Sears 2014 Annual Report Download - page 131

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131
Sears Holdings Corporation
Schedule II-Valuation and Qualifying Accounts
Years 2014, 2013 and 2012
millions
Balance at
beginning
of period
Additions
charged to
costs and
expenses (Deductions) Balance at
end of period
Allowance for Doubtful Accounts(1):
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 32 $ 2 $ (9) $ 25
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 6 (2) 32
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 5 (5) 28
Allowance for Deferred Tax Assets(2):
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,366 1,392 (280) 4,478
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,743 726 (103) 3,366
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,268 531 (56) 2,743
__________________
(1) Charges to the account are for the purposes for which the reserves were created.
(2) At the end of 2013 we had a federal and state net operating loss ("NOL") deferred tax asset of $1.2 billion and
a valuation allowance of $3.4 billion. In 2014, there was a net increase to the federal and state NOL deferred
tax asset of $656 million, bringing the ending balance to $1.8 billion. The increase in NOLs resulted from
additional federal and state losses incurred during 2014, netted against state NOL expirations. The valuation
allowance increased by $1.1 billion to $4.5 billion at the end of 2014. Additional valuation allowances for
federal and state were created against NOLs and other deferred tax assets, and were netted against state
valuation allowance reversals due to expiring state NOLs. Included in the valuation allowance reversals was
$26 million through equity due to the spin-off of Lands' End. In addition, there was an increase of $152
million in the valuation allowance for Sears Canada's deferred tax assets prior to its de-consolidation. Upon
de-consolidation of Sears Canada, there was a net decrease of $152 million in the valuation allowance.