Sears 2007 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 our Executive Vice
President, Chief Administrative Officer while continuing his role as President and Chief Operating Officer of
ESL. Our Senior Vice President of Real Estate 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. 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 received their
proportionate share of the net settlement proceeds (approximately $12.9 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.
NOTE 18—SUPPLEMENTAL FINANCIAL INFORMATION
Other current liabilities as of February 2, 2008 and February 3, 2007 consisted of the following:
millions
February 2,
2008
February 3,
2007
Payroll and benefits payable .............................. $ 367 $ 533
Outstanding checks in excess of funds on deposit ............. 405 353
Current portion of self-insurance reserves ................... 377 370
Accrued expenses ...................................... 930 896
Other ................................................ 1,892 1,743
Total ............................................ $3,971 $3,895
Minority interest and other liabilities as of February 2, 2008 and February 3, 2007 consisted of the
following:
millions
February 2,
2008
February 3,
2007
Unearned revenues ..................................... $ 945 $ 928
Self-insurance reserves .................................. 802 772
Minority interest ....................................... 313 166
Other ................................................ 1,244 932
Total ............................................ $3,304 $2,798
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