Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
In Billions, except Share data, unless otherwise specified | Jan. 31, 2015 | Mar. 11, 2015 |
Document and Entity Information [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Jan-15 | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | FY | |
Trading Symbol | kss | |
Entity Registrant Name | KOHLS CORP | |
Entity Central Index Key | 885639 | |
Current Fiscal Year End Date | -30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 202,802,328 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Public Float | $11 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,407 | $971 |
Merchandise inventories | 3,814 | 3,874 |
Deferred income taxes | 116 | 142 |
Other | 361 | 327 |
Total current assets | 5,698 | 5,314 |
Property and equipment, net | 8,515 | 8,745 |
Other assets | 218 | 298 |
Total assets | 14,431 | 14,357 |
Current liabilities: | ||
Accounts payable | 1,511 | 1,365 |
Accrued liabilities | 1,160 | 1,138 |
Income taxes payable | 78 | 116 |
Current portion of capital lease and financing obligations | 110 | 139 |
Total current liabilities | 2,859 | 2,758 |
Long-term debt | 2,793 | 2,792 |
Capital lease and financing obligations | 1,858 | 1,930 |
Deferred income taxes | 368 | 339 |
Other long-term liabilities | 562 | 560 |
Shareholders’ equity: | ||
Common stock - 367 and 364 million shares issued | 4 | 4 |
Paid-in capital | 2,743 | 2,598 |
Treasury stock, at cost, 166 and 153 million shares | -8,744 | -8,052 |
Accumulated other comprehensive loss | -20 | -34 |
Retained earnings | 12,008 | 11,462 |
Total shareholders’ equity | 5,991 | 5,978 |
Total liabilities and shareholders’ equity | $14,431 | $14,357 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Common stock, shares issued | 367 | 364 |
Treasury stock, shares | 166 | 153 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Net sales | $19,023 | $19,031 | $19,279 |
Cost of merchandise sold | 12,098 | 12,087 | 12,289 |
Gross margin | 6,925 | 6,944 | 6,990 |
Operating expenses: | |||
Selling, general and administrative | 4,350 | 4,313 | 4,267 |
Depreciation and amortization | 886 | 889 | 833 |
Operating income | 1,689 | 1,742 | 1,890 |
Interest expense, net | 340 | 338 | 329 |
Income before income taxes | 1,349 | 1,404 | 1,561 |
Provision for income taxes | 482 | 515 | 575 |
Net income | $867 | $889 | $986 |
Net income per share: | |||
Basic (in dollars per share) | $4.28 | $4.08 | $4.19 |
Diluted (in dollars per share) | $4.24 | $4.05 | $4.17 |
Common Stock, Dividends, Per Share, Declared | $1.56 | $1.40 | $1.28 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Statement of Comprehensive Income [Abstract] | |||
Comprehensive income (loss) | $867 | $889 | $986 |
Other comprehensive income (loss), net of tax: | |||
Unrealized gains on investments | 11 | 8 | 5 |
Interest rate derivatives: | |||
Reclassification adjustment for interest expense on interest rate derivatives included in net income | 3 | 3 | 3 |
Other comprehensive income | 14 | 11 | 8 |
Comprehensive income | $881 | $900 | $994 |
CONSOLIDATED_STATEMENT_OF_CHAN
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock | Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings [Member] |
In Millions | ||||||
Beginning Balance at Jan. 28, 2012 | $6,508 | $4 | $2,339 | ($5,977) | ($53) | $10,195 |
Beginning Balance (in shares) at Jan. 28, 2012 | 358 | -111 | ||||
Comprehensive income (loss) | 994 | 8 | ||||
Net Income (Loss) Attributable to Parent | 986 | |||||
Stock options and awards, (in shares) | 2 | |||||
Stock options and awards, net of tax | 106 | 115 | -9 | |||
Dividends paid ($1.40 in 2013, $1.28 in 2012, and $1.00 in 2011) per common share) | -300 | 3 | -303 | |||
Treasury stock purchases, (in shares) | -27 | |||||
Treasury stock purchases | -1,260 | -1,260 | ||||
Ending Balance at Feb. 02, 2013 | 6,048 | 4 | 2,454 | -7,243 | -45 | 10,878 |
Ending Balance (in shares) at Feb. 02, 2013 | 360 | -138 | ||||
Beginning Balance at Oct. 27, 2012 | ||||||
Dividends paid ($1.40 in 2013, $1.28 in 2012, and $1.00 in 2011) per common share) | 0 | |||||
Ending Balance at Feb. 02, 2013 | 6,048 | 4 | 2,454 | -7,243 | -45 | 10,878 |
Beginning Balance (in shares) at Feb. 02, 2013 | 360 | -138 | ||||
Comprehensive income (loss) | 900 | 11 | ||||
Net Income (Loss) Attributable to Parent | 889 | |||||
Stock options and awards, (in shares) | 4 | |||||
Stock options and awards, net of tax | 131 | 144 | -13 | |||
Dividends paid ($1.40 in 2013, $1.28 in 2012, and $1.00 in 2011) per common share) | -302 | 0 | 3 | -305 | ||
Treasury stock purchases, (in shares) | -15 | |||||
Treasury stock purchases | -799 | -799 | ||||
Ending Balance at Feb. 01, 2014 | 5,978 | 4 | 2,598 | -8,052 | -34 | 11,462 |
Ending Balance (in shares) at Feb. 01, 2014 | 364 | -153 | ||||
Comprehensive income (loss) | 881 | 14 | ||||
Net Income (Loss) Attributable to Parent | 867 | |||||
Stock options and awards, (in shares) | 3 | |||||
Stock options and awards, net of tax | 126 | 145 | -19 | |||
Dividends paid ($1.40 in 2013, $1.28 in 2012, and $1.00 in 2011) per common share) | -317 | 4 | -321 | |||
Treasury stock purchases, (in shares) | -13 | |||||
Treasury stock purchases | -677 | -677 | ||||
Ending Balance at Jan. 31, 2015 | $5,991 | $4 | $2,743 | ($8,744) | ($20) | $12,008 |
Ending Balance (in shares) at Jan. 31, 2015 | 367 | -166 |
CONSOLIDATED_STATEMENT_OF_CHAN1
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid per share | $1.56 | $1.40 | $1.28 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Operating activities | |||
Net income | $867 | $889 | $986 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 886 | 889 | 833 |
Share-based compensation | 48 | 55 | 50 |
Excess tax benefits from share-based compensation | -3 | -3 | -4 |
Deferred income taxes | 46 | -11 | -79 |
Other non-cash expenses, net | 31 | 43 | 29 |
Changes in operating assets and liabilities: | |||
Merchandise inventories | 68 | -116 | -523 |
Other current and long-term assets | -33 | -19 | -37 |
Accounts payable | 146 | 58 | 74 |
Accrued and other long-term liabilities | 33 | 149 | -60 |
Income taxes | -65 | -50 | -4 |
Net cash provided by operating activities | 2,024 | 1,884 | 1,265 |
Investing activities | |||
Acquisition of property and equipment | -682 | -643 | -785 |
Sales of investments in auction rate securities | 82 | 1 | 109 |
Other | 7 | 19 | 16 |
Net cash used in investing activities | -593 | -623 | -660 |
Financing activities | |||
Treasury stock purchases | -677 | -799 | -1,284 |
Shares withheld for taxes on vested restricted shares | -19 | -13 | -9 |
Dividends paid | -317 | -302 | -300 |
Proceeds from issuance of debt, net of deferred financing costs | 0 | 296 | 347 |
Proceeds from financing obligations | 6 | 1 | 12 |
Capital lease and financing obligation payments | -114 | -115 | -111 |
Proceeds from stock option exercises | 123 | 102 | 68 |
Excess tax benefits from share-based compensation | 3 | 3 | 4 |
Net cash used in financing activities | -995 | -827 | -1,273 |
Net increase (decrease) in cash and cash equivalents | 436 | 434 | -668 |
Cash and cash equivalents at beginning of period | 971 | 537 | |
Cash and cash equivalents at end of period | 1,407 | 971 | |
Supplemental information: | |||
Interest paid, net of capitalized interest | 329 | 326 | 318 |
Income taxes paid | 502 | 561 | 654 |
Non-Cash Investing and Financing Activities | |||
Property and equipment acquired through capital lease and financing obligations | $41 | $121 | $63 |
Business_and_Summary_of_Accoun
Business and Summary of Accounting Policies | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||
Business and Summary of Accounting Policies | Business and Summary of Accounting Policies | |||||||||||
Business | ||||||||||||
As of January 31, 2015, we operated 1,162 department stores in 49 states and a website (www.Kohls.com) that sell moderately-priced private label, exclusive and national brand apparel, footwear, accessories, beauty and home products. Our stores generally carry a consistent merchandise assortment with some differences attributable to regional preferences. Our website includes merchandise which is available in our stores, as well as merchandise which is available only on-line. | ||||||||||||
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 Department Stores, 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 31st each year. Unless otherwise stated, references to years in this report relate to fiscal years rather than to calendar years. The following fiscal periods are presented in this report. | ||||||||||||
Fiscal year | Ended | Number of | ||||||||||
Weeks | ||||||||||||
2014 | 31-Jan-15 | 52 | ||||||||||
2013 | February 1, 2014 | 52 | ||||||||||
2012 | February 2, 2013 | 53 | ||||||||||
Use of Estimates | ||||||||||||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. 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 $95 million at January 31, 2015 and $89 million at February 1, 2014. | ||||||||||||
Merchandise Inventories | ||||||||||||
Merchandise inventories are valued at the lower of cost or market with cost determined on the first-in, first-out (“FIFO”) basis 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 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 currently taken as a reduction of the retail value of inventory. We record an additional reserve if the future estimated selling price is less than cost. | ||||||||||||
1. Business and Summary of Accounting Policies (continued) | ||||||||||||
Property and Equipment | ||||||||||||
Property and equipment consist of the following: | ||||||||||||
Jan 31, | Feb 1, | |||||||||||
2015 | 2014 | |||||||||||
(Dollars In Millions) | ||||||||||||
Land | $ | 1,103 | $ | 1,095 | ||||||||
Buildings and improvements: | ||||||||||||
Owned | 7,844 | 7,713 | ||||||||||
Leased | 1,848 | 1,845 | ||||||||||
Store fixtures and equipment | 2,032 | 2,147 | ||||||||||
Computer hardware and software | 1,368 | 1,033 | ||||||||||
Construction in progress | 210 | 291 | ||||||||||
Total property and equipment, at cost | 14,405 | 14,124 | ||||||||||
Less accumulated depreciation | (5,890 | ) | (5,379 | ) | ||||||||
Property and equipment, net | $ | 8,515 | $ | 8,745 | ||||||||
Construction in progress includes land, building and improvements, and computer hardware and software which is not ready for its intended use. | ||||||||||||
Property and equipment is recorded at cost, less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. 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. | ||||||||||||
The annual provisions for depreciation and amortization generally use the following ranges of useful lives: | ||||||||||||
Buildings and improvements | 5-40 years | |||||||||||
Store fixtures and equipment | 3-15 years | |||||||||||
Computer hardware and software | 3-8 years | |||||||||||
