Delaware | 000-51217, 001-36693 | 20-1920798 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
3333 Beverly Road Hoffman Estates, Illinois | 60179 | |||
(Address of principal executive offices) | (Zip code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Section 2 - | Financial Information |
Item 2.02 | Results of Operations and Financial Condition. |
On August 20, 2015, the Registrant issued a press release regarding its second quarter 2015 results. The press release is attached hereto as Exhibit 99.1. |
Section 9 - | Financial Statements and Exhibits |
Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits | |
Exhibit 99.1 - Press release dated August 20, 2015, furnished pursuant to Item 2.02. |
SEARS HOLDINGS CORPORATION | |
By: | /s/ Robert A. Riecker |
Robert A. Riecker | |
Vice President, Controller and Chief Accounting Officer |
99.1 | Press release dated August 20, 2015, furnished pursuant to Item 2.02. |
• | Domestic Adjusted EBITDA of $(200) million, excluding Seritage Growth Properties and joint venture rent, in the second quarter of 2015 compared to $(298) million in the prior year second quarter, which is the fourth consecutive quarter of improved EBITDA performance on a year-over-year basis; |
• | Net income attributable to Holdings' shareholders of $208 million ($1.84 earnings per diluted share) for the second quarter of 2015 compared to a net loss of $573 million ($5.39 loss per diluted share) for the prior year second quarter. Adjusted for significant items, we would have reported a net loss of $256 million ($2.40 loss per diluted share) for the quarter compared to a net loss of $293 million ($2.76 loss per diluted share) in the prior year quarter; |
• | Sales to Shop Your Way® members in Sears Full-line and Kmart stores were 74% of eligible sales for the second quarter; |
• | Kmart and Sears Domestic comparable store sales declined 7.3% and 14.0%, respectively, in the second quarter of 2015 driven in part by highly targeted promotional and marketing spend to better align with member needs, and a shift away from low margin categories, such as consumer electronics; |
• | Kmart's gross margin rate for the second quarter improved 80 basis points over the prior year second quarter, while Sears Domestic's gross margin rate improved 210 basis points; |
• | The completion on July 7, 2015 of the Company's rights offering and sale-leaseback transaction with Seritage Growth Properties, a recently formed, independent publicly traded real estate investment trust ("REIT") and received aggregate gross proceeds from the transaction of $2.7 billion; |
• | The completion on July 21, 2015 of an amendment and extension of our $3.275 billion domestic credit facility with approximately $2.0 billion maturing in 2020 and the remaining approximately $1.3 billion of the existing credit facility in place until April of 2016; |
• | The Company continues to demonstrate that it has the financial flexibility to fund its transformation and meet its obligations. As of August 1, 2015, the Company had $1.8 billion in cash, no revolver borrowings and $657 million of letters of credit outstanding. Availability under the Credit Agreement was approximately $1.2 billion; and |
