SEARS HOLDINGS CORP - FORM 8-K - EX-99.2

Attached files

file	filename
EX-99.3 - EX-99.3 - SEARS HOLDINGS CORP	d679707dex993.htm
EX-99.1 - EX-99.1 - SEARS HOLDINGS CORP	d679707dex991.htm
8-K - 8-K - SEARS HOLDINGS CORP	d679707d8k.htm

Exhibit 99.2


In re: Sears Holdings Corporation, *et al.*		Case No. 18-23538 (RDD)
Debtors		Reporting Period: November 4 - December 1, 2018
		Federal Tax I.D. # 20-1920798

GLOBAL NOTES AND STATEMENTS OF LIMITATIONS

AND DISCLAIMERS REGARDING THE DEBTORS’ MONTHLY OPERATING REPORTS

On October 15, 2018 (the “Petition Date”), Sears Holdings Corporation and 49 of its debtor affiliates, as debtors and debtors in possession in the above-captioned chapter 11 cases (collectively, the “Debtors,” and together with the Debtors’ non-debtor affiliates, the “Company”)¹ filed voluntary petitions for relief under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”). In addition, Debtors SHC Licensed Business LLC and SHC Promotions LLC filed their voluntary petitions for relief on October 18, 2018 and October 22, 2018, respectively. The Debtors’ chapter 11 cases are being jointly administered for procedural purposes only pursuant to Rule 1015(b) of the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”) under the caption Sears Holdings Corporation., et al., Case No. 18-23538 (RDD) (S.D.N.Y.), pursuant to an order entered by the Bankruptcy Court on October 15, 2018 [ECF No. 118]. On October 24, 2018, the United States Trustee for Region 2 (the “U.S. Trustee”) appointed an official committee of unsecured creditors pursuant to section 1102(a) of the Bankruptcy Code (the “Creditors’ Committee”) [ECF No. 276]. The Debtors continue to operate their business and manage their properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy Code.

The following notes and statements and limitations should be referred to, and referenced in connection with, any review of the MOR.

Basis of Presentation. The Debtors are filing their consolidated monthly operating report (the “MOR”) solely for purposes of complying with the monthly operating requirements applicable in the Debtors’ chapter 11 cases. The MOR is in a format acceptable to the U.S. Trustee for the Southern District of New York (the “U.S. Trustee”). The MOR should not be relied upon by any persons for information relating to current or future financial conditions, events, or performance of any of the Debtors or their affiliates.

The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification number, are as follows: Sears Holdings Corporation (0798); Kmart Holding Corporation (3116); Kmart Operations LLC (6546); Sears Operations LLC (4331); Sears, Roebuck and Co. (0680); ServiceLive Inc. (6774); SHC Licensed Business LLC (3718); A&E Factory Service, LLC (6695); A&E Home Delivery, LLC (0205); A&E Lawn & Garden, LLC (5028); A&E Signature Service, LLC (0204); FBA Holdings Inc. (6537); Innovel Solutions, Inc. (7180); Kmart Corporation (9500); MaxServ, Inc. (7626); Private Brands, Ltd. (4022); Sears Development Co. (6028); Sears Holdings Management Corporation (2148); Sears Home & Business Franchises, Inc. (6742); Sears Home Improvement Products, Inc. (8591); Sears Insurance Services, L.L.C. (7182); Sears Procurement Services, Inc. (2859); Sears Protection Company (1250); Sears Protection Company (PR) Inc. (4861); Sears Roebuck Acceptance Corp. (0535); Sears, Roebuck de Puerto Rico, Inc. (3626); SYW Relay LLC (1870); Wally Labs LLC (None); SHC Promotions LLC (9626); Big Beaver of Florida Development, LLC (None); California Builder Appliances, Inc. (6327); Florida Builder Appliances, Inc. (9133); KBL Holding Inc. (1295); KLC, Inc. (0839); Kmart of Michigan, Inc. (1696); Kmart of Washington LLC (8898); Kmart Stores of Illinois LLC (8897); Kmart Stores of Texas LLC (8915); MyGofer LLC (5531); Sears Brands Business Unit Corporation (4658); Sears Holdings Publishing Company, LLC. (5554); Sears Protection Company (Florida), L.L.C. (4239); SHC Desert Springs, LLC (None); SOE, Inc. (9616); StarWest, LLC (5379); STI Merchandising, Inc. (0188); Troy Coolidge No. 13, LLC (None); BlueLight.com, Inc. (7034); Sears Brands, L.L.C. (4664); Sears Buying Services, Inc. (6533); Kmart.com LLC (9022); and Sears Brands Management Corporation (5365). The location of the Debtors’ corporate headquarters is 3333 Beverly Road, Hoffman Estates, Illinois 60179.


In re: Sears Holdings Corporation, *et al.*		Case No. 18-23538 (RDD)
Debtors		Reporting Period: November 4 - December 1, 2018
		Federal Tax I.D. # 20-1920798

In preparing the MOR, the Debtors relied on financial data derived from their books and records that was available at the time of preparation. Subsequent information or discovery may result in material changes to the MOR and errors or omissions may exist. Notwithstanding any such discovery, new information, or errors or omissions, the Debtors do not undertake any obligation or commitment to update the MOR.

This MOR has not been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and does not include all of the information and footnotes required by U.S. GAAP. Therefore, there can be no assurance that the consolidated financial information presented herein is complete, and readers are strongly cautioned not to place undue reliance on the MOR.

The information furnished in this report includes primarily normal recurring adjustments but does not include all the adjustments that would typically be made for the quarterly and annual consolidated financial statements to be in accordance with U.S. GAAP. Certain adjusting entries (including, but not limited to, income tax expense and intercompany profit eliminations) are only prepared on a quarterly basis, and therefore any such adjustments included herein are based on information as of November 3, 2018. Furthermore, the monthly financial information contained herein has not been subjected to the same level of accounting review and testing that the Debtors apply in the preparation of their quarterly and annual consolidated financial information in accordance with U.S. GAAP. Accordingly, upon the application of such procedures, the Debtors believe that the financial information may be subject to change, and these changes could be material. Finally, the Debtors’ fiscal year end is on February 2, 2019, and their audited consolidated financial statements will be prepared following that date.

This is the first filing of the MOR since the Petition Date. In future periods, any changes to prior period balances will be reflected in the current month’s MOR.

The results of operations contained herein are not necessarily indicative of results that may be expected from any other period or for the full year and may not necessarily reflect the consolidated results of operations and financial position of the Debtors in the future.

Reporting Period. Unless otherwise noted herein, the MOR generally reflects the Debtors’ books and records and financial activity occurring during the applicable reporting period. Except as otherwise noted, no adjustments have been made for activity occurring after the close of the reporting period.

Consolidated Entity Accounts Payable and Disbursements Systems. Cash is received and disbursed by the Debtors as described in the Motion of Debtors for Authority to (I) Continue Using Existing Cash Management System, Bank Accounts, and Business Forms, (II) Implement Ordinary Course Changes to Cash Management System, (III) Continue Intercompany Transactions, and (IV) Provide Administrative Expense Priority for Post-Petition Intercompany Claims and Related Relief (the “Cash Management Motion”) to the extent approved in the order granting the Cash Management Motion on a final basis (the “Final Cash Management Order”) [ECF No. 1394].


In re: Sears Holdings Corporation, *et al.*		Case No. 18-23538 (RDD)
Debtors		Reporting Period: November 4 - December 1, 2018
		Federal Tax I.D. # 20-1920798

Accuracy. The financial information disclosed herein was not prepared in accordance with federal or state securities laws or other applicable non-bankruptcy law or in lieu of complying with any periodic reporting requirements thereunder. Persons and entities trading in or otherwise purchasing, selling, or transferring the claims against or equity interests in the Debtors should evaluate this financial information in light of the purposes for which it was prepared. The Debtors are not liable for and undertake no responsibility to indicate variations from securities laws or for any evaluations of the Debtors based on this financial information or any other information.

