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8-K - FORM 8-K - BORDERS GROUP INC | k49584e8vk.htm |
Exhibit
99.2
News Release
Investor Contact:
|
Media Contact: | |||
Glen Tomaszewski
|
Mary Davis | |||
(734) 477-4750
|
(734) 477-1374 |
Borders Group Reports Second Quarter 2010 Results
Conference call today, Sept. 1, at 10 a.m. Eastern
ANN ARBOR, Mich., Sept. 1, 2010Borders Group, Inc. (NYSE: BGP) today reported results for its
second quarter ended July 31, 2010. Highlights include:
| Second quarter sales were $526.1 million, down 11.5% from the same period a year ago, with comparable store sales declining by 6.8%. Borders.com sales increased 56.2% over the prior year, to $15.5 million. | ||
| The company generated a loss from continuing operations in the second quarter of $51.6 million or $0.74 per share compared to a loss of $45.1 million or $0.75 per share for the same period a year ago. | ||
| Debt net of cash decreased compared to the first quarter by 13.7%, or $41.5 million. It increased by 2.7% compared to the second quarter of last year, to $262.1 million. |
While we continue to succeed in strengthening our financial structure, we are highly focused on
driving profitable sales and increasing market share, said Mike Edwards, CEO of Borders. Based on
extensive consumer research, we are doing a number of things to excite our customers going into the
critical holiday shopping season, including launching our new Borders Rewards program, which
includes the new paid Borders Rewards Plus. Recognizing that online and digital will be a
significant part of our business moving forward, we are focused on increasing our share of the
eBook market by growing our digital offerings to position Borders as the preferred destination for
digital reading. Yet as we grow our online and digital business, we cannot underestimate the
importance of our brick and mortar presence. This will be top of mind as we work on improving the
in-store experience by shifting our product mix to include additional non-book products that are
both compelling and relevant, and providing an escape for our customers though an inspirational
in-store environment and consistent customer service.
Second Quarter Results
All earnings/loss figures reported throughout this news release are on a GAAP basis unless
otherwise noted, and exclude the results of discontinued operations. Beginning with this news
release, the company will report results as a single segment. This change is the result of the
sale of the companys Paperchase subsidiary during the second quarter of 2010, which constituted
the majority of the previously-reported International segment. The company classified the sale and
operations of Paperchase as a discontinued operation.
Second quarter sales were $526.1 million, down 11.5% from the same period a year ago, with
comparable store sales declining by 6.8%. Sales were positively impacted by Borders.com, which saw
a second quarter increase of 56.2% over the prior year, to $15.5 million.
The company generated a second quarter loss from continuing operations of $51.6 million or $0.74
per share compared to a loss of $45.1 million or $0.75 per share for the same period a year ago,
driven primarily by decreased gross margin. As a percent of sales, gross margin decreased from
23.0% to 19.3% in the second quarter, resulting from increased promotional discounts and the
de-leveraging of fixed occupancy costs caused by negative comparable store sales.
SG&A expense as a percent of sales improved in the second quarter to 26.5% from 27.3%, and declined
in dollars by $22.7 million. This was due to the companys continuing aggressive expense reduction
and store closure efforts, which were partially offset by de-leveraging due to negative sales
trends.
Second quarter capital expenditures were $7.7 million compared to $1.2 million for the same period
a year ago. Spending in the second quarter of 2010 was focused on the development of the Borders
eBook store, which launched during the second quarter, and spending on Area-e shops.
Debt net of cash at the end of the quarter totaled $262.1 million compared to $255.3 million last
year, a $6.8 million or 2.7% increase. The company was able to reduce the amount outstanding under
its $90.0 million term loan by $25.0 million through the sale of its Paperchase subsidiary for
$31.2 million in the quarter.
Borders Focus on the Future
Expanding Digital, Online and Social Media
The company is leveraging its strong brand recognition among book lovers particularly its
millions of Rewards members to position Borders as the preferred destination for both digital
content and devices. Borders recently launched eBook store has been very well received by
customers. In line with its vision to be a trusted retailer that provides customers with a variety
of eReading devices at prices that fit virtually all budgets, the company is now offering six
devices including the Kobo eReader, Aluratek Libre eBook Reader Pro, Velocity Micro Cruz Reader
and Velocity Micro Cruz Tablet as well as two Sony devices. Sales of the Kobo as well as
pre-orders for the Aluratek and Velocity Micro devices have exceeded expectations. The company
expects to announce additional devices in the coming weeks.
