Statement Of Financial Position
Statement Of Financial Position Classified (USD $) | |||
In Millions | Oct. 31, 2009
| Jan. 31, 2009
| Nov. 01, 2008
|
Current assets: | |||
Cash | $232 | $167 | $243 |
Short-term investments | 1,299 | 509 | 36 |
Merchandise inventories | 3,807 | 2,799 | 3,712 |
Deferred income taxes | 69 | 74 | 76 |
Other | 168 | 170 | 165 |
Total current assets | 5,575 | 3,719 | 4,232 |
Property and equipment, net | 7,082 | 6,984 | 6,991 |
Long-term investments | 325 | 332 | 345 |
Favorable lease rights, net | 198 | 201 | 199 |
Goodwill | 9 | 9 | 9 |
Other assets | 121 | 108 | 110 |
Total assets | 13,310 | 11,353 | 11,886 |
Current liabilities: | |||
Accounts payable | 2,071 | 881 | 1,644 |
Accrued liabilities | 905 | 831 | 769 |
Income taxes payable | 14 | 105 | 1 |
Short-term debt | 0 | 0 | 302 |
Current portion of capital leases | 17 | 17 | 17 |
Total current liabilities | 3,007 | 1,834 | 2,733 |
Long-term debt and capital leases | 2,054 | 2,053 | 2,057 |
Deferred income taxes | 390 | 320 | 314 |
Other long-term liabilities | 464 | 407 | 387 |
Shareholders' equity: | |||
Common stock | 4 | 4 | 4 |
Paid-in capital | 2,060 | 1,971 | 1,955 |
Treasury stock, at cost, 46 shares at October 31, 2009, January 31, 2009 and November 1, 2008 | (2,639) | (2,638) | (2,638) |
Accumulated other comprehensive loss | (38) | (46) | (38) |
Retained earnings | 8,008 | 7,448 | 7,112 |
Total shareholders' equity | 7,395 | 6,739 | 6,395 |
Total liabilities and shareholders' equity | $13,310 | $11,353 | $11,886 |
1_Statement Of Financial Positi
Statement Of Financial Position Classified (Parenthetical) (USD $) | |||
Share data in Millions | Oct. 31, 2009
| Jan. 31, 2009
| Nov. 01, 2008
|
Treasury stock, shares | 46 | 46 | 46 |
Statement Of Income
Statement Of Income (USD $) | ||||
In Millions, except Per Share data | 3 Months Ended
Oct. 31, 2009 | 3 Months Ended
Nov. 01, 2008 | 9 Months Ended
Oct. 31, 2009 | 9 Months Ended
Nov. 01, 2008 |
Net sales | $4,051 | $3,804 | $11,496 | $11,153 |
Cost of merchandise sold (exclusive of depreciation shown separately below) | 2,512 | 2,381 | 7,068 | 6,920 |
Gross margin | 1,539 | 1,423 | 4,428 | 4,233 |
Operating expenses: | ||||
Selling, general, and administrative | 1,027 | 982 | 2,954 | 2,834 |
Depreciation and amortization | 150 | 135 | 435 | 398 |
Preopening expenses | 23 | 21 | 49 | 38 |
Operating income | 339 | 285 | 990 | 963 |
Interest expense, net | 31 | 28 | 93 | 81 |
Income before income taxes | 308 | 257 | 897 | 882 |
Provision for income taxes | 115 | 97 | 337 | 333 |
Net income | $193 | $160 | $560 | $549 |
Basic: | ||||
Basic | 0.63 | 0.53 | 1.84 | 1.79 |
Average number of shares | 305 | 305 | 305 | 306 |
Diluted: | ||||
Diluted | 0.63 | 0.52 | 1.83 | 1.79 |
Average number of shares | 308 | 305 | 306 | 307 |
Statement Of Shareholders Equit
Statement Of Shareholders Equity And Other Comprehensive Income (USD $) | |||||||
In Millions | Common Stock Amount
| Paid-In Capital
| Treasury Stock
| Accumulated Other Comprehensive Loss
| Retained Earnings
| Total
| |
Beginning Balance at Jan. 31, 2009 | $4 | $1,971 | ($2,638) | ($46) | $7,448 | $6,739 | |
Beginning Balance at Jan. 31, 2009 | 351 | ||||||
Net income | 560 | 560 | |||||
Other comprehensive income: | |||||||
Unrealized gain on investments, net of tax | 8 | 8 | |||||
Share-based compensation | 49 | 49 | |||||
Exercise of stock options | 2 | ||||||
Exercise of stock options | 44 | 44 | |||||
Net income tax impact from exercise of stock options | (4) | (4) | |||||
Treasury stock purchases | (1) | (1) | |||||
Ending Balance at Oct. 31, 2009 | 353 | ||||||
Ending Balance at Oct. 31, 2009 | 4 | 2,060 | (2,639) | (38) | 8,008 | 7,395 | |
Beginning Balance at Aug. 01, 2009 | 4 | ||||||
Other comprehensive income: | |||||||
Ending Balance at Oct. 31, 2009 | $4 |
Statement Of Cash Flows Indirec
Statement Of Cash Flows Indirect (USD $) | ||||
In Millions | 3 Months Ended
Oct. 31, 2009 | 3 Months Ended
Nov. 01, 2008 | 9 Months Ended
Oct. 31, 2009 | 9 Months Ended
Nov. 01, 2008 |
Operating activities | ||||
Net income | $193 | $160 | $560 | $549 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization, including debt discount and deferred financing fees | 436 | 399 | ||
Share-based compensation | 45 | 39 | ||
