ý
|
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
|
For the fiscal year ended January 31, 2015
|
¨
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
|
For the Transition period from ____________ to ___________
|
Wisconsin
|
|
39-1630919
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
N56 W17000 Ridgewood Drive, Menomonee Falls, Wisconsin
|
|
53051
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
|
Name of each exchange on which registered
|
Common Stock, $.01 Par Value
|
|
New York Stock Exchange
|
Securities registered pursuant to Section 12(g) of the Act:
|
|
None
|
|
|
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Item 1.
|
||
Item 1A.
|
||
Item 1B.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
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Item 5.
|
||
Item 6.
|
||
Item 7.
|
||
Item 7A.
|
||
Item 8.
|
||
Item 9.
|
||
Item 9A.
|
||
Item 9B.
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||
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|
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Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
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||
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|
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Item 15.
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||
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||
|
||
|
F-1
|
Fiscal Year
|
Ended
|
|
Number of
Weeks
|
2014
|
January 31, 2015
|
|
52
|
2013
|
February 1, 2014
|
|
52
|
2012
|
February 2, 2013
|
|
53
|
•
|
Committee charters of our Board of Directors’ Audit Committee, Compensation Committee and Governance & Nominating Committee
|
•
|
Report to Shareholders on Social Responsibility
|
•
|
Corporate Governance Guidelines
|
•
|
Code of Ethics
|
•
|
Failure of our vendors to adhere to our Terms of Engagement and applicable laws.
|
|
Number of Stores
|
|
|
Number of Stores
|
||||||||||||||
|
2013
|
|
Net
Change
|
|
2014
|
|
|
2013
|
|
Net
Change
|
|
2014
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Mid-Atlantic Region:
|
|
|
|
|
|
|
South Central Region:
|
|
|
|
|
|
||||||
Delaware
|
5
|
|
|
—
|
|
|
5
|
|
|
Arkansas
|
8
|
|
|
—
|
|
|
8
|
|
Maryland
|
23
|
|
|
—
|
|
|
23
|
|
|
Kansas
|
12
|
|
|
—
|
|
|
12
|
|
Pennsylvania
|
50
|
|
|
—
|
|
|
50
|
|
|
Louisiana
|
6
|
|
|
2
|
|
|
8
|
|
Virginia
|
30
|
|
|
—
|
|
|
30
|
|
|
Missouri
|
26
|
|
|
—
|
|
|
26
|
|
West Virginia
|
7
|
|
|
—
|
|
|
7
|
|
|
Oklahoma
|
10
|
|
|
1
|
|
|
11
|
|
Total Mid-Atlantic
|
115
|
|
|
—
|
|
|
115
|
|
|
Texas
|
85
|
|
|
—
|
|
|
85
|
|
Midwest Region:
|
|
|
|
|
|
|
Total South Central
|
147
|
|
|
3
|
|
|
150
|
|
|||
Illinois
|
66
|
|
|
—
|
|
|
66
|
|
|
Southeast Region:
|
|
|
|
|
|
|||
Indiana
|
39
|
|
|
—
|
|
|
39
|
|
|
Alabama
|
14
|
|
|
—
|
|
|
14
|
|
Iowa
|
18
|
|
|
—
|
|
|
18
|
|
|
Florida
|
53
|
|
|
—
|
|
|
53
|
|
Michigan
|
45
|
|
|
—
|
|
|
45
|
|
|
Georgia
|
35
|
|
|
—
|
|
|
35
|
|
Minnesota
|
26
|
|
|
—
|
|
|
26
|
|
|
Kentucky
|
16
|
|
|
1
|
|
|
17
|
|
Nebraska
|
7
|
|
|
—
|
|
|
7
|
|
|
Mississippi
|
5
|
|
|
—
|
|
|
5
|
|
North Dakota
|
4
|
|
|
—
|
|
|
4
|
|
|
North Carolina
|
31
|
|
|
—
|
|
|
31
|
|
Ohio
|
58
|
|
|
—
|
|
|
58
|
|
|
South Carolina
|
15
|
|
|
1
|
|
|
16
|
|
South Dakota
|
3
|
|
|
—
|
|
|
3
|
|
|
Tennessee
|
20
|
|
|
—
|
|
|
20
|
|
Wisconsin
|
40
|
|
|
—
|
|
|
40
|
|
|
Total Southeast
|
189
|
|
|
2
|
|
|
191
|
|
Total Midwest
|
306
|
|
|
—
|
|
|
306
|
|
|
West Region:
|
|
|
|
|
|
|||
Northeast Region:
|
|
|
|
|
|
|
Alaska
|
1
|
|
|
—
|
|
|
1
|
|
|||
Connecticut
|
21
|
|
|
1
|
|
|
22
|
|
|
Arizona
|
26
|
|
|
—
|
|
|
26
|
|
Maine
|
5
|
|
|
—
|
|
|
5
|
|
|
California
|
128
|
|
|
(2
|
)
|
|
126
|
|
Massachusetts
|
25
|
|
|
—
|
|
|
25
|
|
|
Colorado
|
24
|
|
|
—
|
|
|
24
|
|
New Hampshire
|
11
|
|
|
—
|
|
|
11
|
|
|
Idaho
|
5
|
|
|
—
|
|
|
5
|
|
New Jersey
|
38
|
|
|
—
|
|
|
38
|
|
|
Montana
|
2
|
|
|
—
|
|
|
2
|
|
New York
|
51
|
|
|
(1
|
)
|
|
50
|
|
|
Nevada
|
12
|
|
|
—
|
|
|
12
|
|
Rhode Island
|
3
|
|
|
—
|
|
|
3
|
|
|
New Mexico
|
5
|
|
|
—
|
|
|
5
|
|
Vermont
|
1
|
|
|
—
|
|
|
1
|
|
|
Oregon
|
11
|
|
|
—
|
|
|
11
|
|
Total Northeast
|
155
|
|
|
—
|
|
|
155
|
|
|
Utah
|
12
|
|
|
—
|
|
|
12
|
|
|
|
|
|
|
|
|
Washington
|
18
|
|
|
1
|
|
|
19
|
|
|||
|
|
|
|
|
|
|
Wyoming
|
2
|
|
|
—
|
|
|
2
|
|
|||
|
|
|
|
|
|
|
Total West
|
246
|
|
|
(1
|
)
|
|
245
|
|
|||
|
|
|
|
|
|
|
Total Kohl’s
|
1,158
|
|
|
4
|
|
|
1,162
|
|
|
Number of Stores
by Store Type
|
|
|
Number of Stores
by Ownership
|
||||||||||||||
|
2013
|
|
Net
Change
|
|
2014
|
|
|
2013
|
|
Net
Change
|
|
2014
|
||||||
Prototype
|
993
|
|
|
(5
|
)
|
|
988
|
|
|
Owned
|
412
|
|
|
1
|
|
|
413
|
|
Small
|
165
|
|
|
9
|
|
|
174
|
|
|
Leased*
|
|
|
|
|
|
|||
|
1,158
|
|
|
4
|
|
|
1,162
|
|
|
Operating lease
|
246
|
|
|
4
|
|
|
250
|
|
|
|
|
|
|
|
|
On-balance sheet
|
500
|
|
|
(1
|
)
|
|
499
|
|
|||
|
Number of Stores
by Location
|
|
Total leased
|
746
|
|
|
3
|
|
|
749
|
|
|||||||
|
|
|
1,158
|
|
|
4
|
|
|
1,162
|
|
||||||||
|
2013
|
|
Net
Change
|
|
2014
|
|
* Includes locations where we lease the land and/or building
|
|||||||||||
Strip centers
|
777
|
|
|
3
|
|
|
780
|
|
|
|
|
|
|
|
|
|||
Community & regional malls
|
85
|
|
|
—
|
|
|
85
|
|
|
|
|
|
|
|
|
|||
Freestanding
|
296
|
|
|
1
|
|
|
297
|
|
|
|
|
|
|
|
|
|||
|
1,158
|
|
|
4
|
|
|
1,162
|
|
|
|
|
|
|
|
|
|
Year
Opened
|
|
Square
Footage
|
|
Findlay, Ohio
|
1994
|
|
780,000
|
|
Winchester, Virginia
|
1997
|
|
420,000
|
|
Blue Springs, Missouri
|
1999
|
|
540,000
|
|
Corsicana, Texas
|
2001
|
|
540,000
|
|
Monroe, Ohio*
|
2001
|
|
1,200,000
|
|
Mamakating, New York
|
2002
|
|
605,000
|
|
San Bernardino, California
|
2002
|
|
575,000
|
|
Macon, Georgia
|
2005
|
|
560,000
|
|
Patterson, California
|
2006
|
|
360,000
|
|
Ottawa, Illinois
|
2008
|
|
328,000
|
|
San Bernardino, California*
|
2010
|
|
970,000
|
|
Edgewood, Maryland*
|
2011
|
|
1,450,000
|
|
DeSoto, Texas*
|
2012
|
|
1,200,000
|
|
|
2014
|
|
2013
|
||||||||||||||
|
High
|
|
Low
|
|
Dividend
|
|
High
|
|
Low
|
|
Dividend
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fourth Quarter
|
$61.54
|
|
$54.95
|
|
$0.39
|
|
$58.47
|
|
$49.97
|
|
$0.35
|
||||||
Third Quarter
|
62.50
|
|
|
53.74
|
|
|
0.39
|
|
|
