Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 30, 2021 | Mar. 10, 2021 | Jul. 31, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 30, 2021 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol(s) | KSS | ||
Entity Registrant Name | KOHL’S CORP | ||
Entity Central Index Key | 0000885639 | ||
Current Fiscal Year End Date | --01-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity File Number | 1-11084 | ||
Entity Tax Identification Number | 39-1630919 | ||
Entity Address, Address Line One | N56 W17000 Ridgewood Drive | ||
Entity Address, City or Town | Menomonee Falls | ||
Entity Address, State or Province | WI | ||
Entity Address, Postal Zip Code | 53051 | ||
City Area Code | (262) | ||
Local Phone Number | 703-7000 | ||
Entity Interactive Data Current | Yes | ||
Title of each class | Common Stock, $.01 par value | ||
Name of each exchange on which registered | NYSE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | WI | ||
Entity Common Stock, Shares Outstanding | 157,716,240 | ||
Entity Public Float | $ 3 | ||
Documents Incorporated by Reference | Documents Incorporated by Reference: Portions of the Definitive Proxy Statement for the Registrant’s 2021 Annual Meeting of Shareholders are incorporated into Part III. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 | |
Current assets: | |||
Cash and cash equivalents | $ 2,271 | $ 723 | |
Merchandise inventories | 2,590 | 3,537 | |
Other | [1] | 974 | 389 |
Total current assets | 5,835 | 4,649 | |
Property and equipment, net | 6,689 | 7,352 | |
Operating leases | 2,398 | 2,391 | |
Other assets | [1] | 415 | 163 |
Total assets | 15,337 | 14,555 | |
Current liabilities: | |||
Accounts payable | 1,476 | 1,206 | |
Accrued liabilities | 1,270 | 1,281 | |
Current portion of: | |||
Finance lease and financing obligations | 115 | 124 | |
Operating leases | 161 | 158 | |
Total current liabilities | 3,022 | 2,769 | |
Long-term debt | 2,451 | 1,856 | |
Finance lease and financing obligations | 1,387 | 1,367 | |
Operating leases | 2,625 | 2,619 | |
Deferred income taxes | 302 | 260 | |
Other long-term liabilities | 354 | 234 | |
Shareholders’ equity: | |||
Common stock - 377 and 375 million shares issued | 4 | 4 | |
Paid-in capital | 3,319 | 3,272 | |
Treasury stock, at cost, 219 and 219 million shares | (11,595) | (11,571) | |
Retained earnings | 13,468 | 13,745 | |
Total shareholders’ equity | 5,196 | 5,450 | |
Total liabilities and shareholders’ equity | $ 15,337 | $ 14,555 | |
[1] | See Note 5 of Notes to Consolidated Financial Statements for further discussion on income taxes. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares shares in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Statement Of Financial Position [Abstract] | ||
Common stock, shares issued | 377 | 375 |
Treasury stock, shares | 219 | 219 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Total revenue | $ 15,955 | $ 19,974 | $ 20,229 |
Cost of merchandise sold | $ 10,360 | $ 12,140 | $ 12,199 |
Type of Cost, Good or Service [Extensible List] | kss:MerchandisesCostMember | kss:MerchandisesCostMember | kss:MerchandisesCostMember |
Operating expenses: | |||
Selling, general, and administrative | $ 5,021 | $ 5,705 | $ 5,601 |
Depreciation and amortization | 874 | 917 | 964 |
Impairments, store closing, and other costs | 89 | 113 | 104 |
(Gain) on sale of real estate | (127) | ||
Operating (loss) income | (262) | 1,099 | 1,361 |
Interest expense, net | 284 | 207 | 256 |
(Gain) loss on extinguishment of debt | (9) | 63 | |
(Loss) income before income taxes | (546) | 901 | 1,042 |
(Benefit) provision for income taxes | (383) | 210 | 241 |
Net (loss) income | $ (163) | $ 691 | $ 801 |
Net (loss) income per share: | |||
Basic | $ (1.06) | $ 4.39 | $ 4.88 |
Diluted | $ (1.06) | $ 4.37 | $ 4.84 |
Net Sales [Member] | |||
Total revenue | $ 15,031 | $ 18,885 | $ 19,167 |
Other Revenue [Member] | |||
Total revenue | $ 924 | $ 1,089 | $ 1,062 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock [Member] | Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | |||
Balance, beginning of period at Feb. 03, 2018 | $ 4 | $ 3,078 | $ (10,651) | $ (11) | [1] | $ 12,999 | ||||
Treasury stock purchases | (396) | |||||||||
Stock-based awards | 126 | (34) | ||||||||
Net (loss) income | $ 801 | 801 | ||||||||
Dividends paid | 5 | (405) | ||||||||
Other comprehensive income | [1] | $ 11 | ||||||||
Balance, end of period at Feb. 02, 2019 | $ 5,527 | $ 4 | 3,204 | $ (11,076) | 13,395 | $ 88 | [2] | |||
Shares, beginning of period at Feb. 03, 2018 | 373 | (205) | ||||||||
Stock-based awards | 1 | |||||||||
Treasury stock purchases | (6) | |||||||||
Shares, end of period at Feb. 02, 2019 | 163 | 374 | (211) | |||||||
Dividends paid per common share | $ 2.44 | |||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | |||||||||
Treasury stock purchases | $ (470) | |||||||||
Stock-based awards | 68 | (31) | ||||||||
Net (loss) income | $ 691 | 691 | ||||||||
Dividends paid | 6 | (429) | ||||||||
Balance, end of period at Feb. 01, 2020 | $ 5,450 | $ 4 | 3,272 | $ (11,571) | 13,745 | |||||
Stock-based awards | 1 | |||||||||
Treasury stock purchases | (8) | |||||||||
Shares, end of period at Feb. 01, 2020 | 156 | 375 | (219) | |||||||
Dividends paid per common share | $ 2.68 | |||||||||
Treasury stock purchases | $ (8) | |||||||||
Stock-based awards | 47 | (22) | ||||||||
Net (loss) income | $ (163) | (163) | ||||||||
Dividends paid | 6 | (114) | ||||||||
Balance, end of period at Jan. 30, 2021 | $ 5,196 | $ 4 | $ 3,319 | $ (11,595) | $ 13,468 | |||||
Stock-based awards | 2 | |||||||||
Shares, end of period at Jan. 30, 2021 | 158 | 377 | (219) | |||||||
Dividends paid per common share | $ 0.704 | |||||||||
[1] | Includes loss on interest rate derivative and reclassification adjustment for interest expense included in net income. Tax effects of interest rate derivatives were $1 million in 2018. | |||||||||
[2] | Adoption of new lease accounting standard in 2019. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) $ in Millions | 12 Months Ended |
Feb. 02, 2019USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Tax effect of interest rate derivatives | $ 1 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Operating activities | |||
Net (loss) income | $ (163) | $ 691 | $ 801 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 874 | 917 | 964 |
Share-based compensation | 40 | 56 | 87 |
Deferred income taxes | 18 | 51 | (31) |
Impairments, store closing, and other costs | 64 | 64 | 72 |
(Gain) on sale of real estate | (127) | ||
(Gain) loss on extinguishment of debt | (9) | 63 | |
Non-cash inventory costs | 187 | ||
Non-cash lease expense | 149 | 150 | |
Other non-cash expense | 22 | 11 | 18 |
Changes in operating assets and liabilities: | |||
Merchandise inventories | 768 | (51) | 79 |
Other current and long-term assets | (813) | 48 | 106 |
Accounts payable | 270 | 19 | (84) |
Accrued and other long-term liabilities | 199 | (134) | 32 |
Operating lease liabilities | (150) | (156) | |
Net cash provided by operating activities | 1,338 | 1,657 | 2,107 |
Investing activities | |||
Acquisition of property and equipment | (334) | (855) | (578) |
Proceeds from sale of real estate | 197 | ||
Other | 18 | 6 | |
Net cash used in investing activities | (137) | (837) | (572) |
Financing activities | |||
Proceeds from issuance of debt | 2,097 | ||
Deferred financing costs | (19) | ||
Treasury stock purchases | (8) | (470) | (396) |
Shares withheld for taxes on vested restricted shares | (22) | (31) | (34) |
Dividends paid | (108) | (423) | (400) |
Reduction of long-term borrowing | (1,497) | (6) | (943) |
Premium paid on redemption of debt | (46) | ||
Finance lease and financing obligation payments | (105) | (113) | (126) |
Proceeds from stock option exercises | 1 | 36 | |
Proceeds from financing obligations | 9 | 11 | |
Net cash provided by (used in) financing activities | 347 | (1,031) | (1,909) |
Net increase (decrease) in cash and cash equivalents | 1,548 | (211) | (374) |
Cash and cash equivalents at beginning of period | 723 | 934 | 1,308 |
Cash and cash equivalents at end of period | 2,271 | 723 | 934 |
Supplemental information | |||
Interest paid, net of capitalized interest | 254 | 193 | 282 |
Income taxes paid | 419 | 172 | 308 |
Property and equipment acquired through: | |||
Finance lease liabilities | 128 | 236 | 37 |
Operating lease liabilities | $ 165 | $ 106 | |
Financing obligations | $ 4 |
Business and Summary of Account
Business and Summary of Accounting Policies | 12 Months Ended |
Jan. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business and Summary of Accounting Policies | 1. Business and Summary of Accounting Policies Business As of January 30, 2021 www.Kohls.com Our authorized capital stock consists of 800 million shares of $0.01 par value common stock and 10 million shares of $0.01 par value preferred stock. Consolidation The Consolidated Financial Statements include the accounts of Kohl’s Corporation and its subsidiaries including Kohl’s, Inc., its primary operating company. All intercompany accounts and transactions have been eliminated. Accounting Period Our fiscal year ends on the Saturday closest to January 31 st Fiscal Year Ended Number of Weeks 2020 January 30, 2021 52 2019 February 1, 2020 52 2018 February 2, 2019 52 Use of Estimates The preparation of Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. We believe that our accounting estimates are appropriate and reflect the increased uncertainties surrounding the severity and duration of the COVID-19 pandemic. Actual results could differ from those estimates. Cash and Cash Equivalents In addition to money market investments, cash equivalents include commercial paper and certificates of deposit with original maturities of three months or less. We carry these investments at cost which approximates fair value. Also included in cash and cash equivalents are amounts due from credit card transactions with settlement terms of less than five days. Credit and debit card receivables included within cash were $77 million at January 30, 2021 and $87 million at February 1, 2020. Merchandise Inventories Merchandise inventories are valued at the lower of cost or market using the Retail Inventory Method (“RIM”). Under RIM, the valuation of inventory at cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the retail value of inventory. RIM is an averaging method that has been widely used in the retail industry due to its practicality. The use of RIM will result in inventory being valued at the lower of cost or market since permanent markdowns are taken as a reduction of the retail value of inventories. A reserve is recorded if the future estimated selling price is less than cost. Other Current Assets Other current assets consist of the following: (Dollars in Millions) January 30, 2021 February 1, 2020 Income taxes receivable $ 610 $ 15 Other Receivables 179 182 Prepaids 172 171 Other 13 21 Other current assets (a) $ 974 $ 389 (a) See Note 5 of Notes to Consolidated Financial Statements for further discussion on income taxes. Property and Equipment Property and equipment consist of the following: (Dollars in Millions) January 30, 2021 February 1, 2020 Land $ 1,091 $ 1,107 Buildings and improvements: Owned 7,783 7,869 Leased 963 867 Fixtures and equipment 1,267 1,426 Information technology 2,855 2,806 Construction in progress 313 279 Total property and equipment, at cost 14,272 14,354 Less accumulated depreciation and amortization (7,583 ) (7,002 ) Property and equipment, net $ 6,689 $ 7,352 Construction in progress includes property and equipment which is not ready for its intended use. Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Owned buildings and improvements include owned buildings on owned and leased land as well as leasehold improvements on leased properties. Leased property and improvements to leased property are amortized on a straight-line basis over the term of the lease or useful life of the asset, whichever is less. Leases are further described in Note 3 of the Consolidated Financial Statements. The annual provisions for depreciation and amortization generally use the following ranges of useful lives: Buildings and improvements 5-40 years Fixtures and equipment 3-15 years Information technology 3-8 years Long-Lived Assets All property and equipment and other long-lived assets are reviewed for potential impairment at least annually or when events or changes in circumstances indicate that the asset’s carrying value may not be recoverable. If such indicators are present, it is determined whether the sum of the estimated undiscounted future cash flows attributable to such assets is less than the carrying value of the assets. A potential impairment has occurred if projected future undiscounted cash flows are less than the carrying value of the assets. We recorded impairments of $68 million in 2020 in Impairments, store closing, and other costs of which $51 million was due to the impact of the COVID-19 pandemic and $17 million was related to impairments of corporate facilities and leases. We recorded impairments of $73 million in 2019 in Impairments, store closing, and other costs. Leases In the first quarter of 2020, we negotiated rent deferrals for a significant number of our stores, with repayment at later dates, primarily in the third and fourth quarter of 2020 and first and second quarter of 2021. These concessions provide a deferral of rent payments with no substantive changes to the original contract. Consistent with updated guidance from the Financial Accounting Standards Board (“FASB”) in April 2020, we have elected to treat the COVID-19 pandemic-related rent deferrals as accrued liabilities. We