Long-Lived Assets | ||||||||||||
All property and equipment and other long-lived assets are reviewed for potential impairment 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. No impairments were recorded in 2014, 2013, or 2012 as a result of the tests performed. | ||||||||||||
Accrued Liabilities | ||||||||||||
Accrued liabilities consist of the following: | ||||||||||||
Jan 31, | Feb 1, | |||||||||||
2015 | 2014 | |||||||||||
(Dollars In Millions) | ||||||||||||
Gift cards and merchandise return cards | $ | 307 | $ | 296 | ||||||||
Payroll and related fringe benefits | 135 | 112 | ||||||||||
Sales, property and use taxes | 185 | 166 | ||||||||||
Credit card liabilities | 106 | 109 | ||||||||||
Other | 427 | 455 | ||||||||||
Accrued liabilities | $ | 1,160 | $ | 1,138 | ||||||||
1. Business and Summary of Accounting Policies (continued) | ||||||||||||
Self-Insurance | ||||||||||||
We use a combination of insurance and self-insurance for a number of risks including workers’ compensation, general liability, and employee-related health care benefits, a portion of which is paid by our associates. Liabilities associated with these losses include estimates of both reported losses and losses incurred but not yet reported. We use a third-party actuary, which considers historical claims experience, demographic factors, severity factors and other actuarial assumptions, to estimate the liabilities associated with these risks. Total estimated liabilities for workers’ compensation, general liability and employee-related health benefits were approximately $46 million at January 31, 2015 and $47 million at February 1, 2014. Although these amounts are actuarially determined based on analysis of historical trends, the amounts that we will ultimately disburse could differ from these estimates. | ||||||||||||
As of January 1, 2015, our self insurance exposure for property losses differs based on the type of claim. For catastrophic claims like earthquakes, floods and windstorms, depending on the location, we are self insured for 2-5% of the insurance claim. For other standard claims like fire and building damages, we are self insured for the first $250,000 of property loss claims. | ||||||||||||
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. | ||||||||||||
Accumulated Other Comprehensive Loss and Other Comprehensive Income | ||||||||||||
Accumulated other comprehensive loss consists of the following: | ||||||||||||
Unrealized | Loss on | Accumulated | ||||||||||
Gains | Interest | Other | ||||||||||
(Losses) on | Rate | Comprehensive | ||||||||||
Investments | Derivatives | Loss | ||||||||||
(Dollars In Millions) | ||||||||||||
Balance at February 2, 2013 | $ | (19 | ) | $ | (26 | ) | $ | (45 | ) | |||
Other comprehensive income | 8 | 3 | 11 | |||||||||
Balance at February 1, 2014 | (11 | ) | (23 | ) | (34 | ) | ||||||
Other comprehensive income | 11 | 3 | 14 | |||||||||
Balance at January 31, 2015 | $ | — | $ | (20 | ) | $ | (20 | ) | ||||
The tax effects of each component of other comprehensive income are as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Dollars In Millions) | ||||||||||||
Unrealized gains on investments: | ||||||||||||
Before-tax amounts | $ | 18 | $ | 12 | $ | 9 | ||||||
Tax expense | (7 | ) | (4 | ) | (4 | ) | ||||||
After-tax amounts | 11 | 8 | 5 | |||||||||
Interest rate derivatives: | ||||||||||||
Before-tax amounts | 5 | 5 | 5 | |||||||||
Tax expense | (2 | ) | (2 | ) | (2 | ) | ||||||
After-tax amounts | 3 | 3 | 3 | |||||||||
Other comprehensive income | $ | 14 | $ | 11 | $ | 8 | ||||||
1. Business and Summary of Accounting Policies (continued) | ||||||||||||
Revenue Recognition | ||||||||||||
Revenue from the sale of merchandise at our stores is recognized at the time of sale, net of any returns. Sales of merchandise shipped to our customers are recorded based on estimated receipt of merchandise by the customer. Net sales do not include sales tax as we are considered a pass-through conduit for collecting and remitting sales taxes. | ||||||||||||
Revenue from Kohl's gift card sales is recognized when the gift card is redeemed. Gift card breakage revenue is based on historical redemption patterns and represents the balance of gift cards for which we believe the likelihood of redemption by a customer is remote. | ||||||||||||
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 | • Compensation and benefit costs including: | |||||||||||
• Stores | ||||||||||||
• Inventory shrink | • Corporate headquarters, including buying and merchandising | |||||||||||
• Distribution centers | ||||||||||||
• Markdowns | ||||||||||||
• Occupancy and operating costs of our retail, distribution and corporate facilities | ||||||||||||
• Freight expenses associated with moving merchandise from our vendors to our distribution centers | ||||||||||||
• Net revenues from the Kohl’s credit card program | ||||||||||||
• Shipping and handling expenses of sales generated on-line | ||||||||||||
• Freight expenses associated with moving merchandise from our distribution centers to our retail stores and between distribution and retail facilities | ||||||||||||
• Terms cash discount | ||||||||||||
• Advertising expenses, offset by vendor payments for reimbursement of specific, incremental and identifiable costs | ||||||||||||
• Other administrative 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 advertising support. The vendor consideration is recorded as earned either as a reduction of inventory costs or Selling, General and Administrative (“SG&A”) expenses based on the application of Accounting Standards Codification (“ASC”) No. 605, Subtopic 50, “Customer Payments and Incentives.” Promotional and advertising allowances are intended to offset our advertising costs to promote vendors’ merchandise. Markdown allowances and volume rebates are recorded as a reduction of inventory costs. | ||||||||||||
Loyalty Program | ||||||||||||
We currently operate the Kohl's Yes2You Rewards program in which customers earn points based on their spending and other promotional activities. Upon accumulating certain point levels, customers receive rewards to apply to future purchases. We accrue the cost of anticipated redemptions related to the program when the points are earned at the initial purchase. The costs of the program are recorded in cost of merchandise sold. | ||||||||||||
1. Business and Summary of Accounting Policies (continued) | ||||||||||||
Fair Value | ||||||||||||
ASC No. 820, “Fair Value Measurements and Disclosures,” requires fair value measurements 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. | |||||||||||
We carry our current assets and liabilities at cost, which approximate fair value. | ||||||||||||
Leases | ||||||||||||
We lease certain property and equipment used in our operations. | ||||||||||||
We are often involved extensively in the construction of leased stores. In many cases, we are responsible for construction cost over runs or non-standard tenant improvements (e.g. roof or HVAC systems). As a result of this involvement, we are deemed the “owner” for accounting purposes during the construction period, so are required to capitalize the construction costs on our Balance Sheet. Upon completion of the project, we perform a sale-leaseback analysis pursuant to ASC 840, “Leases,” to determine if we can remove the assets from our Balance Sheet. In many of our leases, we are reimbursed a portion of the construction costs via adjusted rental payments and/or cash payments or have terms which fix the rental payments for a significant percentage of the leased asset’s economic life. These items generally are considered “continuing involvement” which precludes us from derecognizing the assets from our Balance Sheet when construction is complete. In conjunction with these leases, we also record financing obligations equal to the cash proceeds or fair market value of the assets received from the landlord. At the end of the lease term, including exercise of any renewal options, the net remaining financing obligation over the net carrying value of the fixed asset will be recognized as a non-cash gain on sale of the property. We do not report rent expense for the properties which are owned for accounting purposes. Rather, rental payments under the lease are recognized as a reduction of the financing obligation and interest expense. | ||||||||||||
Some of our property and equipment is held under capital leases. These assets are included in property and equipment and depreciated over the term of the lease. We do not report rent expense for capital leases. Rather, rental payments under the lease are recognized as a reduction of the capital lease obligation and interest expense. | ||||||||||||
All other leases are considered operating leases in accordance with ASC 840. Assets subject to an operating lease and the related lease payments are not recorded on our balance sheet. Rent expense is recognized on a straight-line basis over the expected lease term. | ||||||||||||
The lease term for all types of leases begins on the date we become legally obligated for the rent payments or we take possession of the building or land, whichever is earlier. The lease term includes cancelable option periods where failure to exercise such options would result in an economic penalty. Failure to exercise such options would result in the recognition of accelerated depreciation expense of the related assets. | ||||||||||||
1. Business and Summary of Accounting Policies (continued) | ||||||||||||
Advertising | ||||||||||||
Advertising costs, which include primarily television and radio broadcast, direct mail, digital, and newspaper circulars, are expensed when the advertisement is first seen. Advertising costs, net of related vendor allowances, were as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Dollars In Millions) | ||||||||||||
Gross advertising costs | $ | 1,189 | $ | 1,185 | $ | 1,163 | ||||||
Vendor allowances | (165 | ) | (172 | ) | (170 | ) | ||||||
Net advertising costs | $ | 1,024 | $ | 1,013 | $ | 993 | ||||||
Net advertising costs as a percent of net sales | 5.4 | % | 5.3 | % | 5.2 | % | ||||||
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 Income Per Share | ||||||||||||
Basic net income per share is net income divided by the average number of common shares outstanding during the period. Diluted net income per share includes incremental shares assumed to be issued upon exercise of stock options. | ||||||||||||
The information required to compute basic and diluted net income per share is as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In Millions, Except per Share Data) | ||||||||||||
Numerator—net income | $ | 867 | $ | 889 | $ | 986 | ||||||
Denominator—weighted average shares | ||||||||||||
Basic | 203 | 218 | 235 | |||||||||
