Sears Holdings Reports Third Quarter 2016 Results

HOFFMAN ESTATES, Ill., Dec. 8. 2016 /PRNewswire/ -- Sears Holdings Corporation ("Holdings," "we," "us," "our," or the "Company")(NASDAQ: SHLD) today announced financial results for its third quarter ended October 29, 2016. As a supplement to this announcement, a presentation, pre-recorded conference and audio webcast are available at our website http://searsholdings.com/invest.

In summary, we reported a net loss attributable to Holdings' shareholders of $748 million ($6.99 loss per diluted share) for the third quarter of 2016 compared to a net loss attributable to Holdings' shareholders of $454 million ($4.26 loss per diluted share) for the prior year third quarter. Adjusted for significant items noted in our Adjusted Earnings Per Share tables, we would have reported a net loss attributable to Holdings' shareholders of $333 million ($3.11 loss per diluted share) for the third quarter of 2016 compared to a net loss attributable to Holdings' shareholders of $305 million ($2.86 loss per diluted share) in the prior year third quarter. Adjusted EBITDA was $(375) million in the third quarter of 2016, as compared to $(332) million in the prior year third quarter.

Edward S. Lampert, Holdings' Chairman and Chief Executive Officer, said, "We remain fully committed to restoring profitability to our Company and are taking actions such as reducing unprofitable stores, reducing space in stores we continue to operate (including through the Seritage lease arrangement), reducing investments in underperforming categories and improving gross margin performance and managing expenses relative to sales in key categories. While many observers have acknowledged the significant asset base of our Company, we understand the concerns related to our operating performance and are committed to transforming our Company through our Shop Your Way membership program and our Integrated Retail investments. At the same time, we will continue to explore options to recognize the inherent asset value in a manner that complements our transformation."

Highlights include:

  • A partnership with Citi Retail Services, Inc. to bring together the Sears MasterCard and Shop Your Way® offer. Starting November 1st, more than five million current Sears MasterCard holders whose cards are linked to the Shop Your Way® program earn more Shop Your Way® points at many of their favorite places and, in early 2017, the Sears MasterCard will evolve into a newly branded Shop Your Way® card;
  • A strategic relationship with Uber Technologies, Inc. that allows its drivers and riders to earn Shop Your Way® points on trips made with Uber, leveraging the scale of Shop Your Way®, its tens of millions of members, and the footprint of Sears Auto Centers to provide unique benefits for drivers and riders; and
  • Improvements in our Home Services business and expansion of its capabilities including our home warranty offerings.

Jason M. Hollar, Holdings' Chief Financial Officer, said, "We will continue to take actions to generate liquidity, adjust our overall capital structure, and manage our business while meeting all of our financial obligations. Actions may include additional expense reductions, financing transactions and asset monetization including exploring alternatives for our Kenmore®, Craftsman® and DieHard® brands, our Sears Home Services business and our real estate portfolio."

Financial Results

Revenues decreased approximately $721 million to $5.0 billion for the quarter ended October 29, 2016, compared to revenues of $5.8 billion for the quarter ended October 31, 2015. The year-over-year decline in revenues was primarily driven by having fewer Kmart and Sears Full-line stores in operation, which accounted for $323 million of the decline, as well as a 7.4% decline in comparable store sales during the quarter, which accounted for $304 million of the revenue decline.

At Kmart, comparable store sales decreased 4.4%. While we experienced an overall comparable store sales decline in our Kmart segment driven by declines in the grocery & household, consumer electronics and pharmacy categories, we are encouraged by the comparable store sales increases experienced in several categories this quarter, including apparel, jewelry and outdoor living. Sears Domestic comparable store sales decreased 10.0% during the third quarter of 2016, primarily driven by decreases in the home appliances, apparel and consumer electronics categories.

During the third quarter, gross margin decreased $300 million compared to the prior year third quarter due to the above noted decline in sales, as well as a decline in our gross margin rate in both the Kmart and Sears Domestic segments. The decline in margin rate in both segments was primarily driven by a decline in gross margin performance in the apparel business, as well as an overall increase in markdowns.

Selling and administrative expenses decreased $87 million in the third quarter of 2016 compared to the prior year quarter. Excluding significant items noted in our Adjusted Earnings Per Share tables, selling and administrative expenses declined $224 million, primarily due to a decrease in payroll expense. In addition, advertising expense declined as we shifted away from traditional advertising to the use of Shop Your Way® points awarded to members, the expense for which is included in gross margin.