continued to recognize expense during the deferral periods. Other Noncurrent Assets Other noncurrent assets consist of the following: (Dollars in Millions) January 30, 2021 February 1, 2020 Income taxes receivable $ 232 $ — Deferred tax assets 42 18 Other 141 145 Other noncurrent assets (a) $ 415 $ 163 (a) See Note 5 of Notes to Consolidated Financial Statements for further discussion on income taxes. Accrued Liabilities Accrued liabilities consist of the following: (Dollars in Millions) January 30, 2021 February 1, 2020 Gift cards and merchandise return cards $ 339 $ 334 Sales, property, and use taxes 196 182 Payroll and related fringe benefits 229 101 Credit card liabilities 52 84 Accrued capital 10 104 Other 444 476 Accrued liabilities $ 1,270 $ 1,281 Restructuring Reserve The following table summarizes changes in the restructuring reserve during 2020: (Dollars in Millions) Severance Balance - February 1, 2020 $ 27 Payments and reversals (37 ) Additions 23 Balance - January 30, 2021 $ 13 Charges related to corporate restructuring efforts are recorded in Impairments, store closing, and other costs. Self-Insurance We use a combination of insurance and self-insurance for a number of risks. We retain the initial risk of $500,000 per occurrence in workers’ compensation claims and $250,000 per occurrence in general liability claims. We record reserves for workers’ compensation and general liability claims which include the total amounts that we expect to pay for a fully developed loss and related expenses, such as fees paid to attorneys, experts, and investigators. We are fully self-insured for employee-related health care benefits, a portion of which is paid by our associates. We use a third-party actuary to estimate the liabilities associated with workers’ compensation, general liability, and employee-related health care risks. These liabilities include amounts for both reported claims and incurred, but not reported losses. The total liabilities, net of collateral held by third parties, for these risks were $52 million as of January 30, 2021 and $79 million as of February 1, 2020. For property losses we are subject to a $5 million self-insured retention (“SIR”). Maintenance deductibles (retained amount) apply toward the SIR as follows: for catastrophic claims such as earthquakes, floods, and windstorms, the maintenance deductible varies from 2-5% of the insurance claim. Similarly, for other standard claims, such as fire and building damages, the maintenance deductible of $250,000 applies per occurrence for the property loss. All maintenance deductibles erode the $5 million SIR. Once the SIR is incurred the maintenance deductibles apply. Treasury Stock We account for repurchases of common stock and shares withheld in lieu of taxes when restricted stock vests using the cost method with common stock in treasury classified in the Consolidated Balance Sheets as a reduction of shareholders’ equity. Revenue Recognition Net Sales Net sales includes revenue from the sale of merchandise and shipping revenues. Net sales are recognized when merchandise is received by the customer and we have fulfilled all performance obligations. We do not have any sales that are recorded as commissions. The following table summarizes net sales by line of business: (Dollars in Millions) 2020 2019 2018 Women's $ 3,796 $ 5,302 $ 5,452 Home 3,381 3,249 3,341 Men’s 2,753 3,827 3,828 Children's 2,082 2,460 2,464 Accessories 1,638 2,217 2,227 Footwear 1,381 1,830 1,855 Net Sales $ 15,031 $ 18,885 $ 19,167 We maintain various rewards programs whereby customers earn rewards based on their spending and other promotional activities. The rewards are typically in the form of dollar-off discounts which can be used on future purchases. These programs create performance obligations which require us to defer a portion of the original sale until the rewards are redeemed. Sales are recorded net of returns. At the end of each reporting period, we record a reserve based on historical return rates and patterns which reverses sales that we expect to be returned in the following period. Revenue from the sale of Kohl's gift cards is recognized when the gift card is redeemed. Unredeemed gift card and merchandise return card liabilities totaled $339 million as of January 30, 2021 and $334 million as of February 1, 2020. Revenue of $159 million was recognized during 2020 from gift cards issued in prior years and outstanding as of February 1, 2020. Net sales do not include sales tax as we are considered a pass-through conduit for collecting and remitting sales taxes. Other Revenue Other revenue consists primarily of revenue from our credit card operations, unredeemed gift cards and merchandise return cards (breakage), and other non-merchandise revenues. Revenue from credit card operations includes our share of the finance charges, late fees, and other revenue less write-offs of uncollectible accounts of the Kohl’s credit card pursuant to the Private Label Credit Card Program Agreement. Expenses related to our credit card operations are reported in SG&A. Revenue from unredeemed gift cards and merchandise return cards (breakage) is recorded in proportion to and over the time period the cards are actually redeemed. Cost of Merchandise Sold and Selling, General, and Administrative Expenses The following table illustrates the primary costs classified in Cost of Merchandise Sold and Selling, General, and Administrative Expenses: Cost of Merchandise Sold Selling, General, and Administrative Expenses • Total cost of products sold including product development costs, net of vendor payments other than reimbursement of specific, incremental, and identifiable costs • Inventory shrink • Markdowns • Freight expenses associated with moving merchandise from our vendors to our distribution centers • Shipping expenses for digital sales • Terms cash discount • Depreciation of product development facilities and equipment • Compensation and benefit costs including: • Stores • Corporate, including buying • Distribution centers • Occupancy and operating costs of our retail, distribution, and corporate facilities • Expenses related to our credit card operations • Freight expenses associated with moving merchandise from our distribution centers to our retail stores and between distribution and retail facilities other than expenses to fulfill digital sales • Marketing expenses, offset by vendor payments for reimbursement of specific, incremental, and identifiable costs • Other non-operating revenues and expenses The classification of these expenses varies across the retail industry. Vendor Allowances We receive consideration for a variety of vendor-sponsored programs, such as markdown allowances, volume rebates, and promotion and marketing support. The vendor consideration is recorded as earned either as a reduction of Cost of Merchandise Sold or Selling, General, and Administrative Expenses. Promotional and marketing allowances are intended to offset our marketing costs to promote vendors’ merchandise. Markdown allowances and volume rebates are recorded as a reduction of inventory costs. Fair Value Fair value measurements are required to be classified and disclosed in one of the following pricing categories: 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. Current assets and liabilities are reported at cost, which approximates fair value. Cash and cash equivalents are classified as Level 1 as carrying value approximates fair value because maturities are less than three months. Marketing Marketing costs are expensed when the marketing is first seen. Marketing costs, net of related vendor allowances, are as follows: (Dollars in Millions) 2020 2019 2018 Gross marketing costs $ 824 $ 1,156 $ 1,133 Vendor allowances (36 ) (130 ) (143 ) Net marketing costs $ 788 $ 1,026 $ 990 Net marketing costs as a percent of total revenue 4.9 % 5.1 % 4.9 % Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recorded based on differences between the amounts of assets and liabilities recognized for financial reporting purposes and such amounts recognized for income tax purposes. Deferred tax assets and liabilities are calculated using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. We establish valuation allowances for deferred tax assets when we believe it is more likely than not that the asset will not be realizable for tax purposes. We recognize interest and penalty expense related to unrecognized tax benefits in our provision for income tax expense. Net (Loss) Income Per Share Basic net (loss) income per share is net (loss) income divided by the average number of common shares outstanding during the period. Diluted net (loss) income per share includes incremental shares assumed for share-based awards and stock warrants. Potentially dilutive shares include stock options, unvested restricted stock units and awards, and warrants outstanding during the period, using the treasury stock method. Potentially dilutive shares are excluded from the computations of diluted earnings per share (“EPS”) if their effect would be anti-dilutive. The information required to compute basic and diluted net (loss) income per share is as follows: (Dollars and Shares in Millions, Except per Share Data) 2020 2019 2018 Numerator—Net (loss) income $ (163) $ 691 $ 801 Denominator—Weighted average shares Basic 154 157 164 Dilutive impact — 1 1 Diluted 154 158 165 Net (loss) income per share: Basic $ (1.06) $ 4.39 $ 4.88 Diluted $ (1.06) $ 4.37 $ 4.84 The following potential shares of common stock were excluded from the diluted net (loss) income per share calculation because their effect would have been anti-dilutive: (Shares in Millions) 2020 2019 2018 Anti-dilutive shares 6 3 — Share-Based Awards Stock-based compensation expense is generally recognized on a straight-line basis over the vesting period based on the fair value of awards which are expected to vest. The fair value of all share-based awards is estimated on the date of grant. Recent Accounting Pronouncements We adopted the new accounting standard on accounting for expected credit losses (ASU 2016-13), effective at the beginning of fiscal 2020. We applied the new principle using a modified retrospective approach. There was not a material impact on our financial statements due to adoption of the new standard. We adopted the new accounting standard on recognizing implementation costs related to a cloud computing arrangement (ASU 2018-15), effective at the beginning of fiscal 2020. We applied the new principle using a prospective approach. There was not a material impact on our financial statements due to adoption of the new standard. The following table provides a brief description of issued, but not yet effective, accounting standards: Standard Description Effect on our Financial Statements Income Taxes (ASU 2019-12) Issued December 2019 Effective Q1 2021 The new standard is designed to simplify the accounting for income taxes by removing certain exceptions to the general principles as outlined in U.S. GAAP. We have substantially completed the process of evaluating the effects that will result from adopting the amendments and no material impact on our financial statements has been identified. |
Debt
Debt | 12 Months Ended |
Jan. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 2. Debt Long-term debt consists of the following unsecured senior debt: Maturity (Dollars in Millions) Effective Rate Coupon Rate Outstanding January 30, 2021 February 1, 2020 2023 3.25 % 3.25 % $ 350 $ 350 2023 4.78 % 4.75 % 184 184 2025 9.50 % 9.50 % 600 — 2025 4.25 % 4.25 % 650 650 2029 7.36 % 7.25 % 42 42 2033 6.05 % 6.00 % 113 113 2037 6.89 % 6.88 % 101 101 2045 5.57 % 5.55 % 427 427 Outstanding unsecured senior debt 2,467 1,867 Unamortized debt discounts and deferred financing costs (16 ) (11 ) Unsecured senior debt $ 2,451 $ 1,856 Effective interest rate 5.90 % 4.74 % Our unsecured senior long-term debt is classified as Level 1, financial instruments with unadjusted, quoted prices listed on active market exchanges. The estimated fair value of our unsecured senior debt was $2.8 billion at January 30, 2021 and $2.0 billion at February 1, 2020. In March 2020, we fully drew down our $1.0 billion senior unsecured revolver. In April 2020, we replaced and upsized the unsecured credit facility with a $1.5 billion senior secured, asset based revolving credit facility maturing in July 2024. The revolver is secured by substantially all of our assets other than real estate, In April 2020, we issued $600 million of 9.50% notes with semi-annual interest payments beginning in November 2020. The notes include coupon rate step ups if our long-term debt is downgraded to below a BBB- credit rating by S&P Global Ratings or Baa3 by Moody’s Investors Service, Inc. The notes mature in May 2025. We used part of the net proceeds from this offering to repay $500 million of the borrowings under our senior secured, asset based revolving credit facility with the remaining net proceeds available for general corporate purposes. Our various debt agreements contain covenants including limitations on additional indebtedness and certain financial tests. As of January 30, 2021, we were in compliance with all covenants of the various debt agreements. We also have additional outstanding trad e letters of credit outside of the credit facility totaling approximately $8 million at January 30, 2021 |
Leases
Leases | 12 Months Ended |
Jan. 30, 2021 | |
Leases [Abstract] | |
