Kohl's (KSS) 10-Q 7 Jun 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	May 04, 2019	May 31, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	KOHLS CORP
Entity Central Index Key	0000885639
Current Fiscal Year End Date	--02-01
Entity Filer Category	Large Accelerated Filer
Trading Symbol	KSS
Document Type	10-Q
Document Period End Date	May 4, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		162,025,878
Entity Small Business	false
Entity Emerging Growth Company	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	May 04, 2019	Feb. 02, 2019	May 05, 2018
Current assets:
Cash and cash equivalents	$ 543	$ 934	$ 822
Merchandise inventories	3,680	3,475	3,726
Other	412	426	435
Total current assets	4,635	4,835	4,983
Property and equipment, net	7,211	7,428	7,694
Operating leases	2,453
Other assets	167	206	239
Total assets	14,466	12,469	12,916
Current liabilities:
Accounts payable	1,295	1,187	1,454
Accrued liabilities	1,184	1,364	1,135
Income taxes payable	40	64	118
Current portion of:
Finance leases and financing obligations	115	115	123
Operating leases	158
Total current liabilities	2,792	2,730	2,830
Long-term debt	1,855	1,861	2,301
Finance leases and financing obligations	1,225	1,523	1,563
Operating leases	2,680
Deferred income taxes	233	184	198
Other long-term liabilities	239	644	668
Shareholders’ equity:
Common stock	4	4	4
Paid-in capital	3,223	3,204	3,125
Treasury stock, at cost	(11,221)	(11,076)	(10,737)
Accumulated other comprehensive loss			(8)
Retained earnings	13,436	13,395	12,972
Total shareholders’ equity	5,442	5,527	5,356
Total liabilities and shareholders’ equity	$ 14,466	$ 12,469	$ 12,916

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	3 Months Ended
	May 04, 2019	May 05, 2018
Total revenue	$ 4,087	$ 4,208
Cost of merchandise sold	$ 2,415	$ 2,496
Type of Cost, Good or Service [Extensible List]	kss:MerchandiseMember	kss:MerchandiseMember
Operating expenses:
Selling, general, and administrative	$ 1,275	$ 1,259
Depreciation and amortization	230	243
Impairments, store closing and other costs	49
Operating income	118	210
Interest expense, net	52	71
Loss on extinguishment of debt		42
Income before income taxes	66	97
Provision for income taxes	4	22
Net income	$ 62	$ 75
Net income per share:
Basic	$ 0.38	$ 0.46
Diluted	$ 0.38	$ 0.45
Net Sales [Member]
Total revenue	$ 3,821	$ 3,953	[1]
Other Revenue [Member]
Total revenue	$ 266	$ 255
[1]	Certain businesses do not agree to previously reported amounts due to changes in category classification.

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions		Total	Common Stock [Member]	Paid-In Capital [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Loss [Member]	Retained Earnings [Member]
Beginning Balance at Feb. 03, 2018		$ 5,419	$ 4	$ 3,078	$ (10,651)	$ (11)	$ 12,999
Beginning Balance (in shares) at Feb. 03, 2018			373		(205)
Comprehensive income		78				3	75
Stock options and awards, net of tax		30		47	$ (17)
Stock options and awards, (in shares)			1
Dividends paid		(101)			1		(102)
Treasury stock purchases		(70)			$ (70)
Treasury stock purchases, (in shares)					(1)
Ending Balance at May. 05, 2018		5,356	$ 4	3,125	$ (10,737)	$ (8)	12,972
Ending Balance (in shares) at May. 05, 2018			374		(206)
Beginning Balance at Feb. 02, 2019		5,527	$ 4	3,204	$ (11,076)		13,395
Beginning Balance (in shares) at Feb. 02, 2019			374		(211)
Change in accounting standard at Feb. 02, 2019	[1]	88					88
Comprehensive income		62					62
Stock options and awards, net of tax		(6)		19	$ (25)
Stock options and awards, (in shares)			1
Dividends paid		(108)			1		(109)
Treasury stock purchases		(121)			$ (121)
Treasury stock purchases, (in shares)					(2)
Ending Balance at May. 04, 2019		$ 5,442	$ 4	$ 3,223	$ (11,221)		$ 13,436
Ending Balance (in shares) at May. 04, 2019			375		(213)
[1]	Refer to Note 4 for details on the adoption of the new lease accounting standard.

