Sears 2010 Annual Report Download - page 62

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
Sears Holdings Ownership of Sears Canada
At January 29, 2011 and January 30, 2010, Sears Holdings was the beneficial holder of approximately
97 million, or 92% and 79 million or 73%, respectively, of the common shares of Sears Canada.
NOTE 3—BORROWINGS
Total borrowings outstanding at January 29, 2011 and January 30, 2010 were $3.5 billion and $2.5 billion,
respectively. At January 29, 2011, total short-term borrowings were $360 million consisting of unsecured
commercial paper. At January 30, 2010, total short-term borrowings were $325 million, consisting of $119
million of secured borrowings and $206 million of unsecured commercial paper. The weighted-average annual
interest rate paid on short-term debt was 3.7% in 2010 and 3.0% in 2009.
Long-term debt is as follows:
ISSUE
January 29,
2011
January 30,
2010
millions
SEARS ROEBUCK ACCEPTANCE CORP.
6.50% to 7.50% Notes, due 2011 to 2043.................................. $ 822 $ 823
7.05% to 7.50% Medium-Term Notes, due 2012 to 2013 ..................... 80 83
SEARS HOLDINGS CORP.
6.625% Senior Secured Notes, due 2018 .................................. 1,246 —
SEARS DC CORP.
9.07% to 9.20% Medium-Term Notes, due 2012 ............................ 23 23
ORCHARD SUPPLY HARDWARE STORES CORPORATION
Credit Facility, due 2013 .............................................. 48 —
Real Estate Term Loan, variable interest rate above LIBOR, due 2013(1) ......... 50 —
Commercial Mortgage-Backed Loan, variable interest above LIBOR, due
2010(2) ........................................................... — 120
Senior Secured Term Loan, variable rate of interest above LIBOR, due 2013(3) .... 174 176
SEARS CANADA INC.
Credit Facility, due 2015 .............................................. 107 —
7.05% to 7.45% Medium-Term Notes, due 2010 ............................ — 281
CAPITALIZED LEASE OBLIGATIONS ..................................... 597 635
OTHER NOTES AND MORTGAGES ....................................... 25 39
Total long-term borrowings ................................................ 3,172 2,180
Current maturities ........................................................ (509) (482)
Long-term debt and capitalized lease obligations ................................ $2,663 $1,698
Weighted-average annual interest rate on long-term debt ......................... 6.8% 6.6%
(1) The Real Estate Term Loan is collateralized by certain real properties of our OSH wholly owned subsidiary
with a total carrying value of approximately $158 million at January 29, 2011. The Real Estate Term Loan
had an interest rate of LIBOR plus 4.25% at January 29, 2011.
(2) The Commercial Mortgage-Backed Loan was collateralized by certain real properties of our OSH wholly
owned subsidiary with a total carrying value of approximately $169 million at January 30, 2010. The
Commercial Mortgage-Backed Loan had an interest rate of LIBOR plus 1.625% at January 30, 2010.
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