-----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, C1Tfr6UBQWd5jXipLYMzK2hT8Sbrkvg+ubLd4lWsW9CljLbrxjwxp1MAri5coNRF OhfaFab7YtC+s1zjjYTyRw== 0000950109-00-000486.txt : 20000218 0000950109-00-000486.hdr.sgml : 20000218 ACCESSION NUMBER: 0000950109-00-000486 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20000216 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000217 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LIMITED INC CENTRAL INDEX KEY: 0000701985 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-WOMEN'S CLOTHING STORES [5621] IRS NUMBER: 311029810 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 033-22844 FILM NUMBER: 547922 BUSINESS ADDRESS: STREET 1: THREE LIMITED PKWY STREET 2: P O BOX 16000 CITY: COLUMBUS STATE: OH ZIP: 43230 BUSINESS PHONE: 6144797000 MAIL ADDRESS: STREET 1: THREE LIMITED PARKWAY STREET 2: P.O. BOX 16000 CITY: COLUMBUS STATE: OH ZIP: 43230 8-K 1 THE LIMITED, INC. --------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------- FORM 8-K Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 February 16, 2000 Date of Report (Date of earliest event reported) THE LIMITED, INC. (Exact name of registrant as specified in its charter) -------------- Delaware 1-8344 31-1029810 (State or other (Commission (IRS Employer jurisdiction File no.) Identification No.) of incorporation) Three Limited Parkway P.O. Box 1600 Columbus, OH 43230 (614) 479-7000 (Address of principal executive offices) --------------------------------------------------------------------- Item 5. Other Events. On February 16, 2000, The Limited, Inc. (the "Company") issued a press release announcing a change in accounting relating to gift certificates, store credits and layaway sales. The Company, which has not been contacted by the Securities and Exchange Commission ("SEC"), chose to address this matter after the issuance of SEC Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements." The press release is attached hereto as Exhibit 99 and is incorporated in its entirety herein by reference. See "Index to Exhibits." Item 7. Financial Statements, Pro Forma Financial Information and Exhibits The Index to Exhibits at page E-1 is incorporated herein by reference. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. THE LIMITED, INC. By: /s/ V. Ann Hailey ------------------------ V. Ann Hailey Executive Vice President and Chief Financial Officer Dated: February 16, 2000 INDEX TO EXHIBITS Exhibit Number Description - ------ ----------- 99. Press Release issued by The Limited, Inc. on February 16, 2000 99.1 Impact of Accounting Change on Adjusted EPS 99.2 Adjusted Condensed Income Information E-1 EX-99 2 CHANGE IN ACCOUNTING EXHIBIT 99 THE LIMITED, INC. ANNOUNCES CHANGE IN ACCOUNTING FOR GIFT CERTIFICATES, STORE CREDITS AND LAYAWAY SALES Columbus, Ohio (February 16, 2000) -- The Limited, Inc. (NYSE/LSE: LTD) today announced a change in accounting for gift certificates, store credits and layaway sales. The Company, which has not been contacted by the Securities and Exchange Commission ("SEC"), chose to address this matter after the issuance of SEC Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements." This change in accounting impacts the timing of recognizing income from gift certificates, store credits and layaway sales, but does not impact the Company's reported cash flows, net sales or comparable store sales. Additionally, there is no impact to customers holding unredeemed gift certificates or store credits, nor to customers who currently have merchandise on layaway. The Company had historically recognized net receipts/(redemptions) from gift certificates and store credits as a reduction/(increase) to general, administrative and store operating expenses. Layaway sales were recognized upon receipt of the initial payment. The Company now defers the recognition of income on these transactions until the merchandise is delivered to the customer. The Company will give retroactive effect to this accounting change by restating its previously issued financial statements as of January 30, 1999 and January 31, 1998, and for each of the three fiscal years in the period ended January 30, 1999. An amended 