Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Jan. 30, 2016 | Mar. 09, 2016 | Jul. 31, 2015 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 30, 2016 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | kss | ||
Entity Registrant Name | KOHLS CORP | ||
Entity Central Index Key | 885,639 | ||
Current Fiscal Year End Date | --01-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 185,168,909 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 12 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 707 | $ 1,407 |
Merchandise inventories | 4,038 | 3,814 |
Other | 331 | 359 |
Total current assets | 5,076 | 5,580 |
Property and equipment, net | 8,308 | 8,515 |
Other assets | 222 | 238 |
Total assets | 13,606 | 14,333 |
Current liabilities: | ||
Accounts payable | 1,251 | 1,511 |
Accrued liabilities | 1,206 | 1,160 |
Income taxes payable | 130 | 78 |
Current portion of capital lease and financing obligations | 127 | 110 |
Total current liabilities | 2,714 | 2,859 |
Long-term debt | 2,792 | 2,780 |
Capital lease and financing obligations | 1,789 | 1,858 |
Deferred income taxes | 257 | 298 |
Other long-term liabilities | 563 | 547 |
Shareholders’ equity: | ||
Common stock - 370 and 367 million shares issued | 4 | 4 |
Paid-in capital | 2,944 | 2,743 |
Treasury stock, at cost, 184 and 166 million shares | (9,769) | (8,744) |
Accumulated other comprehensive loss | (17) | (20) |
Retained earnings | 12,329 | 12,008 |
Total shareholders’ equity | 5,491 | 5,991 |
Total liabilities and shareholders’ equity | $ 13,606 | $ 14,333 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares shares in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Common stock, shares issued | 370 | 367 |
Treasury stock, shares | 184 | 166 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Net sales | $ 19,204 | $ 19,023 | $ 19,031 |
Cost of merchandise sold | 12,265 | 12,098 | 12,087 |
Gross margin | 6,939 | 6,925 | 6,944 |
Operating expenses: | |||
Selling, general and administrative | 4,452 | 4,350 | 4,313 |
Depreciation and amortization | 934 | 886 | 889 |
Operating income | 1,553 | 1,689 | 1,742 |
Interest expense, net | 327 | 340 | 338 |
Gains (Losses) on Extinguishment of Debt | 169 | 0 | 0 |
Income before income taxes | 1,057 | 1,349 | 1,404 |
Provision for income taxes | 384 | 482 | 515 |
Net income | $ 673 | $ 867 | $ 889 |
Net income per share: | |||
Basic (in dollars per share) | $ 3.48 | $ 4.28 | $ 4.08 |
Diluted (in dollars per share) | 3.46 | 4.24 | 4.05 |
Common Stock, Dividends, Per Share, Declared | $ 1.80 | $ 1.56 | $ 1.40 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Comprehensive income (loss) | $ 673 | $ 867 | $ 889 |
Interest rate derivatives: | |||
Reclassification adjustment for interest expense on interest rate derivatives included in net income | 3 | 3 | 3 |
Other comprehensive income | 3 | 14 | 11 |
Comprehensive income | $ 676 | $ 881 | $ 900 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings [Member] |
Beginning Balance (in shares) at Feb. 02, 2013 | 360 | (138) | ||||
Beginning Balance at Feb. 02, 2013 | $ 6,048 | $ 4 | $ 2,454 | $ (7,243) | $ (45) | $ 10,878 |
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) | $ 3 | (305) | |||
Treasury stock purchases, (in shares) | (15) | |||||
Treasury stock purchases | (799) | $ (799) | ||||
Ending Balance (in shares) at Feb. 01, 2014 | 364 | (153) | ||||
Ending Balance at Feb. 01, 2014 | 5,978 | $ 4 | 2,598 | $ (8,052) | (34) | 11,462 |
Comprehensive income (loss) | 881 | 14 | ||||
Net Income (Loss) Attributable to Parent | 867 | |||||
Stock options and awards, (in shares) | 3 | (1) | ||||
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) | (12) | |||||
Treasury stock purchases | (677) | $ (677) | ||||
Ending Balance (in shares) at Jan. 31, 2015 | 367 | (166) | ||||
Ending Balance at Jan. 31, 2015 | 5,991 | $ 4 | $ 2,743 | $ (8,744) | (20) | 12,008 |
Comprehensive income (loss) | 676 | 3 | ||||
Net Income (Loss) Attributable to Parent | 673 | |||||
Stock options and awards, (in shares) | 3 | 201 | (1) | |||
Stock options and awards, net of tax | 174 | $ (27) | ||||
Dividends paid ($1.40 in 2013, $1.28 in 2012, and $1.00 in 2011) per common share) | 349 | $ (3) | 352 | |||
Treasury stock purchases, (in shares) | 17 | |||||
Treasury stock purchases | 1,001 | $ 1,001 | ||||
Ending Balance (in shares) at Jan. 30, 2016 | 370 | (184) | ||||
Ending Balance at Jan. 30, 2016 | $ 5,491 | $ 4 | $ 2,944 | $ (9,769) | $ (17) | $ 12,329 |
CONSOLIDATED STATEMENT OF CHAN7
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid per share | $ 1.80 | $ 1.56 | $ 1.40 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Operating activities | |||
Net income | $ 673 | $ 867 | $ 889 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 934 | 886 | 889 |
Share-based compensation | 48 | 48 | 55 |
Excess tax benefits from share-based compensation | (10) | (3) | (3) |
Deferred income taxes | (38) | 49 | (4) |
Other non-cash expenses, net | 24 | 31 | 43 |
Extinguishment of Debt, Amount | 169 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Merchandise inventories | (215) | 68 | (116) |
Other current and long-term assets | 43 | (30) | (7) |
Accounts payable | (260) | 146 | 58 |
Accrued and other long-term liabilities | 53 | 30 | 142 |
Income taxes | 53 | (68) | (62) |
Net cash provided by operating activities | 1,474 | 2,024 | 1,884 |
Investing activities | |||
Acquisition of property and equipment | (690) | (682) | (643) |
Sales of investments in auction rate securities | 0 | 82 | 1 |
Other | 9 | 7 | 19 |
Net cash used in investing activities | (681) | (593) | (623) |
Financing activities | |||
Treasury stock purchases | (1,001) | (677) | (799) |
Shares withheld for taxes on vested restricted shares | (27) | (19) | (13) |
Dividends paid | (349) | (317) | (302) |
Proceeds from issuance of debt | 1,098 | 0 | 300 |
Deferred financing costs | (10) | 0 | (4) |
Long-term debt payments | (1,085) | 0 | 0 |
Payments of Debt Extinguishment Costs | (163) | 0 | 0 |
Deferred financing costs | 1 | 6 | 1 |
Capital lease and financing obligation payments | (114) | (114) | (115) |
Proceeds from stock option exercises | 147 | 123 | 102 |
Excess tax benefits from share-based compensation | 10 | 3 | 3 |
Net cash used in financing activities | (1,493) | (995) | (827) |
Net (decrease) increase in cash and cash equivalents | (700) | 436 | 434 |
Cash and cash equivalents at beginning of period | 1,407 | 971 | 537 |
Cash and cash equivalents at end of period | 707 | 1,407 | 971 |
Supplemental information: | |||
Interest paid, net of capitalized interest | 318 | 329 | 326 |
Income taxes paid | 372 | 502 | 561 |
Non-Cash Investing and Financing Activities | |||
Property and equipment acquired through capital lease and financing obligations | $ 63 | $ 41 | $ 121 |
Accounting Pronouncements State
Accounting Pronouncements Statement - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Accounting Policies [Abstract] | ||
Debt Issuance Cost Reclass | $ 18 | $ 13 |
Deferred Tax Reclass | 97 | 84 |
Deferred Tax Asset Reclass | 27 | 32 |
FIN 48 Reclass | $ 30 | $ 15 |
Business and Summary of Account
Business and Summary of Accounting Policies | 12 Months Ended |
Jan. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Summary of Accounting Policies | Business and Summary of Accounting Policies Business As of January 30, 2016 , we operated 1,164 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 consistent merchandise with assortment differences attributable to local 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 31 st 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 2015 January 30, 2016 52 2014 January 31, 2015 52 2013 February 1, 2014 52 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 $92 million at January 30, 2016 and $95 million at January 31, 2015 . 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 would 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 30, Jan 31, (Dollars in Millions) Land $ 1,110 $ 1,103 Buildings and improvements: Owned 7,999 7,844 Leased 1,848 1,848 Fixtures and equipment 1,804 2,032 Computer hardware and software 1,590 1,368 Construction in progress 167 210 Total property and equipment, at cost 14,518 14,405 Less accumulated depreciation (6,210 ) (5,890 ) Property and equipment, net $ 8,308 $ 8,515 Construction in progress includes buildings, building 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 material impairments were recorded in 2015 , 2014 , or 2013 as a result of the tests performed. 