Kohl's (KSS) 10-Q 5 Jun 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	2-May-15
Document and Entity Information [Abstract]
Entity Registrant Name	KOHLS CORP
Entity Central Index Key	885639
Current Fiscal Year End Date	-29
Entity Filer Category	Large Accelerated Filer
Trading Symbol	KSS
Document Type	10-Q
Document Period End Date	2-May-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment Flag	FALSE
Entity Common Stock, Shares Outstanding	197,876,457

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	2-May-15	Jan. 31, 2015	3-May-14
Current assets:
Cash and cash equivalents	$1,195,000,000	$1,407,000,000	$717,000,000
Merchandise inventories	4,165,000,000	3,814,000,000	3,981,000,000
Income Taxes Receivable, Current		0
Deferred income taxes	129,000,000	116,000,000	137,000,000
Other	340,000,000	361,000,000	304,000,000
Total current assets	5,829,000,000	5,698,000,000	5,139,000,000
Property and equipment, net	8,518,000,000	8,515,000,000	8,677,000,000
Long-term investments	3,100,000,000	3,100,000,000	3,100,000,000
Other assets	216,000,000	218,000,000	298,000,000
Total assets	14,563,000,000	14,431,000,000	14,114,000,000
Current liabilities:
Accounts payable	1,645,000,000	1,511,000,000	1,382,000,000
Accrued liabilities	1,140,000,000	1,160,000,000	1,078,000,000
Income taxes payable	87,000,000	78,000,000	73,000,000
Current portion of capital lease and financing obligations	113,000,000	110,000,000	112,000,000
Total current liabilities	2,985,000,000	2,859,000,000	2,645,000,000
Long-term debt	2,793,000,000	2,793,000,000	2,792,000,000
Capital lease and financing obligations	1,840,000,000	1,858,000,000	1,919,000,000
Deferred income taxes	358,000,000	368,000,000	339,000,000
Other long-term liabilities	570,000,000	562,000,000	562,000,000
Shareholders’ equity:
Common stock	4,000,000	4,000,000	4,000,000
Paid-in capital	2,897,000,000	2,743,000,000	2,612,000,000
Treasury stock, at cost	-8,909,000,000	-8,744,000,000	-8,232,000,000
Accumulated other comprehensive loss	-19,000,000	-20,000,000	-33,000,000
Retained earnings	12,044,000,000	12,008,000,000	11,506,000,000
Total shareholders’ equity	6,017,000,000	5,991,000,000	5,857,000,000
Total liabilities and shareholders’ equity	$14,563,000,000	$14,431,000,000	$14,114,000,000

CONSOLIDATED_STATEMENTS_OF_INC

CONSOLIDATED STATEMENTS OF INCOME (USD $)	3 Months Ended
In Millions, except Per Share data, unless otherwise specified	2-May-15	3-May-14
Net sales	$4,123	$4,070
Cost of merchandise sold	2,600	2,574
Gross margin	1,523	1,496
Operating expenses:
Selling, general and administrative	1,016	1,000
Depreciation and amortization	227	216
Operating income	280	280
Interest expense, net	84	85
Income before income taxes	196	195
Provision for income taxes	69	70
Net income	$127	$125
Net income per share:
Basic (in dollars per share)	$0.64	$0.60
Diluted (in dollars per share)	$0.63	$0.60
Dividends declared and paid per share	$0.45	$0.39

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]
Share data in Millions
Beginning Balance at Jan. 31, 2015	$5,991,000,000	$4,000,000	$2,743,000,000	($8,744,000,000)	($20,000,000)	$12,008,000,000
Beginning Balance (in shares) at Jan. 31, 2015		367		-166
Long-term Debt, Fair Value	3,100,000,000
Comprehensive income (loss)	128,000,000				1,000,000
Net income	127,000,000					127,000,000
Stock options and awards, (in shares)		3		0
Stock options and awards	135,000,000		154,000,000
Stock Issued During Period, Value, Stock Options Exercised				-19,000,000
Dividends paid ($0.45 per common share)	-90,000,000		0	1,000,000		-91,000,000
Treasury stock purchases, (in shares)				-2
Treasury stock purchases	-147,000,000			-147,000,000
Ending Balance at May. 02, 2015	$6,017,000,000	$4,000,000	$2,897,000,000	($8,909,000,000)	($19,000,000)	$12,044,000,000
Ending Balance (in shares) at May. 02, 2015		370		-168

