Sears 2013 Annual Report Download - page 53

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53
Contractual Obligations and Off-Balance Sheet Arrangements
Information concerning our obligations and commitments to make future payments under contracts such as
debt and lease agreements, and under contingent commitments, is aggregated in the following tables.
Total
Payments Due by Period
Contractual Obligations Within 1
Year 1-3 Years 4-5 Years After 5
Years Other
millions
Operating leases . . . . . . . . . . . . . . . . . . . . . $ 3,774 $ 684 $ 1,104 $ 672 $ 1,314 $ —
Short-term debt. . . . . . . . . . . . . . . . . . . . . . 1,332 1,332 — — — —
Capital lease obligations. . . . . . . . . . . . . . . 479 102 163 83 131 —
Royalty license fees(1) . . . . . . . . . . . . . . . . . 120 56 50 14 — —
Purchase obligations. . . . . . . . . . . . . . . . . . 90 22 45 23 — —
Pension funding obligations . . . . . . . . . . . . 1,621 487 636 495 3 —
Long-term debt including current portion
and interest . . . . . . . . . . . . . . . . . . . . . . 3,261 95 180 2,393 593 —
Liability and interest related to uncertain
tax positions(2) . . . . . . . . . . . . . . . . . . . . 203 — — — — 203
Total contractual obligations. . . . . . . . . . . . $ 10,880 $ 2,778 $ 2,178 $ 3,680 $ 2,041 $ 203
__________________
(1) We pay royalties under various merchandise license agreements, which are generally based on sales of
products covered under these agreements. We currently have license agreements for which we pay royalties,
including those to use American Greetings and Joe Boxer. Royalty license fees represent the minimum the
Company is obligated to pay, regardless of sales, as guaranteed royalties under these license agreements.
(2) At February 1, 2014, our uncertain tax position liability and gross interest payable were $150 million and $53
million, respectively. We are unable to reasonably estimate the timing of liabilities and interest payments
arising from uncertain tax positions in individual years due to the uncertainties in the timing of the effective
settlement of tax positions.
Other Commercial Commitments
We issue various types of guarantees in the normal course of business. We had the following guarantees
outstanding at February 1, 2014:
millions Bank
Issued SRAC
Issued Other Total
Standby letters of credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 683 $ 16 $ — $ 699
Commercial letters of credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 105 — 118
Secondary lease obligations and performance guarantee. . . . . . . . — — 55 55
The secondary lease obligations relate to certain store leases of previously divested Sears businesses. We
remain secondarily liable if the primary obligor defaults.