Annual report pursuant to Section 13 and 15(d)

Real Estate and Other, Net

v3.8.0.1
Real Estate and Other, Net
12 Months Ended
Feb. 03, 2018
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)
 
2017
 
2016
 
2015
Net gain from sale of non-operating assets
 
$

 
$
(5
)
 
$
(9
)
Investment income from Home Office Land Joint Venture
 
(31
)
 
(28
)
 
(41
)
Net gain from sale of operating assets
 
(119
)
 
(73
)
 
(9
)
Store and other asset impairments
 

 

 
20

Other
 
4

 
(5
)
 
42

Total expense/(income)
 
$
(146
)
 
$
(111
)
 
$
3


 
Investment Income from Joint Ventures
In 2017, the Company had $31 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 $40 million. In 2016, the Company had $28 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 $44 million.




Net Gain from Sale of Operating Assets
In 2017, we completed the sale of our Buena Park, California distribution facility for a net sale price of $131 million and recorded a net gain of $111 million. In 2016, the Company sold excess land adjacent to its home office for approximately $80 million and recognized an approximate $62 million gain.
Other - Settlement of Class Action Lawsuit
During 2015, the Company accrued $50 million for the proposed settlement related to a pricing class action lawsuit. Pursuant to the settlement, the Company paid $25 million in cash to certain class members and issued $25 million of store credit to the remainder of the class members.