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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
NOTE 19—SUMMARY OF SEGMENT DATA
The Company currently has three reportable segments: Kmart, Sears Domestic and Sears Canada, compared
to one segment in fiscal 2004. The accompanying summary of segment data for the year ended January 28, 2006
includes the results of operations of Sears subsequent to March 24, 2005, the date of the Merger. Sears Canada’s
results are reported to Holdings on a one-month lag. Therefore, the results of operations for the years ended
February 3, 2007 and January 28, 2006 include operating results for Sears Canada for the period from January 1,
2006 to December 30, 2006 and March 25, 2005 to December 31, 2005, respectively. As the Company had only
one reportable segment, Kmart, for fiscal 2004, segment data for this period would be the same as provided in the
consolidated financial statements, and is therefore not duplicated here.
2006
Kmart Sears Total
millions Domestic Canada
Merchandise sales and services ................................. $18,647 $29,179 $5,186 $53,012
Cost and expenses
Cost of sales, buying and occupancy ........................ 14,061 20,120 3,639 37,820
Selling and administrative ................................. 3,623 6,820 1,138 11,581
Depreciation and amortization ............................. 77 927 138 1,142
Gain on sales of assets .................................... (71) (11) — (82)
Restructuring charges .................................... 9 — 19 28
Total costs and expenses .............................. 17,699 27,856 4,934 50,489
Operating income ........................................... $ 948 $ 1,323 $ 252 $ 2,523
Total assets ................................................ $ 7,750 $19,209 $3,107 $30,066
2005
Kmart Sears Total
millions Domestic Canada
Merchandise sales and services ................................. $19,094 $25,868 $3,949 $48,911
Credit and financial products revenues ........................... — — 213 213
Total revenues .......................................... 19,094 25,868 4,162 49,124
Cost and expenses
Cost of sales, buying and occupancy ........................ 14,462 18,221 2,822 35,505
Selling and administrative ................................. 3,804 5,968 1,036 10,808
Depreciation and amortization ............................. 47 769 116 932
Loss (gain) on sales of assets .............................. (40) 1 — (39)
Gain on sales of business ................................. — — (317) (317)
Restructuring charges .................................... 54 — 57 111
Total costs and expenses .............................. 18,327 24,959 3,714 47,000
Operating income ........................................... $ 767 $ 909 $ 448 $ 2,124
Total assets ................................................ $ 7,325 $20,262 $2,986 $30,573
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