Sears 2013 Annual Report Download - page 109

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
109
• SHO receives commissions from the Company for the sale of merchandise made through www.sears.com,
extended service agreements, delivery and handling services and credit revenues.
• The Company provides SHO with shared corporate services. These services include accounting and
finance, legal, human resources, information technology and real estate.
Amounts due to or from SHO are non-interest bearing, settled on a net basis, and have payment terms of 10
days after the invoice date. The Company invoices SHO on a weekly basis. At February 1, 2014 and February 2,
2013, Holdings reported a net amount receivable from SHO of $68 million and $79 million, respectively, in the
Accounts receivable line of the Consolidated Balance Sheet. Amounts related to the sale of inventory and related
services, royalties, and corporate shared services were $1.7 billion during 2013 and $513 million during the period
following the separation of SHO from October 12, 2012 through February 2, 2013. The net amounts SHO earned
related to commissions were $89 million during 2013 and $60 million during the period following the separation of
SHO from October 12, 2012 through February 2, 2013. Additionally, the Company has guaranteed lease obligations
for certain SHO store leases that were assigned as a result of the separation. See Note 4 for further information
related to these guarantees.
Also in connection with the separation, the Company entered into an agreement with SHO and the agent under
SHO's secured credit facility, whereby the Company committed to continue to provide services to SHO in
connection with a realization on the lender's collateral after default under the secured credit facility, notwithstanding
SHO's default under the underlying agreement with us, and to provide certain notices and services to the agent, for
so long as any obligations remain outstanding under the secured credit facility.
NOTE 16—SUPPLEMENTAL FINANCIAL INFORMATION
Other long-term liabilities at February 1, 2014 and February 2, 2013 consisted of the following:
millions February 1,
2014 February 2,
2013
Unearned revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 836 $ 843
Self-insurance reserves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 686 714
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 486 569
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,008 $ 2,126
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 ("CODM") to make decisions about resource allocation and to assess performance.