Sears 2015 Annual Report Download - page 53

estimates and assumptions used in estimating future cash flows and asset fair values, we may be exposed to
additional impairment charges in the future, which could be material to our results of operations.
New Accounting Pronouncements
See Note 1 of Notes to Consolidated Financial Statements for information regarding new accounting
pronouncements.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Certain statements made in this Annual Report on Form€10-K and in other public announcements by us
contain forward-looking statements within the meaning of the Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Act of 1934, as amended, and the Private Securities Litigation Reform Act of
1995. Forward-looking statements include information concerning our future financial performance, business
strategy, plans, goals and objectives. Statements preceded or followed by, or that otherwise include, the words
"believes," "expects," "anticipates," "intends," "estimates," "plans," "forecast," "is likely to" and similar expressions
or future or conditional verbs such as "will," "may" and "could" are generally forward-looking in nature and not
historical facts. Such statements are based upon the current beliefs and expectations of the Company's management
and are subject to significant risks and uncertainties, many of which are beyond the Company's control, that may
cause our actual results, performance or achievements to be materially different from any future results, performance
or achievements expressed or implied by these forward-looking statements. Actual results may differ materially
from those set forth in the forward-looking statements.
The following factors, among others, could cause actual results to differ from those set forth in the forward-
looking statements: our ability to successfully implement our integrated retail strategy to transform our business; our
ability to successfully manage our inventory levels; initiatives to improve our liquidity through inventory
management and other actions; vendors’ lack of willingness to provide acceptable payment terms or otherwise
restricting financing to purchase inventory or services; possible limits on our access to our domestic credit facility,
which is subject to a borrowing base limitation and a springing fixed charge coverage ratio covenant, capital markets
and other financing sources, including additional second lien financings, with respect to which we do not have
commitments from lenders; our ability to successfully achieve our plans to generate liquidity through potential
transactions or otherwise; our ability to achieve cost savings initiatives; potential liabilities in connection with the
separation of Lands’ End and disposition of a portion of our ownership interest in Sears Canada; payment-related
risks that could increase our operating costs, expose us to fraud or theft, subject us to potential liability and
potentially disrupt our business operations; the impact of seasonal buying patterns, including seasonal fluctuations
due to weather conditions, which are difficult to forecast with certainty; fluctuations in our sales due to changes in
customers’ spending patterns and prevailing economic conditions; risks and uncertainties related to the Seritage
transaction and the amendment and extension of our credit facility, such as the impact of the evaluation of any such
transaction on our other businesses; our dependence on sources outside the United States for significant amounts of
our merchandise; our reliance on third parties to provide us with services in connection with the administration of
certain aspects of our business and the transfer of significant internal historical knowledge to such parties;
impairment charges for goodwill and intangible assets or fixed-asset impairment for long-lived assets; our ability to
attract, motivate and retain key executives and other associates; the substantial influence exerted over the Company
by affiliates of our Chairman and Chief Executive Officer, whose interests may diverge from other stockholders’
interests; our ability to protect or preserve the image of our brands; the outcome of pending and/or future legal
proceedings, including shareholder litigation, product liability, patent infringement and qui tam claims and
proceedings with respect to which the parties have reached a preliminary settlement; and the timing, amount and
other risks related to required pension plan funding.
Certain of these and other factors are discussed in more detail in Part I, Item 1A of this Annual Report on
Form 10-K. While we believe that our forecasts and assumptions are reasonable, we caution that actual results may
differ materially. We intend the forward-looking statements to speak only as of the time made and do not undertake
to update or revise them as more information becomes available, except as required by law.
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