• | Approximately $936 million principal amount of notes were validly tendered as part of our recent cash tender offer (the "Offer") for our 6 5/8% Senior Secured Notes due 2018 (the "Notes"). |
Sears Holdings Corporation | |||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||
(Unaudited) | |||||||||||||||
Amounts are Preliminary and Subject to Change | |||||||||||||||
13 Weeks Ended | 26 Weeks Ended | ||||||||||||||
millions, except per share data | August 1, 2015 | August 2, 2014 | August 1, 2015 | August 2, 2014 | |||||||||||
REVENUES | |||||||||||||||
Merchandise sales and services | $ | 6,211 | $ | 8,013 | $ | 12,093 | $ | 15,892 | |||||||
COSTS AND EXPENSES | |||||||||||||||
Cost of sales, buying and occupancy | 4,776 | 6,271 | 9,140 | 12,322 | |||||||||||
Gross margin dollars | 1,435 | 1,742 | 2,953 | 3,570 | |||||||||||
Gross margin rate | 23.1 | % | 21.7 | % | 24.4 | % | 22.5 | % | |||||||
Selling and administrative | 1,694 | 2,118 | 3,375 | 4,207 | |||||||||||
Selling and administrative expense as a percentage of total revenues | 27.3 | % | 26.4 | % | 27.9 | % | 26.5 | % | |||||||
Depreciation and amortization | 114 | 152 | 236 | 307 | |||||||||||
Impairment charges | 54 | 20 | 54 | 25 | |||||||||||
Gain on sales of assets | (526 | ) | (34 | ) | (633 | ) | (80 | ) | |||||||
Total costs and expenses | 6,112 | 8,527 | 12,172 | 16,781 | |||||||||||
Operating income (loss) | 99 | (514 | ) | (79 | ) | (889 | ) | ||||||||
Interest expense | (85 | ) | (72 | ) | (175 | ) | (143 | ) | |||||||
Interest and investment income (loss) | (26 | ) | 32 | (44 | ) | 36 | |||||||||
Other income (loss) | (1 | ) | 5 | — | 2 | ||||||||||
Loss before income taxes | (13 | ) | (549 | ) | (298 | ) | (994 | ) | |||||||
Income tax (expense) benefit | 221 | (32 | ) | 203 | (29 | ) | |||||||||
Net income (loss) | 208 | (581 | ) | (95 | ) | (1,023 | ) | ||||||||
Loss attributable to noncontrolling interests | — | 8 | — | 48 | |||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO HOLDINGS' SHAREHOLDERS | $ | 208 | $ | (573 | ) | $ | (95 | ) | $ | (975 | ) | ||||
NET INCOME (LOSS) PER COMMON SHARE ATTRIBUTABLE TO HOLDINGS' SHAREHOLDERS | |||||||||||||||
Basic earnings (loss) per share | $ | 1.95 | $ | (5.39 | ) | $ | (0.89 | ) | $ | (9.17 | ) | ||||
Diluted earnings (loss) per share | $ | 1.84 | $ | (5.39 | ) | $ | (0.89 | ) | $ | (9.17 | ) | ||||
Basic weighted average common shares outstanding | 106.5 | 106.3 | 106.5 | 106.3 | |||||||||||
Diluted weighted average common shares outstanding | 113.3 | 106.3 | 106.5 | 106.3 |
Sears Holdings Corporation | ||||||||||||
Condensed Consolidated Balance Sheets | ||||||||||||
(Unaudited) | ||||||||||||
Amounts are Preliminary and Subject to Change | ||||||||||||
millions | August 1, 2015 | August 2, 2014 | January 31, 2015 | |||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | $ | 1,819 | $ | 829 | $ | 250 | ||||||
