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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
the gain on sales of assets included a gain recognized on a Sears Auto Center we sold in October 2006, at which
time we leased back the property for a period of time. Given the terms of the contract, for accounting purposes,
the excess of proceeds received over the carrying value of the associated property was deferred. We closed our
operations at this location during the first quarter of 2010 and, as a result, recognized a gain of $35 million on
this sale at that time. During 2009, the gain on sales of assets included a $44 million gain recognized by Sears
Canada on the sale of its former headquarters. During 2008, the gain on sale of assets included a $32 million
pre-tax gain recognized on the sale of Sears Canada’s Calgary downtown full-line store.
In August 2007, Sears Canada sold its headquarters office building and adjacent land in Toronto, Ontario for
proceeds of $81 million Canadian, net of closing costs. 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. The carrying value of the property was approximately
$35 million at February 2, 2008. Given the terms of the leaseback, for accounting purposes, the excess of
proceeds received over the carrying value of the associated property was deferred, and the resulting gain was
recognized in 2009 given that Sears Canada no longer occupied the associated property.
We classify a portion of our property as held for sale when criteria set out under accounting standards
governing the disposal of long-lived assets have been met. Property held for sale at January 29, 2011 and
January 30, 2010 totaled $36 million and $38 million, respectively.
Property Acquisitions
During 2008, we purchased 9 previously leased operating properties for $22 million. During 2010 and 2009,
we did not purchase any previously leased operating properties. In the normal course of business, we consider
opportunities to purchase leased operating properties, as well as offers to sell owned, or assign leased, operating
and non-operating properties. These transactions may, individually or in the aggregate, result in material
proceeds or outlays of cash. In addition, we review leases that will expire in the short-term in order to determine
the appropriate action to take with respect to them.
NOTE 13—GOODWILL AND INTANGIBLE ASSETS
The following summarizes our intangible assets at January 29, 2011 and January 30, 2010, respectively, the
amortization expenses recorded for the years then ended, as well as our estimated amortization expense for the
next five years and thereafter.
January 29, 2011 January 30, 2010
millions
Weighted
Average Life
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Amortized intangible assets
Favorable lease rights ................. 23 $ 450 $226 $ 451 $194
Contractual arrangements and customer
lists .............................. 9 226 146 226 121
Trade names ......................... 8 75 51 75 40
751 423 752 355
Unamortized intangible assets
Trade names ......................... 2,811 — 2,811 —
Total ................................... $3,562 $423 $3,563 $355
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