Leases | 3. Leases We lease certain property and equipment used in our operations. Some of our store leases include additional rental payments based on a percentage of sales over contractual levels or which are adjusted periodically for inflation. Our typical store lease has an initial term of 20 to 25 years and four to eight five-year Lease assets represent our right to use an underlying asset for the lease term. Lease assets are recognized at commencement date based on the value of the lease liability and are adjusted for any lease payments made to the lessor at or before commencement date, minus any lease incentives received and any initial direct costs incurred by the lessee. Lease liabilities represent our contractual obligation to make lease payments. At the commencement date, the lease liabilities equal the present value of minimum lease payments over the lease term. As the implicit interest rate is not readily identifiable in our leases, we estimate our collateralized borrowing rate to calculate the present value of lease payments. Leases with a term of 12 months or less are excluded from the balance; we recognize lease expense for these leases on a straight-line basis over the lease term. We combine lease and non-lease components for new and modified leases. The following tables summarize our operating and finance leases and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheets January 30, 2021 February 1, 2020 (Dollars in Millions) Classification Assets Operating leases Operating leases $ 2,398 $ 2,391 Finance leases Property & equipment, net 708 672 Total operating & finance leases 3,106 3,063 Liabilities Current Operating leases Current portion of operating leases 161 158 Finance leases Current portion of finance leases & financing obligations 76 88 Noncurrent Operating leases Operating leases 2,625 2,619 Finance leases Finance leases & financing obligations 926 877 Total operating & finance leases $ 3,788 $ 3,742 Consolidated Statements of Operations 2020 2019 (Dollars in Millions) Classification Operating leases Selling, general, and administrative $ 314 $ 314 Finance Leases Amortization of leased assets Depreciation and amortization 79 72 Interest on leased assets Interest expense, net 102 98 Total operating and finance leases $ 495 $ 484 Rent expense charged to operations was $301 million for 2018. Consolidated Statement of Cash Flows 2020 2019 (Dollars in Millions) Cash paid for amounts included in the measurement of leased liabilities Operating cash flows from operating leases $ 305 $ 320 Operating cash flows from finance leases 102 98 Financing cash flows from finance leases 69 76 The following table summarizes future lease payments by fiscal year: January 30, 2021 Operating Leases Finance Leases (Dollars in Millions) Total 2021 $ 313 $ 170 $ 483 2022 306 154 460 2023 293 134 427 2024 259 118 377 2025 244 113 357 After 2025 3,448 1,804 5,252 Total lease payments $ 4,863 $ 2,493 $ 7,356 Amount representing interest (2,077 ) (1,491 ) (3,568 ) Lease liabilities $ 2,786 $ 1,002 $ 3,788 Total lease payments include $3.1 billion related to options to extend operating lease terms that are reasonably certain of being exercised and $1.6 billion related to options to extend finance lease terms that are reasonably certain of being exercised. The following table summarizes weighted-average remaining lease term and discount rate: January 30, 2021 February 1, 2020 Weighted-average remaining term (years) Operating leases 19 20 Finance leases 18 17 Weighted-average discount rate Operating leases 6 % 6 % Finance leases 10 % 11 % A sale leaseback was completed during the second quarter of 2020 for our San Bernardino E-commerce fulfillment and distribution center. The properties were sold for $195 million and generated net proceeds of $193 million after fees. A gain of $127 million was recognized during the second quarter of 2020 and is recorded in Gain on sale of real estate. An initial operating lease liability and a corresponding right of use asset of $84 million were recorded for these leased locations. Financing Obligations Historical failed sale-leasebacks that did not qualify for sale-leaseback accounting upon adoption of ASC 842 continue to be accounted for as financing obligations. The following tables summarize our financing obligations and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheets January 30, 2021 February 1, 2020 (Dollars in Millions) Classification Assets Financing obligations Property & equipment, net $ 65 $ 76 Liabilities Current Current portion of finance leases & financing obligations 39 36 Noncurrent Finance leases & financing obligations 461 490 Total financing obligations $ 500 $ 526 Consolidated Statement of Operations 2020 2019 (Dollars in Millions) Classification Amortization of financing obligation assets Depreciation and amortization $ 11 $ 11 Interest on financing obligations Interest expense, net 36 37 Total financing obligations $ 47 $ 48 Consolidated Statement of Cash Flows 2020 2019 (Dollars in Millions) Cash paid for amounts included in the measurement of financing obligations Operating cash flows from financing obligations $ 36 $ 37 Financing cash flows from financing obligations 36 37 Proceeds from financing obligations 9 11 (Gain) on extinguishment of debt — (9 ) In 2019, we purchased leased equipment that was accounted for as a financing obligation resulting in recognition of a $9 million gain on extinguishment of debt. The following table summarizes future financing obligation payments by fiscal year: (Dollars in Millions) January 30, 2021 Financing Obligations 2021 $ 70 2022 70 2023 67 2024 62 2025 49 After 2025 207 Total lease payments $ 525 Non-cash gain on future sale of property 219 Amount representing interest (244 ) Financing obligation liability $ 500 Total payments exclude $7.3 million of legally binding payments for contracts signed, but not yet commenced. The following table summarizes the weighted-average remaining term and discount rate for financing obligations: January 30, 2021 February 1, 2020 Weighted-average remaining term (years) 8 9 Weighted-average discount rate 7 % 7 % |
Benefit Plans
Benefit Plans | 12 Months Ended |
Jan. 30, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Benefit Plans | 4. Benefit Plans We have a defined contribution savings plan covering all full-time and certain part-time associates. Participants in this plan may invest up to 99% of their base compensation, subject to certain statutory limits. We match 100% of the first 5% of each participant’s contribution, subject to certain statutory limits. We also offer a non-qualified deferred compensation plan to a group of executives which provides for pre-tax compensation deferrals up to 75% of salary and 100% of bonus. Deferrals and credited investment returns are 100% vested. The total costs for these benefit plans were $50 million for 2020, $51 million for 2019, and $50 million for 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes Deferred income taxes consist of the following: (Dollars in Millions) January 30, 2021 February 1, 2020 Deferred tax liabilities: Property and equipment $ 718 $ 611 Lease assets 821 816 Merchandise inventories 46 76 Total deferred tax liabilities 1,585 1,503 Deferred tax assets: Lease obligations 1,093 1,110 Accrued and other liabilities, including stock-based compensation 244 144 Federal benefit on state tax reserves 30 30 Valuation allowance (42 ) (23 ) Total deferred tax assets 1,325 1,261 Net deferred tax liability $ 260 $ 242 Deferred tax assets included in other long-term assets totaled $42 million as of January 30, 2021 February 1, 2020 The components of the (benefit) provision for income taxes were as follows: (Dollars in Millions) 2020 2019 2018 Current federal $ (439) $ 128 $ 229 Current state 38 31 43 Deferred federal 69 60 (36 ) Deferred state (51) (9 ) 5 (Benefit) provision for income taxes $ (383) $ 210 $ 241 On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted and signed into law. The CARES Act modified a number of corporate tax provisions, such as the limitations on the deduction of business interest expense under Section 163(j) as well as allowing net operating loss carryovers and carrybacks to fully offset taxable income for years beginning before 2021. Additionally, the CARES Act allows net operating losses incurred in 2018, 2019, and 2020 to be carried back to the five preceding tax years to generate a refund of previously paid income taxes. The effective tax rate differs from the amount that would be provided by applying the statutory U.S. corporate tax rate due to the following items: 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 2.1 3.1 3.7 Federal NOL carryback 66.0 — — Uncertain tax positions (19.4 ) 0.6 (0.2 ) Federal tax credits 0.4 (1.2 ) (1.0 ) Other 0.1 (0.2 ) (0.3 ) Effective tax rate 70.2 % 23.3 % 23.2 % The effective tax rate for the year ended January 30, 2021, was higher than the effective tax rate for the year ended February 1, 2020, primarily due to the federal net operating loss (“NOL”) generated in the current year that will be carried back up to five taxable years. The Company has calculated a federal NOL for the year ended January 30, 2021 and will carryback the federal NOL generated in the current year to tax years 2015 – 2017. As a result, for the year ended January 30, 2021, the Company recorded an income tax benefit of $474 million due to the federal income tax rate differential for the year ended January 30, 2021 of 21% versus tax years 2015 – 2017 of 35%. We have analyzed filing positions in all of the federal and state jurisdictions where we are required to file income tax returns, as well as all open tax years in these jurisdictions. The federal returns subject to examination are the 2012 through 2020 tax years, excluding the 2014 tax year. State returns subject to examination vary depending upon the state. Generally, 2016 through 2020 tax years are subject to state examination. The earliest state open period is 2007. Certain states have proposed adjustments, which we are currently appealing. If we do not prevail on our appeals, we do not anticipate that the adjustments would result in a material change in our financial position. We assess our income tax positions and record tax liabilities for all years subject to examination based upon management’s evaluation of the facts and circumstances and information available at the reporting dates. For those income tax positions where it is more-likely-than-not, based on technical merits, that a tax benefit will be sustained upon the conclusion of an examination, we have recorded the largest amount of tax benefit having a cumulatively greater than 50% likelihood of being realized upon ultimate settlement with the applicable taxing authority, assuming that it has full knowledge of all relevant information. For those tax positions which do not meet the more-likely-than-not threshold regarding the ultimate realization of the related tax benefit, no tax benefit has been recorded in the financial statements. In addition, we provide for interest and penalties, as applicable, and record such amounts as a component of the overall income tax provision. A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows: (Dollars in Millions) 2020 2019 Balance at beginning of year $ 135 $ 133 Increases due to tax positions taken in prior years — 7 Increases due to tax positions taken in current year 177 12 Decreases due to: Tax positions taken in prior years (9 ) (14 ) Settlements with taxing authorities (4 ) — Lapse of applicable statute of limitations (1 ) (3 ) Balance at end of year $ 298 $ 135 Not included in the unrecognized tax benefits reconciliation above are gross unrecognized accrued interest and penalties of $42 million at January 30, 2021 and $35 million at February 1, 2020. Interest and penalty expenses were Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $276 million as of January 30, 2021 and $112 million as of February 1, 2020. It is reasonably possible that our unrecognized tax positions may change within the next 12 months, primarily as a result of ongoing audits. While it is possible that one or more of these examinations may be resolved in the next year, it is not anticipated that a significant impact to the unrecognized tax benefit balance will occur. We have both payables and receivables for income taxes recorded on our balance sheet. Receivables included in other current assets totaled $610 million as of January 30, 2021 and $15 million as of February 1, 2020. Receivables included in other long term assets totaled $232 million as of January 30, 2021; there was no long term receivable as of February 1, 2020. Payables included in current liabilities totaled $10 million as of January 30, 2021 and $48 million as of February 1, 2020. |
Stock-Based Awards
Stock-Based Awards | 12 Months Ended |