Financial Position

The Company's cash balances were $258 million at October 29, 2016 compared with $238 million at January 30, 2016. Short-term borrowings totaled $618 million at the end of the third quarter of 2016 compared to $797 million at January 30, 2016.

Merchandise inventories were $5.0 billion at October 29, 2016, compared to $6.2 billion at October 31, 2015, while merchandise payables were $1.6 billion and $2.3 billion at October 29, 2016 and October 31, 2015, respectively.

At October 29, 2016, we had utilized approximately $1.0 billion of our $1.971 billion revolving credit facility due in 2020 (consisting of $370 million of borrowings and $660 million of letters of credit outstanding). The amount available to borrow under our credit facility was approximately $174 million, which reflects the effect of our springing fixed charge coverage ratio covenant and the borrowing base limitation in our revolving credit facility, which varies primarily based on our overall inventory and receivables balances.

Total long-term debt (including current portion of long-term debt and capital lease obligations) was $3.7 billion and $2.2 billion at October 29, 2016 and January 30, 2016, respectively.

Update on Strategic Initiatives

On May 26, 2016, we announced our intention to explore alternatives for our Kenmore®, Craftsman® and DieHard® brands and our Sears Home Services business by evaluating potential partnerships or other transactions that could expand distribution of our brands and service offerings to realize significant growth. We continue to evaluate opportunities for these businesses. There can be no assurance that we will complete one or more transactions, and we also intend to take actions on our own that present the opportunity to improve the economics of these brands and business, including potential externalization through non-Sears Holdings channels.

Adjusted EBITDA

In addition to our net loss attributable to Sears Holdings' shareholders determined in accordance with Generally Accepted Accounting Principles ("GAAP"), for purposes of evaluating operating performance, we use Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") and Adjusted Loss Per Share ("Adjusted EPS"), which are non-GAAP measures. The tables attached to this press release provide a reconciliation of GAAP to as adjusted amounts. We believe that our use of Adjusted EBITDA and Adjusted EPS provides an appropriate measure for investors to use in assessing our performance across periods, given that these measures provide adjustments for certain significant items which may vary significantly from period to period, improving the comparability of year-to-year results and is therefore representative of our ongoing performance. Therefore, we have adjusted our results for them to make our statements more useful and comparable. However, we do not, and do not recommend that you, solely use Adjusted EBITDA or Adjusted EPS to assess our financial and earnings performance. We also use, and recommend that you use, diluted loss per share in addition to Adjusted EPS in assessing our earnings performance.

As a result of the Seritage and JV transactions, Adjusted EBITDA for the third quarter of 2016 and 2015 included additional rent expense of approximately $48 million and $52 million, respectively, while the first nine months of 2016 and 2015 included additional rent expense of approximately $150 million and $78 million, respectively. Due to the structure of the leases, we expect that our cash rent obligations to Seritage and the joint venture partners will decline, over time, as space in these stores is recaptured. From the inception of the Seritage transaction to date, we have received recapture notices on 17 properties, which is estimated to reduce the rent expense by approximately $10 million on an annual basis. We have also exercised our right to terminate the lease on 17 properties, which is estimated to reduce rent expense by approximately $6 million on an annual basis.

Forward-Looking Statements

Results are unaudited. This press release contains forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements about our transformation through our integrated retail strategy, our plans to redeploy and reconfigure our assets, our liquidity, our ability to successfully achieve our plans to generate liquidity through potential transactions or otherwise, our intention to explore potential partnerships or other transactions involving our Kenmore®, Craftsman® and DieHard® brands and our Sears Home Services business, and other statements that describe the Company's plans. Whenever used, words such as "will," "expect," and other terms of similar meaning are intended to identify such forward-looking statements. Forward-looking statements, including these, are based on the current beliefs and expectations of our management and are subject to significant risks, assumptions and uncertainties, many of which are beyond the Company's control, that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Detailed descriptions of risks, uncertainties and factors relating to Sears Holdings are discussed in our most recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. While we believe that our forecasts and assumptions are reasonable, we caution that actual results may differ materially. We intend the forward-looking statements to speak only as of the time made and do not undertake to update or revise them as more information becomes available, except as required by law.

