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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
Accumulated Other Comprehensive Income (Loss)
The following table displays the components of accumulated other comprehensive income (loss):
millions
January 29,
2011
January 30,
2010
January 31,
2009
Pension and postretirement adjustments (net of tax of $(480), $(451) and
$(324), respectively) .......................................... $(783) $(686) $(489)
Cumulative unrealized derivative gain (net of tax of $0, $6 and $2,
respectively) ................................................ 1 9 3
Currency translation adjustments (net of tax of $(7), $(29) and $(84),
respectively ................................................. 3 (44) (126)
Accumulated other comprehensive income (loss) ..................... $(779) $(721) $(612)
Pension and postretirement adjustments relate to the net actuarial gain or loss on our pension and
postretirement plans recognized as a component of accumulated other comprehensive income.
On February 1, 2009, we adopted a newly issued accounting standard for noncontrolling interests that
requires us to classify noncontrolling interests as part of equity and to disclose the amount of other
comprehensive income attributable to noncontrolling interests. Accumulated other comprehensive income
attributable to noncontrolling interests at January 29, 2011, January 30, 2010 and January 31, 2009 was $(4)
million, $(132) million and $(98) million, respectively.
NOTE 10—BANKRUPTCY CLAIMS RESOLUTION AND SETTLEMENTS
Background
On May 6, 2003, Kmart Corporation (the “Predecessor Company”), a predecessor operating company of
Kmart, emerged from reorganization proceedings under Chapter 11 of the federal bankruptcy laws pursuant to
the terms of a plan of reorganization (the “Plan of Reorganization”). The Predecessor Company is an indirect,
wholly owned subsidiary of Kmart and an indirect, wholly owned subsidiary of Holdings. Upon emergence, all
of the then outstanding equity securities of the Predecessor Company, as well as substantially all of its
pre-petition liabilities were cancelled. On the day of emergence, 89.7 million shares of Kmart common stock and
options to purchase 8.2 million shares of Kmart common stock were issued pursuant to the Plan of
Reorganization, of which 31.9 million shares of the Kmart common stock issued were allocated to satisfy the
pre-petition claims of unsecured Class 5 creditors.
Additional Treasury Shares related to Kmart Bankruptcy Resolution
During the third quarter of 2008, we completed the settlement of substantially all of the claims associated
with the discharge of the Predecessor Company’s liabilities subject to compromise pursuant to the Plan of
Reorganization. Accordingly, the remaining 2.1 million of the 31.9 million shares set aside for distribution have
been distributed to holders of Class 5 claims. During the second quarter of 2010 we received and recorded as
treasury stock 628,513 of these shares which were returned as unclaimed. The actual amount of allowed Class 5
claims was approximately $4 billion, which is less than the $4.3 billion estimate provided for in the Plan of
Reorganization.
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