Sears 2012 Annual Report Download - page 59

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59
SEARS HOLDINGS CORPORATION
Consolidated Statements of Cash Flows
millions 2012 2011 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (1,054) $ (3,147) $ 150
(Income) loss from discontinued operations, net of tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 27 (11)
Income (loss) from continuing operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,054) (3,120) 139
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Deferred tax valuation allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 237 1,798 —
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 830 853 869
Impairment charges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330 649 —
Gain on sales of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (468) (64) (67)
Gain on sales of investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (28) — —
Pension and postretirement plan contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (593) (390) (316)
Pension and postretirement plan settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455 — —
Settlement of Canadian dollar hedges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 — (3)
Change in operating assets and liabilities (net of acquisitions and dispositions):
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (206) (533) (15)
Merchandise inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 427 545 (353)
Merchandise payables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (117) (134) (285)
Income and other taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (63) (50) (34)
Mark-to-market adjustments and settlements on Sears Canada U.S. dollar collar contracts 1 2 7
Other operating assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (100) 67 (7)
Other operating liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 70 142
Net cash provided by (used in) operating activities—continuing operations . . . . . . . . . . . . (303) (307) 77
Net cash provided by operating activities—discontinued operations . . . . . . . . . . . . . . . . . . — 32 46
Net cash provided by (used in) operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (303) (275) 123
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales of property and investments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 532 72 35
Net decrease in investments and restricted cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 8 —
Purchases of property and equipment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (378) (432) (426)
Net cash provided by (used in) investing activities—continuing operations . . . . . . . . . . . . 191 (352) (391)
Net cash provided by (used in) investing activities—discontinued operations. . . . . . . . . . . — 43 (15)
Net cash provided by (used in) investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191 (309) (406)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt issuances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 104 1,353
Repayments of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (335) (611) (358)
Increase (decrease) in short-term borrowings, primarily 90 days or less . . . . . . . . . . . . . . . . . . . . (81) 815 35
Sears Hometown and Outlet Stores, Inc. pre-separation funding. . . . . . . . . . . . . . . . . . . . . . . . . . 100 — —
Proceeds from the sale of Sears Hometown and Outlet Stores, Inc.. . . . . . . . . . . . . . . . . . . . . . . . 347 — —
Debt issuance costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) (35) (28)
Purchase of Sears Canada shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10) (43) (603)
Sears Canada dividends paid to minority shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (50) — (69)
Purchase of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (183) (394)
Net cash provided by (used in) financing activities—continuing operations . . . . . . . . . . . . (27) 47 (64)
Net cash used in financing activities—discontinued operations . . . . . . . . . . . . . . . . . . . . . . — (75) (31)
Net cash used in financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (27) (28) (95)
Effect of exchange rate changes on cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 — 57
NET DECREASE IN CASH AND CASH EQUIVALENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (138) (612) (321)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR. . . . . . . . . . . . . . . . . . . . . . . . . . . . 747 1,359 1,680
CASH AND CASH EQUIVALENTS, END OF YEAR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 609 $ 747 $ 1,359
SUPPLEMENTAL INFORMATION:
Capital lease obligation incurred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 61 $ 3 $ 15
Supplemental Cash Flow Data:
Income taxes paid, net of refunds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40 $ 94 $ 47
Cash interest paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 223 164
Unpaid liability to acquire equipment and software. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 52 56
Non-cash dividend in connection with Spin-Off transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . (542) (74) —
See accompanying Notes to Consolidated Financial Statements.