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	May 04, 2019	May 05, 2018
Statement Of Stockholders Equity [Abstract]
Dividends declared and paid per share	$ 0.67	$ 0.61

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	May 04, 2019	May 05, 2018
Operating activities
Net income	$ 62	$ 75
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	230	243
Share-based compensation	15	30
Deferred income taxes	18	(12)
Impairments, store closing and other costs	49
Loss on extinguishment of debt		42
Non-cash operating lease expense	37
Other non-cash expenses	2	2
Changes in operating assets and liabilities:
Merchandise inventories	(202)	(181)
Accrued and other long-term liabilities	(141)	(107)
Accounts payable	108	183
Other current and long-term assets	6	68
Income taxes	1	44
Operating lease liabilities	(49)
Net cash provided by operating activities	136	387
Investing activities
Acquisition of property and equipment	(238)	(133)
Net cash used in investing activities	(238)	(133)
Financing activities
Treasury stock purchases	(121)	(70)
Shares withheld for taxes on vested restricted shares	(25)	(17)
Dividends paid	(108)	(101)
Reduction of long-term borrowings	(6)	(500)
Premium paid on redemption of debt		(35)
Finance lease and financing obligation payments	(31)	(33)
Proceeds from stock option exercises	2	16
Net cash used in financing activities	(289)	(740)
Net decrease in cash and cash equivalents	(391)	(486)
Cash at beginning of period	934	1,308
Cash at end of period	543	822
Supplemental information
Interest paid, net of capitalized interest	32	58
Income taxes paid	7	$ 15
Non-cash activities
Property and equipment acquired through additional finance lease liabilities	10
Operating lease assets acquired through additional operating lease liabilities	$ 49

Basis of Presentation

Basis of Presentation	3 Months Ended
	May 04, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for fiscal year end consolidated 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 consolidated financial statements and related footnotes included in our Annual Report on Form 10-K for the fiscal year ended February 2, 2019 (Commission File No. 1-11084) as 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. We operate as a single business unit. The following table provides a brief description of issued, but not yet effective, accounting standards: Standard Description Effect on our Financial Statements Cloud Computing (ASU 2018-15) Issued August 2018 Effective Q1 2020 Under the new standard, implementation costs related to a cloud computing arrangement will be deferred or expensed as incurred, in accordance with the existing internal-use software guidance for similar costs. The new standard also prescribes the balance sheet, income statement, and cash flow classification of the capitalized implementation costs and related amortization expense. We are evaluating the impact of the new standard, but believe it is generally consistent with our current accounting for cloud computing arrangements and will not have a material impact on our financials.

Revenue Recognition

Revenue Recognition	3 Months Ended
	May 04, 2019
Revenue From Contract With Customer [Abstract]
Revenue Recognition	2. Revenue Recognition The following table summarizes net sales by line of business: Quarter Ended (Dollars in Millions) May 4, 2019 May 5, 2018 (1) Women's $ 1,220 $ 1,255 Men's 785 790 Home 629 691 Children's 456 454 Footwear 419 439 Accessories 312 324 Net Sales $ 3,821 $ 3,953 (1) Certain businesses do not agree to previously reported amounts due to changes in category classification. Liabilities for performance obligations resulting from our rewards programs, return reserves, and unredeemed gift cards and merchandise return cards totaled $372 million as of May 4, 2019, $413 million as of February 2, 2019 and $380 million as of May 5, 2018.

Debt

Debt	3 Months Ended
	May 04, 2019
Debt Disclosure [Abstract]
Debt	3. Debt Long-term debt consists of the following unsecured senior debt: Effective Rate Coupon Rate Outstanding Maturity (Dollars in Millions) May 4, 2019 February 2, 2019 May 5, 2018 2021 4.81 % 4.00 % $ - $ - $ 426 2023 3.25 % 3.25 % 350 350 350 2023 4.78 % 4.75 % 184 184 184 2025 4.25 % 4.25 % 650 650 650 2029 7.36 % 7.25 % 42 42 42 2033 6.05 % 6.00 % 113 113 113 2037 6.89 % 6.88 % 101 101 101 2045 5.57 % 5.55 % 427 433 449 Outstanding long-term debt 1,867 1,873 2,315 Unamortized debt discounts and deferred financing costs (12 ) (12 ) (14 ) Long-term debt $ 1,855 $ 1,861 $ 2,301 Effective interest rate 4.74 % 4.74 % 4.76 % Our long-term debt is classified as Level 1, financial instruments with unadjusted, quoted prices listed on active market exchanges. The estimated fair value of our long-term debt was $1.9 billion at May 4, 2019, $1.8 billion at February 2, 2019, and $2.3 billion at May 5, 2018. Year to date, we have reduced our outstanding debt by $6 million through open market repurchases.