1998 Form 10-K containing these financial statements will be filed as soon as practicable. The Company expects that the change in accounting will reduce reported earnings per share for each of the fiscal years 1997 through 1999 by $.03-$.04 per share per year. The Company's actual fourth quarter and fiscal 1999 earnings will be reported on February 22, 2000 and will reflect this accounting change. The Limited, Inc., through Express, Lerner New York, Lane Bryant, Limited Stores, Structure and Henri Bendel, presently operates 2,913 specialty stores. The Company also owns approximately 84% of Intimate Brands, Inc. (NYSE:IBI), the leading specialty retailer of intimate apparel, beauty and personal care products through the Victoria's Secret, Bath & Body Works and White Barn Candle Co. brands. SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on various important factors which may be beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to; those described in the Company's filings with the Securities and Exchange Commission. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. ### For further information, please contact: Tom Katzenmeyer Vice President Investor Relations The Limited, Inc. 614-415-7076 www.limited.com --------------- EX-99.1 3 IMPACT OF ACCOUNTING CHANGE ON ADJUSTED EPS Exhibit 99.1 THE LIMITED, INC. Impact of Accounting Change on Adjusted EPS Our change in accounting for gift certificates, store credits and layaway sales results in the following impacts on EPS: - -A quarterly EPS re-calendarization, which shifts earnings from the fourth quarter to the first and second quarters - -An EPS reduction of $.03 in 1997, $.03 in 1998 and $.04 estimated in 1999 This change had no impact on annual growth rates and minimal impact on quarterly growth rates.
- ----------------------------------------------------------------------------------------------------------------- FY Q1 Q2 Q3 Q4 ----------- ----------------------------------------------------------- 1999* As Reported $ 0.14 $ 0.25 $ 0.18 Restated $ 0.19 $ 0.27 $ 0.18 -------------------------------------------------------------------------- Change $ 0.05 $ 0.02 $ - 1999* vs 1998* As Reported 56% 92% 20% Growth in EPS Restated 46% 80% 20% 1998* As Reported $ 1.38 $ 0.09 $ 0.13 $ 0.15 $ 1.02 Restated $ 1.35 $ 0.13 $ 0.15 $ 0.15 $ 0.92 -------------------------------------------------------------------------- Change $ (0.03) $ 0.04 $ 0.02 $ - $ (0.10) 1998* vs 1997* As Reported 8% 0% 8% 15% 10% Growth in EPS Restated 8% 8% 15% 15% 8% 1997* As Reported $ 1.28 $ 0.09 $ 0.12 $ 0.13 $ 0.93 Restated $ 1.25 $ 0.12 $ 0.13 $ 0.13 $ 0.85 -------------------------------------------------------------------------- Change $ (0.03) $ 0.03 $ 0.01 $ - $ (0.08) - -----------------------------------------------------------------------------------------------------------------
* All years are adjusted for special and nonrecurring items and the ANF and TOO spin-offs. EX-99.2 4 ADJUSTED CONDENSED INCOME INFORMATION EXHIBIT 99.2 THE LIMITED, INC. ADJUSTED CONDENSED INCOME INFORMATION BASIS OF PRESENTATION The accompanying unaudited Adjusted Condensed Income Information is provided for informational purposes only and should not be construed to be indicative of the Company's results of operations had the transactions and events described below been consummated on the dates assumed and do not project the Company's results of operations for any future date or period. The unaudited Adjusted Condensed Income Information of The Limited, Inc. includes historical unaudited income statements for the following periods: . The first three quarters of the year ended January 29, 2000; . The four quarters of the year ended January 30, 1999; and . The full year ended January 31, 1998. The unaudited Adjusted Condensed Income Information gives effect to the following transactions and events: . The Company's restatement of its previously issued financial statements as a result of a change in accounting for gift certificates, store credits and layaway sales, as announced by the Company on February 16, 2000; . The spin-off of Limited Too (TOO) on August 23, 1999; . The split-off of Abercrombie & Fitch (ANF) on May 19, 1998; and . Special and nonrecurring items (SNRI). Management believes the assumptions used provide a reasonable basis on which to present the unaudited Adjusted Condensed Income Information. Although the following information is not intended to be presented in accordance with SEC guidelines for pro forma financial information, it is provided to assist in investors' understanding of the Company's results of operations. The unaudited Adjusted Condensed Income Information should be read in conjunction with the Company's historical financial statements and notes thereto contained in the Company's quarterly reports on Form 10-Q and annual report of Form 10-K and any amendments thereto. Columnar Descriptions Restatement Adjustments This column represents adjustments made to the historical unaudited quarterly and full year financial statements as a result of a change in accounting for gift certificates, store credits and layaway sales, as announced by the Company on February 16, 2000. The change was made after the issuance of the recent Securities and Exchange Commission (SEC) Staff Accounting Bulletin, No. 101, "Revenue Recognition in Financial Statements." The Company had historically recognized net receipts/(redemptions) from gift certificates and store credits as a reduction/(increase) to general, administrative and store operating expenses. Layaway sales were recognized upon receipt of the initial payment. The Company now defers the recognition of income on these transactions until the merchandise is delivered to the customer. The Company has given retroactive effect to this accounting change by restating its previously issued financial statements. The minority interest adjustment relates to the impact of the restatement on the net income of Intimate Brands, Inc., the Company's 84%-owned subsidiary. In addition, the Company reclassified certain distribution costs related to Bath and Body Works from general, administrative and store operating expenses to buying and occupancy expense, consistent with the Company's other businesses. The reclassification has no net impact on operating income. THE LIMITED, INC. ADJUSTED CONDENSED INCOME INFORMATION BASIS OF PRESENTATION TOO, ANF and SNRI Adjustments This column represents adjustments made to the historical unaudited quarterly and full year financial statements for TOO, ANF, and special and nonrecurring items. a. TOO results have been adjusted out of the historical unaudited quarterly and full year financial statements for all periods presented because TOO has not been consolidated in The Limited's financial statements subsequent to the August 23, 1999 spin-off. b. ANF results have been adjusted out of the historical unaudited quarterly and full year financial statements for all periods presented because ANF has not been consolidated in The Limited's financial statements subsequent to the May 19, 1998 split-off. Minority interest was adjusted for the minority interest in earnings of ANF for the periods presented. c. Special and nonrecurring items (including gains on sales of subsidiary stock) have been excluded for all periods presented. d. The assumed effective tax rate of the aforementioned adjustments, excluding the minority interest adjustment, is 40%. Additionally, the Company's $11 million pretax gain on the sale of a 60% interest in Galyan's Trading Co. in the third quarter of 1999 resulted in a $6 million provision for taxes, and the new tax basis of the Company's continuing Galyan's investment resulted in an additional $7 million provision for taxes. The minority interest adjustment is net of tax, consistent with the presentation of minority interest in the historical consolidated financial statements. e. The diluted net income per share is based upon the adjusted weighted average number of outstanding common shares and potentially issuable common shares of The Limited after the Exchange Offer at the exchange ratio of .86 of a share of ANF Common Stock for each share of Limited Common Stock. At the exchange ratio, 47.1 million shares of Limited Common Stock were acquired as treasury shares for the purpose of calculating diluted net income per share.