About Sears Holdings Corporation

Sears Holdings Corporation (NASDAQ: SHLD) is a leading integrated retailer focused on seamlessly connecting the digital and physical shopping experiences to serve our members - wherever, whenever and however they want to shop. Sears Holdings is home to Shop Your Way®, a social shopping platform offering members rewards for shopping at Sears and Kmart, as well as with other retail partners across categories important to them. The Company operates through its subsidiaries, including Sears, Roebuck and Co. and Kmart Corporation, with full-line and specialty retail stores across the United States. For more information, visit www.searsholdings.com.

NEWS MEDIA CONTACT:
Sears Holdings Public Relations
(847) 286-8371

 

Sears Holdings Corporation

Condensed Consolidated Statements of Operations

(Unaudited)









Amounts are Preliminary and Subject to Change









13 Weeks Ended


39 Weeks Ended

millions, except per share data

October 29, 
 2016


October 31, 
 2015


October 29, 
 2016


October 31,
2015

REVENUES








Merchandise sales and services

$

5,029



$

5,750



$

16,086



$

17,843


COSTS AND EXPENSES








Cost of sales, buying and occupancy

4,067



4,488



12,687



13,628


Gross margin dollars

962



1,262



3,399



4,215


Gross margin rate

19.1

%


21.9

%


21.1

%


23.6

%

Selling and administrative

1,543



1,630



4,530



5,005


Selling and administrative expense as a percentage of total revenues

30.7

%


28.3

%


28.2

%


28.1

%

Depreciation and amortization

91



94



278



330


Impairment charges

3



17



18



71


Gain on sales of assets

(51)



(97)



(166)



(730)


Total costs and expenses

5,653



6,132



17,347



18,304


Operating loss

(624)



(382)



(1,261)



(461)


Interest expense

(105)



(74)



(289)



(249)


Interest and investment income (loss)

(8)



17



(25)



(27)


Loss before income taxes

(737)



(439)



(1,575)



(737)


Income tax (expense) benefit

(11)



(14)



(39)



189


Net loss

(748)



(453)



(1,614)



(548)


Income attributable to noncontrolling interests



(1)





(1)


NET LOSS ATTRIBUTABLE TO HOLDINGS' SHAREHOLDERS

$

(748)



$

(454)



$

(1,614)



$

(549)


NET LOSS PER COMMON SHARE ATTRIBUTABLE TO HOLDINGS' SHAREHOLDERS








Diluted loss per share

$

(6.99)



$

(4.26)



$

(15.10)



$

(5.15)


Diluted weighted average common shares outstanding

107.0



106.6



106.9



106.5


 

Sears Holdings Corporation

 Condensed Consolidated Balance Sheets

(Unaudited)








Amounts are Preliminary and Subject to Change














millions


October 29,  
2016


October 31,  
2015


January 30,  
2016

ASSETS







Current assets







Cash and cash equivalents


$

258



$

294



$

238


Accounts receivable


372



475



419


Merchandise inventories


5,032



6,208



5,172


Prepaid expenses and other current assets


304



242



216


Total current assets


5,966



7,219



6,045


Property and equipment (net of accumulated depreciation and amortization of $2,886, $2,925 and $2,960)


2,392



2,668



2,631


Goodwill


269



269



269


Trade names and other intangible assets


1,904



2,090



1,909


Other assets


334



510



483


TOTAL ASSETS


$

10,865



$

12,756



$

11,337


LIABILITIES







Current liabilities







Short-term borrowings


$

618



$

686



$

797


Current portion of long-term debt and capitalized lease obligations


594



71



71


Merchandise payables


1,556



2,295



1,574


Other current liabilities


1,848



1,927



1,925


Unearned revenues


759



793



787


Other taxes


355



324



284


Total current liabilities


5,730



6,096



5,438


Long-term debt and capitalized lease obligations


3,087



2,111



2,108


Pension and postretirement benefits


1,997



2,133



2,206


Deferred gain on sale-leaseback


656



775



753


Sale-leaseback financing obligation


164



164



164


Other long-term liabilities


1,716



1,811



1,731


Long-term deferred tax liabilities


890



959



893


Total Liabilities


14,240



14,049



13,293


DEFICIT







   Total Deficit


(3,375)



(1,293)



(1,956)


   TOTAL LIABILITIES AND DEFICIT


$

10,865



$

12,756



$

11,337









Total common shares outstanding


107.0



106.6



106.7


 

Sears Holdings Corporation

Segment Results

(Unaudited)