Impact of dilutive employee stock options (a) | 1 | 2 | 2 | |||||||||
Diluted | 204 | 220 | 237 | |||||||||
Net income per share: | ||||||||||||
Basic | $ | 4.28 | $ | 4.08 | $ | 4.19 | ||||||
Diluted | $ | 4.24 | $ | 4.05 | $ | 4.17 | ||||||
(a) | Excludes 3 million share-based awards for 2014, 10 million share-based awards for 2013 and 14 million share-based awards for 2012 as the impact of such awards was antidilutive. | |||||||||||
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 Not Yet Adopted | ||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We are required to adopt the new pronouncement in the first quarter of fiscal 2017 using one of two retrospective application methods. We are evaluating the application method and the impact of this new statement on our financial statements. |
Debt
Debt | 12 Months Ended | |||||||||||||
Jan. 31, 2015 | ||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||
Debt | Debt | |||||||||||||
Long-term debt consists of the following unsecured senior debt: | ||||||||||||||
Outstanding | ||||||||||||||
Maturity | Effective | Coupon Rate | 31-Jan-15 | 1-Feb-14 | ||||||||||
Rate | ||||||||||||||
(Dollars in Millions) | ||||||||||||||
2017 | 6.31 | % | 6.25 | % | $ | 650 | $ | 650 | ||||||
2021 | 4.81 | % | 4 | % | 650 | 650 | ||||||||
2023 | 3.25 | % | 3.25 | % | 350 | 350 | ||||||||
2023 | 4.78 | % | 4.75 | % | 300 | 300 | ||||||||
2029 | 7.36 | % | 7.25 | % | 200 | 200 | ||||||||
2033 | 6.05 | % | 6 | % | 300 | 300 | ||||||||
2037 | 6.89 | % | 6.88 | % | 350 | 350 | ||||||||
5.54 | % | 2,800 | 2,800 | |||||||||||
Unamortized debt discount | (7 | ) | (8 | ) | ||||||||||
Long-term debt | $ | 2,793 | $ | 2,792 | ||||||||||
Based on quoted market prices (Level 1 per ASC No. 820, "Fair Value Measurements and Disclosures"), the estimated fair value of our long-term debt was $3.1 billion at January 31, 2015 and $3.0 billion at February 1, 2014. | ||||||||||||||
We have various facilities upon which we may draw funds, including a 5-year, $1 billion senior unsecured revolving credit facility which matures in June 2018. There were no draws on these facilities during 2014 or 2013. | ||||||||||||||
Our various debt agreements contain covenants including limitations on additional indebtedness and certain financial tests. As of January 31, 2015, we were in compliance with all covenants of the various debt agreements. | ||||||||||||||
We also have outstanding trade letters of credit and stand-by letters of credit totaling approximately $52 million at January 31, 2015, issued under uncommitted lines with two banks. |
Lease_Commitments
Lease Commitments | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Leases [Abstract] | ||||||||
Lease Commitments | Lease Commitments | |||||||
Rent expense charged to operations was $277 million for 2014, $270 million for 2013, and $265 million for 2012. In addition to rent payments, we are often required to pay real estate taxes, insurance and maintenance costs on leased properties. These items are not included in the future minimum lease payments listed below. Many store leases include multiple renewal options, exercisable at our option, that generally range from four to eight additional five-year periods. | ||||||||
Future minimum lease payments at January 31, 2015 were as follows: | ||||||||
Capital | Operating | |||||||
Lease | Leases | |||||||
and | ||||||||
Financing Obligations | ||||||||
(Dollars In Millions) | ||||||||
Fiscal year: | ||||||||
2015 | $ | 279 | $ | 246 | ||||
2016 | 282 | 242 | ||||||
2017 | 271 | 239 | ||||||
2018 | 255 | 240 | ||||||
2019 | 238 | 236 | ||||||
Thereafter | 2,866 | 4,597 | ||||||
4,191 | $ | 5,800 | ||||||
Non-cash gain on future sale of property | 458 | |||||||
Amount representing interest | (2,681 | ) | ||||||
Present value of lease payments | $ | 1,968 | ||||||
Benefit_Plans
Benefit Plans | 12 Months Ended |
Jan. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | 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 100% of their base compensation, subject to certain statutory limits. We match 100% of the first 5% of each participant’s contribution. | |
We also have an Employee Stock Ownership Plan ("ESOP") for the benefit of a group of our non-management associates. Contributions are made at the discretion of the Board of Directors. Shares of our stock held by the ESOP are included as shares outstanding for purposes of the net income per share computations. | |
We also offer a non-qualified deferred compensation plan to a group of executives which provides for pre-tax compensation deferrals up to 100% of salary and/or bonus. Deferrals and credited investment returns are 100% vested. | |
The total costs for these benefit plans were $43 million for 2014, $49 million for 2013, and $53 million for 2012. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
Deferred income taxes consist of the following: | ||||||||||||
Jan 31, | Feb 1, | |||||||||||
2015 | 2014 | |||||||||||
(Dollars In Millions) | ||||||||||||
Deferred tax liabilities: | ||||||||||||
Property and equipment | $ | 1,385 | $ | 1,416 | ||||||||
Deferred tax assets: | ||||||||||||
Merchandise inventories | 24 | 24 | ||||||||||
Accrued and other liabilities, including stock options | 182 | 223 | ||||||||||
Capital lease and financing obligations | 773 | 813 | ||||||||||
Accrued step rent liability | 100 | 94 | ||||||||||
Unrealized loss on investments | — | 7 | ||||||||||
Unrealized loss on interest rate swap | 13 | 15 | ||||||||||
Federal benefit on state tax reserves | 41 | 43 | ||||||||||
1,133 | 1,219 | |||||||||||
Net deferred tax liability | $ | 252 | $ | 197 | ||||||||
The components of the provision for income taxes were as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(Dollars In Millions) | ||||||||||||
Current federal | $ | 400 | $ | 473 | $ | 592 | ||||||
Current state | 36 | 45 | 60 | |||||||||
Deferred federal | 48 | 6 | (68 | ) | ||||||||
Deferred state | (2 | ) | (9 | ) | (9 | ) | ||||||
$ | 482 | $ | 515 | $ | 575 | |||||||
The provision for income taxes differs from the amount that would be provided by applying the statutory U.S. corporate tax rate due to the following items: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Provision at statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal tax benefit | 1.3 | 2.2 | 2.2 | |||||||||
Tax-exempt interest income | — | (0.2 | ) | (0.1 | ) | |||||||
Other federal tax credits | (0.6 | ) | (0.3 | ) | (0.3 | ) | ||||||
Provision for income taxes | 35.7 | % | 36.7 | % | 36.8 | % | ||||||
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 only federal returns subject to examination are for the 2008 through 2014 tax years. State returns subject to examination vary depending upon the state. Generally, the 2011 through 2014 | ||||||||||||
5. Income Taxes (continued) | ||||||||||||
tax years are subject to state examination. The earliest open period is 2003. 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. | ||||||||||||
A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows: | ||||||||||||
2014 | 2013 | |||||||||||
(Dollars In Millions) | ||||||||||||
Balance at beginning of year | $ | 125 | $ | 108 | ||||||||
Increases due to: | ||||||||||||
Tax positions taken in prior years | — | 6 | ||||||||||
Tax positions taken in current year | 21 | 21 | ||||||||||
Decreases due to: | ||||||||||||
Tax positions taken in prior years | (16 | ) | (4 | ) | ||||||||
Settlements with taxing authorities | (2 | ) | (3 | ) | ||||||||
Lapse of applicable statute of limitations | (5 | ) | (3 | ) | ||||||||
Balance at end of year | $ | 123 | $ | 125 | ||||||||
Not included in the unrecognized tax benefits reconciliation above are gross unrecognized accrued interest and penalties of $23 million at January 31, 2015 and $21 million at February 1, 2014. Interest and penalty expense was $2 million for 2014 and $3 million for 2013. | ||||||||||||
Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $89 million as of January 31, 2015 and $88 million as of February 1, 2014. | ||||||||||||
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 recorded on our balance sheet for current income taxes. The receivables are recorded within other current assets in our balance sheet. The total of the receivables was $25 million as of January 31, 2015. To conform to the current year presentation, we have reclassed $22 million from income taxes payable to other current assets for February 1, 2014. | ||||||||||||
To conform to the current year presentation on our balance sheet, we have reclassed $43 million of the federal income taxes receivable related to state tax reserves and interest from long-term other assets to deferred income taxes on the balance sheet. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation | |||||||||||||||||||||
We currently grant share-based compensation pursuant to the Kohl’s Corporation 2010 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 31, 2015, there were 18.5 million shares authorized and 11.5 million shares available for grant under the 2010 Long-Term Compensation Plan. Options and nonvested stock that are surrendered or terminated without issuance of shares are available for future grants. | ||||||||||||||||||||||
Annual grants of stock options and nonvested stock 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. We also have outstanding options which were granted under previous compensation plans. | ||||||||||||||||||||||
Stock options | ||||||||||||||||||||||
The majority of stock options granted to employees typically vest in five equal annual installments. Outstanding options granted to employees after 2005 have a term of seven years. Outstanding options granted to employees prior to 2006 have a term of up to 15 years. Options granted to directors have a term of 10 years. | ||||||||||||||||||||||
6. Stock-Based Compensation (continued) | ||||||||||||||||||||||
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 is estimated using a Black-Scholes option valuation model and the following assumptions as of the grant date: | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Dividend yield | 2.80% | 2.90% | 2.60% | |||||||||||||||||||
Volatility | 31.00% | 32.70% | 33.70% | |||||||||||||||||||
Risk-free interest rate | 1.70% | 0.90% | 1.00% | |||||||||||||||||||
Expected life in years | 5.5 | 5.5 | 5.5 | |||||||||||||||||||
Weighted average fair value at grant date | $12.23 | $10.68 | $11.79 | |||||||||||||||||||
The dividend yield represents the expected dividends on our stock for the expected term of the option. The expected volatility assumption is based on the historical volatility of our stock. The risk-free interest rate for periods within the life of the option is based on a blend of U.S. Treasury bond rates. We use historical data to estimate the expected life of the option and the period of time that options granted are expected to be outstanding. | ||||||||||||||||||||||
