Sears 2011 Annual Report Download - page 98

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
NOTE 17—SUMMARY OF SEGMENT DATA
These reportable segment classifications are based on our business formats, as described in Note 1. The
Kmart and Sears Canada formats each represent both an operating and reportable segment. The Sears Domestic
reportable segment consists of the aggregation of several business formats. These formats are evaluated by our
Chief Operating Decision Maker to make decisions about resource allocation and to assess performance. Each of
these segments derives its revenues from the sale of merchandise and related services to customers, primarily in
the United States and Canada. The merchandise and service categories are as follows:
(i) Hardlines—consists of appliances, consumer electronics, lawn and garden, tools and hardware,
automotive parts, household goods, toys, housewares and sporting goods;
(ii) Apparel and Soft Home—includes women’s, men’s, kids, footwear, jewelry, accessories and soft
home;
(iii) Food and Drug—consists of grocery and household, pharmacy and drugstore; and
(iv) Service and Other—includes repair, installation and automotive service and extended contract revenue.
2011
millions Kmart
Sears
Domestic
Sears
Canada
Sears
Holdings
Merchandise sales and services
Hardlines ............................................. $ 4,765 $13,022 $2,377 $20,164
Apparel and Soft Home .................................. 4,723 5,471 2,011 12,205
Food and Drug ......................................... 5,705 41 — 5,746
Service and Other ....................................... 92 3,115 245 3,452
Total merchandise sales and services .................... 15,285 21,649 4,633 41,567
Costs and expenses
Cost of sales, buying and occupancy ........................ 11,818 15,849 3,299 30,966
Selling and administrative ................................ 3,371 6,042 1,251 10,664
Depreciation and amortization ............................. 149 601 103 853
Impairment charges ..................................... 15 634 — 649
Gain on sales of assets ................................... (34) (30) — (64)
Total costs and expenses ............................. 15,319 23,096 4,653 43,068
Operating loss .............................................. $ (34) $ (1,447) $ (20) $ (1,501)
Total assets ................................................ $ 4,548 $13,913 $2,920 $21,381
Capital expenditures ......................................... $ 118 $ 225 $ 89 $ 432
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