Sears 2009 Annual Report Download - page 13

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Kmart Sears Domestic Sears Canada
Total
Discount
Stores
Super
Centers
Full-line
Mall Stores
Sears
Essentials/
Grand Stores
Specialty
Stores
Full-
line
Stores
Specialty
Stores
Owned .................. 174 22 516 17 63 14 2 808
Leased .................. 1,118 13 332 43 312 108 73 1,999
Independently-owned and
operated stores ......... — — — — 909 — 205 1,114
Stores as of January 30,
2010 .................. 1,292 35 848 60 1,284 122 280 3,921
In addition, as of January 30, 2010, we had 39 domestic supply chain distribution centers, of which 16 were
owned and 23 were leased for terms ranging from 1 to 12 years. Of the total, 11 primarily support Kmart
locations, 24 primarily support Sears stores and four support both Sears and Kmart stores. In addition, we had
485 domestic store warehouses, customer call centers and service facilities (including 26 showrooms related to
our appliance builder/distributor business), most of which are leased for terms ranging generally from three to
five years or are part of other facilities included in the above table.
Our principal executive offices are located on a 200-acre site owned by us at the Prairie Stone office park in
Hoffman Estates, Illinois. The complex consists of six interconnected office buildings totaling approximately two
million gross square feet of office space. We also own an 86,000 square foot office building in Troy, Michigan.
As of January 30, 2010, Sears Canada operated a total of 122 full-line stores, 280 specialty stores (including
48 furniture and appliance stores, 186 dealer stores operated under independent local ownership, four appliance
and mattress stores, 30 Corbeil stores, and 12 outlet stores), 22 floor covering stores, 1,853 catalog pick-up
locations and 108 travel offices.
In August 2007, Sears Canada sold its headquarters office building and adjacent land in Toronto, Ontario.
Sears Canada leased back the property under a leaseback agreement through March 2009, at which time it
finished its relocation of all head office operations to previously underutilized space in the Toronto Eaton Centre,
Ontario. See Note 12 to our Consolidated Financial Statements for further information on this transaction.
A description of our leasing arrangements and commitments appears in Note 15 of Notes to Consolidated
Financial Statements.
Item 3. Legal Proceedings
Item 103 of SEC Regulation S-K requires that we disclose legal proceedings to which the Company and a
governmental authority is a party and that arise under laws dealing with the discharge of materials into the
environment or the protection of the environment, if the proceeding reasonably involves potential monetary
sanctions of $100,000 or more. Disclosure also is required as to any such proceedings known by us to be
contemplated by governmental authorities. In that connection, we note that we have received a pre-filing notice
from the United States Environmental Protection Agency, seeking information and documents concerning the
labeling of a private brand pesticide. The parties have agreed to settle the matter and are negotiating a settlement
agreement.
See Part II, Item 8, “Financial Statements—Notes to Consolidated Financial Statements,” Note 10—
“Bankruptcy Claims Resolution and Settlements,” and Note 19—“Legal Proceedings,” for additional information
regarding legal proceedings, which information is incorporated herein by this reference.
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