------------------------------------------------------------------------------------------------ The Limited, Inc. Adjusted Condensed Income Information Thirteen weeks ended October 30, 1999 ($000's, except share and per share amounts) ------------------------------------------------------------------------------------------------ TOO, ANF As Previously % of Restatement As % of and SNRI % of Reported Sales Adjustments Restated Sales Adjustments Adjusted Sales ------------------------------------------------------------------------------------------------ Net Sales $ 2,064,105 100.0% $ 2,064,105 100.0% ($41,465) $ 2,022,640 100.0% ------------------------------------------------------------------------------------------------ Gross Income 677,604 32.8% (7,355) 670,249 32.5% (14,655) 655,594 32.4% General, Administrative and Store Operating Expenses (585,110) -28.3% 9,055 (576,055) -27.9% 10,700 (565,355) -28.0% Special and Nonrecurring Items - 0.0% - 0.0% - 0.0% ------------------------------------------------------------------------------------------------ Operating Income 92,494 4.5% 1,700 94,194 4.6% (3,955) 90,239 4.5% Interest Expense (20,412) -1.0% (20,412) -1.0% (20,412) -1.0% Other Income, Net 9,655 0.5% 9,655 0.5% 9,655 0.5% Minority Interest (5,992) -0.3% (85) (6,077) -0.3% (6,077) -0.3% Gain on Sale of Subsidiary Stock 11,002 0.5% 11,002 0.5% (11,002) - 0.0% ------------------------------------------------------------------------------------------------ Income Before Income Taxes 86,747 4.2% 1,615 88,362 4.3% (14,957) 73,405 3.6% Provision for Income Taxes 46,000 2.2% 1,000 47,000 2.3% (15,000) 32,000 1.6% Effective Rate 53.0% 53.2% 43.6% ------------------------------------------------------------------------------------------------ Net Income $ 40,747 2.0% $615 $ 41,362 2.0% $43 $ 41,405 2.0% ================================================================================================ Diluted Earnings Per Share $ 0.18 $ 0.18 $ 0.18 =============== ============ ============ Weighted Average Shares Outstanding 222,884 222,884 222,884 ------------------------------------------------------------------------------------------------
Refer to Basis of Presentation 1
------------------------------------------------------------------------------------------------ The Limited, Inc. Adjusted Condensed Income Information Thirteen Weeks Ended July 31, 1999 ($000's, except share and per share amounts) ------------------------------------------------------------------------------------------------ TOO, ANF As Previously % of Restatement As % of and SNRI % of Reported Sales Adjustments Restated Sales Adjustments Adjusted Sales ------------------------------------------------------------------------------------------------ Net Sales $ 2,267,821 100.0% $ 2,267,821 100.0% ($86,864) $ 2,180,957 100.0% ------------------------------------------------------------------------------------------------ Gross Income 733,727 32.4% $(6,080) 727,647 32.1% (28,606) 699,041 32.1% General, Administrative and Store Operating Expenses (602,051) -26.5% 14,680 (587,371) -25.9% 26,902 (560,469) -25.7% Special and Nonrecurring Items (13,075) -0.6% (13,075) -0.6% 13,075 - 0.0% ------------------------------------------------------------------------------------------------ Operating Income 118,601 5.2% 8,600 127,201 5.6% 11,371 138,572 6.4% Interest Expense (20,159) -0.9% (20,159) -0.9% (20,159) -0.9% Other Income, Net 12,509 0.6% 12,509 0.6% 12,509 0.6% Minority Interest (13,586) -0.6% (483) (14,069) -0.6% (14,069) -0.6% Gain on Sale of Subsidiary Stock - 0.0% - 0.0% - 0.0% ------------------------------------------------------------------------------------------------ Income Before Income Taxes 97,365 4.3% 8,117 105,482 4.7% 11,371 116,853 5.4% Provision for Income Taxes 45,000 2.0% 3,000 48,000 2.1% 4,300 52,300 2.4% Effective Rate 46.2% 45.5% 44.8% ------------------------------------------------------------------------------------------------ Net Income $ 52,365 2.3% $ 5,117 $ 57,482 2.5% $ 7,071 $ 64,553 3.0% ================================================================================================ Diluted Earnings Per Share $ 0.22 $ 0.24 $ 0.27 =============== ============ ============ Weighted Average Shares Outstanding 230,226 230,226 230,226 ------------------------------------------------------------------------------------------------
