Annual report pursuant to Section 13 and 15(d)

Real Estate and Other, Net

v3.3.1.900
Real Estate and Other, Net
12 Months Ended
Jan. 30, 2016
Real Estate and Other, Net [Abstract]  
Other Income and Other Expense Disclosure [Text Block]
Real Estate and Other, Net
 
Real estate and other consists of ongoing operating income from our real estate subsidiaries. Real estate and other also includes net gains from the sale of facilities and equipment that are no longer used in operations, asset impairments, accruals for certain litigation and other non-operating charges and credits. In addition, during the first quarter of 2014, we formed a joint venture to develop the excess property adjacent to our home office facility in Plano, Texas (Home Office Land Joint Venture) in which we contributed approximately 220 acres of excess property adjacent to our home office facility in Plano, Texas. The joint venture was formed to develop the contributed property and our proportional share of the joint venture's activities will be recorded in Real estate and other, net.

The composition of real estate and other, net was as follows:  
($ in millions)
 
2015
 
2014
 
2013
Net gain from sale of non-operating assets
 
$
(9
)
 
$
(25
)
 
$
(132
)
Investment income from Home Office Land Joint Venture
 
(41
)
 
(53
)
 

Net gain from sale of operating assets
 
(9
)
 
(92
)
 
(17
)
Store and other asset impairments
 
20

 
30

 
27

Other
 
42

 
(8
)
 
(33
)
Total expense/(income)
 
$
3

 
$
(148
)
 
$
(155
)

 
Net Gain from Sale of Non-operating Assets - Sale or Redemption of REIT Assets
In 2013, we sold 205,000 REIT units at an average price of $151.97 per share for a total price of $31 million, net of fees, and a realized net gain of $24 million.
  
Investment Income from Joint Ventures
In 2015, the Company had $41 million in income related to its proportional share of the net income in the Home Office Land Joint Venture and received an aggregate cash distribution of $36 million. In 2014, the Company had $53 million in income related to its proportional share of the net income in the Home Office Land Joint Venture and received an aggregate cash distribution of $58 million.

Other - Settlement of Class Action Lawsuit
During 2015, the Company accrued $50 million under the proposed settlement related to the pricing class action litigation. Pursuant to the settlement, which is subject to court approval, class members will have the option of selecting a cash payment or store credit. The amount of the payment or credit will depend on the total amount of certain merchandise purchased by each class member during the class period.