57.04
|
|
|
49.84
|
|
|
0.35
|
|
Second Quarter
|
55.89
|
|
|
51.00
|
|
|
0.39
|
|
|
54.16
|
|
|
47.00
|
|
|
0.35
|
|
First Quarter
|
57.89
|
|
|
49.09
|
|
|
0.39
|
|
|
49.32
|
|
|
45.21
|
|
|
0.35
|
|
Company / Index
|
Jan 30,
2010 |
|
Jan 29,
2011 |
|
Jan 28,
2012 |
|
Feb 2,
2013 |
|
Feb 1,
2014 |
|
Jan 31,
2015 |
||||||
Kohl’s Corporation
|
$100.00
|
|
$101.65
|
|
$94.58
|
|
$95.78
|
|
$108.30
|
|
$131.35
|
||||||
S&P 500 Index
|
100.00
|
|
|
121.26
|
|
|
127.72
|
|
|
150.20
|
|
|
180.70
|
|
|
206.41
|
|
Peer Group Index
|
100.00
|
|
|
118.35
|
|
|
140.64
|
|
|
169.67
|
|
|
187.33
|
|
|
239.18
|
|
Period
|
Total
Number
of Shares
Purchased
During
Period
|
|
Average
Price
Paid Per
Share
|
|
Total Number
of Shares
Purchased as
Part of
Publicly
Announced
Plans or
Programs
|
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
|
||||||
|
|
|
|
|
|
|
(Dollars In Millions)
|
||||||
November 2 – November 29, 2014
|
942,839
|
|
|
$
|
56.61
|
|
|
941,999
|
|
|
$
|
1,714
|
|
November 30, 2014 – January 3, 2015
|
713,532
|
|
|
58.19
|
|
|
712,237
|
|
|
1,673
|
|
||
January 4 – January 31, 2015
|
494,521
|
|
|
60.02
|
|
|
466,162
|
|
|
1,645
|
|
||
Total
|
2,150,892
|
|
|
$
|
57.92
|
|
|
2,120,398
|
|
|
$
|
1,645
|
|
|
2014
|
|
2013
|
|
2012 (d)
|
|
2011
|
|
2010
|
||||||||||
|
(Dollars in Millions, Except Per Share and Per Square Foot Data)
|
||||||||||||||||||
Statements of Income Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales
|
$
|
19,023
|
|
|
$
|
19,031
|
|
|
$
|
19,279
|
|
|
$
|
18,804
|
|
|
$
|
18,391
|
|
Cost of merchandise sold
|
12,098
|
|
|
12,087
|
|
|
12,289
|
|
|
11,625
|
|
|
11,359
|
|
|||||
Gross margin
|
6,925
|
|
|
6,944
|
|
|
6,990
|
|
|
7,179
|
|
|
7,032
|
|
|||||
Selling, general and administrative expenses
|
4,350
|
|
|
4,313
|
|
|
4,267
|
|
|
4,243
|
|
|
4,190
|
|
|||||
Depreciation and amortization
|
886
|
|
|
889
|
|
|
833
|
|
|
778
|
|
|
750
|
|
|||||
Operating income
|
1,689
|
|
|
1,742
|
|
|
1,890
|
|
|
2,158
|
|
|
2,092
|
|
|||||
Interest expense, net
|
340
|
|
|
338
|
|
|
329
|
|
|
299
|
|
|
304
|
|
|||||
Income before income taxes
|
1,349
|
|
|
1,404
|
|
|
1,561
|
|
|
1,859
|
|
|
1,788
|
|
|||||
Provision for income taxes
|
482
|
|
|
515
|
|
|
575
|
|
|
692
|
|
|
668
|
|
|||||
Net income
|
$
|
867
|
|
|
$
|
889
|
|
|
$
|
986
|
|
|
$
|
1,167
|
|
|
$
|
1,120
|
|
Basic earnings per share
|
$
|
4.28
|
|
|
$
|
4.08
|
|
|
$
|
4.19
|
|
|
$
|
4.33
|
|
|
$
|
3.69
|
|
Diluted earnings per share
|
$
|
4.24
|
|
|
$
|
4.05
|
|
|
$
|
4.17
|
|
|
$
|
4.30
|
|
|
$
|
3.66
|
|
Dividends per share
|
$
|
1.56
|
|
|
$
|
1.40
|
|
|
$
|
1.28
|
|
|
$
|
1.00
|
|
|
—
|
|
|
Operating Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales growth
|
—
|
%
|
|
(1.3
|
)%
|
|
2.5
|
%
|
|
2.2
|
%
|
|
7.1
|
%
|
|||||
Comparable sales growth (a)
|
(0.3
|
)%
|
|
(1.2
|
)%
|
|
0.3
|
%
|
|
0.5
|
%
|
|
4.4
|
%
|
|||||
Net sales per selling square foot (b)
|
$
|
226
|
|
|
$
|
227
|
|
|
$
|
231
|
|
|
$
|
232
|
|
|
$
|
231
|
|
As a percent of sales:
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross margin
|
36.4
|
%
|
|
36.5
|
%
|
|
36.3
|
%
|
|
38.2
|
%
|
|
38.2
|
%
|
|||||
Operating income
|
8.9
|
%
|
|
9.2
|
%
|
|
9.8
|
%
|
|
11.5
|
%
|
|
11.4
|
%
|
|||||
Return on average shareholders’ equity (c)
|
14.7
|
%
|
|
14.8
|
%
|
|
15.8
|
%
|
|
16.4
|
%
|
|
14.1
|
%
|
|||||
Total square feet of selling space (in thousands)
|
83,750
|
|
|
83,671
|
|
|
83,098
|
|
|
82,226
|
|
|
80,139
|
|
|||||
Number of stores (end of period)
|
1,162
|
|
|
1,158
|
|
|
1,146
|
|
|
1,127
|
|
|
1,089
|
|
|||||
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Working capital
|
$
|
2,839
|
|
|
$
|
2,556
|
|
|
$
|
2,184
|
|
|
$
|
2,222
|
|
|
$
|
2,888
|
|
Total assets
|
14,431
|
|
|
14,357
|
|
|
13,905
|
|
|
14,148
|
|
|
14,891
|
|
|||||
Long-term debt
|
2,793
|
|
|
2,792
|
|
|
2,492
|
|
|
2,141
|
|
|
1,894
|
|
|||||
Capital lease and financing obligations
|
1,968
|
|
|
2,069
|
|
|
2,061
|
|
|
2,103
|
|
|
2,104
|
|
|||||
Shareholders’ equity
|
5,991
|
|
|
5,978
|
|
|
6,048
|
|
|
6,508
|
|
|
7,850
|
|
|||||
Cash flow from operations
|
2,024
|
|
|
1,884
|
|
|
1,265
|
|
|
2,139
|
|
|
1,750
|
|
|||||
Capital expenditures
|
682
|
|
|
643
|
|
|
785
|
|
|
927
|
|
|
801
|
|
(a)
|
Comparable sales growth is based on sales for stores (including relocated or remodeled stores) which were open throughout both the full current and prior year periods and omni-channel sales. Fiscal 2013 comparable sales growth compares the 52 weeks ended February 1, 2014 to the 52 weeks ended January 26, 2013. Fiscal 2012 comparable sales growth compares the 52 weeks ended January 26, 2013 to the 52 weeks ended January 28, 2012.
|
(b)
|
Net sales per selling square foot includes on-line sales and stores open for the full current period. 2012 excludes the impact of the 53rd week.
|
(c)
|
Average shareholders’ equity is based on a 5-quarter average.
|
(d)
|
Fiscal 2012 was a 53-week year. During the 53rd week, total sales were $169 million; selling, general and administrative expenses were approximately $30 million; interest was approximately $2 million; net income was approximately $15 million and diluted earnings per share was approximately $0.06.
|
|
|
Total sales
|
Increase 1.8 - 2.8%
|
Comparable sales
|
Increase 1.5 - 2.5%
|
Gross margin as a percent of sales
|
Increase 0 - 20 bps
|
SG&A
|
Increase 1.5 - 2.5%
|
Depreciation
|
$940 million
|
Interest
|
$335 million
|
Effective tax rate
|
37%
|
Earnings per diluted share
|
$4.40 - $4.60
|
Capital expenditures
|
$800 million
|
Share repurchases:
|
|
Total repurchases
|
$1 billion
|
Cost per share
|
$70.00
|
•
|
Stores increase on-line sales by providing customers opportunities to view, touch and/or try on physical merchandise before ordering on-line.
|
•
|
Kohl's Cash coupons and Yes2You rewards can be earned and redeemed on-line or in store regardless of where they were earned.
|
•
|
Order on-line and pick-up in store is available in approximately 100 stores and is expected to be available in all stores by the second quarter of 2015.
|
•
|
On-line orders may be shipped from a dedicated E-Commerce fulfillment center, a store, a retail distribution center, direct ship vendors or any combination of the above.