Refer to Basis of Presentation 2
------------------------------------------------------------------------------------------------ The Limited, Inc. Adjusted Condensed Income Information Thirteen Weeks Ended May 1, 1999 ($000's, except share and per share amounts) ------------------------------------------------------------------------------------------------ TOO, ANF As Previously % of Restatement As % of and SNRI % of Reported Sales Adjustments Restated Sales Adjustments Adjusted Sales ------------------------------------------------------------------------------------------------ Net Sales $ 2,104,798 100.0% $ 2,104,798 100.0% ($95,048) $ 2,009,750 100.0% ------------------------------------------------------------------------------------------------ Gross Income 660,203 31.4% (6,835) 653,368 31.0% (31,724) 621,644 30.9% General, Administrative and Store Operating Expenses (590,773) -28.1% 27,735 (563,038) -26.8% 30,412 (532,626) -26.5% Special and Nonrecurring Items - 0.0% - 0.0% - 0.0% ------------------------------------------------------------------------------------------------ Operating Income 69,430 3.3% 20,900 90,330 4.3% (1,312) 89,018 4.4% Interest Expense (16,790) -0.8% (16,790) -0.8% (16,790) -0.8% Other Income, Net 15,331 0.7% 15,331 0.7% 15,331 0.8% Minority Interest (7,425) -0.4% (995) (8,420) -0.4% (8,420) -0.4% Gain on Sale of Subsidiary Stock - 0.0% - 0.0% - 0.0% ------------------------------------------------------------------------------------------------ Income Before Income Taxes 60,546 2.9% 19,905 80,451 3.8% (1,312) 79,139 3.9% Provision for Income Taxes 27,000 1.3% 8,000 35,000 1.7% (500) 34,500 1.7% Effective Rate 44.6% 43.5% 43.6% ------------------------------------------------------------------------------------------------ Net Income $ 33,546 1.6% $11,905 $ 45,451 2.2% ($812) $ 44,639 2.2% ================================================================================================ Diluted Earnings Per Share $ 0.14 $ 0.19 $ 0.19 ================= ============= ============== Weighted Average Shares Outstanding 235,547 235,547 235,547 ------------------------------------------------------------------------------------------------
Refer to Basis of Presentation 3
------------------------------------------------------------------------------------------------ The Limited, Inc. Adjusted Condensed Income Information Fifty-Two Weeks Ended January 30, 1999 ($000's, except share and per share amounts) ------------------------------------------------------------------------------------------------ TOO, ANF As Previously % of Restatement As % of and SNRI % of Reported Sales Adjustments Restated Sales Adjustments Adjusted Sales ------------------------------------------------------------------------------------------------ Net Sales $ 9,346,911 100.0% $ 9,346,911 100.0% ($533,278) $ 8,813,633 100.0% ------------------------------------------------------------------------------------------------ Gross Income 2,997,966 32.1% (26,706) 2,971,260 31.8% (182,156) 2,789,104 31.6% General, Administrative and Store Operating Expenses (2,300,523) -24.6% 13,606 (2,286,917) -24.5% 141,271 (2,145,646) -24.3% Special and Nonrecurring Items 1,740,030 18.6% 1,740,030 18.6% (1,740,030) - 0.0% ------------------------------------------------------------------------------------------------ Operating Income 2,437,473 26.1% (13,100) 2,424,373 25.9% (1,780,915) 643,458 7.3% Interest Expense (68,528) -0.7% (68,528) -0.7% (68,528) -0.8% Other Income, Net 59,265 0.6% 59,265 0.6% 59,265 0.7% Minority Interest (64,564) -0.7% 948 (63,616) -0.7% 1,180 (62,436) -0.7% Gain on Sale of Subsidiary Stock - 0.0% - 0.0% - 