71 $ 66 $ 141 $ 131 Interest income (3) (4) (7) (7) Capitalized interest (4) (5) (6) (9) Net Interest Expense $ 64 $ 57 $ 128 $ 115 Interest expense increased in the 1996 second quarter and first six months due to the 1995 borrowings for the acquisition of certain assets of John Wanamaker and Woodward & Lothrop. As second quarter 1996 borrowings were made near the end of the quarter, they had a minimal impact on interest expense for the second quarter and first six months. As a percent of revenues, net interest expense increased 0.1% for the second quarter while it remained constant for the first six months. Operating results for the trailing years were as follows (millions, except per share): 52 Weeks Ended Aug. 3, July 29, 1996 1995 Net retail sales $ 10,928 $ 10,035 Revenues $ 11,344 $ 10,383 Net earnings $ 714 $ 674 Fully diluted earnings per share $ 2.66 $ 2.52 9 THE MAY DEPARTMENT STORES COMPANY AND SUBSIDIARIES PART II - OTHER INFORMATION Item 1 - Legal Proceedings There are no material pending legal proceedings, other than ordinary routine litigation incidental to the business, to which registrant or any of its subsidiaries is a party or of which any of their property is the subject. Item 2 - Changes in Securities - None. Item 3 - Defaults Upon Senior Securities - None. Item 4 - Submission of Matters to a Vote of Security Holders (a) The annual meeting of shareowners of registrant was held on May 24, 1996. (b) At the annual meeting of shareowners of registrant held on May 24, 1996, action was taken with respect to: (i) the election of seven directors of registrant; Authority For Withheld Richard L. Battram 229,747,198 1,603,907 David C. Farrell 229,726,199 1,624,906 Eugene S. Kahn 229,807,782 1,543,323 Andrall E. Pearson 229,594,939 1,756,166 Robert D. Storey 229,830,993 1,520,112 Anthony J. Torcasio 229,741,339 1,609,766 Edward E. Whitacre, Jr. 229,818,402 1,532,703 (ii) a ratification of the appointment of Arthur Andersen LLP as independent auditors (229,874,883 votes in favor, 707,553 votes against and 768,669 votes abstained); (iii) a proposal to change the registrant's state of incorporation from New York to Delaware (207,836,069 votes in favor, 6,106,850 votes against, 1,352,426 votes abstained and 16,055,760 not voted); (iv) a proposal relating to a classified Board of Directors (95,387,369 votes in favor, 116,784,906 votes against, 3,123,070 votes abstained and 16,055,760 not voted); All such proposals were set forth and described in detail in the Notice of Annual Meeting and Proxy Statement of registrant dated April 22, 1996, filed with the Commission pursuant to Rule 12b-23 (b). Item 5 - Other Information - None. 10 Item 6 - Exhibits and Reports on Form 8-K (a) Exhibits (11) - Computation of Net Earnings Per Share (12) - Computation of Ratio of Earnings to Fixed Charges (27) - Financial Data Schedule (b) Reports on Form 8-K A report dated May 24, 1996, which contained two May, 1996 press releases concerning the registrant's five year capital expansion plan and the registrant's quarterly earnings release. A report dated July 17, 1996 which contained a copy of the Underwriting Agreement, dated July 12, 1996, among registrant, Morgan Stanley & Co. Incorporated and Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated; and a specimen of 8.30% debentures due July 15, 2026. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. THE MAY DEPARTMENT STORES COMPANY (Registrant) Date: September 10, 1996 \s\ John L. Dunham John L. Dunham Executive Vice President and Chief Financial Officer 11 EX-11 2 2ND QUARTER EXHIBIT 11