Debtor in Possession Financing. On November 30, 2018, the Debtors received authorization from the Bankruptcy Court to access their $1,830,378,380 Debtor-in-Possession ABL Facility on a final basis pursuant to the Final Order (I) Authorizing the Debtors to (A) Obtain Post-Petition Financing, (B) Grant Senior Secured Priming Liens and Superpriority Administrative Expense Claims, and (C) Utilize Cash Collateral; (II) Granting Adequate Protection to the Pre-Petition Secured Parties; (III) Modifying the Automatic Stay; and (IV) Granting Related Relief [ECF No. 955] (the “Final DIP ABL Order”), and on December 28, 2018 the Debtors received authorization to access on a final basis their $350 million Junior Debtor-in-Possession Facility pursuant to the Final Junior DIP Order (I) Authorizing the Debtors to (A) Obtain Post-Petition Financing and (B) Grant Secured Priming Liens and Superpriority Administrative Expense Claim; (II) Modifying the Automatic Stay; and (IV) Granting Related Relief [ECF No. 1436] (the “Final Junior DIP Order,” and together with the Final ABL DIP Order, the “DIP Orders”) and the documents governing the debtor in possession financing thereunder (the “DIP Loan Documents”). Please see the DIP Orders for additional detail.

Payment of Pre-Petition Claims Pursuant to First Day Orders. Within the first two days of the Debtors’ chapter 11 cases, the Bankruptcy Court entered orders (the “First Day Orders”) authorizing, but not directing, the Debtors to pay, on an interim basis, certain pre-petition (a) claims of critical vendors, shippers, warehousemen, other lien claimants, and foreign creditors; (b) taxes; (c) employee wages, salaries and other compensation and benefits; and (d) obligations related to the use of the Debtors’ cash management system, among other things. On November 16, 2018, the Bankruptcy Court approved the relief requested in connection with the First Day Orders on a final basis, except for the Final Cash Management Order, which was entered on December 21, 2018. To the extent any payments were made on account of such claims or obligations following the commencement of these chapter 11 cases pursuant to the authority granted to the Debtors by the Bankruptcy Court under the First Day Orders, such payments have been included in the MOR unless otherwise noted.

7.	Reservation of Rights. The Debtors reserve all rights to amend or supplement the MOR in all respects, as may be necessary or appropriate. Nothing contained in this MOR shall constitute a waiver of any of the Debtors’ rights or an admission with respect to their chapter 11 cases.


In re: Sears Holdings Corporation, *et al.*		Case No. 18-23538 (RDD)
Debtors		Reporting Period: November 4 - December 1, 2018
		Federal Tax I.D. # 20-1920798

8.	Specific MOR Disclosures.

Notes to MOR-la: The net cash receipts represent cash received by each Debtor assigned bank account.

Notes to MOR-1b: Certain Debtors make disbursements on behalf of other Debtors. The net cash disbursements represents cash disbursed by the applicable Debtor excluding disbursements made on behalf of other Debtors, which are reflected on the accounts of the Debtors on whose behalf they are made. The total disbursements (for quarterly fee purposes) represent the disbursements made on behalf of each affiliated Debtor.

Notes to MOR-1c: All amounts listed are the bank balances as of the date in the respective footnote on MOR 1-c. The Debtors have, on a timely basis, performed bank account reconciliations in the ordinary course of business. Due to the level of detailed records, copies of the bank account statements and reconciliations are available for inspection only upon request.

Notes to MOR-1d: This MOR lists the professional fees paid during this reporting period to Restructuring Professionals retained by the Debtors in these chapter 11 cases.

Notes to MOR-2 & MOR-3: The amounts currently classified as liabilities subject to compromise may be subject to future adjustments depending on Bankruptcy Court actions, payments pursuant to Bankruptcy Court orders, further developments with respect to, among other things, the reconciliation and adjudication of claims, determinations of the secured status of certain claims, the value of any collateral securing such claims, rejection of executory contracts, or other events.

Notes to MOR-4a: For status of post-petition tax payments, see disclosures as noted on MOR-4a. Due to the size and detail of such records, (i) copies of IRS Form 6123 or payment receipts; (ii) copies of tax returns filed during the reporting period; and (iii) a taxes aging schedule will be made available upon reasonable request in writing to bankruptcy counsel for the Debtors.

Notes to MOR-4b: The Debtors are current on post-petition payables, taking into consideration pending credits and adjustments and disputes that arise in the ordinary course of business.

Notes to MOR-4c: The Debtors’ accounts receivable aging for the November reporting period has not been finalized at the time of the filing of this MOR. The accounts receivable aging for this reporting period will be made available when finalized upon a reasonable request in writing to bankruptcy counsel for the Debtors.

UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF NEW YORK


In re: SEARS HOLDINGS CORPORATION, *et al.*		Case No. 18-23538 (RDD)
Debtor		Reporting Period: 11/4/18 - 12/1/18
		Federal Tax I.D. No. 20-1920798

CORPORATE MONTHLY OPERATING REPORT


REQUIRED DOCUMENTS	Form No.	Document Attached	Explanation Attached
Schedule of Cash Receipts	MOR-1a	X
Schedule of Cash Disbursements	MOR-1b & 1b (CON’T)	X
Bank Reconciliation (or copies of debtor’s bank reconciliations)	MOR-1c	X
Copies of bank statements			Available Upon Request
Cash disbursements journals			Available Upon Request
Schedule of Retained Restructuring Professionals Fees	MOR-1d	X
Statement of Operations	MOR-2	X
Balance Sheet	MOR-3	X
Status of Post-petition Taxes	MOR-4a	X
Copies of IRS Form 6123 or payment receipt			Available Upon Request
Copies of tax returns filed during reporting period			Available Upon Request
Summary of Unpaid Post-petition Debts	MOR-4b	X
Listing of Aged Accounts Payable			Available Upon Request
Accounts Receivable Reconciliation and Aging	MOR-4c	X
Payments to Insiders	MOR-5	X
Post Petition Status of Secured Notes	MOR-6	X
Debtor Questionnaire	MOR-7	X

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.


/s/ Robert A. Riecker				12/28/18
Signature of Authorized Individual				Date

Robert A. Riecker				Member Office of the CEO and Chief Financial Officer
Printed Name of Authorized Individual				Title of Authorized Individual


In re: SEARS HOLDINGS CORPORATION, *et al.*		Case No. 18-23538 (RDD)
(Jointly Administered)		Reporting Period: 11/4/18 - 12/1/18
		Federal Tax I.D. No. 20-1920798

NOTES TO MONTHLY OPERATING REPORT

The Monthly Operating Report (“MOR”) includes activity for the following Debtors:


#		DEBTOR ENTITY NAME	FILING DATE	BANKRUPTCY CASE NUMBER	COMPLETE EIN OR OTHER TAXPAYER I.D.
	1.	SEARS, ROEBUCK AND CO.	10/15/18	087-18-23537	36-1750680
	2.	SEARS HOLDINGS CORPORATION	10/15/18	087-18-23538	20-1920798
	3.	KMART HOLDING CORPORATION	10/15/18	087-18-23539	32-0073116
	4.	KMART OPERATIONS LLC	10/15/18	087-18-23540	32-0456546
	5.	SEARS OPERATIONS LLC	10/15/18	087-18-23541	35-2524331
	6.	SERVICELIVE, INC.	10/15/18	087-18-23542	36-4616774
	7.	A&E FACTORY SERVICE, LLC	10/15/18	087-18-23543	36-4486695
	8.	A&E HOME DELIVERY, LLC	10/15/18	087-18-23544	37-1500205
	9.	A&E LAWN & GARDEN, LLC	10/15/18	087-18-23545	13-4275028
	10.	A&E SIGNATURE SERVICE, LLC	10/15/18	087-18-23546	37-1500204
	11.	FBA HOLDINGS INC.	10/15/18	087-18-23547	36-4186537
	12.	INNOVEL SOLUTIONS, INC.	10/15/18	087-18-23548	36-1857180
	13.	KMART CORPORATION	10/15/18	087-18-23549	38-0729500
	14.	MAXSERV, INC.	10/15/18	087-18-23550	74-2707626
	15.	PRIVATE BRANDS, LTD.	10/15/18	087-18-23551	55-0544022
	16.	SEARS DEVELOPMENT CO.	10/15/18	087-18-23552	36-2476028
	17.	SEARS HOLDINGS MANAGEMENT CORPORATION	10/15/18	087-18-23553	20-3592148
	18.	SEARS HOME & BUSINESS FRANCHISES, INC.	10/15/18	087-18-23554	98-0126742
	19.	SEARS HOME IMPROVEMENT PRODUCTS, INC.	10/15/18	087-18-23555	25-1698591
	20.	SEARS INSURANCE SERVICES, L.L.C.	10/15/18	087-18-23556	36-4287182
	21.	SEARS PROCUREMENT SERVICES, INC.	10/15/18	087-18-23557	30-0092859
	22.	SEARS PROTECTION COMPANY	10/15/18	087-18-23558	36-4471250
	23.	SEARS PROTECTION COMPANY (PR) INC.	10/15/18	087-18-23559	66-0704861
	24.	SEARS ROEBUCK ACCEPTANCE CORP.	10/15/18	087-18-23560	51-0080535
	25.	SEARS, ROEBUCK DE PUERTO RICO, INC.	10/15/18	087-18-23561	66-0233626
	26.	SYW RELAY LLC	10/15/18	087-18-23562	35-2561870
	27.	WALLY LABS LLC	10/15/18	087-18-23563	None
	28.	BIG BEAVER OF FLORIDA DEVELOPMENT, LLC	10/15/18	087-18-23564	None
	29.	CALIFORNIA BUILDER APPLIANCES, INC.	10/15/18	087-18-23565	68-0406327
	30.	FLORIDA BUILDER APPLIANCES, INC.	10/15/18	087-18-23566	36-3619133
	31.	KBL HOLDING INC.	10/15/18	087-18-23567	26-0031295
	32.	KLC, INC.	10/15/18	087-18-23568	75-2490839
	33.	SEARS PROTECTION COMPANY (FLORIDA), LLC	10/15/18	087-18-23569	20-0224239
	34.	KMART OF WASHINGTON LLC	10/15/18	087-18-23570	61-1448898
	35.	KMART STORES OF ILLINOIS LLC	10/15/18	087-18-23571	61-1448897
	36.	KMART STORES OF TEXAS LLC	10/15/18	087-18-23572	61-1448915
	37.	MYGOFER LLC	10/15/18	087-18-23573	26-4005531
	38.	SEARS BRANDS BUSINESS UNIT CORPORATION	10/15/18	087-18-23574	42-1564658
	39.	SEARS HOLDINGS PUBLISHING COMPANY, LLC	10/15/18	087-18-23575	26-0075554
	40.	KMART OF MICHIGAN, INC.	10/15/18	087-18-23576	38-3551696
	41.	SHC DESERT SPRINGS, LLC	10/15/18	087-18-23577	None
	42.	SOE, INC.	10/15/18	087-18-23578	83-0399616
	43.	STARWEST, LLC	10/15/18	087-18-23579	37-1495379
	44.	STI MERCHANDISING, INC.	10/15/18	087-18-23580	38-2760188
	45.	TROY COOLIDGE NO. 13, LLC	10/15/18	087-18-23581	None
	46.	BLUELIGHT.COM, INC.	10/15/18	087-18-23582	77-0527034
	47.	SEARS BRANDS, L.L.C.	10/15/18	087-18-23583	42-1564664
	48.	SEARS BUYING SERVICES, INC.	10/15/18	087-18-23584	36-3256533
	49.	KMART.COM LLC	10/15/18	087-18-23585	77-0529022
	50.	SEARS BRANDS MANAGEMENT CORPORATION	10/15/18	087-18-23586	36-2555365
	51.	SHC LICENSED BUSINESS LLC	10/18/18	087-18-23616	37-1783718
	52.	SHC PROMOTIONS LLC	10/22/18	087-18-23630	26-4209626


In re: SEARS HOLDINGS CORPORATION, *et al.*		Case No. 18-23538 (RDD)
(Jointly Administered) MOR-1a		Reporting Period: 11/4/18 - 12/1/18 Federal Tax I.D. No. 20-1920798
(in US Dollars) (Unaudited)

SCHEDULE OF RECEIPTS


#		DEBTOR ENTITY NAME	BANKRUPTCY CASE NUMBER		NET CASH RECEIPTS (a)
	1.	SEARS, ROEBUCK AND CO.		087-18-23537	$	696,751,215
	2.	SEARS HOLDINGS CORPORATION		087-18-23538		364,578
	3.	KMART HOLDING CORPORATION		087-18-23539		—
	4.	KMART OPERATIONS LLC		087-18-23540		—
	5.	SEARS OPERATIONS LLC		087-18-23541		—
	6.	SERVICELIVE, INC.		087-18-23542		147,061
	7.	A&E FACTORY SERVICE, LLC		087-18-23543		—
	8.	A&E HOME DELIVERY, LLC		087-18-23544		—
	9.	A&E LAWN & GARDEN, LLC		087-18-23545		—
	10.	A&E SIGNATURE SERVICE, LLC		087-18-23546		—
	11.	FBA HOLDINGS INC.		087-18-23547		—
	12.	INNOVEL SOLUTIONS, INC.		087-18-23548		3,075,176
	13.	KMART CORPORATION		087-18-23549		343,966,608
	14.	MAXSERV, INC.		087-18-23550		—
	15.	PRIVATE BRANDS, LTD.		087-18-23551		—
	16.	SEARS DEVELOPMENT CO.		087-18-23552		—
	17.	SEARS HOLDINGS MANAGEMENT CORPORATION		087-18-23553		33,065,228
	18.	SEARS HOME & BUSINESS FRANCHISES, INC.		087-18-23554		1,348,727
	19.	SEARS HOME IMPROVEMENT PRODUCTS, INC		087-18-23555		7,281,686
	20.	SEARS INSURANCE SERVICES, L.L.C.		087-18-23556		—
	21.	SEARS PROCUREMENT SERVICES, INC.		087-18-23557		—
	22.	SEARS PROTECTION COMPANY		087-18-23558		2,840,615
	23.	SEARS PROTECTION COMPANY (PR) INC.		087-18-23559		—
	24.	SEARS ROEBUCK ACCEPTANCE CORP.		087-18-23560		178,474,241
	25.	SEARS, ROEBUCK DE PUERTO RICO, INC.		087-18-23561		—
	26.	SYW RELAY LLC		087-18-23562		—
	27.	WALLY LABS LLC		087-18-23563		—
	28.	BIG BEAVER OF FLORIDA DEVELOPMENT, LLC		087-18-23564		—
	29.	CALIFORNIA BUILDER APPLIANCES, INC.		087-18-23565		4,247,098
	30.	FLORIDA BUILDER APPLIANCES, INC.		087-18-23566		8,570,123
	31.	KBL HOLDING INC.		087-18-23567		—
	32.	KLC, INC.		087-18-23568		—
	33.	SEARS PROTECTION COMPANY (FLORIDA), LLC		087-18-23569		172,622
	34.	KMART OF WASHINGTON LLC		087-18-23570		—
	35.	KMART STORES OF ILLINOIS LLC		087-18-23571		—
	36.	KMART STORES OF TEXAS LLC		087-18-23572		—
	37.	MYGOFER LLC		087-18-23573		—
	38.	SEARS BRANDS BUSINESS UNIT CORP		087-18-23574		—
	39.	SEARS HOLDINGS PUBLISHING COMPANY, LLC		087-18-23575		—
	40.	KMART OF MICHIGAN, INC.		087-18-23576		—
	41.	SHC DESERT SPRINGS, LLC		087-18-23577		—
	42.	SOE, INC.		087-18-23578		—
	43.	STARWEST, LLC		087-18-23579		1,536,279
	44.	STI MERCHANDISING, INC.		087-18-23580		—
	45.	TROY COOLIDGE NO. 13, LLC		087-18-23581		—
	46.	BLUELIGHT.COM, INC.		087-18-23582		—
	47.	SEARS BRANDS, L.L.C.		087-18-23583		—
	48.	SEARS BUYING SERVICES, INC.		087-18-23584		—
	49.	KMART.COM LLC		087-18-23585		—
	50.	SEARS BRANDS MANAGEMENT CORPORATION		087-18-23586		234,247
	51.	SHC LICENSED BUSINESS LLC		087-18-23616		—
	52.	SHC PROMOTIONS LLC		087-18-23630		—

		TOTAL			$	1,282,075,503

Footnote(s):

(a)	The net cash receipts represent cash received by each Debtor assigned bank account.


