UNITED STATES      SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549
 
 
FORM 10-Q
 

 
X
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE      SECURITIES EXCHANGE ACT OF 1934 FOR THE      QUARTERLY PERIOD ENDED MARCH 30, 2002
 
 
 
 
 
 
 
 
 
 
 
 
 
OR
 
 
 
 
 
 
 
 
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE      SECURITIES EXCHANGE ACT OF 1934
 
Commission file number 1-416

**SEARS, ROEBUCK AND CO.**(Exact name of registrant as specified in its charter)
 
New York(State of Incorporation)
36-1750680(I.R.S. Employer Identification No.)

3333 Beverly Road, Hoffman Estates, Illinois(Address of principal executive offices)
60179(Zip Code)
      Registrant's telephone number, including area code: (847) 286-2500

 

 

Registrant [1] has filed all reports required to be filed by Section 13      or 15(d) of the Securities Exchange Act of 1934 during the preceding 12      months and [2] has been subject to such filing requirements for the past      90 days.
Yes
X
No
As of April 27, 2002, the Registrant had 315,109,471 common shares,      $.75 par value, outstanding.
 

 

 

 

 

 

 

 
**SEARS, ROEBUCK AND CO.INDEX TO QUARTERLY REPORT ON FORM 10-Q13 Weeks Ended March 30, 2002
** **

PART I - FINANCIAL INFORMATION
Page  
Item 1.
Financial Statements
   
 
Condensed Consolidated Statements of Income (Unaudited)      13 Weeks Ended March 30, 2002 and March 31, 2001
      1  
 
Condensed Consolidated Balance Sheets      March 30, 2002 (Unaudited), March 31, 2001 (Unaudited)      and December 29, 2001
      2  
 
Condensed Consolidated Statements of Cash Flows (Unaudited)      13 Weeks Ended March 30, 2002 and March 31, 2001
      3  
 
Notes to Condensed Consolidated Financial Statements (Unaudited)
4  
 
Independent Accountants' Report
13
 
 
   
Item 2.
Management's Discussion and Analysis of Operations, Financial Condition      and Liquidity
      14
  
Item 3.
Quantitative and Qualitative Disclosures about Market Risk
22
 

 

PART II - OTHER INFORMATION

Item 1.
Legal Proceedings
23  
Item 6.
Exhibits and Reports on Form 8-K
23** 

 

 

 

 

 

 

SEARS, ROEBUCK AND CO.Condensed Consolidated Statements of Income(Unaudited)
PART I. FINANCIAL INFORMATION

*Item 1. Financial Statements*

*millions,        except per common share data*
13        Weeks Ended

March        30,
March        31,
2002

2001
**REVENUES
Merchandise        sales and services
$
7,647
$
7,754
Credit        and financial products revenues
1,390

1,103

            Total revenues
9,037

8,857
**COSTS        AND EXPENSES
Cost        of sales, buying and occupancy
5,626
5,836
Selling        and administrative
2,061
2,031
Provision        for uncollectible accounts
381
191
Depreciation        and amortization
210
215
Interest
292
312
Special        charges and impairments
111

--

            Total costs and expenses
8,681

8,585

Operating        income
356
272
Other        income, net
78

1

Income        before income taxes and minority interest
434
273
Income        taxes
(148)
(98)
Minority        interest
32

1

Income        before cumulative effect of accounting changes
318
176
Cumulative        effect of a change in accounting for goodwill
(208)

--
**NET        INCOME
$
110

$
176
**EARNINGS        PER COMMON SHARE
            BASIC
               Earnings per share before cumulative

               effect of a change in accounting principle
$
0.99
$
0.53
               Cumulative effect of change in

               accounting for goodwill
(0.65)

--

                   Earnings per share
$
0.34

$
0.53

            DILUTED
               Earnings per share before cumulative

               effect of a change in accounting principle
$
0.98
$
0.53
               Cumulative effect of change in

               accounting for goodwill
(0.64)

--

                   Earnings per share
$
0.34

$
0.53

Cash        dividends declared per common share
$
0.23

$
0.23

Average        common and common equivalent shares outstanding
324.0
333.5
 

 
See        accompanying notes.** 

 

 

 

 

 

 

SEARS, ROEBUCK AND CO.Condensed Consolidated Balance Sheets

 **
 
(Unaudited)

 
 
 *millions
March      30,
March      31,
December      29,
 
2002

 
2001

 
2001

ASSETS
 

Current assets
 
 
 
 
 
 
 
 
        Cash and cash equivalents
$
949
 
$
510
 
$
1,064
        Retained interest in transferred credit card receivables
 
--
 
 
3,863 
 
 
--
        Credit card receivables
 
28,509
 
 
15,333
 
 
29,321
           Less allowance for uncollectible accounts
 
1,162

 
 
603

 
 
1,166

           Net credit card receivables
 
27,347
 
 
14,730
 
 
28,155
        Other receivables
 
619
 
 
459
 
 
658
        Merchandise inventories
 
5,249
 
 
6,019
 
 
4,912
        Prepaid expenses and deferred charges
629
623
458
        Deferred income taxes
 
994

 
 
981

 
 
858

        Total current assets
 
35,787
 
 
27,185
 
 
36,105
 
 
 
 
 
 
 
 
 
Property      and equipment, net
 
6,629
 
 
6,499
 
 
6,824
Deferred      income taxes
 
433
 
 
255
 
 
415
Goodwill
 
110
 
 
291
 
 
294
Other      assets
 
644

 
 
676

 
 
679
**        TOTAL ASSETS
$
43,603

 
$
34,906

 
$
44,317

 
 
 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
 
 
Current      liabilities
 
 
 
 
 
 
 
 
        Short-term borrowings
$
3,485
 
$
3,412
 
$
3,557
        Current portion of long-term debt and capitalized lease

           obligations
 
4,414
 
 
2,313
 
 
3,157
        Accounts payable and other liabilities
 
6,492***************