Sears 2006 Annual Report Download - page 93

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
Holdings employs certain employees of ESL. William C. Crowley is a director and the Executive Vice
President, Chief Administrative Officer and interim Chief Financial Officer of the Company while continuing his
role as President and Chief Operating Officer of ESL. The Senior Vice President of Real Estate for the Company
is also employed by ESL.
On January 18, 2007, Sears made a payment to plaintiffs in the case of In re: Sears, Roebuck and Co.
Securities Litigation of approximately $215 million pursuant to the terms of a settlement dated September 14,
2006. See Note 20. Certain affiliates of ESL owned shares of common stock of Sears before, during and after the
class period and were included in the class certified by the Court. Accordingly, these affiliates of ESL are
expected to receive their proportionate share of the net settlement proceeds (approximately $10.7 million) in
connection with the settlement.
As discussed in Note 7, on January 31, 2005, ESL affiliates converted, in accordance with their terms, the
outstanding Notes and six months of accrued interest into an aggregate of 6.3 million shares of Kmart common
stock. In consideration of the conversion of these Notes prior to maturity, ESL affiliates received a $3 million
payment from Kmart. The cash payment was equivalent to the approximate discounted, after-tax cost of the
future interest payments that would have otherwise been paid by Kmart to the ESL affiliates in the absence of the
early conversion.
As further detailed in Note 15, Kmart sold certain properties and assigned certain leased properties to Sears
in fiscal 2004. The Company recorded a $599 million gain in fiscal 2004 in connection with these transactions.
NOTE 18—SUPPLEMENTAL FINANCIAL INFORMATION
Other current liabilities as of February 3, 2007 and January 28, 2006 consisted of the following:
February 3,
2007
January 28,
2006
Payroll and benefits payable .............................. $ 535 $ 449
Outstanding checks in excess of funds on deposit ............. 353 444
Current portion of self-insurance reserves ................... 370 334
Accrued expenses ...................................... 1,256 1,307
Other ................................................ 1,451 1,383
Total ............................................ $3,965 $3,917
Minority interest and other liabilities as of February 3, 2007 and January 28, 2006 consisted of the
following:
February 3,
2007
January 28,
2006
Unearned revenues ..................................... $ 928 $ 887
Self-insurance reserves .................................. 772 753
Minority interest ....................................... 169 318
Other ................................................ 934 965
Total ............................................ $2,803 $2,923
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