Sears 2015 Annual Report Download - page 100

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Minimum lease obligations, excluding taxes, insurance and other expenses payable directly by us, for leases in
effect at January€30, 2016, were as follows:€
Minimum Lease
Commitments
millions Capital Operating
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $75 $708
2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 623
2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 529
2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 435
2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 370
Later years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 1,837
Total minimum lease payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265 4,502
Less-minimum sublease income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (127)
Net minimum lease payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,375
Less:
Estimated executory costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14)
Interest at a weighted average rate of 5.9% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (56)
Capital lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Less current portion of capital lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (58)
Long-term capital lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $137
NOTE 15—RELATED PARTY DISCLOSURE
Mr.€Lampert is Chairman of our Board of Directors and its Finance Committee and is the Chairman and Chief
Executive Officer of ESL. Additionally, on February 1, 2013, Mr. Lampert became our Chief Executive Officer, in
addition to his role as Chairman of the Board. ESL owned approximately 50% of our outstanding common stock at
January€30, 2016 (excluding shares of common stock that ESL may acquire within 60 days upon the exercise of
warrants to purchase shares of our common stock).
On February 25, 2016, Holdings announced the election of€Bruce R. Berkowitz to membership on our Board
of Directors. Mr. Berkowitz serves as the Chief Investment Officer of Fairholme Capital Management, LLC, an
investment adviser registered with the U.S. Securities and Exchange Commission ("SEC"), and is the President and
a Director of Fairholme Funds, Inc., a SEC-registered investment company providing investment management
services to three mutual funds (together with Fairholme Capital Management, LLC and other affiliates,
"Fairholme"). Fairholme owned approximately 27% of our outstanding common stock at January€30, 2016
(excluding shares of common stock that Fairholme may acquire within 60 days upon the exercise of warrants to
purchase shares of our common stock).
Unsecured Commercial Paper
During 2015 and 2014, ESL and its affiliates held unsecured commercial paper issued by SRAC, an indirect
wholly-owned subsidiary of Holdings. For the commercial paper outstanding to ESL, the weighted average of each
maturity, annual interest rate, and principal amount outstanding for this commercial paper was 32 days, 4.55% and
$8.8 million and 19 days, 3.68% and $27.7 million, respectively, in 2015 and 2014. The largest aggregate amount of
principal outstanding to ESL at any time since the beginning of 2015 was $100 million and the aggregate amount of
interest paid by SRAC to ESL during 2015 was $0.4 million.
SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
100