Restricted cash | — | 10 | — | |||||||||
Accounts receivable | 460 | 516 | 429 | |||||||||
Merchandise inventories | 5,028 | 6,383 | 4,943 | |||||||||
Prepaid expenses and other current assets | 270 | 419 | 241 | |||||||||
Total current assets | 7,577 | 8,157 | 5,863 | |||||||||
Property and equipment, net | 2,732 | 5,091 | 4,449 | |||||||||
Goodwill | 269 | 269 | 269 | |||||||||
Trade names and other intangible assets | 2,091 | 2,302 | 2,097 | |||||||||
Other assets | 517 | 619 | 531 | |||||||||
TOTAL ASSETS | $ | 13,186 | $ | 16,438 | $ | 13,209 | ||||||
LIABILITIES | ||||||||||||
Current liabilities | ||||||||||||
Short-term borrowings | $ | 6 | $ | 1,404 | $ | 615 | ||||||
Current portion of long-term debt and capitalized lease obligations | 70 | 85 | 75 | |||||||||
Merchandise payables | 1,704 | 2,506 | 1,621 | |||||||||
Other current liabilities | 2,068 | 2,374 | 2,087 | |||||||||
Unearned revenues | 802 | 889 | 818 | |||||||||
Other taxes | 363 | 436 | 380 | |||||||||
Short-term deferred tax liabilities | 472 | 484 | 480 | |||||||||
Total current liabilities | 5,485 | 8,178 | 6,076 | |||||||||
Long-term debt and capitalized lease obligations | 3,068 | 2,815 | 3,110 | |||||||||
Pension and postretirement benefits | 2,258 | 1,721 | 2,404 | |||||||||
Deferred gain on sale-leaseback | 798 | — | — | |||||||||
Sale-leaseback financing obligation | 164 | — | — | |||||||||
Other long-term liabilities | 1,830 | 2,007 | 1,849 | |||||||||
Long-term deferred tax liabilities | 489 | 798 | 715 | |||||||||
Total Liabilities | 14,092 | 15,519 | 14,154 | |||||||||
EQUITY (DEFICIT) | ||||||||||||
Total Equity (Deficit) | (906 | ) | 919 | (945 | ) | |||||||
TOTAL LIABILITIES AND EQUITY (DEFICIT) | $ | 13,186 | $ | 16,438 | $ | 13,209 | ||||||
Total common shares outstanding | 106.6 | 106.5 | 106.5 |
Sears Holdings Corporation | |||||||||||||||
Segment Results | |||||||||||||||
(Unaudited) | |||||||||||||||
Amounts are Preliminary and Subject to Change | |||||||||||||||
13 Weeks Ended August 1, 2015 | |||||||||||||||
millions, except store data | Kmart | Sears Domestic | Sears Holdings | ||||||||||||
Merchandise sales and services | $ | 2,459 | $ | 3,752 | $ | 6,211 | |||||||||
Cost of sales, buying and occupancy | 1,950 | 2,826 | 4,776 | ||||||||||||
Gross margin dollars | 509 | 926 | 1,435 | ||||||||||||
Gross margin rate | 20.7 | % | 24.7 | % | 23.1 | % | |||||||||
Selling and administrative | 594 | 1,100 | 1,694 | ||||||||||||
Selling and administrative expense as a percentage of total revenues | 24.2 | % | 29.3 | % | 27.3 | % | |||||||||
Depreciation and amortization | 19 | 95 | 114 | ||||||||||||
Impairment charges | 2 | 52 | 54 | ||||||||||||
Gain on sales of assets | (143 | ) | (383 | ) | (526 | ) | |||||||||
Total costs and expenses | 2,422 | 3,690 | 6,112 | ||||||||||||
Operating income | $ | 37 | $ | 62 | $ | 99 | |||||||||
Number of: | |||||||||||||||
Kmart Stores | 963 | — | 963 | ||||||||||||
Full-Line Stores | — | 711 | 711 | ||||||||||||
Specialty Stores | — | 28 | 28 | ||||||||||||
