Annual report pursuant to Section 13 and 15(d)

Quarterly Results of Operations (Unaudited)

v3.3.1.900
Quarterly Results of Operations (Unaudited)
12 Months Ended
Jan. 30, 2016
Quarterly Financial Data [Abstract]  
Quarterly Results of Operations (Unaudited)
Quarterly Results of Operations (Unaudited)
 
The following is a summary of our quarterly unaudited consolidated results of operations for 2015 and 2014
2015
 
 
 
 
 
 
 
 
($ in millions, except EPS)
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
 
Total net sales
$
2,857

  
$
2,875

  
$
2,897

  
$
3,996

  
Gross margin
1,041

 
1,065

 
1,082

  
1,363

 
SG&A expenses
965

  
901

  
947

  
962

  
Restructuring and management transition(1)
22

 
17

 
14

 
31

 
Net income/(loss)(2)
(150
)
(4) 
(117
)
(4) 
(115
)
(4) 
(131
)

Diluted earnings/(loss) per share(3)
$
(0.49
)
(4) 
$
(0.38
)
(4) 
$
(0.38
)
(4) 
$
(0.43
)
 
2014
 
 
 
 
 
 
 
 
($ in millions, except EPS)
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
 
Total net sales
$
2,801

  
$
2,799

  
$
2,764

  
$
3,893

 
Gross margin
926

 
1,008

 
1,013

  
1,314


SG&A expenses
1,009

  
964

  
988

  
1,032

  
Restructuring and management transition(5)
22

 
5

 
12

 
48

 
Net income/(loss)(6) (7)
(341
)
 
(163
)
 
(178
)
 
(35
)
 
Diluted earnings/(loss) per share(3) (7)
$
(1.12
)
 
$
(0.53
)
 
$
(0.58
)
 
$
(0.11
)
 

(1)
Restructuring and management transition charges (Note 17) by quarter for 2015 consisted of the following:
($ in million)
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
Home office and stores
$
14

 
$
15

 
$
9

 
$
4

Management transition
6

 
1

 
3

 
18

Other
2

 
1

 
2

 
9

Total
$
22

 
$
17

 
$
14

 
$
31


 
(2)
The first, second, third and fourth quarters of 2015 contained increases to our tax valuation allowance of $44 million, $46 million, $41 million and $110 million, respectively. The first, second and third quarters of 2015 contained gains from non-operating assets sales (Note 18) of $2 million, $6 million and $1 million, respectively.
(3)
EPS is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in average quarterly shares outstanding.
(4)
Reflects the retrospective application of the change in our method of recognizing pension expense. See Note 3 of Notes to Consolidated Financial Statements for a discussion of the change and related impacts. The retrospective application of the change in recognizing pension expense increased net income/(loss) by $17 million in first quarter, $21 million in second quarter and $22 million in the third quarter and increased diluted earnings/(loss) per share by $0.06 in first quarter, $0.07 in second quarter and $0.07 in the third quarter.
(5)
Restructuring and management transition charges (Note 17) by quarter for 2014 consisted of the following:
($ in millions)
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
Home office and stores
$
12

 
$

 
$
3

 
$
30

Management transition
7

 
1

 
7

 
1

Other
3

 
4

 
2

 
17

Total
$
22

 
$
5

 
$
12

 
$
48



(6)
The first, second, third and fourth quarters of 2014 contained increases to our tax valuation allowance of $120 million, $28 million, $107 million, and $225 million, respectively. The first, second, third and fourth quarters of 2014 contained gains from non-operating assets sales (Note 18) of $12 million, $9 million, $2 million and $2 million, respectively. The fourth quarter of 2014 included $30 million of store impairments charges recorded in Real estate and other, net (Note 18).
(7)
Reflects the retrospective application of the change in our method of recognizing pension expense. See Note 3 of Notes to Consolidated Financial Statements for a discussion of the change and related impacts. The retrospective application of the change in recognizing pension expense increased net income/(loss) by $11 million in first quarter, $9 million in second quarter, $10 million in the third quarter and $24 million in the fourth quarter and increased diluted earnings/(loss) per share by $0.03 in first quarter, $0.03 in second quarter, $0.04 in the third quarter and $0.08 in the fourth quarter.