1. Business and Summary of Accounting Policies (continued) Accrued Liabilities Accrued liabilities consist of the following: Jan 30, Jan 31, (Dollars in Millions) Gift cards and merchandise return cards $ 323 $ 307 Payroll and related fringe benefits 117 135 Sales, property and use taxes 184 185 Credit card liabilities 88 106 Marketing 77 63 Accrued capital 64 73 Shipping and other distribution costs 79 27 Other 274 264 Accrued liabilities $ 1,206 $ 1,160 Self-Insurance We use a combination of insurance and self-insurance for a number of risks. Liabilities associated with workers’ compensation, general liability, and employee-related health care benefits 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 $58 million at January 30, 2016 and $53 million at January 31, 2015 . Although these amounts are actuarially determined based on analysis of historical trends, the amounts that we will ultimately disburse could differ from these estimates. 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: Loss on Interest Rate Derivatives Unrealized Losses on Investments Accumulated Other Comprehensive Loss (Dollars in Millions) Balance at February 1, 2014 $ (23 ) $ (11 ) $ (34 ) Other comprehensive income 3 11 14 Balance at January 31, 2015 (20 ) — (20 ) Other comprehensive income 3 — 3 Balance at January 30, 2016 $ (17 ) $ — $ (17 ) 1. Business and Summary of Accounting Policies (continued) The tax effects of each component of other comprehensive income are as follows: 2015 2014 2013 (Dollars in Millions) Interest rate derivatives: Before-tax amounts $ 5 $ 5 $ 5 Tax expense (2 ) (2 ) (2 ) After-tax amounts 3 3 3 Unrealized gains on investments: Before-tax amounts — 18 12 Tax expense — (7 ) (4 ) After-tax amounts — 11 8 Other comprehensive income $ 3 $ 14 $ 11 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 • Inventory shrink • Markdowns • Freight expenses associated with moving merchandise from our vendors to our distribution centers • Shipping and handling expenses of omni-channel sales • Terms cash discount • Compensation and benefit costs including: • Stores • Corporate headquarters, including buying and merchandising • Distribution centers • Occupancy and operating costs of our retail, distribution and corporate facilities • Net revenues from the Kohl’s credit card program • Freight expenses associated with moving merchandise from our distribution centers to our retail stores and between distribution and retail facilities • Marketing 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. 1. Business and Summary of Accounting Policies (continued) Vendor Allowances We receive consideration for a variety of vendor-sponsored programs, such as markdown allowances, volume rebates and promotion and marketing support. The vendor consideration is recorded as earned either as a reduction of 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 marketing allowances are intended to offset our marketing costs to promote vendors’ merchandise. Markdown allowances and volume rebates are recorded as a reduction of inventory costs. Loyalty Program We maintain a customer loyalty 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. 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 No. 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. 1. Business and Summary of Accounting Policies (continued) All other leases are considered operating leases in accordance with ASC No. 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. Marketing Marketing costs, which include primarily digital, direct mail, newspaper inserts, television, and radio broadcast, are expensed when the marketing is first seen. Marketing costs, net of related vendor allowances, were as follows: 2015 2014 2013 (Dollars in Millions) Gross marketing costs $ 1,171 $ 1,189 $ 1,185 Vendor allowances (160 ) (165 ) (172 ) Net marketing costs $ 1,011 $ 1,024 $ 1,013 Net marketing costs as a percent of net sales 5.3 % 5.4 % 5.3 % 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 for stock options, nonvested stock and performance share units. The information required to compute basic and diluted net income per share is as follows: 2015 2014 2013 (Dollars in Millions, Except per Share Data) Numerator—net income $ 673 $ 867 $ 889 Denominator—weighted average shares Basic 193 203 218 Impact of dilutive employee stock options (a) 2 1 2 Diluted 195 204 220 Net income per share: Basic $ 3.48 $ 4.28 $ 4.08 Diluted $ 3.46 $ 4.24 $ 4.05 (a) Excludes 1 million share-based awards for 2015 , 3 million share-based awards for 2014 and 10 million share-based awards for 2013 as the impact of such awards was antidilutive. 1. Business and Summary of Accounting Policies (continued) 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 In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", which supersedes the revenue recognition requirements in ASC No. 605, Revenue Recognition. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date", which defers the effective date of ASU 2014-09 for all entities by one year. The original 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. This ASU is effective in the first quarter of 2018. It will change the way we account for sales returns, our loyalty program and certain promotional programs. Based on current estimates, we do not expect this ASU to have a material impact on our financial statements and, therefore, we expect to use the modified retrospective method to adopt the standard. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)". The core principle of the standard is that a lessee should recognize the assets and liabilities that arise from leases. A lessee should recognize in its statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. We will be required to adopt the new standard in the first quarter of 2019. We are currently evaluating the impact this new standard will have on our financial statements. During 2015, we adopted ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs (Subtopic 835-30)" which requires us to present debt issuance costs on the balance sheet as a direct deduction from the related debt liability rather than as an asset. We also adopted ASU No. 2015-17, "Balance Sheet Classification of Deferred Taxes (Topic 740)" which requires us to present deferred tax liabilities and assets as noncurrent in our balance sheet and corrected the presentation of certain other tax assets and liabilities. A summary of reclassifications is as follows: Prior Classification Current Classification 2015 2014 (Dollars in Millions) Debt issuance costs Other current and long-term assets Long-term debt $ 18 $ 13 Deferred taxes Current deferred tax asset Long-term deferred tax liability $ 97 $ 84 Deferred taxes Current deferred tax asset Other long-term assets $ 27 $ 32 Deferred taxes Other long-term liabilities Long-term deferred tax liability $ 30 $ 15 |
Debt
Debt | 12 Months Ended |
Jan. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt consists of the following unsecured senior debt: January 30, 2016 Outstanding January 31, 2015 Maturity Effective Rate Coupon Rate Outstanding (Dollars in Millions) 2021 4.81 % 4.00 % $ 650 $ 650 2023 3.25 % 3.25 % 350 350 2023 4.78 % 4.75 % 300 300 2025 4.25 % 4.25 % 650 — 2029 7.36 % 7.25 % 99 200 2033 6.05 % 6.00 % 166 300 2037 6.89 % 6.88 % 150 350 2045 5.57 % 5.55 % 450 — 2017 n/a n/a — 650 4.88 % 2,815 2,800 Unamortized debt discount (5 ) (7 ) Deferred financing costs (18 ) (13 ) Long-term debt $ 2,792 $ 2,780 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 $2.8 billion at January 30, 2016 and $3.1 billion at January 31, 2015 . During 2015, we completed a cash tender offer and redemption for $1,085 million of senior unsecured debt. We recognized a $169 million loss on extinguishment of debt which included a $163 million bond tender premium paid to holders of the debt and a $6 million non-cash write-off of deferred financing costs and original issue discounts associated with the extinguished debt. In July 2015, we issued $650 million of 4.25% notes due in July 2025 and $450 million of 5.55% notes due in July 2045. Both notes include semi-annual, interest-only payments which began January 17, 2016. Proceeds of the issuances and cash on hand were used to pay the principal, premium and accrued interest of the debt which was settled in July and August 2015. In July 2015, we entered into an Amended and Restated Credit Agreement with various lenders which provides for a $1.0 billion senior unsecured five-year revolving credit facility that will mature in June 2020. Among other things, the agreement includes a maximum leverage ratio financial covenant (which is consistent with the ratio under our prior credit agreement) and restrictions on liens and subsidiary indebtedness. As of January 30, 2016 and January 31, 2015 , there were no outstanding balances on the revolving credit facility. We borrowed $400 million during the third quarter of 2015 with an effective interest rate of 1.27% and repaid the entire balance in the fourth quarter. Our various debt agreements contain covenants including limitations on additional indebtedness and certain financial tests. As of January 30, 2016 , 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 $35 million at January 30, 2016 , issued under uncommitted lines with two banks. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Jan. 30, 2016 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments Rent expense charged to operations was $279 million for 2015 , $277 million for 2014 , and $270 million for 2013 . 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 30, 2016 were as follows: Capital Lease and Financing Obligations Operating Leases (Dollars in Millions) Fiscal year: 2016 $ 293 $ 244 2017 286 245 2018 267 246 2019 249 244 2020 235 240 Thereafter 2,639 4,408 3,969 $ 5,627 Non-cash gain on future sale of property 456 Amount representing interest (2,509 ) Present value of lease payments $ 1,916 |
Benefit Plans
Benefit Plans | 12 Months Ended |
Jan. 30, 2016 | |
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, subject to certain statutory limits. We also offer a non-qualified deferred compensation plan to a group of executives which provides for pre-tax compensation deferrals up to 100% of salary and/or bonus. Deferrals and credited investment returns are 100% vested. The total costs for these benefit plans were $49 million for 2015, $43 million for 2014, and $49 million for 2013. |
Income Taxes
Income Taxes | 12 Months Ended |
Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Deferred income taxes consist of the following: Jan 30, Jan 31, (Dollars in Millions) Deferred tax liabilities: Property and equipment $ 1,319 $ 1,385 Deferred tax assets: Merchandise inventories 24 24 Accrued and other liabilities, including stock-based compensation 151 168 Capital lease and financing obligations 752 773 Accrued step rent liability 106 100 Unrealized loss on interest rate swap 11 13 Federal benefit on state tax reserves 45 41 1,089 1,119 Net deferred tax liability $ 230 $ 266 Deferred tax assets included in other long-term assets totaled $27 million as of January 30, 2016 and $32 million as of January 31, 2015 . The components of the provision for income taxes were as follows: 2015 2014 2013 (Dollars in Millions) Current federal $ 397 $ 400 $ 473 Current state 34 36 45 Deferred federal (35 ) 48 6 Deferred state (12 ) (2 ) (9 ) $ 384 $ 482 $ 515 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: 2015 2014 2013 Provision at statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 2.1 1.3 2.2 Tax-exempt interest income — — (0.2 ) Other federal tax credits (0.8 ) (0.6 ) (0.3 ) Provision for income taxes 36.3 % 35.7 % 36.7 % 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 2009 through 2015 tax years. State returns subject to examination vary depending upon the state. Generally, the 2012 through 2015 tax years are subject to state examination. The earliest open period is 2004. 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. 5. Income Taxes (continued) A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows: 2015 2014 (Dollars in Millions) Balance at beginning of year $ 123 $ 125 Increases due to: Tax positions taken in prior years 16 — Tax positions taken in current year 19 21 Decreases due to: Tax positions taken in prior years (6 ) (16 ) Settlements with taxing authorities (10 ) (2 ) Lapse of applicable statute of limitations (3 ) (5 ) Balance at end of year $ 139 $ 123 Not included in the unrecognized tax benefits reconciliation above are gross unrecognized accrued interest and penalties of $23 million at both January 30, 2016 and January 31, 2015 . We had no interest and penalty expense for 2015 , $2 million for 2014 , and $3 million for 2013. Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $101 million as of January 30, 2016 and $89 million as of January 31, 2015 . It is reasonably possible that our unrecognized tax positions may change within the next 12 months, primarily as a result of ongoing audits. While it is possible that one or more of these examinations may be resolved in the next year, it is not anticipated that a significant impact to the unrecognized tax benefit balance will occur. We have both payables and receivables for current income taxes recorded on our balance sheet. Receivables included in other current assets totaled $26 million as of January 30, 2016 and $25 million as of January 31, 2015 . |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jan. 30, 2016 | |
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 30, 2016 , there were 18.5 million shares authorized and 11.2 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 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. Outstanding 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 was estimated using a Black-Scholes option valuation model. The weighted average fair value of options granted in 2014 was $12.23 and in 2013 was $10.68 . The following table summarizes our stock option activity: 2015 2014 2013 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price (Shares in Thousands) Balance at beginning of year 6,211 $ 52.95 11,375 $ 56.05 15,212 $ 53.96 Granted — — 186 54.69 575 47.86 Exercised (2,815 ) 52.79 (2,647 ) 46.87 (2,494 ) 41.02 Forfeited/expired (320 ) 57.36 (2,703 ) 72.21 (1,918 ) 56.59 Balance at end of year 3,076 $ 52.65 6,211 $ 52.95 11,375 $ 56.05 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 $52 million in 2015 and $30 million in both 2014 and 2013 . Additional information related to stock options outstanding and exercisable at January 30, 2016 , segregated by exercise price range, is summarized below: Stock Options Outstanding Stock Options Exercisable Range of Exercise Prices Shares Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Shares Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price (Shares in Thousands) $ 36.13 – $ 46.00 272 1.7 $ 42.75 219 1.2 $ 42.30 $ 46.01 – $ 49.00 759 3.4 47.76 385 3.6 47.84 $ 49.01 – $ 51.00 439 2.6 50.07 339 2.3 50.08 $ 51.01 – $ 55.00 749 2.8 52.73 447 2.3 52.87 $ 55.01 – $ 65.00 525 2.0 57.32 454 1.6 57.46 $ 65.01 – $ 77.62 332 1.0 67.75 332 1.0 67.75 3,076 2.5 $ 52.65 2,176 2.1 $ 53.71 Intrinsic value (in thousands) $ 3,450 $ 2,393 The intrinsic value of outstanding and exercisable stock options represents the excess of our closing stock price on January 30, 2016 ( $49.75 ) over the exercise price multiplied by the applicable number of stock options. Nonvested stock awards We have also awarded shares of nonvested common stock to eligible key employees and to our Board of Directors. Substantially all awards have restriction periods tied primarily to employment and/or service. Employee awards generally vest over five years. Director awards vest over the term to which the director was elected, generally one year. In lieu of cash dividends, 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. 6. Stock-Based Compensation (continued) The following table summarizes nonvested stock activity, including restricted stock equivalents issued in lieu of cash dividends: 2015 2014 2013 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value (Shares in Thousands) Balance at beginning of year 2,431 $ 52.29 2,653 $ 50.56 2,323 $ 50.47 Granted 955 65.02 910 56.13 1,189 49.22 Vested (957 ) 52.61 (818 ) 50.69 (706 ) 48.00 Forfeited (218 ) 55.16 (314 ) 51.47 (153 ) 50.48 Balance at end of year 2,211 $ 57.37 2,431 $ 52.29 2,653 $ 50.56 The aggregate fair value of awards at the time of vesting was $50 million in 2015 , $41 million in 2014 and $34 million in 2013 . Performance share units Kohl's grants performance-based restricted stock units ("performance share units") to certain executives. The performance measurement period for these performance share units is three fiscal years. The fair market value of the grants are determined using a Monte-Carlo valuation on the date of grant. The actual number of shares which will be earned at the end of the three-year vesting periods will vary based on our cumulative financial performance over the vesting periods. The number of performance share units earned will be modified up or down based on Kohl’s Relative Total Shareholder Return against a defined peer group during the vesting periods. The payouts, if earned, will be settled in Kohl's common stock after the end of each multi-year performance periods. The following table summarizes performance share unit activity by year of grant: 2015 2014 2013 Units outstanding (at Target) 160,000 14,000 170,000 Weighted average Monte-Carlo valuation at grant date $78.82 $62.39 $57.37 Performance period 2015-2017 2014-2016 2014-2016 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 both 2015 and 2014 and $55 million for 2013 . At January 30, 2016 , we had approximately $93 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. 30, 2016 | |