Total Stores | 963 | 739 | 1,702 | ||||||||||||
13 Weeks Ended August 2, 2014 | |||||||||||||||
millions, except store data | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||
Merchandise sales and services | $ | 2,923 | $ | 4,310 | $ | 780 | $ | 8,013 | |||||||
Cost of sales, buying and occupancy | 2,341 | 3,334 | 596 | 6,271 | |||||||||||
Gross margin dollars | 582 | 976 | 184 | 1,742 | |||||||||||
Gross margin rate | 19.9 | % | 22.6 | % | 23.6 | % | 21.7 | % | |||||||
Selling and administrative | 729 | 1,184 | 205 | 2,118 | |||||||||||
Selling and administrative expense as a percentage of total revenues | 24.9 | % | 27.5 | % | 26.3 | % | 26.4 | % | |||||||
Depreciation and amortization | 24 | 110 | 18 | 152 | |||||||||||
Impairment charges | 2 | 3 | 15 | 20 | |||||||||||
Gain on sales of assets | (31 | ) | (3 | ) | — | (34 | ) | ||||||||
Total costs and expenses | 3,065 | 4,628 | 834 | 8,527 | |||||||||||
Operating loss | $ | (142 | ) | $ | (318 | ) | $ | (54 | ) | $ | (514 | ) | |||
Number of: | |||||||||||||||
Kmart Stores | 1,077 | — | — | 1,077 | |||||||||||
Full-Line Stores | — | 757 | 113 | 870 | |||||||||||
Specialty Stores | — | 36 | 319 | 355 | |||||||||||
Total Stores | 1,077 | 793 | 432 | 2,302 |
Sears Holdings Corporation | |||||||||||||||
Segment Results | |||||||||||||||
(Unaudited) | |||||||||||||||
Amounts are Preliminary and Subject to Change | |||||||||||||||
26 Weeks Ended August 1, 2015 | |||||||||||||||
millions, except store data | Kmart | Sears Domestic | Sears Holdings | ||||||||||||
Merchandise sales and services | $ | 4,815 | $ | 7,278 | $ | 12,093 | |||||||||
Cost of sales, buying and occupancy | 3,788 | 5,352 | 9,140 | ||||||||||||
Gross margin dollars | 1,027 | 1,926 | 2,953 | ||||||||||||
Gross margin rate | 21.3 | % | 26.5 | % | 24.4 | % | |||||||||
Selling and administrative | 1,217 | 2,158 | 3,375 | ||||||||||||
Selling and administrative expense as a percentage of total revenues | 25.3 | % | 29.7 | % | 27.9 | % | |||||||||
Depreciation and amortization | 39 | 197 | 236 | ||||||||||||
Impairment charges | 2 | 52 | 54 | ||||||||||||
Gain on sales of assets | (161 | ) | (472 | ) | (633 | ) | |||||||||
Total costs and expenses | 4,885 | 7,287 | 12,172 | ||||||||||||
Operating loss | $ | (70 | ) | $ | (9 | ) | $ | (79 | ) | ||||||
Number of: | |||||||||||||||
Kmart Stores | 963 | — | 963 | ||||||||||||
Full-Line Stores | — | 711 | 711 | ||||||||||||
Specialty Stores | — | 28 | 28 | ||||||||||||
Total Stores | 963 | 739 | 1,702 | ||||||||||||
26 Weeks Ended August 2, 2014 | |||||||||||||||
millions, except store data | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||
Merchandise sales and services | $ | 5,820 | $ | 8,595 | $ | 1,477 | $ | 15,892 | |||||||
Cost of sales, buying and occupancy | 4,643 | 6,550 | 1,129 | 12,322 | |||||||||||
Gross margin dollars | 1,177 | 2,045 | 348 | 3,570 | |||||||||||
Gross margin rate | 20.2 | % | 23.8 | % | 23.6 | % | 22.5 | % | |||||||
Selling and administrative | 1,420 | 2,356 | 431 | 4,207 | |||||||||||