In re: SEARS HOLDINGS CORPORATION, *et al.*		Case No. 18-23538 (RDD)
(Jointly Administered) MOR-1b		Reporting Period: 11/4/18 - 12/1/18 Federal Tax I.D. No. 20-1920798
(in US Dollars)
(Unaudited)

SCHEDULE OF DISBURSEMENTS


#		DEBTOR ENTITY NAME	BANKRUPTCY CASE NUMBER		NET CASH DISBURSEMENTS (a)		PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES (i.e. escrow accounts)		TOTAL DISBURSEMENTS (FOR QUARTERLY FEE PURPOSES)		F/N
	1.	SEARS, ROEBUCK AND CO.		087-18-23537	$	990,732,960	$	—	$	990,732,960
	2.	SEARS HOLDINGS CORPORATION		087-18-23538		9,182		281,927,957		281,937,139		(b)
	3.	KMART HOLDING CORPORATION		087-18-23539		—		—		—
	4.	KMART OPERATIONS LLC		087-18-23540		14,894,658		—		14,894,658
	5.	SEARS OPERATIONS LLC		087-18-23541		24,929,292		—		24,929,292
	6.	SERVICELIVE, INC.		087-18-23542		331,616		—		331,616
	7.	A&E FACTORY SERVICE, LLC		087-18-23543		1,165,534		—		1,165,534
	8.	A&E HOME DELIVERY, LLC		087-18-23544		238,307		—		238,307
	9.	A&E LAWN & GARDEN, LLC		087-18-23545		—		—		—
	10.	A&E SIGNATURE SERVICE, LLC		087-18-23546		—		—		—
	11.	FBA HOLDINGS INC.		087-18-23547		—		—		—
	12.	INNOVEL SOLUTIONS, INC.		087-18-23548		56,471,269		—		56,471,269
	13.	KMART CORPORATION		087-18-23549		152,004,060		—		152,004,060
	14.	MAXSERV, INC.		087-18-23550		2,841,800		—		2,841,800
	15.	PRIVATE BRANDS, LTD.		087-18-23551		—		—		—
	16.	SEARS DEVELOPMENT CO.		087-18-23552		—		—		—
	17.	SEARS HOLDINGS MANAGEMENT CORPORATION		087-18-23553		62,324,902		—		62,324,902
	18.	SEARS HOME & BUSINESS FRANCHISES, INC.		087-18-23554		228,781		—		228,781
	19.	SEARS HOME IMPROVEMENT PRODUCTS, INC		087-18-23555		18,338,609		—		18,338,609
	20.	SEARS INSURANCE SERVICES, L.L.C.		087-18-23556		313,461		—		313,461
	21.	SEARS PROCUREMENT SERVICES, INC.		087-18-23557		—		—		—
	22.	SEARS PROTECTION COMPANY		087-18-23558		171,529		—		171,529
	23.	SEARS PROTECTION COMPANY (PR) INC.		087-18-23559		—		—		—
	24.	SEARS ROEBUCK ACCEPTANCE CORP.		087-18-23560		13,916,285		—		13,916,285
	25.	SEARS, ROEBUCK DE PUERTO RICO, INC.		087-18-23561		6,096,820		—		6,096,820
	26.	SYW RELAY LLC		087-18-23562		11,366		—		11,366
	27.	WALLY LABS LLC		087-18-23563		—		—		—
	28.	BIG BEAVER OF FLORIDA DEVELOPMENT, LLC		087-18-23564		—		—		—
	29.	CALIFORNIA BUILDER APPLIANCES, INC.		087-18-23565		8,140,280		—		8,140,280
	30.	FLORIDA BUILDER APPLIANCES, INC.		087-18-23566		9,251,316		—		9,251,316
	31.	KBL HOLDING INC.		087-18-23567		—		—		—
	32.	KLC, INC.		087-18-23568		—		—		—
	33.	SEARS PROTECTION COMPANY (FLORIDA), LLC		087-18-23569		—		—		—
	34.	KMART OF WASHINGTON LLC		087-18-23570		483,255		—		483,255
	35.	KMART STORES OF ILLINOIS LLC		087-18-23571		2,435,468		—		2,435,468
	36.	KMART STORES OF TEXAS LLC		087-18-23572		288,215		—		288,215
	37.	MYGOFER LLC		087-18-23573		—		—		—
	38.	SEARS BRANDS BUSINESS UNIT CORP		087-18-23574		24,131		—		24,131
	39.	SEARS HOLDINGS PUBLISHING COMPANY, LLC		087-18-23575		—		—		—
	40.	KMART OF MICHIGAN, INC.		087-18-23576		4,269,796		—		4,269,796
	41.	SHC DESERT SPRINGS, LLC		087-18-23577		—		—		—
	42.	SOE, INC.		087-18-23578		—		—		—
	43.	STARWEST, LLC		087-18-23579		3,352,693		—		3,352,693
	44.	STI MERCHANDISING, INC.		087-18-23580		—		—		—
	45.	TROY COOLIDGE NO. 13, LLC		087-18-23581		—		—		—
	46.	BLUELIGHT.COM, INC.		087-18-23582		—		—		—
	47.	SEARS BRANDS, L.L.C.		087-18-23583		—		—		—
	48.	SEARS BUYING SERVICES, INC.		087-18-23584		—		—		—
	49.	KMART.COM LLC		087-18-23585		659,696		—		659,696
	50.	SEARS BRANDS MANAGEMENT CORPORATION		087-18-23586		4,072,191		—		4,072,191
	51.	SHC LICENSED BUSINESS LLC		087-18-23616		—		—		—
	52.	SHC PROMOTIONS LLC		087-18-23630		56,813		—		56,813

		TOTAL			$	1,378,054,285	$	281,927,957	$	1,659,982,242

Footnote(s):

(a)	The net cash disbursements represent cash disbursed by the Debtor entity excluding disbursements made on behalf of other Debtor entities, which are reflected on the accounts of the Debtors on whose behalf they are made.

(b)	Sears Holdings Corporation (087-18-23538) $281.9MM relates to a disbursement from the escrow PBGC account.


