Market Overview

Tiffany Reports Fiscal 2017 Results

Share:

Worldwide Net Sales up 4% in Year and 9% in
Fourth Quarter;

Net Earnings in Line with Company's Guidance;

Company Generates Strong Cash Flow;

Management Reiterates and Elaborates on Fiscal
2018 Guidance

Tiffany & Co. (NYSE:TIF) reported its financial results for the full
year and the three months ("fourth quarter") ended January 31, 2018.
Results were consistent with guidance previously issued when the Company
reported its holiday sales results for the November-December period on
January 17, 2018. Management further elaborated on its financial
guidance for the full year ending January 31, 2019 ("fiscal 2018").

In the full year:

  • Worldwide net sales increased 4% to $4.2 billion, reflecting sales
    growth in most regions and across most jewelry categories; comparable
    store sales were equal to the prior year. On a constant-exchange-rate
    basis that excludes the effect of translating
    foreign-currency-denominated sales into U.S. dollars (see "Non-GAAP
    Measures"), worldwide net sales also increased 4% and comparable store
    sales were equal to the prior year.
  • Net earnings of $370 million, or $2.96 per diluted share, were 17%
    below the prior year's $446 million, or $3.55 per diluted share.
    However, net earnings in 2017 included charges recorded in the fourth
    quarter totaling $146 million, or $1.17 per diluted share, related to
    the enactment of the U.S. Tax Cuts and Jobs Act. Net earnings in the
    prior year included a net charge recorded in the fourth quarter
    totaling $38 million, or $0.19 per diluted share, related to certain
    impairments. Excluding all such charges, net earnings of $516 million,
    or $4.13 per diluted share, in 2017 were 10% higher than the prior
    year's $470 million, or $3.75 per diluted share (see "Non-GAAP
    Measures").

In the fourth quarter:

  • Worldwide net sales rose 9% to $1.3 billion, resulting from growth in
    all regions and across all product categories; comparable store sales
    rose 3%. On a constant-exchange-rate basis, worldwide net sales rose
    6% and comparable store sales were 1% above the prior year.
  • Net earnings of $62 million, or $0.50 per diluted share, were 61%
    below the prior year's $158 million, or $1.26 per diluted share.
    However, as noted above, the Company recorded tax-related charges in
    the fourth quarter of 2017 and certain impairment charges in last
    year's fourth quarter. Excluding all such charges, net earnings rose
    15% to $208 million, or $1.67 per diluted share, from last year's $182
    million, or $1.45 per diluted share (see "Non-GAAP Measures").

Alessandro Bogliolo, Chief Executive Officer, said, "We are pleased to
be finishing the year with solid sales growth, both geographically and
across product categories. Most important, however, is to generate
sustainable growth in sales, margins and earnings over the long-term.
Confirming what we recently indicated, we believe that increasing
investment now in certain areas, such as technology, marketing
communications, visual merchandising, digital and store presentations,
which we expect will hinder pre-tax earnings growth in the near-term, is
needed to generate that lasting long-term growth. We have assessed our
business and are focused on the following six strategic priorities:
Amplifying an evolved brand message; Renewing our product offerings and
enhancing in-store presentation; Delivering an exciting omnichannel
customer experience; Strengthening our competitive position and leading
in key markets; Cultivating a more efficient operating model; and
Inspiring an aligned and agile organization to win."

Mr. Bogliolo added, "We will only be truly satisfied when we create
greater excitement for our customers and also generate growth that
reflects the full potential of our brand. The TIFFANY & CO. brand is
strong and we have a very talented, dedicated and passionate team to
pursue these strategic priorities and lead us to success. We are
committed to nurturing the exceptional legacy we have been entrusted."

Net sales by region were as follows:

  • In the Americas, total net sales rose 2% to $1.9 billion in the full
    year and 5% to $619 million in the fourth quarter; comparable store
    sales increased 1% and 5% in the respective periods. There were no
    meaningful geographic differences across the region. On a
    constant-exchange-rate basis, total sales increased 1% in the full
    year and 5% in the fourth quarter; comparable store sales were
    unchanged in the full year and up 4% in the fourth quarter.
  • In Asia-Pacific, total net sales increased 10% to $1.1 billion in the
    full year and 13% to $320 million in the fourth quarter; comparable
    store sales declined 1% and rose 3% in those respective periods. Total
    net sales growth reflected higher wholesale and retail sales; on a
    comparable store sales basis, the full year decline reflected strong
    sales growth in mainland China that was offset by lower sales in most
    other countries, while the fourth quarter sales growth benefited from
    performance across Greater China. On a constant-exchange-rate basis,
    total sales rose 8% in the full year and 9% in the fourth quarter,
    with comparable store sales declining 2% and 1% in the respective
    periods.
  • In Japan, total net sales of $596 million in the full year were 1%
    below the prior year, while sales in the fourth quarter rose 2% to
    $189 million; comparable store sales declined 1% and rose 1%,
    respectively. On a constant-exchange-rate basis, total sales rose 1%
    in both the full year and fourth quarter; comparable store sales rose
    2% in the full year and were unchanged in the fourth quarter.
  • In Europe, total net sales rose 6% in the full year to $483 million
    and 13% to $165 million in the fourth quarter, reflecting the positive
    effects from currency translation, new stores and e-commerce sales
    growth; comparable store sales declined 2% and rose 1% in the
    respective periods, which management attributes in part to softness
    across much of the region as well as negative effects from new stores
    on existing store sales. On a constant-exchange-rate basis, total
    sales rose 3% in the full year and 4% in the fourth quarter, and
    comparable store sales declined 4% and 8%, respectively.
  • Other net sales were $125 million in the full year and $41 million in
    the fourth quarter, representing increases of 26% and 48% over the
    respective prior-year periods. Growth in both periods reflected higher
    wholesale sales of diamonds as well as comparable stores sales growth
    of 2% and 6%, respectively.
  • Tiffany opened nine Company-operated stores in the full year and
    closed seven. At January 31, 2018, the Company operated 315 stores
    (124 in the Americas, 87 in Asia-Pacific, 54 in Japan, 46 in Europe,
    and four in the UAE), versus 313 stores a year ago (125 in the
    Americas, 85 in Asia-Pacific, 55 in Japan, 43 in Europe, and five in
    the UAE).
  • From a product category perspective, in the full year, sales increased
    in the Jewelry Collections category (which now combines the
    previously-reported High, Fine and Solitaire Jewelry and the Fashion
    Jewelry categories) and the Designer Jewelry category and decreased in
    the Engagement Jewelry category, while in the fourth quarter, all
    categories achieved varying degrees of sales growth.

Other highlights:

  • Gross margin (gross profit as a percentage of net sales) was 62.5% in
    the full year and 63.7% in the fourth quarter, compared with 62.2% and
    64.1% in the respective prior-year periods. In both periods, favorable
    product input costs were partly or completely offset by the dilutive
    effects from increased wholesale distribution and increased wholesale
    sales of diamonds.
  • Selling, general and administrative ("SG&A") expenses increased 2% in
    both the full year and fourth quarter, reflecting a favorable
    comparison to the prior year, in which the Company had recorded
    certain impairment charges totaling $38 million (see "Non-GAAP
    Measures"); excluding those charges, SG&A expenses in the full year
    and fourth quarter were 5% and 10% above the respective prior-year
    periods as a result of higher labor and incentive compensation costs,
    higher store occupancy and depreciation expenses and increased
    marketing spending in both periods of 2017.
  • Earnings from operations as a percentage of net sales ("operating
    margin") was 19.1% in the full year and 23.0% in the fourth quarter,
    compared with 18.0% and 20.9% in the respective prior-year periods.
    Excluding the aforementioned prior-year charges (see "Non-GAAP
    Measures"), the operating margin in the full year rose fractionally
    from the prior year's 19.0% and in the fourth quarter declined from
    last year's 23.9%.
  • Interest and other expenses, net in the full year and fourth quarter
    were lower than the respective prior-year periods.
  • The effective income tax rate increased to 51.3% in the full year and
    to 79.4% in the fourth quarter, compared with 34.1% and 36.0% in the
    respective prior-year periods, largely as a result of charges related
    to the enactment of the U.S. Tax Cuts and Jobs Act. In addition to the
    impact of this new legislation, the effective income tax rate in the
    full year and fourth quarter was reduced by an increase in the
    domestic manufacturing deduction, lower state taxes and a benefit from
    the implementation of a new accounting standard related to the
    treatment of excess tax benefits from the vesting or exercise of
    share-based compensation, while the 2016 full year rate included a
    benefit from the conclusion of a tax examination.
  • The Company generated $932 million of cash flow from operations in
    2017 (versus $706 million in 2016) and, after subtracting $239 million
    of capital expenditures (versus $223 million in 2016), generated $693
    million in free cash flow (see "Non-GAAP Measures") in 2017 (versus
    $483 million in 2016).
  • Net inventories of $2.3 billion at January 31, 2018 were 4% above the
    prior year, and consistent with full year sales growth. The majority
    of the increase was attributed to currency translation.
  • The Company repurchased more than one million shares in the full year,
    including almost 400,000 shares in the fourth quarter, at a total cost
    of $99 million in the year and $39 million in the fourth quarter,
    representing an average price of $95 in the year and $99 in the fourth
    quarter. At January 31, 2018, $211 million remained available for
    repurchases under the program that authorizes the repurchase of up to
    $500 million of the Company's Common Stock and that expires on January
    31, 2019.
  • At January 31, 2018, cash and cash equivalents and short-term
    investments totaled $1.3 billion and total debt (short-term and
    long-term) was $1.0 billion; total debt as a percentage of
    stockholders' equity was 31% at January 31, 2018 versus 37% a year ago.