Jan. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Awards | 6. Stock-Based Awards We currently grant share-based compensation pursuant to the Kohl’s Corporation 2017 Long-Term Compensation Plan, which provides for the granting of various forms of equity-based awards, including nonvested stock, performance share units, and options to purchase shares of our common stock, to officers, key employees, and directors. As of January 30, 2021 Annual grants are typically made in the first quarter of the fiscal year. Grants to newly-hired and promoted employees and other discretionary grants are made periodically throughout the remainder of the year. Stock Options The majority of stock options previously granted to employees vest in five equal annual installments. Outstanding options granted to employees prior to 2006 have a term of up to 15 years. Outstanding options granted to employees after 2005 have a term of seven years. Outstanding options granted to directors have a term of 10 years. All stock options have an exercise price equal to the fair market value of the common stock on the date of grant. The fair value of each option award was estimated using a Black-Scholes option valuation model. The following table summarizes our stock option activity: 2020 2019 2018 (Shares in Thousands) Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Balance at beginning of year 87 $ 51.78 136 $ 51.48 1,139 $ 50.51 Exercised — — (46 ) 50.88 (1,001 ) 50.37 Forfeited/expired (51 ) 51.53 (3 ) 51.50 (2 ) 53.52 Balance at end of year 36 $ 52.15 87 $ 51.78 136 $ 51.48 The intrinsic value of options exercised represents the excess of our stock price at the time the option was exercised over the exercise price and was $0 in 2020, $1 million in 2019, and $16 million in 2018. The stock options outstanding as of January 30, 2021 are all exercisable. They have a weighted average remaining contractual life of 0.6 years and no intrinsic value. Our closing stock price of $44.06 on January 30, 2021 is less than the exercise price of the remaining options. Nonvested Stock Awards We have also awarded shares of nonvested common stock to eligible key employees and to our Board of Directors. Substantially all awards have restriction periods tied primarily to employment and/or service. Employee awards generally vest over five years. Director awards vest over the term to which the director was elected, generally one year. In lieu of cash dividends, holders of nonvested stock awards are granted restricted stock equivalents which vest consistently with the underlying nonvested stock awards. The fair value of nonvested stock awards is the closing price of our common stock on the date of grant. We may acquire shares from employees in lieu of amounts required to satisfy minimum tax withholding requirements upon the vesting of the employee’s unvested stock award. Such shares are then designated as treasury shares. The following table summarizes nonvested stock activity, including restricted stock equivalents issued in lieu of cash dividends: 2020 2019 2018 (Shares in Thousands) Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Balance at beginning of year 2,312 $ 56.24 2,601 $ 51.90 2,811 $ 45.60 Granted 2,640 20.46 917 63.57 1,086 63.25 Vested (1,053 ) 52.83 (1,004 ) 50.06 (1,202 ) 47.69 Forfeited (448 ) 39.21 (202 ) 57.71 (94 ) 49.08 Balance at end of year 3,451 $ 32.09 2,312 $ 56.24 2,601 $ 51.90 The aggregate fair value of awards at the time of vesting was $56 million in 2020, $50 million in 2019, and $57 million in 2018. Performance Share Units We grant performance-based share units ("performance share units") to certain executives. The performance measurement period for these performance share units is three fiscal years. The fair market value of the grants is determined using a Monte-Carlo valuation on the date of grant. The actual number of shares which will be earned at the end of the three-year vesting periods will vary based on our cumulative financial performance over the vesting periods. Due to COVID-19, the calculation methodology for certain shares granted in 2018 was modified from a three-year cumulative measurement period to a three-year average measurement period, with each year measured against one-third of the cumulative goal. The number of performance share units earned will be modified up or down based on Kohl's Relative Total Shareholder Return against a defined peer group during the vesting periods. The payouts, if earned, will be settled in Kohl's common stock after the end of each multi-year performance periods. The following table summarizes performance share unit activity by year: 2020 2019 2018 (Shares in Thousands) Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Balance at beginning of year 1,274 $ 61.55 1,046 $ 52.08 724 $ 46.07 Granted 699 19.76 665 69.30 365 66.66 Vested (826 ) 42.72 (336 ) 46.87 (38 ) 78.35 Forfeited (110 ) 46.79 (101 ) 63.41 (5 ) 46.91 Balance at end of year 1,037 $ 49.95 1,274 $ 61.55 1,046 $ 52.08 Stock Warrants Effective April 18, 2019, in connection with our entry into a commercial agreement with Amazon.com Services, Inc. (“Amazon”), we issued warrants to an affiliate of Amazon, to purchase up to 1,747,441 shares of our common stock at an exercise price of $69.68, subject to customary anti-dilution provisions. The fair value was estimated to be $17.52 per warrant using a binomial lattice method. The warrants vest in five equal annual installments. The first installment vested on January 15, 2020, and the second installment on January 15, 2021. Total vested and unvested shares as of January 30, 2021 were 698,977 and 1,048,464, respectively. The warrants will expire on April 18, 2026. Unvested warrants will not vest if the commercial agreement is terminated, not renewed, or if no substitute written returns arrangement is entered into between the parties. Other Required Disclosures Stock-based compensation expense, other than that included in Impairments, store closing, and other costs, is included in Selling, general, and administrative expenses in our Consolidated Statements of Income. Stock-based compensation expense totaled $40 million for 2020, $56 million for 2019, and $87 million for 2018. At January 30, 2021, we had approximately $85 million of unrecognized share-based compensation expense, which is expected to be recognized over a weighted-average period of 1.5 years. |
Contingencies
Contingencies | 12 Months Ended |
Jan. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 7. Contingencies We are subject to legal proceedings and claims arising out of the conduct of our business, including claims both by and against us. Such proceedings typically involve claims related to various forms of liability, contract disputes, allegations of violations of laws or regulations, or other actions brought by us or others including our employees, consumers, competitors, suppliers, or governmental agencies. We routinely assess the likelihood of any adverse outcomes related to these matters on a case by case basis, as well as the potential ranges of losses and fees. We establish accruals for our potential exposure, as appropriate, for significant claims against us when losses become probable and reasonably estimable. Where we are able to reasonably estimate a range of potential losses relating to significant matters, we record the amount within that range that constitutes our best estimate. We also disclose the nature of and range of loss for claims against us when losses are reasonably possible and material. These accruals and disclosures are determined based on the facts and circumstances related to the individual cases and require estimates and judgments regarding the interpretation of facts and laws, as well as the effectiveness of strategies or other factors beyond our control. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Jan. 30, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | 8. Quarterly Financial Information (Unaudited) 2020 (Dollars and Shares in Millions, Except per Share Data) First Second Third Fourth Total revenue $ 2,428 $ 3,407 $ 3,979 $ 6,141 Cost of merchandise sold $ 1,787 $ 2,149 $ 2,424 $ 4,000 Selling, general, and administrative expenses $ 1,066 $ 1,050 $ 1,302 $ 1,603 Impairments, store closing, and other costs $ 66 $ (2 ) $ 21 $ 4 (Gain) on sale of real estate $ — $ (127 ) $ — $ — Net (loss) income $ (541 ) $ 47 $ (12 ) $ 343 Basic shares 154 154 154 154 Basic net (loss) income per share $ (3.52 ) $ 0.31 $ (0.08 ) $ 2.23 Diluted shares 154 155 154 156 Diluted net (loss) income per share $ (3.52 ) $ 0.30 $ (0.08 ) $ 2.20 2019 (Dollars and Shares in Millions, Except per Share Data) First Second Third Fourth Total revenue $ 4,087 $ 4,430 $ 4,625 $ 6,832 Cost of merchandise sold $ 2,415 $ 2,550 $ 2,775 $ 4,400 Selling, general, and administrative expenses $ 1,275 $ 1,269 $ 1,419 $ 1,742 (Gain) loss on extinguishment of debt — — $ (9 ) — Impairments, store closing, and other costs $ 49 $ 7 — $ 57 Net income $ 62 $ 241 $ 123 $ 265 Basic shares 161 159 156 154 Basic net income per share $ 0.38 $ 1.52 $ 0.79 $ 1.72 Diluted shares 162 159 157 154 Diluted net income per share $ 0.38 $ 1.51 $ 0.78 $ 1.72 Due to changes in stock prices during the year and timing of share repurchases and issuances, the sum of quarterly net (loss) income per share may not equal the annual net (loss) income per share. |
Business and Summary of Accou_2
Business and Summary of Accounting Policies (Policies) | 12 Months Ended |
Jan. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business | Business As of January 30, 2021 www.Kohls.com Our authorized capital stock consists of 800 million shares of $0.01 par value common stock and 10 million shares of $0.01 par value preferred stock. |
Consolidation | Consolidation The Consolidated Financial Statements include the accounts of Kohl’s Corporation and its subsidiaries including Kohl’s, Inc., its primary operating company. All intercompany accounts and transactions have been eliminated. |
Accounting Period | Accounting Period Our fiscal year ends on the Saturday closest to January 31 st Fiscal Year Ended Number of Weeks 2020 January 30, 2021 52 2019 February 1, 2020 52 2018 February 2, 2019 52 |
Use of Estimates | Use of Estimates The preparation of Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. We believe that our accounting estimates are appropriate and reflect the increased uncertainties surrounding the severity and duration of the COVID-19 pandemic. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents In addition to money market investments, cash equivalents include commercial paper and certificates of deposit with original maturities of three months or less. We carry these investments at cost which approximates fair value. Also included in cash and cash equivalents are amounts due from credit card transactions with settlement terms of less than five days. Credit and debit card receivables included within cash were $77 million at January 30, 2021 and $87 million at February 1, 2020. |
Merchandise Inventories | Merchandise Inventories Merchandise inventories are valued at the lower of cost or market using the Retail Inventory Method (“RIM”). Under RIM, the valuation of inventory at cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the retail value of inventory. RIM is an averaging method that has been widely used in the retail industry due to its practicality. The use of RIM will result in inventory being valued at the lower of cost or market since permanent markdowns are taken as a reduction of the retail value of inventories. A reserve is recorded if the future estimated selling price is less than cost. |
Other Current Assets | Other Current Assets Other current assets consist of the following: (Dollars in Millions) January 30, 2021 February 1, 2020 Income taxes receivable $ 610 $ 15 Other Receivables 179 182 Prepaids 172 171 Other 13 21 Other current assets (a) $ 974 $ 389 (a) See Note 5 of Notes to Consolidated Financial Statements for further discussion on income taxes. |
Property and Equipment | Property and Equipment Property and equipment consist of the following: (Dollars in Millions) January 30, 2021 February 1, 2020 Land $ 1,091 $ 1,107 Buildings and improvements: Owned 7,783 7,869 Leased 963 867 Fixtures and equipment 1,267 1,426 Information technology 2,855 2,806 Construction in progress 313 279 Total property and equipment, at cost 14,272 14,354 Less accumulated depreciation and amortization (7,583 ) (7,002 ) Property and equipment, net $ 6,689 $ 7,352 Construction in progress includes property and equipment which is not ready for its intended use. Property and equipment are recorded at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Owned buildings and improvements include owned buildings on owned and leased land as well as leasehold improvements on leased properties. Leased property and improvements to leased property are amortized on a straight-line basis over the term of the lease or useful life of the asset, whichever is less. Leases are further described in Note 3 of the Consolidated Financial Statements. The annual provisions for depreciation and amortization generally use the following ranges of useful lives: Buildings and improvements 5-40 years Fixtures and equipment 3-15 years Information technology 3-8 years |
Long-Lived Assets | Long-Lived Assets All property and equipment and other long-lived assets are reviewed for potential impairment at least annually or when events or changes in circumstances indicate that the asset’s carrying value may not be recoverable. If such indicators are present, it is determined whether the sum of the estimated undiscounted future cash flows attributable to such assets is less than the carrying value of the assets. A potential impairment has occurred if projected future undiscounted cash flows are less than the carrying value of the assets. We recorded impairments of $68 million in 2020 in Impairments, store closing, and other costs of which $51 million was due to the impact of the COVID-19 pandemic and $17 million was related to impairments of corporate facilities and leases. We recorded impairments of $73 million in 2019 in Impairments, store closing, and other costs. |
Leases | Leases In the first quarter of 2020, we negotiated rent deferrals for a significant number of our stores, with repayment at later dates, primarily in the third and fourth quarter of 2020 and first and second quarter of 2021. These concessions provide a deferral of rent payments with no substantive changes to the original contract. Consistent with updated guidance from the Financial Accounting Standards Board (“FASB”) in April 2020, we have elected to treat the COVID-19 pandemic-related rent deferrals as accrued liabilities. We continued to recognize expense during the deferral periods. |