Selling and administrative expense as a percentage of total revenues | 24.4 | % | 27.4 | % | 29.2 | % | 26.5 | % | |||||||
Depreciation and amortization | 47 | 224 | 36 | 307 | |||||||||||
Impairment charges | 2 | 8 | 15 | 25 | |||||||||||
(Gain) loss on sales of assets | (52 | ) | (29 | ) | 1 | (80 | ) | ||||||||
Total costs and expenses | 6,060 | 9,109 | 1,612 | 16,781 | |||||||||||
Operating loss | $ | (240 | ) | $ | (514 | ) | $ | (135 | ) | $ | (889 | ) | |||
Number of: | |||||||||||||||
Kmart Stores | 1,077 | — | — | 1,077 | |||||||||||
Full-Line Stores | — | 757 | 113 | 870 | |||||||||||
Specialty Stores | — | 36 | 319 | 355 | |||||||||||
Total Stores | 1,077 | 793 | 432 | 2,302 |
Sears Holdings Corporation | |||||||||||||||
Adjusted EBITDA | |||||||||||||||
(Unaudited) | |||||||||||||||
Amounts are Preliminary and Subject to Change | |||||||||||||||
13 Weeks Ended | 26 Weeks Ended | ||||||||||||||
millions | August 1, 2015 | August 2, 2014 | August 1, 2015 | August 2, 2014 | |||||||||||
Net income (loss) attributable to Holdings per statement of operations | $ | 208 | $ | (573 | ) | $ | (95 | ) | $ | (975 | ) | ||||
Loss attributable to noncontrolling interests | — | (8 | ) | — | (48 | ) | |||||||||
Income tax expense (benefit) | (221 | ) | 32 | (203 | ) | 29 | |||||||||
Interest expense | 85 | 72 | 175 | 143 | |||||||||||
Interest and investment (income) loss | 26 | (32 | ) | 44 | (36 | ) | |||||||||
Other (income) loss | 1 | (5 | ) | — | (2 | ) | |||||||||
Operating income (loss) | 99 | (514 | ) | (79 | ) | (889 | ) | ||||||||
Depreciation and amortization | 114 | 152 | 236 | 307 | |||||||||||
Gain on sales of assets | (526 | ) | (34 | ) | (633 | ) | (80 | ) | |||||||
Before excluded items | (313 | ) | (396 | ) | (476 | ) | (662 | ) | |||||||
Closed store reserve and severance | (2 | ) | 40 | 37 | 68 | ||||||||||
Domestic pension expense | 57 | 23 | 114 | 45 | |||||||||||
Other(1) | (15 | ) | — | (89 | ) | — | |||||||||
Amortization of deferred Seritage gain | (7 | ) | — | (7 | ) | — | |||||||||
Impairment charges | 54 | 20 | 54 | 25 | |||||||||||
Adjusted EBITDA | (226 | ) | (313 | ) | (367 | ) | (524 | ) | |||||||
Lands' End separation | — | — | — | (10 | ) | ||||||||||
Adjusted EBITDA as defined(2) | $ | (226 | ) | $ | (313 | ) | $ | (367 | ) | $ | (534 | ) | |||
Sears Canada segment | — | 15 | — | 58 | |||||||||||
Domestic Adjusted EBITDA as defined(2) | $ | (226 | ) | $ | (298 | ) | $ | (367 | ) | $ | (476 | ) | |||
Seritage/JV rent | 26 | — | 26 | — | |||||||||||
Domestic Adjusted EBITDA as defined(2) excluding Seritage/JV rent | $ | (200 | ) | $ | (298 | ) | $ | (341 | ) | $ | (476 | ) |
Sears Holdings Corporation | ||||||||||||||||||||||
Adjusted EBITDA | ||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||
Amounts are Preliminary and Subject to Change | ||||||||||||||||||||||
13 Weeks Ended | ||||||||||||||||||||||
August 1, 2015 | August 2, 2014 | |||||||||||||||||||||
millions | Kmart | Sears Domestic | Sears Holdings | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||||||
