Sears 2010 Annual Report Download - page 12

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 ................. 177 20 514 17 90 14 2 834
Leased ................. 1,101 9 328 35 324 108 72 1,977
Independently-owned and
operated stores ........ — — — — 940 — 287 1,227
Stores at January 29,
2011 ................ 1,278 29 842 52 1,354 122 361 4,038
In addition, at January 29, 2011, we had 38 domestic supply chain distribution centers, of which 12 were
owned and 26 were leased for terms ranging from 3 to 5 years. Of the total, 11 primarily support Kmart store
locations, 23 primarily support Sears stores and 4 support both Sears and Kmart stores. We also had 480
domestic store warehouses, customer call centers and service facilities (including 26 facilities related to our
appliance builder/distributor business), most of which are leased for terms ranging generally from 3 to 5 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. In addition, we have a campus in Dodgeville, Wisconsin supporting the
corporate headquarters, distribution center and customer sales/service operations for Land’s End. We also own an
86,000 square foot office building in Troy, Michigan. We operate numerous buying offices throughout the world
that procure product internationally, as well as an information technology center in Pune, India.
At January 29, 2011, Sears Canada operated a total of 122 full-line stores, 361 specialty stores (including 48
furniture and appliance stores, 268 dealer stores operated under independent local ownership, 4 appliance and
mattress stores, 30 Corbeil stores, and 11 outlet stores), 20 floor covering stores, 1,822 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 our Orchard Supply Hardware
subsidiary (“OSH”) has received a notice of violation from the California South Coast Air Quality Management
District (“SCAQMD”) alleging that OSH stores that are located in the SCAQMD jurisdiction sold architectural
coating products that exceed the current SCAQMD limitations on volatile organic compounds. The parties are
currently negotiating toward a resolution of this matter.
See Part II, Item 8, “Financial Statements—Notes to Consolidated Financial Statements,” Note 19—“Legal
Proceedings,” for additional information regarding legal proceedings, which information is incorporated herein
by this reference.
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