The company is taking further steps to make eReading accessible for virtually everyone by lowering
the price of the Kobo unit to $129.99 and the Libre Pro to $99.99, which will make it among the
most aggressively priced devices in the industry. Borders will complete its digital initiative
with the roll out of its Area-e digital shops, which will conclude in early October. The shops will
provide an enjoyable environment where customers can experience a variety of different eReaders,
guided by knowledgeable staff, who can demonstrate the devices and answer questions.
Borders is now an industry authority on digital content and devices, said Edwards. We offer a
large assortment of eReaders at price points that fit with most budgets and we are exploring adding
new devices and brands in the fourth quarter as part of our device neutral strategy. As our newly
launched eBook store and mobile apps gain traction, we believe we hold a strong growth position
within a digital ecosphere that is rapidly evolving and expanding.
The company is currently executing programs to increase conversion rates and drive increased
traffic to Borders.com. It recently introduced its new Borders Textbook Marketplace, which
features more than 1.4 million titles and a textbook buyback option. Borders is also expanding its
merchandise mix online to include high growth and higher margin product.
Understanding the importance of connecting with customers where they spend their time, the company
is expanding its social media footprint. It recently introduced the Facebook Like feature on all
title detail pages, allowing customers to share their favorite books and other products with their
friends on Facebook. The company also recently revamped its Facebook page to include rich content
around topics and themes important to Borders customers. In just one week after the launch of the
new page, the company grew its fan base by more than 100,000 members.
Committed to Improving the Retail Experience and Strengthening the Borders Brand
Borders research has indicated that most customers come to Borders to escape the pressures of
everyday life. To promote a relaxed and hassle-free shopping experience, the company is enhancing
its stores with new signage that improves navigation and highlights value offerings. Borders is
also reorganizing sections to promote discovery and enhance shopability. Recognizing that it must
improve store productivity to address the top line, the company is also shifting its merchandising
mix to include more non-book products that complement the Borders brand.
The Childrens section represents a key growth platform. To that end, the company is taking steps
to provide a retail experience that is both fun and educational for kids and their families by
expanding the assortment of educational kids toys and games. In addition, the company recently
launched a partnership with Build-A-Bear Workshop to include several Build-A-Bear craft kits as
well as other products in the Childrens area. Borders is also continuing to focus on products that
increase the average ticket and provide clear margin improvements including growing its Bargain and
value book category.
In addition to growing and expanding into categories that delight customers, the company is also
discovering new ways to enhance guest satisfaction. Borders will soon announce a new customer
service program that will complement the companys successful and the industrys only In-Stock
Guarantee, which means that customers always find what they are looking for when they shop with
Borders.
We are taking steps to transform our retail model, in part through high-impact strategic
partnerships, like Build-A-Bear Workshop, that enable us to offer a compelling mix of lifestyle
focused products, continued Edwards. By offering a rich and relevant selection of product both
book and non-book together with an exceptional customer experience, we will differentiate Borders
from others in the marketplace.
The customer research we have gathered will inform these changes and ultimately redefine the
Borders brand going into 2011 and beyond.
New Loyalty Program with a Focus on Customer Segmentation
As previously announced, today the company launched a new paid customer loyalty program Borders
Rewards Plus with an annual fee of $20 as well as a free enhanced program. Borders is the only
major bookseller to offer both a paid and free program. In addition, the company is using
segmentation to drive customer engagement and sales through e-mails that include targeted discounts
as well as personalized content such as specific title recommendations and local event
notifications. Nearly 40 million people have signed up for the program since it originally launched
in 2006.
Conference Call Today, Sept. 1 at 10 a.m. Eastern
Management will hold a conference call today at 10 a.m. Eastern. This call will be webcast by
Thomson Financial and can be accessed at www.bordersgroupinc.com. A replay will be accessible on
the Web site through Sept. 15. In addition, a replay phone service will be available toll-free at
(800) 642-1687, passcode 91309569; or for international calls at (706) 645-9291, passcode 91309569.
The phone service will be available through Sept. 15 until 11:59 p.m. Eastern.
