Sears 2009 Annual Report Download - page 92

Download and view the complete annual report

Please find page 92 of the 2009 Sears annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
Minimum lease obligations, excluding taxes, insurance and other expenses payable directly by us, for leases
in effect as of January 30, 2010, were as follows:
Minimum
Lease
Commitments
millions Capital Operating
As of January 30, 2010
2010 ............................................................ $ 130 $ 810
2011 ............................................................ 125 736
2012 ............................................................ 123 636
2013 ............................................................ 115 540
2014 ............................................................ 108 438
Later years ....................................................... 488 2,626
Total minimum lease payments(1) ..................................... 1,089 5,786
Less—minimum sublease income ..................................... (272)
Net minimum lease payments ........................................ $5,514
Less:
Estimated executory costs ....................................... (122)
Interest at a weighted average rate of 7.6% .......................... (332)
Capital lease obligations ............................................ 635
Less current portion of capital lease obligations .......................... (60)
Long-term capital lease obligations .................................... $ 575
(1) Sears Canada: Total operating minimum lease payments of $476 million.
NOTE 16—RELATED PARTY DISCLOSURE
Our Board of Directors has delegated authority to direct investment of our surplus cash to Edward S. Lampert,
subject to various limitations that have been or may be from time to time adopted by the Board of Directors and/or
the Finance Committee of the Board of Directors. Mr. Lampert is Chairman of our Board of Directors and Finance
Committee and is the Chairman and Chief Executive Officer of ESL. Neither Mr. Lampert nor ESL will receive
compensation for any such investment activities undertaken on our behalf. ESL beneficially owned 57.4% of our
outstanding common stock as of January 30, 2010.
Further, to clarify the expectations that the Board of Directors has with respect to the investment of our
surplus cash, the Board has renounced, in accordance with Delaware law, any interest or expectancy of the
Company associated with any investment opportunities in securities that may come to the attention of
Mr. Lampert or any employee, officer, director or advisor to ESL and its affiliated investment entities who also
serves as an officer or director of the Company (each, a “Covered Party”) other than (a) investment opportunities
that come to such Covered Party’s attention directly and exclusively in such Covered Party’s capacity as a
director, officer or employee of the Company, (b) control investments in companies in the mass merchandising,
retailing, commercial appliance distribution, product protection agreements, residential and commercial product
installation and repair services and automotive repair and maintenance industries and (c) investment
opportunities in companies or assets with a significant role in our retailing business, including investment in real
estate currently leased by the Company or in suppliers for which the Company is a substantial customer
representing over 10% of such companies’ revenues, but excluding investments of ESL as of May 23, 2005.
92