Exhibit 11 THE MAY DEPARTMENT STORES COMPANY COMPUTATION OF NET EARNINGS PER SHARE 13 Weeks Ended 26 Weeks Ended Aug. 3, July 29, Aug. 3, July 29, 1996 1995 1996 1995 (millions, except per share) Net earnings from continuing operations $ 110.0 $ 106.9 $ 207.6 $ 193.9 ESOP Preferred Dividends, net of tax benefit on unallocated shares (4.6) (4.7)) (9.1) (9.5) Preferred Dividend requirements - - - - Net earnings available for common shareowners: Continuing operations 105.4 102.2 198.5 184.4 Discontinued operation - 34.2 11.4 60.7 Total net earnings available for common shareowners $ 105.4 $ 136.4 $ 209.9 $ 245.1 Average common shares outstanding 249.7 249.2 249.6 248.8 Net earnings per share: Continuing operations $ 0.42 $ 0.41 $ 0.79 $ 0.74 Discontinued operation - 0.14 0.05 0.25 Total net earnings per share $ 0.42 $ 0.55 $ 0.84 $ 0.99 Primary Computation Net earnings available from continuing operations $ 105.4 $ 102.2 $ 198.5 $ 184.4 Deferred comp. dividend adjustment .4 0.3 .7 0.7 Adjusted net earnings available: Continuing operations $ 105.8 $ 102.5 $ 199.2 $ 185.1 Discontinued operation - 34.2 11.4 60.7 Total adjusted net earnings available $ 105.8 $ 136.7 $ 210.6 $ 245.8 Average common shares outstanding 249.7 249.2 249.6 248.8 Common share equivalents (CSE's) 1.7 1.0 1.6 0.9 Average common stock and CSE's 251.4 250.2 251.2 249.7 Primary earnings per share: Continuing operations $ 0.42 $ 0.41 $ 0.79 $ 0.74 Discontinued operation - 0.13 0.05 0.24 Total Primary Earnings per share $ 0.42 $ 0.54 $ 0.84 $ 0.98
Exhibit 11 THE MAY DEPARTMENT STORES COMPANY COMPUTATION OF NET EARNINGS PER SHARE 13 Weeks Ended 26 Weeks Ended Aug. 3, July 29, Aug. 3, July 29, 1996 1995 1996 1995 (millions, except per share) Fully Diluted Computation: Adjusted net earnings available from continuing operations-PRIMARY $ 105.8 $ 102.5 $ 199.2 $ 185.1 Earnings impact of assumed conversion of ESOP Preference Shares, net of tax benefit on unallocated common shares 2.9 2.9 5.8 5.6 Adjusted net earnings available- FULLY DILUTED: Continuing operations 108.7 105.4 205.0 190.7 Discontinued operation - 34.2 11.4 60.7 Total adjusted net earnings available- FULLY DILUTED: $ 108.7 $ 139.6 $ 216.4 $ 251.4 Average common shares and CSE's 251.4 250.2 251.2 249.7 Additional CSE's attributable to treasury stock method - 0.5 - 0.7 ESOP Preference Shares 14.3 15.0 14.5 15.0 Average Common Shares Outstanding on fully diluted basis 265.7 265.7 265.7 265.4 Fully Diluted earnings per share: Continuing operations $ 0.41 $ 0.40 $ 0.77 $ 0.72 Discontinued operation - 0.13 0.04 0.23 Total Fully Diluted Earnings per share $ 0.41 $ 0.53 $ 0.81 $ 0.95
EX-12 3 2ND QUARTER EXHIBIT 12
Exhibit 12 THE MAY DEPARTMENT STORES COMPANY AND SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES FOR THE FIVE FISCAL YEARS ENDED FEBRUARY 3, 1996, AND FOR THE TWENTY-SIX WEEKS ENDED AUGUST 3, 1996, AND JULY 29, 1995 26 Weeks Ended Fiscal Year Ended Aug. 3, July 29, Feb. 3, Jan. 28, Jan. 29, Jan. 30, Feb. 1, 1996 1995 1996 1995 1994 1993 1992 Earnings Available for Fixed Charges: Pretax earnings from continuing operations $ 349 $ 327 $ 1,160 $ 1,079 $ 957 $ 579 $ 617 Fixed charges (excluding interest capitalized and pretax preferred stock dividend requirements) 161 148 317 293 305 361 409 Dividends on ESOP Preference Shares (13) (14) (28) (28) (28) (29) (29) Capitalized interest amortization 3 3 5 4 4 3 3 500 464 1,454 1,348 1,238 914 1,000 Fixed Charges: Gross interest expense (a) $ 157 $ 147 $ 316 $ 289 $ 295 $ 338 $ 384 Interest factor attributable to rent expense 11 10 20 19 20 24 29 Other (b) - - - - - 5 8 168 157 336 308 315 367 421 Ratio of Earnings to Fixed Charges 3.0 2.9 4.3 4.4 3.9 2.5 2.4 (a) Represents interest expense on long-term and short-term debt, ESOP debt and amortization of debt discount and debt issue expense. (b) Represents the company's proportionate share of interest of unconsolidated 50% owned persons and pretax preferred stock dividend requirements.
EX-27 4 2ND QUARTER EXHIBIT 27 - FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE MAY DEPARTMENT STORES COMPANY FORM 10-Q FOR THE QUARTER ENDED AUGUST 3, 1996 AND IS QUALIFIED IN ITS ENTIRETY TO SUCH FINANCIAL STATEMENTS. 1,000,000 6-MOS FEB-01-1997 AUG-03-1996 11 257 2,244 102 2,314 4,898 6,119 2,043 9,818 1,781 3,430 0 0 0 3,983 9,818 4,836 5,044 3,528 3,528 0 0 128 349 141 208 11 0 0 219 0.84 0.81
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