Fiscal 2018 Outlook:

Management's guidance for fiscal 2018 includes: (i) worldwide net sales
increasing by a mid-single-digit percentage over the prior year both as
reported and on a constant-exchange-rate basis; (ii) earnings before
income taxes equal to or slightly below the prior year; (iii) net
earnings increasing to a range of $4.25 - $4.45 per diluted share and
(iv) net earnings and EPS increasing in the first quarter with
subsequent quarters' earnings over the balance of the year affected by
the amount and timing of anticipated higher investment spending. These
expectations are approximations and are based on the Company's plans and
assumptions for the full year, including: (i) low-to-mid-single-digit
comparable sales growth (which, beginning in 2018, will include
Company-operated stores, e-commerce and catalog sales for the periods
that are presented), with varying degrees of growth in all regions; (ii)
worldwide gross retail square footage increasing 2%, net through nine
store openings, two closings and at least 15 relocations; (iii)
operating margin below the prior year as a result of SG&A expense growth
(affected by higher investment spending in technology, marketing
communications, visual merchandising, digital and store presentations)
at a higher rate than sales growth, partly offset by a higher gross
margin; (iv) interest and other expenses, net in line with the prior
year; (v) an effective income tax rate in the high 20's; (vi) no
meaningful effect in fiscal 2018 from the U.S. dollar versus foreign
currencies on a year-over-year basis; and (vii) minimal benefit to net
earnings per diluted share from share repurchases.

Management also expects: (i) net cash provided by operating activities
of $660 million and (ii) free cash flow (see "Non-GAAP Measures") of
$380 million. These expectations are approximations and are based on the
Company's plans and assumptions for the full year, including: (i) net
inventories increasing approximately in line with sales growth, (ii)
capital expenditures of $280 million and (iii) net earnings in line with
management's expectations, as described above.

Today's Conference Call:

The Company will conduct a conference call today at 8:30 a.m. (Eastern
Time) to review actual results and the outlook. Please click on http://investor.tiffany.com
("Events and Presentations").

Next Scheduled Announcement:

The Company expects to report its first quarter results on May 23, 2018.
To be notified of future announcements, please register at http://investor.tiffany.com
("E-Mail Alerts").

Tiffany is the internationally-renowned jeweler founded in New York in
1837. Through its subsidiaries, Tiffany & Co. manufactures products and
operates TIFFANY & CO. retail stores worldwide, and also engages in
direct selling through Internet, catalog and business gift operations.
Please visit www.tiffany.com
for additional information.

Forward-Looking Statements:

The historical trends and results reported in this document and on our
fourth quarter earnings conference call should not be considered an
indication of future performance. Further, statements contained in this
document that are not statements of historical fact, including those
that refer to plans, assumptions and expectations for the current fiscal
year and future periods, are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, but are not limited to, the
statements under "Fiscal 2018 Outlook," as well as statements that can
be identified by the use of words such as ‘expects,' ‘projects,'
‘anticipates,' ‘assumes,' ‘forecasts,' ‘plans,' ‘believes,' ‘intends,'
‘estimates,' ‘pursues,' ‘scheduled,' ‘continues,' ‘outlook,' ‘may,'
‘will,' ‘can,' ‘should' and variations of such words and similar
expressions. Examples of forward-looking statements include, but are not
limited to, statements we make regarding the Company's plans,
assumptions, expectations, beliefs and objectives with respect to store
openings and closings; product introductions; sales; sales growth; sales
trends; store traffic; the Company's strategy and initiatives and the
pace of execution thereon; the Company's objectives to compete in the
global luxury market and to improve financial performance; retail
prices; gross margin; operating margin; expenses; interest and other
expenses, net; effective income tax rate; the nature, amount or scope of
charges resulting from recent revisions to the U.S. tax code; net
earnings and net earnings per share; share count; inventories; capital
expenditures; cash flow; liquidity; currency translation; macroeconomic
conditions; growth opportunities; litigation outcomes and recovery
related thereto; contributions to Company pension plans; and certain
ongoing or planned real estate, product, marketing, retail, customer
experience, manufacturing, supply chain, information systems
development, upgrades and replacement, and other operational initiatives
and strategic priorities.