|
|
2014
|
|
2013
|
|
2012
|
||||||
Net sales (In Millions)
|
$
|
19,023
|
|
|
$
|
19,031
|
|
|
$
|
19,279
|
|
Increase (decrease) in sales:
|
|
|
|
|
|
||||||
Total
|
—
|
%
|
|
(1.3
|
)%
|
|
2.5
|
%
|
|||
Comparable (a)
|
(0.3
|
)%
|
|
(1.2
|
)%
|
|
0.3
|
%
|
|||
Net sales per selling square foot (b)
|
$
|
226
|
|
|
$
|
227
|
|
|
$
|
231
|
|
|
2014
|
|
2013
|
||||||||||
|
$
|
|
%
|
|
$
|
|
%
|
||||||
|
(Dollars in Millions)
|
||||||||||||
Net sales - prior year
|
$
|
19,031
|
|
|
|
|
$
|
19,279
|
|
|
|
||
Comparable sales (a)
|
(54
|
)
|
|
(0.3
|
)%
|
|
(233
|
)
|
|
(1.2
|
)%
|
||
New stores and other revenues
|
46
|
|
|
—
|
|
|
154
|
|
|
—
|
|
||
Net change before 53rd week
|
(8
|
)
|
|
—
|
%
|
|
(79
|
)
|
|
(0.4
|
)%
|
||
Net sales in 53rd week
|
—
|
|
|
—
|
|
|
(169
|
)
|
|
—
|
|
||
Total decrease in net sales
|
(8
|
)
|
|
—
|
%
|
|
(248
|
)
|
|
(1.3
|
)%
|
||
Net sales - current year
|
$
|
19,023
|
|
|
|
|
$
|
19,031
|
|
|
|
|
2014
|
|
2013
|
||
Selling price per unit
|
2.8
|
%
|
|
(0.4
|
)%
|
Units per transaction
|
(0.8
|
)
|
|
1.5
|
|
Average transaction value
|
2.0
|
|
|
1.1
|
|
Number of transactions
|
(2.3
|
)
|
|
(2.3
|
)
|
Comparable sales
|
(0.3
|
)%
|
|
(1.2
|
)%
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(Dollars in Millions)
|
||||||||||
Gross margin
|
$
|
6,925
|
|
|
$
|
6,944
|
|
|
$
|
6,990
|
|
As a percent of net sales
|
36.4
|
%
|
|
36.5
|
%
|
|
36.3
|
%
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(Dollars in Millions)
|
||||||||||
Selling, general, and administrative expenses
|
$
|
4,350
|
|
|
$
|
4,313
|
|
|
$
|
4,267
|
|
As a percent of net sales
|
22.9
|
%
|
|
22.7
|
%
|
|
22.1
|
%
|
|
2014
|
|
2013
|
||||
|
(Dollars In Millions)
|
||||||
Corporate expenses
|
$
|
34
|
|
|
$
|
32
|
|
Marketing costs, excluding credit card operations
|
21
|
|
|
9
|
|
||
Distribution costs
|
10
|
|
|
27
|
|
||
Store expenses
|
(4
|
)
|
|
27
|
|
||
Net revenues from credit card operations
|
(24
|
)
|
|
(19
|
)
|
||
SG&A in 53rd week
|
—
|
|
|
(30
|
)
|
||
Total increase
|
$
|
37
|
|
|
$
|
46
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(Dollars In Millions)
|
||||||||||
Depreciation and amortization
|
$
|
886
|
|
|
$
|
889
|
|
|
$
|
833
|
|
Interest expense, net
|
340
|
|
|
338
|
|
|
329
|
|
|||
Provision for income taxes
|
482
|
|
|
515
|
|
|
575
|
|
|||
Effective tax rate
|
35.7
|
%
|
|
36.7
|
%
|
|
36.8
|
%
|
Cash Requirements
|
|
Source of Funds
|
• Operational needs, including salaries,
rent, taxes and other costs of running
our business
• Capital expenditures
• Inventory (seasonal and new store)
• Share repurchases
• Dividend payments
|
|
• Cash flow from operations
• Short-term trade credit, in the form of extended payment terms
• Line of credit under our revolving credit facility
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(In Millions)
|
||||||||||
Cash and cash equivalents
|
$
|
1,407
|
|
|
$
|
971
|
|
|
$
|
537
|
|
|
|
|
|
|
|
||||||
Net cash provided by (used in):
|
|
|
|
|
|
||||||
Operating activities
|
$
|
2,024
|
|
|
$
|
1,884
|
|
|
$
|
1,265
|
|
Investing activities
|
(593
|
)
|
|
(623
|
)
|
|
(660
|
)
|
|||
Financing activities
|
(995
|
)
|
|
(827
|
)
|
|
(1,273
|
)
|
|||
|
|
|
|
|
|
||||||
Free Cash Flow (a)
|
$
|
1,234
|
|
|
$
|
1,127
|
|
|
$
|
381
|
|
|
2015
Estimate
|
|
2014
|
|
2013
|
|
2012
|
||||
Computer hardware and software
|
41
|
%
|
|
43
|
%
|
|
45
|
%
|
|
33
|
%
|
Store refresh
|
41
|
|
|
34
|
|
|
29
|
|
|
29
|
|
New stores
|
4
|
|
|
7
|
|
|
9
|
|
|
19
|
|
Distribution centers
|
8
|
|
|
3
|
|
|
7
|
|
|
15
|
|
Corporate expansion including credit
|
4
|
|
|
12
|
|
|
9
|
|
|
3
|
|
Other
|
2
|
|
|
1
|
|
|
1
|
|
|
1
|
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Moody’s
|
|
Standard & Poor’s
|
|
Fitch
|
Long-term debt
|
Baa1
|
|
BBB
|
|
BBB+
|
|
First Quarter
|
|
Second Quarter
|
|
Third Quarter
|
|
Fourth Quarter
|
Declaration date
|
February 26
|
|
May 14
|
|
August 12
|
|
November 12
|
Record date
|
March 12
|
|
June 11
|
|
September 10
|
|
December 10
|
Payment date
|
March 26
|
|
June 25
|
|
September 24
|
|
December 24
|
Amount per common share
|
$0.39
|
|
$0.39
|
|
$0.39
|
|
$0.39
|
|
2014
|
|
2013
|
|
2012
|
||||||
Liquidity Ratios:
|
(Dollars in Millions)
|
||||||||||
Working capital
|
$
|
2,839
|
|
|
$
|
2,556
|
|
|
$
|
2,184
|
|
Current ratio
|
1.99
|
|
|
1.93
|
|
|
1.86
|
|
|||
Free Cash Flow (a)
|
$
|
1,234
|
|
|
$
|
1,127
|
|
|
$
|
381
|
|
Return on Investment Ratios:
|
|
|
|
|
|
||||||
Ratio of earnings to fixed charges
|
3.6
|
|
|
3.7
|
|
|
4.1
|
|
|||
Return on Assets
|
6.0
|
%
|
|
6.2
|
%
|
|
6.9
|
%
|
|||
Return on Gross Investment (a)
|
15.1
|
%
|
|
15.5
|
%
|
|
16.8
|
%
|
|||
Capital Structure Ratios:
|
|
|
|
|
|
||||||
Debt/capitalization
|
44.3
|
%
|
|
44.8
|
%
|
|
42.9
|
%
|
|||
Adjusted Debt to EBITDAR (a)
|
2.45
|
|
|
2.42
|
|
|
2.23
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(Dollars in Millions)
|
||||||||||
Net cash provided by operating activities
|
$
|
2,024
|
|
|
$
|
1,884
|
|
|
$
|
1,265
|
|
Acquisition of property & equipment
|
(682
|
)
|
|
(643
|
)
|
|
(785
|
)
|
|||
Capital lease & financing obligation payments
|
(114
|
)
|
|
(115
|
)
|
|
(111
|
)
|
|||
Proceeds from financing obligations
|
6
|
|
|
1
|
|
|
12
|
|
|||
Free cash flow
|
$
|
1,234
|
|
|
$
|
1,127
|
|
|
$
|
381
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(Dollars in Millions)
|
||||||||||
Operating income
|
$
|
1,689
|
|
|
$
|
1,742
|
|
|
$
|
1,890
|
|
Depreciation and amortization
|
886
|
|
|
889
|
|
|
833
|
|
|||
Rent expense
|
277
|
|
|
270
|
|
|
265
|
|
|||
EBITDAR
|
$
|
2,852
|
|
|
$
|
2,901
|
|
|
$
|
2,988
|
|
Average: (a)
|
|
|
|
|
|
||||||
Total assets
|
$
|
14,406
|
|
|
$
|
14,335
|
|
|
$
|
14,266
|
|
Cash equivalents and long-term investments (b)
|
(477
|
)
|
|
(321
|
)
|
|
(677
|
)
|
|||
Deferred tax and other assets
|
(140
|
)
|
|
(149
|
)
|
|
(126
|
)
|
|||
Accumulated depreciation and amortization
|
5,743
|
|
|
5,457
|
|
|
4,943
|
|
|||
Accounts payable
|
(1,624
|
)
|
|
(1,556
|
)
|
|
(1,622
|
)
|
|||
Accrued liabilities
|
(1,119
|
)
|
|
(1,082
|
)
|
|
(1,079
|
)
|
|||
Other long-term liabilities
|
(563
|
)
|
|
(538
|
)
|
|
(478
|
)
|
|||
Capitalized rent (c)
|
2,667
|
|
|
2,625
|
|
|
2,573
|
|
|||
Gross Investment (“AGI”)
|
$
|
18,893
|
|
|
$
|
18,771
|
|
|
$
|
17,800
|
|
Return on Assets (“ROA”)
(d)
|
6.0
|
%
|
|
6.2
|
%
|
|
6.9
|
%
|
|||
Return on Gross Investment (“ROI”)
(e)
|
15.1
|
%
|
|
15.5
|
%
|
|
16.8
|
%
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(Dollars in Millions)
|
||||||||||
Total Debt (net of discount)
|
$
|
4,761
|
|
|
$
|
4,861
|
|
|
$
|
4,553
|
|
Rent x 8
|
2,216
|
|
|
2,160
|
|
|
2,120
|
|
|||
Adjusted Debt
|
$
|
6,977
|
|
|
$
|
7,021
|
|
|
$
|
6,673
|
|
Total Equity
|
$
|
5,991
|
|
|
$
