Sears 2008 Annual Report Download - page 21

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In addition to these resources, we believe that we have a solid balance sheet, as we own substantial
inventory and real estate assets and have only $2.3 billion of debt ($2.9 billion with capital leases).
RESULTS OF OPERATIONS
Fiscal Year
Our fiscal year end is the Saturday closest to January 31st. In fiscal 2006, the Saturday closest to January 31st
was February 3, 2007 and, as a result, fiscal 2006 consisted of 53 weeks. Both fiscal 2008 and fiscal 2007
consisted of 52 weeks. Unless otherwise stated, references to years in this report relate to fiscal years rather than
to calendar years. The following fiscal periods are presented in this report.
Fiscal year Ended Weeks
2008 .............................................. January 31, 2009 52
2007 .............................................. February 2, 2008 52
2006 .............................................. February 3, 2007 53
Prior to fiscal 2007, Sears Canada’s fiscal year end was the Saturday closest to December 31st and therefore
we consolidated Sears Canada’s results on a one-month lag. During the fourth quarter of 2007, Sears Canada
changed its fiscal year end from the Saturday nearest December 31st to the Saturday nearest January 31st. The
change in Sears Canada’s year end was considered a preferable change in accounting principle as it allows a full
seasonal cycle, including the liquidation of holiday merchandise, for Sears Canada to be included in the results of
Holdings. Furthermore, Sears Canada’s fiscal year end is now aligned with the fiscal year end of Holdings and its
results are no longer accounted for on a one-month lag. As required by SFAS No. 154, “Accounting Changes and
Error Corrections—A Replacement of APB Opinion No. 20 and SFAS No. 3,” this change has been
retrospectively applied to all prior year amounts included in the financial statements of Sears Canada for fiscal
2006. See Note 2 of Notes to Consolidated Financial Statements for further explanation of this change.
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