Excess tax benefits from share-based compensation | 3 | 0 | ||
Deferred income taxes | 69 | 71 | ||
Other non-cash revenues and expenses | 39 | 18 | ||
Changes in operating assets and liabilities: | ||||
Merchandise inventories | (1,005) | (854) | ||
Other current and long-term assets | 2 | (30) | ||
Accounts payable | 1,190 | 811 | ||
Accrued and other long-term liabilities | 115 | (47) | ||
Income taxes | (96) | (128) | ||
Net cash provided by operating activities | 1,358 | 828 | ||
Investing activities | ||||
Acquisition of property and equipment and favorable lease rights | (550) | (843) | ||
Net purchases of short-term investments | (790) | (6) | ||
Purchases of long-term investments | 0 | (53) | ||
Sales of long-term investments | 20 | 93 | ||
Other | (1) | 6 | ||
Net cash used in investing activities | (1,321) | (803) | ||
Financing activities | ||||
Net borrowings under credit facilities | 0 | 302 | ||
Capital lease payments | (12) | (9) | ||
Treasury stock purchases | (1) | (262) | ||
Excess tax benefits from share-based compensation | (3) | 0 | ||
Proceeds from stock option exercises | 44 | 6 | ||
Net cash provided by financing activities | 28 | 37 | ||
Net increase in cash | 65 | 62 | ||
Cash at beginning of period | 167 | 181 | ||
Cash at end of period | 232 | 243 | 232 | 243 |
Supplemental information: | ||||
Interest paid, net of capitalized interest | 82 | 93 | ||
Income taxes paid | $366 | $390 |
1.Basis of Presentation
1.Basis of Presentation | |
9 Months Ended
Oct. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
1.Basis of Presentation | 1. Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for fiscal year end financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information, refer to the financial statements and related footnotes included in our 2008 Annual Report on Form 10-K (Commission File No.1-11084) filed with the Securities and Exchange Commission. Due to the seasonality of our business, results for any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year. In addition, quarterly results of operations depend significantly upon the timing and amount of sales and costs associated with the opening of new stores. We operate as a single business unit. Certain reclassifications have been made to the prior period Condensed Consolidated Balance Sheets and Statements of Cash Flows to conform to the 2009 presentation. The $15 million reclassification was between Other Current Assets and Accrued Liabilities and had no impact on Net Cash Provided by Operating Activities in our Statements of Cash Flows. |
2.Debt
2.Debt | |
9 Months Ended
Oct. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
2.Debt | 2. Debt Long-term debt consists of the following: Maturing Weighted Average Effective Rate October31, 2009 January31, 2009 November1, 2008 (Dollars in Millions) Non-callable and unsecured senior debt: 2011 6.59 % $ 400 $ 400 $ 400 2017 6.31 % 650 650 650 2029 7.36 % 200 200 200 2033 6.05 % 300 300 300 2037 6.89 % 350 350 350 Total senior debt 6.55 % 1,900 1,900 1,900 Capital lease obligations 178 177 181 Unamortized debt discount (7 ) (7 ) (7 ) Less current portion (17 ) (17 ) (17 ) Long-term debt and capital leases $ 2,054 $ 2,053 $ 2,057 Based on quoted market prices (Level 1per Accounting Standards Codification (ASC) No.820, Fair Value Measurements and Disclosures, formerly Statement of Financial Accounting Standards (SFAS) No.157), the estimated fair value of our senior debt was approximately $2.1 billion at October31, 2009. |
3.Share-Based Compensation
3.Share-Based Compensation | |
9 Months Ended
Oct. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