|
5,978
|
|
|
$
|
6,048
|
|
EBITDAR per above
|
$
|
2,852
|
|
|
$
|
2,901
|
|
|
$
|
2,988
|
|
Debt/capitalization
(a)
|
44.3
|
%
|
|
44.8
|
%
|
|
42.9
|
%
|
|||
Adjusted Debt to EBITDAR
(b)
|
2.45
|
|
|
2.42
|
|
|
2.23
|
|
|
Maturing in:
|
||||||||||||||||||
|
Total
|
|
2015
|
|
2016
and
2017
|
|
2018
and
2019
|
|
2020
and
after
|
||||||||||
|
(Dollars In Millions)
|
||||||||||||||||||
Recorded contractual obligations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
|
$
|
2,800
|
|
|
$
|
—
|
|
|
$
|
650
|
|
|
$
|
—
|
|
|
$
|
2,150
|
|
Capital lease and financing obligations
|
1,510
|
|
|
99
|
|
|
217
|
|
|
190
|
|
|
1,004
|
|
|||||
|
4,310
|
|
|
99
|
|
|
867
|
|
|
190
|
|
|
3,154
|
|
|||||
Unrecorded contractual obligations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest payments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Long-term debt
|
1,617
|
|
|
149
|
|
|
298
|
|
|
216
|
|
|
954
|
|
|||||
Capital lease and financing obligations
|
2,681
|
|
|
180
|
|
|
336
|
|
|
303
|
|
|
1,862
|
|
|||||
Operating leases (a)
|
5,800
|
|
|
246
|
|
|
481
|
|
|
476
|
|
|
4,597
|
|
|||||
Purchase obligations (b)
|
4,366
|
|
|
4,366
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other (c)
|
699
|
|
|
289
|
|
|
271
|
|
|
110
|
|
|
29
|
|
|||||
|
15,163
|
|
|
5,230
|
|
|
1,386
|
|
|
1,105
|
|
|
7,442
|
|
|||||
Total
|
$
|
19,473
|
|
|
$
|
5,329
|
|
|
$
|
2,253
|
|
|
$
|
1,295
|
|
|
$
|
10,596
|
|
(a)
|
Our leases typically require that we pay real estate taxes, insurance and maintenance costs in addition to the minimum rental payments included in the table above. Such costs vary from period to period and totaled $175 million for both
2014
and
2013
and $165 million for 2012. The lease term includes cancelable option periods where failure to exercise such options would result in an economic penalty.
|
(b)
|
Purchase obligations consist mainly of purchase orders for merchandise. Amounts committed under open purchase orders for merchandise are cancelable without penalty prior to a date that precedes the vendors’ scheduled shipment date.
|
(c)
|
Other includes royalties, legally binding minimum lease and interest payments for stores opening in
2015
or later, as well as payments associated with technology and marketing agreements.
|
•
|
Expected lease term
—Our expected lease term includes both contractual lease periods and cancelable option periods where failure to exercise such options would result in an economic penalty. The expected lease term is used in determining whether the lease is accounted for as an operating lease or a capital lease. A lease is considered a capital lease if the lease term exceeds 75% of the leased asset’s useful life. The expected lease term is also used in determining the depreciable life of the asset or the straight-line rent recognition period. Increasing the expected lease term will increase the probability that a lease will be considered a capital lease and will generally result in higher rent expense for an operating lease and higher interest and depreciation expenses for a leased property recorded on our balance sheet.
|
•
|
Incremental borrowing rate
—We estimate our incremental borrowing rate using treasury rates for debt with maturities comparable to the expected lease term and our credit spread. The incremental borrowing rate is primarily used in determining whether the lease is accounted for as an operating lease or a capital lease. A lease is considered a capital lease if the net present value of the lease payments is greater than 90% of the fair market value of the property. Increasing the incremental borrowing rate decreases the net present value of the lease payments and reduces the probability that a lease will be considered a capital lease. For leases which are recorded on our balance sheet with a related capital lease or financing obligation, the incremental borrowing rate is also used in allocating our rental payments between interest expense and a reduction of the outstanding obligation.
|
•
|
Fair market value of leased asset
—The fair market value of leased retail property is generally estimated based on comparable market data as provided by third-party appraisers or consideration received from the landlord. Fair market value is used in determining whether the lease is accounted for as an operating lease or a capital lease. A lease is considered a capital lease if the net present value of the lease payments is greater than 90% of the fair market value of the property. Increasing the fair market value reduces the probability that a lease will be considered a capital lease. Fair market value is also used in determining the amount of property and related financing obligation to be recognized on our balance sheet for certain leased properties which are considered owned for accounting purposes.
|
|
|
|
Kevin Mansell
Chairman, President and Chief Executive
Officer,
Kohl’s Corporation
|
|
Frank V. Sica
(b)* (c)
Managing Partner,
Tailwind Capital
|
|
|
|
Peter Boneparth
(b) (c)
Former Senior Advisor,
Irving Place Capital Partners
Former President and Chief Executive Officer,
Jones Apparel Group
|
|
Peter M. Sommerhauser
Shareholder,
Godfrey & Kahn, S.C. Law Firm
|
|
|
|
Steven A. Burd
(b) (c)
Founder and Chief Executive Officer,
Burd Health LLC
Former Chairman, Chief Executive Officer and President,
Safeway Inc.
|
|
Stephanie A. Streeter
(a) (c)*
Chief Executive Officer
Libbey, Inc.
|
|
|
|
Dale E. Jones
(b) (c)
Chief Executive Officer and President,
Diversified Search
|
|
Nina G. Vaca
(a)(c)
Chairman, Chief Executive Officer,
Pinnacle Technical Resources, Inc.
|
|
|
|
John E. Schlifske
(a) (c)
Chairman and Chief Executive Officer,
Northwestern Mutual Life Insurance Company
|
|
Stephen E. Watson
(a)* (c)
Former President, Chief Executive Officer of Gander Mountain, L.L.C.
Former Chairman and Chief Executive Officer, Department Store Division of Dayton-Hudson Corporation
|
|
|
|
|
|
Kohl’s Corporation
|
|
|
|
|
By:
|
/
S
/ K
EVIN
M
ANSELL
|
|
|
Kevin Mansell
|
|
|
Chairman, Chief Executive Officer, President and Director
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
/S/ W
ESLEY S.
M
C
D
ONALD
|
|
|
Wesley S. McDonald
|
|
|
Senior Executive Vice President, Chief Financial Officer
|
|
|
(Principal Financial and Accounting Officer)
|
|
|
|
/
S
/ K
EVIN
M
ANSELL
Kevin Mansell
Chairman, President, Chief Executive Officer and Director (Principal Executive Officer)
|
|
|
|
|
|
/
S
/ P
ETER
B
ONEPARTH
Peter Boneparth
Director
|
|
/
S
/ P
ETER
M. S
OMMERHAUSER
Peter M. Sommerhauser
Director
|
|
|
|
/
S
/ S
TEVEN
A. B
URD
Steven A. Burd
Director
|
|
/
S
/ S
TEPHANIE
A. S
TREETER
Stephanie A. Streeter
Director
|
|
|
|
/
S
/ D
ALE
E. J
ONES
Dale E. Jones
Director
|
|
/
S
/ N
INA
G
.