CONSOLIDATED_STATEMENT_OF_CHAN1

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (USD $)	3 Months Ended
In Millions, except Per Share data, unless otherwise specified	2-May-15	3-May-14
Dividends declared and paid per share	$0.45	$0.39
Treasury Stock
Stock Issued During Period Shares Stock Options Exercised And Restricted Stock Grants	0

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Millions, unless otherwise specified	2-May-15	3-May-14
Operating activities
Net income	$127	$125
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	227	216
Share-based compensation	14	11
Excess tax benefits from share-based compensation	-9	-2
Deferred income taxes	-23	5
Other non-cash revenues and expenses	10	5
Changes in operating assets and liabilities:
Merchandise inventories	-349	-105
Other current and long-term assets	28	15
Accounts payable	134	17
Accrued and other long-term liabilities	-69	-44
Income taxes	12	-64
Net cash provided by operating activities	102	179
Investing activities
Acquisition of property and equipment	-176	-176
Other	1	4
Net cash used in investing activities	-175	-172
Financing activities
Treasury stock purchases	-147	-167
Shares withheld for taxes on vested restricted shares	-18	-14
Dividends paid	-90	-80
Proceeds from financing obligations	0	3
Capital lease and financing obligation payments	-27	-29
Proceeds from stock option exercises	134	24
Excess tax benefits from share-based compensation	9	2
Net cash used in financing activities	-139	-261
Net decrease in cash and cash equivalents	-212	-254
Cash and cash equivalents at beginning of period	1,407	971
Cash and cash equivalents at end of period	1,195	717
Supplemental information:
Interest paid, net of capitalized interest	63	65
Income taxes paid	84	132
Non-Cash Investing and Financing Activities
Property and equipment acquired through additional liabilities	$10	$21

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	2-May-15
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Summary of Accounting Policies	Basis of Presentation
	The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for fiscal year end financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information, refer to the financial statements and related footnotes included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2015 (Commission File No. 1-11084) as filed with the Securities and Exchange Commission on March 20, 2015.
	Due to the seasonality of our business, results for any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year. In addition, quarterly results of operations may be impacted by the timing and amount of sales and costs associated with the opening of new stores.
	We operate as a single business unit.
	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.  Under the current pronouncement, 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.
	In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (Subtopic 835-30). This ASU requires an entity to present such costs on the balance sheet as a direct deduction from the related debt liability rather than as an asset. Under the current pronouncement, we are required to adopt the new pronouncement in the first quarter of fiscal 2016. As of May 2, 2015, we have $12 million of debt issuance costs that would be reclassified from other assets to long-term debt on the balance sheet as a part of this pronouncement.
	To conform to the current year presentation, we have corrected the presentation of $43 million of deferred income taxes that were previously recorded as long-term other assets and $24 million of other current assets that were previously recorded as an income taxes payable as of May 3, 2014.

Debt

Debt	3 Months Ended
	2-May-15
Debt [Abstract]
Debt	Debt
	Long-term debt consists of the following unsecured senior debt:
						Outstanding
	Maturity	Effective		Coupon Rate		2-May-15			3-May-14
		Rate				and
						31-Jan-15
						(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
	ASC No. 820, Fair Value Measurements and Disclosures, requires fair value measurements be classified in various pricing categories. Our long-term debt is classified as Level 1, financial instruments with unadjusted, quoted prices listed on active market exchanges. The estimated fair value of our long-term debt was $3.1 billion at May 2, 2015, January 31, 2015 and May 3, 2014.

