Note 9 – Real Estate and Other, Net

 

($ in millions)	Three Months Ended							Six Months Ended
		July 30,			July 31,				July 30,			July 31,
		2011			2010				2011			2010
Real estate activities	$	(7	)	$	(8	)		$	(22	)	$	(16	)
Restructuring charges		23			-				32			-
Other		1			1				3			3
Total expense/(income)	$	17		$	(7	)		$	13		$	(13	)

 

Real estate and other consists of ongoing operating income from our real estate subsidiaries whose primary investments are in REITs, as well as investments in 13 joint ventures that own regional mall properties.  Real estate and other also includes net gains from the sale of facilities and equipment that are no longer used in operations, other non-operating charges and credits, as well as asset impairments and restructuring related charges. 

                                  

Real estate and other, net for the second quarter of 2011 was a charge of $17 million versus income of $7 million for the second quarter of 2010.  The current period loss included $23 million of restructuring charges related to previously announced activities to streamline our supply chain and custom decorating operations, exit the catalog business, reduce home office expenses, as well as close five underperforming stores.  Real estate and other for the first half of 2011 was a loss of $13 million versus income of $13 million for the same period last year.  The year-over-year change was primarily the result of $32 million of restructuring charges in 2011, somewhat offset by income from certain joint venture transactions in the first quarter of 2011.

 

We announced a voluntary early retirement program (VERP) in August 2011. The approximately 8,400 eligible associates will have between September 1 and October 15, 2011 to elect to participate.  The one-time cost for the enhanced retirement benefits will be determined and recognized following the close of the election period in the third quarter of 2011.