The following table summarizes our stock option activity for 2014, 2013, and 2012: | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||
Average | Average | Average | ||||||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||||||
Price | Price | Price | ||||||||||||||||||||
(Shares in Thousands) | ||||||||||||||||||||||
Balance at beginning of year | 11,375 | $ | 56.05 | 15,212 | $ | 53.96 | 16,564 | $ | 53.41 | |||||||||||||
Granted | 186 | 54.69 | 575 | 47.86 | 1,458 | 49 | ||||||||||||||||
Exercised | (2,647 | ) | 46.87 | (2,494 | ) | 41.02 | (1,718 | ) | 40.01 | |||||||||||||
Forfeited/expired | (2,703 | ) | 72.21 | (1,918 | ) | 56.59 | (1,092 | ) | 60.93 | |||||||||||||
Balance at end of year | 6,211 | $ | 52.95 | 11,375 | $ | 56.05 | 15,212 | $ | 53.96 | |||||||||||||
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 $30 million in both 2014 and 2013 and $20 million in 2012. | ||||||||||||||||||||||
Additional information related to stock options outstanding and exercisable at January 31, 2015, segregated by exercise price range, is summarized below: | ||||||||||||||||||||||
Stock Options Outstanding | Stock Options Exercisable | |||||||||||||||||||||
Range of Exercise Prices | Shares | Weighted | Weighted | Shares | Weighted | Weighted | ||||||||||||||||
Average | Average | Average | Average | |||||||||||||||||||
Remaining | Exercise | Remaining | Exercise | |||||||||||||||||||
Contractual | Price | Contractual | Price | |||||||||||||||||||
Life (in | Life (in | |||||||||||||||||||||
years) | years) | |||||||||||||||||||||
(Shares in Thousands) | ||||||||||||||||||||||
$ 29.09 – $ 46.00 | 823 | 1.9 | $ | 42.27 | 701 | 1.3 | $ | 41.84 | ||||||||||||||
$ 46.01 – $ 49.00 | 1,180 | 4.4 | 47.6 | 541 | 4.6 | 47.46 | ||||||||||||||||
$ 49.01 – $ 51.00 | 1,081 | 2.9 | 50.06 | 910 | 2.6 | 50.06 | ||||||||||||||||
$ 51.01 – $ 55.00 | 1,164 | 3.9 | 52.75 | 592 | 3.6 | 52.9 | ||||||||||||||||
$ 55.01 – $ 65.00 | 954 | 2.7 | 57.52 | 766 | 2.4 | 57.86 | ||||||||||||||||
$ 65.01 – $ 77.62 | 1,009 | 1.6 | 66.95 | 1,009 | 1.6 | 66.95 | ||||||||||||||||
6,211 | 3 | $ | 52.95 | 4,519 | 2.5 | $ | 53.94 | |||||||||||||||
Intrinsic value (in thousands) | $ | 49,754 | $ | 33,849 | ||||||||||||||||||
The intrinsic value of outstanding and exercisable stock options represents the excess of our closing stock price on January 31, 2015 ($59.72) over the exercise price multiplied by the applicable number of stock options. | ||||||||||||||||||||||
6. Stock-Based Compensation (continued) | ||||||||||||||||||||||
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. Nonvested stock awarded to employees generally vests over five years. Director awards vest over the term to which the director was elected, generally one year. In lieu of cash dividends, 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: | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||
Average | Average | Average | ||||||||||||||||||||
Grant | Grant | Grant | ||||||||||||||||||||
Date Fair | Date Fair | Date Fair | ||||||||||||||||||||
Value | Value | Value | ||||||||||||||||||||
(Shares in Thousands) | ||||||||||||||||||||||
Balance at beginning of year | 2,653 | $ | 50.56 | 2,323 | $ | 50.47 | 1,946 | $ | 51.11 | |||||||||||||
Granted | 910 | 56.13 | 1,189 | 49.22 | 1,038 | 48.86 | ||||||||||||||||
Vested | (818 | ) | 50.69 | (706 | ) | 48 | (492 | ) | 49.77 | |||||||||||||
Forfeited | (314 | ) | 51.47 | (153 | ) | 50.48 | (169 | ) | 50.04 | |||||||||||||
Balance at end of year | 2,431 | $ | 52.29 | 2,653 | $ | 50.56 | 2,323 | $ | 50.47 | |||||||||||||
The aggregate fair value of awards at the time of vesting was $41 million in 2014, $34 million in 2013 and $24 million in 2012. | ||||||||||||||||||||||
Performance share units | ||||||||||||||||||||||
In March 2014, we granted performance-based restricted stock units ("performance share units") to certain executives. The performance measurement period for these performance share units is fiscal years 2014 through 2016. The fair market value of the grant was $62.39 per unit and was determined using a Monte-Carlo valuation on the date of grant. The performance share units cover a target of 18,000 shares. | ||||||||||||||||||||||
In January 2014, we granted performance share units to certain executives. The performance measurement period for these performance share units is fiscal years 2014 through 2016. The fair market value of the grant was $57.37 per unit and was determined using a Monte-Carlo valuation on the date of grant. The performance share units cover a target of 230,000 shares. | ||||||||||||||||||||||
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. 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. | ||||||||||||||||||||||
Other required disclosures | ||||||||||||||||||||||
Stock-based compensation expense is included in Selling, General and Administrative expense in our Consolidated Statements of Income. Such expense totaled $48 million for 2014, $55 million for 2013 and $50 million for 2012. At January 31, 2015, we had approximately $92 million of unrecognized share-based compensation expense, which is expected to be recognized over a weighted-average period of 2 years. |
Contingencies
Contingencies | 12 Months Ended |
Jan. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies |
At any time, we may be subject to investigations, legal proceedings, or claims related to the on-going operation 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_Informatio
Quarterly Financial Information (Unaudited) | 12 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) | |||||||||||||||
Each quarterly period below was a 13-week accounting period. | ||||||||||||||||
2014 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
(In Millions, Except per Share Data) | ||||||||||||||||
Net sales | $ | 4,070 | $ | 4,242 | $ | 4,374 | $ | 6,337 | ||||||||
Gross margin | $ | 1,496 | $ | 1,654 | $ | 1,628 | $ | 2,147 | ||||||||
Net income | $ | 125 | $ | 232 | $ | 142 | $ | 369 | ||||||||
Basic shares | 206 | 204 | 202 | 199 | ||||||||||||
Basic net income per share | $ | 0.6 | $ | 1.14 | $ | 0.7 | $ | 1.85 | ||||||||
Diluted shares | 208 | 205 | 203 | 201 | ||||||||||||
Diluted net income per share | $ | 0.6 | $ | 1.13 | $ | 0.7 | $ | 1.83 | ||||||||
2013 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
(In Millions, Except per Share Data) | ||||||||||||||||
Net sales | $ | 4,199 | $ | 4,289 | $ | 4,444 | $ | 6,099 | ||||||||
Gross margin | $ | 1,528 | $ | 1,676 | $ | 1,666 | $ | 2,075 | ||||||||
Net income | $ | 147 | $ | 231 | $ | 177 | $ | 334 | ||||||||
Basic shares | 222 | 220 | 216 | 213 | ||||||||||||
Basic net income per share | $ | 0.66 | $ | 1.05 | $ | 0.82 | $ | 1.57 | ||||||||
Diluted shares | 223 | 222 | 218 | 215 | ||||||||||||
Diluted net income per share | $ | 0.66 | $ | 1.04 | $ | 0.81 | $ | 1.56 | ||||||||
Due to changes in stock prices during the year and timing of share repurchases and issuances, the sum of quarterly net income per share may not equal the annual net income per share. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Jan. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions |
One of our directors is also a shareholder of a law firm which performs legal services for us. |
Business_and_Summary_of_Accoun1
Business and Summary of Accounting Policies (Policies) | 12 Months Ended | |||||||||||||||
Jan. 31, 2015 | Feb. 01, 2014 | |||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||
Business | Business | |||||||||||||||
As of January 31, 2015, we operated 1,162 department stores in 49 states and a website (www.Kohls.com) that sell moderately-priced private label, exclusive and national brand apparel, footwear, accessories, beauty and home products. Our stores generally carry a consistent merchandise assortment with some differences attributable to regional preferences. Our website includes merchandise which is available in our stores, as well as merchandise which is available only on-line. | ||||||||||||||||
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 Department Stores, 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 31st each year. Unless otherwise stated, references to years in this report relate to fiscal years rather than to calendar years. The following fiscal periods are presented in this report. | ||||||||||||||||
Fiscal year | Ended | Number of | ||||||||||||||
Weeks | ||||||||||||||||
2014 | 31-Jan-15 | 52 | ||||||||||||||
2013 | February 1, 2014 | 52 | ||||||||||||||
2012 | February 2, 2013 | 53 | ||||||||||||||
Use of estimates | Use of Estimates | |||||||||||||||
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. 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 $95 million at January 31, 2015 and $89 million at February 1, 2014. | ||||||||||||||||
Long-term investments | ||||||||||||||||
Merchandise inventories | Merchandise Inventories | |||||||||||||||
Merchandise inventories are valued at the lower of cost or market with cost determined on the first-in, first-out (“FIFO”) basis 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 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 currently taken as a reduction of the retail value of inventory. We record an additional reserve if the future estimated selling price is less than cost. | ||||||||||||||||
Property and equipment | The annual provisions for depreciation and amortization generally use the following ranges of useful lives: | |||||||||||||||
Buildings and improvements | 5-40 years | |||||||||||||||
Store fixtures and equipment | 3-15 years | |||||||||||||||
Computer hardware and software | 3-8 years | |||||||||||||||
Long-lived assets | Long-Lived Assets | |||||||||||||||
All property and equipment and other long-lived assets are reviewed for potential impairment 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. No impairments were recorded in 2014, 2013, or 2012 as a result of the tests performed. | ||||||||||||||||
Accrued liabilities | Accrued Liabilities | |||||||||||||||
Accrued liabilities consist of the following: | ||||||||||||||||
Jan 31, | Feb 1, | |||||||||||||||
2015 | 2014 | |||||||||||||||
(Dollars In Millions) | ||||||||||||||||
Gift cards and merchandise return cards | $ | 307 | $ | 296 | ||||||||||||
Payroll and related fringe benefits | 135 | 112 | ||||||||||||||
Sales, property and use taxes | 185 | 166 | ||||||||||||||
Credit card liabilities | 106 | 109 | ||||||||||||||
Other | 427 | 455 | ||||||||||||||
Accrued liabilities | $ | 1,160 | $ | 1,138 | ||||||||||||
Self-insurance | Self-Insurance | |||||||||||||||
