Sears may see up to $143 mln in Y2K costs
Monday November 9, 11:09 am Eastern Time
WASHINGTON, Nov 9 (Reuters) - Sears, Roebuck and Co, the second largest U.S. retailer, said on Monday it has spent $67 million so far to get its computers ready for the year 2000 changeover, but the cost could reach $143 million.
The company's Y2K spending has included $41 million thus far on an accelerated, planned development of new information systems with ''improved business functionality'' to replace those that were not Year 2000 compliant, Sears said in its quarterly report filed with the Securities and Exchange Commission.
That cost could rise to $80 million, the retailer said, adding that its information systems includes proprietary and third party computer systems and related hardware, software and data and telephone networks.
In addition, Sears, headquartered in Hoffman Estates, Ill., has spent $26 million through October 3 out of an expected $63 million on other parts of its Y2K plan, which focuses on three areas -- information systems, business management and vendor relations.
The company's year 2000 costs have been and and are expected to be funded with cash flows from operations, it said.
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