Leases

Leases	3 Months Ended
	May 04, 2019
Leases [Abstract]
Leases	4. Leases Effective February 3, 2019 (the “adoption date”), we adopted ASC 842 Leases (the “new standard”). The new standard requires lessees to recognize a liability for lease obligations and a corresponding right of use asset on the balance sheet. The guidance also requires disclosure of key information about leasing arrangements that is intended to give financial statement users the ability to assess the amount, timing, and potential uncertainty of cash flows related to leases. We The new standard includes several transition practical expedients that were available to reduce the burden of implementing the standard. • We elected the package of practical expedients, which among other things, allowed us to carry forward our historical lease classifications. • We did not elect the hindsight practical expedient which would have allowed us to revisit key assumptions, such as lease term, that were made when we originally entered into the lease. The following table summarizes changes in our balance sheet upon adoption of the new standard: ( Dollars in Millions) Assets Property and equipment, net $ (174 ) (a) Operating leases 2,446 (b) Other assets (32 ) (c) Total assets $ 2,240 Liabilities and Shareholders' Equity Finance leases and financing obligations $ (237 ) (a) Operating leases 2,771 (b) Accrued and other liabilities (413 ) (c) Deferred taxes 31 (d) Shareholders' equity 88 (d) Total liabilities and shareholders' equity $ 2,240 (a) The reductions are primarily due to historical failed sale leaseback and build to suit arrangements where we were deemed owner for accounting purposes. In accordance with ASC 842 transition provisions, they became operating or finance leases. (b) The increases include land and other operating leases which were not previously recorded on our balance sheet or were previously recorded as financing obligations. (c) The reductions are primarily due to the reclassification of lease-related assets and liabilities such as straight-line rent and reserves for closed stores to operating lease assets and liabilities. (d) The cumulative effect of lease adjustments, net of the deferred tax impact, was recorded as an adjustment to retained earnings. In addition, retained earnings include a $26 million lease impairment charge. These adjustments represent non-cash activities for Statement of Cash Flow purposes. Adoption of the new standard is not expected to have a material impact on our net income prospectively. We expect immaterial increases in Selling, general and administrative expenses to be more than offset by decreases in Depreciation and amortization and Interest expense. Substantially all of the expected income statement changes are due to the reversal of accounting for build to suit arrangements where construction is complete which were accounted for as operating or finance leases in accordance with the transition provisions of ASC 842. Finance and Operating Leases We lease certain property and equipment used in our operations. Some of our store leases include additional rental payments based on a percentage of sales over contractual levels or which are adjusted periodically for inflation. Our typical store lease has an initial term of 20 to 25 years and four to eight five-year renewal options. Lease assets represent our right to use an underlying asset for the lease term. Lease assets are recognized at commencement date based on the value of the lease liability and are adjusted for any lease payments made to the lessor at or before commencement date, minus any lease incentives received and any initial direct costs incurred by the lessee. Lease liabilities represent our contractual obligation to make lease payments. They are recognized at commencement date based on the present value of minimum lease payments over the lease term. As the implicit interest rate is not readily identifiable in our leases, we estimate our collateralized borrowing rate to calculate the present value of lease payments. For leases that commenced prior to the adoption date, we used the February 3, 2019 rate for a term consistent with the original lease term for operating leases and the rate on the lease commencement date for finance leases. For leases with terms of 12 months or less, we elected the practical expedient to exclude them from the balance sheet and recognize expense on a straight-line basis over the lease term. For leases beginning, modified, or reassessed in 2019 and later, we elected the practical expedient to combine lease and non-lease components. The following table summarizes our operating and finance leases and where they are presented in our Balance Sheet as of May 4, 2019 and our Statement of Income and Statement of Cash Flows for the quarter ended May 4, 2019: (Dollars in Millions) Classification Balance Sheet Assets Operating leases Operating leases $ 2,453 Finance leases Property and equipment, net 490 Total operating and finance leases 2,943 Liabilities Current Operating leases Current portion of operating leases 158 Finance leases Current portion of finance leases and financing obligations 69 Noncurrent Operating leases Operating leases 2,680 Finance leases Finance leases and financing obligations 722 Total operating and finance leases $ 3,629 Income Statement Operating leases Selling, general, and administrative $ 77 Finance leases Amortization of leased assets Depreciation and amortization 17 Interest on lease liabilities Interest expense, net 24 Total operating and finance leases $ 118 Cash Flow Statement Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 89 Operating cash flows from finance leases 24 Financing cash flows from finance leases 17 The following table summarizes future lease payments at May 4, 2019: (Dollars in Millions) Operating Leases Finance Leases Total May 2019 - April 2020 $ 301 $ 157 $ 458 May 2020 - April 2021 307 155 462 May 2021 - April 2022 298 133 431 May 2022 - April 2023 283 117 400 May 2023 - April 2024 264 104 368 May 2024 and after 3,525 1,608 5,133 Total lease payments 4,978 2,274 7,252 Amount representing interest (2,140 ) (1,483 ) (3,623 ) Lease liabilities $ 2,838 $ 791 $ 3,629 Total lease payments includes $2.9 billion related to options to extend operating lease terms that are reasonably certain of being exercised, includes $1.4 billion related to options to extend finance lease terms that are reasonably certain of being exercised, and excludes $14 million of legally binding lease payments for leases signed but not yet commenced. The following table summarizes weighted-average remaining lease term and discount rates: May 4, 2019 Weighted-average remaining term (years) Operating leases 20 Finance leases 17 Weighted-average discount rate Operating leases 6 % Finance leases 12 % Financing Obligations Historical failed sale leasebacks that did not qualify for sale leaseback accounting upon adoption of ASC 842 continue to be accounted for as financing obligations. The tables below summarize our financing obligations and where they are presented in our Balance Sheet as of May 4, 2019 and our Statement of Income and Statement of Cash Flows for the quarter ended May 4, 2019. (Dollars in Millions) Classification Balance Sheet Assets Financing obligations Property and equipment, net $ 84 Liabilities Current Current portion of finance lease and financing obligations 46 Noncurrent Finance leases and financing obligations 503 Total financing obligations $ 549 Income Statement Amortization of financing obligation assets Depreciation and amortization $ 3 Interest on financing obligations Interest expense, net 9 Total $ 12 Cash Flow Cash paid for amounts included in the measurement of financing obligations Operating cash flows from financing obligations $ 9 Financing cash flows from financing obligations 14 The following table summarizes future financing obligation payments: (Dollars in Millions) May 4, 2019 May 2019 - April 2020 $ 65 May 2020 - April 2021 70 May 2021 - April 2022 70 May 2022 - April 2023 67 May 2023 - April 2024 64 May 2024 and after 220 Total financing obligations payments 556 Non-cash gain on future sale of property 231 Amount representing interest (238 ) Financing obligation liability $ 549 The May 4, 2019 Weighted-average remaining term (years) 9 Weighted-average discount rate 7 %