We use a combination of insurance and self-insurance for a number of risks including workers’ compensation, general liability, and employee-related health care benefits, a portion of which is paid by our associates. Liabilities associated with these losses include estimates of both reported losses and losses incurred but not yet reported. We use a third-party actuary, which considers historical claims experience, demographic factors, severity factors and other actuarial assumptions, to estimate the liabilities associated with these risks. Total estimated liabilities for workers’ compensation, general liability and employee-related health benefits were approximately $46 million at January 31, 2015 and $47 million at February 1, 2014. Although these amounts are actuarially determined based on analysis of historical trends, the amounts that we will ultimately disburse could differ from these estimates. | ||||||||||||||||
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. | ||||||||||||||||
Accumulated other comprehensive loss and other comprehensive income (loss) | Accumulated Other Comprehensive Loss and Other Comprehensive Income | |||||||||||||||
Accumulated other comprehensive loss consists of the following: | ||||||||||||||||
Unrealized | Loss on | Accumulated | ||||||||||||||
Gains | Interest | Other | ||||||||||||||
(Losses) on | Rate | Comprehensive | ||||||||||||||
Investments | Derivatives | Loss | ||||||||||||||
(Dollars In Millions) | ||||||||||||||||
Balance at February 2, 2013 | $ | (19 | ) | $ | (26 | ) | $ | (45 | ) | |||||||
Other comprehensive income | 8 | 3 | 11 | |||||||||||||
Balance at February 1, 2014 | (11 | ) | (23 | ) | (34 | ) | ||||||||||
Other comprehensive income | 11 | 3 | 14 | |||||||||||||
Balance at January 31, 2015 | $ | — | $ | (20 | ) | $ | (20 | ) | ||||||||
The tax effects of each component of other comprehensive income are as follows: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(Dollars In Millions) | ||||||||||||||||
Unrealized gains on investments: | ||||||||||||||||
Before-tax amounts | $ | 18 | $ | 12 | $ | 9 | ||||||||||
Tax expense | (7 | ) | (4 | ) | (4 | ) | ||||||||||
After-tax amounts | 11 | 8 | 5 | |||||||||||||
Interest rate derivatives: | ||||||||||||||||
Before-tax amounts | 5 | 5 | 5 | |||||||||||||
Tax expense | (2 | ) | (2 | ) | (2 | ) | ||||||||||
After-tax amounts | 3 | 3 | 3 | |||||||||||||
Other comprehensive income | $ | 14 | $ | 11 | $ | 8 | ||||||||||
Revenue recognition | Revenue Recognition | |||||||||||||||
Revenue from the sale of merchandise at our stores is recognized at the time of sale, net of any returns. Sales of merchandise shipped to our customers are recorded based on estimated receipt of merchandise by the customer. Net sales do not include sales tax as we are considered a pass-through conduit for collecting and remitting sales taxes. | ||||||||||||||||
Revenue from Kohl's gift card sales is recognized when the gift card is redeemed. Gift card breakage revenue is based on historical redemption patterns and represents the balance of gift cards for which we believe the likelihood of redemption by a customer is remote. | ||||||||||||||||
Cost of merchandise sold and selling, general and administrative expenses | 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 | • Compensation and benefit costs including: | |||||||||||||||
• Stores | ||||||||||||||||
• Inventory shrink | • Corporate headquarters, including buying and merchandising | |||||||||||||||
• Distribution centers | ||||||||||||||||
• Markdowns | ||||||||||||||||
• Occupancy and operating costs of our retail, distribution and corporate facilities | ||||||||||||||||
• Freight expenses associated with moving merchandise from our vendors to our distribution centers | ||||||||||||||||
• Net revenues from the Kohl’s credit card program | ||||||||||||||||
• Shipping and handling expenses of sales generated on-line | ||||||||||||||||
• Freight expenses associated with moving merchandise from our distribution centers to our retail stores and between distribution and retail facilities | ||||||||||||||||
• Terms cash discount | ||||||||||||||||
• Advertising expenses, offset by vendor payments for reimbursement of specific, incremental and identifiable costs | ||||||||||||||||
• Other administrative revenues and expenses | ||||||||||||||||
The classification of these expenses varies across the retail industry. | ||||||||||||||||
Vendor allowances | ||||||||||||||||
Leases | eases | |||||||||||||||
We lease certain property and equipment used in our operations. | ||||||||||||||||
We are often involved extensively in the construction of leased stores. In many cases, we are responsible for construction cost over runs or non-standard tenant improvements (e.g. roof or HVAC systems). As a result of this involvement, we are deemed the “owner” for accounting purposes during the construction period, so are required to capitalize the construction costs on our Balance Sheet. Upon completion of the project, we perform a sale-leaseback analysis pursuant to ASC 840, “Leases,” to determine if we can remove the assets from our Balance Sheet. In many of our leases, we are reimbursed a portion of the construction costs via adjusted rental payments and/or cash payments or have terms which fix the rental payments for a significant percentage of the leased asset’s economic life. These items generally are considered “continuing involvement” which precludes us from derecognizing the assets from our Balance Sheet when construction is complete. In conjunction with these leases, we also record financing obligations equal to the cash proceeds or fair market value of the assets received from the landlord. At the end of the lease term, including exercise of any renewal options, the net remaining financing obligation over the net carrying value of the fixed asset will be recognized as a non-cash gain on sale of the property. We do not report rent expense for the properties which are owned for accounting purposes. Rather, rental payments under the lease are recognized as a reduction of the financing obligation and interest expense. | ||||||||||||||||
Some of our property and equipment is held under capital leases. These assets are included in property and equipment and depreciated over the term of the lease. We do not report rent expense for capital leases. Rather, rental payments under the lease are recognized as a reduction of the capital lease obligation and interest expense. | ||||||||||||||||
All other leases are considered operating leases in accordance with ASC 840. Assets subject to an operating lease and the related lease payments are not recorded on our balance sheet. Rent expense is recognized on a straight-line basis over the expected lease term. | ||||||||||||||||
The lease term for all types of leases begins on the date we become legally obligated for the rent payments or we take possession of the building or land, whichever is earlier. The lease term includes cancelable option periods where failure to exercise such options would result in an economic penalty. Failure to exercise such options would result in the recognition of accelerated depreciation expense of the related assets. | ||||||||||||||||
Advertising | Advertising | |||||||||||||||
Advertising costs, which include primarily television and radio broadcast, direct mail, digital, and newspaper circulars, are expensed when the advertisement is first seen. Advertising costs, net of related vendor allowances, were as follows: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(Dollars In Millions) | ||||||||||||||||
Gross advertising costs | $ | 1,189 | $ | 1,185 | $ | 1,163 | ||||||||||
Vendor allowances | (165 | ) | (172 | ) | (170 | ) | ||||||||||
Net advertising costs | $ | 1,024 | $ | 1,013 | $ | 993 | ||||||||||
Net advertising costs as a percent of net sales | 5.4 | % | 5.3 | % | 5.2 | % | ||||||||||
Income taxes | ncome 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 income per share | Net Income Per Share | |||||||||||||||
Basic net income per share is net income divided by the average number of common shares outstanding during the period. Diluted net income per share includes incremental shares assumed to be issued upon exercise of stock options. | ||||||||||||||||
The information required to compute basic and diluted net income per share is as follows: | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
(In Millions, Except per Share Data) | ||||||||||||||||
Numerator—net income | $ | 867 | $ | 889 | $ | 986 | ||||||||||
Denominator—weighted average shares | ||||||||||||||||
Basic | 203 | 218 | 235 | |||||||||||||
Impact of dilutive employee stock options (a) | 1 | 2 | 2 | |||||||||||||
Diluted | 204 | 220 | 237 | |||||||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 4.28 | $ | 4.08 | $ | 4.19 | ||||||||||
Diluted | $ | 4.24 | $ | 4.05 | $ | 4.17 | ||||||||||
(a) | Excludes 3 million share-based awards for 2014, 10 million share-based awards for 2013 and 14 million share-based awards for 2012 as the impact of such awards was antidilutive. | |||||||||||||||
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 Not Yet Adopted | ||||||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. This ASU is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We are required to adopt the new pronouncement in the first quarter of fiscal 2017 using one of two retrospective application methods. We are evaluating the application method and the impact of this new statement on our financial statements. |
Business_and_Summary_of_Accoun2
Business and Summary of Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||
Schedule of fiscal period | The following fiscal periods are presented in this report. | |||||||||||
Fiscal year | Ended | Number of | ||||||||||
Weeks | ||||||||||||
2014 | 31-Jan-15 | 52 | ||||||||||
2013 | February 1, 2014 | 52 | ||||||||||
2012 | February 2, 2013 | 53 | ||||||||||
Property and equipment | Property and equipment consist of the following: | |||||||||||
Jan 31, | Feb 1, | |||||||||||
2015 | 2014 | |||||||||||
(Dollars In Millions) | ||||||||||||
Land | $ | 1,103 | $ | 1,095 | ||||||||
Buildings and improvements: | ||||||||||||
Owned | 7,844 | 7,713 | ||||||||||
Leased | 1,848 | 1,845 | ||||||||||
Store fixtures and equipment | 2,032 | 2,147 | ||||||||||
Computer hardware and software | 1,368 | 1,033 | ||||||||||
Construction in progress | 210 | 291 | ||||||||||
Total property and equipment, at cost | 14,405 | 14,124 | ||||||||||
Less accumulated depreciation | (5,890 | ) | (5,379 | ) | ||||||||
Property and equipment, net | $ | 8,515 | $ | 8,745 | ||||||||
Range of useful lives | The annual provisions for depreciation and amortization generally use the following ranges of useful lives: | |||||||||||
Buildings and improvements | 5-40 years | |||||||||||
Store fixtures and equipment | 3-15 years | |||||||||||
Computer hardware and software | 3-8 years | |||||||||||
Accrued Liabilities | Accrued liabilities consist of the following: | |||||||||||