V
ACA
Nina G. Vaca
Director
|
|
|
|
/
S
/ J
OHN
E. S
CHLIFSKE
John E. Schlifske
Director
|
|
/
S
/ S
TEPHEN
E. W
ATSON
Stephen E. Watson
Director
|
|
|
|
/
S
/ F
RANK
V. S
ICA
Frank V. Sica
Director
|
|
|
|
|
|
|
|
|
Exhibit
Number
|
|
Description
|
3.1
|
|
Amended and Restated Articles of Incorporation of the Company, incorporated herein by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on May 16, 2011.
|
|
|
|
3.2
|
|
Amended and Restated Bylaws of the Company, incorporated herein by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed on August 15, 2014.
|
|
|
|
4.1
|
|
Credit Agreement Amendment dated as of June 21, 2013 by and among the Company, the Lenders party thereto, Bank of America, N.A., as the Administrative Agent and as a Continuing Lender and as an Issuing Bank and a Swing Line Lender, U.S Bank National Association, as a Continuing Lender, an Issuing Bank, and a Swing Line Lender, and Wells Fargo Bank, National Association, as a Continuing Lender, an Issuing Bank, and a Swing Line Lender, incorporated herein by reference to Item 4.1 of the Company's Quarterly Report on Form 10-Q for the quarterly period ended August 3, 2013.
|
|
|
|
4.2
|
|
Certain other long-term debt is described in Note 2 of the Notes to Consolidated Financial Statements. The Company agrees to furnish to the Commission, upon request, copies of any instruments defining the rights of holders of any such long-term debt described in Note 2 and not filed herewith.
|
|
|
|
10.1(a)
|
|
Private Label Credit Card Program Agreement dated as of August 11, 2010 by and between Kohl’s Department Stores, Inc and Capital One, National Association, incorporated herein by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2010.
|
|
|
|
10.1(b)
|
|
Amendment to Private Label Credit Card Program Agreement dated as of May 13, 2014 by and between Kohl's Department Stores, Inc. and Capital One, National Association, incorporated herein by reference to Exhibit 10.2 of the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended May 3, 2014.
|
|
|
|
10.2
|
|
Amended and Restated Executive Deferred Compensation Plan, incorporated herein by reference to Exhibit 10.1 of the Company’s Annual Report on Form 10-K for the fiscal year ended February 1, 2003.*
|
|
|
|
10.3
|
|
Kohl’s Corporation 2005 Deferred Compensation Plan, as amended and restated effective January 1, 2005, incorporated herein by reference to Exhibit 10.4 of the Company’s Annual Report on Form 10-K for the fiscal year ended January 28, 2006.*
|
|
|
|
10.4
|
|
Summary of Executive Medical Plan, incorporated herein by reference to Exhibit 10.6 of the Company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2005.*
|
|
|
|
10.5
|
|
Summary of Executive Life and Accidental Death and Dismemberment Plans, incorporated herein by reference to Exhibit 10.7 of the Company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2005.*
|
|
|
|
10.6
|
|
Kohl’s Corporation Annual Incentive Plan, incorporated herein by reference to Annex B to the Proxy Statement on Schedule 14A filed on March 21, 2011 in connection with the Company’s 2011 Annual Meeting of Shareholders.*
|
|
|
|
10.7
|
|
1994 Long-Term Compensation Plan, incorporated herein by reference to Exhibit 10.15 of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended May 4, 1996.*
|
|
|
|
10.8
|
|
1997 Stock Option Plan for Outside Directors, incorporated herein by reference to Exhibit 4.4 of the Company’s registration statement on Form S-8 (File No. 333-26409), filed on May 2, 1997.*
|
|
|
|
10.9
|
|
Amended and Restated 2003 Long-Term Compensation Plan, incorporated herein by reference to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended August 2, 2008.*
|
|
|
|
Exhibit
Number
|
|
Description
|
10.10
|
|
Kohl’s Corporation 2010 Long Term Compensation Plan, incorporated herein by reference to Annex A to the Proxy Statement on Schedule 14A filed on March 26, 2010 in connection with the Company’s 2010 Annual Meeting.*
|
|
|
|
10.11
|
|
Form of Executive Performance Share Agreement pursuant to the Kohl’s Corporation 2010 Long Term Compensation Plan, incorporated herein by reference to Exhibit 99.1 of the Company’s Current Report on Form 8-K dated as of January 15, 2014.*
|
|
|
|
10.12
|
|
Form of Executive Stock Option Agreement pursuant to the Kohl's Corporation 2010 Long Term Compensation Plan, incorporated herein by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended May 1, 2010.*
|
|
|
|
10.13(a)
|
|
Form of Executive Restricted Stock Agreement pursuant to the Kohl’s Corporation 2010 Long Term Compensation Plan, incorporated herein by reference to Exhibit 10.2 of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended May 1, 2010.*
|
|
|
|
10.13(b)
|
|
Form of Executive Restricted Stock Agreement pursuant to the Kohl’s Corporation 2010 Long Term Compensation Plan, incorporated herein by reference to Exhibit 99.2 of the Company’s Current Report on Form 8-K filed on January 15, 2014.*
|
|
|
|
10.13(c)
|
|
Form of Executive Restricted Stock Agreement pursuant to the Kohl’s Corporation 2010 Long Term Compensation Plan (March 2014 grant), incorporated herein by reference to Exhibit 10.4 of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended May 3, 2014.*
|
|
|
|
10.14
|
|
Form of Outside Director Stock Option Agreement pursuant to the Kohl’s Corporation 2010 Long Term Compensation Plan, incorporated herein by reference to Exhibit 10.3 of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended May 1, 2010.*
|
|
|
|
10.15
|
|
Form of Outside Director Restricted Stock Agreement pursuant to the Kohl’s Corporation 2010 Long Term Compensation Plan, incorporated herein by reference to Exhibit 10.4 of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended May 1, 2010.*
|
|
|
|
10.16
|
|
Summary of Outside Director Compensation.*
|
|
|
|
10.17
|
|
Amended and Restated Employment Agreement between Kohl’s Corporation and Kohl’s Department Stores, Inc. and Kevin Mansell dated as of November 14, 2014, incorporated herein by reference to Exhibit 99.1 of the Company’s Current Report on Form 8-K filed on November 14, 2014.*
|
|
|
|
10.18(a)
|
|
Amended and Restated Employment Agreement between Kohl’s Corporation and Kohl’s Department Stores, Inc. and Donald Brennan dated as of April 1, 2012, incorporated herein by reference to Exhibit 10.18 of the Company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2013.*
|
|
|
|
10.18(b)
|
|
Agreement dated as of March 24, 2014 by and between Donald A. Brennan and Kohl's Department Stores Inc. incorporated herein by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended May 3, 2014.*
|
|
|
|
10.19
|
|
Employment Agreement dated as of May 20, 2014 by and between Kohl's Corporation and Kohl's Department Stores, Inc. and Michelle Gass, incorporated by reference to Exhibit 10.19 of the Company's Annual Report on Form 10-K for the fiscal year ended February 1, 2014.*
|
|
|
|
10.20
|
|
Amended and Restated Employment Agreement between Kohl’s Corporation and Kohl’s Department Stores, Inc.and Wesley S. McDonald dated as of April 1, 2012, incorporated herein by reference to Exhibit 10.21 of the Company’s Annual Report on Form 10-K for the fiscal year ended February 2, 2013.*
|
|
|
|
Page
|
Consolidated Financial Statements
|
|
|
|
F-2
|
|
|
|
F-3
|
|
|
|
F-4
|
|
|
|
F-4
|
|
|
|
F-5
|
|
|
|
F-6
|
|
|
|
F-7
|
|
January 31,
2015 |
|
February 1,
2014 |
||||
Assets
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,407
|
|
|
$
|
971
|
|
Merchandise inventories
|
3,814
|
|
|
3,874
|
|
||
Deferred income taxes
|
116
|
|
|
142
|
|
||
Other
|
361
|
|
|
327
|
|
||
Total current assets
|
5,698
|
|
|
5,314
|
|
||
Property and equipment, net
|
8,515
|
|
|
8,745
|
|
||
Other assets
|
218
|
|
|
298
|
|
||
Total assets
|
$
|
14,431
|
|
|
$
|
14,357
|
|
|
|
|
|
||||
Liabilities and Shareholders’ Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
1,511
|
|
|
$
|
1,365
|
|
Accrued liabilities
|
1,160
|
|
|
1,138
|
|
||
Income taxes payable
|
78
|
|
|
116
|
|
||
Current portion of capital lease and financing obligations
|
110
|
|
|
139
|
|
||
Total current liabilities
|
2,859
|
|
|
2,758
|
|
||
Long-term debt
|
2,793
|
|
|
2,792
|
|
||
Capital lease and financing obligations
|
1,858
|
|
|
1,930
|
|
||
Deferred income taxes
|
368
|
|
|
339
|
|
||
Other long-term liabilities
|
562
|
|
|
560
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Common stock - 367 and 364 million shares issued