About Borders Group
Headquartered in Ann Arbor, Mich., Borders Group, Inc. (NYSE: BGP) is a leading specialty retailer
of books as well as other educational and entertainment items. The company employs approximately
19,500 throughout the U.S., primarily in its Borders® and Waldenbooks® stores. Online shopping is
offered through borders.com. Find author interviews and vibrant discussions of the products we and
our customers are passionate about online at facebook.com/borders, twitter.com/borders and
youtube.com/bordersmedia. For more information about the company, visit
http://www.borders.com/investors.
Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. One can identify these forward-looking statements by the use of
words such as expects, planning, preparing, possibility, opportunity, goal, will,
may, intend, anticipates, working toward and other words of similar meaning. One can also
identify them by the fact that they do not relate strictly to historical or current facts. These
statements are likely to address matters such as the companys future financial condition and
performance (including earnings per share, liquidity, cash flows, debt levels, market share growth
and other sales information, inventory levels and capital expenditures), its strategic initiatives
such as the expansion of product categories, including eBook content and eReaders and contemplated
strategic partnerships. These statements are subject to risks and uncertainties that could cause
actual results and plans to differ materially from those included in the companys forward-looking
statements.
These risks and uncertainties include, but are not limited to, consumer demand for the companys
products, particularly during the holiday season, which is believed to be related to general
economic and geopolitical conditions, competition and other factors; the availability of adequate
capital including vendor credit to fund the companys operations and to carry out its strategic
plans; adverse litigation results or other claims; the performance of the companys information
technology systems; with respect to eBook content and eReaders, the availability to the company of
anticipated content levels and a variety of competitive devices; and, with respect to strategic
partnerships, the ability to identify and reach agreements with acceptable partners.
The companys periodic reports filed from time to time with the Securities and Exchange Commission
contain more detailed discussions of these and other risk factors that could cause actual results
and plans to differ materially from those included in the forward-looking statements, and those
discussions are incorporated herein by reference. The company does not undertake any obligation to
update forward-looking statements.
###
Borders Group, Inc. Financial Statements
(amounts in millions, except per share amounts)
Unaudited
Sales and Earnings Summary
(amounts in millions, except per share amounts)
Unaudited
Sales and Earnings Summary
Quarter Ended | Six Months Ended | |||||||||||||||
July 31, 2010 (1) | August 1, 2009 (1) | July 31, 2010 (1) | August 1, 2009 (1) | |||||||||||||
Sales |
$ | 526.1 | $ | 594.2 | $ | 1,046.1 | $ | 1,214.0 | ||||||||
Other revenue |
4.3 | 7.6 | 9.0 | 15.9 | ||||||||||||
Total revenue |
530.4 | 601.8 | 1,055.1 | 1,229.9 | ||||||||||||
Cost of goods sold, including occupancy costs |
428.8 | 465.5 | 852.3 | 956.9 | ||||||||||||
Gross margin |
101.6 | 136.3 | 202.8 | 273.0 | ||||||||||||
Selling, general and administrative expenses |
139.3 | 162.0 | 274.8 | 328.4 | ||||||||||||
Asset impairments and other writedowns |
| | | 0.1 | ||||||||||||
Operating loss |
(37.7 | ) | (25.7 | ) | (72.0 | ) | (55.5 | ) | ||||||||
Interest expense |
9.0 | 5.2 | 15.9 | 11.7 | ||||||||||||
Warrant/put expense |
4.5 | 14.7 | 27.9 | 63.8 | ||||||||||||
Total interest expense |
13.5 | 19.9 | 43.8 | 75.5 | ||||||||||||
Loss before income taxes |
(51.2 | ) | (45.6 | ) | (115.8 | ) | (131.0 | ) | ||||||||
