Sears 2015 Annual Report Download - page 99

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Impairment of Long-Lived Assets
As described in the "Summary of Significant Accounting Policies" in Note 1, we performed impairment tests
of certain of our long-lived assets during 2015, 2014 and 2013 (principally the value of buildings and other fixed
assets associated with our stores). As a result of this impairment testing, the Company recorded impairment charges
as shown in the table below.
millions 2015 2014 2013
Kmart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14 $10 $67
Sears Domestic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 9 140
Sears Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 15 13
Sears Holdings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $94 $34 $220
NOTE 14—LEASES
We lease certain stores, office facilities, warehouses, computers and transportation equipment.
Operating and capital lease obligations are based upon contractual minimum rents and, for certain stores,
amounts in excess of these minimum rents are payable based upon specified percentages of sales. Contingent rent is
accrued over the lease term, provided that the achievement of the specified sales level that triggers the contingent
rental is probable. Certain leases include renewal or purchase options.
Rental expense for operating leases was as follows:€
millions 2015 2014 2013
Minimum rentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $713 $710 $762
Percentage rentals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 12 15
Less-Sublease rentals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (46)(45)(56)
Less-Amortization of deferred gain on sale-leaseback . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (52)— —
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $623 $677 $721
SEARS HOLDINGS CORPORATION
Notes to Consolidated Financial Statements—(Continued)
99