GUARANTOR/NON-GUARANTOR SUBSIDIARY FINANCIAL INFORMATION (Tables)

3 Months Ended

May 04, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

lder.

Condensed Consolidating Balance Sheet

May 4, 2013



millions	Parent		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
Current assets
Cash and cash equivalents	$	—	$	347	$	124	$	—		$	471
Intercompany receivables	—		—		25,818		(25,818		)	—
Accounts receivable	—		497		111		—			608
Merchandise inventories	—		7,019		881		—			7,900
Prepaid expenses and other current assets	92		951		459		(1,030		)	472
Total current assets	92		8,814		27,393		(26,848		)	9,451
Total property and equipment, net	—		4,309		1,601		—			5,910
Goodwill and intangible assets	—		961		2,289		—			3,250
Other assets	16		229		3,118		(2,578		)	785
Investment in subsidiaries	16,174		25,105		—		(41,279		)	—
TOTAL ASSETS	$	16,282	$	39,418	$	34,401	$	(70,705	)	$	19,396
Current liabilities
Short-term borrowings	$	—	$	1,754	$	—	$	—		$	1,754
Current portion of long-term debt and capitalized lease obligations	—		55		17		—			72
Merchandise payables	—		2,522		340		—			2,862
Intercompany payables	12,556		13,262		—		(25,818		)	—
Short-term deferred tax liabilities	3		412		—		(33		)	382
Other current liabilities	4		2,379		2,379		(997		)	3,765
Total current liabilities	12,563		20,384		2,736		(26,848		)	8,835
Long-term debt and capitalized lease obligations	1,237		2,937		132		(2,377		)	1,929
Pension and postretirement benefits	—		2,229		409		—			2,638
Long-term deferred tax liabilities	—		12		943		11			966
Other long-term liabilities	—		843		1,512		(248		)	2,107
Total Liabilities	13,800		26,405		5,732		(29,462		)	16,475
EQUITY
Shareholder’s equity	2,482		13,013		28,669		(41,646		)	2,518
Noncontrolling interest	—		—		—		403			403
Total Equity	2,482		13,013		28,669		(41,243		)	2,921
TOTAL LIABILITIES AND EQUITY	$	16,282	$	39,418	$	34,401	$	(70,705	)	$	19,396

Condensed Consolidating Balance Sheet

April 28, 2012



millions	Parent		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
Current assets
Cash and cash equivalents	$	—	$	385	$	392	$	—		$	777
Intercompany receivables	—		—		25,292		(25,292		)	—
Accounts receivable	—		429		215		—			644
Merchandise inventories	—		7,910		907		—			8,817
Prepaid expenses and other current assets	62		669		466		(807		)	390
Total current assets	62		9,393		27,272		(26,099		)	10,628
Total property and equipment, net	—		4,717		1,719		—			6,436
Goodwill and intangible assets	—		1,167		2,596		—			3,763
Other assets	21		194		2,585		(2,020		)	780
Investment in subsidiaries	17,614		25,899		—		(43,513		)	—
TOTAL ASSETS	$	17,697	$	41,370	$	34,172	$	(71,632	)	$	21,607
Current liabilities
Short-term borrowings	$	—	$	1,103	$	—	$	—		$	1,103
Current portion of long-term debt and capitalized lease obligations	—		134		17		—			151
Merchandise payables	—		2,811		447		—			3,258
Intercompany payables	11,934		13,358		—		(25,292		)	—
Short-term deferred tax liabilities	5		543		—		(30		)	518
Other current liabilities	7		2,806		2,321		(777		)	4,357
Total current liabilities	11,946		20,755		2,785		(26,099		)	9,387
Long-term debt and capitalized lease obligations	1,237		2,412		111		(1,785		)	1,975
Pension and postretirement benefits	—		2,210		456		—			2,666
Other long-term liabilities	—		56		817		(6		)	867
Non-current liabilities of discontinued operations	—		846		1,517		(229		)	2,134
Total Liabilities	13,183		26,279		5,686		(28,119		)	17,029
EQUITY
Shareholder’s equity	4,514		15,091		28,486		(43,577		)	4,514
Noncontrolling interest	—		—		—		64			64
Total Equity	4,514		15,091		28,486		(43,513		)	4,578
TOTAL LIABILITIES AND EQUITY	$	17,697	$	41,370	$	34,172	$	(71,632	)	$	21,607