StockBased_Compensation

Stock-Based Compensation	3 Months Ended
	2-May-15
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Stock-Based Compensation
	Stock options
	The following table summarizes our stock option activity for the three months ended May 2, 2015:
		Shares		Weighted
				Average
				Exercise
				Price
		(Shares in Thousands)
	Balance at beginning of period	6,211		$	52.95
	Exercised	(2,536	)	53.38
	Forfeited/expired	(57	)	51.82
	Balance at end of period	3,618		$	52.68
	Nonvested stock awards
	The following table summarizes nonvested stock activity, including restricted stock equivalents issued in lieu of cash dividends, for the three months ended May 2, 2015:
		Shares		Weighted
				Average
				Grant
				Date Fair
				Value
		(Shares in Thousands)
	Balance at beginning of period	2,431		$	52.29
	Granted	534		75.8
	Vested	(564	)	52.47
	Forfeited	(95	)	52.52
	Balance at end of period	2,306		$	57.52
	Performance share units
	In March 2015, 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 2015 through 2017. The fair market value of the grant was $86.87 per unit and was determined using a Monte-Carlo valuation on the date of grant. The performance share units cover a target of 131,000 shares.
	The actual number of shares which will be earned at the end of the three-year vesting period will vary based on our cumulative financial performance over the vesting period. 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 period. The payouts, if earned, will be settled in Kohl's common stock after the end of the multi-year performance period.

Contingencies

Contingencies	3 Months Ended
	2-May-15
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies
	We are subject to certain legal proceedings and claims arising out of the conduct of our business. In the opinion of management, the outcome of these proceedings and litigation will not have a material adverse impact on our consolidated financial statements.

Net_Income_Per_Section

Net Income Per Section	3 Months Ended
	2-May-15
Net Income Per Section [Abstract]
Earnings Per Share	Net Income Per Share
	The following table summarizes our basic and diluted net income per share calculations:
			Three Months Ended
			May 2,		May 3,
			2015		2014
		(In Millions)
	Numerator—Net income		$	127	$	125
	Denominator—Weighted average shares:
	Basic		200		206
	Impact of dilutive employee stock-based awards		2		2
	Diluted		202		208
	Antidilutive shares		—		7

Debt_Tables

Debt (Tables)	3 Months Ended
	2-May-15
Debt Disclosure [Abstract]
Components of long-term debt	Long-term debt consists of the following unsecured senior debt:
						Outstanding
	Maturity	Effective		Coupon Rate		2-May-15			3-May-14
		Rate				and
						31-Jan-15
						(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

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	3 Months Ended
	2-May-15
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]	The following table summarizes our stock option activity for the three months ended May 2, 2015:
		Shares		Weighted
				Average
				Exercise
				Price
		(Shares in Thousands)
	Balance at beginning of period	6,211		$	52.95
	Exercised	(2,536	)	53.38
	Forfeited/expired	(57	)	51.82
	Balance at end of period	3,618		$	52.68
	Nonvested stock awards
	The following table summarizes nonvested stock activity, including restricted stock equivalents issued in lieu of cash dividends, for the three months ended May 2, 2015:
		Shares		Weighted
				Average
				Grant
				Date Fair
				Value
		(Shares in Thousands)
	Balance at beginning of period	2,431		$	52.29
	Granted	534		75.8
	Vested	(564	)	52.47
	Forfeited	(95	)	52.52
	Balance at end of period	2,306		$	57.52
	Performance share units
	In March 2015, 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 2015 through 2017. The fair market value of the grant was $86.87 per unit and was determined using a Monte-Carlo valuation on the date of grant. The performance share units cover a target of 131,000 shares.
	The actual number of shares which will be earned at the end of the three-year vesting period will vary based on our cumulative financial performance over the vesting period. 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 period. The payouts, if earned, will be settled in Kohl's common stock after the end of the multi-year performance period.

Net_Income_Per_Section_Net_Inc

Net Income Per Section Net Income Per Section (Tables)	3 Months Ended
	2-May-15
Net Income Per Section [Abstract]
Basic and diluted net income per share calculation	The following table summarizes our basic and diluted net income per share calculations:
			Three Months Ended
			May 2,		May 3,
			2015		2014
		(In Millions)
	Numerator—Net income		$	127	$	125
	Denominator—Weighted average shares:
	Basic		200		206
	Impact of dilutive employee stock-based awards		2		2
	Diluted		202		208
	Antidilutive shares		—		7

Basis_of_Presentation_Narrativ

Basis of Presentation (Narrative) (Details) (USD $)	12 Months Ended
In Millions, unless otherwise specified	Jan. 31, 2015	2-May-15
Basis of Presentation (Narrative) [Abstract]
Deferred Finance Costs, Net		$12
Increase (Decrease) in Income Taxes Receivable	43
Income Taxes Receivable		$24

