Sears 2014 Annual Report Download - page 81

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SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
81
NOTE 3—BORROWINGS
Total borrowings outstanding at January 31, 2015 and February 1, 2014 were $3.8 billion and $4.2 billion,
respectively. At January 31, 2015, total short-term borrowings were $0.6 billion, consisting of a $0.4 billion secured
short-term loan, $0.2 billion of secured borrowings and $2 million of unsecured commercial paper. At February 1,
2014, total short-term borrowings were $1.3 billion, consisting of $1.3 billion secured borrowings and $9 million of
unsecured commercial paper. The weighted-average annual interest rate paid on short-term debt was 3.0% in 2014
and 2.8% in 2013.
Long-term debt was as follows:
ISSUE
January 31,
2015 February 1,
2014
millions
SEARS ROEBUCK ACCEPTANCE CORP.
6.50% to 7.50% Notes, due 2017 to 2043 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 327 $ 327
Term Loan (Credit Facility), due 2018. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 983 991
SEARS HOLDINGS CORP.
6.625% Senior Secured Notes, due 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,238 1,238
8% Senior Unsecured Notes, due 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 352 —
CAPITALIZED LEASE OBLIGATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272 346
OTHER NOTES AND MORTGAGES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 15
Total long-term borrowings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,185 2,917
Current maturities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (75)(83)
Long-term debt and capitalized lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,110 $ 2,834
Weighted-average annual interest rate on long-term debt. . . . . . . . . . . . . . . . . . . . . . . 6.5% 6.4%
The fair value of long-term debt, excluding capitalized lease obligations, was $2.9 billion at January 31, 2015
and $2.3 billion at February 1, 2014. The fair value of our debt was estimated based on quoted market prices for the
same or similar issues or on current rates offered to us for debt of the same remaining maturities. Our long-term debt
instruments are valued using Level 2 measurements as defined in Note 5.
At January 31, 2015, long-term debt maturities for the next five years and thereafter were as follows:
millions
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 75
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,227
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 643
Thereafter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 359
Total maturities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,469
Unamortized debt discount . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (284)
Long-term debt, net of discount. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,185