These excerpts taken from the SKS 10-K filed Mar 23, 2009.
STYLE="margin-top:0px;margin-bottom:0px">Item 1. Business.
STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%;padding-bottom:3px;line-height:95%; vertical-align:top">The operations of Saks Incorporated, a Tennessee corporation first incorporated in 1919, and its
subsidiaries (together the Company) consist of Saks Fifth Avenue (SFA), Saks Fifth Avenue OFF 5TH (OFF 5FACE="Times New Roman" SIZE="1">th), and SFAs e-commerce operations. Previously, the Company also operated Saks Department Store Group (SDSG), which consisted of
Proffitts and McRaes (Proffitts) (sold to Belk, Inc. (Belk) in July 2005), the Northern Department Store Group (NDSG) (operated under the nameplates of Bergners, Boston Store, Carson Pirie
Scott, Herbergers and Younkers and sold to The Bon-Ton Stores, Inc. (Bon-Ton) in March 2006), Parisian (sold to Belk in October 2006), and Club Libby Lu (CLL) (the operations of which were discontinued in January 2009).
The sold businesses and discontinued operations are presented as discontinued operations in the consolidated statements of income and the consolidated statements of cash flows for the current and prior year periods and are discussed below in
FACE="Times New Roman" SIZE="2">The Company is a fashion retail organization offering a wide assortment of distinctive luxury fashion apparel, shoes, accessories, jewelry, cosmetics and gifts. SFA stores are principally free-standing stores in
Merchandising, sales promotion, and store operating support functions reside
SIZE="2">The Companys fiscal year ends on the Saturday closest to January 31. Fiscal years 2008 and 2007 each contained 52 weeks and ended on January 31, 2009 and February 2, 2008, respectively. Fiscal year 2006 contained 53
On July 5, 2005, Belk acquired from
STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%">On March 6, 2006, the Company sold to Bon-Ton all outstanding equity interests of certain of the Companys subsidiaries that owned NDSG, either
directly or indirectly. The consideration received consisted of approximately $1.12 billion in cash (reduced as described below based on changes in working capital), plus the assumption by Bon-Ton of approximately $35 million of unfunded benefit
liabilities and approximately $35 million of capital leases. A working capital adjustment based on working capital as of the effective time of the transaction reduced the amount of cash proceeds by approximately $75 million resulting in net cash
On October 2, 2006,
STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%">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. CLL generated revenues of approximately $52.2 million for 2008 and was not profitable. The Company incurred charges of $44.5 million in 2008 associated with closing the stores. The Company expects to incur
nominal charges relating to CLL in 2009.
STYLE="margin-top:0px;margin-bottom:0px">Item 15. Exhibits and Financial Statement Schedules.
STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%">Schedule II Valuation and Qualifying Accounts
STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%">All other schedules for which provision is made in the applicable accounting regulation of the Securities and Exchange Commission are either included in
the financial statements or notes thereto or are not required or are not applicable and therefore have been omitted.