Other Noncurrent Assets | Other Noncurrent Assets Other noncurrent assets consist of the following: (Dollars in Millions) January 30, 2021 February 1, 2020 Income taxes receivable $ 232 $ — Deferred tax assets 42 18 Other 141 145 Other noncurrent assets (a) $ 415 $ 163 (a) See Note 5 of Notes to Consolidated Financial Statements for further discussion on income taxes. |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consist of the following: (Dollars in Millions) January 30, 2021 February 1, 2020 Gift cards and merchandise return cards $ 339 $ 334 Sales, property, and use taxes 196 182 Payroll and related fringe benefits 229 101 Credit card liabilities 52 84 Accrued capital 10 104 Other 444 476 Accrued liabilities $ 1,270 $ 1,281 |
Restructuring Reserve | Restructuring Reserve The following table summarizes changes in the restructuring reserve during 2020: (Dollars in Millions) Severance Balance - February 1, 2020 $ 27 Payments and reversals (37 ) Additions 23 Balance - January 30, 2021 $ 13 Charges related to corporate restructuring efforts are recorded in Impairments, store closing, and other costs. Self-Insurance We use a combination of insurance and self-insurance for a number of risks. We retain the initial risk of $500,000 per occurrence in workers’ compensation claims and $250,000 per occurrence in general liability claims. We record reserves for workers’ compensation and general liability claims which include the total amounts that we expect to pay for a fully developed loss and related expenses, such as fees paid to attorneys, experts, and investigators. We are fully self-insured for employee-related health care benefits, a portion of which is paid by our associates. We use a third-party actuary to estimate the liabilities associated with workers’ compensation, general liability, and employee-related health care risks. These liabilities include amounts for both reported claims and incurred, but not reported losses. The total liabilities, net of collateral held by third parties, for these risks were $52 million as of January 30, 2021 and $79 million as of February 1, 2020. For property losses we are subject to a $5 million self-insured retention (“SIR”). Maintenance deductibles (retained amount) apply toward the SIR as follows: for catastrophic claims such as earthquakes, floods, and windstorms, the maintenance deductible varies from 2-5% of the insurance claim. Similarly, for other standard claims, such as fire and building damages, the maintenance deductible of $250,000 applies per occurrence for the property loss. All maintenance deductibles erode the $5 million SIR. Once the SIR is incurred the maintenance deductibles apply. |
Self Insurance | Self-Insurance We use a combination of insurance and self-insurance for a number of risks. We retain the initial risk of $500,000 per occurrence in workers’ compensation claims and $250,000 per occurrence in general liability claims. We record reserves for workers’ compensation and general liability claims which include the total amounts that we expect to pay for a fully developed loss and related expenses, such as fees paid to attorneys, experts, and investigators. We are fully self-insured for employee-related health care benefits, a portion of which is paid by our associates. We use a third-party actuary to estimate the liabilities associated with workers’ compensation, general liability, and employee-related health care risks. These liabilities include amounts for both reported claims and incurred, but not reported losses. The total liabilities, net of collateral held by third parties, for these risks were $52 million as of January 30, 2021 and $79 million as of February 1, 2020. For property losses we are subject to a $5 million self-insured retention (“SIR”). Maintenance deductibles (retained amount) apply toward the SIR as follows: for catastrophic claims such as earthquakes, floods, and windstorms, the maintenance deductible varies from 2-5% of the insurance claim. Similarly, for other standard claims, such as fire and building damages, the maintenance deductible of $250,000 applies per occurrence for the property loss. All maintenance deductibles erode the $5 million SIR. Once the SIR is incurred the maintenance deductibles apply. |
Treasury Stock | Treasury Stock We account for repurchases of common stock and shares withheld in lieu of taxes when restricted stock vests using the cost method with common stock in treasury classified in the Consolidated Balance Sheets as a reduction of shareholders’ equity. |
Revenue Recognition | Revenue Recognition Net Sales Net sales includes revenue from the sale of merchandise and shipping revenues. Net sales are recognized when merchandise is received by the customer and we have fulfilled all performance obligations. We do not have any sales that are recorded as commissions. The following table summarizes net sales by line of business: (Dollars in Millions) 2020 2019 2018 Women's $ 3,796 $ 5,302 $ 5,452 Home 3,381 3,249 3,341 Men’s 2,753 3,827 3,828 Children's 2,082 2,460 2,464 Accessories 1,638 2,217 2,227 Footwear 1,381 1,830 1,855 Net Sales $ 15,031 $ 18,885 $ 19,167 We maintain various rewards programs whereby customers earn rewards based on their spending and other promotional activities. The rewards are typically in the form of dollar-off discounts which can be used on future purchases. These programs create performance obligations which require us to defer a portion of the original sale until the rewards are redeemed. Sales are recorded net of returns. At the end of each reporting period, we record a reserve based on historical return rates and patterns which reverses sales that we expect to be returned in the following period. Revenue from the sale of Kohl's gift cards is recognized when the gift card is redeemed. Unredeemed gift card and merchandise return card liabilities totaled $339 million as of January 30, 2021 and $334 million as of February 1, 2020. Revenue of $159 million was recognized during 2020 from gift cards issued in prior years and outstanding as of February 1, 2020. Net sales do not include sales tax as we are considered a pass-through conduit for collecting and remitting sales taxes. Other Revenue Other revenue consists primarily of revenue from our credit card operations, unredeemed gift cards and merchandise return cards (breakage), and other non-merchandise revenues. Revenue from credit card operations includes our share of the finance charges, late fees, and other revenue less write-offs of uncollectible accounts of the Kohl’s credit card pursuant to the Private Label Credit Card Program Agreement. Expenses related to our credit card operations are reported in SG&A. Revenue from unredeemed gift cards and merchandise return cards (breakage) is recorded in proportion to and over the time period the cards are actually redeemed. |
Vendor Allowances | Vendor Allowances We receive consideration for a variety of vendor-sponsored programs, such as markdown allowances, volume rebates, and promotion and marketing support. The vendor consideration is recorded as earned either as a reduction of Cost of Merchandise Sold or Selling, General, and Administrative Expenses. Promotional and marketing allowances are intended to offset our marketing costs to promote vendors’ merchandise. Markdown allowances and volume rebates are recorded as a reduction of inventory costs. |
Fair Value | Fair Value Fair value measurements are required to be classified and disclosed in one of the following pricing categories: 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. Current assets and liabilities are reported at cost, which approximates fair value. Cash and cash equivalents are classified as Level 1 as carrying value approximates fair value because maturities are less than three months. |
Marketing | Marketing Marketing costs are expensed when the marketing is first seen. Marketing costs, net of related vendor allowances, are as follows: (Dollars in Millions) 2020 2019 2018 Gross marketing costs $ 824 $ 1,156 $ 1,133 Vendor allowances (36 ) (130 ) (143 ) Net marketing costs $ 788 $ 1,026 $ 990 Net marketing costs as a percent of total revenue 4.9 % 5.1 % 4.9 % |
Income taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Under this method, deferred tax assets and liabilities are recorded based on differences between the amounts of assets and liabilities recognized for financial reporting purposes and such amounts recognized for income tax purposes. Deferred tax assets and liabilities are calculated using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. We establish valuation allowances for deferred tax assets when we believe it is more likely than not that the asset will not be realizable for tax purposes. We recognize interest and penalty expense related to unrecognized tax benefits in our provision for income tax expense. |
Net (Loss) Income Per Share | Net (Loss) Income Per Share Basic net (loss) income per share is net (loss) income divided by the average number of common shares outstanding during the period. Diluted net (loss) income per share includes incremental shares assumed for share-based awards and stock warrants. Potentially dilutive shares include stock options, unvested restricted stock units and awards, and warrants outstanding during the period, using the treasury stock method. Potentially dilutive shares are excluded from the computations of diluted earnings per share (“EPS”) if their effect would be anti-dilutive. The information required to compute basic and diluted net (loss) income per share is as follows: (Dollars and Shares in Millions, Except per Share Data) 2020 2019 2018 Numerator—Net (loss) income $ (163) $ 691 $ 801 Denominator—Weighted average shares Basic 154 157 164 Dilutive impact — 1 1 Diluted 154 158 165 Net (loss) income per share: Basic $ (1.06) $ 4.39 $ 4.88 Diluted $ (1.06) $ 4.37 $ 4.84 The following potential shares of common stock were excluded from the diluted net (loss) income per share calculation because their effect would have been anti-dilutive: (Shares in Millions) 2020 2019 2018 Anti-dilutive shares 6 3 — |
Share-Based Awards | Share-Based Awards Stock-based compensation expense is generally recognized on a straight-line basis over the vesting period based on the fair value of awards which are expected to vest. The fair value of all share-based awards is estimated on the date of grant. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements We adopted the new accounting standard on accounting for expected credit losses (ASU 2016-13), effective at the beginning of fiscal 2020. We applied the new principle using a modified retrospective approach. There was not a material impact on our financial statements due to adoption of the new standard. We adopted the new accounting standard on recognizing implementation costs related to a cloud computing arrangement (ASU 2018-15), effective at the beginning of fiscal 2020. We applied the new principle using a prospective approach. There was not a material impact on our financial statements due to adoption of the new standard. The following table provides a brief description of issued, but not yet effective, accounting standards: Standard Description Effect on our Financial Statements Income Taxes (ASU 2019-12) Issued December 2019 Effective Q1 2021 The new standard is designed to simplify the accounting for income taxes by removing certain exceptions to the general principles as outlined in U.S. GAAP. We have substantially completed the process of evaluating the effects that will result from adopting the amendments and no material impact on our financial statements has been identified. |
Business and Summary of Accou_3
Business and Summary of Accounting Policies (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Fiscal Period | The following fiscal periods are presented in these notes: Fiscal Year Ended Number of Weeks 2020 January 30, 2021 52 2019 February 1, 2020 52 2018 February 2, 2019 52 |
Schedule of Other Current Assets | Other current assets consist of the following: (Dollars in Millions) January 30, 2021 February 1, 2020 Income taxes receivable $ 610 $ 15 Other Receivables 179 182 Prepaids 172 171 Other 13 21 Other current assets (a) $ 974 $ 389 (a) See Note 5 of Notes to Consolidated Financial Statements for further discussion on income taxes. |
Schedule of Property and Equipment | Property and equipment consist of the following: (Dollars in Millions) January 30, 2021 February 1, 2020 Land $ 1,091 $ 1,107 Buildings and improvements: Owned 7,783 7,869 Leased 963 867 Fixtures and equipment 1,267 1,426 Information technology 2,855 2,806 Construction in progress 313 279 Total property and equipment, at cost 14,272 14,354 Less accumulated depreciation and amortization (7,583 ) (7,002 ) Property and equipment, net $ 6,689 $ 7,352 |
Ranges of Useful Lives | The annual provisions for depreciation and amortization generally use the following ranges of useful lives: Buildings and improvements 5-40 years Fixtures and equipment 3-15 years Information technology 3-8 years |
Schedule of Other Noncurrent Assets | Other noncurrent assets consist of the following: (Dollars in Millions) January 30, 2021 February 1, 2020 Income taxes receivable $ 232 $ — Deferred tax assets 42 18 Other 141 145 Other noncurrent assets (a) $ 415 $ 163 (a) See Note 5 of Notes to Consolidated Financial Statements for further discussion on income taxes. |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: (Dollars in Millions) January 30, 2021 February 1, 2020 Gift cards and merchandise return cards $ 339 $ 334 Sales, property, and use taxes 196 182 Payroll and related fringe benefits 229 101 Credit card liabilities 52 84 Accrued capital 10 104 Other 444 476 Accrued liabilities $ 1,270 $ 1,281 |
