Sears 2011 Annual Report Download - page 92

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
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 12—GOODWILL AND INTANGIBLE ASSETS
The following summarizes our intangible assets at January 28, 2012 and January 29, 2011, 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 28, 2012 January 29, 2011
millions
Weighted
Average Life
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Amortizing intangible assets
Favorable lease rights ................. 27 $ 360 $194 $ 361 $175
Contractual arrangements and customer
lists .............................. 9 224 170 226 146
Trade names ......................... 7 74 60 75 51
658 424 662 372
Non-amortizing intangible assets
Trade names ......................... 2,703 — 2,703 —
Total ................................... $3,361 $424 $3,365 $372
Annual Amortization Expense
2011 ............................................................ $ 56
2010 ............................................................ 60
2009 ............................................................ 65
Estimated Amortization
2012 ............................................................ $ 52
2013 ............................................................ 30
2014 ............................................................ 22
2015 ............................................................ 11
2016 ............................................................ 8
Thereafter ....................................................... 111
Goodwill is the excess of the purchase price over the fair value of the net assets acquired in business
combinations accounted for under the purchase method. We recorded $1.7 billion in goodwill in connection with
the Merger. We previously impaired goodwill of Orchard in the amount of $262 million. We recorded $12
million in connection with our acquisition of an additional 3% interest in Sears Canada during 2008.
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