|
4
|
|
|
4
|
|
||
Paid-in capital
|
2,743
|
|
|
2,598
|
|
||
Treasury stock, at cost, 166 and 153 million shares
|
(8,744
|
)
|
|
(8,052
|
)
|
||
Accumulated other comprehensive loss
|
(20
|
)
|
|
(34
|
)
|
||
Retained earnings
|
12,008
|
|
|
11,462
|
|
||
Total shareholders’ equity
|
5,991
|
|
|
5,978
|
|
||
Total liabilities and shareholders’ equity
|
$
|
14,431
|
|
|
$
|
14,357
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
Net sales
|
$
|
19,023
|
|
|
$
|
19,031
|
|
|
$
|
19,279
|
|
Cost of merchandise sold
|
12,098
|
|
|
12,087
|
|
|
12,289
|
|
|||
Gross margin
|
6,925
|
|
|
6,944
|
|
|
6,990
|
|
|||
Operating expenses:
|
|
|
|
|
|
||||||
Selling, general and administrative
|
4,350
|
|
|
4,313
|
|
|
4,267
|
|
|||
Depreciation and amortization
|
886
|
|
|
889
|
|
|
833
|
|
|||
Operating income
|
1,689
|
|
|
1,742
|
|
|
1,890
|
|
|||
Interest expense, net
|
340
|
|
|
338
|
|
|
329
|
|
|||
Income before income taxes
|
1,349
|
|
|
1,404
|
|
|
1,561
|
|
|||
Provision for income taxes
|
482
|
|
|
515
|
|
|
575
|
|
|||
Net income
|
$
|
867
|
|
|
$
|
889
|
|
|
$
|
986
|
|
Net income per share:
|
|
|
|
|
|
||||||
Basic
|
$
|
4.28
|
|
|
$
|
4.08
|
|
|
$
|
4.19
|
|
Diluted
|
$
|
4.24
|
|
|
$
|
4.05
|
|
|
$
|
4.17
|
|
|
|
|
|
|
|
||||||
Dividends declared and paid per share
|
$
|
1.56
|
|
|
$
|
1.40
|
|
|
$
|
1.28
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
Net income
|
$
|
867
|
|
|
$
|
889
|
|
|
$
|
986
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
||||||
Unrealized gains on investments
|
11
|
|
|
8
|
|
|
5
|
|
|||
Reclassification adjustment for interest expense on interest rate
derivatives included in net income
|
3
|
|
|
3
|
|
|
3
|
|
|||
Other comprehensive income
|
14
|
|
|
11
|
|
|
8
|
|
|||
Comprehensive income
|
$
|
881
|
|
|
$
|
900
|
|
|
$
|
994
|
|
|
Common Stock
|
|
Paid-In
|
|
Treasury Stock
|
|
Accumulated
Other
Comprehensive
|
|
Retained
|
|
|
||||||||||||||||||||
|
Shares
|
|
Amount
|
|
Capital
|
Shares
|
|
Amount
|
|
Loss
|
|
Earnings
|
|
Total
|
|||||||||||||||||
Balance at January 28, 2012
|
358
|
|
|
$
|
4
|
|
|
$
|
2,339
|
|
|
(111
|
)
|
|
$
|
(5,977
|
)
|
|
|
$
|
(53
|
)
|
|
|
$
|
10,195
|
|
|
$
|
6,508
|
|
Comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
8
|
|
|
|
986
|
|
|
994
|
|
||||||
Stock options and awards, net of tax
|
2
|
|
|
—
|
|
|
115
|
|
|
—
|
|
|
(9
|
)
|
|
|
—
|
|
|
|
—
|
|
|
106
|
|
||||||
Dividends paid ($1.28 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
|
—
|
|
|
|
(303
|
)
|
|
(300
|
)
|
||||||
Treasury stock purchases
|
—
|
|
|
—
|
|
|
—
|
|
|
(27
|
)
|
|
(1,260
|
)
|
|
|
—
|
|
|
|
—
|
|
|
(1,260
|
)
|
||||||
Balance at February 2, 2013
|
360
|
|
|
4
|
|
|
2,454
|
|
|
(138
|
)
|
|
(7,243
|
)
|
|
|
(45
|
)
|
|
|
10,878
|
|
|
6,048
|
|
||||||
Comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
11
|
|
|
|
889
|
|
|
900
|
|
||||||
Stock options and awards, net of tax
|
4
|
|
|
—
|
|
|
144
|
|
|
—
|
|
|
(13
|
)
|
|
|
—
|
|
|
|
—
|
|
|
131
|
|
||||||
Dividends paid ($1.40 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
|
|
—
|
|
|
|
(305
|
)
|
|
(302
|
)
|
||||||
Treasury stock purchases
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
(799
|
)
|
|
|
—
|
|
|
|
—
|
|
|
(799
|
)
|
||||||
Balance at February 1, 2014
|
364
|
|
|
4
|
|
|
2,598
|
|
|
(153
|
)
|
|
(8,052
|
)
|
|
|
(34
|
)
|
|
|
11,462
|
|
|
5,978
|
|
||||||
Comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
14
|
|
|
|
867
|
|
|
881
|
|
||||||
Stock options and awards, net of tax
|
3
|
|
|
—
|
|
|
145
|
|
|
—
|
|
|
(19
|
)
|
|
|
—
|
|
|
|
—
|
|
|
126
|
|
||||||
Dividends paid ($1.56 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
|
—
|
|
|
|
(321
|
)
|
|
(317
|
)
|
||||||
Treasury stock purchases
|
—
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
(677
|
)
|
|
|
—
|
|
|
|
—
|
|
|
(677
|
)
|
||||||
Balance at January 31, 2015
|
367
|
|
|
$
|
4
|
|
|
$
|
2,743
|
|
|
(166
|
)
|
|
$
|
(8,744
|
)
|
|
|
$
|
(20
|
)
|
|
|
$
|
12,008
|
|
|
$
|
5,991
|
|
|
|
|
|
|
|
||||||
|
2014
|
|
2013
|
|
2012
|
||||||
Operating activities
|
|
|
|
|
|
||||||
Net income
|
$
|
867
|
|
|
$
|
889
|
|
|
$
|
986
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
886
|
|
|
889
|
|
|
833
|
|
|||
Share-based compensation
|
48
|
|
|
55
|
|
|
50
|
|
|||
Excess tax benefits from share-based compensation
|
(3
|
)
|
|
(3
|
)
|
|
(4
|
)
|
|||
Deferred income taxes
|
46
|
|
|
(11
|
)
|
|
(79
|
)
|
|||
Other non-cash expenses, net
|
31
|
|
|
43
|
|
|
29
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Merchandise inventories
|
68
|
|
|
(116
|
)
|
|
(523
|
)
|
|||
Other current and long-term assets
|
(33
|
)
|
|
(19
|
)
|
|
(37
|
)
|
|||
Accounts payable
|
146
|
|
|
58
|
|
|
74
|
|
|||
Accrued and other long-term liabilities
|
33
|
|
|
149
|
|
|
(60
|
)
|
|||
Income taxes
|
(65
|
)
|
|
(50
|
)
|
|
(4
|
)
|
|||
Net cash provided by operating activities
|
2,024
|
|
|
1,884
|
|
|
1,265
|
|
|||
Investing activities
|
|
|
|
|
|
||||||
Acquisition of property and equipment
|
(682
|
)
|
|
(643
|
)
|
|
(785
|
)
|
|||
Sales of investments in auction rate securities
|
82
|
|
|
1
|
|
|
109
|
|
|||
Other
|
7
|
|
|
19
|
|
|
16
|
|
|||
Net cash used in investing activities
|
(593
|
)
|
|
(623
|
)
|
|
(660
|
)
|
|||
Financing activities
|
|
|
|
|
|
||||||
Treasury stock purchases
|
(677
|
)
|
|
(799
|
)
|
|
(1,284
|
)
|
|||
Shares withheld for taxes on vested restricted shares
|
(19
|
)
|
|
(13
|
)
|
|
(9
|
)
|
|||
Dividends paid
|
(317
|
)
|
|
(302
|
)
|
|
(300
|
)
|
|||
Proceeds from issuance of debt, net of deferred financing costs
|
—
|
|
|
296
|
|
|
347
|
|
|||
Proceeds from financing obligations
|
6
|
|
|
1
|
|
|
12
|
|
|||
Capital lease and financing obligation payments
|
(114
|
)
|
|
(115
|
)
|
|
(111
|
)
|
|||
Proceeds from stock option exercises
|
123
|
|
|
102
|
|
|
68
|
|
|||
Excess tax benefits from share-based compensation
|
3
|
|
|
3
|
|
|
4
|
|
|||
Net cash used in financing activities
|
(995
|
)
|
|
(827
|
)
|
|
(1,273
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
436
|
|
|
434
|
|
|
(668
|
)
|
|||
Cash and cash equivalents at beginning of period
|
971
|
|
|
537
|
|
|
1,205
|
|
|||
Cash and cash equivalents at end of period
|
$
|
1,407
|
|
|
$
|
971
|
|
|
$
|
537
|
|
Supplemental information:
|
|
|
|
|
|
||||||
Interest paid, net of capitalized interest
|
$
|
329
|
|
|
$
|
326
|
|
|
$
|
318
|
|
Income taxes paid
|
502
|
|
|
561
|
|
|
654
|
|
|||
Non-Cash Investing and Financing Activities
|
|
|
|
|
|
||||||
Property and equipment acquired through capital lease and financing obligations
|
$
|
41
|
|
|
$
|
121
|
|
|
$
|
63
|
|
Fiscal year
|
Ended
|
|
Number of
Weeks
|
2014
|
January 31, 2015
|
|
52
|
2013
|
February 1, 2014
|
|
52
|
2012
|
February 2, 2013
|
|
53
|
|
Jan 31,
2015 |
|
Feb 1,
2014 |
||||
|
(Dollars In Millions)
|
||||||
Land
|
$
|
1,103
|
|
|
$
|
1,095
|
|
Buildings and improvements:
|
|
|
|
||||
Owned
|
7,844
|
|
|
7,713
|
|
||
Leased
|
1,848
|
|
|
1,845
|
|
||
Store fixtures and equipment
|
2,032
|
|
|
2,147
|
|
||
Computer hardware and software
|
1,368
|
|
|
1,033
|
|
||
Construction in progress
|
210
|
|
|
291
|
|
||
Total property and equipment, at cost
|
14,405
|
|
|
14,124
|
|
||
Less accumulated depreciation
|
(5,890
|
)
|
|
(5,379
|
)
|
||
Property and equipment, net
|
$
|
8,515
|
|
|
$
|
8,745
|
|
|
|
Buildings and improvements
|
5-40 years
|
Store fixtures and equipment
|
3-15 years
|
Computer hardware and software
|
3-8 years
|
|
Jan 31,
2015 |
|
Feb 1,
2014 |
||||
|
(Dollars In Millions)
|
||||||
Gift cards and merchandise return cards
|
$
|
307
|
|
|
$
|
296
|
|
Payroll and related fringe benefits
|
135
|
|
|
112
|
|
||
Sales, property and use taxes
|
185
|
|
|
166
|
|
||
Credit card liabilities
|
106
|
|
|
109
|
|
||
Other
|
427
|
|
|
455
|
|
||
Accrued liabilities
|
$
|
1,160
|
|
|
$
|
1,138
|
|
|
Unrealized
Gains
(Losses) on
Investments
|
|
Loss on
Interest
Rate
Derivatives
|
|
Accumulated
Other
Comprehensive
Loss
|
||||||
|
(Dollars In Millions)
|
||||||||||
Balance at February 2, 2013
|
$
|
(19
|
)
|
|
$
|
(26
|
)
|
|
$
|
(45
|
)
|
Other comprehensive income
|
8
|
|
|
3
|
|
|
11
|
|
|||
Balance at February 1, 2014
|
(11
|
)
|
|
(23
|
)
|
|
(34
|
)
|
|||
Other comprehensive income
|
11
|
|
|
3
|
|
|
14
|
|
|||
Balance at January 31, 2015
|
$
|
—
|
|
|
$
|
(20
|
)
|
|
$
|
(20
|
)
|
Level 1:
|
|
Financial instruments with unadjusted, quoted prices listed on active market exchanges.