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 Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Jan. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) 2015 First Second Third Fourth (Dollars in Millions, Except per Share Data) Net sales $ 4,123 $ 4,267 $ 4,427 $ 6,387 Gross margin $ 1,523 $ 1,662 $ 1,643 $ 2,112 Selling, general and administrative expenses $ 1,016 $ 1,005 $ 1,099 $ 1,332 Loss on extinguishment of debt $ — $ 131 $ 38 $ — Net income $ 127 $ 130 $ 120 $ 296 Basic shares 200 196 191 187 Basic net income per share $ 0.64 $ 0.66 $ 0.63 $ 1.58 Diluted shares 202 197 192 187 Diluted net income per share $ 0.63 $ 0.66 $ 0.63 $ 1.58 2014 First Second Third Fourth (Dollars 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 Selling, general and administrative $ 1,000 $ 981 $ 1,097 $ 1,272 Net income $ 125 $ 232 $ 142 $ 369 Basic shares 206 204 202 199 Basic net income per share $ 0.60 $ 1.14 $ 0.70 $ 1.85 Diluted shares 208 205 203 201 Diluted net income per share $ 0.60 $ 1.13 $ 0.70 $ 1.83 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. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 2 Months Ended |
Mar. 18, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events On February 25, 2016, we announced plans to close 18 underperforming stores in fiscal 2016. We announced the specific locations in March 2016. We currently expect to incur $150 to $170 million in charges as a result of these planned closures and the organizational realignment at our corporate offices which were announced in February 2016. We estimate that approximately $55 - $65 million of the charges will be recorded in the first quarter of 2016, with the remainder recorded in the second quarter of 2016. |
Business and Summary of Accou19
Business and Summary of Accounting Policies (Policies) | 12 Months Ended | |
Jan. 30, 2016 | Jan. 31, 2015 | |
Vendor Allowances [Line Items] | ||
Business | Business As of January 30, 2016 , we operated 1,164 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 consistent merchandise with assortment differences attributable to local 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 31 st 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 2015 January 30, 2016 52 2014 January 31, 2015 52 2013 February 1, 2014 52 | |
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 $92 million at January 30, 2016 and $95 million at January 31, 2015 . | |
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 would record an additional reserve if the future estimated selling price is less than cost. | |
Property and equipment | Construction in progress includes buildings, building 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 | 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 material impairments were recorded in 2015 , 2014 , or 2013 as a result of the tests performed. | |
Accrued liabilities | Accrued Liabilities Accrued liabilities consist of the following: Jan 30, Jan 31, (Dollars in Millions) Gift cards and merchandise return cards $ 323 $ 307 Payroll and related fringe benefits 117 135 Sales, property and use taxes 184 185 Credit card liabilities 88 106 Marketing 77 63 Accrued capital 64 73 Shipping and other distribution costs 79 27 Other 274 264 Accrued liabilities $ 1,206 $ 1,160 | |
Self-insurance | Self-Insurance We use a combination of insurance and self-insurance for a number of risks. Liabilities associated with workers’ compensation, general liability, and employee-related health care benefits 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 $58 million at January 30, 2016 and $53 million at January 31, 2015 . 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: Loss on Interest Rate Derivatives Unrealized Losses on Investments Accumulated Other Comprehensive Loss (Dollars in Millions) Balance at February 1, 2014 $ (23 ) $ (11 ) $ (34 ) Other comprehensive income 3 11 14 Balance at January 31, 2015 (20 ) — (20 ) Other comprehensive income 3 — 3 Balance at January 30, 2016 $ (17 ) $ — $ (17 ) 1. Business and Summary of Accounting Policies (continued) The tax effects of each component of other comprehensive income are as follows: 2015 2014 2013 (Dollars in Millions) Interest rate derivatives: Before-tax amounts $ 5 $ 5 $ 5 Tax expense (2 ) (2 ) (2 ) After-tax amounts 3 3 3 Unrealized gains on investments: Before-tax amounts — 18 12 Tax expense — (7 ) (4 ) After-tax amounts — 11 8 Other comprehensive income $ 3 $ 14 $ 11 | |
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 • Inventory shrink • Markdowns • Freight expenses associated with moving merchandise from our vendors to our distribution centers • Shipping and handling expenses of omni-channel sales • Terms cash discount • Compensation and benefit costs including: • Stores • Corporate headquarters, including buying and merchandising • Distribution centers • Occupancy and operating costs of our retail, distribution and corporate facilities • Net revenues from the Kohl’s credit card program • Freight expenses associated with moving merchandise from our distribution centers to our retail stores and between distribution and retail facilities • Marketing 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 marketing 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 marketing allowances are intended to offset our marketing costs to promote vendors’ merchandise. Markdown allowances and volume rebates are recorded as a reduction of inventory costs. | |
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 No. 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. 1. Business and Summary of Accounting Policies (continued) All other leases are considered operating leases in accordance with ASC No. 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 | ing Marketing costs, which include primarily digital, direct mail, newspaper inserts, television, and radio broadcast, are expensed when the marketing is first seen. Marketing costs, net of related vendor allowances, were as follows: 2015 2014 2013 (Dollars in Millions) Gross marketing costs $ 1,171 $ 1,189 $ 1,185 Vendor allowances (160 ) (165 ) (172 ) Net marketing costs $ 1,011 $ 1,024 $ 1,013 Net marketing costs as a percent of net sales 5.3 % 5.4 % 5.3 % | |
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 for stock options, nonvested stock and performance share units. The information required to compute basic and diluted net income per share is as follows: 2015 2014 2013 (Dollars in Millions, Except per Share Data) Numerator—net income $ 673 $ 867 $ 889 Denominator—weighted average shares Basic 193 203 218 Impact of dilutive employee stock options (a) 2 1 2 Diluted 195 204 220 Net income per share: Basic $ 3.48 $ 4.28 $ 4.08 Diluted $ 3.46 $ 4.24 $ 4.05 (a) Excludes 1 million share-based awards for 2015 , 3 million share-based awards for 2014 and 10 million share-based awards for 2013 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 In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)", which supersedes the revenue recognition requirements in ASC No. 605, Revenue Recognition. In August 2015, the FASB issued ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date", which defers the effective date of ASU 2014-09 for all entities by one year. The original 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. This ASU is effective in the first quarter of 2018. It will change the way we account for sales returns, our loyalty program and certain promotional programs. Based on current estimates, we do not expect this ASU to have a material impact on our financial statements and, therefore, we expect to use the modified retrospective method to adopt the standard. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)". The core principle of the standard is that a lessee should recognize the assets and liabilities that arise from leases. A lessee should recognize in its statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. We will be required to adopt the new standard in the first quarter of 2019. We are currently evaluating the impact this new standard will have on our financial statements. During 2015, we adopted ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs (Subtopic 835-30)" which requires us to present debt issuance costs on the balance sheet as a direct deduction from the related debt liability rather than as an asset. We also adopted ASU No. 2015-17, "Balance Sheet Classification of Deferred Taxes (Topic 740)" which requires us to present deferred tax liabilities and assets as noncurrent in our balance sheet and corrected the presentation of certain other tax assets and liabilities. A summary of reclassifications is as follows: Prior Classification Current Classification 2015 2014 (Dollars in Millions) Debt issuance costs Other current and long-term assets Long-term debt $ 18 $ 13 Deferred taxes Current deferred tax asset Long-term deferred tax liability $ 97 $ 84 Deferred taxes Current deferred tax asset Other long-term assets $ 27 $ 32 Deferred taxes Other long-term liabilities Long-term deferred tax liability $ 30 $ 15 |
Business and Summary of Accou20
Business and Summary of Accounting Policies Loyalty Program (Policies) | 12 Months Ended |
Jan. 30, 2016 | |
Accounting Policies [Abstract] | |
Revenue Recognition, Loyalty Programs [Policy Text Block] | We maintain a customer loyalty 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. |
Business and Summary of Accou21
Business and Summary of Accounting Policies Fair Value Measurements (Policies) | 12 Months Ended |
Jan. 30, 2016 | |
Accounting Policies [Abstract] | |
Fair Value Measurement, Policy [Policy Text Block] | 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. |
Business and Summary of Accou22
Business and Summary of Accounting Policies Share-Based Compensation (Policies) | 12 Months Ended |
Jan. 30, 2016 | |
Accounting Policies [Abstract] | |
Share-Based Compensation [Text Block] | 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. |
Business and Summary of Accou23
Business and Summary of Accounting Policies (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
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 2015 January 30, 2016 52 2014 January 31, 2015 52 2013 February 1, 2014 52 |
Property and equipment | Property and equipment consist of the following: Jan 30, Jan 31, (Dollars in Millions) Land $ 1,110 $ 1,103 Buildings and improvements: Owned 7,999 7,844 Leased 1,848 1,848 Fixtures and equipment 1,804 2,032 Computer hardware and software 1,590 1,368 Construction in progress 167 210 Total property and equipment, at cost 14,518 14,405 Less accumulated depreciation (6,210 ) (5,890 ) Property and equipment, net $ 8,308 $ 8,515 |
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 30, Jan 31, (Dollars in Millions) Gift cards and merchandise return cards $ 323 $ 307 Payroll and related fringe benefits 117 135 Sales, property and use taxes 184 185 Credit card liabilities 88 106 Marketing 77 63 Accrued capital 64 73 Shipping and other distribution costs 79 27 Other 274 264 Accrued liabilities $ 1,206 $ 1,160 |
Long-term liabilities | |
Accumulated other comprehensive loss | Accumulated other comprehensive loss consists of the following: Loss on Interest Rate Derivatives Unrealized Losses on Investments Accumulated Other Comprehensive Loss (Dollars in Millions) Balance at February 1, 2014 $ (23 ) $ (11 ) $ (34 ) Other comprehensive income 3 11 14 Balance at January 31, 2015 (20 ) — (20 ) Other comprehensive income 3 — 3 Balance at January 30, 2016 $ (17 ) $ — $ (17 ) |
Tax effects of components of other comprehensive (loss) income | The tax effects of each component of other comprehensive income are as follows: 2015 2014 2013 (Dollars in Millions) Interest rate derivatives: Before-tax amounts $ 5 $ 5 $ 5 Tax expense (2 ) (2 ) (2 ) After-tax amounts 3 3 3 Unrealized gains on investments: Before-tax amounts — 18 12 Tax expense — (7 ) (4 ) After-tax amounts — 11 8 Other comprehensive income $ 3 $ 14 $ 11 |
Advertising | costs, net of related vendor allowances, were as follows: 2015 2014 2013 (Dollars in Millions) Gross marketing costs $ 1,171 $ 1,189 $ 1,185 Vendor allowances (160 ) (165 ) (172 ) Net marketing costs $ 1,011 $ 1,024 $ 1,013 Net marketing costs as a percent of net sales 5.3 % 5.4 % 5.3 % |
Net income per share | The information required to compute basic and diluted net income per share is as follows: 2015 2014 2013 (Dollars in Millions, Except per Share Data) Numerator—net income $ 673 $ 867 $ 889 Denominator—weighted average shares Basic 193 203 218 Impact of dilutive employee stock options (a) 2 1 2 Diluted 195 204 220 Net income per share: Basic $ 3.48 $ 4.28 $ 4.08 Diluted $ 3.46 $ 4.24 $ 4.05 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Debt Disclosure [Abstract] | |
Components of long-term debt | Long-term debt consists of the following unsecured senior debt: January 30, 2016 Outstanding January 31, 2015 Maturity Effective Rate Coupon Rate Outstanding (Dollars in Millions) 2021 4.81 % 4.00 % $ 650 $ 650 2023 3.25 % 3.25 % 350 350 2023 4.78 % 4.75 % 300 300 2025 4.25 % 4.25 % 650 — 2029 7.36 % 7.25 % 99 200 2033 6.05 % 6.00 % 166 300 2037 6.89 % 6.88 % 150 350 2045 5.57 % 5.55 % 450 — 2017 n/a n/a — 650 4.88 % 2,815 2,800 Unamortized debt discount (5 ) (7 ) Deferred financing costs (18 ) (13 ) Long-term debt $ 2,792 $ 2,780 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Operating Leased Assets [Line Items] | |
Schedule of future minimum lease payments | Future minimum lease payments at January 30, 2016 were as follows: Capital Lease and Financing Obligations Operating Leases (Dollars in Millions) Fiscal year: 2016 $ 293 $ 244 2017 286 245 2018 267 246 2019 249 244 2020 235 240 Thereafter 2,639 4,408 3,969 $ 5,627 Non-cash gain on future sale of property 456 Amount representing interest (2,509 ) Present value of lease payments $ 1,916 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Deferred income taxes | Deferred income taxes consist of the following: Jan 30, Jan 31, (Dollars in Millions) Deferred tax liabilities: Property and equipment $ 1,319 $ 1,385 Deferred tax assets: Merchandise inventories 24 24 Accrued and other liabilities, including stock-based compensation 151 168 Capital lease and financing obligations 752 773 Accrued step rent liability 106 100 Unrealized loss on interest rate swap 11 13 Federal benefit on state tax reserves 45 41 1,089 1,119 Net deferred tax liability $ 230 $ 266 |
Components of the provision for income tax | The components of the provision for income taxes were as follows: 2015 2014 2013 (Dollars in Millions) Current federal $ 397 $ 400 $ 473 Current state 34 36 45 Deferred federal (35 ) 48 6 Deferred state (12 ) (2 ) (9 ) $ 384 $ 482 $ 515 |
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: 2015 2014 2013 Provision at statutory rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 2.1 1.3 2.2 Tax-exempt interest income — — (0.2 ) Other federal tax credits (0.8 ) (0.6 ) (0.3 ) Provision for income taxes 36.3 % 35.7 % 36.7 % |
Reconciliation of gross amount of unrecognized tax benefits | A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows: 2015 2014 (Dollars in Millions) Balance at beginning of year $ 123 $ 125 Increases due to: Tax positions taken in prior years 16 — Tax positions taken in current year 19 21 Decreases due to: Tax positions taken in prior years (6 ) (16 ) Settlements with taxing authorities (10 ) (2 ) Lapse of applicable statute of limitations (3 ) (5 ) Balance at end of year $ 139 $ 123 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Performance Share Activity | The following table summarizes performance share unit activity by year of grant: 2015 2014 2013 Units outstanding (at Target) 160,000 14,000 170,000 Weighted average Monte-Carlo valuation at grant date $78.82 $62.39 $57.37 Performance period 2015-2017 2014-2016 2014-2016 |
Fair value of option awards | he fair value of each option award was estimated using a Black-Scholes option valuation model. The weighted average fair value of options granted in 2014 was $12.23 and in 2013 was $10.68 . |