Operating income (loss) per statement of operations | $ | 37 | $ | 62 | $ | 99 | $ | (142 | ) | $ | (318 | ) | $ | (54 | ) | $ | (514 | ) | ||||
Depreciation and amortization | 19 | 95 | 114 | 24 | 110 | 18 | 152 | |||||||||||||||
Gain on sales of assets | (143 | ) | (383 | ) | (526 | ) | (31 | ) | (3 | ) | — | (34 | ) | |||||||||
Before excluded items | (87 | ) | (226 | ) | (313 | ) | (149 | ) | (211 | ) | (36 | ) | (396 | ) | ||||||||
Closed store reserve and severance | 5 | (7 | ) | (2 | ) | 27 | 7 | 6 | 40 | |||||||||||||
Domestic pension expense | — | 57 | 57 | — | 23 | — | 23 | |||||||||||||||
Other(1) | — | (15 | ) | (15 | ) | — | — | — | — | |||||||||||||
Amortization of deferred Seritage gain | (1 | ) | (6 | ) | (7 | ) | — | — | — | — | ||||||||||||
Impairment charges | 2 | 52 | 54 | 2 | 3 | 15 | 20 | |||||||||||||||
Adjusted EBITDA | (81 | ) | (145 | ) | (226 | ) | (120 | ) | (178 | ) | (15 | ) | (313 | ) | ||||||||
% to revenues | (3.3 | )% | (3.9 | )% | (3.6 | )% | (4.1 | )% | (4.1 | )% | (1.9 | )% | (3.9 | )% | ||||||||
26 Weeks Ended | ||||||||||||||||||||||
August 1, 2015 | August 2, 2014 | |||||||||||||||||||||
millions | Kmart | Sears Domestic | Sears Holdings | Kmart | Sears Domestic | Sears Canada | Sears Holdings | |||||||||||||||
Operating loss per statement of operations | $ | (70 | ) | $ | (9 | ) | $ | (79 | ) | $ | (240 | ) | $ | (514 | ) | $ | (135 | ) | $ | (889 | ) | |
Depreciation and amortization | 39 | 197 | 236 | 47 | 224 | 36 | 307 | |||||||||||||||
(Gain) loss on sales of assets | (161 | ) | (472 | ) | (633 | ) | (52 | ) | (29 | ) | 1 | (80 | ) | |||||||||
Before excluded items | (192 | ) | (284 | ) | (476 | ) | (245 | ) | (319 | ) | (98 | ) | (662 | ) | ||||||||
Closed store reserve and severance | 41 | (4 | ) | 37 | 36 | 7 | 25 | 68 | ||||||||||||||
Domestic pension expense | — | 114 | 114 | — | 45 | — | 45 | |||||||||||||||
Other(1) | 8 | (97 | ) | (89 | ) | — | — | — | — | |||||||||||||
Amortization of deferred Seritage gain | (1 | ) | (6 | ) | (7 | ) | — | — | — | — | ||||||||||||
Impairment charges | 2 | 52 | 54 | 2 | 8 | 15 | 25 | |||||||||||||||
Adjusted EBITDA | (142 | ) | (225 | ) | (367 | ) | (207 | ) | (259 | ) | (58 | ) | (524 | ) | ||||||||
Lands' End separation | — | — | — | — | (10 | ) | — | (10 | ) | |||||||||||||
Adjusted EBITDA as defined(2) | $ | (142 | ) | $ | (225 | ) | $ | (367 | ) | $ | (207 | ) | $ | (269 | ) | $ | (58 | ) | $ | (534 | ) | |
% to revenues(3) | (2.9 | )% | (3.1 | )% | (3.0 | )% | (3.6 | )% | (3.2 | )% | (3.9 | )% | (3.4 | )% |
Sears Holdings Corporation | ||||||||
Adjusted Earnings per Share | ||||||||
(Unaudited) | ||||||||
Amounts are Preliminary and Subject to Change |
13 Weeks Ended August 1, 2015 | |||||||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||||||
millions, except per share data | GAAP | Domestic Pension Expense | Domestic Closed Store Reserve, Store Impairments and Severance | Domestic Gain on Sales of Assets | Mark-to-Market Adjustments | Amortization of Deferred Seritage Gain | Other(1) | Domestic Tax Matters | As Adjusted | ||||||||||||||||||