3.Share-Based Compensation | 3. Share-Based Compensation We grant share-based compensation, including options to purchase shares of our common stock and nonvested stock, pursuant to various plans. Annual grants of stock options and nonvested stock are generally made to eligible employees 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. The Black-Scholes option valuation model was used to estimate the fair value of each option award during the first nine months of the respective fiscal year based on the following assumptions: 2009 2008 Volatility 42.8 % 36.6 % Risk-free interest rate 1.8 % 2.6 % Expected life in years 5.4 5.3 Dividend yield 0 % 0 % Weighted-average fair value at grant date $ 17.51 $ 16.24 The following table summarizes our stock option activity for the first nine months of 2009 and 2008: 2009 2008 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price (Shares in Thousands) Balance at beginning of year 19,134 $ 53.01 17,313 $ 55.79 Granted 2,942 42.51 3,092 43.77 Forfeited/expired (722 ) 56.50 (1,122 ) 59.26 Exercised (1,114 ) 39.31 (134 ) 40.92 Balance at end of quarter 20,240 $ 52.11 19,149 $ 53.75 The following table summarizes our nonvested stock activity for the first nine months of 2009 and 2008: 2009 2008 Shares Weighted Average Grant Date Fair Value Shares Weighted Average GrantDate FairValue (Shares in Thousands) Balance at beginning of year 276 $ 54.39 150 $ 69.98 Granted 715 43.04 170 46.42 Forfeited (6 ) 45.57 (1 ) 42.89 Vested (72 ) 58.55 (54 ) 64.57 Balance at end of quarter 913 $ 45.26 265 $ 56.13 Total share-based compensation expense was $18 million for the three months ended October31, 2009 and $16 million for the three months ended November1, 2008. Total share-based compensation expense was $45 million for the nine months ended October31, 2009 and $39 million for the nine months ended November1, 2008. Total unrecognized share-based compensation expense for all share-based payment plans was $136 million at October31, 2009, of which approximately $18 million is expected to be recognized in the fourth quarter of 2009, $54 million in 2010, $31 million in 2011, $17 million in 2012, $13 million in 2013 and $3 million in 2014. Future compensation expense may be impacted by future grants, changes in forfeiture estimates and/or actual forfeitures which differ from estimated forfeitures. |
4.Long-Term Investments
4.Long-Term Investments | |
9 Months Ended
Oct. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
4.Long-Term Investments | 4. Long-Term Investments As of October31, 2009, we had long-term investments in auction rate securities (ARS) with a par value of $387 million and a fair value of $325 million. ARS are long-term debt instruments with interest rates reset through periodic short-term auctions. Our ARS mature at various dates between 2015 and 2056. The weighted-average remaining maturity of our ARS portfolio is approximately 27 years. Our ARS portfolio consists entirely of highly-rated, insured student loan backed securities. Substantially all of the principal and interest is insured by the federal government and the remainder is insured by various insurance companies. As of October31, 2009, $195 million of our ARS (at fair value) were rated AAA by Moodys, Standard Poors and/or Fitch Ratings. As a result of persistent failed auctions since February 2008 and the resulting uncertainty of when these investments could be successfully liquidated at par, we have recorded all of our ARS as Long-term Investments within the Condensed Consolidated Balance Sheets. We intend to hold these ARS until their fair value once again equals their par value and, based on other sources of liquidity, do not believe we will be required to sell them before recovery of par value. Therefore, impairment charges are considered temporary and have been included in Accumulated Other Comprehensive Loss within our Condensed Consolidated Balance Sheets. The following table presents a rollforward of our ARS, all of which are measured at fair value on a recurring basis using unobservable inputs (Level 3per ASC No.820, Fair Value Measurements and Disclosures, formerly SFAS No.157): (In millions) Balance as of January 31, 2009 $ 332 Sales (at par) (20 ) Unrealized gain 13 Balance as of October 31, 2009 $ 325 |
5.Contingencies
5.Contingencies | |
9 Months Ended
Oct. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
5.Contingencies | 5. Contingencies We are involved in various legal matters arising in the normal course of business. In the opinion of management, the outcome of such proceedings and litigation will not have a material adverse impact on our consolidated financial statements. |
6.Net Income Per Share
6.Net Income Per Share | |
9 Months Ended
Oct. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
