-----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, L1Sx8P/FSa+tZoHWMCv1NEuyF9pznO2AMr9TgsOzbgjs6n9oTfV0lgzvDjUsWexn VlGIJ61oZc/kNaE8NF/v8w== 0000950144-03-003886.txt : 20030327 0000950144-03-003886.hdr.sgml : 20030327 20030327140301 ACCESSION NUMBER: 0000950144-03-003886 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030127 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030327 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SERVICE MERCHANDISE CO INC CENTRAL INDEX KEY: 0000089107 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-MISC GENERAL MERCHANDISE STORES [5399] IRS NUMBER: 620816060 STATE OF INCORPORATION: TN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09223 FILM NUMBER: 03620460 BUSINESS ADDRESS: STREET 1: 7100 SERVICE MERCHANDISE BLVD CITY: BRENTWOOD STATE: TN ZIP: 37027 BUSINESS PHONE: 6156606000 MAIL ADDRESS: STREET 1: PO BOX 24600 CITY: NASHVILLE STATE: TN ZIP: 37202 8-K 1 g81498e8vk.htm SERVICE MERCHANDISE COMPANY, INC. - FORM 8-K e8vk
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

 

Date of Report: January 27, 2003

 

SERVICE MERCHANDISE COMPANY, INC.
(Debtor-in-Possession as of March 27, 1999)

(Exact name of registrant as specified in its charter)

 

         
Tennessee   1-9223   62-0816060
 
 
(State or other jurisdiction of incorporation)   (Commission File Number)   (I.R.S. Employer
Identification No.)
         
     
7100 Service Merchandise Boulevard, Brentwood, TN   37027
 
(Address of principal executive offices)   (Zip code)

Registrant’s telephone number, including area code: (615) 660-6000

 

Not Applicable

(Former name or former address, if changed since last report)

 

Item 5. Other Events
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
SIGNATURES
EXHIBIT INDEX
MONTHLY OPERATING REPORT

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Item 5.   Other Events

     The Company has filed its monthly operating report for the period commencing January 27, 2003 and ended February 23, 2003 (the “Operating Report”) with the Bankruptcy Court in connection with its voluntary petitions for reorganization under Chapter 11 of title 11 of the United States Bankruptcy Code in Case No. 399-02649, a copy of which is attached hereto as Exhibit 99.

     The Company cautions readers not to place undue reliance upon the information contained in the Operating Report. The Operating Report contains unaudited information, and is in a format prescribed by the applicable bankruptcy laws. The financial statements and schedules related to the Company included in the Operating Report have not been prepared on a liquidation basis in accordance with generally accepted accounting principles (“GAAP”). Preparation of the financial statements and schedules on a liquidation basis of accounting would result in material adjustments to the financial statements and schedules. Consequently, no representation is made regarding the sufficiency of the financial statements and schedules. The Company cautions readers not to place undue reliance on the financial statements and schedules contained herein.

     There can be no assurance that the Operating Report is complete in all material respects. The Operating Report also contains information for periods which may be shorter or otherwise different from those contained in standard reports filed pursuant to the Exchange Act. Moreover, the Operating Report and other communications from the Company may include forward-looking statements subject to various assumptions regarding the Company’s anticipated liquidation or anticipated distributions that may not be realized and are subject to significant business, judicial, economic and competitive uncertainties and potential contingencies, including those described in this report, many of which are beyond the Company’s control. Consequently, such matters should not be regarded as a representation or warranty by the Company that such matters will be realized. Actual results may differ materially from that contemplated in any forward-looking statement and the Company undertakes no obligation to update or revise any such statement or Operating Report.

     The results of the Company’s planned liquidation and related distributions and the Company’s liquidity and capital resources are subject to a number of risks and uncertainties including, but not limited to, the following: matters affecting the timing and amounts of anticipated distributions to creditors; the ability of the Company to maximize asset value and control expenses; potential adverse developments with respect to the Company’s activities; competitive pressures from other retailers, including specialty retailers and discount stores, which may affect the effectiveness of the planned liquidation; the ability of the Company to retain and compensate key executives and associates; potential adverse publicity; and real estate costs, including the substantial fixed investment costs associated with disposing of Company stores.

