Sears 2009 Annual Report Download - page 94

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
2008
millions Kmart
Sears
Domestic
Sears
Canada
Sears
Holdings
Merchandise sales and services ................................. $16,219 $25,315 $5,236 $46,770
Costs and expenses
Cost of sales, buying and occupancy ........................ 12,442 18,084 3,592 34,118
Selling and administrative ................................. 3,456 6,415 1,189 11,060
Depreciation and amortization ............................. 138 724 119 981
Impairment charges ...................................... 21 339 — 360
Gain on sales of assets .................................... (10) (10) (31) (51)
Total costs and expenses .............................. 16,047 25,552 4,869 46,468
Operating income (loss) ...................................... $ 172 $ (237) $ 367 $ 302
Total assets ................................................ $ 5,968 $16,089 $3,285 $25,342
2007
millions Kmart
Sears
Domestic
Sears
Canada
Sears
Holdings
Merchandise sales and services ................................. $17,256 $27,845 $5,602 $50,703
Costs and expenses
Cost of sales, buying and occupancy ........................ 13,202 19,589 3,847 36,638
Selling and administrative ................................. 3,537 6,698 1,233 11,468
Depreciation and amortization ............................. 116 802 131 1,049
Gain on sales of assets .................................... (1) (28) (9) (38)
Total costs and expenses .............................. 16,854 27,061 5,202 49,117
Operating income ........................................... $ 402 $ 784 $ 400 $ 1,586
Total assets ................................................ $ 6,275 $17,635 $3,487 $27,397
NOTE 19—LEGAL PROCEEDINGS
Maurice Levie, individually and on behalf of all others similarly situated v. Sears, Roebuck & Co., et al.—
Following the announcement of the Merger on November 17, 2004, a lawsuit was filed in the United States
District Court for the Northern District of Illinois relating to the transaction. This suit asserts claims under the
federal securities laws on behalf of a class of former Sears’ stockholders against Sears, Alan J. Lacy, Edward S.
Lampert and ESL Partners, L.P. for allegedly failing to make timely disclosure of merger discussions during the
period September 9 through November 16, 2004, and seeks damages. On July 17, 2007, the Court granted in part
and denied in part plaintiffs’ motion for class certification, certifying a class of Sears’ stockholders who sold
shares of Sears’ stock between September 9, 2004 and November 16, 2004, excluding short sellers who covered
their positions during the class period. On December 18, 2009, the Court entered an order granting defendants’
motions for summary judgment. Plaintiffs filed a notice of appeal on January 15, 2010. Briefing on the appeal
continues.
In re: Sears Holdings Corporation Securities Litigation—In May and July 2006, two class action lawsuits,
which each name as defendants Sears Holdings Corporation and Edward S. Lampert, were filed in United States
District Court for the Southern District of New York, purportedly on behalf of a class of persons that sold shares
of Kmart Holding Corporation stock on or after May 6, 2003 through June 4, 2004. The plaintiffs in each case
allege that Kmart’s Plan of Reorganization and Disclosure Statement filed on January 24, 2003 and amended on
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