In re: SEARS HOLDINGS CORPORATION, *et al.*		Case No. 18-23538 (RDD)
(Jointly Administered) MOR-1b (CON’T)		Reporting Period: 11/4/18 - 12/1/18 Federal Tax I.D. No. 20-1920798
(in US Dollars)
(Unaudited)

QTD SUMMARY OF DISBURSEMENTS BY DEBTOR


				Q4’18
			BANKRUPTCY	TOTAL DISBURSEMENTS (FOR QUARTERLY FEE PURPOSES)		TOTAL DISBURSEMENTS (FOR QUARTERLY FEE PURPOSES)		QTD TOTAL DISBURSEMENTS (FOR QUARTERLY FEE PURPOSES)
#		DEBTOR ENTITY NAME	CASE NUMBER	OCT. 15 - NOV. 3, 2018		NOV. 4 - DEC. 1, 2018		OCT. 15 - DEC. 1, 2018
	1.	SEARS, ROEBUCK AND CO.	087-18-23537	$	255,100,889	$	990,732,960	$	1,245,833,849
	2.	SEARS HOLDINGS CORPORATION	087-18-23538		949,045		281,937,139		282,886,184
	3.	KMART HOLDING CORPORATION	087-18-23539		—		—		—
	4.	KMART OPERATIONS LLC	087-18-23540		4,804,392		14,894,658		19,699,050
	5.	SEARS OPERATIONS LLC	087-18-23541		15,302,164		24,929,292		40,231,456
	6.	SERVICELIVE, INC.	087-18-23542		152,786		331,616		484,402
	7.	A&E FACTORY SERVICE, LLC	087-18-23543		800,784		1,165,534		1,966,318
	8.	A&E HOME DELIVERY, LLC	087-18-23544		158,551		238,307		396,857
	9.	A&E LAWN & GARDEN, LLC	087-18-23545		—		—		—
	10.	A&E SIGNATURE SERVICE, LLC	087-18-23546		—		—		—
	11.	FBA HOLDINGS INC.	087-18-23547		—		—		—
	12.	INNOVEL SOLUTIONS, INC.	087-18-23548		19,307,550		56,471,269		75,778,819
	13.	KMART CORPORATION	087-18-23549		74,762,024		152,004,060		226,766,084
	14.	MAXSERV, INC.	087-18-23550		1,961,037		2,841,800		4,802,837
	15.	PRIVATE BRANDS, LTD.	087-18-23551		—		—		—
	16.	SEARS DEVELOPMENT CO.	087-18-23552		—		—		—
	17.	SEARS HOLDINGS MANAGEMENT CORPORATION	087-18-23553		36,516,398		62,324,902		98,841,300
	18.	SEARS HOME & BUSINESS FRANCHISES, INC.	087-18-23554		418,338		228,781		647,119
	19.	SEARS HOME IMPROVEMENT PRODUCTS, INC	087-18-23555		11,508,091		18,338,609		29,846,701
	20.	SEARS INSURANCE SERVICES, L.L.C.	087-18-23556		24,074		313,461		337,535
	21.	SEARS PROCUREMENT SERVICES, INC.	087-18-23557		—		—		—
	22.	SEARS PROTECTION COMPANY	087-18-23558		309,400		171,529		480,929
	23.	SEARS PROTECTION COMPANY (PR) INC.	087-18-23559		—		—		—
	24.	SEARS ROEBUCK ACCEPTANCE CORP.	087-18-23560		19,529		13,916,285		13,935,814
	25.	SEARS, ROEBUCK DE PUERTO RICO, INC.	087-18-23561		3,823,797		6,096,820		9,920,617
	26.	SYW RELAY LLC	087-18-23562		3,734		11,366		15,101
	27.	WALLY LABS LLC	087-18-23563		—		—		—
	28.	BIG BEAVER OF FLORIDA DEVELOPMENT, LLC	087-18-23564		—		—		—
	29.	CALIFORNIA BUILDER APPLIANCES, INC.	087-18-23565		2,551,620		8,140,280		10,691,900
	30.	FLORIDA BUILDER APPLIANCES, INC.	087-18-23566		4,330,290		9,251,316		13,581,606
	31.	KBL HOLDING INC.	087-18-23567		—		—		—
	32.	KLC, INC.	087-18-23568		—		—		—
	33.	SEARS PROTECTION COMPANY (FLORIDA), LLC	087-18-23569		—		—		—
	34.	KMART OF WASHINGTON LLC	087-18-23570		307,014		483,255		790,269
	35.	KMART STORES OF ILLINOIS LLC	087-18-23571		1,148,561		2,435,468		3,584,029
	36.	KMART STORES OF TEXAS LLC	087-18-23572		143,524		288,215		431,738
	37.	MYGOFER LLC	087-18-23573		—		—		—
	38.	SEARS BRANDS BUSINESS UNIT CORP	087-18-23574		507,742		24,131		531,873
	39.	SEARS HOLDINGS PUBLISHING COMPANY, LLC	087-18-23575		—		—		—
	40.	KMART OF MICHIGAN, INC.	087-18-23576		2,129,276		4,269,796		6,399,072
	41.	SHC DESERT SPRINGS, LLC	087-18-23577		—		—		—
	42.	SOE, INC.	087-18-23578		—		—		—
	43.	STARWEST, LLC	087-18-23579		4,067,014		3,352,693		7,419,706
	44.	STI MERCHANDISING, INC.	087-18-23580		—		—		—
	45.	TROY COOLIDGE NO. 13, LLC	087-18-23581		—		—		—
	46.	BLUELIGHT.COM, INC.	087-18-23582		—		—		—
	47.	SEARS BRANDS, L.L.C.	087-18-23583		—		—		—
	48.	SEARS BUYING SERVICES, INC.	087-18-23584		—		—		—
	49.	KMART.COM LLC	087-18-23585		229,687		659,696		889,383
	50.	SEARS BRANDS MANAGEMENT CORPORATION	087-18-23586		4,198,791		4,072,191		8,270,982
	51.	SHC LICENSED BUSINESS LLC	087-18-23616		—		—		—
	52.	SHC PROMOTIONS LLC	087-18-23630		45,116		56,813		101,929

		Total		$	445,581,218	$	1,659,982,242	$	2,105,563,459


In re: SEARS HOLDINGS CORPORATION, *et al.*		Case No. 18-23538 (RDD)
(Jointly Administered)		Reporting Period: 11/4/18 - 12/1/18
MOR-1c		Federal Tax I.D. No. 20-1920798
(in US Dollars)
(Unaudited)

