Sears 2007 Annual Report Download - page 72

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
As of February 2, 2008, all actions related to these activities have been substantially completed. The
remaining reserve balance of $2 million at February 2, 2008 represents payments to be made in fiscal 2008 in
accordance with our severance and relocation plans.
Following is a summary of the fiscal 2007 activity in the reserves established for these integration and
productivity initiatives:
millions
Estimated Total
Cumulative
Costs to be
Incurred
Cumulative Costs
recognized
through
February 2, 2008
Ending Reserve
Balance
February 3, 2007
Fiscal 2007
Additions
Fiscal 2007
Cash
Payments
Ending Reserve
Balance
February 2, 2008
Kmart ............ $ 63 $ 63 $ 4 $— $ 4 $—
Sears Domestic ..... 59 59 — — — —
Sears Canada ...... 76 76 4 — 2 2
Total ............. $198 $198 $ 8 $— $ 6 $ 2
NOTE 7—BORROWINGS
Total borrowings outstanding as of February 2, 2008 and February 3, 2007 were $3.0 billion and
$3.5 billion, respectively. Short-term borrowings consist primarily of unsecured commercial paper of
$162 million and $94 million at February 2, 2008 and February 3, 2007, respectively. The weighted-average
annual interest rate paid on short-term debt was 5.5% in fiscal 2007 and 5.2% in fiscal 2006.
Long-term debt is as follows:
ISSUE
February 2,
2008
February 3,
2007
millions
SEARS ROEBUCK ACCEPTANCE CORP.
6.25% to 7.50% Notes, due 2008 to 2043.................................. $1,123 $1,398
5.20% to 7.50% Medium-Term Notes, due 2008 to 2013 ..................... 256 414
SEARS DC CORP.
9.07% to 9.20% Medium-Term Notes, due 2012 ............................ 25 26
ORCHARD SUPPLY HARDWARE STORES CORPORATION
Commercial Mortgage-Backed Loan, variable interest rate above LIBOR, due
2008(1) ........................................................... 120 120
Senior Secured Revolving Line of Credit, variable interest rate above LIBOR ..... — 34
Senior Secured Term Loan, variable rate of interest above LIBOR, due 2013(2) .... 198 200
SEARS CANADA INC.
6.55% to 7.45% Debentures and Medium-Term Notes, due 2008 to 2010 ........ 312 375
CAPITALIZED LEASE OBLIGATIONS ..................................... 749 797
OTHER NOTES AND MORTGAGES ....................................... 65 90
Total long-term borrowings ................................................ 2,848 3,454
Current maturities ........................................................ (242) (611)
Long-term debt and capitalized lease obligations ................................ $2,606 $2,843
Weighted-average annual interest rate on long-term debt ......................... 6.8% 6.8%
(1) The Commercial Mortgage-Backed Loan is collateralized by certain real properties of an Orchard Supply
Hardware Stores Corporation (“OSH”) wholly-owned subsidiary with a total carrying value of
72