Excel spreadsheet with 13 years of the cash flow statement from Sears. 1. After looking at the cash flow statement information, what are the elements that would affect future earnings? How would those elements affect those future earnings? 2. Based on the cash flow statement, how has Sears remained open after burning through over $6 billion in cash over four years, just to keep the doors open? What examples from the statement support this?

 

Consolidated Statements of Cash Flows (USD S) In Millions CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) (Income) loss from discontinued operations, net of tax Income (loss) from continuing operations Adjustments to reconcile net income to net cash provided by operating activities: Deferred tax valuation allowance Tax benefit resulting from Other Comprehensive Income allocation Depreciation and amortization Impairment charges Gain on sales of assets Gain on sales of investments Pension and post-retirement plan contributions Mark-to-market adjustments of financial instruments Pension and postretirement plan settlements Amortization of deferred gain on sale-leaseback Amortization of debt issuance costs and accretion of debt discount Settlement of Canadian dollar hedges Other gains Change in operating assets and liabilities (net of acquisitions and dispositions): Deferred income taxes Merchandise inventories Merchandise payables Income and other taxes Mark-to-market asset on Sears Canada U.S. dollar collar contracts Other operating assets Other operating liabilities Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions of businesses, net of cash acquired Proceeds from sales of property and investments Net decrease (increase) in investments and restricted cash Purchases of property and equipment De-consolidation of Sears Canada cash Proceeds from Sears Canada rights offering Cash settlement of swaps Net cash provided by (used in) investing activities-discontinued operations Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Stock issued under executive compensation plans Proceeds from debt issuances Repayments of long-term debt Increase (decrease) in short-term borrowings, primarily 90 days or less Sears Hometown and Outlet Stores, Inc. pre-separation funding Proceeds from the sale of Sears Hometown and Outlet Stores, Inc. Lands' End, Inc. pre-separation funding Separation of Lands' End, Inc. Jan. 28, 2017 Jan. 30, 2016 Jan. 31, 2015 Debt issuance costs Purchase of Sears Canada shares Scars Canada dividends paid to minority shareholders. Purchase of treasury stock. Sale leaseback Other Net cash used in financing activities Effect of exchange rate changes on cash and cash equivalents NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR CASH AND CASH EQUIVALENTS. END OF YEAR SUPPLEMENTAL INFORMATION: Capital lease obligation incurred Supplemental Cash Flow Data: Income taxes paid, net of refunds Cash interest paid Unpaid liability to acquire equipment and software Non-cash dividend in connection with Spin-Off transactions -2,221 836 -71 375 427 -247 0 -334 15 -88 81 0 -987 1.213 -526 80 -52 118. -1.381 386 -142 0 0 244 2.028 -66 -797 0 0 -51 71 1.185 0 48 238 286 25 23 275 18 -1,128 217 0 422 274 -743 0 -311 66 -52 60 0 -519 -229 -47 -95 54 -136 -2,167 2,730 -211 0 0 2,519 0 -1,405 583 0 0 -50 508 -364 0 -12 250 238 6 45 252 27 -1,810 835 0 581 63 -207 -105 -450 -3 ... 0 38 8 -719 1,091 -528 -110 -66 -5 -1,387 424 -270 -207 380 327 1,025 -80 -1,117 $15 -31 -27 0 285 -3 -778 1,028 250 45 119 230 25 Feb. 01, 2014 -1,116 720 -97 732 233 -667 -169 -426 0 0 9 -441 446 -230 63 44 -210 -1,109 995 -2 -329 0 0 664 994 -83 238 0 0 -14 -233 0 902 -38 419 609 1,028 31 21 206 41 Feb. 02, 2013 -1,054 0 -1,054 237 830 330 -468 -28 -593 455 6 -206 427 -117 -63 1 -100 40 -303 532 37 -378 191 S -335 -81 100 347 -3 -10 -50 0 -27 1 -138 747 609 61 40 199 30 -542 Jan. 28, 2012 -3,147 27 -3,120 1,798 853 649 -64 -390 -533 545 -134 -50 2 67 102 -275 72 8 -432 -352 43 -309 104 -611 815 -35 -43 -183 47 -75 -28 -612 1,359 747 12 Months Ended Jan. 30, 2010 Jan. 29, 2011 150 900 -67 -316 -3 -201 -366 -264 -35 7 4 140 130 35 -441 -406 1.452 -486 35 -30 -603 -69 -394 -95 57 -314 1,689 1.375 297 926 -74 -209 90 188 272 101 65 48 -197 1,507 23 166 -361 -172 13 -335 -117 -81 -7 -424 -951 132 516 1,173 1,689 Jan. 31, 2009 99 981 360 -51 -286 -64 -385 1,003 389 -173 -74 207 -236 992 -37 86 -189 -497 -637 17 -262 280 -678 -643 -161 -449 1,622 1,173 2008 826 1,049 -38 -277 -12 -15 -84 66 93 -541 35 445 1,547 95 -30 -570 68 -437 3 -672 68 -2,926 88 -3,439 112 -2,217 3,839 1,622 2007 1,492 1,143 -82 -413 -42 -92 263 -835 -140 -240 222 152 1,428 -283 141 -508 -10 -660 $24 -875 -83 -816 -1.252 -16 -500 4,339 3,839 2006 858 932 -39 101 58 208 -71 -53 -62 366 2,298 -1,020 2,201 -546 635 176 -577 -414 -27 -735 -590 215 -1.952 24 1,005 3,435 4,440 2005 1,106 27 -946 597 -43 251 66 100 -90 1,068 562 -230 332 -53 -53 1,347 2,088 3,435