Sears 2015 Annual Report Download - page 23

Download and view the complete annual report

Please find page 23 of the 2015 Sears annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

Item€7. Management's Discussion and Analysis of Financial Condition and Results of Operations
We have divided our "Management's Discussion and Analysis of Financial Condition and Results of
Operations" into the following six sections:
• Overview of Holdings
• Results of Operations:
Fiscal Year
Holdings' Consolidated Results
Business Segment Results
• Analysis of Consolidated Financial Condition
• Contractual Obligations and Off-Balance Sheet Arrangements
• Application of Critical Accounting Policies and Estimates
• Cautionary Statement Regarding Forward-Looking Information
The discussion that follows should be read in conjunction with the consolidated financial statements and notes
thereto included in Item€8.
OVERVIEW OF HOLDINGS
Holdings, the parent company of Kmart and Sears, was formed in connection with the March€24, 2005 Merger
of these two companies. We are an integrated retailer with significant physical and intangible assets, as well as
virtual capabilities enabled through technology. We operate a national network of stores, with 1,672 full-line and
specialty retail stores in the United States, operating as Kmart and Sears. Further, we operate a number of websites
under the Sears.com and Kmart.com banners which offer millions of products and provide the capability for our
members and customers to engage in cross-channel transactions such as free store pickup; buy in store/ship to home;
and buy online, return in store. We are also the home of Shop Your Way®, a free member-based social shopping
platform that offers rewards, personalized services and a unique experience. Shop Your Way® connects all of the
ways members shop - in store, at home, online and by phone.
Through the third quarter of 2014, we conducted our operations in three business segments: Kmart, Sears
Domestic and Sears Canada. As a result of the de-consolidation of Sears Canada as described in Note 2 of Notes to
the Consolidated Financial Statements, Sears Canada is no longer an operating or reportable segment. We now
conduct our operations in two business segments: Kmart and Sears Domestic. The nature of operations conducted
within each of these segments is discussed within the "Business Segments" section of Item 1 in this Annual Report
on Form€10-K. Our business segments have been determined in accordance with accounting standards regarding the
determination, and reporting, of business segments.
RESULTS OF OPERATIONS
Fiscal Year
Our fiscal year end is the Saturday closest to January€31 each year. Fiscal years 2015, 2014 and 2013 consisted
of 52 weeks. Unless otherwise stated, references to years in this report relate to fiscal years rather than to calendar
years.
23