Sears 2013 Annual Report Download - page 15

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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 . . . . . . . . . . . . . . . . . . . 183 12 485 7 25 14 2 728
Leased . . . . . . . . . . . . . . . . . . . 952 5 283 3 25 104 104 1,476
Independently-owned and
operated stores . . . . . . . . . . . — — — — — — 225 225
Stores at February 1, 2014. . . . 1,135 17 768 10 50 118 331 2,429
In addition, at February 1, 2014, we had 36 domestic supply chain distribution centers, of which 12 were
owned and 24 were leased with remaining lease terms ranging up to six years. Of the total, 10 primarily support
Kmart stores, 21 primarily support Sears stores and five support both Sears and Kmart stores. We also had 419
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 1, 2014, Sears Canada operated a total of 118 full-line stores, 331 specialty stores (including 48
furniture and appliance stores, 234 hometown dealer stores operated under independent local ownership, four
appliance and mattress stores, 34 Corbeil stores, and 11 outlet stores), eight home services showrooms, 1,446
catalog pick-up locations and 97 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 received a notice of violation from
the California South Coast Air Quality Management District ("SCAQMD") alleging that Sears stores that are located
in the SCAQMD jurisdiction sold architectural coating products that exceed the current SCAQMD limitations on
volatile organic compounds. The parties entered into a settlement agreement under which the Company paid a
$50,000 penalty.
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.