     On January 4, 2002, the Company announced that it would cease continuing business operations. In its Current Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on April 4, 2002, the Company announced that it would adopt

 

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modified reporting to the SEC in light of its intention to liquidate, its limited resources, its inability to continue filing such reports without unreasonable effort and expense, its belief that modified reports will provide adequate information to interested parties and other factors. The Sarbanes-Oxley Act of 2002 requires that the principal executive officer and financial officer of a reporting company make certain certifications in their company’s periodic reports. The Company believes that its officers will not make any such certifications because the Company does not intend to file any reports on Forms 10-K or 10-Q in the future. Moreover, the Company has adopted modified reporting as described above and does not prepare its financial statements in accordance with GAAP.

 

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Item 7.   Financial Statements, Pro Forma Financial Information and Exhibits

  (c)   Exhibits
 
  99   Monthly Operating Report for period ended February 23, 2003.

 

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SIGNATURES

     Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

         
    SERVICE MERCHANDISE COMPANY, INC.
 
Date: March 26, 2003   By:   /s/ C. Steven Moore
C. Steven Moore
Senior Vice President, Chief Administrative
Officer, Secretary and General Counsel

 

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EXHIBIT INDEX

         
No.   Exhibit
 
  99    
Monthly Operating Report for the period ended February 23, 2003

  EX-99 3 g81498exv99.txt MONTHLY OPERATING REPORT . . . UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF TENNESSER In re: Case No.: 399-02649 THROUGH 399-02680 ------------------------------ SERVICE MERCHANDISE COMPANY, INC. Judge: PAINE --------------------------------- ------------------------------ Chapter 11
Debtor(s) MONTHLY OPERATING REPORT FOR PERIOD ENDING February 23, 2003 --------------------------- COMES NOW, SERVICE MERCHANDISE COMPANY, INC. ----------------------------------------------- Debtor-In-Possession, and hereby submits its Preliminary Monthly Operating Report for the period commencing January 27, 2003 and ending February 23, ---------------- ------------ 2003 as shown by the report and exhibits consisting of 15 pages and ---- -- containing the following as indicated: X Monthly Reporting Questionnaire (Attachment 1) ----- X Comparative Balance Sheets (Forms OPR-1 & OPR-2) ----- N/A Summary of Accounts Receivable (Form OPR-3) ----- X Schedule of Postpetition Liabilities (Form OPR-4) ----- X Statement of Income (Loss) (Form OPR-5) ----- I declare under penalty of perjury that this report and all the attachments are true and correct to the best of my knowledge and belief. On January 18, 2002, the United States Bankruptcy Court for the Middle District of Tennessee, Nashville Division (the "Bankruptcy Court") approved the request of Service Merchandise Company, Inc. and its Subsidiaries (the "Company") to immediately begin liquidating the inventory at all of its stores and to conduct store closing sales on a final basis and to discontinue operations at the stores. The financial statements and schedules related to the Company included herein have not been prepared on a liquidation basis in accordance with generally accepted accounting principles ("GAAP"). The information needed to prepare the financial statements and schedules on a liquidation basis is not currently available to management. Attempting to obtain such information necessary to prepare the financial statements and schedules on a liquidation basis would cause undue hardship and expense to the Company. Preparation