Amounts are Preliminary and Subject to Change













13 Weeks Ended October 29, 2016

millions, except store data

Kmart


Sears Domestic


Sears Holdings

Merchandise sales and services

$

1,888



$

3,141



$

5,029








Cost of sales, buying and occupancy

1,605



2,462



4,067


Gross margin dollars

283



679



962


Gross margin rate

15.0

%


21.6

%


19.1

%







Selling and administrative

555



988



1,543


Selling and administrative expense as a percentage of total revenues

29.4

%


31.5

%


30.7

%

Depreciation and amortization

17



74



91


Impairment charges

3





3


Gain on sales of assets

(30)



(21)



(51)


           Total costs and expenses

2,150



3,503



5,653


Operating loss

$

(262)



$

(362)



$

(624)








Number of:






  Kmart Stores

801





801


  Full-Line Stores



676



676


  Specialty Stores



26



26


  Total Stores

801



702



1,503















13 Weeks Ended October 31, 2015

millions, except store data

 Kmart


Sears Domestic


Sears Holdings

Merchandise sales and services

$

2,247



$

3,503



$

5,750








Cost of sales, buying and occupancy

1,774



2,714



4,488


Gross margin dollars

473



789



1,262


Gross margin rate

21.1

%


22.5

%


21.9

%







Selling and administrative

585



1,045



1,630


Selling and administrative expense as a percentage of total revenues

26.0

%


29.8

%


28.3

%

Depreciation and amortization

17



77



94


Impairment charges

10



7



17


Gain on sales of assets

(12)



(85)



(97)


           Total costs and expenses

2,374



3,758



6,132


Operating loss

$

(127)



$

(255)



$

(382)








Number of:






  Kmart Stores

952





952


  Full-Line Stores



708



708


  Specialty Stores



27



27


  Total Stores

952



735



1,687








 

Sears Holdings Corporation

Segment Results

(Unaudited)







Amounts are Preliminary and Subject to Change













39 Weeks Ended October 29, 2016

millions, except store data

Kmart


Sears Domestic


Sears Holdings

Merchandise sales and services

$

6,248



$

9,838



$

16,086








Cost of sales, buying and occupancy

5,100



7,587



12,687


Gross margin dollars

1,148



2,251



3,399


Gross margin rate

18.4

%


22.9

%


21.1

%







Selling and administrative

1,597



2,933



4,530


Selling and administrative expense as a percentage of total revenues

25.6

%


29.8

%


28.2

%

Depreciation and amortization

51



227



278


Impairment charges

7



11



18


Gain on sales of assets

(120)



(46)



(166)


           Total costs and expenses

6,635



10,712



17,347


Operating loss

$

(387)



$

(874)



$

(1,261)








Number of:






  Kmart Stores

801





801


  Full-Line Stores



676



676


  Specialty Stores



26



26


  Total Stores

801



702



1,503















39 Weeks Ended October 31, 2015

millions, except store data

 Kmart


Sears Domestic


Sears Holdings

Merchandise sales and services

$

7,062



$

10,781



$

17,843








Cost of sales, buying and occupancy

5,562



8,066



13,628


Gross margin dollars

1,500



2,715



4,215


Gross margin rate

21.2

%


25.2

%


23.6

%







Selling and administrative

1,802



3,203



5,005


Selling and administrative expense as a percentage of total revenues

25.5

%


29.7

%


28.1

%

Depreciation and amortization

56



274



330


Impairment charges

12



59



71


Gain on sales of assets

(173)



(557)



(730)


           Total costs and expenses

7,259



11,045



18,304


Operating loss

$

(197)



$

(264)



$

(461)








Number of:






  Kmart Stores

952





952


  Full-Line Stores



708



708


  Specialty Stores



27



27


  Total Stores

952



735



1,687








 

Sears Holdings Corporation

Adjusted EBITDA

(Unaudited)







Amounts are Preliminary and Subject to Change







13 Weeks Ended


39 Weeks Ended

millions

October 29, 
 2016


October 31, 
 2015


October 29, 
 2016


October 31, 
 2015

Net loss attributable to Holdings per statement of operations

$

(748)



$

(454)



$

(1,614)



$

(549)


Income attributable to noncontrolling interests



1





1


Income tax expense (benefit)

11



14



39



(189)


Interest expense

105



74



289



249


Interest and investment (income) loss

8



(17)



25



27


Operating loss

(624)



(382)



(1,261)



(461)