BANK ACCOUNT INFORMATION


#	LEGAL ENTITY	CASE NUMBER	BANK	LAST 4 DIGITS ACCOUNT #		BANK BALANCE		F/N
1.	California Builder Appliances, Inc.	087-18-23565	Bank of America, N.A.		6850		—	(a)
2.	Florida Builder Appliances, Inc.	087-18-23566	Bank of America, N.A.		7770		—	(a)
3.	Innovel Solutions, Inc.	087-18-23548	Bank of America, N.A.		3618		—	(a)
4.	Kmart Corporation	087-18-23549	Banco Popular		0247		53,827	(b)
5.	Kmart Corporation	087-18-23549	Banco Popular		6180		600,799	(b)
6.	Kmart Corporation	087-18-23549	BancorpSouth		3945		11,800	(c)
7.	Kmart Corporation	087-18-23549	Bank of America, N.A.		0136		—	(a)
8.	Kmart Corporation	087-18-23549	Bank of America, N.A.		0508		—	(a)
9.	Kmart Corporation	087-18-23549	Bank of America, N.A.		0986		—	(a)
10.	Kmart Corporation	087-18-23549	Bank of America, N.A.		0994		—	(a)
11.	Kmart Corporation	087-18-23549	Bank of America, N.A.		1000		—	(a)
12.	Kmart Corporation	087-18-23549	Bank of America, N.A.		2102		267,985	(a)
13.	Kmart Corporation	087-18-23549	Bank of America, N.A.		3295		—	(a)
14.	Kmart Corporation	087-18-23549	Bank of America, N.A.		3531		—	(a)
15.	Kmart Corporation	087-18-23549	Bank of America, N.A.		3816		—	(a)
16.	Kmart Corporation	087-18-23549	Bank of America, N.A.		3896		—	(e)
17.	Kmart Corporation	087-18-23549	Bank of America, N.A.		3929		580,457	(e)
18.	Kmart Corporation	087-18-23549	Bank of America, N.A.		4404		—	(a)
19.	Kmart Corporation	087-18-23549	Bank of America, N.A.		5450		10,000,000	(d)
20.	Kmart Corporation	087-18-23549	Bank of America, N.A.		6005		—	(a)
21.	Kmart Corporation	087-18-23549	Bank of America, N.A.		6911		—	(a)
22.	Kmart Corporation	087-18-23549	Bank of America, N.A.		7539		—	(e)
23.	Kmart Corporation	087-18-23549	Bank of America, N.A.		7542		—	(e)
24.	Kmart Corporation	087-18-23549	Bank of America, N.A.		7555		—	(e)
25.	Kmart Corporation	087-18-23549	Bank of America, N.A.		7743		—	(e)
26.	Kmart Corporation	087-18-23549	Bank of America, N.A.		7756		—	(e)
27.	Kmart Corporation	087-18-23549	Bank of America, N.A.		7769		—	(a)
28.	Kmart Corporation	087-18-23549	Bank of America, N.A.		7772		—	(a)
29.	Kmart Corporation	087-18-23549	Bank of America, N.A.		7785		—	(e)
30.	Kmart Corporation	087-18-23549	Bank of America, N.A.		7798		—	(a)
31.	Kmart Corporation	087-18-23549	Bank of America, N.A.		7808		—	(a)
32.	Kmart Corporation	087-18-23549	Bank of America, N.A.		7811		—	(a)
33.	Kmart Corporation	087-18-23549	Bank of America, N.A.		7824		—	(e)
34.	Kmart Corporation	087-18-23549	Bank of America, N.A.		7837		—	(e)
35.	Kmart Corporation	087-18-23549	Bank of America, N.A.		7970		—	(f)
36.	Kmart Corporation	087-18-23549	Bank of America, N.A.		8978		4,293,343	(h)
37.	Kmart Corporation	087-18-23549	Bank Of Oklahoma		5769		9,098	(a)
38.	Kmart Corporation	087-18-23549	BB&T Bank		8654		6,712	(a)
39.	Kmart Corporation	087-18-23549	Capital One Bank		9632		66,466	(a)
40.	Kmart Corporation	087-18-23549	Cherokee State Bank		0494		68,382	(e)
41.	Kmart Corporation	087-18-23549	Citizens Bank		7910		326,865	(a)


In re: SEARS HOLDINGS CORPORATION, *et al.*		Case No. 18-23538 (RDD)
(Jointly Administered)		Reporting Period: 11/4/18 - 12/1/18
MOR-1c		Federal Tax I.D. No. 20-1920798
(in US Dollars)
(Unaudited)

BANK ACCOUNT INFORMATION


		CASE		LAST 4 DIGITS		BANK
#	LEGAL ENTITY	NUMBER	BANK	ACCOUNT #		BALANCE		F/N
42.	Kmart Corporation	087-18-23549	First and Farmers Bank		0543		10,000	(e)
43.	Kmart Corporation	087-18-23549	First Bank and Trust Company		9130		91,383	(g)
44.	Kmart Corporation	087-18-23549	First Hawaiian Bank		0940		331,574	(a)
45.	Kmart Corporation	087-18-23549	First Interstate Bank of Billings NA		2277		15,147	(b)
46.	Kmart Corporation	087-18-23549	First Interstate Bank of Riverton		1274		2,670	(b)
47.	Kmart Corporation	087-18-23549	First National Bank		0001		17,379	(e)
48.	Kmart Corporation	087-18-23549	Fidelity Bank		2180		3,841	(e)
49.	Kmart Corporation	087-18-23549	First National Bank of Grayson		4081		81,980	(e)
50.	Kmart Corporation	087-18-23549	First Security		9005		34,651	(e)
51.	Kmart Corporation	087-18-23549	First Security		7014		45,505	(i)
52.	Kmart Corporation	087-18-23549	First State Bank		6705		4,000	(e)
53.	Kmart Corporation	087-18-23549	First Tennessee		0555		47,125	(a)
54.	Kmart Corporation	087-18-23549	Hilltop National Bank		4003		3,994	(e)
55.	Kmart Corporation	087-18-23549	Iowa State Bank		4408		58,891	(e)
56.	Kmart Corporation	087-18-23549	M&T Bank		2880		6,600	(a)
57.	Kmart Corporation	087-18-23549	NBT Bank		0573		3,952	(e)
58.	Kmart Corporation	087-18-23549	NorState Federal Credit Union		6752		25	(e)
59.	Kmart Corporation	087-18-23549	Old National Bank		5501		19,324	(e)
60.	Kmart Corporation	087-18-23549	PNC Bank		0169		177,290	(a)
61.	Kmart Corporation	087-18-23549	PNC Bank		3334		—	(a)
62.	Kmart Corporation	087-18-23549	PNC Bank		9553		—	(a)
63.	Kmart Corporation	087-18-23549	Union Bank		1583		649,064	(e)
64.	Kmart Corporation	087-18-23549	United Missouri Bank		0553		98,652	(a)
65.	Kmart Corporation	087-18-23549	United Missouri Bank		3100		5,000	(a)
66.	Kmart Corporation	087-18-23549	United Missouri Bank		4642		10,000	(a)
67.	Kmart Corporation	087-18-23549	Wells Fargo		0318		636,027	(a)
68.	Kmart Corporation	087-18-23549	Zions National Bank		6778		7,007	(e)
69.	Sears Holdings Corporation	087-18-23538	Bank of America, N.A.		0679		19,292	(e)
70.	Sears Holdings Corporation	087-18-23538	Bank of America, N.A.		4266		—	(a)
71.	Sears Holdings Corporation	087-18-23538	Bank of America, N.A.		6719		—	(a)
72.	Sears Holdings Management Corporation	087-18-23553	Bank of America, N.A.		5426		—	(e)
73.	Sears Holdings Management Corporation	087-18-23553	Bank of America, N.A.		6338		—	(e)
74.	Sears Holdings Management Corporation	087-18-23553	Bank of America, N.A.		6722		—	(a)
75.	Sears Holdings Management Corporation	087-18-23553	KeyBank		1056		17,075	(e)
76.	Sears Holdings Management Corporation	087-18-23553	US Bank		8942		231	(e)
77.	Sears Home Improvement Products, Inc.	087-18-23555	Bank of America, N.A.		0978		—	(a)
78.	Sears Protection Company	087-18-23558	Bank of America, N.A.		4583		78,826	(a)
79.	Sears Protection Company (Florida), LLC	087-18-23569	Bank of America, N.A.		4596		8,013	(a)
80.	Sears Protection Company (PR), Inc.	087-18-23559	Banco Popular		5678		22,442	(a)
81.	Sears Roebuck Acceptance Corp.	087-18-23560	Bank of America, N.A.		0955		—	(e)
82.	Sears Roebuck Acceptance Corp.	087-18-23560	Bank of America, N.A.		6815		—	(e)


In re: SEARS HOLDINGS CORPORATION, *et al.*		Case No. 18-23538 (RDD)
(Jointly Administered)		Reporting Period: 11/4/18 - 12/1/18
MOR-1c		Federal Tax I.D. No. 20-1920798
(in US Dollars)
(Unaudited)