of the financial statements and schedules on a liquidation basis of accounting would result in material adjustments to the financial statements and schedules. Consequently, no representation is made regarding the sufficiency of the financial statements and schedules. The Company cautions readers not to place undue reliance on the financial statements and schedules contained herein. This report includes those reports agreed upon as appropriate at this time between the Debtor and the U.S. Trustee. I also hereby certify that the original Monthly Operating Report was filed with the Bankruptcy Court Clerk and a copy delivered to the U. S. Trustee. Date: 3/17/03 DEBTOR - IN - POSSESSION ------- By: /s/ MICHAEL E. HOGREFE ------------------------------------------------------ Name and Title: MICHAEL E. HOGREFE, SR. VP AND CHIEF FINANCIAL OFFICER ------------------------------------------------------ Address: 7100 SERVICE MERCHANDISE DRIVE ------------------------------------------------------ BRENTWOOD, TENNESSEE 37027 ------------------------------------------------------ Telephone No: (615) 660-3477 ------------------------------------------------------
Note: Report subject to further verification and account reconciliation procedures Page 1 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: JANUARY 27, 2003 THROUGH FEBRUARY 23, 2003 1. PAYROLL
WAGES TAXES OFFICERS TITLE GROSS NET DUE PAID - ---------------------------------------------------------------------------------------------------------------------------------- C. STEVEN MOORE SENIOR VICE PRESIDENT, CHIEF ADMINISTRATIVE OFFICER, $27,693.91 $16,334.03 $2,297.89 $7,148.98 GENERAL COUNSEL AND SECRETARY MICHAEL E. HOGREFE SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER $23,847.83 $14,212.44 $1,924.50 $6,028.65
Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 2 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: JANUARY 27, 2003 THROUGH FEBRUARY 23, 2003 2. INSURANCE
COVERAGE POLICY EXPIRATION PREMIUM DATE COVERAGE TYPE NAME OF CARRIER AMOUNT NUMBER DATE AMOUNT PAID THROUGH - ----------------------------------------------------------------------------------------------------------------------------------- Property Fireman's Fund Insurance Co $5 Million 01MXI9761300 06/30/03 $20,625 06/30/03 Royal Indemnity Co. $5.5 Million R2HD325112 06/30/03 $60,000 06/30/03 Boiler & Machinery Hartford Steam Boiler $16.5 Million FBP4914359 12/31/03 $20,248 12/31/03 General Liability Ace American Ins Co $5 Million XSLG2057804A 12/31/03 $8,500 12/31/03 TN-Work Comp Assigned Rsk Continental Casualty Co Statutory 6S59UB878X943102 06/01/03 $3,989 06/01/03 Auto Pacific Employers Ins Co $1 Million ISAH07969661 12/31/03 $2,500 12/31/03 Umbrella Westchester Fire $25 Million CUA151233 06/30/03 $280,400 06/30/03 Directors & Officers Continental Insurance Co $10 Million 300714943 12/31/03 $514,286 12/31/03 Federal Insurance Co $10 Million 81278902-A 12/31/03 $470,250 12/31/03 Royal Insurance Co $10 Million PSF000009 12/31/03 $470,250 12/31/03 Fiduciary National Union Fire Ins Co $3 Million 2678130 12/31/03 $60,000 12/31/03
Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 3 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: JANUARY 27, 2003 THROUGH FEBRUARY 23, 2003 3. BANK ACCOUNTS
TOTAL CASH AND CASH EQUIVALENTS CORPORATE ACCOUNTS $ 853,835 CREDIT CARD CASH ACCOUNTS (SALES PROCESSED BY CREDIT CARD COMPANY) - OTHER DEPOSITORY ACCOUNTS 102920O CLEARING ACCT - CASH MGMT - 105600O FOUNTAINHEAD FUNDING ACCOUNT 5,143 OTHER CASH ACCOUNTS 5,143 INVESTMENTS SHORT TERM INVESTMENTS 93,162,939 ----------- TOTAL CASH PER GENERAL LEDGER $94,021,917 ===========
Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 4 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: JANUARY 27, 2003 THROUGH FEBRUARY 23, 2003 RECEIPTS AND DISBURSEMENTS (DOLLARS IN THOUSANDS)
