Consolidated Statements of Income - 3Q 2005 (Unaudited) (Note 1)
(All amounts in millions except percentages and per share figures)
| |
13 Weeks Ended |
39 Weeks Ended |
| |
October 29,
2005 |
October 30,
2004 |
October 29,
2005 |
October 30,
2004 |
| |
| Net sales |
$5,785 |
$3,525 |
$13,049 |
$10,656 |
| |
| Cost of sales (Note 2) |
3,446 |
2,121 |
7,748 |
6,355 |
| |
| Percent to sales |
59.6% |
60.2% |
59.4% |
59.6% |
| |
| Gross margin |
2,339 |
1,404 |
5,301 |
4,301 |
| |
| Percent to sales |
40.4% |
39.8% |
40.6% |
40.4% |
| |
| Selling, general and administrative expenses (Note 3) |
(2,055) |
(1,229) |
(4,474) |
(3,664) |
| |
| Percent to sales |
(35.5%) |
(34.8%) |
(34.3%) |
(34.4%) |
| |
| May business integration and consolidation expenses (Note 4) |
(63) |
- |
(63) |
- |
| |
| Percent to sales |
(1.1%) |
- |
(.5%) |
- |
| |
| Gain on the sale of accounts receivable (Note 5) |
480 |
- |
480 |
- |
| |
| Percent to sales |
8.3% |
- |
3.7% |
- |
| |
| Operating income |
701 |
175 |
1,244 |
637 |
| |
| Percent to sales |
12.1% |
5.0% |
9.5% |
6.0% |
| |
| Interest expense - net (Note 6) |
(145) |
(55) |
(253) |
(234) |
| |
| Income from continuing operations before income taxes |
556 |
120 |
991 |
403 |
| |
| Federal, state and local income tax expense (Note 7) |
(123) |
(46) |
(287) |
(154) |
| |
| Income from continuing operations |
433 |
74 |
704 |
249 |
| |
| Income from discontinued operations, net of income tax effect |
3 |
- |
3 |
- |
| |
| Net Income |
$436 |
$74 |
$707 |
$249 |
| |
| Basic earnings per share: |
| Income from continuing operations |
$1.81 |
$.43 |
$3.65 |
$1.41 |
| Income from discontinued operations |
.01 |
- |
.01 |
- |
| Net income |
$1.82 |
$.43 |
$3.66 |
$1.41 |
| |
| Diluted earnings per share (Note 8): |
| Income from continuing operations |
$1.78 |
$.42 |
$3.57 |
$1.38 |
| Income from discontinued operations |
.01 |
- |
.01 |
- |
| Net income |
$1.79 |
$.42 |
$3.58 |
$1.38 |
| |
| Average common shares: |
| Basic |
239.3 |
172.0 |
193.1 |
177.2 |
| Diluted |
243.5 |
174.4 |
197.3 |
180.2 |
| |
| Depreciation and amortization expense |
$295 |
$178 |
$651 |
$533 |
Notes:
(1) Because of the seasonal nature of the retail business, the results of operations for the 13 and 39 weeks ended October 29, 2005 and October 30, 2004 (which do not include the Christmas season) are not necessarily indicative of such results for the fiscal year. The May Department Stores Company ("May") was acquired August 30, 2005. The results of operations of May have been included in Federated's results of operations from the date of acquisition. Certain reclassifications were made to prior period amounts to conform with the classifications of such amounts for the most recent period.
(2) Merchandise inventories are primarily valued at the lower of cost or market using the last-in, first-out (LIFO) retail inventory method. Application of this method did not impact cost of sales for the 13 and 39 weeks ended October 29, 2005 or October 30, 2004. For the 13 weeks ended October 30, 2004, cost of sales includes inventory valuation adjustments of $14 million related to the Macy's home store centralization. For the 39 weeks ended October 30, 2004, cost of sales includes inventory valuation adjustments of $31 million related to the Macy's home store centralization and the Burdines-Macy's consolidation.
(3) For the 13 weeks ended October 30, 2004, selling, general and administrative ("SG&A") expenses include $22 million of costs incurred in connection with the Macy's home store centralization, the Burdines-Macy's consolidation and other store closings. For the 39 weeks ended October 30, 2004, SG&A expenses include $55 million of costs incurred in connection with the Macy's home store centralization, the Burdines-Macy's consolidation and other store closings.
(4) Represents costs and expenses associated with the integration and consolidation of May's operations into Federated's operations. For the 13 and 39 weeks ended October 29, 2005, such costs primarily relate to impairment charges for certain Federated stores planned to be closed and amounted to $.16 and $.20 per diluted share, respectively.
(5) Represents the gain recognized on the sale of proprietary and non-proprietary credit card accounts receivable. For the 13 and 39 weeks ended October 29, 2005, the after-tax net gain amounted to $1.58 and $1.95 per diluted share, respectively.
(6) Interest expense for the 39 weeks ended October 30, 2004 includes $59 million of one-time costs, or 20 cents a diluted share, associated with the repurchase of $274 million of Federated's 8.5% senior notes due 2010.
(7) Federal, state and local income tax expense for the 13 and 39 weeks ended October 29, 2005 was reduced by approximately $85 million to recognize capital loss carryforwards realized as a result of the sale of credit card accounts receivable.
(8) For the 13 and 39 weeks ended October 30, 2004, store closing and consolidation costs and Macy's home store centralization costs (See notes 2 and 3) amounted to $.13 and $.30 per diluted share, respectively.
Download Excel spreadsheet
Go to top of page
Historical Data:
Consolidated Financial Statements: