(Mark
One)
|
þ
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
|
New
York
|
13-3513936
|
(State
or Other Jurisdiction of Incorporation or Organization)
|
(I.R.S.
Employer Identification No.)
|
Large
accelerated filer þ
|
Accelerated
filer o
|
Non-accelerated
filer o
|
Smaller
reporting company o
|
Page
|
|||||
Part
I.
|
Financial
Information
|
||||
|
Item
1.
|
|
Financial
Statements
|
||
Condensed
Consolidated Balance Sheets
|
3
|
||||
Condensed
Consolidated Statements of Operations
|
4
|
||||
Condensed
Consolidated Statements of Comprehensive (Loss) Income
|
5
|
||||
Condensed
Consolidated Statements of Cash Flows
|
6
|
||||
Notes
to Condensed Consolidated Financial Statements
|
7
|
||||
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
14
|
|||
Item
4.
|
Controls
and Procedures
|
19
|
|||
Part
II.
|
Other
Information
|
||||
Item
1.
|
Legal
Proceedings
|
19
|
|||
Item
1A.
|
Risk
Factors
|
20
|
|||
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
20
|
|||
Item
6.
|
Exhibits
|
20
|
|||
Signature
|
21
|
||||
Index
to Exhibits
|
22
|
July 31,
|
August 1,
|
January 30,
|
||||||||||
2010
|
2009
|
2010
|
||||||||||
(Unaudited)
|
(Unaudited)
|
*
|
||||||||||
ASSETS
|
||||||||||||
Current
assets
|
||||||||||||
Cash
and cash equivalents
|
$ | 512 | $ | 402 | $ | 582 | ||||||
Short-term
investments
|
7 | 13 | 7 | |||||||||
Merchandise
inventories
|
1,219 | 1,284 | 1,037 | |||||||||
Other
current assets
|
161 | 211 | 146 | |||||||||
1,899 | 1,910 | 1,772 | ||||||||||
Property
and equipment, net
|
376 | 433 | 387 | |||||||||
Deferred
taxes
|
351 | 366 | 362 | |||||||||
Goodwill
|
144 | 145 | 145 | |||||||||
Other
intangibles and other assets
|
143 | 161 | 150 | |||||||||
$ | 2,913 | $ | 3,015 | $ | 2,816 | |||||||
LIABILITIES AND SHAREHOLDERS’
EQUITY
|
||||||||||||
Current
liabilities
|
||||||||||||
Accounts
payable
|
$ | 345 | $ | 322 | $ | 215 | ||||||
Accrued
expenses and other current liabilities
|
236 | 191 | 218 | |||||||||
581 | 513 | 433 | ||||||||||
Long-term
debt
|
137 | 138 | 138 | |||||||||
Other
liabilities
|
279 | 387 | 297 | |||||||||
997 | 1,038 | 868 | ||||||||||
Shareholders’
equity
|
||||||||||||
Common
stock and paid-in capital: 161,843,666, 160,614,691 and 161,267,025
shares, respectively
|
718 | 702 | 709 | |||||||||
Retained
earnings
|
1,548 | 1,565 | 1,535 | |||||||||
Accumulated
other comprehensive loss
|
(228 | ) | (187 | ) | (193 | ) | ||||||
Less:
Treasury stock at cost: 6,184,542, 4,709,020, and 4,726,237 shares,
respectively
|
(122 | ) | (103 | ) | (103 | ) | ||||||
Total
shareholders’ equity
|
1,916 | 1,977 | 1,948 | |||||||||
$ | 2,913 | $ | 3,015 | $ | 2,816 |
See
Accompanying Notes to Condensed Consolidated Financial
Statements.
|
*
The balance sheet at January 30, 2010 has been derived from the previously
reported audited financial statements at that date, but does not include
all of the information and footnotes required by U.S. generally accepted
accounting principles for complete financial statements. For further
information, refer to the consolidated financial statements and footnotes
thereto included in the Company’s Annual Report on Form 10-K for the year
ended January 30, 2010.
|
Thirteen weeks ended
|
Twenty-six weeks ended
|
|||||||||||||||
July 31,
|
August 1,
|
July 31,
|
August 1,
|
|||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Sales
|
$ | 1,096 | $ | 1,099 | $ | 2,377 | $ | 2,315 | ||||||||
Costs
and Expenses
|
||||||||||||||||
Cost
of sales
|
791 | 819 | 1,679 | 1,679 | ||||||||||||
Selling,
general and administrative expenses
|
268 | 252 | 548 | 530 | ||||||||||||
Depreciation
and amortization
|
26 | 28 | 52 | 56 | ||||||||||||
Interest
expense, net
|
2 | 3 | 5 | 5 | ||||||||||||
Other
income
|
(1 | ) | (1 | ) | (1 | ) | (2 | ) | ||||||||
1,086 | 1,101 | 2,283 | 2,268 | |||||||||||||
Income
(loss) from continuing operations before income taxes
|
10 | (2 | ) | 94 | 47 | |||||||||||
Income
tax expense (benefit)
|
4 | (1 | ) | 34 | 17 | |||||||||||
Income
(loss) from continuing operations
|
6 | (1 | ) | 60 | 30 | |||||||||||
Income
from disposal of discontinued operations, net of tax
|
— | 1 | — | 1 | ||||||||||||
Net
income
|
$ | 6 | $ | — | $ | 60 | $ | 31 | ||||||||
Basic
earnings per share:
|
||||||||||||||||
Net
income
|
$ | 0.04 | $ | — | $ | 0.39 | $ | 0.20 | ||||||||
Weighted-average
common shares outstanding
|
156.1 | 155.9 | 156.3 | 155.6 | ||||||||||||
Diluted
earnings per share:
|
||||||||||||||||
Net
income
|
$ | 0.04 | $ | — | $ | 0.38 | $ | 0.20 | ||||||||
Weighted-average
common shares assuming dilution
|
156.9 | 155.9 | 157.1 | 155.8 |
Thirteen weeks ended
|
Twenty-six weeks ended
|
|||||||||||||||
July 31,
|
August 1,
|
July 31,
|
August 1,
|
|||||||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||||||
Net
income
|
$ | 6 | $ | — | $ | 60 | $ | 31 | ||||||||
Other
comprehensive income (loss), net of tax
|
||||||||||||||||
Foreign
currency translation adjustments arising during the period
|
(14 | ) | 47 | (37 | ) | 62 | ||||||||||
Pension
and postretirement plan adjustments
|
2 | 1 | 4 | 2 | ||||||||||||
Change
in fair value of derivatives
|
(1 | ) | (1 | ) | (1 | ) | (2 | ) | ||||||||
Unrealized
gain on available-for-sale security
|
— | 2 | — | 2 | ||||||||||||
Comprehensive
(loss) income
|
$ | (7 | ) | $ | 49 | $ | 26 | $ | 95 |
Twenty-six weeks ended
|
||||||||
July 31,
|
August 1,
|
|||||||
2010
|
2009
|
|||||||
From
Operating Activities:
|
||||||||
Net
income
|
$ | 60 | $ | 31 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Income
from disposal of discontinued operations, net
|
— | (1 | ) | |||||
Depreciation
and amortization
|
52 | 56 | ||||||
Share-based
compensation expense
|
7 | 5 | ||||||
Change
in assets and liabilities:
|
||||||||
Merchandise
inventories
|
(193 | ) | (138 | ) | ||||
Accounts
payable
|
132 | 129 | ||||||
Other
accruals
|
27 | (43 | ) | |||||
Qualified
pension plan contributions
|
(2 | ) | (11 | ) | ||||
Gain
on termination of interest rate swaps
|
— | 19 | ||||||
Other,
net
|
(20 | ) | 36 | |||||
Net
cash provided by operating activities from continuing
operations
|
63 | 83 | ||||||
From
Investing Activities:
|
||||||||
Gain
from insurance recoveries
|
— | 1 | ||||||
Short-term
investment redemptions
|
— | 10 | ||||||
Capital
expenditures
|
(51 | ) | (47 | ) | ||||
Net
cash used in investing activities from continuing
operations
|
(51 | ) | (36 | ) | ||||
From
Financing Activities:
|
||||||||
Reduction
in long-term debt
|
— | (3 | ) | |||||
Issuance
of common stock
|
1 | 1 | ||||||
Dividends
paid
|
(47 | ) | (47 | ) | ||||
Treasury
stock issued under employee stock plan
|
3 | — | ||||||
Purchase
of treasury shares
|
(20 | ) | — | |||||
Net
cash used in financing activities from continuing
operations
|
(63 | ) | (49 | ) | ||||
Net
cash used in operating activities of Discontinued
Operations
|
— | (1 | ) | |||||
Effect
of exchange rate fluctuations on Cash and Cash Equivalents
|
(19 | ) | 20 | |||||
Net
change in Cash and Cash Equivalents
|
(70 | ) | 17 | |||||
Cash
and Cash Equivalents at beginning of year
|
582 | 385 | ||||||
Cash
and Cash Equivalents at end of interim period
|
$ | 512 | $ | 402 | ||||
Cash
paid during the period:
|
||||||||
Interest
|
$ | 6 | $ | 6 | ||||
Income
taxes
|
$ | 23 | $ | 10 |
July 31,
|
August 1,
|
January 30,
|
||||||||
Goodwill (in millions)
|
2010
|
2009
|
2010
|
|||||||
Athletic
Stores
|
$ | 17 | $ | 18 | $ | 18 | ||||
Direct-to-Customers
|
127 | 127 | 127 | |||||||
$ | 144 | $ | 145 | $ | 145 |
July 31, 2010
|
August 1, 2009
|
January 30, 2010
|
||||||||||||||||||||||||||||||||||
Gross
|
Accum.
|
Net
|
Gross
|
Accum.
|
Net
|
Gross
|
Accum.
|
Net
|
||||||||||||||||||||||||||||
(in millions)
|
value
|
amort.
|
value
|
value
|
amort.
|
value
|
value
|
amort.
|
value
|
|||||||||||||||||||||||||||
Finite
life
intangible assets:
|
||||||||||||||||||||||||||||||||||||
Lease
acquisition costs
|
$ | 170 | $ | (137 | ) | $ | 33 | $ | 184 | $ | (138 | ) | $ | 46 | $ | 184 | $ | (143 | ) | $ | 41 | |||||||||||||||
Trademarks
|
21 | (7 | ) | 14 | 20 | (5 | ) | 15 | 20 | (6 | ) | 14 | ||||||||||||||||||||||||
Loyalty
program
|
1 | (1 | ) | — | 1 | (1 | ) | — | 1 | (1 | ) | — | ||||||||||||||||||||||||
Favorable
leases
|
9 | (8 | ) | 1 | 9 | (8 | ) | 1 | 9 | (8 | ) | 1 | ||||||||||||||||||||||||
CCS
customer relationships
|
21 | (7 | ) | 14 | 21 | (3 | ) | 18 | 21 | (5 | ) | 16 | ||||||||||||||||||||||||
Total
finite life intangible assets
|
222 | (160 | ) | 62 | 235 | (155 | ) | 80 | 235 | (163 | ) | 72 |
July 31, 2010
|
August 1, 2009
|
January 30, 2010
|
||||||||||||||||||||||||||||||||||
Gross
|
Accum.
|
Net
|
Gross
|
Accum.
|
Net
|
Gross
|
Accum.
|
Net
|
||||||||||||||||||||||||||||
(in millions)
|
value
|
amort.
|
value
|
value
|
amort.
|
value
|
value
|
amort.
|
value
|
|||||||||||||||||||||||||||
Intangible
assets not subject to amortization:
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Republic
of Ireland trademark
|
2 | — | 2 | 2 | — | 2 | 2 | — | 2 | |||||||||||||||||||||||||||
CCS
trade-name
|
25 | — | 25 | 25 | — | 25 | 25 | — | 25 | |||||||||||||||||||||||||||
Total
indefinite life intangible assets
|
27 | — | 27 | 27 | — | 27 | 27 | — | 27 | |||||||||||||||||||||||||||
Total
other intangible assets
|
$ | 249 | $ | (160 | ) | $ | 89 | $ | 262 | $ | (155 | ) | $ | 107 | $ | 262 | $ | (163 | ) | $ | 99 |
Balance Sheet
|
July 31,
|
August 1,
|
January 30,
|
|||||||||||
(in millions)
|
Caption
|
2010
|
2009
|
2010
|
||||||||||
Hedging
Instruments:
|
||||||||||||||
Forward
foreign exchange contracts
|
Current
liability
|
$ | (1 | ) | $ | — | $ | — | ||||||
Total
|
$ | (1 | ) | $ | — | $ | — | |||||||
Non-Hedging
Instruments:
|
||||||||||||||
Forward
foreign exchange contracts
|
Current
assets
|
$ | — | $ | 1 | $ | 1 | |||||||
Forward
foreign exchange contracts
|
Current
liability
|
(1 | ) | (1 | ) | — | ||||||||
European
cross currency swap
|
(1)
|
(24 | ) | (24 | ) | (24 | ) | |||||||
Total
|
$ | (25 | ) | $ | (24 | ) | $ | (23 | ) |
July 31,
|
August 1,
|
January 30,
|
||||||||||
(in millions)
|
2010
|
2009
|
2010
|
|||||||||
Foreign
currency translation adjustments
|
$
|
38
|
$
|
72
|
$
|
75
|
||||||
Cash
flow hedges
|
(1
|
)
|
—
|
—
|
||||||||
Unrecognized
pension cost and postretirement benefit
|
(263
|
)
|
(256
|
)
|
(266
|
)
|
||||||
Unrealized
loss on available-for-sale security
|
(2
|
)
|
(3
|
)
|
(2
|
)
|
||||||
$
|
(228
|
)
|
$
|
(187
|
)
|
$
|
(193
|
)
|
Thirteen weeks ended
|
Twenty-six weeks ended
|
|||||||||||||||
July 31,
|
August 1,
|
July 31,
|
August 1,
|
|||||||||||||
(in millions)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Weighted-average
common shares outstanding
|
156.1 | 155.9 | 156.3 | 155.6 | ||||||||||||
Effect of
Dilution:
|
||||||||||||||||
Stock
options and awards
|
0.8 | — | 0.8 | 0.2 | ||||||||||||
Weighted-average
common shares assuming dilution
|
156.9 | 155.9 | 157.1 | 155.8 |
Thirteen weeks ended
|
Twenty-six weeks ended
|
||||||||||||
July 31,
|
August 1,
|
July 31,
|
August 1,
|
||||||||||
(in millions)
|
2010
|
2009
|
2010
|
2009
|
|||||||||
Athletic
Stores
|
$ | 1,015 | $ | 1,018 | $ | 2,196 | $ | 2,136 | |||||
Direct-to-Customers
|
81 | 81 | 181 | 179 | |||||||||
Total
sales
|
$ | 1,096 | $ | 1,099 | $ | 2,377 | $ | 2,315 |
Thirteen weeks ended
|
Twenty-six weeks ended
|
|||||||||||||||
July 31,
|
August 1,
|
July 31,
|
August 1,
|
|||||||||||||
(in millions)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Athletic
Stores
|
$ | 33 | $ | 5 | $ | 134 | $ | 66 | ||||||||
Direct-to-Customers
|
3 | 5 | 13 | 13 | ||||||||||||
Division
profit
|
36 | 10 | 147 | 79 | ||||||||||||
Corporate
expense, net
|
25 | 10 | 49 | 29 | ||||||||||||
Operating
profit
|
11 | — | 98 | 50 | ||||||||||||
Other
income (1)
|
1 | 1 | 1 | 2 | ||||||||||||
Interest
expense, net
|
2 | 3 | 5 | 5 | ||||||||||||
Income
(loss) from continuing operations before income taxes
|
$ | 10 | $ | (2 | ) | $ | 94 | $ | 47 |
(1)
|
Other
income for the twenty-six weeks ended July 31, 2010 primarily represents
royalty income and realized gains associated with foreign currency option
contracts. Other income for the twenty-six weeks ended August 1, 2009
primarily represents gains from insurance proceeds, gain on the purchase
and retirement of bonds, and royalty
income.
|
Pension Benefits
|
Postretirement Benefits
|
|||||||||||||||||||||||||||||||
Thirteen weeks
|
Twenty-six weeks
|
Thirteen weeks
|
Twenty-six weeks
|
|||||||||||||||||||||||||||||
Ended
|
Ended
|
Ended
|
ended
|
|||||||||||||||||||||||||||||
July 31,
|
August 1,
|
July 31,
|
August 1,
|
July 31,
|
August 1,
|
July 31,
|
August 1,
|
|||||||||||||||||||||||||
2010
|
2009
|
2010
|
2009
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||||||||||||||
Service
cost
|
$ | 3 | $ | 3 | $ | 6 | $ | 6 | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Interest
cost
|
9 | 9 | 17 | 18 | — | — | — | — | ||||||||||||||||||||||||
Expected
return on plan assets
|
(10 | ) | (11 | ) | (20 | ) | (21 | ) | — | — | — | — | ||||||||||||||||||||
Amortization
of net loss (gain)
|
4 | 3 | 9 | 6 | (1 | ) | (1 | ) | (3 | ) | (3 | ) | ||||||||||||||||||||
Net
benefit expense (income)
|
$ | 6 | $ | 4 | $ | 12 | $ | 9 | $ | (1 | ) | $ | (1 | ) | $ | (3 | ) | $ | (3 | ) |
Stock Option Plans
Twenty-six weeks ended
|
Stock Purchase Plan
Twenty-six weeks ended
|
|||||||||||
July 31,
|
August 1,
|
July 31,
|
August 1,
|
|||||||||
2010
|
2009
|
2010
|
2009
|
|||||||||
Weighted-average risk free rate of interest
|
2.34 | % | 1.76 | % | 1.03 | % | 1.91 | % | ||||
Expected
volatility
|
45 | % | 53 | % | 39 | % | 39 | % | ||||
Weighted-average
expected award life
|
5.0
years
|
4.8
years
|
1.0
year
|
1.0
year
|
||||||||
Dividend
yield
|
4.0 | % | 6.0 | % | 5.1 | % | 4.2 | % | ||||
Weighted-average
fair value
|
$ | 4.47 | $ | 2.87 | $ | 2.36 | $ | 4.74 |
(in thousands, except price per share)
|
Shares
|
Weighted-
Average
Term
|
Weighted-
Average
Exercise
Price
|
|||||||||
Options
outstanding at the beginning of the year
|
7,002 | $ | 16.88 | |||||||||
Granted
|
1,309 | 15.10 | ||||||||||
Exercised
|
(151 | ) | 11.00 | |||||||||
Expired
or cancelled
|
(105 | ) | 20.59 | |||||||||
Options
outstanding at July 31, 2010
|
8,055 | 5.47 | $ | 16.65 | ||||||||
Options
exercisable at July 31, 2010
|
5,637 | 3.87 | $ | 18.26 | ||||||||
Options
available for future grant at July 31, 2010
|
10,336 |
Options Outstanding
|
Options Exercisable
|
|||||||||||||||||||||||||
Range of Exercise Prices
|
Number
Outstanding
|
Weighted-
Average
Remaining
Contractual
Life
|
Weighted-
Average
Exercise Price
|
Number
Exercisable
|
Weighted-
Average
Exercise Price
|
|||||||||||||||||||||
(in thousands, except price per share)
|
||||||||||||||||||||||||||
$ | 9.51 | $ | 10.25 | 1,832 | 7.01 | $ | 10.05 | 915 | $ | 10.09 | ||||||||||||||||
$ | 10.31 | $ | 15.10 | 2,864 | 6.22 | $ | 13.45 | 1,370 | $ | 12.11 | ||||||||||||||||
$ | 15.41 | $ | 23.92 | 2,014 | 4.10 | $ | 20.66 | 2,007 | $ | 20.67 | ||||||||||||||||
$ | 24.04 | $ | 27.10 | 922 | 3.50 | $ | 25.70 | 922 | $ | 25.70 | ||||||||||||||||
$ | 28.16 | $ | 28.16 | 423 | 4.50 | $ | 28.16 | 423 | $ | 28.16 | ||||||||||||||||
$ | 9.51 | $ | 28.16 | 8,055 | 5.47 | $ | 16.65 | 5,637 | $ | 18.26 |
(in thousands, except price per share)
|
Number of
Shares
|
Weighted-
Average Grant
Date Fair Value
per Share
|
|||||
Non-vested
at January 30, 2010
|
1,918
|
$
|
11.67
|
||||
Granted
|
1,309
|
15.10
|
|||||
Vested
|
(704
|
)
|
12.45
|
||||
Expired
or cancelled
|
(105
|
)
|
20.59
|
||||
Non-vested
at July 31, 2010
|
2,418
|
12.92
|
Number of Shares and Units
|
||||||||
(in thousands)
|
July 31, 2010
|
August 1, 2009
|
||||||
Outstanding
at the beginning of the year
|
1,680
|
844
|
||||||
Granted
|
651
|
615
|
||||||
Vested
|
(457
|
)
|
(39
|
)
|
||||
Cancelled
or forfeited
|
(70
|
)
|
—
|
|||||
Outstanding
at end of period
|
1,804
|
1,420
|
||||||
Aggregate
value (in millions)
|
$
|
21.1
|
$
|
21.8
|
||||
Weighted-average
remaining contractual life
|
1.90
years
|
1.42
years
|
At July 31, 2010
|
At August 1, 2009
|
At January 30, 2010
|
||||||||||||||||||||||||||||||||||
(in millions)
|
Level 1
|
Level 2
|
Level 3
|
Level 1
|
Level 2
|
Level 3
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||||||
Short-term
investment
|
$ | — | $ | — | $ | 7 | $ | — | $ | — | $ | 13 | $ | — | $ | — | $ | 7 | ||||||||||||||||||
Auction
rate security
|
— | 5 | — | — | 4 | — | — | 5 | — | |||||||||||||||||||||||||||
Forward
foreign exchange contracts
|
— | — | — | — | 1 | — | — | 1 | — | |||||||||||||||||||||||||||
Total
Assets
|
$ | — | $ | 5 | $ | 7 | $ | — | $ | 5 | $ | 13 | $ | — | $ | 6 | $ | 7 | ||||||||||||||||||
Liabilities
|
||||||||||||||||||||||||||||||||||||
European
net investment hedge
|
$ | — | $ | 24 | $ | — | $ | — | $ | 24 | $ | — | $ | — | $ | 24 | $ | — | ||||||||||||||||||
Forward
foreign exchange contracts
|
— | 2 | — | — | 1 | — | — | — | — | |||||||||||||||||||||||||||
Total
Liabilities
|
$ | — | $ | 26 | $ | — | $ | — | $ | 25 | $ | — | $ | — | $ | 24 | $ | — |
Thirteen weeks ended
|
Twenty-six weeks ended
|
|||||||||||||||
July 31,
|
August 1,
|
July 31,
|
August 1,
|
|||||||||||||
(in millions)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Athletic
Stores
|
$ | 1,015 | $ | 1,018 | $ | 2,196 | $ | 2,136 | ||||||||
Direct-to-Customers
|
81 | 81 | 181 | 179 | ||||||||||||
Total
sales
|
$ | 1,096 | $ | 1,099 | $ | 2,377 | $ | 2,315 |
Thirteen weeks ended
|
Twenty-six weeks ended
|
|||||||||||||||
July 31,
|
August 1,
|
July 31,
|
August 1,
|
|||||||||||||
(in millions)
|
2010
|
2009
|
2010
|
2009
|
||||||||||||
Athletic
Stores
|
$ | 33 | $ | 5 | $ | 134 | $ | 66 | ||||||||
Direct-to-Customers
|
3 | 5 | 13 | 13 | ||||||||||||
Division
profit
|
36 | 10 | 147 | 79 | ||||||||||||
Corporate
expense, net
|
25 | 10 | 49 | 29 | ||||||||||||
Operating
profit
|
11 | — | 98 | 50 | ||||||||||||
Other
income (1)
|
1 | 1 | 1 | 2 | ||||||||||||
Interest
expense, net
|
2 | 3 | 5 | 5 | ||||||||||||
Income
(loss) from continuing operations before income taxes
|
$ | 10 | $ | (2 | ) | $ | 94 | $ | 47 |
(1)
|
Other
income for the twenty-six weeks ended July 31, 2010 primarily represents
royalty income and realized gains associated with foreign currency option
contracts. Other income for the twenty-six weeks ended August 1, 2009
primarily represents gains from insurance proceeds, gain on the purchase
and retirement of bonds, and royalty
income.
|
Thirteen weeks ended
|
Twenty-six weeks ended
|
|||||||||||||||
July 31,
|
August 1,
|
July 31,
|
August 1,
|
|||||||||||||
(in millions)
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
||||||||
Interest
expense
|
$
|
3
|
$
|
3
|
$
|
7
|
$
|
6
|
||||||||
Interest
income
|
(1
|
)
|
—
|
(2
|
)
|
(1
|
)
|
|||||||||
Interest
expense, net
|
$
|
2
|
$
|
3
|
$
|
5
|
$
|
5
|