Sears 2015 Annual Report Download - page 108

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On October 16, 2014, we de-consolidated Sears Canada pursuant to a rights offering transaction. The
following condensed consolidated financial statements had total assets and liabilities of approximately $2.2 billion
and $1.3 billion, respectively, at February 1, 2014, attributable to Sears Canada. Merchandise sales and services
included revenues of approximately $2.1 billion and $3.8 billion in 2014 and 2013, respectively. Net loss
attributable to Holdings' shareholders included net loss of approximately $137 million in 2014 and net income of
approximately $244 million in 2013. The financial information for Sears Canada is reflected within the non-
guarantor subsidiaries balances for these periods.
The principal elimination entries relate to investments in subsidiaries and intercompany balances and
transactions including transactions with our wholly-owned non-guarantor insurance subsidiary. The Company has
accounted for investments in subsidiaries under the equity method. The guarantor subsidiaries are 100% owned
directly or indirectly by the Parent and all guarantees are joint, several and unconditional. Additionally, the notes are
secured by a security interest in certain assets consisting primarily of domestic inventory and credit card receivables
of the guarantor subsidiaries, and consequently may not be available to satisfy the claims of the Company’s general
creditors. Certain investments primarily held by non-guarantor subsidiaries are recorded by the issuers at historical
cost and are recorded at fair value by the holder.
SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
108