Summary of Changes in Restructuring Reserve | The following table summarizes changes in the restructuring reserve during 2020: (Dollars in Millions) Severance Balance - February 1, 2020 $ 27 Payments and reversals (37 ) Additions 23 Balance - January 30, 2021 $ 13 |
Schedule of Net Sales by Line of Business | The following table summarizes net sales by line of business: (Dollars in Millions) 2020 2019 2018 Women's $ 3,796 $ 5,302 $ 5,452 Home 3,381 3,249 3,341 Men’s 2,753 3,827 3,828 Children's 2,082 2,460 2,464 Accessories 1,638 2,217 2,227 Footwear 1,381 1,830 1,855 Net Sales $ 15,031 $ 18,885 $ 19,167 |
Schedule of Marketing Costs, Net of Related Vendor Allowances | Marketing costs are expensed when the marketing is first seen. Marketing costs, net of related vendor allowances, are as follows: (Dollars in Millions) 2020 2019 2018 Gross marketing costs $ 824 $ 1,156 $ 1,133 Vendor allowances (36 ) (130 ) (143 ) Net marketing costs $ 788 $ 1,026 $ 990 Net marketing costs as a percent of total revenue 4.9 % 5.1 % 4.9 % |
Computation of Basic and Diluted Net (Loss) Income Per Share | The information required to compute basic and diluted net (loss) income per share is as follows: (Dollars and Shares in Millions, Except per Share Data) 2020 2019 2018 Numerator—Net (loss) income $ (163) $ 691 $ 801 Denominator—Weighted average shares Basic 154 157 164 Dilutive impact — 1 1 Diluted 154 158 165 Net (loss) income per share: Basic $ (1.06) $ 4.39 $ 4.88 Diluted $ (1.06) $ 4.37 $ 4.84 |
Schedule of Potential Shares of Common Stock Excluded From the Diluted Net (Loss) Income Per Share | The following potential shares of common stock were excluded from the diluted net (loss) income per share calculation because their effect would have been anti-dilutive: (Shares in Millions) 2020 2019 2018 Anti-dilutive shares 6 3 — |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Debt Disclosure [Abstract] | |
Components of Long-term Debt | Long-term debt consists of the following unsecured senior debt: Maturity (Dollars in Millions) Effective Rate Coupon Rate Outstanding January 30, 2021 February 1, 2020 2023 3.25 % 3.25 % $ 350 $ 350 2023 4.78 % 4.75 % 184 184 2025 9.50 % 9.50 % 600 — 2025 4.25 % 4.25 % 650 650 2029 7.36 % 7.25 % 42 42 2033 6.05 % 6.00 % 113 113 2037 6.89 % 6.88 % 101 101 2045 5.57 % 5.55 % 427 427 Outstanding unsecured senior debt 2,467 1,867 Unamortized debt discounts and deferred financing costs (16 ) (11 ) Unsecured senior debt $ 2,451 $ 1,856 Effective interest rate 5.90 % 4.74 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Leases [Abstract] | |
Summary of Operating and Finance Leases | The following tables summarize our operating and finance leases and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheets January 30, 2021 February 1, 2020 (Dollars in Millions) Classification Assets Operating leases Operating leases $ 2,398 $ 2,391 Finance leases Property & equipment, net 708 672 Total operating & finance leases 3,106 3,063 Liabilities Current Operating leases Current portion of operating leases 161 158 Finance leases Current portion of finance leases & financing obligations 76 88 Noncurrent Operating leases Operating leases 2,625 2,619 Finance leases Finance leases & financing obligations 926 877 Total operating & finance leases $ 3,788 $ 3,742 Consolidated Statements of Operations 2020 2019 (Dollars in Millions) Classification Operating leases Selling, general, and administrative $ 314 $ 314 Finance Leases Amortization of leased assets Depreciation and amortization 79 72 Interest on leased assets Interest expense, net 102 98 Total operating and finance leases $ 495 $ 484 Consolidated Statement of Cash Flows 2020 2019 (Dollars in Millions) Cash paid for amounts included in the measurement of leased liabilities Operating cash flows from operating leases $ 305 $ 320 Operating cash flows from finance leases 102 98 Financing cash flows from finance leases 69 76 |
Summary of Future Lease Payments | The following table summarizes future lease payments by fiscal year: January 30, 2021 Operating Leases Finance Leases (Dollars in Millions) Total 2021 $ 313 $ 170 $ 483 2022 306 154 460 2023 293 134 427 2024 259 118 377 2025 244 113 357 After 2025 3,448 1,804 5,252 Total lease payments $ 4,863 $ 2,493 $ 7,356 Amount representing interest (2,077 ) (1,491 ) (3,568 ) Lease liabilities $ 2,786 $ 1,002 $ 3,788 |
Summary of Weighted-Average Remaining Lease Term and Discount Rates | The following table summarizes weighted-average remaining lease term and discount rate: January 30, 2021 February 1, 2020 Weighted-average remaining term (years) Operating leases 19 20 Finance leases 18 17 Weighted-average discount rate Operating leases 6 % 6 % Finance leases 10 % 11 % |
Summary of Financing Obligations | The following tables summarize our financing obligations and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheets January 30, 2021 February 1, 2020 (Dollars in Millions) Classification Assets Financing obligations Property & equipment, net $ 65 $ 76 Liabilities Current Current portion of finance leases & financing obligations 39 36 Noncurrent Finance leases & financing obligations 461 490 Total financing obligations $ 500 $ 526 Consolidated Statement of Operations 2020 2019 (Dollars in Millions) Classification Amortization of financing obligation assets Depreciation and amortization $ 11 $ 11 Interest on financing obligations Interest expense, net 36 37 Total financing obligations $ 47 $ 48 Consolidated Statement of Cash Flows 2020 2019 (Dollars in Millions) Cash paid for amounts included in the measurement of financing obligations Operating cash flows from financing obligations $ 36 $ 37 Financing cash flows from financing obligations 36 37 Proceeds from financing obligations 9 11 (Gain) on extinguishment of debt — (9 ) |
Summary of Future Financing Obligation Payments | The following table summarizes future financing obligation payments by fiscal year: (Dollars in Millions) January 30, 2021 Financing Obligations 2021 $ 70 2022 70 2023 67 2024 62 2025 49 After 2025 207 Total lease payments $ 525 Non-cash gain on future sale of property 219 Amount representing interest (244 ) Financing obligation liability $ 500 |
Summary of Weighted-Average Remaining Term and Discount Rate for Financing Obligations | The following table summarizes the weighted-average remaining term and discount rate for financing obligations: January 30, 2021 February 1, 2020 Weighted-average remaining term (years) 8 9 Weighted-average discount rate 7 % 7 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Deferred Income Taxes | Deferred income taxes consist of the following: (Dollars in Millions) January 30, 2021 February 1, 2020 Deferred tax liabilities: Property and equipment $ 718 $ 611 Lease assets 821 816 Merchandise inventories 46 76 Total deferred tax liabilities 1,585 1,503 Deferred tax assets: Lease obligations 1,093 1,110 Accrued and other liabilities, including stock-based compensation 244 144 Federal benefit on state tax reserves 30 30 Valuation allowance (42 ) (23 ) Total deferred tax assets 1,325 1,261 Net deferred tax liability $ 260 $ 242 |
Schedule of Components of (Benefit) Provision for Income Taxes | The components of the (benefit) provision for income taxes were as follows: (Dollars in Millions) 2020 2019 2018 Current federal $ (439) $ 128 $ 229 Current state 38 31 43 Deferred federal 69 60 (36 ) Deferred state (51) (9 ) 5 (Benefit) provision for income taxes $ (383) $ 210 $ 241 |
Schedule of Items Affecting Statutory Corporate Tax Rate | The effective tax rate differs from the amount that would be provided by applying the statutory U.S. corporate tax rate due to the following items: 2020 2019 2018 Federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 2.1 3.1 3.7 Federal NOL carryback 66.0 — — Uncertain tax positions (19.4 ) 0.6 (0.2 ) Federal tax credits 0.4 (1.2 ) (1.0 ) Other 0.1 (0.2 ) (0.3 ) Effective tax rate 70.2 % 23.3 % 23.2 % |
Schedule of Reconciliation of Gross Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows: (Dollars in Millions) 2020 2019 Balance at beginning of year $ 135 $ 133 Increases due to tax positions taken in prior years — 7 Increases due to tax positions taken in current year 177 12 Decreases due to: Tax positions taken in prior years (9 ) (14 ) Settlements with taxing authorities (4 ) — Lapse of applicable statute of limitations (1 ) (3 ) Balance at end of year $ 298 $ 135 |
Stock-Based Awards (Tables)
Stock-Based Awards (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of stock option activity | The following table summarizes our stock option activity: 2020 2019 2018 (Shares in Thousands) Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Balance at beginning of year 87 $ 51.78 136 $ 51.48 1,139 $ 50.51 Exercised — — (46 ) 50.88 (1,001 ) 50.37 Forfeited/expired (51 ) 51.53 (3 ) 51.50 (2 ) 53.52 Balance at end of year 36 $ 52.15 87 $ 51.78 136 $ 51.48 |
Summary of nonvested stock activity | The following table summarizes nonvested stock activity, including restricted stock equivalents issued in lieu of cash dividends: 2020 2019 2018 (Shares in Thousands) Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Balance at beginning of year 2,312 $ 56.24 2,601 $ 51.90 2,811 $ 45.60 Granted 2,640 20.46 917 63.57 1,086 63.25 Vested (1,053 ) 52.83 (1,004 ) 50.06 (1,202 ) 47.69 Forfeited (448 ) 39.21 (202 ) 57.71 (94 ) 49.08 Balance at end of year 3,451 $ 32.09 2,312 $ 56.24 2,601 $ 51.90 |
Summary of Performance Share Activity | The following table summarizes performance share unit activity by year: 2020 2019 2018 (Shares in Thousands) Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Balance at beginning of year 1,274 $ 61.55 1,046 $ 52.08 724 $ 46.07 Granted 699 19.76 665 69.30 365 66.66 Vested (826 ) 42.72 (336 ) 46.87 (38 ) 78.35 Forfeited (110 ) 46.79 (101 ) 63.41 (5 ) 46.91 Balance at end of year 1,037 $ 49.95 1,274 $ 61.55 1,046 $ 52.08 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Jan. 30, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | 2020 (Dollars and Shares in Millions, Except per Share Data) First Second Third Fourth Total revenue $ 2,428 $ 3,407 $ 3,979 $ 6,141 Cost of merchandise sold $ 1,787 $ 2,149 $ 2,424 $ 4,000 Selling, general, and administrative expenses $ 1,066 $ 1,050 $ 1,302 $ 1,603 Impairments, store closing, and other costs $ 66 $ (2 ) $ 21 $ 4 (Gain) on sale of real estate $ — $ (127 ) $ — $ — Net (loss) income $ (541 ) $ 47 $ (12 ) $ 343 Basic shares 154 154 154 154 Basic net (loss) income per share $ (3.52 ) $ 0.31 $ (0.08 ) $ 2.23 Diluted shares 154 155 154 156 Diluted net (loss) income per share $ (3.52 ) $ 0.30 $ (0.08 ) $ 2.20 2019 (Dollars and Shares in Millions, Except per Share Data) First Second Third Fourth Total revenue $ 4,087 $ 4,430 $ 4,625 $ 6,832 Cost of merchandise sold $ 2,415 $ 2,550 $ 2,775 $ 4,400 Selling, general, and administrative expenses $ 1,275 $ 1,269 $ 1,419 $ 1,742 (Gain) loss on extinguishment of debt — — $ (9 ) — Impairments, store closing, and other costs $ 49 $ 7 — $ 57 Net income $ 62 $ 241 $ 123 $ 265 Basic shares 161 159 156 154 Basic net income per share $ 0.38 $ 1.52 $ 0.79 $ 1.72 Diluted shares 162 159 157 154 Diluted net income per share $ 0.38 $ 1.51 $ 0.78 $ 1.72 |
Business and Summary of Accou_4
Business and Summary of Accounting Policies - Additional Information (Details) | 12 Months Ended | |
Jan. 30, 2021USD ($)StoreOutlet$ / sharesshares | Feb. 01, 2020USD ($) | |
Business And Summary Of Accounting Policies [Line Items] | ||
Number of stores | Store | 1,162 | |
Number of FILA outlets | Outlet | 12 | |
Authorized common stock | shares | 800,000,000 | |
Common stock, par value | $ / shares | $ 0.01 | |
Preferred stock, shares authorized | shares | 10,000,000 | |
Preferred stock, par value | $ / shares | $ 0.01 | |
Credit and debit card receivables | $ 77,000,000 | $ 87,000,000 |
Impairment of property and equipment and other long-lived assets | 68,000,000 | 73,000,000 |
Estimated Total Self Insurance Related liabilities, net of collateral held by third parties | 52,000,000 | 79,000,000 |
Value of insurance risk retained | $ 5,000,000 | |
Maintenance deductible as a percent of losses, minimum | 2.00% | |
Maintenance deductible as a percent of losses, maximum | 5.00% | |
Maintenance deductible | $ 5,000,000 | |
Rewards Program unredeemed gift cards and merchandise return cards liabilities | 339,000,000 | 334,000,000 |
Net Sales [Member] | ||
Business And Summary Of Accounting Policies [Line Items] | ||
Revenue recognized | $ 159,000,000 | |
6321 Accident and Health Insurance [Member] | ||
Business And Summary Of Accounting Policies [Line Items] | ||
Value of initial insurance risk retained | 500,000 | |
General Liability [Member] | ||
Business And Summary Of Accounting Policies [Line Items] | ||
Value of initial insurance risk retained | 250,000 | |
524126 Direct Property and Casualty Insurance Carriers [Member] | ||
Business And Summary Of Accounting Policies [Line Items] | ||
Value of insurance risk retained | 250,000 | |
COVID-19 Pandemic [Member] | ||
Business And Summary Of Accounting Policies [Line Items] | ||
Impairment of property and equipment and other long-lived assets | 51,000,000 | |
Corporate Facilities and Leases [Member] | ||
Business And Summary Of Accounting Policies [Line Items] | ||
Impairment of property and equipment and other long-lived assets | $ 17,000,000 |
Business and Summary of Accou_5
Business and Summary of Accounting Policies - Schedule of Fiscal Period (Details) | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Weeks in reporting period | 364 days | 364 days | 364 days |
