Sears 2015 Annual Report Download - page 98

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Store closing costs and severance recorded for 2015, 2014 and 2013 were as follows:
millions Markdowns(1)
Severance
Costs(2)
Lease
Termination
Costs(2) Other
Charges(2)
Impairment
and
Accelerated
Depreciation(3)
Total
Store
Closing
Costs
Kmart. . . . . . . . . . . . . . . . . . . . . . . . . . . $39 $16 $21 $10 $1$87
Sears Domestic . . . . . . . . . . . . . . . . . . . 5 21 (15)1 2 14
Total 2015 costs. . . . . . . . . . . . . . . . . . . $44 $37 $6$11 $3$101
Kmart. . . . . . . . . . . . . . . . . . . . . . . . . . . $54 $32 $42 $14 $23 $165
Sears Domestic . . . . . . . . . . . . . . . . . . . 14 14 21 6 14 69
Sears Canada . . . . . . . . . . . . . . . . . . . . . 1 10 5 — — 16
Total 2014 costs. . . . . . . . . . . . . . . . . . . $69 $56 $68 $20 $37 $250
Kmart. . . . . . . . . . . . . . . . . . . . . . . . . . . $45 $10 $16 $18 $12 $101
Sears Domestic . . . . . . . . . . . . . . . . . . . 11 (3)(39)— 12 (19)
Sears Canada . . . . . . . . . . . . . . . . . . . . . 1 52 — 2 — 55
Total 2013 costs. . . . . . . . . . . . . . . . . . . $57 $59 $(23) $ 20 $24 $137
_____________
(1) Recorded within cost of sales, buying and occupancy on the Consolidated Statements of Operations.
(2) Recorded within selling and administrative on the Consolidated Statements of Operations. Lease termination
costs are net of estimated sublease income, and include the reversal of closed store reserves for which the
lease agreement has been terminated and the reversal of deferred rent balances related to closed stores.
(3) 2015 costs are recorded within depreciation and amortization on the Consolidated Statements of Operations.
2014 costs include $29 million recorded within impairment charges and $8 million recorded within
depreciation and amortization on the Consolidated Statements of Operations. 2013 costs include $13 million
recorded within impairment charges and $11 million recorded within depreciation and amortization on the
Consolidated Statements of Operations.
€
Store closing cost accruals of $180 million, $207 million and $199 million at January€30, 2016, January€31,
2015 and February€1, 2014, respectively, were as follows:
millions
Severance
Costs
Lease
Termination
Costs
Other
Charges Total
Balance at February 1, 2014. . . . . . . . . . . . . . . $ 63 $ 119 $ 17 $ 199
Store closing costs . . . . . . . . . . . . . . . . . . . . . . 56 76 20 152
Payments/utilizations/other . . . . . . . . . . . . . . . (76) (39) (29) (144)
Balance at January 31, 2015. . . . . . . . . . . . . . . 43 156 8 207
Store closing costs . . . . . . . . . . . . . . . . . . . . . . 37 8 11 56
Payments/utilizations/other . . . . . . . . . . . . . . . (22) (50) (11) (83)
Balance at January 30, 2016. . . . . . . . . . . . . . . $ 58 $ 114 $ 8 $ 180
SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
98