Old COPPER Company, Inc. - 10-Q filing on 2015-12-09

Real Estate and Other, Net	9 Months Ended
Real Estate and Other, Net	Oct. 31, 2015
Real Estate and Other, Net [Abstract]
Real Estate and Other, Net	Real Estate and Other, Net Real estate and other consists of ongoing operating income from our real estate subsidiaries, net gains from the sale of facilities and equipment that are no longer used in operations, asset impairments, accruals for certain litigation and other non-operating charges and credits. In addition, during the first quarter of 2014, we entered into a joint venture in which we contributed approximately 220 acres of excess property adjacent to our home office facility in Plano, Texas (Home Office Land Joint Venture). The joint venture was formed to develop the contributed property and our proportional share of the joint venture's activities is recorded in Real estate and other, net. For the three months ended October 31, 2015 and November 1, 2014, Real estate and other, net was expense of $2 million and income of $90 million, respectively. For the nine months ended October 31, 2015 and November 1, 2014, Real estate and other, net was income of $14 million and $160 million, respectively. Sale of Non-Operating Assets During the first quarter of 2015, we sold two properties used in our former auto center operations and two former outlet store locations for net proceeds of $6 million, resulting in net gains totaling $2 million. During the second quarter of 2015, we sold two additional properties used in our former auto center operations for net proceeds of $7 million, resulting in net gains totaling $6 million. During the third quarter of 2015, we recognized a net gain of $1 million on the previous sale of 11 acres of land to the Home Office Land Joint Venture. During the first quarter of 2014, we sold four properties used in our former auto center operations and excess property adjacent to our home office facility not contributed to the Home Office Land Joint Venture for net proceeds of $15 million, resulting in net gains totaling $12 million. During the second quarter of 2014, we sold four additional properties used in our former auto center operations for net proceeds of $11 million, resulting in net gains totaling $9 million. During the third quarter of 2014, we sold one closed store and one additional property used in our former auto center operations for net proceeds and a gain of $2 million. Sale of Operating Assets During the first quarter of 2015, we recognized a net gain of $8 million for the sale of a former furniture store location and for payments received from landlords to terminate two existing leases prior to the original expiration date. During the third quarter of 2015, we recognized a net gain of $1 million for the sale of excess property. During the first quarter of 2014, we sold a former department store location with a net book value of $1 million for net proceeds of $2 million, realizing a gain of $1 million. During the third quarter of 2014, we sold three department store locations and recognized a net gain on a payment received from a landlord to terminate an existing lease prior to its original expiration date for total net proceeds of $66 million and a net gain of $90 million. Investment Income from Joint Ventures During the first quarter of 2015, the Company recorded $22 million for our proportional share of net income from the Home Office Land Joint Venture and received an aggregate cash distribution of $22 million. During the third quarter of 2015, the Company recorded $19 million for our proportional share of net income from the Home Office Land Joint Venture. During the second quarter of 2014, the Company recorded $43 million for our proportional share of net income from the Home Office Land Joint Venture and received an aggregate cash distribution of $51 million. Settlement of Class Action Lawsuit During the third quarter of 2015, the Company accrued an additional $20 million under the proposed settlement related to the pricing class action litigation. This brings the total accrual to $50 million for the nine months ended October 31, 2015. Pursuant to the settlement, which is subject to court approval, class members will have the option of selecting a cash payment or store credit. The amount of the payment or credit will depend on the total amount of certain merchandise purchased by each class member during the class period. Other During the second quarter of 2015, we recognized a net gain of $3 million on a payment received from a landlord to terminate an existing lease prior to its original expiration date.