Consolidated Statements of Operations - 4Q 2009 (Unaudited)
(All amounts in millions except percentages and per share figures)
| |
13 Weeks Ended
January 30, 2010 |
|
13 Weeks Ended
January 31, 2009 |
| |
|
$ |
|
% to
Net Sales |
|
$ |
|
% to
Net Sales |
| |
| Net sales |
|
$7,849 |
|
|
|
$7,934 |
|
|
| |
| Cost of sales (Note 1) |
|
4,577 |
|
58.3% |
|
4,812 |
|
60.7% |
| |
| Gross margin |
|
3,272 |
|
41.7% |
|
3,122 |
|
39.3% |
| |
| Selling, general and administrative expenses |
|
(2,212) |
|
(28.2%) |
|
(2,256) |
|
(28.4%) |
| |
| Division consolidation costs and store closing related costs (Note 2) |
|
(71) |
|
(0.9%) |
|
(58) |
|
(0.8%) |
| |
| Assest impairment charges (Note 3) |
|
(115) |
|
(1.5%) |
|
(161) |
|
(2.0%) |
| |
| Goodwill impairment charges (Note 4) |
|
– |
|
– % |
|
(5,382) |
|
(67.8%) |
| |
| Operating income (loss) |
|
874 |
|
11.1% |
|
(4,735) |
|
(59.7%) |
| |
| Interest expense - net |
|
(139) |
|
|
|
(143) |
|
|
| |
| Income (loss) before income taxes |
|
735 |
|
|
|
(4,878) |
|
|
| |
Federal, state and local income tax
benefit (expense) (Note 5) |
|
(269) |
|
|
|
105 |
|
|
| |
| Net income (loss) |
|
$466 |
|
|
|
$(4,773) |
|
|
| |
| Basic earnings (loss) per share |
|
$1.10 |
|
|
|
$(11.33) |
|
|
| |
| Diluted earnings (loss) per share |
|
$1.10 |
|
|
|
$(11.33) |
|
|
| |
| Average common shares: |
| Basic |
|
422.2 |
|
|
|
421.4 |
|
|
| Diluted |
|
424.1 |
|
|
|
421.4 |
|
|
| |
| End of period common shares outstanding |
|
421.8 |
|
|
|
420.1 |
|
|
| |
| Depreciation and amortization expense |
|
$305 |
|
|
|
$328 |
|
|
Notes:
(1) Merchandise inventories are primarily valued at the lower of cost or market using the last-in, first-out (LIFO) retail inventory method. Application of this method did not impact cost of sales for the 13 weeks ended January 30, 2010 or January 31, 2009.
(2) For the 13 weeks ended January 30, 2010, includes $65 million of restructuring-related costs and expenses associated with the division consolidations and localization initiatives announced in February 2009, primarily severance and other human resource-related costs, and $6 million of costs and expenses related to the store closings announced in January 2010. For the 13 weeks ended January 31, 2009, included $17 million of restructuring-related costs and expenses associated with the division consolidations and localization initiatives announced in February 2008, primarily severance and other human resource-related costs, $30 million of severance costs associated with the division consolidations and localization initiatives announced in February 2009, and $11 million of costs and expenses related to the store closings announced in January 2009. For the 13 weeks ended January 30, 2010 and January 31, 2009, these costs amounted to $.11 and $.09 per diluted share, respectively.
(3) For the 13 weeks ended January 30, 2010, includes $115 million of asset impairment charges related to properties held and used, $10 million of which is related to the store closings announced in January 2010. For the 13 weeks ended January 31, 2009, included $96 million of asset impairment charges related to properties held and used, $40 million of asset impairment charges related to the store closings announced in January 2009, $13 million of asset impairment charges associated with acquired indefinite lived private brand tradenames and $12 million of asset impairment charges associated with the Company's investment in The Knot. For the 13 weeks ended January 30, 2010 and January 31, 2009, these non-cash costs amounted to $.19 and $.24 per diluted share, respectively.
(4) Represents a pre-tax goodwill impairment charge of $5,382 million, $5,083 million after income taxes, or $12.06 per diluted share, based on results of the goodwill impairment testing as of January 31, 2009. The first step of the goodwill impairment test involved estimating the fair value of each of the Company's reporting units based on its estimated discounted cash flows and comparing the estimated fair value of each reporting unit to its carrying value. The second step of the goodwill impairment test required the Company to allocate the estimated fair value of each of its reporting units to the estimated fair value of the reporting unit's net assets, with any fair value in excess of amounts allocated to such net assets representing the implied fair value of goodwill for that reporting unit.
(5) Federal, state and local income taxes differ from the federal income tax statutory rate of 35%, principally because of the impact of non-deductible goodwill impairment charges, the effect of state and local taxes and the settlement of various tax issues and tax examinations. Income tax expense for the 13 weeks ended January 30, 2010 reflects approximately $21 million, or $.05 per diluted share, of tax benefits related to the settlement of federal income tax examinations, primarily attributable to the disposition of former subsidiaries.