Jan 31, | Feb 1, | |||||||||||
2015 | 2014 | |||||||||||
(Dollars In Millions) | ||||||||||||
Gift cards and merchandise return cards | $ | 307 | $ | 296 | ||||||||
Payroll and related fringe benefits | 135 | 112 | ||||||||||
Sales, property and use taxes | 185 | 166 | ||||||||||
Credit card liabilities | 106 | 109 | ||||||||||
Other | 427 | 455 | ||||||||||
Accrued liabilities | $ | 1,160 | $ | 1,138 | ||||||||
Long-term liabilities | ||||||||||||
Accumulated other comprehensive loss | Accumulated other comprehensive loss consists of the following: | |||||||||||
Unrealized | Loss on | Accumulated | ||||||||||
Gains | Interest | Other | ||||||||||
(Losses) on | Rate | Comprehensive | ||||||||||
Investments | Derivatives | Loss | ||||||||||
(Dollars In Millions) | ||||||||||||
Balance at February 2, 2013 | $ | (19 | ) | $ | (26 | ) | $ | (45 | ) | |||
Other comprehensive income | 8 | 3 | 11 | |||||||||
Balance at February 1, 2014 | (11 | ) | (23 | ) | (34 | ) | ||||||
Other comprehensive income | 11 | 3 | 14 | |||||||||
Balance at January 31, 2015 | $ | — | $ | (20 | ) | $ | (20 | ) | ||||
Tax effects of components of other comprehensive (loss) income | The tax effects of each component of other comprehensive income are as follows: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(Dollars In Millions) | ||||||||||||
Unrealized gains on investments: | ||||||||||||
Before-tax amounts | $ | 18 | $ | 12 | $ | 9 | ||||||
Tax expense | (7 | ) | (4 | ) | (4 | ) | ||||||
After-tax amounts | 11 | 8 | 5 | |||||||||
Interest rate derivatives: | ||||||||||||
Before-tax amounts | 5 | 5 | 5 | |||||||||
Tax expense | (2 | ) | (2 | ) | (2 | ) | ||||||
After-tax amounts | 3 | 3 | 3 | |||||||||
Other comprehensive income | $ | 14 | $ | 11 | $ | 8 | ||||||
Advertising | Advertising costs, net of related vendor allowances, were as follows: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(Dollars In Millions) | ||||||||||||
Gross advertising costs | $ | 1,189 | $ | 1,185 | $ | 1,163 | ||||||
Vendor allowances | (165 | ) | (172 | ) | (170 | ) | ||||||
Net advertising costs | $ | 1,024 | $ | 1,013 | $ | 993 | ||||||
Net advertising costs as a percent of net sales | 5.4 | % | 5.3 | % | 5.2 | % | ||||||
Net income per share | The information required to compute basic and diluted net income per share is as follows: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(In Millions, Except per Share Data) | ||||||||||||
Numerator—net income | $ | 867 | $ | 889 | $ | 986 | ||||||
Denominator—weighted average shares | ||||||||||||
Basic | 203 | 218 | 235 | |||||||||
Impact of dilutive employee stock options (a) | 1 | 2 | 2 | |||||||||
Diluted | 204 | 220 | 237 | |||||||||
Net income per share: | ||||||||||||
Basic | $ | 4.28 | $ | 4.08 | $ | 4.19 | ||||||
Diluted | $ | 4.24 | $ | 4.05 | $ | 4.17 | ||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||||||||
Jan. 31, 2015 | ||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||
Components of long-term debt | Long-term debt consists of the following unsecured senior debt: | |||||||||||||
Outstanding | ||||||||||||||
Maturity | Effective | Coupon Rate | 31-Jan-15 | 1-Feb-14 | ||||||||||
Rate | ||||||||||||||
(Dollars in Millions) | ||||||||||||||
2017 | 6.31 | % | 6.25 | % | $ | 650 | $ | 650 | ||||||
2021 | 4.81 | % | 4 | % | 650 | 650 | ||||||||
2023 | 3.25 | % | 3.25 | % | 350 | 350 | ||||||||
2023 | 4.78 | % | 4.75 | % | 300 | 300 | ||||||||
2029 | 7.36 | % | 7.25 | % | 200 | 200 | ||||||||
2033 | 6.05 | % | 6 | % | 300 | 300 | ||||||||
2037 | 6.89 | % | 6.88 | % | 350 | 350 | ||||||||
5.54 | % | 2,800 | 2,800 | |||||||||||
Unamortized debt discount | (7 | ) | (8 | ) | ||||||||||
Long-term debt | $ | 2,793 | $ | 2,792 | ||||||||||
Lease_Commitments_Tables
Lease Commitments (Tables) | 12 Months Ended | |||||||
Jan. 31, 2015 | ||||||||
Leases [Abstract] | ||||||||
Schedule of future minimum lease payments | Future minimum lease payments at January 31, 2015 were as follows: | |||||||
Capital | Operating | |||||||
Lease | Leases | |||||||
and | ||||||||
Financing Obligations | ||||||||
(Dollars In Millions) | ||||||||
Fiscal year: | ||||||||
2015 | $ | 279 | $ | 246 | ||||
2016 | 282 | 242 | ||||||
2017 | 271 | 239 | ||||||
2018 | 255 | 240 | ||||||
2019 | 238 | 236 | ||||||
Thereafter | 2,866 | 4,597 | ||||||
4,191 | $ | 5,800 | ||||||
Non-cash gain on future sale of property | 458 | |||||||
Amount representing interest | (2,681 | ) | ||||||
Present value of lease payments | $ | 1,968 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Jan. 31, 2015 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Deferred income taxes | Deferred income taxes consist of the following: | |||||||||||
Jan 31, | Feb 1, | |||||||||||
2015 | 2014 | |||||||||||
(Dollars In Millions) | ||||||||||||
Deferred tax liabilities: | ||||||||||||
Property and equipment | $ | 1,385 | $ | 1,416 | ||||||||
Deferred tax assets: | ||||||||||||
Merchandise inventories | 24 | 24 | ||||||||||
Accrued and other liabilities, including stock options | 182 | 223 | ||||||||||
Capital lease and financing obligations | 773 | 813 | ||||||||||
Accrued step rent liability | 100 | 94 | ||||||||||
Unrealized loss on investments | — | 7 | ||||||||||
Unrealized loss on interest rate swap | 13 | 15 | ||||||||||
Federal benefit on state tax reserves | 41 | 43 | ||||||||||
1,133 | 1,219 | |||||||||||
Net deferred tax liability | $ | 252 | $ | 197 | ||||||||
Components of the provision for income tax | The components of the provision for income taxes were as follows: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(Dollars In Millions) | ||||||||||||
Current federal | $ | 400 | $ | 473 | $ | 592 | ||||||
Current state | 36 | 45 | 60 | |||||||||
Deferred federal | 48 | 6 | (68 | ) | ||||||||
Deferred state | (2 | ) | (9 | ) | (9 | ) | ||||||
$ | 482 | $ | 515 | $ | 575 | |||||||
Items affecting statutory corporate tax rate | The provision for income taxes differs from the amount that would be provided by applying the statutory U.S. corporate tax rate due to the following items: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Provision at statutory rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal tax benefit | 1.3 | 2.2 | 2.2 | |||||||||
Tax-exempt interest income | — | (0.2 | ) | (0.1 | ) | |||||||
Other federal tax credits | (0.6 | ) | (0.3 | ) | (0.3 | ) | ||||||
Provision for income taxes | 35.7 | % | 36.7 | % | 36.8 | % | ||||||
Reconciliation of gross amount of unrecognized tax benefits | A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows: | |||||||||||
2014 | 2013 | |||||||||||
(Dollars In Millions) | ||||||||||||
Balance at beginning of year | $ | 125 | $ | 108 | ||||||||
Increases due to: | ||||||||||||
Tax positions taken in prior years | — | 6 | ||||||||||
Tax positions taken in current year | 21 | 21 | ||||||||||
Decreases due to: | ||||||||||||
Tax positions taken in prior years | (16 | ) | (4 | ) | ||||||||
Settlements with taxing authorities | (2 | ) | (3 | ) | ||||||||
Lapse of applicable statute of limitations | (5 | ) | (3 | ) | ||||||||
Balance at end of year | $ | 123 | $ | 125 | ||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||||||||||
Jan. 31, 2015 | ||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||
Fair value of option awards | The fair value of each option award is estimated using a Black-Scholes option valuation model and the following assumptions as of the grant date: | |||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Dividend yield | 2.80% | 2.90% | 2.60% | |||||||||||||||||||
Volatility | 31.00% | 32.70% | 33.70% | |||||||||||||||||||
Risk-free interest rate | 1.70% | 0.90% | 1.00% | |||||||||||||||||||
Expected life in years | 5.5 | 5.5 | 5.5 | |||||||||||||||||||
Weighted average fair value at grant date | $12.23 | $10.68 | $11.79 | |||||||||||||||||||
Summary of stock option activity | The following table summarizes our stock option activity for 2014, 2013, and 2012: | |||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||
Average | Average | Average | ||||||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||||||
Price | Price | Price | ||||||||||||||||||||
(Shares in Thousands) | ||||||||||||||||||||||
Balance at beginning of year | 11,375 | $ | 56.05 | 15,212 | $ | 53.96 | 16,564 | $ | 53.41 | |||||||||||||
Granted | 186 | 54.69 | 575 | 47.86 | 1,458 | 49 | ||||||||||||||||
Exercised | (2,647 | ) | 46.87 | (2,494 | ) | 41.02 | (1,718 | ) | 40.01 | |||||||||||||
Forfeited/expired | (2,703 | ) | 72.21 | (1,918 | ) | 56.59 | (1,092 | ) | 60.93 | |||||||||||||
Balance at end of year | 6,211 | $ | 52.95 | 11,375 | $ | 56.05 | 15,212 | $ | 53.96 | |||||||||||||
Stock options outstanding and exercisable by exercise price range | Additional information related to stock options outstanding and exercisable at January 31, 2015, segregated by exercise price range, is summarized below: | |||||||||||||||||||||
Stock Options Outstanding | Stock Options Exercisable | |||||||||||||||||||||
Range of Exercise Prices | Shares | Weighted | Weighted | Shares | Weighted | Weighted | ||||||||||||||||
Average | Average | Average | Average | |||||||||||||||||||
Remaining | Exercise | Remaining | Exercise | |||||||||||||||||||
Contractual | Price | Contractual | Price | |||||||||||||||||||
Life (in | Life (in | |||||||||||||||||||||
years) | years) | |||||||||||||||||||||
(Shares in Thousands) | ||||||||||||||||||||||
$ 29.09 – $ 46.00 | 823 | 1.9 | $ | 42.27 | 701 | 1.3 | $ | 41.84 | ||||||||||||||
$ 46.01 – $ 49.00 | 1,180 | 4.4 | 47.6 | 541 | 4.6 | 47.46 | ||||||||||||||||
$ 49.01 – $ 51.00 | 1,081 | 2.9 | 50.06 | 910 | 2.6 | 50.06 | ||||||||||||||||
$ 51.01 – $ 55.00 | 1,164 | 3.9 | 52.75 | 592 | 3.6 | 52.9 | ||||||||||||||||
$ 55.01 – $ 65.00 | 954 | 2.7 | 57.52 | 766 | 2.4 | 57.86 | ||||||||||||||||
$ 65.01 – $ 77.62 | 1,009 | 1.6 | 66.95 | 1,009 | 1.6 | 66.95 | ||||||||||||||||
6,211 | 3 | $ | 52.95 | 4,519 | 2.5 | $ | 53.94 | |||||||||||||||
Intrinsic value (in thousands) | $ | 49,754 | $ | 33,849 | ||||||||||||||||||
Summary of nonvested atock activity | The following table summarizes nonvested stock activity, including restricted stock equivalents issued in lieu of cash dividends: | |||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||
Average | Average | Average | ||||||||||||||||||||
Grant | Grant | Grant | ||||||||||||||||||||
Date Fair | Date Fair | Date Fair | ||||||||||||||||||||
Value | Value | Value | ||||||||||||||||||||
(Shares in Thousands) | ||||||||||||||||||||||
Balance at beginning of year | 2,653 | $ | 50.56 | 2,323 | $ | 50.47 | 1,946 | $ | 51.11 | |||||||||||||
Granted | 910 | 56.13 | 1,189 | 49.22 | 1,038 | 48.86 | ||||||||||||||||
Vested | (818 | ) | 50.69 | (706 | ) | 48 | (492 | ) | 49.77 | |||||||||||||
Forfeited | (314 | ) | 51.47 | (153 | ) | 50.48 | (169 | ) | 50.04 | |||||||||||||
