Sears 2015 Annual Report Download - page 97

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Changes in the carrying amount of goodwill by segment during 2014 and 2015 were as follows:
millions
Sears
Domestic
Balance, February 1, 2014:
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $379
2014 activity:
Separation of Lands' End . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (110)
Balance, January 30, 2016 and January 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $269
As described in "Summary of Significant Accounting Policies" in Note 1, goodwill and indefinite-lived
intangible assets are not amortized but require testing for potential impairment, at a minimum on an annual basis, or
when indications of potential impairment exist. As a result of our annual testing of indefinite-lived intangible assets,
we recorded impairment related to the Sears trade name of $180 million in 2015, which reduced the carrying value
to $812 million. The impairment is recorded at Sears Domestic and included within impairment charges on our
Consolidated Statements of Operations. We did not record any goodwill or indefinite-lived intangible asset
impairment in 2014 or 2013.
NOTE 13—STORE CLOSING CHARGES, SEVERANCE COSTS AND IMPAIRMENTS
Store Closings and Severance
During 2015, 2014 and 2013, respectively, we closed 38, 173 and 70 stores in our Kmart segment and 12, 61
and 23 stores in our Sears Domestic segment that we previously announced would close. We made the decision to
close 78, 118 and 113 stores in our Kmart segment and 14, 47 and 32 stores in our Sears Domestic segment during
2015, 2014 and 2013, respectively; and we also made the decision to close 6 domestic supply chain distribution
centers in our Kmart segment and 1 domestic supply chain distribution center in our Sears Domestic segment during
2014.
In accordance with accounting standards governing costs associated with exit or disposal activities, expenses
related to future rent payments for which we no longer intend to receive any economic benefit are accrued for when
we cease to use the leased space and have been reduced for any income that we believe can be realized through sub-
leasing the leased space.
We expect to record additional charges of approximately $5 million during 2016 related to stores we had
previously made the decision to close.
SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
97