Income taxes (benefit) |
0.4 | (0.5 | ) | 0.8 | 1.1 | |||||||||||
Loss from continuing operations |
$ | (51.6 | ) | $ | (45.1 | ) | $ | (116.6 | ) | $ | (132.1 | ) | ||||
Income (loss) from operations of
discontinued operations (net of tax) |
(2.9 | ) | (0.5 | ) | (2.4 | ) | 0.5 | |||||||||
Gain from disposal of discontinued
operations (net of tax) |
7.8 | | 8.2 | | ||||||||||||
Gain (loss) from discontinued
operations (net of tax) |
4.9 | (0.5 | ) | 5.8 | 0.5 | |||||||||||
Net loss |
$ | (46.7 | ) | $ | (45.6 | ) | $ | (110.8 | ) | $ | (131.6 | ) | ||||
Basic EPS from continuing operations |
$ | (0.74 | ) | $ | (0.75 | ) | $ | (1.80 | ) | $ | (2.20 | ) | ||||
Basic EPS from discontinued operations |
$ | 0.07 | $ | (0.01 | ) | $ | 0.09 | $ | 0.01 | |||||||
Basic EPS including discontinued operations |
$ | (0.67 | ) | $ | (0.76 | ) | $ | (1.71 | ) | $ | (2.19 | ) | ||||
Basic weighted avg. common shares |
69.5 | 60.2 | 64.8 | 60.1 | ||||||||||||
Comparable Store Sales |
||||||||||||||||
Bookstores |
(6.8 | )% | (17.0 | )% | (9.1 | )% | (14.8 | )% |
Sales and Earnings Summary (As Percentage of Total Sales)
Quarter Ended | Six Months Ended | |||||||||||||||
July 31, 2010 (1) | August 1, 2009 (1) | July 31, 2010 (1) | August 1, 2009 (1) | |||||||||||||
Sales |
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Other revenue |
0.8 | 1.3 | 0.9 | 1.3 | ||||||||||||
Total revenue |
100.8 | 101.3 | 100.9 | 101.3 | ||||||||||||
Cost of goods sold, including occupancy costs |
81.5 | 78.3 | 81.5 | 78.8 | ||||||||||||
Gross margin |
19.3 | 23.0 | 19.4 | 22.5 | ||||||||||||
Selling, general and administrative expenses |
26.5 | 27.3 | 26.3 | 27.1 | ||||||||||||
Asset impairments and other writedowns |
| | | | ||||||||||||
Operating loss |
(7.2 | ) | (4.3 | ) | (6.9 | ) | (4.6 | ) | ||||||||
Interest expense |
1.7 | 0.9 | 1.5 | 1.0 | ||||||||||||
Warrant/put expense |
0.9 | 2.5 | 2.7 | 5.2 | ||||||||||||
Total interest expense |
2.6 | 3.4 | 4.2 | 6.2 | ||||||||||||
Loss before income taxes |
(9.8 | ) | (7.7 | ) | (11.1 | ) | (10.8 | ) | ||||||||
Income taxes (benefit) |
| (0.1 | ) | | 0.1 | |||||||||||
Loss from continuing operations |
(9.8 | )% | (7.6 | )% | (11.1 | )% | (10.9 | )% | ||||||||
(1) | The results of Paperchase Products, Ltd. are reported as discontinued operations. |
Borders Group, Inc. Financial Statements
(dollars in millions)
Unaudited
Condensed Consolidated Balance Sheets
(dollars in millions)
Unaudited
Condensed Consolidated Balance Sheets
July 31, | August 1, | Jan. 30, | ||||||||||
2010 | 2009 | 2010 | ||||||||||
Assets |
||||||||||||
Cash and cash equivalents |
$ | 25.1 | $ | 32.3 | $ | 17.9 | ||||||
Merchandise inventories |
798.2 | 868.3 | 854.1 | |||||||||
Other current assets |
57.1 | 58.5 | 66.1 | |||||||||
Deferred income taxes |
| | 1.1 | |||||||||
Current assets of discontinued operations |
| 45.9 | 39.5 | |||||||||
Property and equipment, net |
339.0 | 426.2 | 372.8 | |||||||||
Other assets and deferred charges |
51.1 | 40.7 | 35.9 | |||||||||
Noncurrent assets of discontinued operations |
| 25.6 | 28.2 | |||||||||
Total assets |
$ | 1,270.5 | $ | 1,497.5 | $ | 1,415.6 | ||||||
Liabilities and Stockholders Equity |
||||||||||||
Short-term borrowings and current portion of long-term debt |
$ | 231.2 | $ | 281.3 | $ | 275.4 | ||||||
Trade accounts payable |
348.5 | 401.4 | 345.1 | |||||||||
Other current liabilities |
240.7 | 271.8 | 284.7 | |||||||||
Current liabilities of discontinued operations |
| 11.2 | 12.9 | |||||||||
Long-term debt |
56.0 | 6.3 | 6.6 | |||||||||
Other long-term liabilities |
360.7 | 382.9 | 325.6 | |||||||||
Long-term liabilities of discontinued operations |
| 5.7 | 7.0 | |||||||||
Total liabilities |
1,237.1 | 1,360.6 | 1,257.3 | |||||||||
Total stockholders equity |
33.4 | 136.9 | 158.3 | |||||||||
Total liabilities and stockholders equity |
$ | 1,270.5 | $ | 1,497.5 | $ | 1,415.6 | ||||||
Certain reclassifications have been made to conform to current year presentation.