Debt_Components_of_Long_Term_D

Debt - Components of Long Term Debt (Details) (USD $)	2-May-15	Jan. 31, 2015	3-May-14
Debt Instrument [Line Items]
Long-term Debt, Fair Value	$3,100,000,000	$3,100,000,000	$3,100,000,000
Unamortized debt discount	-7,000,000	-7,000,000	-8,000,000
Long-term debt	2,793,000,000	2,793,000,000	2,792,000,000
Senior Notes
Debt Instrument [Line Items]
Effective Rate	5.54%	5.54%	5.54%
Total senior debt	2,800,000,000	2,800,000,000	2,800,000,000
Senior Notes | Four Point Seven Five Percent Senior Note Due Twenty Twenty Three [Member] [Domain] [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	4.75%
Senior Notes | Senior Notes Due 2017
Debt Instrument [Line Items]
Effective Rate	6.31%	6.31%	6.31%
Debt Instrument, Interest Rate, Stated Percentage	6.25%	6.25%	6.25%
Total senior debt	650,000,000	650,000,000	650,000,000
Senior Notes | Senior Notes Due 2021
Debt Instrument [Line Items]
Effective Rate	4.81%	4.81%	4.81%
Debt Instrument, Interest Rate, Stated Percentage	4.00%	4.00%	4.00%
Total senior debt	650,000,000	650,000,000	650,000,000
Senior Notes | Senior Notes Due 2023
Debt Instrument [Line Items]
Effective Rate	3.25%	3.25%	3.25%
Debt Instrument, Interest Rate, Stated Percentage	3.25%	3.25%	3.25%
Total senior debt	350,000,000	350,000,000	350,000,000
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%	4.78%
Total senior debt	300,000,000		300,000,000
Senior Notes | Senior Notes Due 2029
Debt Instrument [Line Items]
Effective Rate	7.36%	7.36%	7.36%
Debt Instrument, Interest Rate, Stated Percentage	7.25%	7.25%	7.25%
Total senior debt	200,000,000	200,000,000	200,000,000
Senior Notes | Senior Notes Due 2033
Debt Instrument [Line Items]
Effective Rate	6.05%	6.05%	6.05%
Debt Instrument, Interest Rate, Stated Percentage	6.00%	6.00%	6.00%
Total senior debt	300,000,000	300,000,000	300,000,000
Senior Notes | Senior Notes Due 2037
Debt Instrument [Line Items]
Effective Rate	6.89%	6.89%	6.89%
Debt Instrument, Interest Rate, Stated Percentage	6.88%	6.88%	6.88%
Total senior debt	$350,000,000	$350,000,000	$350,000,000
Four Point Seven Eight Percent Senior Note Due Twenty Twenty Three [Member] [Domain] | Senior Notes Due Twenty Twenty Three [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		4.75%	4.75%

Fair_Value_Measurements_Narrat

Fair Value Measurements (Narrative) (Details) (USD $)	2-May-15	Jan. 31, 2015	3-May-14	Feb. 01, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, at Carrying Value	$1,195,000,000	$1,407,000,000	$717,000,000	$971,000,000
Long-term Debt, Excluding Current Maturities	2,793,000,000	2,793,000,000	2,792,000,000
Long Term Investments Fair Value	$3,100,000,000	$3,100,000,000	$3,100,000,000

StockBased_Compensation_Summar

Stock-Based Compensation - Summary of Stock Based Compensation Grants (Details) (USD $)	3 Months Ended
	2-May-15	Mar. 30, 2015	Jan. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance share fair value		$86.87
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	2,306,000		2,431,000
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options			6,211,000
Restricted shares and units granted, excluding shares earned in lieu of cash dividends	534,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$75.80
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price			$52.95
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	-2,536,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price	$53.38
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	-57,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price	$51.82
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	3,618,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$52.68
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value	$57.52		$52.29
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	-564,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value	$52.47
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	-95,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$52.52
Performance restricted shares units		131,000

Net_Income_Per_Section_Net_Inc1

Net Income Per Section Net Income Per Section (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	2-May-15	3-May-14
Net Income Per Section [Abstract]
Net income	$127	$125
Basic	200	206
Impact of dilutive employee stock-based awards	2	2
Diluted	202	208
Antidilutive shares	0	7