Sears 2010 Annual Report Download - page 61

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
2010. As this update only related to financial statement disclosures, it did not have an impact on our results of
operations, cash flows or financial position. See Note 5 for further discussion regarding our fair value
measurements of financial assets and liabilities.
NOTE 2—SEARS CANADA
Acquisition of Noncontrolling Interest
During the first quarter of 2010, we acquired approximately 19 million additional common shares of Sears
Canada. We paid a total of $560 million for the additional shares and accounted for the acquisition of additional
interest in Sears Canada as an equity transaction in accordance with accounting standards applicable to
noncontrolling interests. Accordingly, we reclassified an accumulated other comprehensive loss from
noncontrolling interest to controlling interest in the Consolidated Statement of Equity at January 29, 2011.
During 2009, we acquired approximately 0.5 million of Sears Canada’s common shares in open market
transactions. We paid a total of $7 million for the additional shares and accounted for the acquisition of
additional interest in Sears Canada as an equity transaction in accordance with accounting standards on
noncontrolling interests.
Dividends
On May 18, 2010, Sears Canada announced that its Board of Directors declared a cash dividend of $3.50
Canadian per common share, or approximately $377 million Canadian ($352 million U.S.), which was paid on
June 4, 2010 to shareholders of record at the close of business on May 31, 2010. Accordingly, Holdings received
dividends of $318 million and minority shareholders in Sears Canada received dividends of $34 million during
the second quarter of 2010.
On September 10, 2010, Sears Canada announced that its Board of Directors declared an additional cash
dividend of $3.50 Canadian per common share, or approximately $377 million Canadian ($356 million U.S.),
which was paid on September 24, 2010 to shareholders of record at the close of business on September 22, 2010.
Accordingly, Holdings received dividends of $321 million and minority shareholders in Sears Canada received
dividends of $35 million during the third quarter of 2010.
Sears Canada declared and paid total dividends of $754 million Canadian ($708 million U.S.) during 2010,
of which Holdings received $639 million and minority shareholders received $69 million.
Sears Canada Share Repurchases
During the second quarter of 2010, Sears Canada filed a Normal Course Issuer Bid with the Toronto Stock
Exchange that permits it to purchase for cancellation up to 5% of its issued and outstanding common shares,
representing approximately 5.4 million common shares. The purchase authorization expires on May 24, 2011 or
on such earlier date as Sears Canada may complete its purchases pursuant to the Normal Course Issuer Bid. Sears
Canada may not purchase common shares under the Normal Course Issuer Bid if they cannot be purchased at
prices that they consider attractive, and decisions regarding the timing of purchases will be based on market
conditions and other factors. Sears Canada commenced the purchasing of shares under the Normal Course Issuer
Bid on September 20, 2010, and during 2010 purchased and cancelled approximately 2.2 million common shares
for $43 million.
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