BANK ACCOUNT INFORMATION


		CASE		LAST 4 DIGITS		BANK
#	LEGAL ENTITY	NUMBER	BANK	ACCOUNT #		BALANCE		F/N
83.	Sears Roebuck Acceptance Corp.	087-18-23560	Bank of America, N.A.		9512		88,015	(e)
84.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		0149		—	(a)
85.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		0556		—	(e)
86.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		0895		—	(a)
87.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		0903		—	(a)
88.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		0911		—	(a)
89.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		0929		—	(a)
90.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		0945		—	(a)
91.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		0952		—	(a)
92.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		1451		—	(a)
93.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		1595		2,117,720	(a)
94.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		3107		—	(e)
95.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		3266		—	(a)
96.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		4120		—	(a)
97.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		4205		—	(a)
98.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		4394		—	(e)
99.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		5261		173,799	(a)
100.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		5468		—	(a)
101.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		5885		—	(a)
102.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		6570		56,957,889	(g)
103.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		6654		1,434	(e)
104.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		6667		—	(e)
105.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		7607		—	(e)
106.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		7776		—	(a)
107.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		7802		—	(a)
108.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		7828		—	(e)
109.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		7831		—	(e)
110.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		7844		—	(e)
111.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		7857		—	(e)
112.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		7969		—	(e)
113.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		7972		—	(e)
114.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		8279		N/A	(j)
115.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		8855		—	(a)
116.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		8868		—	(a)
117.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		8871		—	(e)
118.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		8884		—	(a)
119.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		8960		—	(e)
120.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		8965		81,056,251	(h)
121.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		8973		—	(e)
122.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		8981		1,570,669	(a)
123.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		8986		—	(e)


In re: SEARS HOLDINGS CORPORATION, *et al.*		Case No. 18-23538 (RDD)
(Jointly Administered)		Reporting Period: 11/4/18 - 12/1/18
MOR-1c		Federal Tax I.D. No. 20-1920798
(in US Dollars)
(Unaudited)

BANK ACCOUNT INFORMATION


		CASE		LAST 4 DIGITS		BANK
#	LEGAL ENTITY	NUMBER	BANK	ACCOUNT #		BALANCE		F/N
124.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		8994		–	(e)
125.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		9415		1,847	(e)
126.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		9457		636,899	(e)
127.	Sears, Roebuck and Co.	087-18-23537	Bank of America, N.A.		9939		–	(a)
128.	Sears, Roebuck and Co.	087-18-23537	Bank Of Oklahoma		1048		96,211	(a)
129.	Sears, Roebuck and Co.	087-18-23537	Capital One Bank		4557		–	(c)
130.	Sears, Roebuck and Co.	087-18-23537	Capital One Bank		9999		10,272	(a)
131.	Sears, Roebuck and Co.	087-18-23537	Citizens Bank		3397		194,293	(a)
132.	Sears, Roebuck and Co.	087-18-23537	First Hawaiian Bank		8911		220,819	(a)
133.	Sears, Roebuck and Co.	087-18-23537	First Tennessee		0003		23,659	(a)
134.	Sears, Roebuck and Co.	087-18-23537	KeyBank		4236		38,539	(e)
135.	Sears, Roebuck and Co.	087-18-23537	PNC Bank		2515		157,695	(a)
136.	Sears, Roebuck and Co.	087-18-23537	PNC Bank		3342		–	(a)
137.	Sears, Roebuck and Co.	087-18-23537	PNC Bank		3424		–	(a)
138.	Sears, Roebuck and Co.	087-18-23537	Regions Bank		5433		100,177	(a)
139.	Sears, Roebuck and Co.	087-18-23537	Union Bank		4871		464,987	(a)
140.	Sears, Roebuck and Co.	087-18-23537	Wells Fargo		2397		399,143	(a)
141.	Sears, Roebuck de Puerto Rico, Inc.	087-18-23561	Banco Popular		1580		–	(a)
142.	Sears, Roebuck de Puerto Rico, Inc.	087-18-23561	Banco Popular		7665		410,899	(a)
143.	StarWest, LLC	087-18-23579	Bank of America, N.A.		9396		–	(a)
144.	Sears Roebuck Acceptance Corp.	087-18-23560	Bank of America, N.A.		N/A		–	(k)

Footnote(s):

(a)	The bank statement(s) are for the period from 11/3/18 through 11/30/18.

(b)	The bank statement(s) are for the period from 10/27/18 through 11/23/18.

(c)	The bank statement(s) date is 11/30/18.

(d)	Kmart Corporation (087-18-23549) Bank of America, N.A. account ending in x5450 is a new account opened November 2018.

(e)	The bank statement(s) are for the period from 11/1/18 through 11/30/18.

(f)	Kmart Corporation (087-18-23549) Bank of America, N.A. account ending in x7970 had no activity in over a year and a balance of zero dollars as of 12/1/18.

(g)	The bank statement(s) are for the period from 10/31/18 through 11/30/18.

(h)

Kmart Corporation (087-18-23549) Bank of America, N.A. account ending in x8978 and Sears, Roebuck and Co. (087-18-23537) Bank of America, N.A. account ending in x8965 were “dormant” bank accounts. There was no beginning date on the bank statement and the ending date on the bank statement was 11/30/18.

(i)	The bank statement(s) are for the period from 11/5/18 through 12/4/18.

(j)	Sears, Roebuck and Co. (087-18-23537) Bank of America, N.A. account ending in x8279 is a new account opened December 2018.

(k)	The Escrow DIP ABL Financing Account had a balance of zero as of 12/1/18 as the Company resumed paying on the ABL revolver.

(l)	The Escrow PBGC Account is an account held for the benefit of the PBGC and therefore not listed in the accounts above. Distributions were made from the account in November and as of 12/1/18, the balance in the Escrow PBGC Account is zero.


In re: SEARS HOLDINGS CORPORATION, *et al.*		Case No. 18-23538 (RDD)
(Jointly Administered)		Reporting Period: 11/4/18 - 12/1/18
MOR-1d		Federal Tax I.D. No. 20-1920798
(in US Dollars)
(Unaudited)

SCHEDULE OF RETAINED RESTRUCTURING PROFESSIONAL FEE DISBURSEMENTS & US TRUSTEE FEES


PROFESSIONAL	2018
PROFESSIONAL	OCT.		NOV.		CUMULATIVE
Estate Professionals
Lazard Freres & Co. LLC	$	—	$	1,480,000	$	1,480,000
Prime Clerk (a)		—		515,000		515,000
Total Estate Professionals		—		1,995,000		1,995,000
Total Retained Professionals		—		1,995,000		1,995,000
US Trustee Quarterly Fees		—		—		—

Total Professional and US Trustee Fees	$	—	$	1,995,000	$	1,995,000

Footnote(s):

(a)	Prime Clerk payment of $515,000 in November represents a pre-payment for the Notice of Commencement mailing.


In re: SEARS HOLDINGS CORPORATION, *et al.*		Case No. 18-23538 (RDD)
(Jointly Administered)		Reporting Period: 11/4/18 - 12/1/18
MOR-2		Federal Tax I.D. No. 20-1920798
(Unaudited)

STATEMENT OF OPERATIONS


Condensed & Consolidated Income Statement (a)	Month Ended
	December 1, 2018
	(in millions)
REVENUES
Merchandise sales and services	$	782
Services and other		142

Total revenues		924

COSTS AND EXPENSES
Cost of sales, buying and occupancy—merchandise sales		674
Cost of sales and occupancy—services and other		92

Total cost of sales, buying and occupancy		766
Selling and administrative		200
Depreciation and amortization		25
Impairment charges		—
Gain on sales of assets		(17	)

Total costs and expenses		974

Operating income (loss)		(50	)
Reorganization, net		(44	)
Interest expense		(29	)
Interest and investment income (loss)		2
Other loss		(8	)

Income (loss) before income taxes		(129	)
Income tax (expense) benefit		4

NET LOSS	$	(125	)

Footnote(s):

(a)	Numbers may not foot due to rounding


In re: SEARS HOLDINGS CORPORATION, *et al.*		Case No. 18-23538 (RDD)
(Jointly Administered)		Reporting Period: 11/4/18 - 12/1/18
MOR-3		Federal Tax I.D. No. 20-1920798
(Unaudited)

BALANCE SHEET


Condensed & Consolidated Balance Sheet (a)	As of
	December 1, 2018
	(in millions)
ASSETS
Current assets
Cash and Cash Equivalents	$	179
Restricted Cash		152
Accounts Receivable		350
Merchandise Inventories		2,081
Prepaid Expenses and Other Current Assets		458

