Sears 2008 Annual Report Download - page 93

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Sears Holdings Corporation
Schedule II—Valuation and Qualifying Accounts
Fiscal Years 2008, 2007 and 2006
Millions
Balance at
beginning
of period
Additions
charged to
costs and
expenses (Deductions)
Balance at
end of period
Allowance for Doubtful Accounts(1):
Fiscal 2008 ..................................... $ 37 $18 $ (13) $ 42
Fiscal 2007 ..................................... 29 11 (3) 37
Fiscal 2006 ..................................... 35 64 (70) 29
Allowance for Deferred Tax Assets(2):
Fiscal 2008 ..................................... 120 17 (20) 117
Fiscal 2007 ..................................... 216 37 (133) 120
Fiscal 2006 ..................................... 215 1 — 216
(1) Charges to the account are for the purposes for which the reserves were created.
(2) At the end of fiscal 2007, we had a state net operating loss (“NOL”) deferred tax asset of $178 million and a
valuation allowance of $120 million. In fiscal 2008, there was a net addition to the state NOL deferred tax
asset of $8 million, bringing the ending balance to $186 million. The additional NOL’s were the result of
additional state losses incurred in fiscal 2008, netted against NOL expirations. The valuation allowance
decreased by $3 million, to $117 million. Additional state valuation allowances were created against the
state losses incurred in fiscal 2008 and were netted against state valuation allowances reversals due to
expiring state NOL’s in fiscal 2008.
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