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Consolidated Statements of Operations - 4Q 2009 (Unaudited)
(All amounts in millions except percentages and per share figures)
| |
52 Weeks Ended
January 30, 2010 |
|
52 Weeks Ended
January 31, 2009 |
| |
|
$ |
|
% to
Net Sales |
|
$ |
|
% to
Net Sales |
| |
| Net sales |
|
$23,489 |
|
|
|
$24,892 |
|
|
| |
| Cost of sales (Note 1) |
|
13,973 |
|
59.5% |
|
15,009 |
|
60.3% |
| |
| Gross margin |
|
9,516 |
|
40.5% |
|
9,883 |
|
39.7% |
| |
| Selling, general and administrative expenses |
|
(8,062) |
|
(34.3%) |
|
(8,481) |
|
(34.1%) |
| |
| Division consolidation costs and store closing related costs (Note 2) |
|
(276) |
|
(1.2%) |
|
(187) |
|
(0.8%) |
| |
| Assest impairment charges (Note 3) |
|
(115) |
|
(0.5%) |
|
(211) |
|
(0.8%) |
| |
| Goodwill impairment charges (Note 4) |
|
– |
|
– % |
|
(5,382) |
|
(21.6%) |
| |
| Operating income (loss) |
|
1,063 |
|
4.5% |
|
(4,378) |
|
(17.6%) |
| |
| Interest expense - net |
|
(556) |
|
|
|
(560) |
|
|
| |
| Income (loss) before income taxes |
|
507 |
|
|
|
(4,938) |
|
|
| |
Federal, state and local income tax
benefit (expense) (Note 5) |
|
(157) |
|
|
|
135 |
|
|
| |
| Net income (loss) |
|
$350 |
|
|
|
$(4,803) |
|
|
| |
| Basic earnings (loss) per share |
|
$.83 |
|
|
|
$(11.40) |
|
|
| |
| Diluted earnings (loss) per share |
|
$.83 |
|
|
|
$(11.40) |
|
|
| |
| Average common shares: |
| Basic |
|
421.7 |
|
|
|
421.2 |
|
|
| Diluted |
|
423.2 |
|
|
|
421.2 |
|
|
| |
| End of period common shares outstanding |
|
421.8 |
|
|
|
420.1 |
|
|
| |
| Depreciation and amortization expense |
|
$1,210 |
|
|
|
$1,278 |
|
|
Notes:
(1) Merchandise inventories are primarily valued at the lower of cost or market using the last-in, first-out (LIFO) retail inventory method. Application of this method did not impact cost of sales for the 52 weeks ended January 30, 2010 or January 31, 2009.
(2) For the 52 weeks ended January 30, 2010, includes $270 million of restructuring-related costs and expenses associated with the division consolidations and localization initiatives announced in February 2009, primarily severance and other human resource-related costs, and $6 million of costs and expenses related to the store closings announced in January 2010. For the 52 weeks ended January 31, 2009, included $146 million of restructuring-related costs and expenses associated with the division consolidations and localization initiatives announced in February 2008, primarily severance and other human resource-related costs, $30 million of severance costs associated with the division consolidations and localization initiatives announced in February 2009, and $11 million of costs and expenses related to the store closings announced in January 2009. For the 52 weeks ended January 30, 2010 and January 31, 2009, these costs amounted to $.41 and $.28 per diluted share, respectively.
(3) For the 52 weeks ended January 30, 2010, includes $115 million of asset impairment charges related to properties held and used, $10 million of which is related to the store closings announced in January 2010. For the 52 weeks ended January 31, 2009, included $96 million of asset impairment charges related to properties held and used, $40 million of asset impairment charges related to the store closings announced in January 2009, $63 million of asset impairment charges associated with acquired indefinite lived private brand tradenames and $12 million of asset impairment charges associated with the Company's investment in The Knot. For the 52 weeks ended January 30, 2010 and January 31, 2009, these non-cash costs amounted to $.17 and $.32 per diluted share, respectively.
(4) Represents a pre-tax goodwill impairment charge of $5,382 million, $5,083 million after income taxes, or $12.06 per diluted share, based on results of the goodwill impairment testing as of January 31, 2009. The first step of the goodwill impairment test involved estimating the fair value of each of the Company's reporting units based on its estimated discounted cash flows and comparing the estimated fair value of each reporting unit to its carrying value. The second step of the goodwill impairment test required the Company to allocate the estimated fair value of each of its reporting units to the estimated fair value of the reporting unit's net assets, with any fair value in excess of amounts allocated to such net assets representing the implied fair value of goodwill for that reporting unit.
(5) Federal, state and local income taxes differ from the federal income tax statutory rate of 35%, principally because of the impact of non-deductible goodwill impairment charges, the effect of state and local taxes and the settlement of various tax issues and tax examinations. Income tax expense for the 52 weeks ended January 30, 2010 reflects approximately $21 million, or $.05 per diluted share, of tax benefits related to the settlement of federal income tax examinations, primarily attributable to the disposition of former subsidiaries
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Historical Data:
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