SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
October 1, 2004
SAKS INCORPORATED
(Exact name of registrant as specified in its charter)
| TENNESSEE | 1-13113 | 62-0331040 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
750 Lakeshore Parkway Birmingham, Alabama | 35211 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (205) 940-4000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.05Costs Associated with Exit or Disposal Activities.
On October 1, 2004, Saks Incorporated announced the planned closure of eight Saks Fifth Avenue and three Off 5th retail stores and the conversion of one of the Saks Fifth Avenue store closings into an Off 5th retail store. The October 1, 2004 news release announcing the closures and conversion is incorporated herein by reference and is attached hereto as Exhibit 99.
In connection with the announced store closings and conversion, the Company expects to recognize pre-tax charges and gains as follows:
Pre-tax amounts expected to be recognized during 2004:
• | $ 25 million | Asset impairments (reflects announced closings and one unannounced store closing) | ||
• | $ 10 million | Inventory liquidation losses | ||
• | $ 5 million | Severance benefits and related cash store closing costs | ||
• | $ (5) million | Net (gain) losses from the disposition of owned real estate and settlement of lease obligations | ||
• | $ 35 million | Net charges (comprised of $35 million non-cash, $5 million cash charges, $5 million net cash gains) | ||
Some of these gains and losses could be delayed into 2005, based on the timing of the disposal transactions.
Pre-tax amounts expected to be recognized during 2005 and beyond:
• | $ 0 million | Asset impairments | ||
• | $ 3 million | Inventory liquidation losses | ||
• | $ 2 million | Severance benefits and related cash store closing costs | ||
• | $ 20 - $ 30 million | Disposition of leased real estate and related lease obligations | ||
• | $ 25 - $ 35 million | Net charges (comprised of $3 million non-cash, $22-$32 million cash) | ||
The Company is unable to determine the closure dates for the stores listed in Exhibit 99 as “to be determined.”
Item 2.06Material Impairments.
The response to Item 2.05 is incorporated here by reference.
Item 9.01Financial Statements and Exhibits.
(c) Exhibits
| Exhibit | Description of Document | |
| 99 | October 1, 2004 news release announcing the closure of Saks Fifth Avenue Enterprises stores. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| SAKS INCORPORATED | ||
Date: October 1, 2004 | /s/ Douglas E. Coltharp | |
| Douglas E. Coltharp | ||
| Executive Vice President and | ||
| Chief Financial Officer | ||