Annual Report 1999    | investor relations | corporate home
Shareholders' Letter
Financial Highlights
MD & A
Financials
Officers & Directors
 

Statements of Income | Balance Sheets | Statements of Cash Flows | Shareholders' Equity | Financial Data
Notes 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15

FINANCIALS
Back | Next  

Notes to Consolidated Financial Statements

 

NOTE >2 > DISPOSITION OF BUSINESSES

On November 18, 1998, the Company entered into an agreement to exchange its interest in the Homelife furniture business for $100 million in cash, a $10 million note receivable and a 19% equity ownership in the new Homelife business. The Company recorded a pretax charge of $33 million ($21 million after-tax) in the fourth quarter of 1998 related to this transaction. The sale was completed on January 30, 1999.

On November 2, 1998, the Company completed an Agreement and Plan of Merger of Western Auto, a wholly owned subsidiary, and Advance Auto Parts, whereby Sears exchanged its interest in Western Auto for $175 million in cash and approximately 40% equity ownership in the resulting combined company. Based on the terms of the sale, the Company recorded a pretax charge of $319 million ($243 million after-tax) in 1998 related to this transaction. In the fourth quarter of 1999, certain estimates of remaining liabilities under the terms of the transaction were revised, resulting in $5 million of pretax income being recorded in the restructuring and impairment line of the income statement.


  Annual Report 1999 

Back | Top | Next  
1999 Sears, Roebuck and Co. - www.sears.com