Sears 2014 Annual Report Download - page 110

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
110
Store closing costs and severance recorded for 2014, 2013 and 2012 were as follows:
millions Markdowns(1) Severance
Costs(2)
Lease
Termination
Costs(2) Other
Charges(2)
Impairment
and
Accelerated
Depreciation(3)
Total
Store
Closing
Costs
Kmart. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 54 $ 32 $ 42 $ 14 $ 23 $ 165
Sears Domestic . . . . . . . . . . . . . . . . . . . 14 14 21 6 14 69
Sears Canada . . . . . . . . . . . . . . . . . . . . . 1 10 5 — — 16
Total 2014 costs. . . . . . . . . . . . . . . . . . . $ 69 $ 56 $ 68 $ 20 $ 37 $ 250
Kmart. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 45 $ 10 $ 16 $ 18 $ 12 $ 101
Sears Domestic . . . . . . . . . . . . . . . . . . . 11 (3)(39) — 12 (19)
Sears Canada . . . . . . . . . . . . . . . . . . . . . 1 52 — 2 — 55
Total 2013 costs. . . . . . . . . . . . . . . . . . . $ 57 $ 59 $ (23) $ 20 $ 24 $ 137
Kmart. . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21 $ 13 $ 34 $ 8 $ 9 $ 85
Sears Domestic . . . . . . . . . . . . . . . . . . . 14 2 34 (6) 13 57
Sears Canada . . . . . . . . . . . . . . . . . . . . . — 16 (1) 5 — 20
Total 2012 costs. . . . . . . . . . . . . . . . . . . $ 35 $ 31 $ 67 $ 7 $ 22 $ 162
_____________
(1) Recorded within Cost of sales, buying and occupancy on the Consolidated Statements of Operations.
(2) Recorded within Selling and administrative on the Consolidated Statements of Operations. Lease termination
costs are net of estimated sublease income, and include the reversal of closed store reserves for which the
lease agreement has been terminated and the reversal of deferred rent balances related to closed stores.
(3) 2014 costs include $29 million recorded within impairment charges and $8 million recorded within
Depreciation and amortization on the Consolidated Statements of Operations. 2013 costs include $13 million
recorded within impairment charges and $11 million recorded within Depreciation and amortization on the
Consolidated Statements of Operations. 2012 costs are recorded within Depreciation and amortization on the
Consolidated Statements of Operations.
Store closing cost accruals of $207 million, $199 million and $193 million at January 31, 2015, February 1,
2014 and February 2, 2013, respectively, were as follows:
millions Severance
Costs
Lease
Termination
Costs Other
Charges Total
Balance at February 2, 2013. . . . . . . . . . . . . . . $ 41 $ 138 $ 14 $ 193
Store closing costs . . . . . . . . . . . . . . . . . . . . . . 59 3 20 82
Store closing capital lease obligations . . . . . . . — 2 — 2
Payments/utilizations/other . . . . . . . . . . . . . . . (37) (24)(17)(78)
Balance at February 1, 2014. . . . . . . . . . . . . . . 63 119 17 199
Store closing costs . . . . . . . . . . . . . . . . . . . . . . 56 76 20 152
Payments/utilizations/other . . . . . . . . . . . . . . . (76) (39)(29)(144)
Balance at January 31, 2015. . . . . . . . . . . . . . . $ 43 $ 156 $ 8 $ 207
Goodwill
See Note 12 for further information regarding our goodwill impairment charges recorded in 2012.