Sears 2012 Annual Report Download - page 14

14
Kmart Sears Domestic Sears Canada
Total
Discount
Stores Super Centers Full-line Mall Stores
Sears
Essentials/
Grand Stores Specialty Stores Full-line Stores Specialty Stores
Owned . . . . . . . . . . . . . . . . . . . 184 19 497 8 26 14 2 750
Leased . . . . . . . . . . . . . . . . . . . 1,012 6 291 2 28 104 77 1,520
Independently-owned and
operated stores . . . . . . . . . . . — — — — — — 278 278
Stores at February 2, 2013. . . . 1,196 25 788 10 54 118 357 2,548
In addition, at February 2, 2013, we had 38 domestic supply chain distribution centers, of which 12 were
owned and 26 were leased for terms ranging from three to five years. Of the total, 10 primarily support Kmart stores,
24 primarily support Sears stores and four support both Sears and Kmart stores. We also had 465 domestic store
warehouses, customer call centers and service facilities (including 17 facilities related to our appliance builder/
distributor business), most of which are leased for terms ranging generally from three to five years or are part of
other facilities included in the above table. Many of our facilities are also used to support our online channels.
Our principal executive offices are located on a 200-acre site owned by us at the Prairie Stone office park in
Hoffman Estates, Illinois. The complex consists of six interconnected office buildings totaling approximately two
million gross square feet of office space. In addition, we have a campus in Dodgeville, Wisconsin supporting the
corporate headquarters, distribution center and customer sales/service operations for Lands' End. We also own an
86,000 square foot office building in Troy, Michigan. We operate numerous buying offices throughout the world that
procure product internationally, as well as an information technology center in Pune, India.
At February 2, 2013, Sears Canada operated a total of 118 full-line stores, 357 specialty stores (including 48
furniture and appliance stores, 261 hometown dealer stores operated under independent local ownership, four
appliance and mattress stores, 33 Corbeil stores, and 11 outlet stores), nine home services showrooms, 1,512 catalog
pick-up locations and 101 travel offices.
A description of our leasing arrangements and commitments appears in Note 14 of Notes to Consolidated
Financial Statements.
Item 3. Legal Proceedings
Item 103 of SEC Regulation S-K requires that we disclose legal proceedings to which the Company and a
governmental authority is a party and that arise under laws dealing with the discharge of materials into the
environment or the protection of the environment, if the proceeding reasonably involves potential monetary
sanctions of $100,000 or more. Disclosure also is required as to any such proceedings known by us to be
contemplated by governmental authorities. In that connection, we note that Sears was a party to administrative
actions brought by the California Air Resources Board (“CARB”) that alleged that Sears offered for sale certain mini
bikes and stand-up scooters that were not certified by CARB. The parties have entered into a settlement agreement
that provides for the payment by Sears of a $285,200 penalty. The vendor of this merchandise has agreed to
reimburse Sears for the full amount of the penalty pursuant to its indemnification obligations to Sears.
See Part II, Item 8, “Financial Statements—Notes to Consolidated Financial Statements,” Note 18—“Legal
Proceedings,” for additional information regarding legal proceedings, which information is incorporated herein by
this reference.
Item 4. Mine Safety Disclosures
Not applicable.