Depreciation and amortization

91



94



278



330


Gain on sales of assets

(51)



(97)



(166)



(730)


Before excluded items

(584)



(385)



(1,149)



(861)










Closed store reserve and severance

113



(1)



182



36


Pension expense

72



58



216



172


Other(1)

43



2



52



(87)


Amortization of deferred Seritage gain

(22)



(23)



(66)



(30)


Impairment charges

3



17



18



71


Adjusted EBITDA

$

(375)



$

(332)



$

(747)



$

(699)




(1)

The 13- and 39- week periods ended October 29, 2016 consisted of expenses associated with legal matters, transaction costs associated with strategic initiatives and other expenses, while the 13- and 39- week periods ended October 31, 2015 consisted of one-time credits from vendors, expenses associated with legal matters, transactions costs associated with strategic initiatives and other expenses.

 

Sears Holdings Corporation

Adjusted EBITDA

(Unaudited)









Amounts are Preliminary and Subject to Change









13 Weeks Ended


October 29, 2016


October 31, 2015

millions

Kmart

Sears Domestic

Sears Holdings


Kmart

Sears Domestic

Sears Holdings

Operating loss per statement of operations

$

(262)


$

(362)


$

(624)



$

(127)


$

(255)


$

(382)


Depreciation and amortization

17


74


91



17


77


94


Gain on sales of assets

(30)


(21)


(51)



(12)


(85)


(97)


Before excluded items

(275)


(309)


(584)



(122)


(263)


(385)










Closed store reserve and severance

107


6


113



1


(2)


(1)


Pension expense


72


72




58


58


Other(1)


43


43



1


1


2


Amortization of deferred Seritage gain

(4)


(18)


(22)



(5)


(18)


(23)


Impairment charges

3



3



10


7


17


Adjusted EBITDA

$

(169)


$

(206)


$

(375)



$

(115)


$

(217)


$

(332)


% to revenues

(9.0)

%

(6.6)

%

(7.5)

%


(5.1)

%

(6.2)

%

(5.8)

%




39 Weeks Ended


October 29, 2016


October 31, 2015

millions

Kmart

Sears Domestic

Sears Holdings


Kmart

Sears Domestic

Sears Holdings

Operating loss per statement of operations

$

(387)


$

(874)


$

(1,261)



$

(197)


$

(264)


$

(461)


Depreciation and amortization

51


227


278



56


274


330


Gain on sales of assets

(120)


(46)


(166)



(173)


(557)


(730)


Before excluded items

(456)


(693)


(1,149)



(314)


(547)


(861)










Closed store reserve and severance

159


23


182



42


(6)


36


Pension expense


216


216




172


172


Other(1)

8


44


52



9


(96)


(87)


Amortization of deferred Seritage gain

(13)


(53)


(66)



(6)


(24)


(30)


Impairment charges

7


11


18



12


59


71


Adjusted EBITDA

$

(295)


$

(452)


$

(747)



$

(257)


$

(442)


$

(699)


% to revenues

(4.7)

%

(4.6)

%

(4.6)

%


(3.6)

%

(4.1)

%

(3.9)

%



(1)

The 13- and 39- week periods ended October 29, 2016 consisted of expenses associated with legal matters, transaction costs associated with strategic initiatives and other expenses, while the 13- and 39- week periods ended October 31, 2015 consisted of one-time credits from vendors, expenses associated with legal matters, transactions costs associated with strategic initiatives and other expenses.

 

Sears Holdings Corporation

Adjusted Earnings per Share

(Unaudited)


Amounts are Preliminary and Subject to Change



13 Weeks Ended October 29, 2016



Adjustments


millions, except per share data

GAAP

Pension Expense

Closed Store Reserve, Store Impairments and Severance

Gain on Sales of Assets

Mark-to-Market Adjustments

Amortization of Deferred Seritage Gain

Other(1)

Tax Matters

As
Adjusted

Gross margin impact

$

962


$


$

38


$


$


$

(22)


$


$


$

978


Selling and administrative impact

1,543


(72)


(75)





(43)



1,353


Depreciation and amortization impact

91



(2)







89


Impairment charges impact

3



(3)








Gain on sales of assets impact

(51)




16






(35)


Operating loss impact

(624)


72


118


(16)



(22)


43



(429)


Interest and investment loss impact

(8)





9





1


Income tax expense impact

(11)


(27)


(44)


6


(3)


8


(16)


287


200


After tax and noncontrolling interests impact

(748)


45


74


(10)


6


(14)


27


287


(333)


Diluted loss per share impact

$

(6.99)


$

0.42


$

0.69


$

(0.09)


$

0.06


$

(0.13)


$

0.25


$

2.68


$

(3.11)




(1)

Consists of expenses associated with legal matters, transaction costs associated with strategic initiatives and other expenses.

