Sears 2011 Annual Report Download - page 51

However, indefinite-lived intangible impairment charges may be recognized in future periods to the extent
changes in factors or circumstances occur, including deterioration in the macroeconomic environment, retail
industry, deterioration in our performance or our future projections, or changes in our plans for one or more
indefinite-lived intangible asset.
New Accounting Pronouncements
See Note 1 of Notes to Consolidated Financial Statements for information regarding new accounting
pronouncements.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Certain statements made in this Annual Report on Form 10-K and in other public announcements by us
contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are subject to risks and uncertainties that may cause our actual results, performance
or achievements to be materially different from any future results, performance or achievements expressed or
implied by these forward-looking statements. Forward-looking statements include information concerning our
future financial performance, business strategy, plans, goals and objectives. Statements preceded or followed by,
or that otherwise include, the words “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plans,”
“forecast,” “is likely to” and similar expressions or future or conditional verbs such as “will,” “may” and “could”
are generally forward-looking in nature and not historical facts. Such statements are based upon the current
beliefs and expectations of Holdings’ management and are subject to significant risks and uncertainties. Actual
results may differ materially from those set forth in the forward-looking statements.
The following factors, among others, could cause actual results to differ from those set forth in the forward-
looking statements: changes in our accounting and other assumptions with respect to the value of our Hometown
Store and Outlet businesses and certain hardware stores to be separated from Holdings (“Newco”); the actual
valuation of Newco by our shareholders and other third parties; the extent to which we are able to complete the
Newco transaction on terms that are favorable to us; the operational and financial profile of Holdings or any of
its businesses and Newco after giving effect to the Newco transaction; the ability of Newco to operate as an
independent entity, including its ability to source merchandise on acceptable terms; the timing and uncertainty of
completion of the real estate and Newco transactions; our ability to offer merchandise and services that our
customers want, including our proprietary brand products; our ability to successfully implement initiatives to
improve inventory management and other capabilities; competitive conditions in the retail and related services
industries; worldwide economic conditions and business uncertainty, the availability of consumer and
commercial credit, changes in consumer confidence, tastes, preferences and spending, and changes in vendor
relationships, including the lack of willingness of our vendors to provide acceptable payment terms; our ability to
access capital markets and other financing sources; our ability to properly implement and realize the expected
benefits from the actions that are intended to address our operating performance; the impact of seasonal buying
patterns, including seasonal fluctuations due to weather conditions, which are difficult to forecast with certainty;
our dependence on sources outside the United States for significant amounts of our merchandise; our extensive
reliance on computer systems to process transactions, summarize results and manage our business; our ability to
maintain the security of member and customer, associate and company information; our reliance on third parties
to provide us with services in connection with the administration of certain aspects of our business; impairment
charges for goodwill and intangible assets or fixed-asset impairment for long-lived assets; our ability to attract,
motivate and retain key executives and other associates; our ability to protect or preserve the image of our brands
and our intellectual property rights; the outcome of pending and/or future legal proceedings, including product
liability claims and bankruptcy claims, including proceedings with respect to which the parties have reached a
preliminary settlement; and the timing and amount of required pension plan funding. In addition, the descriptions
of our agreements, including our credit facility, are qualified in their entirety by reference to the actual terms of
the agreements.
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