Sears 2013 Annual Report Download - page 38

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38
Impairment charges
We recorded impairment charges of $10 million and $15 million in 2012 and 2011, respectively, related to
impairment of long-lived assets. Impairment charges recorded during 2012 and 2011 are further described in Note
13 of Notes to Consolidated Financial Statements.
Gain on Sales of Assets
Kmart recorded a total net gain on sales of assets of $37 million and $34 million in 2012 and 2011,
respectively. The gains on sales of assets in 2012 included a gain of $11 million recognized on the sale of one store
while 2011 included a gain of $12 million recognized on the sale of one store.
Operating Income (Loss)
Kmart recorded operating income of $5 million in 2012 as compared to an operating loss of $34 million in
2011. This improvement was primarily driven by the improvement in gross margin rate and a decrease in selling and
administrative expenses which more than offset the above noted decrease in revenues. Operating income in 2012
included expenses related to store closing and severance costs of $85 million and store impairments of $10 million
as well as a gain of $11 million related to the sale of one store. Kmart's operating loss for 2011 included expenses
related to store impairments of $15 million, store closing and severance costs of $76 million as well as a gain of $12
million related to the sale of one store.