Saks Fifth Avenue 2011 Annual Report Download - page 22

Download and view the complete annual report

Please find page 22 of the 2011 Saks Fifth Avenue annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 91

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91

DISCONTINUED OPERATIONS
As of January 31, 2009, the Company discontinued the operations of its CLL business, which consisted of 98
leased, mall-based specialty stores, targeting girls aged 4-12 years old. Discontinued operations include nominal
charges (income) for 2009 and 2010 from residual CLL store closing activities.
FINANCIAL PERFORMANCE SUMMARY
On a consolidated basis, total net sales and comparable store sales for the year ended January 28, 2012
increased 8.2% and 9.5%, respectively. The Company recorded income from continuing operations of $74.8
million, or $0.45 per share compared to income from continuing operations of $47.4 million, or $0.30 per share,
for the years ended January 28, 2012 and January 29, 2011, respectively. After recognition of the Company’s
after-tax gain from discontinued operations of $0.4 million, net income totaled $47.8 million, or $0.30 per share
for the year ended January 29, 2011.
The year ended January 28, 2012 included a net after-tax gain totaling $2.0 million or $0.01 per share, primarily
related to a $10.9 million or $0.05 per share gain related to the reversal of certain estimated state income tax
reserves deemed no longer necessary. This gain was partially offset by a net after-tax charge of $5.6 million or
$0.03 per share, primarily related to a pension and related benefit charge, a third-party receivable write-down,
severance and asset impairment charges. Additionally, the Company incurred a $3.0 million or $0.01 per share
charge related to store closings and a $0.3 million loss on debt extinguishment related to the early retirement
of approximately $1.9 million of senior notes during 2011.
The year ended January 29, 2011 included a net after-tax gain totaling $17.2 million or $0.11 per share,
primarily related to a $26.7 million or $0.17 per share gain related to the reversal of certain estimated income
tax reserves deemed no longer necessary due to the expiration of the statute of limitations. This gain was
partially offset by a net after-tax charge of $7.5 million or $0.05 per share, primarily related to store closings
and asset impairments and a $2.0 million or $0.01 per share non-cash pension charge related to excess lump
sum distributions during 2010.
The year ended January 30, 2010 included net after-tax charges totaling $10.4 million or $0.07 per share,
primarily related to $17.3 million or $0.12 per share of asset impairment charges incurred in the normal course
of business and a $3.1 million or $0.02 per share non-cash pension charge related to excess lump sum
distributions during 2009 primarily resulting from the Company’s 2009 reductions-in-force. The year ended
January 30, 2010 also included a net gain of $10.0 million or $0.07 per share, related to federal and state tax
adjustments. The net gain included income resulting from an increase in the state deferred tax rate, release of
tax reserves due to the expiration of the statute of limitations and reversal of a portion of the valuation
allowance against deferred tax assets.
The Company believes that an understanding of its reported financial condition and results of operations is not
complete without considering the effect of all other components of MD&A included herein.
20