Condensed Consolidating Balance Sheet

February 2, 2013



millions	Parent		Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
Current assets
Cash and cash equivalents	$	—	$	320	$	289	$	—		$	609
Intercompany receivables	—		—		25,553		(25,553		)	—
Accounts receivable	—		506		129		—			635
Merchandise inventories	—		6,709		849		—			7,558
Prepaid expenses and other current assets	92		970		461		(1,060		)	463
Total current assets	92		8,505		27,281		(26,613		)	9,265
Total property and equipment, net	—		4,412		1,641		—			6,053
Goodwill and intangible assets	—		968		2,292		—			3,260
Other assets	17		223		3,147		(2,625		)	762
Investment in subsidiaries	16,413		24,988		—		(41,401		)	—
TOTAL ASSETS	$	16,522	$	39,096	$	34,361	$	(70,639	)	$	19,340
Current liabilities
Short-term borrowings	$	—	$	1,094	$	—	$	—		$	1,094
Current portion of long-term debt and capitalized lease obligations	—		66		17		—			83
Merchandise payables	—		2,392		369		—			2,761
Intercompany payables	12,594		12,959		—		(25,553		)	—
Short-term deferred tax liabilities	3		412		—		(33		)	382
Other current liabilities	26		2,640		2,455		(1,027		)	4,094
Total current liabilities	12,623		19,563		2,841		(26,613		)	8,414
Long-term debt and capitalized lease obligations	1,237		3,081		135		(2,510		)	1,943
Pension and postretirement benefits	—		2,310		420		—			2,730
Long-term deferred tax liabilities	—		—		914		41			955
Other long-term liabilities	—		861		1,513		(248		)	2,126
Total Liabilities	13,860		25,815		5,823		(29,330		)	16,168
EQUITY
Shareholder’s equity	2,662		13,281		28,538		(41,726		)	2,755
Noncontrolling interest	—		—		—		417			417
Total Equity	2,662		13,281		28,538		(41,309		)	3,172
TOTAL LIABILITIES AND EQUITY	$	16,522	$	39,096	$	34,361	$	(70,639	)	$	19,340

Condensed Consolidating Statement of Operations

For the 13 Weeks Ended May 4, 2013



millions	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Merchandise sales and services	$	—		$	7,578		$	1,695		$	(821	)	$	8,452
Cost of sales, buying and occupancy	—			5,767			912			(383		)	6,296
Selling and administrative	—			2,087			569			(438		)	2,218
Depreciation and amortization	—			144			47			—			191
Impairment charges	—			8			—			—			8
Gain on sales of assets	—			(14		)	—			—			(14		)
Total costs and expenses	—			7,992			1,528			(821		)	8,699
Operating income (loss)	—			(414		)	167			—			(247		)
Interest expense	(55		)	(94		)	(26		)	114			(61		)
Interest and investment income	—			9			112			(114		)	7
Income (loss) before income taxes	(55		)	(499		)	253			—			(301		)
Income tax (expense) benefit	—			49			(40		)	—			9
Equity (loss) in earnings in subsidiaries	(237		)	127			—			110			—
Net income (loss)	(292		)	(323		)	213			110			(292		)
Loss attributable to noncontrolling interests	—			—			—			13			13
NET INCOME (LOSS) ATTRIBUTABLE TO HOLDINGS’ SHAREHOLDERS	$	(292	)	$	(323	)	$	213		$	123		$	(279	)

Condensed Consolidating Statement of Operations

For the 13 Weeks Ended April 28, 2012



millions	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Merchandise sales and services	$	—		$	8,310		$	1,826		$	(866	)	$	9,270
Cost of sales, buying and occupancy	—			6,099			1,030			(426		)	6,703
Selling and administrative	—			2,283			602			(440		)	2,445
Depreciation and amortization	—			153			49			—			202
Gain on sales of assets	—			(233		)	(162		)	—			(395		)
Total costs and expenses	—			8,302			1,519			(866		)	8,955
Operating income	—			8			307			—			315
Interest expense	(56		)	(96		)	(27		)	113			(66		)
Interest and investment income	—			11			114			(113		)	12
Income (loss) before income taxes	(56		)	(77		)	394			—			261
Income tax (expense) benefit	19			(18		)	(68		)	—			(67		)
Equity in earnings in subsidiaries	231			244			—			(475		)	—
Net income (loss)	194			149			326			(475		)	194
Loss attributable to noncontrolling interests	—			—			—			(5		)	(5		)
NET INCOME ATTRIBUTABLE TO HOLDINGS’ SHAREHOLDERS	$	194		$	149		$	326		$	(480	)	$	189