6.Net Income Per Share | 6. Net Income Per Share The calculations of the numerator and denominator for basic and diluted net income per share are summarized as follows: Three Months Ended Nine Months Ended Oct.31, 2009 Nov.1, 2008 Oct.31, 2009 Nov.1, 2008 (In Millions) Numerator - net income $ 193 $ 160 $ 560 $ 549 Denominator - weighted average shares: Basic 305 305 305 306 Impact of dilutive employee stock options and non-vested stock (a) 3 - 1 1 Diluted 308 305 306 307 (a) Excludes 10million options for the three months ended October31, 2009, 16million options for the three months ended November1, 2008, 18million options for the nine months ended October31, 2009 and 16million options for the nine months ended November1, 2008 as the impact of such options was antidilutive. |
7.New Accounting Pronouncements
7.New Accounting Pronouncements | |
9 Months Ended
Oct. 31, 2009 USD / shares | |
Notes to Financial Statements [Abstract] | |
7.New Accounting Pronouncements | 7. New Accounting Pronouncements In June 2009, the Financial Accounting Standards Board (FASB) issued SFAS No.168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles (GAAP) (codified in ASC No.105). SFAS No.168 replaces SFAS No.162, The Hierarchy of Generally Accepted Accounting Principles, and establishes the FASB Accounting Standards Codification (Codification) as the source of authoritative accounting principles recognized by the FASB in the preparation of financial statements in conformity with GAAP. The Codification supersedes all previously-existing non-Securities and Exchange Commission (SEC) accounting and reporting standards. Rules and interpretive releases of the SEC under authority of federal securities laws will continue to be sources of authoritative GAAP for SEC registrants. We began using the new guidelines and numbering system prescribed by the Codification when referring to GAAP in this Quarterly Report on Form 10-Q for the period ending October31, 2009. As the Codification was not intended to change or alter existing GAAP, it did not have any impact on our consolidated financial results or financial position. In September 2006, the FASB issued SFAS No.157, Fair Value Measurements (codified in ASC No.820). ASC No.820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. We adopted the required portions of this statement in fiscal 2008. The remaining portions of this statement, which are related to non-financial assets and liabilities, were adopted without material impact in the first quarter of 2009. In April 2009, the FASB also issued FSP No. FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments, (codified in ASC No.825-10) which requires disclosures about the fair value of financial instruments for interim reporting periods as well as in annual financial statements. The fair value of our debt is reported in Note 2, Debt, and the fair value of our long-term investments is reported in Note 4, Long-Term Investments. During the first quarter of 2009, we also adopted the provisions of FAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly, (codified in ASC No.820-10) and FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments, (codified in ASC No.320-10) without material impact on our consolidated financial statements. In February 2007, the FASB issued SFAS No.159, The Fair Value Option for Financial Assets and Financial Liabilities (codified in ASC No.825) Including an amendment of FASB Statement No.115 (codified in ASC No.320). This standard permits entities to measure many financial instruments and certain other items at fair value. As of October31, 2009, we have not, and do not expect to, elect the fair value option for any eligible financial asset or liability. We adopted SFAS No.165, Subsequent Events (codified in ASC No.855) during the quarter ended August1, 2009. This pronouncement establish |
Document Information
Document Information | |
9 Months Ended
Oct. 31, 2009 USD / shares | |
Document Information [Text Block] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | 2009-10-31 |
Entity Information
Entity Information (USD $) | ||
9 Months Ended
Oct. 31, 2009 | Nov. 28, 2009
| |
Entity [Text Block] | ||
Trading Symbol | KSS | |
Entity Registrant Name | KOHLS CORPORATION | |
Entity Central Index Key | 0000885639 | |
Current Fiscal Year End Date | --01-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 306,601,805 |