Summary of stock option activity | The following table summarizes our stock option activity: 2015 2014 2013 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price (Shares in Thousands) Balance at beginning of year 6,211 $ 52.95 11,375 $ 56.05 15,212 $ 53.96 Granted — — 186 54.69 575 47.86 Exercised (2,815 ) 52.79 (2,647 ) 46.87 (2,494 ) 41.02 Forfeited/expired (320 ) 57.36 (2,703 ) 72.21 (1,918 ) 56.59 Balance at end of year 3,076 $ 52.65 6,211 $ 52.95 11,375 $ 56.05 |
Stock options outstanding and exercisable by exercise price range | Additional information related to stock options outstanding and exercisable at January 30, 2016 , segregated by exercise price range, is summarized below: Stock Options Outstanding Stock Options Exercisable Range of Exercise Prices Shares Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price Shares Weighted Average Remaining Contractual Life (in years) Weighted Average Exercise Price (Shares in Thousands) $ 36.13 – $ 46.00 272 1.7 $ 42.75 219 1.2 $ 42.30 $ 46.01 – $ 49.00 759 3.4 47.76 385 3.6 47.84 $ 49.01 – $ 51.00 439 2.6 50.07 339 2.3 50.08 $ 51.01 – $ 55.00 749 2.8 52.73 447 2.3 52.87 $ 55.01 – $ 65.00 525 2.0 57.32 454 1.6 57.46 $ 65.01 – $ 77.62 332 1.0 67.75 332 1.0 67.75 3,076 2.5 $ 52.65 2,176 2.1 $ 53.71 Intrinsic value (in thousands) $ 3,450 $ 2,393 |
Summary of nonvested atock activity | The following table summarizes nonvested stock activity, including restricted stock equivalents issued in lieu of cash dividends: 2015 2014 2013 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value (Shares in Thousands) Balance at beginning of year 2,431 $ 52.29 2,653 $ 50.56 2,323 $ 50.47 Granted 955 65.02 910 56.13 1,189 49.22 Vested (957 ) 52.61 (818 ) 50.69 (706 ) 48.00 Forfeited (218 ) 55.16 (314 ) 51.47 (153 ) 50.48 Balance at end of year 2,211 $ 57.37 2,431 $ 52.29 2,653 $ 50.56 |
Quarterly Financial Informati28
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Jan. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data | 2015 First Second Third Fourth (Dollars in Millions, Except per Share Data) Net sales $ 4,123 $ 4,267 $ 4,427 $ 6,387 Gross margin $ 1,523 $ 1,662 $ 1,643 $ 2,112 Selling, general and administrative expenses $ 1,016 $ 1,005 $ 1,099 $ 1,332 Loss on extinguishment of debt $ — $ 131 $ 38 $ — Net income $ 127 $ 130 $ 120 $ 296 Basic shares 200 196 191 187 Basic net income per share $ 0.64 $ 0.66 $ 0.63 $ 1.58 Diluted shares 202 197 192 187 Diluted net income per share $ 0.63 $ 0.66 $ 0.63 $ 1.58 2014 First Second Third Fourth (Dollars 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 Selling, general and administrative $ 1,000 $ 981 $ 1,097 $ 1,272 Net income $ 125 $ 232 $ 142 $ 369 Basic shares 206 204 202 199 Basic net income per share $ 0.60 $ 1.14 $ 0.70 $ 1.85 Diluted shares 208 205 203 201 Diluted net income per share $ 0.60 $ 1.13 $ 0.70 $ 1.83 |
Business and Summary of Accou29
Business and Summary of Accounting Policies (Narrative) (Details) | 12 Months Ended | ||
Jan. 30, 2016USD ($)Store$ / sharesshares | Jan. 31, 2015USD ($) | Feb. 01, 2014 | |
Business And Summary Of Accounting Policies [Line Items] | |||
Number of family-oriented department stores (in stores) | Store | 1,164 | ||
Authorized common stock | shares | 800,000,000 | ||
Common stock, par value | $ / shares | $ 0.01 | ||
Preferred stock, shares authorized | shares | 10,000,000 | ||
Preferred stock, par value | $ / shares | $ 0.01 | ||
Weeks in reporting period | P52W | P52W | P52W |
Credit and debit card receivables | $ 92,000,000 | $ 95,000,000 | |
Estimated Total Self Insurance Related Liabilities | $ 58,000,000 | $ 53,000,000 | |
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 |
Business and Summary of Accou30
Business and Summary of Accounting Policies Property and Equipment (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 1,110 | $ 1,103 |
Store fixtures and equipment | 1,804 | 2,032 |
Capitalized Computer Software, Gross | 1,590 | 1,368 |
Construction in progress | 167 | 210 |
Total property and equipment, at cost | 14,518 | 14,405 |
Less accumulated depreciation | (6,210) | (5,890) |
Property and equipment, net | 8,308 | 8,515 |
Owned | ||
Property, Plant and Equipment [Line Items] | ||
Buildings and Improvements, Gross | 7,999 | 7,844 |
Leased | ||
Property, Plant and Equipment [Line Items] | ||
Investment Building and Improvements, Gross | $ 1,848 | $ 1,848 |
Business and Summary of Accou31
Business and Summary of Accounting Policies Ranges of Useful Lives (Details) | 12 Months Ended |
Jan. 30, 2016 | |
Minimum | Building Improvements [Member] | |
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 Improvements [Member] | |
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 Accou32
Business and Summary of Accounting Policies Accrued Liabilities (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Gift cards and merchandise return cards | $ 323 | $ 307 |
Payroll and related fringe benefits | 117 | 135 |
Sales, property and use taxes | 184 | 185 |
Credit card liabilities | 88 | 106 |
Accrued Advertising | 77 | 63 |
Accrued Capital | 64 | 73 |
Accrued Shipping & Distribution | 79 | 27 |
Other | 274 | 264 |
Accrued liabilities | $ 1,206 | $ 1,160 |
Business and Summary of Accou33
Business and Summary of Accounting Policies Long-Term Liabilities (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Liabilities, Noncurrent | $ 563 | $ 547 |
Business and Summary of Accou34
Business and Summary of Accounting Policies Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | $ 0 | $ 11 | $ 8 |
Beginning Balance | 5,991 | 5,978 | 6,048 |
Ending Balance | 5,491 | 5,991 | 5,978 |
Unrealized Gains Losses on Investments | |||
Beginning Balance | 0 | (11) | |
Other comprehensive income | 0 | 11 | |
Ending Balance | 0 | 0 | (11) |
Loss On Interest Rate Derivatives | |||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 3 | 3 | |
Beginning Balance | (20) | (23) | |
Ending Balance | (17) | (20) | (23) |
Accumulated Other Comprehensive (Loss) | |||
Beginning Balance | (20) | (34) | (45) |
Other comprehensive income | 3 | 14 | |
Ending Balance | $ (17) | $ (20) | $ (34) |
Business and Summary of Accou35
Business and Summary of Accounting Policies Tax Effects Of Components Of Other Comprehensive (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Before-tax amounts, Unrealized gains (losses) on investements | $ 0 | $ 18 | $ 12 |
Tax (expense) benefit, Unrealized gains (losses) on investments | 0 | (7) | (4) |
After-tax amounts, Unrealized gains (losses) on investments | 0 | 11 | 8 |
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 | $ 3 | $ 14 | $ 11 |
Business and Summary of Accou36
Business and Summary of Accounting Policies Adverstising (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Advertising Costs Exclusive Of Vendor Allowances | $ 1,171 | $ 1,189 | $ 1,185 |
Allowances Received From Vendors For Advertising Expenses Incurred | (160) | (165) | (172) |
Advertising Expense | $ 1,011 | $ 1,024 | $ 1,013 |
Net Advertising To Net Sales | 5.30% | 5.40% | 5.30% |
Business and Summary of Accou37
Business and Summary of Accounting Policies Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||
Numerator—net income | $ 296 | $ 120 | $ 130 | $ 127 | $ 369 | $ 142 | $ 232 | $ 125 | $ 673 | $ 867 | $ 889 |
Denominator - Weighted average shares, Basic | 187 | 191 | 196 | 200 | 199 | 202 | 204 | 206 | 193 | 203 | 218 |
Impact of dilutive employee stock options | 2 | 1 | 2 | ||||||||
Weighted average shares, Diluted | 187 | 192 | 197 | 202 | 201 | 203 | 205 | 208 | 195 | 204 | 220 |
Net income per share, Basic | $ 1.58 | $ 0.63 | $ 0.66 | $ 0.64 | $ 1.85 | $ 0.70 | $ 1.14 | $ 0.60 | $ 3.48 | $ 4.28 | $ 4.08 |
Net income per share, Diluted | $ 1.58 | $ 0.63 | $ 0.66 | $ 0.63 | $ 1.83 | $ 0.70 | $ 1.13 | $ 0.60 | $ 3.46 | $ 4.24 | $ 4.05 |
Excluded options as the ipact of such options was antidilutive | 1 | 3 | 10 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Long-term Debt, Fair Value | $ 2,800 | $ 2,800 | $ 3,100 | ||||
Repayments of Debt | 1,085 | ||||||
Gains (Losses) on Extinguishment of Debt | 0 | $ (38) | $ (131) | $ 0 | 169 | 0 | $ 0 |
Payments of Debt Extinguishment Costs | 163 | 0 | $ 0 | ||||
Write off of Deferred Debt Issuance Cost | $ 6 | ||||||
Line of Credit Facility, Description | 1 | ||||||
Proceeds from Lines of Credit | $ 400 | ||||||
Line of Credit Facility, Interest Rate Description | 0.0127 | ||||||
Trade Letters of Credit and Stand by Letters of Credit | |||||||
Line of credit facilty outstanding amount | 35 | $ 35 | |||||
Senior Notes Due Twenty Forty Five [Domain] | Senior Notes | |||||||