Balance at end of year | 2,431 | $ | 52.29 | 2,653 | $ | 50.56 | 2,323 | $ | 50.47 | |||||||||||||
Quarterly_Financial_Informatio1
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Jan. 31, 2015 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Schedule of Quarterly Financial Data | Each quarterly period below was a 13-week accounting period. | |||||||||||||||
2014 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
(In Millions, Except per Share Data) | ||||||||||||||||
Net sales | $ | 4,070 | $ | 4,242 | $ | 4,374 | $ | 6,337 | ||||||||
Gross margin | $ | 1,496 | $ | 1,654 | $ | 1,628 | $ | 2,147 | ||||||||
Net income | $ | 125 | $ | 232 | $ | 142 | $ | 369 | ||||||||
Basic shares | 206 | 204 | 202 | 199 | ||||||||||||
Basic net income per share | $ | 0.6 | $ | 1.14 | $ | 0.7 | $ | 1.85 | ||||||||
Diluted shares | 208 | 205 | 203 | 201 | ||||||||||||
Diluted net income per share | $ | 0.6 | $ | 1.13 | $ | 0.7 | $ | 1.83 | ||||||||
2013 | ||||||||||||||||
First | Second | Third | Fourth | |||||||||||||
(In Millions, Except per Share Data) | ||||||||||||||||
Net sales | $ | 4,199 | $ | 4,289 | $ | 4,444 | $ | 6,099 | ||||||||
Gross margin | $ | 1,528 | $ | 1,676 | $ | 1,666 | $ | 2,075 | ||||||||
Net income | $ | 147 | $ | 231 | $ | 177 | $ | 334 | ||||||||
Basic shares | 222 | 220 | 216 | 213 | ||||||||||||
Basic net income per share | $ | 0.66 | $ | 1.05 | $ | 0.82 | $ | 1.57 | ||||||||
Diluted shares | 223 | 222 | 218 | 215 | ||||||||||||
Diluted net income per share | $ | 0.66 | $ | 1.04 | $ | 0.81 | $ | 1.56 | ||||||||
Business_and_Summary_of_Accoun3
Business and Summary of Accounting Policies (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2015 | Jan. 31, 2015 | Feb. 01, 2014 | Jan. 29, 2011 | |
Store | Store | |||
Business And Summary Of Accounting Policies [Line Items] | ||||
Number of family-oriented department stores (in stores) | 1,162 | 1,162 | ||
Authorized common stock | 800,000,000 | 800,000,000 | ||
Common stock, par value | $0.01 | $0.01 | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | ||
Preferred stock, par value | $0.01 | $0.01 | ||
Weeks in reporting period | P13W | P52W | P52W | P53W |
Credit and debit card receivables | $95,000,000 | $95,000,000 | $89,000,000 | |
Estimated Total Self Insurance Related Liabilities | 46,000,000 | 46,000,000 | 47,000,000 | |
Deductible as a percent of losses | 5.00% | |||
Deductible as a Percent of Losses, Minimum | 200.00% | |||
General Liability [Member] | ||||
Business And Summary Of Accounting Policies [Line Items] | ||||
Value of initial insurance risk retained | $250,000 | $250,000 |
Business_and_Summary_of_Accoun4
Business and Summary of Accounting Policies Property and Equipment (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Land | $1,103 | $1,095 |
Store fixtures and equipment | 2,032 | 2,147 |
Construction in progress | 210 | 291 |
Total property and equipment, at cost | 14,405 | 14,124 |
Less accumulated depreciation | -5,890 | -5,379 |
Property and equipment, net | 8,515 | 8,745 |
Owned | ||
Property, Plant and Equipment [Line Items] | ||
Buildings and Improvements, Gross | 7,844 | 7,713 |
Leased | ||
Property, Plant and Equipment [Line Items] | ||
Buildings and improvements: | 1,848 | 1,845 |
Computer Hardware And Software | ||
Property, Plant and Equipment [Line Items] | ||
Machinery and Equipment, Gross | $1,368 | $1,033 |
Business_and_Summary_of_Accoun5
Business and Summary of Accounting Policies Ranges of Useful Lives (Details) | 12 Months Ended |
Jan. 31, 2015 | |
Minimum | Building and Building Improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Minimum | Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Minimum | Computer Hardware And Software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Maximum | Building and Building Improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Maximum | Equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 15 years |
Maximum | Computer Hardware And Software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 8 years |
Business_and_Summary_of_Accoun6
Business and Summary of Accounting Policies Accrued Liabilities (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Gift cards and merchandise return cards | $307 | $296 |
Payroll and related fringe benefits | 135 | 112 |
Sales, property and use taxes | 185 | 166 |
Credit card liabilities | 106 | 109 |
Other | 427 | 455 |
Accrued liabilities | $1,160 | $1,138 |
Business_and_Summary_of_Accoun7
Business and Summary of Accounting Policies Long-Term Liabilities (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Liabilities, Noncurrent | $562 | $560 |
Business_and_Summary_of_Accoun8
Business and Summary of Accounting Policies Accumulated Other Comprehensive Loss (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Beginning Balance | $6,048 | $6,508 | ||
Ending Balance | 5,991 | 5,978 | 6,048 | 6,508 |
Unrealized Gains Losses on Investments | ||||
Beginning Balance | -11 | -19 | ||
Other comprehensive income | 11 | 8 | ||
Ending Balance | 0 | -11 | ||
Loss On Interest Rate Derivatives | ||||
Beginning Balance | -23 | -26 | ||
Other comprehensive income | 3 | 3 | ||
Ending Balance | -20 | -23 | ||
Accumulated Other Comprehensive (Loss) | ||||
Beginning Balance | -34 | -45 | -53 | |
Other comprehensive income | 14 | 11 | ||
Ending Balance | ($20) | ($34) | ($53) |
Business_and_Summary_of_Accoun9
Business and Summary of Accounting Policies Tax Effects Of Components Of Other Comprehensive (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Before-tax amounts, Unrealized gains (losses) on investements | $18 | $12 | $9 |
Tax (expense) benefit, Unrealized gains (losses) on investments | -7 | -4 | -4 |
After-tax amounts, Unrealized gains (losses) on investments | 11 | 8 | 5 |
Before tax amounts, interest rate derivatives | 5 | 5 | 5 |
Tax (expense) benefit, interest rate derivatives | -2 | -2 | -2 |
After-tax amounts, interest rate derivatives | 3 | 3 | 3 |
Other comprehensive income | $14 | $11 | $8 |
Recovered_Sheet1
Business and Summary of Accounting Policies Adverstising (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 28, 2012 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Advertising Costs Exclusive Of Vendor Allowances | $1,189 | $1,185 | $1,163 | |
Allowances Received From Vendors For Advertising Expenses Incurred | -165 | -172 | -170 | |
Advertising Expense | $1,024 | $1,013 | $993 | |
Net Advertising To Net Sales | 5.40% | 5.30% | 5.20% |
Recovered_Sheet2
Business and Summary of Accounting Policies Net Income Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||
Numerator—net income | $369 | $142 | $232 | $125 | $334 | $177 | $231 | $147 | $867 | $889 | $986 |
Denominator - Weighted average shares, Basic | 199 | 202 | 204 | 206 | 213 | 216 | 220 | 222 | 203 | 218 | 235 |
Impact of dilutive employee stock options | 1 | 2 | 2 | ||||||||
Weighted average shares, Diluted | 201 | 203 | 205 | 208 | 215 | 218 | 222 | 223 | 204 | 220 | 237 |
Net income per share, Basic | $1.85 | $0.70 | $1.14 | $0.60 | $1.57 | $0.82 | $1.05 | $0.66 | $4.28 | $4.08 | $4.19 |
Net income per share, Diluted | $1.83 | $0.70 | $1.13 | $0.60 | $1.56 | $0.81 | $1.04 | $0.66 | $4.24 | $4.05 | $4.17 |
Excluded options as the ipact of such options was antidilutive | 3 | 10 | 14 |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
Bank | ||
Long-term Debt, Fair Value | $3,100,000,000 | $3,000,000,000 |
Unsecured Debt | 1,000,000,000 | |
Number of Banks With Uncommitted Lines | 2 | |
Trade Letters of Credit and Stand by Letters of Credit | ||
Line of credit facilty outstanding amount | $52,000,000 | |
Senior Notes | ||
Long-term Debt, Weighted Average Interest Rate | 5.54% | |
Senior Notes | Senior Notes Due Twenty Seventeen [Member] | ||
Long-term Debt, Weighted Average Interest Rate | 6.31% | 6.31% |
Debt instrument, interest rate | 6.25% | 6.25% |
Senior Notes | Four Point Seven Eight Percent Senior Note Due Twenty Twenty Three [Member] [Domain] | ||
Long-term Debt, Weighted Average Interest Rate | 4.78% | 4.78% |
Debt instrument, interest rate | 4.75% | 4.75% |
Senior Notes | Senior Notes Due Twenty Twenty Three [Member] | ||
Long-term Debt, Weighted Average Interest Rate | 3.25% | 3.25% |
Debt instrument, interest rate | 3.25% | 3.25% |
Senior Notes | Senior Notes Due 2021 | ||
Long-term Debt, Weighted Average Interest Rate | 4.81% | 4.81% |
Debt instrument, interest rate | 4.00% | 4.00% |
Senior Notes | Senior Notes Due Twenty Twenty Nine [Member] | ||
Long-term Debt, Weighted Average Interest Rate | 7.36% | 7.36% |
Debt instrument, interest rate | 7.25% | 7.25% |
Senior Notes | Senior Notes Due Twenty Thirty Three [Member] | ||
Long-term Debt, Weighted Average Interest Rate | 6.05% | 6.05% |
Debt instrument, interest rate | 6.00% | 6.00% |
Senior Notes | Senior Notes Due Twenty Thirty Seven [Member] | ||
Long-term Debt, Weighted Average Interest Rate | 6.89% | 6.89% |
Debt instrument, interest rate | 6.88% | 6.88% |
Components_of_Long_Term_Debt_D
Components of Long Term Debt (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Unamortized debt discount | ($7) | ($8) |
Long-term debt | 2,793 | 2,792 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Effective Rate | 5.54% | |
Total senior debt | 2,800 | 2,800 |
Senior Notes | Senior Notes Due 2017 | ||
Debt Instrument [Line Items] | ||
Effective Rate | 6.31% | 6.31% |
Total senior debt | 650 | 650 |
Debt Instrument, Interest Rate, Stated Percentage | 6.25% | 6.25% |
Senior Notes | Senior Notes Due 2021 | ||
Debt Instrument [Line Items] | ||
Effective Rate | 4.81% | 4.81% |
Total senior debt | 650 | 650 |
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% |
Senior Notes | Senior Notes Due Twenty Twenty Three [Member] | ||
Debt Instrument [Line Items] | ||
Effective Rate | 3.25% | 3.25% |
Total senior debt | 350 | 350 |
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | 3.25% |
Senior Notes | Senior Notes Due 2029 | ||
Debt Instrument [Line Items] | ||
Effective Rate | 7.36% | 7.36% |
Total senior debt | 200 | 200 |
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 7.25% |
Senior Notes | Senior Notes Due 2033 | ||
Debt Instrument [Line Items] | ||
Effective Rate | 6.05% | 6.05% |
Total senior debt | 300 | 300 |
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% |
Senior Notes | Four Point Seven Eight Percent Senior Note Due Twenty Twenty Three [Member] [Domain] | ||
Debt Instrument [Line Items] | ||
Effective Rate | 4.78% | 4.78% |
Total senior debt | 300 | 300 |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% |
Senior Notes | Senior Notes Due 2037 | ||
Debt Instrument [Line Items] | ||
Effective Rate | 6.89% | 6.89% |
Total senior debt | $350 | $350 |