0.0% ------------------------------------------------------------------------------------------------ Income Before Income Taxes 2,363,646 25.3% (12,152) 2,351,494 25.2% (1,779,735) 571,759 6.5% Provision for Income Taxes 310,000 3.3% (5,000) 305,000 3.3% (51,200) 253,800 2.9% Effective Rate 13.3% 13.0% 44.4% ------------------------------------------------------------------------------------------------ Net Income $ 2,053,646 22.0% ($7,152) $2,046,494 21.9% ($1,728,535) $ 317,959 3.6% ================================================================================================ Diluted Earnings Per Share $ 8.32 $ 8.29 $ 1.35 =============== ============ ============ Weighted Average Shares Outstanding 246,319 246,319 232,481 ------------------------------------------------------------------------------------------------
Refer to Basis of Presentation 4
------------------------------------------------------------------------------------------------ The Limited, Inc. Adjusted Condensed Income Information Thirteen Weeks Ended January 30, 1999 ($000's, except share and per share amounts) ------------------------------------------------------------------------------------------------ TOO, ANF As Previously % of Restatement As % of and SNRI % of Reported Sales Adjustments Restated Sales Adjustments Adjusted Sales ------------------------------------------------------------------------------------------------ Net Sales $ 3,255,871 100.0% $ 3,255,871 100.0% ($123,220) $ 3,132,651 100.0% ------------------------------------------------------------------------------------------------ Gross Income 1,179,839 36.2% (8,996) 1,170,843 36.0% (46,440) 1,124,403 35.9% General, Administrative and Store Operating Expenses (696,107) -21.4% (30,504) (726,611) -22.3% 25,661 (700,950) -22.4% Special and Nonrecurring Items - 0.0% - 0.0% - 0.0% ------------------------------------------------------------------------------------------------ Operating Income 483,732 14.9% (39,500) 444,232 13.6% (20,779) 423,453 13.5% Interest Expense (19,299) -0.6% (19,299) -0.6% (19,299) -0.6% Other Income, Net 14,956 0.5% 14,956 0.5% 14,956 0.5% Minority Interest (37,905) -1.2% 2,190 (35,715) -1.1% (35,715) -1.1% Gain on Sale of Subsidiary Stock - 0.0% - 0.0% - 0.0% ------------------------------------------------------------------------------------------------ Income Before Income Taxes 441,484 13.6% (37,310) 404,174 12.4% (20,779) 383,395 12.2% Provision for Income Taxes 191,000 5.9% (15,000) 176,000 5.4% (8,400) 167,600 5.4% Effective Rate 43.3% 43.5% 43.7% ------------------------------------------------------------------------------------------------ Net Income $ 250,484 7.7% (22,310) $ 228,174 7.0% ($12,379) $ 215,795 6.9% ================================================================================================ Diluted Earnings Per Share $ 1.07 $ 0.97 $ 0.92 ================= ============= ============== Weighted Average Shares Outstanding 231,783 231,783 231,783 ------------------------------------------------------------------------------------------------
Refer to Basis of Presentation 5
------------------------------------------------------------------------------------------------ The Limited, Inc. Adjusted Condensed Income Information Thirteen Weeks Ended October 31, 1998 ($000's, except share and per share amounts) ------------------------------------------------------------------------------------------------ TOO, ANF As Previously % of Restatement As % of and SNRI % of Reported Sales Adjustments Restated Sales Adjustments Adjusted Sales ------------------------------------------------------------------------------------------------ Net Sales $ 1,999,862 100.0% $ 1,999,862 100.0% ($96,720) $ 1,903,142 100.0% ------------------------------------------------------------------------------------------------ Gross Income 616,743 30.8% (7,565) 609,178 30.5% (29,870) 579,308 30.4% General, Administrative and Store Operating Expenses (535,757) -26.8% 8,765 (526,992) -26.4% 22,822 (504,170) -26.5% Special and Nonrecurring