Senior Notes | 450 | 450 | |||||
Senior Notes Due Twenty Twenty Five [Member] | Senior Notes | |||||||
Senior Notes | 650 | 650 | |||||
Senior Notes | |||||||
Senior Notes | $ 2,815 | $ 2,815 | 2,800 | ||||
Long-term Debt, Weighted Average Interest Rate | 4.88% | 4.88% | |||||
Senior Notes | Senior Notes Due Twenty Forty Five [Domain] | |||||||
Senior Notes | $ 450 | $ 450 | 0 | ||||
Long-term Debt, Weighted Average Interest Rate | 5.57% | 5.57% | |||||
Debt instrument, interest rate | 5.55% | 5.55% | |||||
Senior Notes | Senior Notes Due Twenty Twenty Five [Member] | |||||||
Senior Notes | $ 650 | $ 650 | 0 | ||||
Long-term Debt, Weighted Average Interest Rate | 4.25% | 4.25% | |||||
Debt instrument, interest rate | 4.25% | 4.25% | |||||
Senior Notes | Senior Notes Due Twenty Seventeen [Member] | |||||||
Senior Notes | $ 0 | $ 0 | 650 | ||||
Senior Notes | Four Point Seven Eight Percent Senior Note Due Twenty Twenty Three [Member] [Domain] | |||||||
Senior Notes | $ 300 | $ 300 | 300 | ||||
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] | |||||||
Senior Notes | $ 350 | $ 350 | 350 | ||||
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 | |||||||
Senior Notes | $ 650 | $ 650 | 650 | ||||
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] | |||||||
Senior Notes | $ 99 | $ 99 | 200 | ||||
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] | |||||||
Senior Notes | $ 166 | $ 166 | 300 | ||||
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] | |||||||
Senior Notes | $ 150 | $ 150 | $ 350 | ||||
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 ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Debt Instrument [Line Items] | ||
Deferred Finance Costs, Net | $ 18 | $ (13) |
Unamortized debt discount | 5 | (7) |
Long-term debt | $ 2,792 | 2,780 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Effective Rate | 4.88% | |
Total senior debt | $ 2,815 | 2,800 |
Senior Notes | Senior Notes Due 2017 | ||
Debt Instrument [Line Items] | ||
Total senior debt | $ 0 | 650 |
Senior Notes | Senior Notes Due 2021 | ||
Debt Instrument [Line Items] | ||
Effective Rate | 4.81% | |
Total senior debt | $ 650 | 650 |
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | |
Senior Notes | Senior Notes Due Twenty Twenty Three [Member] | ||
Debt Instrument [Line Items] | ||
Effective Rate | 3.25% | |
Total senior debt | $ 350 | 350 |
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | |
Senior Notes | Senior Notes Due 2029 | ||
Debt Instrument [Line Items] | ||
Effective Rate | 7.36% | |
Total senior debt | $ 99 | 200 |
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | |
Senior Notes | Senior Notes Due 2033 | ||
Debt Instrument [Line Items] | ||
Effective Rate | 6.05% | |
Total senior debt | $ 166 | 300 |
Debt Instrument, Interest Rate, Stated Percentage | 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% | |
Total senior debt | $ 300 | 300 |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | |
Senior Notes | Senior Notes Due Twenty Twenty Five [Member] | ||
Debt Instrument [Line Items] | ||
Effective Rate | 4.25% | |
Total senior debt | $ 650 | 0 |
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | |
Senior Notes | Senior Notes Due 2037 | ||
Debt Instrument [Line Items] | ||
Effective Rate | 6.89% | |
Total senior debt | $ 150 | 350 |
Debt Instrument, Interest Rate, Stated Percentage | 6.88% | |
Senior Notes | Senior Notes Due Twenty Forty Five [Domain] | ||
Debt Instrument [Line Items] | ||
Effective Rate | 5.57% | |
Total senior debt | $ 450 | $ 0 |
Debt Instrument, Interest Rate, Stated Percentage | 5.55% |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | Feb. 02, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $ 707 | $ 1,407 | $ 971 | $ 537 |
Long-term Debt, Fair Value | 2,800 | 3,100 | ||
Long-term debt | $ 2,792 | $ 2,780 |
Lease Commitments Lease Commitm
Lease Commitments Lease Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Operating Leased Assets [Line Items] | |||
Rent expense charged | $ 279 | $ 277 | $ 270 |
Lease renewal period term | 5 years | ||
Minimum | |||
Operating Leased Assets [Line Items] | |||
Lease renewal period term | 4 years | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Lease renewal period term | 8 years |
Lease Commitments Schedule of F
Lease Commitments Schedule of Future Minimum Lease Payments (Details) $ in Millions | Jan. 30, 2016USD ($) |
Operating Leased Assets [Line Items] | |
2013, Operating Leases | $ 244 |
2014, Operating Leases | 245 |
2015, Operating Leases | 246 |
2016, Operating Leases | 244 |
2017, Operating Leases | 240 |
Thereafter, Operating Leases | 4,408 |
Total future payments due, Operating Leases | 5,627 |
2013, Capital Leases and Financing Obligations | 293 |
2014, Capital Leases and Financing Obligations | 286 |
2015, Capital Leases and Financing Obligations | 267 |
2016, Capital Leases and Financing Obligations | 249 |
2017, Capital Leases and Financing Obligations | 235 |
Thereafter, Capital Leases and Financing Obligations | 2,639 |
Total future minimum payments due, Capital Leases and Financing Obligations | 3,969 |
Non-cash gain on future sale of property | 456 |
Amount representing interest | (2,509) |
Present value of lease payments | $ 1,916 |
Benefit Plans Benefit Plans (De
Benefit Plans Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
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 | $ 49 | $ 43 | $ 49 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Income Tax Examination [Line Items] | |||
Income Tax Examination, Penalties and Interest Accrued | $ 23 | $ 23 | |
Income Tax Examination, Penalties and Interest Expense | 0 | 2 | $ 3 |
Unrecognized tax benefits that would impact effective tax rate | 101 | 89 | |
Income Taxes Receivable, Current | $ 26 | $ 25 |
Deferred Income Taxes (Details)
Deferred Income Taxes (Details) - USD ($) $ in Millions | Jan. 30, 2016 | Jan. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Asset Reclass | $ 27 | $ 32 |
Property and equipment | 1,319 | 1,385 |
Merchandise inventories | 24 | 24 |
Accrued and other liabilities, including stock-based compensation | 151 | 168 |
Capital lease and financing obligations | 752 | 773 |
Accrued step rent liability | 106 | 100 |
Unrealized loss on interest rate swap | 11 | 13 |
Deferred Tax Assets, Other | 45 | 41 |
Deferred tax assets | 1,089 | 1,119 |
Deferred tax assets, net | $ (230) | $ (266) |
Income Taxes Components of the
Income Taxes Components of the Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Income Tax Disclosure [Abstract] | |||
Current federal | $ 397 | $ 400 | $ 473 |
Current state | 34 | 36 | 45 |
Deferred federal | (35) | 48 | 6 |
Deferred state | (12) | (2) | (9) |
Provision for income taxes | $ 384 | $ 482 | $ 515 |
Income Taxes Items Affecting St
Income Taxes Items Affecting Statutory Corporate Tax Rate (Details) - USD ($) | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Income Tax Disclosure [Abstract] | |||
Provision at statutory rate | 35.00% | 35.00% | 35.00% |
Income Tax Reconciliation, State and Local Income Taxes | $ 0.021 | $ 0.013 | $ 0.022 |
Tax-exempt interest income | 0.00% | 0.00% | (0.20%) |
Effective Income Tax Rate Reconciliation, Tax Credits | (0.80%) | (0.60%) | (0.30%) |
Provision for income taxes | 36.30% | 35.70% | 36.70% |
Income Taxes Reconciliation of
Income Taxes Reconciliation of Gross Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Income Tax Disclosure [Abstract] | |||
Income Tax Examination, Penalties and Interest Expense | $ 0 | $ 2 | $ 3 |
Income Tax Examination, Penalties and Interest Accrued | 23 | 23 | |
Income Taxes Receivable, Current | 26 | 25 | |
Balance at beginning of year | 123 | 125 | |
Tax positions taken in prior years | 16 | 0 | |
Tax positions taken in current year | 19 | 21 | |
Tax positions taken in prior years | (6) | (16) | |
Settlements with taxing authorities | (10) | (2) | |
Lapse of applicable statute of limitations | (3) | (5) | |
Balance at end of year | $ 139 | $ 123 | $ 125 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||||
Jan. 30, 2016USD ($)$ / sharesshares | Jan. 31, 2015USD ($) | Feb. 01, 2014USD ($) | Mar. 31, 2014$ / shares | Jan. 13, 2014$ / shares | Jan. 29, 2011Installment | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Authorized | shares | 18.5 | |||||
Available for grant | shares | 11.2 | |||||
Number of vesting installments | Installment | 5 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 52 | $ 30 | $ 30 | |||