Stock-Based Awards

Stock-Based Awards	3 Months Ended
	May 04, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Awards	5. Stock-Based Awards The following table summarizes our stock-based awards activity for the quarter ended May 4, 2019: Stock Warrants Stock Options Nonvested Stock Awards Performance Share Units (Shares and Units in Thousands) Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Balance - February 2, 2019 - $ - 136 $ 51.48 2,601 $ 51.90 1,046 $ 52.08 Granted 1,747 69.68 - - 624 68.04 206 74.75 Exercised/vested - - (37 ) 51.13 (626 ) 51.50 (336 ) 46.87 Forfeited/expired - - - - (21 ) 53.47 (16 ) 51.21 Balance - May 4, 2019 1,747 $ 69.68 99 $ 51.81 2,578 $ 55.88 900 $ 59.23 Effective April 18, 2019, in connection with our entry into a commercial agreement with Amazon.com Services, Inc. (“Amazon”), we issued warrants to an affiliate of Amazon, to purchase up to 1,747,441 shares of our common stock at an exercise price of $69.68, subject to customary anti-dilution provisions. The warrants vest in five equal annual installments beginning on January 15, 2020 and expire on April 18, 2026. Unvested warrants will not vest if the commercial agreement is terminated, not renewed, or if no substitute written returns arrangement is entered into between the parties.

