SHLD » Topics » NOTE 11-EARNINGS PER SHARE

This excerpt taken from the SHLD 10-K filed Mar 12, 2010.

NOTE 8—EARNINGS PER SHARE

The following tables set forth the components used to calculate basic and diluted earnings per share.

 

millions except earnings per share    2009    2008    2007

Basic weighted average shares

     117.8      127.0      144.7

Dilutive effect of restricted stock and stock options

     0.1      —        0.1
                    

Diluted weighted average shares

     117.9      127.0      144.8

Net income attributable to Holdings’ shareholders

   $ 235    $ 53    $ 826

Earnings per share attributable to Holdings’ shareholders

        

Basic

   $ 1.99    $ 0.42    $ 5.71

Diluted

   $ 1.99    $ 0.42    $ 5.70
This excerpt taken from the SHLD 10-K filed Mar 17, 2009.

NOTE 8—EARNINGS PER SHARE

The following tables set forth the components used to calculate basic and diluted earnings per share.

 

millions except earnings per share    2008    2007    2006

Basic weighted average shares

     127.0      144.7      155.6

Dilutive effect of stock options

     —        0.1      0.1
                    

Diluted weighted average shares

     127.0      144.8      155.7

Net income

   $ 53    $ 826    $ 1,492

Earnings per share

        

Basic

   $ 0.42    $ 5.71    $ 9.59

Diluted

   $ 0.42    $ 5.70    $ 9.58

The computation of dilutive shares outstanding excludes out-of-the-money stock options because such outstanding options’ exercise prices are greater than the average market price of our common shares and, therefore, the effect would be antidilutive.

This excerpt taken from the SHLD 10-K filed Mar 26, 2008.

NOTE 11—EARNINGS PER SHARE

The following tables set forth the components used to calculate basic and diluted earnings per share.

 

millions except earnings per share    2007    2006    2005

Basic weighted average shares

     144.7      155.6      152.5

Dilutive effect of stock options

     0.1      0.1      1.1
                    

Diluted weighted average shares

     144.8      155.7      153.6

Net income

   $ 826    $ 1,492    $ 857

Earnings per share

        

Basic

   $ 5.71    $ 9.59    $ 5.62

Diluted

   $ 5.70    $ 9.58    $ 5.58

 

83


SEARS HOLDINGS CORPORATION

Notes to Consolidated Financial Statements—(Continued)

 

The computation of dilutive shares outstanding excludes out-of-the-money stock options because such outstanding options’ exercise prices are greater than the average market price of our common shares and, therefore, the effect would be antidilutive.

This excerpt taken from the SHLD 10-K filed Mar 28, 2007.

NOTE 11—EARNINGS PER SHARE

The following tables set forth the components used to calculate basic and diluted earnings per share.

 

millions    2006    2005    2004

Basic weighted average shares

   155.6    152.5    89.3

Dilutive effect of stock options

   0.1    1.1    6.1

9% convertible Notes

   —      —      6.0
              

Diluted weighted average shares

   155.7    153.6    101.4
              

A reconciliation of net income available to common shareholders to net income available to common shareholders with assumed conversions is as follows:

 

millions    2006    2005    2004

Net income available to common shareholders

   $ 1,490    $ 858    $ 1,106

Interest and accretion of debt discount on 9% convertible notes, net of tax

     —        —        9
                    

Income available to common shareholders with assumed conversions

   $ 1,490    $ 858    $ 1,115
                    

Earnings per share

        

Basic

   $ 9.57    $ 5.63    $ 12.39

Diluted

   $ 9.57    $ 5.59    $ 11.00

 

84


SEARS HOLDINGS CORPORATION

Notes to Consolidated Financial Statements—(Continued)

 

The 9% convertible Notes and accrued interest were converted into 6.3 million shares of Kmart common stock on January 31, 2005.

Kmart’s outstanding treasury shares were retired and cancelled in connection with the Merger.

For purposes of the fiscal 2004 diluted earnings per share calculation, approximately 150,000 stock options and 51,000 shares of restricted Kmart stock were excluded, as they were anti-dilutive.

This excerpt taken from the SHLD 10-K filed Mar 17, 2006.

NOTE 9—EARNINGS PER SHARE

        The following tables set forth the components used to calculate basic and diluted earnings per share.

millions

  2005
  2004
  39 Weeks
Ended
January 28,
2004

Basic weighted average shares   152.5   89.3   89.6
Dilutive effect of stock options   1.1   6.1   3.7
9% convertible Notes     6.0  
   
 
 
Diluted weighted average shares   153.6   101.4   93.3
   
 
 

81


        A reconciliation of net income available to common shareholders to net income available to common shareholders with assumed conversions is as follows:

 
  2005
  2004
  39 Weeks
Ended
January 28,
2004

millions

   
Net income available to common shareholders   $ 858   $ 1,106   $ 234
Interest and accretion of debt discount on 9% convertible notes, net of tax         9    
   
 
 
Income available to common shareholders with assumed conversions   $ 858   $ 1,115   $ 234
   
 
 
Earnings per share                  
  Basic   $ 5.63   $ 12.39   $ 2.61
  Diluted   $ 5.59   $ 11.00   $ 2.51

        The 9% convertible Notes and accrued interest were converted into 6.3 million shares of Kmart common stock on January 31, 2005.

        Kmart's outstanding treasury shares were retired and cancelled in connection with the Merger.

        For purposes of the fiscal 2004 diluted earnings per share calculation, approximately 150,000 stock options and 51,000 shares of restricted Kmart stock were excluded, as they were anti-dilutive. For purposes of the diluted earnings per share calculation for the 39 weeks ended January 28, 2004, the convertible note was excluded, as it was anti-dilutive.

This excerpt taken from the SHLD 10-K filed Mar 15, 2006.

NOTE 9—EARNINGS PER SHARE

        The following tables set forth the components used to calculate basic and diluted earnings per share.

millions

  2005
  2004
  39 Weeks
Ended
January 28,
2004

Basic weighted average shares   152.5   89.3   89.6
Dilutive effect of stock options   1.1   6.1   3.7
9% convertible Notes     6.0  
   
 
 
Diluted weighted average shares   153.6   101.4   93.3
   
 
 

81


        A reconciliation of net income available to common shareholders to net income available to common shareholders with assumed conversions is as follows:

 
  2005
  2004
  39 Weeks
Ended
January 28,
2004

millions

   
Net income available to common shareholders   $ 858   $ 1,106   $ 234
Interest and accretion of debt discount on 9% convertible notes, net of tax         9    
   
 
 
Income available to common shareholders with assumed conversions   $ 858   $ 1,115   $ 234
   
 
 
Earnings per share                  
  Basic   $ 5.63   $ 12.39   $ 2.61
  Diluted   $ 5.59   $ 11.00   $ 2.51

        The 9% convertible Notes and accrued interest were converted into 6.3 million shares of Kmart common stock on January 31, 2005.

        Kmart's outstanding treasury shares were retired and cancelled in connection with the Merger.

        For purposes of the fiscal 2004 diluted earnings per share calculation, approximately 150,000 stock options and 51,000 shares of restricted Kmart stock were excluded, as they were anti-dilutive. For purposes of the diluted earnings per share calculation for the 39 weeks ended January 28, 2004, the convertible note was excluded, as it was anti-dilutive.

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