Sears 2009 Annual Report Download - page 83

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
our Board of Directors authorized the repurchase of up to an additional $5.0 billion of common stock, including
an additional $500 million authorization in fiscal 2009, for a total authorization since inception of the program of
$6.0 billion. During fiscal 2009, we repurchased approximately 7.1 million of our common shares at a total cost
of approximately $424 million, or an average price of $59.81 per share. During fiscal 2008, we repurchased
approximately 10.3 million of our common shares at a total cost of approximately $678 million, or an average
price of $65.58 per share. During fiscal 2007, we repurchased approximately 21.7 million of our common shares
at a total cost of approximately $2.9 billion, or an average price of $134.65 per share. As of January 30, 2010, we
had approximately $581 million of remaining authorization under this program.
The share repurchase program has no stated expiration date and share repurchases may be implemented
using a variety of methods, which may include open market purchases, privately negotiated transactions, block
trades, accelerated share repurchase transactions, the purchase of call options, the sale of put options or
otherwise, or by any combination of such methods.
Accumulated Other Comprehensive Income (Loss)
The following table displays the components of accumulated other comprehensive income (loss):
millions
January 30,
2010
January 31,
2009
February 2,
2008
Pension and postretirement adjustments (net of tax of $(451), $(324) and
$73, respectively) ............................................ $(686) $(489) $115
Cumulative unrealized derivative gain (net of tax of $6, $2 and $2,
respectively) ................................................ 9 3 3
Currency translation adjustments (net of tax of $(29), $(84) and $33,
respectively) ................................................ (44) (126) (49)
Accumulated other comprehensive income (loss) ..................... $(721) $(612) $ 69
Pension and postretirement adjustments relate to the net actuarial gain or loss on our pension and
postretirement plans recognized as a component of accumulated other comprehensive income.
On February 1, 2009, we adopted a newly issued accounting standard for noncontrolling interests that
requires us to classify noncontrolling interests as part of equity and to disclose the amount of other
comprehensive income attributable to noncontrolling interests. Accumulated other comprehensive income
attributable to noncontrolling interests at January 30, 2010, January 31, 2009 and February 2, 2008 was a
negative $132 million, $98 million and $62 million, respectively.
NOTE 10—BANKRUPTCY CLAIMS RESOLUTION AND SETTLEMENTS
Background
On May 6, 2003, Kmart Corporation (the “Predecessor Company”), a predecessor operating company of
Kmart, emerged from reorganization proceedings under Chapter 11 of the federal bankruptcy laws pursuant to
the terms of a plan of reorganization (the “Plan of Reorganization”). The Predecessor Company is an indirect,
wholly owned subsidiary of Kmart and an indirect, wholly owned subsidiary of Holdings. Upon emergence, all
of the then outstanding equity securities of the Predecessor Company, as well as substantially all of its
pre-petition liabilities were cancelled. On the day of emergence, 89.7 million shares of Kmart common stock and
options to purchase 8.2 million shares of Kmart common stock were issued pursuant to the Plan of
Reorganization, of which 31.9 million shares of the Kmart common stock issued were allocated to satisfy the
pre-petition claims of unsecured Class 5 creditors.
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