Gross margin impact | $ | 1,435 | $ | — | $ | 5 | $ | — | $ | — | $ | (7 | ) | $ | (33 | ) | $ | — | $ | 1,400 | |||||||
Selling and administrative impact | 1,694 | (57 | ) | 7 | — | — | — | (18 | ) | — | 1,626 | ||||||||||||||||
Depreciation and amortization impact | 114 | — | (2 | ) | — | — | — | — | — | 112 | |||||||||||||||||
Impairment charges impact | 54 | — | (54 | ) | — | — | — | — | — | — | |||||||||||||||||
Gain on sales of assets impact | (526 | ) | — | — | 508 | — | — | — | — | (18 | ) | ||||||||||||||||
Operating income impact | 99 | 57 | 54 | (508 | ) | — | (7 | ) | (15 | ) | — | (320 | ) | ||||||||||||||
Interest and investment loss impact | (26 | ) | — | — | — | 23 | — | — | — | (3 | ) | ||||||||||||||||
Income tax benefit impact | 221 | (21 | ) | (20 | ) | 190 | (9 | ) | 2 | 6 | (216 | ) | 153 | ||||||||||||||
After tax and noncontrolling interests impact | 208 | 36 | 34 | (318 | ) | 14 | (5 | ) | (9 | ) | (216 | ) | (256 | ) | |||||||||||||
Diluted earnings per share impact | $ | 1.84 | $ | 0.32 | $ | 0.30 | $ | (2.81 | ) | $ | 0.12 | $ | (0.04 | ) | $ | (0.08 | ) | $ | (1.91 | ) | $ | (2.40 | ) |
13 Weeks Ended August 2, 2014 | |||||||||||||||||||||
Adjustments | |||||||||||||||||||||
millions, except per share data | GAAP | Domestic Pension Expense | Domestic Closed Store Reserve, Store Impairments and Severance | Domestic Gain on Sales of Assets | Domestic Tax Matters | Sears Canada Segment | As Adjusted(2) | ||||||||||||||
Gross margin impact | $ | 1,742 | $ | — | $ | 10 | $ | — | $ | — | $ | (184 | ) | $ | 1,568 | ||||||
Selling and administrative impact | 2,118 | (23 | ) | (24 | ) | — | — | (205 | ) | 1,866 | |||||||||||
Depreciation and amortization impact | 152 | — | (1 | ) | — | — | (18 | ) | 133 | ||||||||||||
Impairment charges impact | 20 | — | (5 | ) | — | — | (15 | ) | — | ||||||||||||
Gain on sales of assets impact | (34 | ) | — | — | 10 | — | — | (24 | ) | ||||||||||||
Operating loss impact | (514 | ) | 23 | 40 | (10 | ) | — | 54 | (407 | ) | |||||||||||
Interest expense impact | (72 | ) | — | — | — | — | 2 | (70 | ) | ||||||||||||
Interest and investment income impact | 32 | — | — | — | — | (24 | ) | 8 | |||||||||||||
Other income impact | 5 | — | — | — | — | (5 | ) | — | |||||||||||||
Income tax expense impact | (32 | ) | (9 | ) | (15 | ) | 4 | 238 | (10 | ) | 176 | ||||||||||
Loss attributable to noncontrolling interests impact | 8 | — | — | — | — | (8 | ) | — | |||||||||||||
After tax and noncontrolling interests impact | (573 | ) | 14 | 25 | (6 | ) | 238 | 9 | (293 | ) | |||||||||||
Diluted loss per share impact | $ | (5.39 | ) | $ | 0.13 | $ | 0.24 | $ | (0.06 | ) | $ | 2.24 | $ | 0.08 | $ | (2.76 | ) |
Sears Holdings Corporation | ||||||||
Adjusted Earnings per Share | ||||||||
(Unaudited) | ||||||||
Amounts are Preliminary and Subject to Change |
26 Weeks Ended August 1, 2015 | |||||||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||||||