These forward-looking statements are based upon the current views and
plans of management, speak only as of the date on which they are made
and are subject to a number of risks and uncertainties, many of which
are outside of our control. Actual results could therefore differ
materially from the planned, assumed or expected results expressed in,
or implied by, these forward-looking statements. While we cannot predict
all of the factors that could form the basis of such differences, key
factors include, but are not limited to: global macroeconomic and
geopolitical developments; changes in interest and foreign currency
rates; changes in taxation policies and regulations (including changes
effected by the recent revisions to the U.S. tax code) or changes in the
guidance related to, or interpretation of, such policies and
regulations; shifting tourism trends; regional instability; violence
(including terrorist activities); political activities or events;
weather conditions that may affect local and tourist consumer spending;
changes in consumer confidence, preferences and shopping patterns, as
well as our ability to accurately predict and timely respond to such
changes; shifts in the Company's product and geographic sales mix;
variations in the cost and availability of diamonds, gemstones and
precious metals; adverse publicity regarding the Company and its
products, the Company's third-party vendors or the diamond or jewelry
industry more generally; any non-compliance by third-party vendors or
suppliers with the Company's sourcing and quality standards, codes of
conduct, or contractual requirements as well as applicable laws and
regulations; changes in our competitive landscape; disruptions impacting
the Company's business and operations; failure to successfully implement
or make changes to the Company's information systems; gains or losses in
the trading value of the Company's stock, which may impact the amount of
stock repurchased; and the Company's ability to successfully control
costs and execute on, and achieve the expected benefits from, the
operational initiatives and strategic priorities. Developments relating
to these and other factors may also warrant changes to the Company's
operating and strategic plans, including with respect to store openings,
closings and renovations, capital expenditures, information systems
development, inventory management, and continuing execution on, or
timing of, the aforementioned initiatives and priorities. Such changes
could also cause actual results to differ materially from the expected
results expressed in, or implied by, the forward-looking statements.

Additional information about potential risks and uncertainties that
could affect the Company's business and financial results is included
under "Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in the Company's Annual
Report on Form 10-K for the fiscal year ended January 31, 2018. Readers
of these documents should consider the risks, uncertainties and factors
outlined above and in the Form 10-K in evaluating, and are cautioned not
to place undue reliance on, the forward-looking statements contained
herein. The Company undertakes no obligation to update or revise any
forward-looking statements to reflect subsequent events or
circumstances, except as required by applicable law or regulation.

TIFFANY & CO. AND SUBSIDIARIES

(Unaudited)

NON-GAAP MEASURES

The Company reports information in accordance with U.S. Generally
Accepted Accounting Principles ("GAAP"). Internally, management also
monitors and measures its performance using certain sales and earnings
measures that include or exclude amounts, or are subject to adjustments
that have the effect of including or excluding amounts, from the most
directly comparable GAAP measure ("non-GAAP financial measures"). The
Company presents such non-GAAP financial measures in reporting its
financial results to provide investors with useful supplemental
information that will allow them to evaluate the Company's operating
results using the same measures that management uses to monitor and
measure its performance. The Company's management does not, nor does it
suggest that investors should, consider non-GAAP financial measures in
isolation from, or as a substitute for, financial information prepared
in accordance with GAAP. These non-GAAP financial measures presented
here may not be comparable to similarly-titled measures used by other
companies.