ACTUAL ACTUAL ACTUAL ACTUAL TOTAL MONDAY 01/27/03 02/03/03 02/10/03 02/17/03 01/27/03 SUNDAY 02/02/03 02/09/03 02/16/03 02/23/03 02/23/03 -------- -------- -------- -------- -------- Receipts: Sales receipts/Profit Sharing $ - $ - $ - $ - $ - Miscellaneous receipts 255 69 181 90 595 Real Estate Proceeds/Settlement - - - - - Expense reimbursements - - - - - ----- ----- ----- ----- ------- Total available collections 255 69 181 90 $ 595 Disbursements: All disbursements 914 187 573 469 $ 2,143 ----- ----- ----- ----- ------- Total disbursements 914 187 573 469 2,143 ----- ----- ----- ----- ------- Net receipts/(disbursements) $(659) $(118) $(392) $(379) $(1,548) ===== ===== ===== ===== =======
Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 5 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: JANUARY 27, 2003 THROUGH FEBRUARY 23, 2003 ROLLING REVISED CASH FLOW FORECAST (DOLLARS IN THOUSANDS)
ACTUAL 02/23/03 -------- Ending total revolver balance $ - Term loan - Standby letters of credit 4,805 Trade letters of credit - ------ Total extensions of credit 4,805 Borrowing base - ------ Availability $ - ======
(1) As of 4/16/02, The Standby Letters of Credit were fully cash collateralized Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 6 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: JANUARY 27, 2003 THROUGH FEBRUARY 23, 2003 4. PAYMENTS TO PROFESSIONALS JANUARY 27, 2003 THROUGH FEBRUARY 23, 2003
VENDOR # VENDOR NAME CHECK AMT. CHECK DATE CHECK # - ------------------------------------------------------------------------------------------- 103439 E & Y Corporate Finance $13,052.00 01/27/03 B0027504 99454 Harwell, Howard, Hyne 5,589.92 01/27/03 B0027505 95913 Locke, Reynolds, LLP 568.74 01/30/03 70002430 67017 Barkley and Thompson 182.40 01/30/03 70002432 99326 The Aegis Group 794.73 01/30/03 70002435 99444 Strick and Company, Inc. 801.00 02/14/03 B0027510 71217 Bass, Berry and Sims 94,227.96 2/14/2003 B0027512 99329 The Aegis Group 531.00 02/17/03 70002525 99459 Robert L. Berger and Associates 18,499.75 02/19/03 B0027514
Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 7 FORM OPR- 1 AND 2 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) (Debtor - in - Possession) (In thousands)
FEBRUARY 23, 2003 ------------ ASSETS Current Assets: Cash and cash equivalents $ 94,022 Accounts receivable 402 Prepaid Expenses 100 -------- TOTAL CURRENT ASSETS 94,524 -------- PROPERTY AND EQUIPMENT Owned assets, net of accumulated depreciation 36,924 Capitalized leases, net of accumulated amortization - -------- TOTAL PROPERTY AND EQUIPMENT 36,924 -------- Other assets and deferred charges 15,770 -------- TOTAL ASSETS $147,218 ======== LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY Liabilities Not Subject To Compromise Current Liabilities: Notes payable to banks $ - Accounts payable 12,411 Accrued expenses 25,678 State & Local tax 363 Current maturities capitalized leases - -------- TOTAL CURRENT LIABILITIES 38,452 ========
Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 8 FORM OPR- 1 AND 2 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES Consolidated Balance Sheets (Unaudited) (Debtor - in - Possession) (In thousands) Long-Term Liabilities: Long-term debt - Capitalized lease obligations - Liabilities Subject To Compromise: Accrued restructuring costs 42,067 Capitalized lease obligations - Long-term debt 314,562 Accounts payable 220,184 Accrued expenses 108,083 --------- Total Liabilities Subject To Compromise 684,896 TOTAL LIABILITIES 723,348 --------- COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' (DEFICIT) EQUITY Common stock 49,936 Additional paid-in-capital 5,881 Deferred compensation - Accumulated other comprehensive loss - Retained (deficit) earnings (631,947) --------- TOTAL SHAREHOLDERS' (DEFICIT) EQUITY (576,130) TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) EQUITY $ 147,218 =========
Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 9 CHAPTER 11 MONTHLY OPERATING REPORT CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: JANUARY 27, 2003 THROUGH FEBRUARY 23, 2003 SUMMARY OF ACCOUNTS RECEIVABLE MONTH ENDED: FEBRUARY 23, 2003 FORM OPR-3 NOT APPLICABLE Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 10 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: JANUARY 27, 2003 THROUGH FEBRUARY 23, 2003 SCHEDULE OF POST PETITION LIABILITIES-ACCOUNTS PAYABLE MONTH ENDED: 2/23/2003 FORM OPR-4
Total ------- Trade Accounts Payable (Merchandise) $12,411
Total ------- Expense & other payables $25,678
Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 11 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: JANUARY 27, 2003 THROUGH FEBRUARY 23, 2003 SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4 (DOLLARS IN THOUSANDS)
DATE DATE TOTAL TAXES PAYABLE INCURRED DUE DUE ------------------------------ Federal income tax ** Various Various - State income tax Various Various $ (189) ------ SUBTOTAL $ (189) ------ Sales/use tax SUBTOTAL * Various Various $ 565 ------ Personal property tax * Various Various $ 7 Real estate taxes * Various Various $3,330 Inventory taxes * Various Various $ (406) Gross receipts/bus licenses * Various Various $ 8 Franchise taxes * Various Various $ 599 ------ SUBTOTAL $3,538 ------ ------ TOTAL TAXES PAYABLE $3,914 ======
* liability included in accrued expenses on OPR-2 ** tax reserve Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 12 CHAPTER 11 MONTHLY OPERATING REPORT MONTHLY REPORTING QUESTIONNAIRE CASE NAME: SERVICE MERCHANDISE COMPANY, INC. ET. AL. CASE NUMBER: 399-02649 THROUGH 399-02680 PERIOD: JANUARY 27, 2003 THROUGH FEBRUARY 23, 2003 SCHEDULE OF POST PETITION LIABILITIES FORM OPR-4 (DOLLARS IN THOUSANDS)
DATE TOTAL DUE INCURRED DATE DUE (2/23/03 BALANCE) ---------------------------------------------------- POST PETITION SECURED DEBT Revolver borrowings 04/14/00 NA - Facility standby letters of credit 04/14/00 NA $4,805 Facility trade letters of credit 04/14/00 NA - Term loans 04/14/00 NA - ------ TOTAL EXTENSIONS OF CREDIT $4,805 ====== ACCRUED INTEREST PAYABLE - ======
As of 4/16/02, The Standby Letters of Credit were fully cash collateralized Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 13 FORM OPR-5 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited) (Debtor - in - Possession) (In thousands)
ACTIVITY JANUARY 27, 2003 THROUGH FEBRUARY 23, 2003 ----------------- Net Sales $ - Costs of merchandise sold and buying and occupancy expense (4) ---- Gross margin after cost of merchandise sold and buying and occupancy expenses 4 Selling, General and Administrative Expenses: Net Employment Expense 142 Net Advertising - Banking and Other Fees (93) Real Estate and Other Taxes 0 Supplies 0 Communication and Equipment 9 Travel 0 UCC and Other Services 0 Legal and Professional 4 Sales and Shipping - Insurance - Miscellaneous (55) Credit Card Services - ---- Total Selling, General and Administrative Expenses 7 Other expense/(income), net -
Note: The disclosure on page 1 is an integral part of these consolidated financial statements and schedules. Page 14 FORM OPR-5 SERVICE MERCHANDISE COMPANY, INC. AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited) (Debtor - in - Possession) (In thousands) Restructuring charge (credit) - Depreciation and amortization - ---- Earnings (loss) before interest, reorganization items, and income tax (3) Interest expense - debt - Interest expense - capitalized leases - ---- Earnings (loss) before reorganization items, and income tax (3) Reorganization Items: Legal and Professional 48 (Gain) on Disposal of Assets (2) Miscellaneous 28 Close Store Charges - ---- Total Reorganization Items 74 Earnings (loss) before income tax (77) Income tax benefit - Cumulative Effect of Change in Accounting Principles - ---- Net earnings (loss) $(77) ====
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