|
|
|
|
Level 2:
|
|
Financial instruments lacking unadjusted, quoted prices from active market exchanges, including over-the-counter traded financial instruments. The prices for the financial instruments are determined using prices for recently traded financial instruments with similar underlying terms as well as directly or indirectly observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals.
|
|
|
|
Level 3:
|
|
Financial instruments that are not actively traded on a market exchange. This category includes situations where there is little, if any, market activity for the financial instrument. The prices are determined using significant unobservable inputs or valuation techniques.
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(Dollars In Millions)
|
||||||||||
Gross advertising costs
|
$
|
1,189
|
|
|
$
|
1,185
|
|
|
$
|
1,163
|
|
Vendor allowances
|
(165
|
)
|
|
(172
|
)
|
|
(170
|
)
|
|||
Net advertising costs
|
$
|
1,024
|
|
|
$
|
1,013
|
|
|
$
|
993
|
|
Net advertising costs as a percent of net sales
|
5.4
|
%
|
|
5.3
|
%
|
|
5.2
|
%
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(In Millions, Except per Share Data)
|
||||||||||
Numerator—net income
|
$
|
867
|
|
|
$
|
889
|
|
|
$
|
986
|
|
Denominator—weighted average shares
|
|
|
|
|
|
||||||
Basic
|
203
|
|
|
218
|
|
|
235
|
|
|||
Impact of dilutive employee stock options (a)
|
1
|
|
|
2
|
|
|
2
|
|
|||
Diluted
|
204
|
|
|
220
|
|
|
237
|
|
|||
Net income per share:
|
|
|
|
|
|
||||||
Basic
|
$
|
4.28
|
|
|
$
|
4.08
|
|
|
$
|
4.19
|
|
Diluted
|
$
|
4.24
|
|
|
$
|
4.05
|
|
|
$
|
4.17
|
|
(a)
|
Excludes
3 million
share-based awards for
2014
,
10 million
share-based awards for
2013
and
14 million
share-based awards for
2012
as the impact of such awards was antidilutive.
|
|
|
|
Outstanding
|
||||||||||
Maturity
|
Effective
Rate
|
|
Coupon Rate
|
|
January 31, 2015
|
|
February 1, 2014
|
||||||
|
|
|
|
|
(Dollars in Millions)
|
||||||||
2017
|
6.31
|
%
|
|
6.25
|
%
|
|
$
|
650
|
|
|
$
|
650
|
|
2021
|
4.81
|
%
|
|
4.00
|
%
|
|
650
|
|
|
650
|
|
||
2023
|
3.25
|
%
|
|
3.25
|
%
|
|
350
|
|
|
350
|
|
||
2023
|
4.78
|
%
|
|
4.75
|
%
|
|
300
|
|
|
300
|
|
||
2029
|
7.36
|
%
|
|
7.25
|
%
|
|
200
|
|
|
200
|
|
||
2033
|
6.05
|
%
|
|
6.00
|
%
|
|
300
|
|
|
300
|
|
||
2037
|
6.89
|
%
|
|
6.88
|
%
|
|
350
|
|
|
350
|
|
||
|
5.54
|
%
|
|
|
|
|
2,800
|
|
|
2,800
|
|
||
Unamortized debt discount
|
|
|
|
|
(7
|
)
|
|
(8
|
)
|
||||
Long-term debt
|
|
|
|
|
$
|
2,793
|
|
|
$
|
2,792
|
|
|
Capital
Lease
and
Financing Obligations
|
|
Operating
Leases
|
||||
|
(Dollars In Millions)
|
||||||
Fiscal year:
|
|
||||||
2015
|
$
|
279
|
|
|
$
|
246
|
|
2016
|
282
|
|
|
242
|
|
||
2017
|
271
|
|
|
239
|
|
||
2018
|
255
|
|
|
240
|
|
||
2019
|
238
|
|
|
236
|
|
||
Thereafter
|
2,866
|
|
|
4,597
|
|
||
|
4,191
|
|
|
$
|
5,800
|
|
|
Non-cash gain on future sale of property
|
458
|
|
|
|
|||
Amount representing interest
|
(2,681
|
)
|
|
|
|||
Present value of lease payments
|
$
|
1,968
|
|
|
|
|
Jan 31,
2015 |
|
Feb 1,
2014 |
||||
|
(Dollars In Millions)
|
||||||
Deferred tax liabilities:
|
|
|
|
||||
Property and equipment
|
$
|
1,385
|
|
|
$
|
1,416
|
|
Deferred tax assets:
|
|
|
|
||||
Merchandise inventories
|
24
|
|
|
24
|
|
||
Accrued and other liabilities, including stock options
|
182
|
|
|
223
|
|
||
Capital lease and financing obligations
|
773
|
|
|
813
|
|
||
Accrued step rent liability
|
100
|
|
|
94
|
|
||
Unrealized loss on investments
|
—
|
|
|
7
|
|
||
Unrealized loss on interest rate swap
|
13
|
|
|
15
|
|
||
Federal benefit on state tax reserves
|
41
|
|
|
43
|
|
||
|
1,133
|
|
|
1,219
|
|
||
Net deferred tax liability
|
$
|
252
|
|
|
$
|
197
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
|
(Dollars In Millions)
|
||||||||||
Current federal
|
$
|
400
|
|
|
$
|
473
|
|
|
$
|
592
|
|
Current state
|
36
|
|
|
45
|
|
|
60
|
|
|||
Deferred federal
|
48
|
|
|
6
|
|
|
(68
|
)
|
|||
Deferred state
|
(2
|
)
|
|
(9
|
)
|
|
(9
|
)
|
|||
|
$
|
482
|
|
|
$
|
515
|
|
|
$
|
575
|
|
|
2014
|
|
2013
|
|
2012
|
|||
Provision at statutory rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
State income taxes, net of federal tax benefit
|
1.3
|
|
|
2.2
|
|
|
2.2
|
|
Tax-exempt interest income
|
—
|
|
|
(0.2
|
)
|
|
(0.1
|
)
|
Other federal tax credits
|
(0.6
|
)
|
|
(0.3
|
)
|
|
(0.3
|
)
|
Provision for income taxes
|
35.7
|
%
|
|
36.7
|
%
|
|
36.8
|
%
|
|
2014
|
|
2013
|
||||
|
(Dollars In Millions)
|
||||||
Balance at beginning of year
|
$
|
125
|
|
|
$
|
108
|
|
Increases due to:
|
|
|
|
||||
Tax positions taken in prior years
|
—
|
|
|
6
|
|
||
Tax positions taken in current year
|
21
|
|
|
21
|
|
||
Decreases due to:
|
|
|
|
||||
Tax positions taken in prior years
|
(16
|
)
|
|
(4
|
)
|
||
Settlements with taxing authorities
|
(2
|
)
|
|
(3
|
)
|
||
Lapse of applicable statute of limitations
|
(5
|
)
|
|
(3
|
)
|
||
Balance at end of year
|
$
|
123
|
|
|
$
|
125
|
|
|
2014
|
|
2013
|
|
2012
|
Dividend yield
|
2.8%
|
|
2.9%
|
|
2.6%
|
Volatility
|
31.0%
|
|
32.7%
|
|
33.7%
|
Risk-free interest rate
|
1.7%
|
|
0.9%
|
|
1.0%
|
Expected life in years
|
5.5
|
|
5.5
|
|
5.5
|
Weighted average fair value at grant date
|
$12.23
|
|
$10.68
|
|
$11.79
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||
|
Shares
|
|
Weighted
Average
Exercise
Price
|
|
Shares
|
|
Weighted
Average
Exercise
Price
|
|
Shares
|
|
Weighted
Average
Exercise
Price
|
|||||||||
|
(Shares in Thousands)
|
|||||||||||||||||||
Balance at beginning of year
|
11,375
|
|
|
$
|
56.05
|
|
|
15,212
|
|
|
$
|
53.96
|
|
|
16,564
|
|
|
$
|
53.41
|
|
Granted
|
186
|
|
|
54.69
|
|
|
575
|
|
|
47.86
|
|
|
1,458
|
|
|
49.00
|
|
|||
Exercised
|
(2,647
|
)
|
|
46.87
|
|
|
(2,494
|
)
|
|
41.02
|
|
|
(1,718
|
)
|
|
40.01
|
|
|||
Forfeited/expired
|
(2,703
|
)
|
|
72.21
|
|
|
(1,918
|
)
|
|