Condensed Consolidating Statement of Comprehensive Income



millions	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Merchandise sales and services	$	—		$	8,310		$	1,826		$	(866	)	$	9,270
Cost of sales, buying and occupancy	—			6,099			1,030			(426		)	6,703
Selling and administrative	—			2,283			602			(440		)	2,445
Depreciation and amortization	—			153			49			—			202
Gain on sales of assets	—			(233		)	(162		)	—			(395		)
Total costs and expenses	—			8,302			1,519			(866		)	8,955
Operating income	—			8			307			—			315
Interest expense	(56		)	(96		)	(27		)	113			(66		)
Interest and investment income	—			11			114			(113		)	12
Income (loss) before income taxes	(56		)	(77		)	394			—			261
Income tax (expense) benefit	19			(18		)	(68		)	—			(67		)
Equity in earnings in subsidiaries	231			244			—			(475		)	—
Net income (loss)	194			149			326			(475		)	194
Loss attributable to noncontrolling interests	—			—			—			(5		)	(5		)
NET INCOME ATTRIBUTABLE TO HOLDINGS’ SHAREHOLDERS	$	194		$	149		$	326		$	(480	)	$	189

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the 13 Weeks Ended May 4, 2013



millions	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(292	)	$	(323	)	$	213		$	110		$	(292	)
Other comprehensive income
Pension and postretirement adjustments, net of tax	—			42			4			—			46
Currency translation adjustments, net of tax	—			—			(7		)	—			(7		)
Unrealized net gain, net of tax	—			1			56			(57		)	—
Total other comprehensive income	—			43			53			(57		)	39
Comprehensive income (loss)	(292		)	(280		)	266			53			(253		)
Comprehensive loss attributable to noncontrolling interests	—			—			—			14			14
Comprehensive income (loss) attributable to Holdings’ shareholders	$	(292	)	$	(280	)	$	266		$	67		$	(239	)

Condensed Consolidating Statement of Comprehensive Income (Loss)

For the 13 Weeks Ended April 28, 2012



millions	Parent			Guarantor Subsidiaries		Non- Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	194		$	149	$	326	$	(475	)	$	194
Other comprehensive income (loss)
Pension and postretirement adjustments, net of tax	—			42		4		—			46
Deferred gain on derivatives, net of tax	2			—		—		—			2
Currency translation adjustments, net of tax	(17		)	—		11		—			(6		)
Total other comprehensive income (loss)	(15		)	42		15		—			42
Comprehensive income	179			191		341		(475		)	236
Comprehensive income attributable to noncontrolling interests	—			—		—		(6		)	(6		)
Comprehensive income attributable to Holdings’ shareholders	$	179		$	191	$	341	$	(481	)	$	230

Condensed Consolidating Statement of Cash Flows

For the 13 Weeks Ended May 4, 2013



millions	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	—		$	(816	)	$	103		$	—		$	(713	)
Proceeds from sales of property and investments	—			5			—			—			5
Net increase in investments and restricted cash	—			—			(1		)	—			(1		)
Purchases of property and equipment	—			(50		)	(10		)	—			(60		)
Net investing with Affiliates	—			—			45			(45		)	—
Net cash provided by (used in) investing activities	—			(45		)	34			(45		)	(56		)
Proceeds from debt issuances	—			—			1			—			1
Repayments of long-term debt	—			(27		)	(1		)	—			(28		)
Increase in short-term borrowings, primarily 90 days or less	—			660			—			—			660
Intercompany dividend	112			—			(112		)	—			—
Net borrowing with Affiliates	(112		)	255			(188		)	45			—
Net cash provided by (used in) financing activities	—			888			(300		)	45			633
Effect of exchange rate changes on cash and cash equivalents	—			—			(2		)	—			(2		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—			27			(165		)	—			(138		)
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	—			320			289			—			609
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	—		$	347		$	124		$	—		$	471

Condensed Consolidating Statement of Cash Flows

For the 13 Weeks Ended April 28, 2012



millions	Parent		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	—	$	(150	)	$	91		$	—		$	(59	)
Proceeds from sales of property and investments	—		274			172			—			446
Net increase in investments and restricted cash	—		—			1			—			1
Purchases of property and equipment	—		(64		)	(16		)	—			(80		)
Net investing with Affiliates	—		—			(12		)	12			—
Net cash provided by investing activities	—		210			145			12			367
Proceeds from debt issuances	—		—			1			—			1
Repayments of long-term debt	—		(106		)	(105		)	—			(211		)
Decrease in short-term borrowings, primarily 90 days or less	—		(72		)	—			—			(72		)
Purchase of Sears Canada shares	—		—			(3		)	—			(3		)
Net borrowing with Affiliates	—		167			(155		)	(12		)	—
Net cash used in financing activities	—		(11		)	(262		)	(12		)	(285		)
Effect of exchange rate changes on cash and cash equivalents	—		—			7			—			7
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	—		49			(19		)	—			30
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	—		336			411			—			747
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	—	$	385		$	392		$	—		$	777