Debt Instrument, Interest Rate, Stated Percentage | 6.88% | 6.88% |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 | Jan. 28, 2012 | Jan. 29, 2011 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $1,407,000,000 | $971,000,000 | $537,000,000 | $1,205,000,000 |
Long-term Debt, Fair Value | 3,100,000,000 | 3,000,000,000 | ||
Long-term debt | $2,793,000,000 | $2,792,000,000 |
Lease_Commitments_Lease_Commit
Lease Commitments Lease Commitments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Operating Leased Assets [Line Items] | |||
Rent expense charged | $277 | $270 | $265 |
Lease renewal period term | 5 years | ||
Minimum | |||
Operating Leased Assets [Line Items] | |||
Number of lease renewal periods (in years) | 4 | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Number of lease renewal periods (in years) | 8 |
Lease_Commitments_Schedule_of_
Lease Commitments Schedule of Future Minimum Lease Payments (Details) (USD $) | Jan. 31, 2015 |
In Millions, unless otherwise specified | |
Leases [Abstract] | |
2013, Operating Leases | $246 |
2014, Operating Leases | 242 |
2015, Operating Leases | 239 |
2016, Operating Leases | 240 |
2017, Operating Leases | 236 |
Thereafter, Operating Leases | 4,597 |
Total future payments due, Operating Leases | 5,800 |
2013, Capital Leases and Financing Obligations | 279 |
2014, Capital Leases and Financing Obligations | 282 |
2015, Capital Leases and Financing Obligations | 271 |
2016, Capital Leases and Financing Obligations | 255 |
2017, Capital Leases and Financing Obligations | 238 |
Thereafter, Capital Leases and Financing Obligations | 2,866 |
Total future minimum payments due, Capital Leases and Financing Obligations | 4,191 |
Non-cash gain on future sale of property | 458 |
Amount representing interest | -2,681 |
Present value of lease payments | $1,968 |
Benefit_Plans_Benefit_Plans_De
Benefit Plans Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Compensation and Retirement Disclosure [Abstract] | |||
Percentage of maximum investment by participant | 100.00% | ||
Increase in percentage of participants 100% contribution fully matched per participants | 5.00% | ||
Non-qualified deferred compensation plan pre-tax compensation deferrals | 100.00% | ||
Deferrals snd credited investment returns vesting percentage | 100.00% | ||
Employee Stock Ownership Plan, Defined Contribution Plan, Non-Qualified Deferred Compensation Plan | $43 | $49 | $53 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 |
Income Tax Examination [Line Items] | ||
Gross unrecognized accrued interest and penalties | $23 | $21 |
Interest and penalty expense | 2 | 3 |
Unrecognized tax benefits that would impact effective tax rate | 89 | 88 |
Income Taxes Receivable, Current | 25 | |
Income Taxes Receivable | 22 | |
Increase (Decrease) in Income Taxes Receivable | $43 |
Deferred_Income_Taxes_Details
Deferred Income Taxes (Details) (USD $) | Jan. 31, 2015 | Feb. 01, 2014 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Property and equipment | $1,385 | $1,416 |
Merchandise inventories | 24 | 24 |
Accrued and other liabilities, including stock options | 182 | 223 |
Capital lease and financing obligations | 773 | 813 |
Accrued step rent liability | 100 | 94 |
Unrealized loss on investments | 0 | 7 |
Unrealized loss on interest rate swap | 13 | 15 |
Deferred Tax Assets, Other | 41 | 43 |
Deferred tax assets | 1,133 | 1,219 |
Deferred tax assets, net | ($252) | ($197) |
Income_Taxes_Components_of_the
Income Taxes Components of the Provision for Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Income Tax Disclosure [Abstract] | |||
Current federal | $400 | $473 | $592 |
Current state | 36 | 45 | 60 |
Deferred federal | 48 | 6 | -68 |
Deferred state | -2 | -9 | -9 |
Provision for income taxes | $482 | $515 | $575 |
Income_Taxes_Items_Affecting_S
Income Taxes Items Affecting Statutory Corporate Tax Rate (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Income Tax Disclosure [Abstract] | |||
Provision at statutory rate | 35.00% | 35.00% | 35.00% |
Income Tax Reconciliation, State and Local Income Taxes | $0.01 | $0.02 | $0.02 |
Tax-exempt interest income | 0.00% | -0.20% | -0.10% |
Effective Income Tax Rate Reconciliation, Tax Credits | -0.60% | -0.30% | -0.30% |
Provision for income taxes | 35.70% | 36.70% | 36.80% |
Income_Taxes_Reconciliation_of
Income Taxes Reconciliation of Gross Amount of Unrecognized Tax Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Jan. 28, 2012 |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $125 | $108 | |
Tax positions taken in prior years | 0 | 6 | |
Tax positions taken in current year | 21 | 21 | |
Tax positions taken in prior years | -16 | -4 | |
Settlements with taxing authorities | -2 | -3 | |
Lapse of applicable statute of limitations | -5 | -3 | |
Balance at end of year | $123 | $125 | $108 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Jan. 29, 2011 | Mar. 31, 2014 | Jan. 13, 2014 |
Installment | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized | 18,500,000 | ||||
Available for grant | 11,500,000 | ||||
Number of vesting installments | 5 | ||||
Intrinsic value of options exercised | $30 | $20 | |||
Closing stock price | $59.72 | ||||
Aggregate fair value of awards at the time of vesting | 41 | 34 | 24 | ||
Performance share fair value | $62.39 | $57.37 | |||
Performance share units | 18,000 | 230,000 | |||
Total share-based compensation expense | 48 | 55 | 50 | ||
Total unrecognized share-based compensation expense for al share-based payment plans | $92 | ||||
Weighted average period, years | 2 years | ||||
Non Vested Stock Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
General term of a elected dirctor, years | 5 years | ||||
Vesting term, years | 1 year | ||||
After 2005 | Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Term of options granted, years | 7 years | ||||
Prior 2006 | Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Term of options granted, years | 15 years | ||||
Director | Employee Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Term of options granted, years | 10 years |
Estimate_of_Fair_Value_of_Opti
Estimate of Fair Value of Option Award using Black-Scholes Option Valuation Model (Details) (USD $) | 12 Months Ended | ||
Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Dividend yield | 2.80% | 2.90% | 2.60% |
Volatility | 31.00% | 32.70% | 33.70% |
Risk-free interest rate | 1.70% | 0.90% | 1.00% |
Expected life in years | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Weighted average fair value at grant date | $12.23 | $10.68 | $11.79 |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 29, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Balance at beginning of year, shares | 11,375 | 15,212 | 16,564 | |
Granted, shares | 186 | 575 | 1,458 | |
Exercised, shares | -2,647 | -2,494 | -1,718 | |
Forfeited/expired, shares | -2,703 | -1,918 | -1,092 | |
Balance at end of quarter, shares | 6,211 | 11,375 | 16,564 | |
Balance at beginning of year, Weighted Average Exercise Price (in dollars per share) | $56.05 | $53.96 | $53.41 | |
Granted, Weighted Average Exercise Price (in dollars per share) | $54.69 | $47.86 | $49 | |
Exercised, Weighted Average Exercise Price (in dollars per share) | $46.87 | $41.02 | $40.01 | |
Forfeited/expired, Weighted Average Exercise Price (in dollars per share) | $72.21 | $56.59 | $60.93 | |
Balance at end of quarter, Weighted Average Exercise Price (in dollars per share) | $52.95 | $56.05 | $53.41 |
StockBased_Compensation_Stock_
Stock-Based Compensation Stock Options Outstanding and Exercisable by Exercise Price Range (Details) (USD $) | 12 Months Ended |
Jan. 31, 2015 | |
Exercise Prices Range Twenty Nine Point Zero Nine To Forty Six Point Zero Zero [Member] [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | $29.09 |
Range of Exercise Prices, maximum | $46 |
Exercise Prices Range Forty Six Point Zero One to Forty Nine Point Zero Zero [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | $46.01 |
Range of Exercise Prices, maximum | $49 |
Exercise Prices Range Forty Nine Point Zero One to Fifty One Point Zero Zero [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | $49.01 |
Range of Exercise Prices, maximum | $51 |
Exercise Prices Range Fifty One Point Zero One to Fifty Five Point Zero Zero [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | $51.01 |
Range of Exercise Prices, maximum | $55 |
Exercise Prices Range Fifty Five Point Zero One to Sixty Five Point Zero Zero [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | $55.01 |
Range of Exercise Prices, maximum | $65 |
Exercise Prices Range Sixty Five Point Zero One to Seventy Seven Point Six Two [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, minimum | $65.01 |
Range of Exercise Prices, maximum | $77.62 |
Summary_of_Nonvested_Stock_Act
Summary of Nonvested Stock Activity (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 29, 2011 |
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 | 2,653 | 2,323 | 1,946 | |
Granted, shares | 910 | 1,189 | 1,038 | |
Vested, shares | -818 | -706 | -492 | |
Forfeited, shares | -314 | -153 | -169 | |
Balance at end of quarter, shares | 2,431 | 2,653 | 1,946 | |
Balance at beginning of year, Weighted Average Grant Date Fair Value (in dollars per share) | $50.56 | $50.47 | $51.11 | |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $56.13 | $49.22 | $48.86 | |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | $50.69 | $48 | $49.77 | |
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $51.47 | $50.48 | $50.04 | |
Balance at end of quarter, Weighted Average Grant Date Fair Value (in dollars per share) | $52.29 | $50.56 | $51.11 |
Quarterly_Financial_Informatio2
Quarterly Financial Information (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | 3-May-14 | Feb. 01, 2014 | Nov. 02, 2013 | Aug. 03, 2013 | 4-May-13 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 | Jan. 29, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||
Net sales | $6,337 | $4,374 | $4,242 | $4,070 | $6,099 | $4,444 | $4,289 | $4,199 | $19,023 | $19,031 | $19,279 | |
Gross margin | 2,147 | 1,628 | 1,654 | 1,496 | 2,075 | 1,666 | 1,676 | 1,528 | 6,925 | 6,944 | 6,990 | |
Net income | $369 | $142 | $232 | $125 | $334 | $177 | $231 | $147 | $867 | $889 | $986 | |
Basic shares | 199 | 202 | 204 | 206 | 213 | 216 | 220 | 222 | 203 | 218 | 235 | |
Basic net income per share | $1.85 | $0.70 | $1.14 | $0.60 | $1.57 | $0.82 | $1.05 | $0.66 | $4.28 | $4.08 | $4.19 | |
Diluted shares | 201 | 203 | 205 | 208 | 215 | 218 | 222 | 223 | 204 | 220 | 237 | |
Diluted net income per share | $1.83 | $0.70 | $1.13 | $0.60 | $1.56 | $0.81 | $1.04 | $0.66 | $4.24 | $4.05 | $4.17 | |
Weeks in reporting period | P13W | P52W | P52W | P53W |
Related_Party_Transactions_Det
Related Party Transactions (Details) | 12 Months Ended |
Jan. 31, 2015 | |
Director | |
Related Party Transactions [Abstract] | |
Number of directors that is also a shareholder | 1 |