Net Sales

The Company's reported net sales reflect either a translation-related
benefit from strengthening foreign currencies or a detriment from a
strengthening U.S. dollar. Internally, management monitors and measures
its sales performance on a non-GAAP basis that eliminates the positive
or negative effects that result from translating sales made outside the
U.S. into U.S. dollars ("constant-exchange-rate basis"). Sales on a
constant-exchange-rate basis are calculated by taking the current year's
sales in local currencies and translating them into U.S. dollars using
the prior year's foreign currency exchange rates. Management believes
this constant-exchange-rate basis provides a useful supplemental basis
for the assessment of sales performance and of comparability between
reporting periods. The following table reconciles the sales percentage
increases (decreases) from the GAAP to the non-GAAP basis versus the
previous year:

     
Fourth Quarter 2017 vs. 2016 Full Year 2017 vs. 2016

GAAP
Reported

 

Translation
Effect

 

Constant-
Exchange-
Rate Basis

GAAP
Reported

 

Translation
Effect

 

Constant-
Exchange-
Rate Basis

Net Sales:

Worldwide 9 % 3 % 6 % 4 % % 4 %
Americas 5 5 2 1 1
Asia-Pacific 13 4 9 10 2 8
Japan 2 1 1 (1 ) (2 ) 1
Europe 13 9 4 6 3 3
Other 48 48 26 26
 

Comparable Store Sales:

Worldwide 3 % 2 % 1 % % % %
Americas 5 1 4 1 1
Asia-Pacific 3 4 (1 ) (1 ) 1 (2 )
Japan 1 1 (1 ) (3 ) 2
Europe 1 9 (8 ) (2 ) 2 (4 )
Other 6 6 2 2
 

Net Earnings

Internally, management monitors and measures its earnings performance
excluding certain items listed below. Management believes excluding such
items provides a useful supplemental basis for the assessment of the
Company's results relative to the corresponding period in the prior
year. The following tables reconcile certain GAAP amounts to non-GAAP
amounts:

       
(in millions, except per share amounts)     GAAP  

Charges related
to the
2017 Tax Act a

  Non-GAAP
Quarter Ended January 31, 2018
Provision for income taxes $ 239.5 $ (146.2 ) $ 93.3
Effective income tax rate       79.4 %     (48.5 )%     30.9 %
Net earnings       61.9       146.2       208.1  
Diluted earnings per share       0.50       1.17       1.67  
 
Year Ended January 31, 2018
Provision for income taxes $ 390.4 $ (146.2 ) $ 244.2
Effective income tax rate       51.3 %     (19.2 )%     32.1 %
Net earnings       370.1       146.2       516.3  
Diluted earnings per share       2.96       1.17       4.13  

a

  Net expense recognized in 2017 related to the estimated impact of
the U.S. Tax Cuts and Jobs Act ("2017 Tax Act"). The charges
recorded included:
  • Estimated tax expense of $94.8 million, or $0.76 per diluted share,
    for the impact of the reduction in the U.S. tax rate on the Company's
    deferred tax assets and liabilities;
  • Estimated tax expense of $56.0 million, or $0.45 per diluted share,
    for the one-time transition tax effected via a mandatory deemed
    repatriation of post-1986 undistributed foreign earnings and profits;
    and
  • A tax benefit of $4.6 million, or $0.04 per diluted share, resulting
    from the effect of the 21% statutory tax rate for the month of January
    2018 on the Company's annual statutory tax rate for the year ended
    January 31, 2018. Because the Company's fiscal year ended on January
    31, 2018, the Company's statutory tax rate for fiscal 2017 is 33.8%,
    rather than 35.0%.
       
(in millions, except per share amounts)     GAAP  

Impairment
charges b

  Non-GAAP
Quarter Ended January 31, 2017
Selling, general and administrative ("SG&A") expenses $ 531.7 $ (38.0 ) $ 493.7
As a % of sales       43.2 %         40.1 %
Earnings from operations 256.5 38.0 294.5
As a % of sales       20.9 %         23.9 %
Provision for income taxes c       88.7       14.0       102.7  
Net earnings       157.8       24.0       181.8  
Diluted earnings per share *       1.26       0.19       1.45  
 
Year Ended January 31, 2017
SG&A expenses $ 1,769.1 $ (38.0 ) $ 1,731.1
As a % of sales       44.2 %         43.3 %
Earnings from operations 721.2 38.0 759.2
As a % of sales       18.0 %         19.0 %
Provision for income taxes c       230.5       14.0       244.5  
Net earnings       446.1       24.0       470.1  
Diluted earnings per share *       3.55       0.19       3.75  
 

*

 

Amounts may not add due to rounding.

