Sears 2011 Annual Report Download - page 69

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
At January 28, 2012, long-term debt maturities for the next five years and thereafter were as follows:
millions
2012 .............................................................. $ 230
2013 .............................................................. 70
2014 .............................................................. 54
2015 .............................................................. 150
2016 .............................................................. 40
Thereafter .......................................................... 1,774
$2,318
Interest
Interest expense for years 2011, 2010 and 2009 was as follows:
millions 2011 2010 2009
COMPONENTS OF INTEREST EXPENSE
Interest expense ................................................. $248 $242 $203
Accretion of lease obligations at net present value ...................... 20 21 22
Amortization of debt issuance costs ................................. 21 30 23
Interest expense ................................................. $289 $293 $248
Debt Repurchase Authorization
In 2005, our Finance Committee of the Board of Directors authorized the repurchase, subject to market
conditions and other factors, of up to $500 million of our outstanding indebtedness in open market or privately
negotiated transactions. Our wholly owned finance subsidiary, Sears Roebuck Acceptance Corp. (“SRAC”), has
repurchased $215 million of its outstanding notes, including $6 million repurchased during 2009. In 2011, Sears
Holdings repurchased $10 million of senior secured notes, recognizing a gain of $2 million. The unused balance
of this authorization is $275 million.
Unsecured Commercial Paper
We borrow through the commercial paper markets. At January 28, 2012 and January 29, 2011, we had
outstanding commercial paper borrowings of $337 million and $360 million, respectively. ESL Investments, Inc.
held $250 million and $240 million at January 28, 2012 and January 29, 2011, respectively. See Note 15 for
further discussion of these borrowings.
Domestic Credit Agreement
During the first quarter of 2011, we increased the borrowing capacity and extended the maturity date of our
domestic credit agreement (the “Original Domestic Credit Agreement”) by entering into an amended credit
agreement (the “Amended Domestic Credit Agreement”). The Amended Domestic Credit Agreement increased
the borrowing capacity of the facility to $3.275 billion from $2.4 billion and extended its expiration date to April
2016 from June 2012. We view this credit facility as our most cost efficient funding mechanism and therefore
use it as a primary source of funding.
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