Annual report pursuant to Section 13 and 15(d)

Quarterly Results of Operations (Unaudited)

v2.4.0.8
Quarterly Results of Operations (Unaudited)
12 Months Ended
Feb. 01, 2014
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 2013 and 2012
2013
 
 
 
 
 
 
 
 
($ in millions, except EPS)
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
 
Total net sales
$
2,635

  
$
2,663

  
$
2,779

  
$
3,782

  
Gross margin
812

 
787

 
819

  
1,074

(1) 
SG&A expenses
1,078

  
1,026

  
1,006

  
1,004

  
Restructuring and management transition(2)
72

 
47

 
46

 
50

 
Net income/(loss)
(348
)
  
(586
)
(3) 
(489
)
(3) 
35

(3) 
Diluted earnings/(loss) per share(4)
$
(1.58
)
  
$
(2.66
)
  
$
(1.94
)
 
$
0.11

 
2012
 
 
 
 
 
 
 
 
($ in millions, except EPS)
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
 
Total net sales
$
3,152

  
$
3,022

  
$
2,927

  
$
3,884

(5) 
Gross margin
1,186

(6) 
1,004

(6) 
952

  
924


SG&A expenses
1,160

  
1,050

  
1,087

  
1,209

  
Restructuring and management transition(7)
76

 
159

 
34

 
29

 
Net income/(loss)
(163
)
  
(147
)
(8) 
(123
)
(9) 
(552
)
(10) 
Diluted earnings/(loss) per share(4)
$
(0.75
)
  
$
(0.67
)
  
$
(0.56
)
 
$
(2.51
)
 

(1)
Includes a negative impact of $72 million related to the discontinuation of brands that are not part of our go-forward merchandising strategy.
(2)
Restructuring and management transition charges (See Note 16) by quarter for 2013 consisted of the following:
($ in million)
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
Home office and stores
28

 
4

 
(6
)
 
22

Store fixtures
28

 
17

 
10

 

Management transition
16

 
13

 
3

 
5

Other

 
13

 
39

 
23

Total
$
72

 
$
47

 
$
46

 
$
50

 
(3)
The second and third quarters of 2013 contained increases to our tax valuation allowance of $218 million and $184 million, respectively and a decrease of $178 million to our valuation allowance in the fourth quarter. The second, third and fourth quarters of 2013 contained gains from non-operating assets sales (see Note 17) of $62 million, $24 million and $46 million, respectively. The fourth quarter of 2013 includes $12 million of store impairments charges and a $9 million impairment to our monet trade name recorded in Real estate and other, net (see Note 17) Additionally, during the fourth quarter of 2013 we recognized a tax benefit of $270 million from income related to actuarial gains included in other comprehensive income. This tax benefit was offset by tax expense recorded for such gains in other comprehensive income.
(4)
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. 
(5)
Sales for the 53rd week were $163 million.
(6)
The first and second quarters of 2012 include $53 million and $102 million, respectively, of markdowns related to the alignment of inventory with our prior strategy.
(7)
Restructuring and management transition charges (See Note 16) by quarter for 2012 consisted of the following:
($ in millions)
First Quarter
 
Second Quarter
 
Third Quarter
 
Fourth Quarter
Supply chain
$
6

 
$
10

 
$
3

 
$

Home office and stores
45

 
56

 
4

 
4

Software and systems

 
36

 

 

Store fixtures

 
42

 
18

 
18

Management transition
20

 
10

 
6

 
5

Other
5

 
5

 
3

 
2

Total
$
76

 
$
159

 
$
34

 
$
29


(8)
Includes a gain of $200 million related to the redemption of REIT units, net of fees, included in Real estate and other, net (see Note 17).
(9)
Includes a net gain of $197 million related to the sale of non-operating assets, net of fees, included in Real estate and other, net (see Note 17). 
(10)
Includes $26 million of store impairments charges and the write-off of $60 million of operating assets that were no longer being used in our operations recorded in Real estate and other, net (see Note 17).