millions, except per share data | GAAP | Domestic Pension Expense | Domestic Closed Store Reserve, Store Impairments and Severance | Domestic Gain on Sales of Assets | Mark-to-Market Adjustments | Amortization of Deferred Seritage Gain | Other(1) | Domestic Tax Matters | As Adjusted | ||||||||||||||||||
Gross margin impact | $ | 2,953 | $ | — | $ | 11 | $ | — | $ | — | $ | (7 | ) | $ | (126 | ) | $ | — | $ | 2,831 | |||||||
Selling and administrative impact | 3,375 | (114 | ) | (26 | ) | — | — | — | (37 | ) | — | 3,198 | |||||||||||||||
Depreciation and amortization impact | 236 | — | (2 | ) | — | — | — | — | — | 234 | |||||||||||||||||
Impairment charges | 54 | — | (54 | ) | — | — | — | — | — | — | |||||||||||||||||
Gain on sales of assets impact | (633 | ) | — | — | 604 | — | — | — | — | (29 | ) | ||||||||||||||||
Operating loss impact | (79 | ) | 114 | 93 | (604 | ) | — | (7 | ) | (89 | ) | — | (572 | ) | |||||||||||||
Interest and investment loss impact | (44 | ) | — | — | — | 42 | — | — | — | (2 | ) | ||||||||||||||||
Income tax benefit impact | 203 | (43 | ) | (35 | ) | 226 | (16 | ) | 2 | 33 | (89 | ) | 281 | ||||||||||||||
After tax and noncontrolling interests impact | (95 | ) | 71 | 58 | (378 | ) | 26 | (5 | ) | (56 | ) | (89 | ) | (468 | ) | ||||||||||||
Diluted loss per share impact | $ | (0.89 | ) | $ | 0.67 | $ | 0.55 | $ | (3.55 | ) | $ | 0.24 | $ | (0.05 | ) | $ | (0.52 | ) | $ | (0.84 | ) | $ | (4.39 | ) |
26 Weeks Ended August 2, 2014 | ||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||
millions, except per share data | GAAP | Domestic Pension Expense | Domestic Closed Store Reserve, Store Impairments and Severance | Domestic Gain on Sales of Assets | Domestic Tax Matters | Sears Canada Segment | Lands' End Separation | As Adjusted(2) | ||||||||||||||||
Gross margin impact | $ | 3,570 | $ | — | $ | 17 | $ | — | $ | — | $ | (348 | ) | $ | (87 | ) | $ | 3,152 | ||||||
Selling and administrative impact | 4,207 | (45 | ) | (26 | ) | — | — | (431 | ) | (77 | ) | 3,628 | ||||||||||||
Depreciation and amortization impact | 307 | — | (1 | ) | — | — | (36 | ) | (3 | ) | 267 | |||||||||||||
Impairment charges impact | 25 | — | (10 | ) | — | — | (15 | ) | — | — | ||||||||||||||
Gain on sales of assets impact | (80 | ) | — | — | 23 | — | (1 | ) | — | (58 | ) | |||||||||||||
Operating loss impact | (889 | ) | 45 | 54 | (23 | ) | — | 135 | (7 | ) | (685 | ) | ||||||||||||
Interest expense impact | (143 | ) | — | — | — | — | 4 | — | (139 | ) | ||||||||||||||
Interest and investment income impact | 36 | — | — | — | — | (26 | ) | — | 10 | |||||||||||||||
Other income impact | 2 | — | — | — | — | (2 | ) | — | — | |||||||||||||||
Income tax expense impact | (29 | ) | (17 | ) | (20 | ) | 9 | 371 | (12 | ) | 3 | 305 | ||||||||||||
Loss attributable to noncontrolling interest impact | 48 | — | — | — | — | (48 | ) | — | — | |||||||||||||||
After tax and noncontrolling interest impact | (975 | ) | 28 | 34 | (14 | ) | 371 | 51 | (4 | ) | (509 | ) | ||||||||||||
Diluted loss per share impact | $ | (9.17 | ) | $ | 0.26 | $ | 0.32 | $ | (0.13 | ) | $ | 3.49 | $ | 0.48 | $ | (0.04 | ) | $ | (4.79 | ) |