Closing stock price | $ / shares | $ 49.75 | |||||
Aggregate fair value of awards at the time of vesting | $ 50 | 41 | 34 | |||
Performance share fair value | $ / shares | $ 62.39 | $ 57.37 | ||||
Total share-based compensation expense | 48 | $ 48 | $ 55 | |||
Total unrecognized share-based compensation expense for al share-based payment plans | $ 93 | |||||
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 Optio
Estimate of Fair Value of Option Award using Black-Scholes Option Valuation Model (Details) | 12 Months Ended | |
Jan. 31, 2015 | Feb. 01, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | 12.23 | 10.68 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 52 | $ 30 | $ 30 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Balance at beginning of year, shares | 6,211 | 11,375 | 15,212 |
Granted, shares | 0 | 186 | 575 |
Exercised, shares | (2,815) | (2,647) | (2,494) |
Forfeited/expired, shares | (320) | (2,703) | (1,918) |
Balance at end of quarter, shares | 3,076 | 6,211 | 11,375 |
Balance at beginning of year, Weighted Average Exercise Price (in dollars per share) | $ 52.95 | $ 56.05 | $ 53.96 |
Granted, Weighted Average Exercise Price (in dollars per share) | 0 | 54.69 | 47.86 |
Exercised, Weighted Average Exercise Price (in dollars per share) | 52.79 | 46.87 | 41.02 |
Forfeited/expired, Weighted Average Exercise Price (in dollars per share) | 57.36 | 72.21 | 56.59 |
Balance at end of quarter, Weighted Average Exercise Price (in dollars per share) | $ 52.65 | $ 52.95 | $ 56.05 |
Stock-Based Compensation Stock
Stock-Based Compensation Stock Options Outstanding and Exercisable by Exercise Price Range (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Jan. 30, 2016USD ($)$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock Options Outstanding, Shares | shares | 3,076 |
Stock Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 2 years 6 months |
Stock Options Outstanding, Weighted Average Exercise Price | $ / shares | $ 52,650 |
Stock Options Exercisable, Shares | shares | 2,176 |
Stock Options Outstanding, Intrinsic Value | $ | $ 3,450 |
Stock Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 2 years 1 month |
Stock Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 53,710 |
Stock Options Exercisable, Intrinsic Value | $ | $ 2,393 |
Exercise Prices Range Thirty Six Point One Three To Forty Six Point Zero Zero [Domain] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Stock Options Outstanding, Shares | shares | 272 |
Stock Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 1 year 8 months |
Stock Options Outstanding, Weighted Average Exercise Price | $ / shares | $ 42,750 |
Stock Options Exercisable, Shares | shares | 219 |
Stock Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 1 year 2 months |
Stock Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 42,300 |
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] | |
Stock Options Outstanding, Shares | shares | 759 |
Stock Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 3 years 5 months |
Stock Options Outstanding, Weighted Average Exercise Price | $ / shares | $ 47,760 |
Stock Options Exercisable, Shares | shares | 385 |
Stock Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 3 years 7 months |
Stock Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 47,840 |
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] | |
Stock Options Outstanding, Shares | shares | 439 |
Stock Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 2 years 7 months |
Stock Options Outstanding, Weighted Average Exercise Price | $ / shares | $ 50,070 |
Stock Options Exercisable, Shares | shares | 339 |
Stock Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 2 years 3 months |
Stock Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 50,080 |
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] | |
Stock Options Outstanding, Shares | shares | 749 |
Stock Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 2 years 9 months |
Stock Options Outstanding, Weighted Average Exercise Price | $ / shares | $ 52,730 |
Stock Options Exercisable, Shares | shares | 447 |
Stock Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 2 years 3 months |
Stock Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 52,870 |
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] | |
Stock Options Outstanding, Shares | shares | 525 |
Stock Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 2 years |
Stock Options Outstanding, Weighted Average Exercise Price | $ / shares | $ 57,320 |
Stock Options Exercisable, Shares | shares | 454 |
Stock Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 1 year 7 months |
Stock Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 57,460 |
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] | |
Stock Options Outstanding, Shares | shares | 332 |
Stock Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 1 year |
Stock Options Outstanding, Weighted Average Exercise Price | $ / shares | $ 67,750 |
Stock Options Exercisable, Shares | shares | 332 |
Stock Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 1 year |
Stock Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 67,750 |
Summary of Nonvested Stock Acti
Summary of Nonvested Stock Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
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 | 2,431 | 2,653 | 2,323 |
Granted, shares | 955 | 910 | 1,189 |
Vested, shares | (957) | (818) | (706) |
Forfeited, shares | (218) | (314) | (153) |
Balance at end of quarter, shares | 2,211 | 2,431 | 2,653 |
Balance at beginning of year, Weighted Average Grant Date Fair Value (in dollars per share) | $ 52.29 | $ 50.56 | $ 50.47 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | 65.02 | 56.13 | 49.22 |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | 52.61 | 50.69 | 48 |
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | 55.16 | 51.47 | 50.48 |
Balance at end of quarter, Weighted Average Grant Date Fair Value (in dollars per share) | $ 57.37 | $ 52.29 | $ 50.56 |
Stock-Based Compensation Perfor
Stock-Based Compensation Performance Share Units (Details) - $ / shares shares in Thousands | 12 Months Ended | 24 Months Ended | 36 Months Ended | |||
Jan. 30, 2016 | Jan. 28, 2017 | Jan. 28, 2017 | Jan. 28, 2017 | Mar. 31, 2014 | Jan. 13, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||
Performance restricted shares units duration | 160,000 | |||||
Performance restricted shares units (instant) | 14,000 | 170,000 | ||||
Performance share fair value duration | $ 78.82 | |||||
Performance share fair value | $ 62.39 | $ 57.37 | ||||
Performance Period 2015 [Text Block] | 2015-2017 | |||||
Performance Period 2014 [Text Block] | 2014-2016 | |||||
Performance Period [Text Block] | 2014-2016 |
Quarterly Financial Informati55
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jan. 30, 2016 | Oct. 31, 2015 | Aug. 01, 2015 | May. 02, 2015 | Jan. 31, 2015 | Nov. 01, 2014 | Aug. 02, 2014 | May. 03, 2014 | Jan. 30, 2016 | Jan. 31, 2015 | Feb. 01, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 6,387 | $ 4,427 | $ 4,267 | $ 4,123 | $ 6,337 | $ 4,374 | $ 4,242 | $ 4,070 | $ 19,204 | $ 19,023 | $ 19,031 |
Gross margin | 2,112 | 1,643 | 1,662 | 1,523 | 2,147 | 1,628 | 1,654 | 1,496 | 6,939 | 6,925 | 6,944 |
Selling, general and administrative | 1,332 | 1,099 | 1,005 | 1,016 | 1,272 | 1,097 | 981 | 1,000 | 4,452 | 4,350 | 4,313 |
Gains (Losses) on Extinguishment of Debt | 0 | 38 | 131 | 0 | (169) | 0 | 0 | ||||
Net income | $ 296 | $ 120 | $ 130 | $ 127 | $ 369 | $ 142 | $ 232 | $ 125 | $ 673 | $ 867 | $ 889 |
Basic shares | 187 | 191 | 196 | 200 | 199 | 202 | 204 | 206 | 193 | 203 | 218 |
Basic net income per share | $ 1.58 | $ 0.63 | $ 0.66 | $ 0.64 | $ 1.85 | $ 0.70 | $ 1.14 | $ 0.60 | $ 3.48 | $ 4.28 | $ 4.08 |
Diluted shares | 187 | 192 | 197 | 202 | 201 | 203 | 205 | 208 | 195 | 204 | 220 |
Diluted net income per share | $ 1.58 | $ 0.63 | $ 0.66 | $ 0.63 | $ 1.83 | $ 0.70 | $ 1.13 | $ 0.60 | $ 3.46 | $ 4.24 | $ 4.05 |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Events (Details) - Employee Severance - Subsequent Event - USD ($) $ in Millions | 3 Months Ended | |
Apr. 30, 2016 | Feb. 25, 2016 | |
Minimum | ||
Subsequent Event [Line Items] | ||
Expected charges | $ 150 | |
Maximum | ||
Subsequent Event [Line Items] | ||
Expected charges | $ 170 | |
Scenario, Forecast | Minimum | ||
Subsequent Event [Line Items] | ||
Restructuring charges | $ 55 | |
Scenario, Forecast | Maximum | ||
Subsequent Event [Line Items] | ||
Restructuring charges | $ 65 |