Store Activity Summary
Quarter Ended | Six Months Ended | Year Ended | ||||||||||||||||||
July 31, | August 1, | July 31, | August 1, | January 30, | ||||||||||||||||
2010 | 2009 | 2010 | 2009 | 2010 | ||||||||||||||||
Beginning number of stores |
680 | 894 | 686 | 904 | 904 | |||||||||||||||
Openings |
1 | | 1 | 1 | 1 | |||||||||||||||
Closings |
(2 | ) | (8 | ) | (8 | ) | (19 | ) | (219 | ) | ||||||||||
Ending number of stores |
679 | 886 | 679 | 886 | 686 | |||||||||||||||
Ending square footage (in millions) |
13.2 | 14.0 | 13.2 | 14.0 | 13.2 | |||||||||||||||
Borders Group, Inc. Financial Statements
(dollars in millions)
Unaudited
Condensed Consolidated Statements of Cash Flows
(dollars in millions)
Unaudited
Condensed Consolidated Statements of Cash Flows
Quarter Ended | Six Months Ended | |||||||||||||||
July 31, 2010 | August 1, 2009 | July 31, 2010 | August 1, 2009 | |||||||||||||
CASH PROVIDED BY (USED FOR): |
||||||||||||||||
Loss from continuing operations |
$ | (51.6 | ) | $ | (45.1 | ) | $ | (116.6 | ) | $ | (132.1 | ) | ||||
OPERATIONS |
||||||||||||||||
Adjustments
to reconcile loss from continuing operations to operating cash flows: |
||||||||||||||||
Depreciation |
19.1 | 24.5 | 38.7 | 51.0 | ||||||||||||
Loss on disposal of assets |
0.6 | 0.5 | 0.7 | 0.5 | ||||||||||||
Stock-based compensation cost |
0.2 | 0.7 | 0.2 | 0.1 | ||||||||||||
Increase in warrant liability |
2.2 | 14.7 | 25.6 | 51.9 | ||||||||||||
Change in other long-term assets, liabilities and deferred
charges |
(3.2 | ) | (0.7 | ) | (5.3 | ) | (12.2 | ) | ||||||||
Write-off of intangible asset |
| | | 16.2 | ||||||||||||
Asset impairment and other writedowns |
| | | 0.1 | ||||||||||||
Decrease in inventories |
19.3 | 4.7 | 55.9 | 26.5 | ||||||||||||
Increase in accounts payable |
10.2 | 33.2 | 3.4 | 54.3 | ||||||||||||
Change in current assets and current liabilities |
(8.6 | ) | 2.3 | (35.0 | ) | (17.6 | ) | |||||||||
Net cash provided by (used for) operating activities of continuing
operations |
(11.8 | ) | 34.8 | (32.4 | ) | 38.7 | ||||||||||
INVESTING |
||||||||||||||||
Capital expenditures |
(7.7 | ) | (1.2 | ) | (10.5 | ) | (3.1 | ) | ||||||||
Proceeds from the sale of discontinued operations |
31.2 | | 31.2 | | ||||||||||||
Net cash (used for) provided by investing activities of
continuing operations |
23.5 | (1.2 | ) | 20.7 | (3.1 | ) | ||||||||||
FINANCING |
||||||||||||||||
Net repayment of credit facility |
(18.3 | ) | (38.9 | ) | (9.5 | ) | (46.4 | ) | ||||||||
Repayment of prior term loan financing |
| | (42.5 | ) | | |||||||||||
Proceeds from the issuance of short-term debt |
| | 10.0 | | ||||||||||||
Proceeds from the issuance of long-term debt |
| | 80.0 | | ||||||||||||
Deferred financing costs paid |
(0.3 | ) | | (24.4 | ) | | ||||||||||
Repayment of capital lease obligations |
(0.2 | ) | (0.5 | ) | (0.4 | ) | (0.6 | ) | ||||||||
Repayment of short-term debt |
(2.8 | ) | | (2.8 | ) | | ||||||||||
Repayment of long-term debt |
(22.2 | ) | | (22.2 | ) | | ||||||||||
Issuance of common stock |
0.1 | (0.1 | ) | 0.4 | (0.4 | ) | ||||||||||
Equity transaction |
25.0 | | 25.0 | | ||||||||||||
Net cash (used for) provided by financing activities of
continuing operations |
(18.7 | ) | (39.5 | ) | 13.6 | (47.4 | ) | |||||||||
Net cash provided by (used for) discontinued operations |
5.7 | 0.6 | 5.3 | 0.5 | ||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
(1.3 | ) | (5.3 | ) | 7.2 | (11.3 | ) | |||||||||
Cash and cash equivalents at beginning of period |