 

b

Expenses associated with the following:
  • $25.4 million of pre-tax expense ($16.0 million after tax expense, or
    $0.13 per diluted share) associated with an asset impairment charge
    related to software costs capitalized in connection with the
    development of a new finished goods inventory management and
    merchandising information system; and
  • $12.6 million of pre-tax expense ($8.0 million after tax expense, or
    $0.06 per diluted share) associated with impairment charges related to
    financing arrangements with diamond mining and exploration companies.
c   The income tax effect resulting from the adjustments has been
calculated as both current and deferred tax benefit (expense), based
upon the tax laws and statutory income tax rates applicable in the
tax jurisdiction(s) of the underlying adjustment.
 

Free Cash Flow

Internally, management monitors its cash flow on a non-GAAP basis. Free
cash flow is calculated by deducting capital expenditures from net cash
provided by operating activities. The ability to generate free cash flow
demonstrates how much cash the Company has available for discretionary
and non-discretionary purposes after deduction of capital expenditures.
The Company's operations require regular capital expenditures for the
opening, renovation and expansion of stores and distribution and
manufacturing facilities as well as ongoing investments in information
technology. Management believes this provides a useful supplemental
basis for assessing the Company's operating cash flows. The following
table reconciles GAAP net cash provided by operating activities to
non-GAAP free cash flow:

       
Years Ended January 31,
(in millions)         2018     2017  
Net cash provided by operating activities $           932.2   $           705.7
Less: Capital expenditures             (239.3 )               (222.8 )
Free cash flow a $           692.9     $           482.9  
a   Increases in net cash provided by operating activities and free cash
flow in 2017 reflected more effective management and timing of
payables and reduced payments for income taxes partly offset by
increased inventory purchases. Additionally, net cash provided by
operating activities and free cash flow in 2017 and 2016 included
voluntary cash contributions of $15.0 million and $120.0 million,
respectively, made by the Company to its U.S. pension plan.
 
     

TIFFANY & CO. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS

(Unaudited, in
millions, except per share amounts)

 

Three Months Ended
January 31,

Years Ended January 31,
2018   2017 2018   2017
Net sales $ 1,334.3 $ 1,229.6 $ 4,169.8 $ 4,001.8
 
Cost of sales   483.7   441.4   1,565.1   1,511.5
 
Gross profit 850.6 788.2 2,604.7 2,490.3
 
Selling, general and administrative expenses   543.4   531.7   1,810.2   1,769.1
 
Earnings from operations 307.2 256.5 794.5 721.2
 
Interest and other expenses, net   5.8   10.0   34.0   44.6
 
Earnings from operations before income taxes 301.4 246.5 760.5 676.6
 
Provision for income taxes   239.5   88.7   390.4   230.5
 
Net earnings $ 61.9 $ 157.8 $ 370.1 $ 446.1
 
Net earnings per share:
 
Basic $ 0.50 $ 1.27 $ 2.97 $ 3.57
Diluted $ 0.50 $ 1.26 $ 2.96 $ 3.55
 
Weighted-average number of common shares:
 
Basic 124.2 124.5 124.5 125.1
Diluted 124.9 125.0 125.1 125.5
 
     

TIFFANY & CO. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS

(Unaudited, in millions)

 
January 31, 2018 January 31, 2017

ASSETS

 
Current assets:
Cash and cash equivalents and short-term investments $ 1,291.2 $ 985.8
Accounts receivable, net 231.2 226.8
Inventories, net 2,253.5 2,157.6
Prepaid expenses and other current assets   207.4   203.4
 
Total current assets 3,983.3 3,573.6
 
Property, plant and equipment, net 990.5 931.8
Other assets, net   494.3   592.2
 
$ 5,468.1 $ 5,097.6
 

LIABILITIES AND STOCKHOLDERS' EQUITY

 
Current liabilities:
Short-term borrowings $ 120.6 $ 228.7
Accounts payable and accrued liabilities 437.4 312.8
Income taxes payable 89.4 22.1
Merchandise credits and deferred revenue   77.4   69.2
 
Total current liabilities 724.8 632.8
 
Long-term debt 882.9 878.4
Pension/postretirement benefit obligations 287.4 318.6
Other long-term liabilities 284.3 193.5
Deferred gains on sale-leasebacks 40.5 45.9
Stockholders' equity   3,248.2   3,028.4
 
$ 5,468.1 $ 5,097.6

TIF-E

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