 


13 Weeks Ended October 31, 2015



Adjustments


millions, except per share data

GAAP

Pension
Expense

Closed Store Reserve, Store Impairments and Severance

Gain on Sales of Assets

Mark-to-Market Adjustments

Amortization of Deferred Seritage Gain

Other(1)

Tax Matters

As Adjusted

Gross margin impact

$

1,262


$


$

6


$


$


$

(23)


$


$


$

1,245


Selling and administrative impact

1,630


(58)


7





(2)



1,577


Depreciation and amortization impact

94









94


Impairment charges impact

17



(17)








Gain on sales of assets impact

(97)




83






(14)


Operating loss impact

(382)


58


16


(83)



(23)


2



(412)


Interest and investment income impact

17





(17)






Income tax expense impact

(14)


(22)


(6)


31


6


9


(1)


179


182


After tax and noncontrolling interests impact

(454)


36


10


(52)


(11)


(14)


1


179


(305)


Diluted loss per share impact

$

(4.26)


$

0.34


$

0.09


$

(0.49)


$

(0.10)


$

(0.13)


$

0.01


$

1.68


$

(2.86)




(1)

Consists of transaction costs associated with strategic initiatives, expenses associated with legal matters and other expenses.

 

Sears Holdings Corporation

Adjusted Earnings per Share

(Unaudited)


Amounts are Preliminary and Subject to Change



39 Weeks Ended October 29, 2016



Adjustments


millions, except per share data

GAAP

Pension Expense

Closed Store Reserve, Store Impairments and Severance

Gain on Sales of Assets

Mark-to-Market Adjustments

Amortization of Deferred Seritage Gain

Other(1)

Tax Matters

As
Adjusted

Gross margin impact

$

3,399


$


$

102


$


$


$

(66)


$


$


$

3,435


Selling and administrative impact

4,530


(216)


(80)





(52)



4,182


Depreciation and amortization impact

278



(7)







271


Impairment charges

18



(18)








Gain on sales of assets impact

(166)




63






(103)


Operating loss impact

(1,261)


216


207


(63)



(66)


52



(915)


Interest and investment loss impact

(25)





29





4


Income tax expense impact

(39)


(81)


(78)


24


(11)


25


(20)


630


450


After tax and noncontrolling interests impact

(1,614)


135


129


(39)


18


(41)


32


630


(750)


Diluted loss per share impact

$

(15.10)


$

1.26


$

1.21


$

(0.36)


$

0.17


$

(0.39)


$

0.30


$

5.89


$

(7.02)




(1)

Consists of expenses associated with legal matters, transaction costs associated with strategic initiatives and other expenses.

 


39 Weeks Ended October 31, 2015



Adjustments


millions, except per share data

GAAP

Pension
Expense

Closed Store Reserve, Store Impairments and Severance

Gain on Sales of Assets

Mark-to-Market Adjustments

Amortization of Deferred Seritage Gain

Other(1)

Tax Matters

As Adjusted

Gross margin impact

$

4,215


$


$

17


$


$


$

(30)


$

(126)


$


$

4,076


Selling and administrative impact

5,005


(172)


(19)





(39)



4,775


Depreciation and amortization impact

330



(2)







328


Impairment charges impact

71



(71)








Gain on sales of assets impact

(730)




687






(43)


Operating loss impact

(461)


172


109


(687)



(30)


(87)



(984)


Interest and investment loss impact

(27)





25





(2)


Income tax benefit impact

189


(65)


(41)


258


(9)


11


33


87


463


After tax and noncontrolling interests impact

(549)


107


68


(429)


16


(19)


(54)


87


(773)


Diluted loss per share impact

$

(5.15)


$

1.00


$

0.64


$

(4.03)


$

0.15


$

(0.18)


$

(0.51)


$

0.82


$

(7.26)




(1)

Consists of one-time credits from vendors, transaction costs associated with strategic initiatives, expenses associated with legal matters, and other expenses.

 

SOURCE Sears Holdings Corporation








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