Sears 2007 Annual Report Download - page 51

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FIN 48 prescribes that a company shall recognize the benefit associated with a previously unrecognized tax
position when management determines the position has been effectively settled. The FASB issued FASB Staff
Position (“FSP”) FIN 48-1, “Definition of Settlement in FASB Interpretation No. 48,” in May 2007 in order to
clarify that assessing whether a tax position has been effectively settled is a matter of judgment. Furthermore, the
FASB noted that a tax position could be effectively settled prior to the completion of an examination or audit by
a taxing authority. FSP FIN 48-1 provides a set of conditions that must be evaluated when determining whether a
tax position has been effectively settled. We contemplated the provisions of FSP FIN 48-1 upon the initial
adoption of FIN 48.
Cautionary Statement Regarding Forward-Looking Information
Certain statements made in this Annual Report on Form 10-K and in other public announcements by us
contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are subject to risks and uncertainties that may cause our actual results, performance
or achievements to be materially different from any future results, performance or achievements expressed or
implied by these forward-looking statements. Forward-looking statements include information concerning our
future financial performance, business strategy, plans, goals and objectives. Statements preceded or followed by,
or that otherwise include, the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “plan,” “forecast,”
“is likely to,” “projected” and similar expressions or future or conditional verbs such as “will,” “should,”
“would,” “may” and “could” are generally forward-looking in nature and not historical facts. Such statements
include, but are not limited to, statements about the expected performance of various business initiatives and
future financial and operating results. Such statements are based upon the current beliefs and expectations of
Holdings’ management and are subject to significant risks and uncertainties that may cause actual results and
events to differ materially from those set forth in the forward-looking statements. A detailed discussion of these
and other risks and uncertainties that could cause actual results and events to differ materially from those set
forth in the forward-looking statements is included in Part I, Item 1A “Risk Factors.” While we believe that our
forecasts and assumptions are reasonable, we caution that actual results may differ materially. We intend the
forward-looking statements to speak only as of the time made and do not undertake to update or revise them as
more information becomes available.
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