Sears 2012 Annual Report Download - page 105

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
105
determinable, and an estimate of the probable and reasonably possible loss or range of loss in excess of amounts
accrued for such proceedings cannot be reasonably made, an adverse outcome from such proceedings could have a
material effect on our earnings in any given reporting period. However, in the opinion of our management, after
consulting with legal counsel, and taking into account insurance and reserves, the ultimate liability related to current
outstanding matters is not expected to have a material effect on our financial position, liquidity or capital resources.
NOTE 19—QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
2012
millions, except per share data First
Quarter Second
Quarter Third
Quarter Fourth
Quarter
Revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,270 $ 9,467 $ 8,857 $ 12,260
Cost of sales, buying and occupancy . . . . . . . . . . . . . . . . . . 6,703 6,936 6,604 9,097
Selling and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . 2,445 2,437 2,496 3,282
Net income (loss) from continuing operations attributable
to Holdings' shareholders . . . . . . . . . . . . . . . . . . . . . . . . 189 (132)(498)(489)
Basic net income (loss) per share from continuing
operations attributable to Holdings' shareholders . . . . . . 1.78 (1.25)(4.70)(4.61)
Diluted net income (loss) per share from continuing
operations attributable to Holdings' shareholders . . . . . . 1.78 (1.25)(4.70)(4.61)
2011
millions, except per share data First
Quarter Second
Quarter Third
Quarter Fourth
Quarter
Revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,540 $ 10,138 $ 9,405 $ 12,484
Cost of sales, buying and occupancy . . . . . . . . . . . . . . . . . . 6,996 7,537 7,011 9,422
Selling and administrative . . . . . . . . . . . . . . . . . . . . . . . . . . 2,507 2,601 2,635 2,921
Net loss from continuing operations attributable to
Holdings' shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . (165)(152)(410)(2,386)
Basic net loss per share from continuing operations
attributable to Holdings' shareholders. . . . . . . . . . . . . . . (1.53)(1.42)(3.85)(22.47)
Diluted net loss per share from continuing operations
attributable to Holdings' shareholders. . . . . . . . . . . . . . . (1.53)(1.42)(3.85)(22.47)
Earnings (loss) per share amounts for each quarter are required to be computed independently and may not
equal the amount computed for the total year.
NOTE 20—GUARANTOR/NON-GUARANTOR SUBSIDIARY FINANCIAL INFORMATION
At February 2, 2013, the principal amount outstanding of the Company’s 6 5/8% senior secured notes due 2018
was $1.24 billion. These notes were issued in 2010 by Sears Holdings Corporation (“Parent”). The 6 5/8% Notes are
guaranteed by certain of our 100% owned domestic subsidiaries that own the collateral for the notes, as well as by
Sears Holdings Management Corporation and SRAC (the “guarantor subsidiaries”). The following condensed
consolidated financial information presents the Condensed Consolidating Balance Sheets at February 2, 2013 and
January 28, 2012, and the Condensed Consolidating Statements of Operations, the Consolidating Statements of
Comprehensive Income (Loss) and the Condensed Consolidating Statements of Cash flows for 2012, 2011 and 2010
of (i) Parent; (ii) the guarantor subsidiaries; (iii) the non-guarantor subsidiaries; (iv) eliminations and (v) the
Company on a consolidated basis.
The following condensed consolidated financial statements had total assets and total liabilities of
approximately $650 million and $115 million, respectively, at January 28, 2012 attributable to SHO. Merchandise