Sears 2013 Annual Report Download - page 113

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
113
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) attributable to Holdings' shareholders. . . 189 (132)(498)(489)
Basic net income (loss) per share attributable to Holdings'
shareholders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.78 (1.25)(4.70)(4.61)
Diluted net income (loss) per share attributable to
Holdings' shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . 1.78 (1.25)(4.70)(4.61)
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 1, 2014, 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 1, 2014 and
February 2, 2013, and the Condensed Consolidating Statements of Operations, the Consolidating Statements of
Comprehensive Income (Loss) and the Condensed Consolidating Statements of Cash flows for 2013, 2012 and 2011
of (i) Parent; (ii) the guarantor subsidiaries; (iii) the non-guarantor subsidiaries; (iv) eliminations and (v) the
Company on a consolidated basis.
Merchandise sales and services included revenues of $1.7 billion and $2.3 billion from SHO for 2012 and
2011, respectively. Net income (loss) attributable to Holdings' shareholders included net income of approximately
$51 million and $33 million from SHO for 2012 and 2011, respectively. The financial information for SHO is
reflected within the guarantor subsidiaries balances for these periods. The condensed consolidated financial
information as of and for the periods ended February 1, 2014 and February 2, 2013 reflects the effects of the
separation of SHO.
The principal elimination entries relate to investments in subsidiaries and intercompany balances and
transactions including transactions with our wholly-owned non-guarantor insurance subsidiary. The Company has
accounted for investments in subsidiaries under the equity method. The guarantor subsidiaries are 100% owned
directly or indirectly by the Parent and all guarantees are joint, several and unconditional. Additionally, the notes are
secured by a security interest in certain assets consisting primarily of domestic inventory and credit card receivables
of the guarantor subsidiaries, and consequently may not be available to satisfy the claims of the Company’s general
creditors. Certain investments primarily held by non-guarantor subsidiaries are recorded by the issuers at historical
cost and are recorded at fair value by the holder.