Total Current Assets		3,220

Property and Equipment (net of accumulated depreciation and amortization)		1,010
Goodwill and Intangible Assets		696
Other Assets		384
Investment in Subsidiaries		26,549

TOTAL ASSETS	$	31,859

LIABILITIES
Current Liabilities
Short-Term Borrowings	$	623
Current Portion of Long-Term Debt and Capitalized Lease Obligations		436
Debtor-in-possession credit facility		187
Merchandise Payables		155
Intercompany Payables		27,147
Other Current Liabilities		1,553

Total Current Liabilities		30,101

Long-term Debt and Capitalized Lease Obligations		2,988
Pension and Postretirement Benefits		135
Deferred Gain on Sale-Leaseback		236
Sale-Leaseback Financing Obligation		371
Unearned Revenues		—
Other Long-term Liabilities		567
Long-term Deferred Tax Liabilities		401

Total Liabilities Not Subject to Compromise		34,799
Liabilities Subject to Compromise		4,327
Commitments and Contingencies		—
DEFICIT		—
Total Deficit		(7,267	)

TOTAL LIABILITIES AND DEFICIT	$	31,859

Footnote(s):

(a)	Numbers may not foot due to rounding


In re: SEARS HOLDINGS CORPORATION, *et al.*		Case No. 18-23538 (RDD)
Debtor		Reporting Period: 11/4/18 - 12/1/18
MOR-4a, 4b, 4c		Federal Tax I.D. No. 20-1920798
(in US Dollars)

MOR-4a: STATUS OF POST-PETITION TAXES

Subject: November Monthly Operating Report Attestation Regarding Post-petition Taxes

The Debtor, Sears Holdings Corporation., et al., hereby submit this attestation regarding post-petition taxes.

All post-petition taxes for the Debtors, which are not subject to dispute or reconciliation, are current. There are no material tax

disputes or reconciliations.

/s/ Rob A. Riecker

Robert A. Riecker

Member Office of the CEO and Chief Financial Officer

Sears Holdings Corporation., et. al.

MOR-4b: SUMMARY OF UNPAID POST-PETITION VENDOR PAYABLES


			NUMBER OF DAYS PAST DUE
DESCRIPTION	CURRENT		1-30 DAYS		31-60 DAYS		61-90 DAYS		91+ DAYS		TOTAL
Combined	$	155,223,732	$	—	$	—	$	—	$	—	$	155,223,732

MOR-4c: ACCOUNTS RECEIVABLE AGING

DESCRIPTION

CURRENT

1-30 DAYS

31-60 DAYS

61-90 DAYS

91+ DAYS

TOTAL

Accounts Receivable, Net (a)

350,018,310

Footnote(s):

(a) Accounts Receivable, Net aging for $350,018,310 has not been completed at time of filing this MOR, see Note 8h in the Global

Notes for further detail.


In re: SEARS HOLDINGS CORPORATION, *et al.*		Case No. 18-23538 (RDD)
Debtor		Reporting Period: 11/4/18 - 12/1/18
MOR-5		Federal Tax I.D. No. 20-1920798
(in US Dollars)

PAYMENTS TO INSIDERS (a)


INSIDER PAYMENT SUMMARY (FOR THIS PERIOD ONLY)
DESCRIPTION	AMOUNT
Regular Earnings, Adjust Regular Earnings, Cash Reimbursement Non-Tax, Commuter Pay, Expense Reimbursement, Relocation Payment, Restructuring Committee Retainer	$	1,091,331

Footnote(s):

(a)	The payments to insiders includes payments by the Debtors to individuals who were directors of the Board of Sears Holdings Corporation, employees who have been included in the Debtors’ Key Employee Incentive Plan, and the Debtors’ Chief Restructuring Officer during the reporting period.

Persons included as “insiders” have been included for informational purposes only. The Debtors do not concede or take any position with respect to: (a) such person’s influence over the control of the Debtors; (b) the management responsibilities or functions of such individual; (c) the decision-making or corporate authority of such individual; or (d) whether such individual could successfully argue that he or she is not an “insider” under applicable law, including, without limitation, the federal securities laws or with respect to any theories of liability or for any other purpose. Further, the inclusion of a party as an “insider” is not an acknowledgement or concession that such party is an “insider” under applicable bankruptcy law.


In re: SEARS HOLDINGS CORPORATION, *et al.*		Case No. 18-23538 (RDD)
Debtor		Reporting Period: 11/4/18 - 12/1/18
MOR-6		Federal Tax I.D. No. 20-1920798
(in US Dollars)

DIP FINANCING (TERM LOAN, ABL AND JUNIOR TERM LOAN) - PERIOD TO DATE


DESCRIPTION	BEGINNING BALANCE		ADDITIONAL DRAWS		PAYDOWNS			ENDING BALANCE
DIP ABL Facility (including the rollup of pre-petition ABL revolving and term loans and L/Cs) Note: shows draws and paydowns of DIP term loans only; the revolving advances are repaid with daily cash sweep, except for revolving advances repaid on the Effective Date	$	111,889,241	$	111,889,241	($	111,889,241	)	$	111,889,241
DIP Junior Term Loan Facility		—		75,000,000		—			75,000,000


In re: SEARS HOLDINGS CORPORATION, *et al.*		Case No. 18-23538 (RDD)
Debtor		Reporting Period: 11/4/18 - 12/1/18
		Federal Tax I.D. No. 20-1920798

MOR 7: DEBTOR QUESTIONNAIRE


Must be completed each month. If the answer to any of the questions is “Yes”, provide a detailed explanation of each item. Attach additional sheets if necessary.		Yes	No	Comments
1.	Have any assets been sold or transferred outside the normal course of business this reporting period?	X		Under a Note Purchase Agreement, Sears Roebuck Acceptance Corp., Sears Holdings Corporation, and certain other Debtors sold their rights, title and interests to certain medium-term intercompany notes (MTN) issued by SRAC to Cyrus Capital Partners, L.P. for $82.5MM on 11/20/18, which proceeds (net of expenses) were received on 11/28/18. (a)

2.	Have any funds been disbursed from any account other than a debtor in possession account this reporting period?		X

3.	Is the Debtor delinquent in the timely filing of any post-petition tax returns?		X

4.	Are workers compensation, general liability or other necessary insurance coverages expired or cancelled, or has the debtor received notice of expiration or cancellation of such policies?		X

5.	Is the Debtor delinquent in paying any insurance premium payment?		X

6.	Have any payments been made on pre-petition liabilities this reporting period?	X		As allowed under the First Day Orders

7.	Are any post petition receivables (accounts, notes or loans) due from related parties?	X		Sears Hometown and Outlet Stores owes SRC for the monthly intercompany settlement related to service contract sales, inventory and other support functions provided by the debtor.

8.	Are any post petition payroll taxes past due?		X

9.	Are any post petition State or Federal income taxes past due?		X

10.	Are any post petition real estate taxes past due?		X

11.	Are any other post petition taxes past due?		X

12.	Have any pre-petition taxes been paid during this reporting period?	X		The final portion of the sales tax collected between October 7, 2018 and October 15, 2018 was paid in November.

13.	Are any amounts owed to post petition creditors delinquent?		X

14.	Are any wage payments past due?		X

15.	Have any post petition loans been received by the Debtor from any party?	X		Received $112MM from BAML, Citi & Wells Fargo as a Debtor in Possession (DIP) Term Loan to SRAC.

16.	Is the Debtor delinquent in paying any U.S. Trustee fees?		X

17.	Is the Debtor delinquent with any court ordered payments to attorneys or other professionals?		X

18.	Have the owners or shareholders received any compensation outside of the normal course of business?		X

Footnote(s):

(a)	See Order Authorizing Debtors to Sell Medium Term Notes [ECF No. 826].

SEARS HOLDINGS CORP - FORM 8-K - EX-99.2 - January 28, 2019

Attached files

SEARS HOLDINGS CORP Reports