Sears 2013 Annual Report Download - page 102

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
102
During 2012, the gain on sales of assets included gains of $386 million recognized in connection with real
estate transactions which included a gain of $223 million recognized on the sale of 11 (six owned and five leased)
Sears Full-line store locations to General Growth Properties for $270 million in cash proceeds, and a gain of $163
million recognized on the surrender and early termination of the leases on three properties operated by Sears
Canada, under an agreement with The Cadillac Fairview Corporation Limited for which Sears Canada received $171
million ($170 million Canadian) in cash proceeds. The gain on sales of assets recorded during 2012 also included a
gain of $33 million related to the sale of one store operated under The Great Indoors format, one Sears Full-line
store, and one Kmart store.
During 2011, the gain on sales of assets included a gain of $33 million recognized on the sale of two stores
operated under The Great Indoors format and one Kmart store.
One of the gains recognized in 2013 was for the surrender and early termination of one lease operated by
Sears Canada. We surrendered all of our rights and obligations under our preexisting lease agreement related to
certain floors, and agreed to surrender these premises by March 2014. Sears Canada will continue to lease floors
currently used as office space under terms consistent with the existing lease. We determined that there is no
continuing involvement related to the floors surrendered as we have transferred all of the risks and rewards of
ownership to the landlord, and therefore immediate gain recognition is appropriate.
In connection with the other transactions, we surrendered substantially all of our rights and obligations under
our preexisting lease agreements and agreed to surrender each of the premises in periods ranging up to 23 months
from the date of closing to facilitate an orderly wind down of operations.