Items - 0.0% - 0.0% - 0.0% ------------------------------------------------------------------------------------------------ Operating Income 80,986 4.1% 1,200 82,186 4.1% (7,048) 75,138 3.9% Interest Expense (17,074) -0.9% (17,074) -0.9% (17,074) -0.9% Other Income, Net 12,561 0.6% 12,561 0.6% 12,561 0.7% Minority Interest (6,118) -0.3% 38 (6,080) -0.3% (6,080) -0.3% Gain on Sale of Subsidiary Stock - 0.0% - 0.0% - 0.0% ------------------------------------------------------------------------------------------------ Income Before Income Taxes 70,355 3.5% 1,238 71,593 3.6% (7,048) 64,545 3.4% Provision for Income Taxes 31,000 1.6% 31,000 1.6% (2,800) 28,200 1.5% Effective Rate 44.1% 43.3% 43.7% ------------------------------------------------------------------------------------------------ Net Income $ 39,355 2.0% $1,238 $ 40,593 2.0% ($4,248) $ 36,345 1.9% ================================================================================================ Diluted Earnings Per Share $ 0.17 $ 0.17 $ 0.15 =============== ============ ============ Weighted Average Shares Outstanding 231,052 231,052 231,052 ------------------------------------------------------------------------------------------------
Refer to Basis of Presentation 6
------------------------------------------------------------------------------------------------ The Limited, Inc. Adjusted Condensed Income Information Thirteen Weeks Ended August 1, 1998 ($000's except share and per share amounts) ------------------------------------------------------------------------------------------------ TOO, ANF As Previously % of Restatement As % of and SNRI % of Reported Sales Adjustments Restated Sales Adjustments Adjusted Sales ------------------------------------------------------------------------------------------------ Net Sales $ 2,083,101 100.0% $ 2,083,101 100.0% ($96,851) $ 1,986,250 100.0% ------------------------------------------------------------------------------------------------ Gross Income 614,714 29.5% (5,130) 609,584 29.3% (31,747) 577,837 29.1% General, Administrative and Store Operating Expenses (538,336) -25.8% 12,230 (526,106) -25.3% 29,317 (496,789) -25.0% Special and Nonrecurring Items 1,651,397 79.3% 1,651,397 79.3% (1,651,397) - 0.0% ------------------------------------------------------------------------------------------------ Operating Income 1,727,775 82.9% 7,100 1,734,875 83.3% (1,653,827) 81,048 4.1% Interest Expense (16,414) -0.8% (16,414) -0.8% (16,414) -0.8% Other Income, Net 15,595 0.7% 15,595 0.7% 15,595 0.8% Minority Interest (12,618) -0.6% (370) (12,988) -0.6% 183 (12,805) -0.6% Gain on Sale of Subsidiary Stock - 0.0% - 0.0% - 0.0% ------------------------------------------------------------------------------------------------ Income Before Income Taxes 1,714,338 82.3% 6,730 1,721,068 82.6% (1,653,644) 67,424 3.4% Provision for Income Taxes 30,000 1.4% 3,000 33,000 1.6% (900) 32,100 1.6% Effective Rate 1.8% 1.9% 47.6% ------------------------------------------------------------------------------------------------ Net Income $ 1,684,338 80.9% $3,730 $ 1,688,068 81.0% ($1,652,744) $ 35,324 1.8% ================================================================================================ Diluted Earnings Per Share $ 6.93 $ 6.94 $ 0.15 ================= ============= ============== Weighted Average Shares Outstanding 243,079 243,079 234,802 ------------------------------------------------------------------------------------------------
Refer to Basis of Presentation 7