Business and Summary of Accou_6
Business and Summary of Accounting Policies - Schedule of Other Current Assets (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Income taxes receivable | $ 610 | $ 15 | |
Other Receivables | 179 | 182 | |
Prepaids | 172 | 171 | |
Other | 13 | 21 | |
Other current assets | [1] | $ 974 | $ 389 |
[1] | See Note 5 of Notes to Consolidated Financial Statements for further discussion on income taxes. |
Business and Summary of Accou_7
Business and Summary of Accounting Policies - Schedule of Property and Equipment (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 1,091 | $ 1,107 |
Fixtures and equipment | 1,267 | 1,426 |
Information technology | 2,855 | 2,806 |
Construction in progress | 313 | 279 |
Total property and equipment, at cost | 14,272 | 14,354 |
Less accumulated depreciation and amortization | (7,583) | (7,002) |
Property and equipment, net | 6,689 | 7,352 |
Owned [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Buildings and Improvements, Gross | 7,783 | 7,869 |
Leased [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Investment Building and Improvements, Gross | $ 963 | $ 867 |
Business and Summary of Accou_8
Business and Summary of Accounting Policies - Ranges of Useful Lives (Details) | 12 Months Ended |
Jan. 30, 2021 | |
Minimum [Member] | Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Minimum [Member] | Fixtures and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Minimum [Member] | Information Technology [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Maximum [Member] | Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Maximum [Member] | Fixtures and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 15 years |
Maximum [Member] | Information Technology [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 8 years |
Business and Summary of Accou_9
Business and Summary of Accounting Policies - Schedule of Other Noncurrent Assets (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Income taxes receivable | $ 232 | ||
Deferred tax assets | 42 | $ 18 | |
Other | 141 | 145 | |
Other noncurrent assets | [1] | $ 415 | $ 163 |
[1] | See Note 5 of Notes to Consolidated Financial Statements for further discussion on income taxes. |
Business and Summary of Acco_10
Business and Summary of Accounting Policies - Schedule of Accrued Liabilities (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Gift cards and merchandise return cards | $ 339 | $ 334 |
Sales, property, and use taxes | 196 | 182 |
Payroll and related fringe benefits | 229 | 101 |
Credit card liabilities | 52 | 84 |
Accrued capital | 10 | 104 |
Other | 444 | 476 |
Accrued liabilities | $ 1,270 | $ 1,281 |
Business and Summary of Acco_11
Business and Summary of Accounting Policies - Summary of Changes in Restructuring Reserve (Details) - Employee Severance [Member] $ in Millions | 12 Months Ended |
Jan. 30, 2021USD ($) | |
Restructuring Cost And Reserve [Line Items] | |
Restructuring Reserve | $ 27 |
Payments and reversals | (37) |
Additions | 23 |
Restructuring Reserve | $ 13 |
Business and Summary of Acco_12
Business and Summary of Accounting Policies - Schedule of Net Sales by Line of Business (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | $ 6,141 | $ 3,979 | $ 3,407 | $ 2,428 | $ 6,832 | $ 4,625 | $ 4,430 | $ 4,087 | $ 15,955 | $ 19,974 | $ 20,229 |
Net Sales [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 15,031 | 18,885 | 19,167 | ||||||||
Net Sales [Member] | Women's [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 3,796 | 5,302 | 5,452 | ||||||||
Net Sales [Member] | Home [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 3,381 | 3,249 | 3,341 | ||||||||
Net Sales [Member] | Men's [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 2,753 | 3,827 | 3,828 | ||||||||
Net Sales [Member] | Children's [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 2,082 | 2,460 | 2,464 | ||||||||
Net Sales [Member] | Accessories [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | 1,638 | 2,217 | 2,227 | ||||||||
Net Sales [Member] | Footwear [Member] | |||||||||||
Disaggregation Of Revenue [Line Items] | |||||||||||
Total revenue | $ 1,381 | $ 1,830 | $ 1,855 |
Business and Summary of Acco_13
Business and Summary of Accounting Policies - Schedule of Marketing Costs, Net of Related Vendor Allowances (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||
Advertising Costs Exclusive Of Vendor Allowances | $ 824 | $ 1,156 | $ 1,133 |
Allowances Received From Vendors For Advertising Expenses Incurred | (36) | (130) | (143) |
Advertising Expense | $ 788 | $ 1,026 | $ 990 |
Net Advertising To Net Revenue | 4.90% | 5.10% | 4.90% |
Business and Summary of Acco_14
Business and Summary of Accounting Policies - Computation of Basic and Diluted Net (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||||||||
Numerator—Net (loss) income | $ 343 | $ (12) | $ 47 | $ (541) | $ 265 | $ 123 | $ 241 | $ 62 | $ (163) | $ 691 | $ 801 |
Denominator - weighted average shares, Basic | 154 | 154 | 154 | 154 | 154 | 156 | 159 | 161 | 154 | 157 | 164 |
Dilutive impact | 1 | 1 | |||||||||
Weighted average shares, Diluted | 156 | 154 | 155 | 154 | 154 | 157 | 159 | 162 | 154 | 158 | 165 |
Basic | $ 2.23 | $ (0.08) | $ 0.31 | $ (3.52) | $ 1.72 | $ 0.79 | $ 1.52 | $ 0.38 | $ (1.06) | $ 4.39 | $ 4.88 |
Diluted | $ 2.20 | $ (0.08) | $ 0.30 | $ (3.52) | $ 1.72 | $ 0.78 | $ 1.51 | $ 0.38 | $ (1.06) | $ 4.37 | $ 4.84 |
Business and Summary of Acco_15
Business and Summary of Accounting Policies - Schedule of Potential Shares of Common Stock Excluded From the Diluted Net (Loss) Income Per Share (Details) - shares shares in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Anti-dilutive shares | 6 | 3 |
Debt - Components of Long-term
Debt - Components of Long-term Debt (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Debt Instrument [Line Items] | ||
Effective interest rate | 5.90% | 4.74% |
Outstanding | $ 2,467 | $ 1,867 |
Unamortized debt discounts and deferred financing costs | (16) | (11) |
Unsecured senior debt | $ 2,451 | 1,856 |
Senior Notes [Member] | Senior Notes Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 3.25% | |
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | |
Outstanding | $ 350 | 350 |
Senior Notes [Member] | Senior Notes 4.78% Due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 4.78% | |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | |
Outstanding | $ 184 | 184 |
Senior Notes [Member] | Senior Notes Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 9.50% | |
Debt Instrument, Interest Rate, Stated Percentage | 9.50% | |
Outstanding | $ 600 | |
Senior Notes [Member] | Senior Notes 4.25% Due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 4.25% | |
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | |
Outstanding | $ 650 | 650 |
Senior Notes [Member] | Senior Notes Due 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 7.36% | |
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | |
Outstanding | $ 42 | 42 |
Senior Notes [Member] | Senior Notes Due 2033 [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 6.05% | |
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |
Outstanding | $ 113 | 113 |
Senior Notes [Member] | Senior Notes Due 2037 [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 6.89% | |
Debt Instrument, Interest Rate, Stated Percentage | 6.88% | |
Outstanding | $ 101 | 101 |
Senior Notes [Member] | Senior Notes Due 2045 [Member] | ||
Debt Instrument [Line Items] | ||
Effective interest rate | 5.57% | |
Debt Instrument, Interest Rate, Stated Percentage | 5.55% | |
Outstanding | $ 427 | $ 427 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Jan. 30, 2021 | Feb. 01, 2020 | |
Trade Letters of Credit and Stand-By Letters of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility additional outstanding amount | $ 8,000,000 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, maturity date description | In March 2020, we fully drew down our $1.0 billion senior unsecured revolver. In April 2020, we replaced and upsized the unsecured credit facility with a $1.5 billion senior secured, asset based revolving credit facility maturing in July 2024. | ||||
Debt instrument, covenant description | The revolver is secured by substantially all of our assets other than real estate, and contains customary events of default and financial, affirmative, and negative covenants, including but not limited to, a springing financial covenant related to our fixed charge coverage ratio and restrictions on indebtedness, liens, investments, asset dispositions, and restricted payments | ||||
Repayment of revolver | $ 1,000,000,000 | ||||
Revolving Credit Facility [Member] | Trade Letters of Credit and Stand-By Letters of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding borrowings amount | $ 31,000,000 | ||||
Senior Secured Asset Based Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Replaced and upsized credit facility | $ 1,500,000,000 | ||||
Debt instrument, maturity date | 2024-07 | ||||
Repayments of secured debt | $ 500,000,000 | ||||
Unsecured Senior Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Fair Value | 2,800,000,000 | $ 2,000,000,000 | |||
Senior Notes [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Drawings from senior unsecured revolver | $ 1,000,000,000 | ||||
Outstanding borrowings amount | $ 0 | $ 0 | |||
9.50 % Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, maturity date | 2025-05 | ||||
Debt instrument, maturity date description | In April 2020, we issued $600 million of 9.50% notes with semi-annual interest payments beginning in November 2020. The notes include coupon rate step ups if our long-term debt is downgraded to below a BBB- credit rating by S&P Global Ratings or Baa3 by Moody’s Investors Service, Inc. The notes mature in May 2025. We used part of the net proceeds from this offering to repay $500 million of the borrowings under our senior secured, asset based revolving credit facility with the remaining net proceeds available for general corporate purposes. | ||||
Notes issued | $ 600,000,000 | ||||
Interest rate on notes | 9.50% | ||||
Debt instrument, frequency of interest payment | semi-annual | ||||
Debt instrument interest payment beginning month and year | 2020-11 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Aug. 01, 2020 | Nov. 02, 2019 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Leases [Line Items] | |||||
Rent expense charged | $ 301 | ||||
Operating lease option to extend reasonably certain of being exercised | $ 3,100 | ||||
Finance lease option to extend reasonably certain of being exercised | 1,600 | ||||
Net proceeds from sale of properties after fees | 197 | ||||
Gain on sales of real estate | $ 127 | 127 | |||
Operating lease liability | 2,786 | ||||
Operating lease right of use asset | 2,398 | $ 2,391 | |||
Gain on extinguishment of debt | $ 9 | $ 9 | $ (63) | ||
Finance lease legally binding payments for contract signed but not yet commenced | $ 7.3 | ||||
San Bernardino [Member] | E-commerce Fulfillment and Distribution Centers [Member] | |||||
Leases [Line Items] | |||||
Proceeds from sale of properties gross | 195 | ||||
Net proceeds from sale of properties after fees | 193 | ||||
Gain on sales of real estate | 127 | ||||
Operating lease liability | 84 | ||||
Operating lease right of use asset | $ 84 | ||||
Store [Member] | |||||
Leases [Line Items] | |||||
Lease extension term | 5 years | ||||
Minimum [Member] | Store [Member] | |||||
Leases [Line Items] | |||||
Lease initial term | 20 years | ||||
Lease renewal term | 4 years | ||||
Maximum [Member] | Store [Member] | |||||
Leases [Line Items] | |||||
Lease initial term | 25 years | ||||
Lease renewal term | 8 years |
Leases - Summary of Operating a
Leases - Summary of Operating and Finance Leases (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Assets | ||
Operating leases | $ 2,398 | $ 2,391 |
Finance leases | $ 708 | $ 672 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | us-gaap:PropertyPlantAndEquipmentNet |
Total operating & finance leases | $ 3,106 | $ 3,063 |
Current liabilities: | ||
Operating leases | 161 | 158 |
Finance leases | $ 76 | $ 88 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | kss:FinanceLeaseLiabilityAndFinancingObligationCurrent | kss:FinanceLeaseLiabilityAndFinancingObligationCurrent |
Noncurrent | ||
Operating leases | $ 2,625 | $ 2,619 |
Finance leases | $ 926 | $ 877 |
Finance Lease Liability Noncurrent Statement Of Financial Position [Extensible List] | kss:FinanceLeaseLiabilityAndFinancingObligationNoncurrent | kss:FinanceLeaseLiabilityAndFinancingObligationNoncurrent |
Total operating & finance leases | $ 3,788 | $ 3,742 |
Income Statement | ||
Operating leases | 314 | 314 |
Finance Leases | ||
Amortization of leased assets | 79 | 72 |
Interest on leased assets | 102 | 98 |
Total operating and finance leases | 495 | 484 |
Cash paid for amounts included in the measurement of leased liabilities | ||
Operating cash flows from operating leases | 305 | 320 |
Operating cash flows from finance leases | 102 | 98 |
Financing cash flows from finance leases | $ 69 | $ 76 |
Leases - Summary of Future Leas
Leases - Summary of Future Lease Payments (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Leases [Abstract] | ||
Operating Leases, 2021 | $ 313 | |
Operating Leases, 2022 | 306 | |
Operating Leases, 2023 | 293 | |
Operating Leases, 2024 | 259 | |
Operating Leases, 2025 | 244 | |
Operating Leases, After 2025 | 3,448 | |
Total lease payments, Operating Leases | 4,863 | |
Amount representing interest, Operating Leases | (2,077) | |
Lease liabilities, Operating Leases | 2,786 | |
Finance Leases, 2021 | 170 | |