56.59
|
|
|
(1,092
|
)
|
|
60.93
|
|
|||
Balance at end of year
|
6,211
|
|
|
$
|
52.95
|
|
|
11,375
|
|
|
$
|
56.05
|
|
|
15,212
|
|
|
$
|
53.96
|
|
|
Stock Options Outstanding
|
|
Stock Options Exercisable
|
||||||||||||||||||
Range of Exercise Prices
|
Shares
|
|
Weighted
Average
Remaining
Contractual
Life (in
years)
|
|
Weighted
Average
Exercise
Price
|
|
Shares
|
|
Weighted
Average
Remaining
Contractual
Life (in
years)
|
|
Weighted
Average
Exercise
Price
|
||||||||||
|
(Shares in Thousands)
|
||||||||||||||||||||
$ 29.09 – $ 46.00
|
823
|
|
|
1.9
|
|
|
$
|
42.27
|
|
|
701
|
|
|
1.3
|
|
|
$
|
41.84
|
|
||
$ 46.01 – $ 49.00
|
1,180
|
|
|
4.4
|
|
|
47.60
|
|
|
541
|
|
|
4.6
|
|
|
47.46
|
|
||||
$ 49.01 – $ 51.00
|
1,081
|
|
|
2.9
|
|
|
50.06
|
|
|
910
|
|
|
2.6
|
|
|
50.06
|
|
||||
$ 51.01 – $ 55.00
|
1,164
|
|
|
3.9
|
|
|
52.75
|
|
|
592
|
|
|
3.6
|
|
|
52.90
|
|
||||
$ 55.01 – $ 65.00
|
954
|
|
|
2.7
|
|
|
57.52
|
|
|
766
|
|
|
2.4
|
|
|
57.86
|
|
||||
$ 65.01 – $ 77.62
|
1,009
|
|
|
1.6
|
|
|
66.95
|
|
|
1,009
|
|
|
1.6
|
|
|
66.95
|
|
||||
|
6,211
|
|
|
3.0
|
|
|
$
|
52.95
|
|
|
4,519
|
|
|
2.5
|
|
|
$
|
53.94
|
|
||
Intrinsic value (in thousands)
|
$
|
49,754
|
|
|
|
|
|
|
$
|
33,849
|
|
|
|
|
|
|
2014
|
|
2013
|
|
2012
|
|||||||||||||||
|
Shares
|
|
Weighted
Average
Grant
Date Fair
Value
|
|
Shares
|
|
Weighted
Average
Grant
Date Fair
Value
|
|
Shares
|
|
Weighted
Average
Grant
Date Fair
Value
|
|||||||||
|
(Shares in Thousands)
|
|||||||||||||||||||
Balance at beginning of year
|
2,653
|
|
|
$
|
50.56
|
|
|
2,323
|
|
|
$
|
50.47
|
|
|
1,946
|
|
|
$
|
51.11
|
|
Granted
|
910
|
|
|
56.13
|
|
|
1,189
|
|
|
49.22
|
|
|
1,038
|
|
|
48.86
|
|
|||
Vested
|
(818
|
)
|
|
50.69
|
|
|
(706
|
)
|
|
48.00
|
|
|
(492
|
)
|
|
49.77
|
|
|||
Forfeited
|
(314
|
)
|
|
51.47
|
|
|
(153
|
)
|
|
50.48
|
|
|
(169
|
)
|
|
50.04
|
|
|||
Balance at end of year
|
2,431
|
|
|
$
|
52.29
|
|
|
2,653
|
|
|
$
|
50.56
|
|
|
2,323
|
|
|
$
|
50.47
|
|
|
2014
|
||||||||||||||
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
||||||||
|
(In Millions, Except per Share Data)
|
||||||||||||||
Net sales
|
$
|
4,070
|
|
|
$
|
4,242
|
|
|
$
|
4,374
|
|
|
$
|
6,337
|
|
Gross margin
|
$
|
1,496
|
|
|
$
|
1,654
|
|
|
$
|
1,628
|
|
|
$
|
2,147
|
|
Net income
|
$
|
125
|
|
|
$
|
232
|
|
|
$
|
142
|
|
|
$
|
369
|
|
Basic shares
|
206
|
|
|
204
|
|
|
202
|
|
|
199
|
|
||||
Basic net income per share
|
$
|
0.60
|
|
|
$
|
1.14
|
|
|
$
|
0.70
|
|
|
$
|
1.85
|
|
Diluted shares
|
208
|
|
|
205
|
|
|
203
|
|
|
201
|
|
||||
Diluted net income per share
|
$
|
0.60
|
|
|
$
|
1.13
|
|
|
$
|
0.70
|
|
|
$
|
1.83
|
|
|
2013
|
||||||||||||||
|
First
|
|
Second
|
|
Third
|
|
Fourth
|
||||||||
|
(In Millions, Except per Share Data)
|
||||||||||||||
Net sales
|
$
|
4,199
|
|
|
$
|
4,289
|
|
|
$
|
4,444
|
|
|
$
|
6,099
|
|
Gross margin
|
$
|
1,528
|
|
|
$
|
1,676
|
|
|
$
|
1,666
|
|
|
$
|
2,075
|
|
Net income
|
$
|
147
|
|
|
$
|
231
|
|
|
$
|
177
|
|
|
$
|
334
|
|
Basic shares
|
222
|
|
|
220
|
|
|
216
|
|
|
213
|
|
||||
Basic net income per share
|
$
|
0.66
|
|
|
$
|
1.05
|
|
|
$
|
0.82
|
|
|
$
|
1.57
|
|
Diluted shares
|
223
|
|
|
222
|
|
|
218
|
|
|
215
|
|
||||
Diluted net income per share
|
$
|
0.66
|
|
|
$
|
1.04
|
|
|
$
|
0.81
|
|
|
$
|
1.56
|
|
|
|
2014
|
|
2013
|
|
2012
|
||||||
Earnings
|
|
|
|
|
|
|||||||
|
Income before income taxes
|
$
|
1,349
|
|
|
$
|
1,404
|
|
|
$
|
1,561
|
|
|
Fixed charges
|
524
|
|
|
517
|
|
|
509
|
|
|||
|
Less: interest capitalized during period
|
(2
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|||
|
|
$
|
1,871
|
|
|
$
|
1,920
|
|
|
$
|
2,068
|
|
Fixed charges
|
|
|
|
|
|
|||||||
|
Interest (expensed or capitalized)
|
$
|
342
|
|
|
$
|
339
|
|
|
$
|
335
|
|
|
Portion of rent expense representative of interest
|
180
|
|
|
176
|
|
|
172
|
|
|||
|
Amortization of deferred financing fees
|
2
|
|
|
2
|
|
|
2
|
|
|||
|
|
$
|
524
|
|
|
$
|
517
|
|
|
$
|
509
|
|
Ratio of earnings to fixed charges
|
3.6
|
|
|
3.7
|
|
|
4.1
|
|
Subsidiaries
|
||
Name
|
|
State of Incorporation or Formation
|
Kohl's Department Stores, Inc.
|
|
Delaware
|
Kohl's Illinois, Inc.*
|
|
Nevada
|
Kohl's Indiana, Inc.*
|
|
Delaware
|
Kohl's Indiana, L.P.
|
|
Delaware
|
Kohl's Michigan, L.P.
|
|
Delaware
|
Kohl's Value Services, Inc.*
|
|
Virginia
|
Kohl's Cares, LLC*
|
|
Wisconsin
|
KWAL, LLC
|
|
Wisconsin
|
|
|
|
*These subsidiaries are wholly owned subsidiaries of Kohl's Department Stores, Inc.
|
1.
|
I have reviewed this Annual Report on Form 10-K of Kohl's Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Dated:
|
March 20, 2015
|
/s/ Kevin Mansell
|
|
|
Kevin Mansell
|
|
|
Chairman, Chief Executive Officer and President
|
|
|
(Principal Executive Officer)
|
1.
|
I have reviewed this Annual Report on Form 10-K of Kohl's Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Dated:
|
March 20, 2015
|
/s/ Wesley S. McDonald
|
|
|
Wesley S. McDonald
|
|
|
Senior Executive Vice President and Chief Financial Officer
|
|
|
(Principal Financial and Chief Accounting Officer)
|
1.
|
This Annual Report on Form 10-K of the Company for the annual period ended
January 31, 2015
(the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
That the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated:
|
March 20, 2015
|
/s/ Kevin Mansell
|
|
|
Kevin Mansell
|
|
|
Chairman, Chief Executive Officer and President
|
|
|
(Principal Executive Officer)
|
1.
|
This Annual Report on Form 10-K of the Company for the annual period ended
January 31, 2015
(the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
That the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated:
|
March 20, 2015
|
/s/ Wesley S. McDonald
|
|
|
Wesley S. McDonald
|
|
|
Senior Executive Vice President and Chief Financial Officer
|
|
|
(Principal Financial and Chief Accounting Officer)
|