------------------------------------------------------------------------------------------------ The Limited, Inc. Adjusted Condensed Income Information Thirteen Weeks Ended May 2, 1998 ($000's, except share and per share amounts) ------------------------------------------------------------------------------------------------ TOO, ANF As Previously % of Restatement As % of and SNRI % of Reported Sales Adjustments Restated Sales Adjustments Adjusted Sales ------------------------------------------------------------------------------------------------ Net Sales $ 2,008,077 100.0% $ 2,008,077 100.0% ($216,487) $ 1,791,590 100.0% ------------------------------------------------------------------------------------------------ Gross Income 586,670 29.2% (5,015) 581,655 29.0% (74,099) 507,556 28.3% General, Administrative and Store Operating Expenses (530,323) -26.4% 23,115 (507,208) -25.3% 63,471 (443,737) -24.8% Special and Nonrecurring Items 88,633 4.4% 88,633 4.4% (88,633) - 0.0% ------------------------------------------------------------------------------------------------ Operating Income 144,980 7.2% 18,100 163,080 8.1% (99,261) 63,819 3.6% Interest Expense (15,741) -0.8% (15,741) -0.8% (15,741) -0.9% Other Income, Net 16,153 0.8% 16,153 0.8% 16,153 0.9% Minority Interest (7,923) -0.4% (910) (8,833) -0.4% 997 (7,836) -0.4% Gain on Sale of Subsidiary Stock - 0.0% - 0.0% - 0.0% ------------------------------------------------------------------------------------------------ Income Before Income Taxes 137,469 6.8% 17,190 154,659 7.7% (98,264) 56,395 3.1% Provision for Income Taxes 58,000 2.9% 7,000 65,000 3.2% (39,100) 25,900 1.4% Effective Rate 42.2% 42.0% 45.9% ------------------------------------------------------------------------------------------------ Net Income $ 79,469 4.0% $10,190 $ 89,659 4.5% ($59,164) $ 30,495 1.7% ================================================================================================ Diluted Earnings Per Share $ 0.28 $ 0.32 $ 0.13 ================= ============= ============== Weighted Average Shares Outstanding 279,362 279,362 232,287 ------------------------------------------------------------------------------------------------
Refer to Basis of Presentation 8
------------------------------------------------------------------------------------------------ The Limited, Inc. Adjusted Condensed Income Information Fifty-Two Weeks Ended January 31, 1998 ($000's, except share and per share amounts) ------------------------------------------------------------------------------------------------ TOO, ANF As Previously % of Restatement As % of and SNRI % of Reported Sales Adjustments Restated Sales Adjustments Adjusted Sales ------------------------------------------------------------------------------------------------ Net Sales $ 9,188,804 100.0% $ 9,188,804 100.0% ($843,767) $ 8,345,037 100.0% ------------------------------------------------------------------------------------------------ Gross Income 2,817,977 30.7% (22,495) 2,795,482 30.4% (283,327) 2,512,155 30.1% General, Administrative and Store Operating Expenses (2,124,663) -23.1% 11,895 (2,112,768) -23.0% 199,905 (1,912,863) -22.9% Special and Nonrecurring Items (213,215) -2.3% (213,215) -2.3% 213,215 - 0.0% ------------------------------------------------------------------------------------------------ Operating Income 480,099 5.2% (10,600) 469,499 5.1% 129,793 599,292 7.2% Interest Expense (68,728) -0.7% (68,728) -0.7% (68,728) -0.8% Other Income, Net 36,886 0.4% 36,886 0.4% 36,886 0.4% Minority Interest (56,473) -0.6% 863 (55,610) -0.6% 493 (55,117) -0.7% Gain on Sale of Subsidiary Stock 8,606 0.1% 8,606 0.1% (8,606) - 0.0% ------------------------------------------------------------------------------------------------ Income Before Income Taxes 400,390 4.4% (9,737) 390,653 4.3% 121,680 512,333 6.1% Provision for Income Taxes 183,000 2.0% (4,000) 179,000 1.9% 48,100 227,100 2.7% Effective Rate 45.7% 45.8% 39.5% 44.3% ------------------------------------------------------------------------------------------------ Net Income $ 217,390 2.4% ($5,737) $ 211,653 2.3% $73,580 $ 285,233 3.4% ================================================================================================ Diluted Earnings Per Share $ 0.79 $ 0.77 $ 1.25 ================= ============= ============== Weighted Average Shares Outstanding 274,483 274,483 227,408 ------------------------------------------------------------------------------------------------
Refer to Basis of Presentation 9 -----END PRIVACY-ENHANCED MESSAGE-----