Finance Leases, 2022 | 154 | |
Finance Leases, 2023 | 134 | |
Finance Leases, 2024 | 118 | |
Finance Leases, 202 | 113 | |
Finance Leases, After 2025 | 1,804 | |
Total lease payments, Finance Leases | 2,493 | |
Amount representing interest, Finance Leases | (1,491) | |
Lease liabilities, Finance Leases | 1,002 | |
2021 | 483 | |
2022 | 460 | |
2023 | 427 | |
2024 | 377 | |
2025 | 357 | |
After 2025 | 5,252 | |
Total lease payments | 7,356 | |
Amount representing interest | (3,568) | |
Lease liabilities | $ 3,788 | $ 3,742 |
Leases - Summary of Weighted-Av
Leases - Summary of Weighted-Average Remaining Lease Term and Discount Rates (Details) | Jan. 30, 2021 | Feb. 01, 2020 |
Leases [Abstract] | ||
Operating leases, Weighted-average remaining term (years) | 19 years | 20 years |
Finance leases, Weighted-average remaining term (years) | 18 years | 17 years |
Operating leases, Weighted-average discount rate | 6.00% | 6.00% |
Finance leases, Weighted-average discount rate | 10.00% | 11.00% |
Leases - Summary of Financing O
Leases - Summary of Financing Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Nov. 02, 2019 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Feb. 02, 2020 | |
Assets | |||||
Financing obligations | $ 65 | $ 76 | |||
Liabilities | |||||
Current | 39 | 36 | |||
Noncurrent | 461 | 490 | |||
Total financing obligations | 500 | $ 526 | |||
Income Statement | |||||
Amortization of financing obligation assets | 11 | $ 11 | |||
Interest on financing obligations | 36 | 37 | |||
Total financing obligations | 47 | 48 | |||
Cash paid for amounts included in the measurement of financing obligations | |||||
Operating cash flows from financing obligations | 36 | 37 | |||
Financing cash flows from financing obligations | 36 | 37 | |||
Proceeds from financing obligations | $ 9 | 11 | |||
(Gain) on extinguishment of debt | $ (9) | $ (9) | $ 63 |
Leases - Summary of Future Fina
Leases - Summary of Future Financing Obligation Payments (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 02, 2020 |
Leases [Abstract] | ||
2021 | $ 70 | |
2022 | 70 | |
2023 | 67 | |
2024 | 62 | |
2025 | 49 | |
After 2025 | 207 | |
Total lease payments | 525 | |
Non-cash gain on future sale of property | 219 | |
Amount representing interest | (244) | |
Total financing obligations | $ 500 | $ 526 |
Leases - Summary of Weighted-_2
Leases - Summary of Weighted-Average Remaining Term and Discount Rate for Financing Obligations (Details) | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Leases [Abstract] | ||
Weighted-average remaining term (years) | 8 years | 9 years |
Weighted-average discount rate | 7.00% | 7.00% |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |||
Percentage of maximum investment by participant | 99.00% | ||
Increase in percentage of participants 100% contribution fully matched per participants | 5.00% | ||
Non-qualified deferred compensation plan pre-tax compensation deferrals | 75.00% | ||
Deferrals and credited investment returns vesting percentage | 100.00% | ||
Employee stock ownership plan, defined contribution plan, non-qualified deferred compensation plan | $ 50 | $ 51 | $ 50 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Deferred Income Taxes (Details) - USD ($) $ in Millions | Jan. 30, 2021 | Feb. 01, 2020 |
Deferred tax liabilities: | ||
Property and equipment | $ 718 | $ 611 |
Lease assets | 821 | 816 |
Merchandise inventories | 46 | 76 |
Total deferred tax liabilities | 1,585 | 1,503 |
Deferred tax assets: | ||
Lease obligations | 1,093 | 1,110 |
Accrued and other liabilities, including stock-based compensation | 244 | 144 |
Federal benefit on state tax reserves | 30 | 30 |
Valuation allowance | (42) | (23) |
Total deferred tax assets | 1,325 | 1,261 |
Net deferred tax liability | $ 260 | $ 242 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Income Tax Examination [Line Items] | ||||||
Deferred tax asset | $ 1,325 | $ 1,261 | ||||
Income tax benefit due to change in federal income tax rate | $ 474 | |||||
Federal statutory rate | 21.00% | 21.00% | 21.00% | 35.00% | 35.00% | 35.00% |
Income Tax Examination, Penalties and Interest Accrued | $ 42 | $ 35 | ||||
Income Tax Examination, Penalties and Interest Expense | 18 | 4 | $ 5 | |||
Unrecognized tax benefits that would impact effective tax rate | 276 | 112 | ||||
Income taxes payable, current | $ 10 | 48 | ||||
Earliest Tax Year [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Federal NOL tax year | 2015 | |||||
Open Tax Year | 2007 | |||||
Latest Tax Year [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Federal NOL tax year | 2017 | |||||
State and Local [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Operating loss carryforwards, net of valuation allowance | $ 88 | 24 | ||||
State credit carryforwards, net of valuation allowance subject to expiration | $ 6 | |||||
State credit carryforwards, net of valuation allowance | 7 | |||||
State and Local [Member] | Earliest Tax Year [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Open Tax Year | 2016 | |||||
State and Local [Member] | Latest Tax Year [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Open Tax Year | 2020 | |||||
State and Local [Member] | Minimum [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Operating loss carryforwards expiration year | 2021 | |||||
State and Local [Member] | Maximum [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Operating loss carryforwards expiration year | 2041 | |||||
Federal [Member] | Earliest Tax Year [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Open Tax Year | 2012 | |||||
Federal [Member] | Latest Tax Year [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Open Tax Year | 2020 | |||||
Other Long-term Assets [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Deferred tax asset | $ 42 | 18 | ||||
Income Taxes Receivable | 232 | 0 | ||||
Other Current Assets [Member] | ||||||
Income Tax Examination [Line Items] | ||||||
Income Taxes Receivable | $ 610 | $ 15 |
Income Taxes - Schedule of Co_2
Income Taxes - Schedule of Components of Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current federal | $ (439) | $ 128 | $ 229 |
Current state | 38 | 31 | 43 |
Deferred federal | 69 | 60 | (36) |
Deferred state | (51) | (9) | 5 |
(Benefit) provision for income taxes | $ (383) | $ 210 | $ 241 |
Income Taxes - Schedule of Item
Income Taxes - Schedule of Items Affecting Statutory Corporate Tax Rate (Details) | 12 Months Ended | |||||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | Jan. 28, 2017 | Jan. 30, 2016 | Jan. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||||
Federal statutory rate | 21.00% | 21.00% | 21.00% | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit | 2.10% | 3.10% | 3.70% | |||
Federal NOL carryback | 66.00% | |||||
Uncertain tax positions | (19.40%) | 0.60% | (0.20%) | |||
Federal tax credits | 0.40% | (1.20%) | (1.00%) | |||
Other | 0.10% | (0.20%) | (0.30%) | |||
Effective tax rate | 70.20% | 23.30% | 23.20% |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Gross Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 30, 2021 | Feb. 01, 2020 | |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of year | $ 135 | $ 133 |
Increases due to tax positions taken in prior years | 7 | |
Increases due to tax positions taken in current year | 177 | 12 |
Decreases due to tax positions taken in prior years | (9) | (14) |
Decreases due to settlements with taxing authorities | (4) | |
Decreases due to lapse of applicable statute of limitations | (1) | (3) |
Balance at end of year | $ 298 | $ 135 |
Stock-Based Awards - Additional
Stock-Based Awards - Additional Information (Details) | Apr. 18, 2019Installment$ / sharesshares | Jan. 30, 2021USD ($)Installment$ / sharesshares | Feb. 01, 2020USD ($) | Feb. 02, 2019USD ($) |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Authorized | shares | 9,000,000 | |||
Available for grant | shares | 7,100,000 | |||
Number of vesting installments | Installment | 5 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ | $ 0 | $ 1,000,000 | $ 16,000,000 | |
Stock options exercisable, weighted average remaining contractual life | 7 months 6 days | |||
Stock options exercisable, intrinsic value | $ | $ 0 | |||
Closing stock price | $ / shares | $ 44.06 | |||
Aggregate fair value of awards at the time of vesting | $ | $ 56,000,000 | 50,000,000 | 57,000,000 | |
Total share-based compensation expense | $ | 40,000,000 | $ 56,000,000 | $ 87,000,000 | |
Total unrecognized share-based compensation expense for al share-based payment plans | $ | $ 85,000,000 | |||
Weighted average period, years | 1 year 6 months | |||
Amazon [Member] | Commercial Agreement [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares to be purchased warrants | shares | 1,747,441 | |||
Exercise price of warrants | $ / shares | $ 69.68 | |||
Estimated of fair value per warrant | $ / shares | $ 17.52 | |||
Warrants, number of vesting annual installments | Installment | 5 | |||
Warrants vest, beginning date | Jan. 15, 2020 | |||
Warrants vest, second installment date | Jan. 15, 2021 | |||
Number of shares to be purchased warrants,vested | shares | 698,977 | |||
Number of shares to be purchased warrants, Unvested | shares | 1,048,464 | |||
Warrants vest, expiration date | Apr. 18, 2026 | |||
Employee Stock Option [Member] | Director [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Term of options granted, years | 10 years | |||
Non Vested Stock Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
General term of a elected director, years | 5 years | |||
Vesting term, years | 1 year | |||
Prior 2006 [Member] | Employee Stock Option [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Term of options granted, years | 15 years | |||
After 2005 [Member] | Employee Stock Option [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Term of options granted, years | 7 years |
Stock-Based Awards - Summary of
Stock-Based Awards - Summary of Stock Option Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | |||
Balance at beginning of year, shares | 87 | 136 | 1,139 |
Exercised, shares | (46) | (1,001) | |
Forfeited/expired, shares | (51) | (3) | (2) |
Balance at end of year, shares | 36 | 87 | 136 |
Balance at beginning of year, Weighted Average Exercise Price (in dollars per share) | $ 51.78 | $ 51.48 | $ 50.51 |
Exercised, Weighted Average Exercise Price (in dollars per share) | 50.88 | 50.37 | |
Forfeited/expired, Weighted Average Exercise Price (in dollars per share) | 51.53 | 51.50 | 53.52 |
Balance at end of year, Weighted Average Exercise Price (in dollars per share) | $ 52.15 | $ 51.78 | $ 51.48 |
Stock-Based Awards - Summary _2
Stock-Based Awards - Summary of Nonvested Stock Activity (Details) - Restricted Stock [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value [Roll Forward] | |||
Balance at beginning of year, shares | 2,312 | 2,601 | 2,811 |
Granted, shares | 2,640 | 917 | 1,086 |
Vested, shares | (1,053) | (1,004) | (1,202) |
Forfeited, shares | (448) | (202) | (94) |
Balance at end of year, shares | 3,451 | 2,312 | 2,601 |
Balance at beginning of year, Weighted Average Grant Date Fair Value | $ 56.24 | $ 51.90 | $ 45.60 |
Granted, Weighted Average Grant Date Fair Value | 20.46 | 63.57 | 63.25 |
Vested, Weighted Average Grant Date Fair Value | 52.83 | 50.06 | 47.69 |
Forfeited, Weighted Average Grant Date Fair Value | 39.21 | 57.71 | 49.08 |
Balance at end of year, Weighted Average Grant Date Fair Value | $ 32.09 | $ 56.24 | $ 51.90 |
Stock-Based Awards - Summary _3
Stock-Based Awards - Summary of Performance Share Units (Details) - Performance Share Unit Activity [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Balance at beginning of year, shares | 1,274 | 1,046 | 724 |
Granted, shares | 699 | 665 | 365 |
Vested, shares | (826) | (336) | (38) |
Forfeited, shares | (110) | (101) | (5) |
Balance at end of year, shares | 1,037 | 1,274 | 1,046 |
Balance at beginning of year, Weighted Average Grant Date Fair Value | $ 61.55 | $ 52.08 | $ 46.07 |
Granted, Weighted Average Grant Date Fair Value | 19.76 | 69.30 | 66.66 |
Vested, Weighted Average Grant Date Fair Value | 42.72 | 46.87 | 78.35 |
Forfeited, Weighted Average Grant Date Fair Value | 46.79 | 63.41 | 46.91 |
Balance at end of year, Weighted Average Grant Date Fair Value | $ 49.95 | $ 61.55 | $ 52.08 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2021 | Oct. 31, 2020 | Aug. 01, 2020 | May 02, 2020 | Feb. 01, 2020 | Nov. 02, 2019 | Aug. 03, 2019 | May 04, 2019 | Jan. 30, 2021 | Feb. 01, 2020 | Feb. 02, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenue | $ 6,141 | $ 3,979 | $ 3,407 | $ 2,428 | $ 6,832 | $ 4,625 | $ 4,430 | $ 4,087 | $ 15,955 | $ 19,974 | $ 20,229 |
Cost of merchandise sold | 4,000 | 2,424 | 2,149 | 1,787 | 4,400 | 2,775 | 2,550 | 2,415 | 10,360 | 12,140 | 12,199 |
Selling, general, and administrative | 1,603 | 1,302 | 1,050 | 1,066 | 1,742 | 1,419 | 1,269 | 1,275 | 5,021 | 5,705 | 5,601 |
Impairments, store closing, and other costs | 4 | 21 | (2) | 66 | 57 | 7 | 49 | 89 | 113 | 104 | |
(Gain) on sale of real estate | (127) | (127) | |||||||||
(Gain) loss on extinguishment of debt | (9) | (9) | 63 | ||||||||
Net (loss) income | $ 343 | $ (12) | $ 47 | $ (541) | $ 265 | $ 123 | $ 241 | $ 62 | $ (163) | $ 691 | $ 801 |
Basic shares | 154 | 154 | 154 | 154 | 154 | 156 | 159 | 161 | 154 | 157 | 164 |
Basic net (loss) income per share | $ 2.23 | $ (0.08) | $ 0.31 | $ (3.52) | $ 1.72 | $ 0.79 | $ 1.52 | $ 0.38 | $ (1.06) | $ 4.39 | $ 4.88 |
Diluted shares | 156 | 154 | 155 | 154 | 154 | 157 | 159 | 162 | 154 | 158 | 165 |
Diluted net (loss) income per share | $ 2.20 | $ (0.08) | $ 0.30 | $ (3.52) | $ 1.72 | $ 0.78 | $ 1.51 | $ 0.38 | $ (1.06) | $ 4.37 | $ 4.84 |