26.4 | 37.6 | 17.9 | 43.6 | ||||||||||||
Cash and cash equivalents at end of period |
$ | 25.1 | $ | 32.3 | $ | 25.1 | $ | 32.3 | ||||||||
Borders Group, Inc. Disclosures Regarding Non-GAAP Financial Information
(dollars in millions, except per share amounts)
Unaudited
(dollars in millions, except per share amounts)
Unaudited
We disclose two measures of operating performance within this news release, including (i)
adjusted EBITDA and (ii) debt net of cash, both of which are considered non-GAAP measures within
the meaning of Regulation G of the Securities and Exchange Commission and which are not measures of
operating performance calculated in accordance with GAAP. We believe excluding certain recurring
non-operating items, as detailed in the following tables, from our financial results provides
investors with a clearer perspective of the current underlying operating performance of the
company, a clearer comparison to current period results and greater transparency regarding
supplemental information used by management in its financial and operational decision-making. We
use these non-GAAP financial measures as an internal measure of business operating performance, to
establish operational goals and to analyze trends.
A reconciliation of each non-GAAP measure disclosed in this news release to its most comparable
measure calculated in accordance with GAAP follows below.
(i) Loss from continuing operations is the financial measure calculated and presented in accordance
with GAAP that is the most comparable to adjusted EBITDA. The table below reconciles adjusted
EBITDA to loss from continuing operations.
Quarter Ended | Six Months Ended | |||||||||||||||
July 31, 2010 | August 1, 2009 | July 31, 2010 | August 1, 2009 | |||||||||||||
Reconciliation of adjusted EBITDA |
||||||||||||||||
Loss from continuing operations |
$ | (51.6 | ) | $ | (45.1 | ) | $ | (116.6 | ) | $ | (132.1 | ) | ||||
Adjustments to reconcile loss from continuing operations to
adjusted EBITDA: |
||||||||||||||||
Income taxes |
0.4 | (0.5 | ) | 0.8 | 1.1 | |||||||||||
Total interest expense |
13.5 | 19.9 | 43.8 | 75.5 | ||||||||||||
Depreciation |
19.1 | 24.5 | 38.7 | 51.0 | ||||||||||||
EBITDA |
(18.6 | ) | (1.2 | ) | (33.3 | ) | (4.5 | ) | ||||||||
Consulting, professional and other fees (Gross margin and SG&A) |
2.4 | 4.7 | 2.9 | 8.9 | ||||||||||||
Store closure and related costs (Gross margin and SG&A) |
4.2 | 0.9 | 6.2 | 0.7 | ||||||||||||
Severance and other compensation costs (Gross margin and SG&A) |
2.7 | 1.6 | 3.6 | 2.0 | ||||||||||||
Asset impairments and other writedowns (Asset impairments) |
| | | 0.1 | ||||||||||||
Adjusted EBITDA |
$ | (9.3 | ) | $ | 6.0 | $ | (20.6 | ) | $ | 7.2 | ||||||
(ii) | Short-term borrowings and the current portion of long-term debt, long-term debt and cash and cash equivalents are the measures calculated and presented in accordance with GAAP that are the most comparable to debt net of cash. The table below reconciles debt net of cash to short-term borrowings and the current portion of long-term debt, long-term debt and cash and cash equivalents. |
July 31, 2010 | May 1, 2010 | August 1, 2009 | ||||||||||
Reconciliation of debt net of cash |
||||||||||||
Short-term borrowings and current portion of long-term debt |
$ | 231.2 | $ | 251.9 | $ | 281.3 | ||||||
Long-term debt |
56.0 | 78.1 | 6.3 | |||||||||
Total debt |
287.2 | 330.0 | 287.6 | |||||||||
Less: cash and cash equivalents |
25.1 | 26.4 | 32.3 | |||||||||
Debt net of cash |
$ | 262.1 | $ | 303.6 | $ | 255.3 | ||||||