Contingencies

Contingencies	3 Months Ended
	May 04, 2019
Commitments And Contingencies Disclosure [Abstract]
Contingencies	6. Contingencies We are subject to certain legal proceedings and claims arising out of the conduct of our business. In the opinion of management, the outcome of these proceedings and litigation will not have a material adverse impact on our consolidated financial statements.

Net Income Per Share

Net Income Per Share	3 Months Ended
	May 04, 2019
Earnings Per Share [Abstract]
Net Income Per Share	7. 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 share-based awards and stock warrants. The information required to compute basic and diluted net income per share is as follows: Quarter Ended (Dollar and Shares in Millions, Except per Share Data) May 4, 2019 May 5, 2018 Numerator—Net income $ 62 $ 75 Denominator—Weighted-average shares: Basic 161 165 Dilutive impact 1 2 Diluted 162 167 Net income per share: Basic $ 0.38 $ 0.46 Diluted $ 0.38 $ 0.45

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	May 04, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of Issued, But Not Yet Effective, Accounting Standards	The following table provides a brief description of issued, but not yet effective, accounting standards: Standard Description Effect on our Financial Statements Cloud Computing (ASU 2018-15) Issued August 2018 Effective Q1 2020 Under the new standard, implementation costs related to a cloud computing arrangement will be deferred or expensed as incurred, in accordance with the existing internal-use software guidance for similar costs. The new standard also prescribes the balance sheet, income statement, and cash flow classification of the capitalized implementation costs and related amortization expense. We are evaluating the impact of the new standard, but believe it is generally consistent with our current accounting for cloud computing arrangements and will not have a material impact on our financials.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	May 04, 2019
Revenue From Contract With Customer [Abstract]
Schedule of Net Sales by Line of Business	The following table summarizes net sales by line of business: Quarter Ended (Dollars in Millions) May 4, 2019 May 5, 2018 (1) Women's $ 1,220 $ 1,255 Men's 785 790 Home 629 691 Children's 456 454 Footwear 419 439 Accessories 312 324 Net Sales $ 3,821 $ 3,953 (1) Certain businesses do not agree to previously reported amounts due to changes in category classification.

Debt (Tables)

Debt (Tables)	3 Months Ended
	May 04, 2019
Debt Disclosure [Abstract]
Components of long-term debt	Long-term debt consists of the following unsecured senior debt: Effective Rate Coupon Rate Outstanding Maturity (Dollars in Millions) May 4, 2019 February 2, 2019 May 5, 2018 2021 4.81 % 4.00 % $ - $ - $ 426 2023 3.25 % 3.25 % 350 350 350 2023 4.78 % 4.75 % 184 184 184 2025 4.25 % 4.25 % 650 650 650 2029 7.36 % 7.25 % 42 42 42 2033 6.05 % 6.00 % 113 113 113 2037 6.89 % 6.88 % 101 101 101 2045 5.57 % 5.55 % 427 433 449 Outstanding long-term debt 1,867 1,873 2,315 Unamortized debt discounts and deferred financing costs (12 ) (12 ) (14 ) Long-term debt $ 1,855 $ 1,861 $ 2,301 Effective interest rate 4.74 % 4.74 % 4.76 %

Leases (Tables)

Leases (Tables)	3 Months Ended
	May 04, 2019
Summary of Operating and Finance Leases	The following table summarizes our operating and finance leases and where they are presented in our Balance Sheet as of May 4, 2019 and our Statement of Income and Statement of Cash Flows for the quarter ended May 4, 2019: (Dollars in Millions) Classification Balance Sheet Assets Operating leases Operating leases $ 2,453 Finance leases Property and equipment, net 490 Total operating and finance leases 2,943 Liabilities Current Operating leases Current portion of operating leases 158 Finance leases Current portion of finance leases and financing obligations 69 Noncurrent Operating leases Operating leases 2,680 Finance leases Finance leases and financing obligations 722 Total operating and finance leases $ 3,629 Income Statement Operating leases Selling, general, and administrative $ 77 Finance leases Amortization of leased assets Depreciation and amortization 17 Interest on lease liabilities Interest expense, net 24 Total operating and finance leases $ 118 Cash Flow Statement Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 89 Operating cash flows from finance leases 24 Financing cash flows from finance leases 17
Summary of Future Lease Payments	The following table summarizes future lease payments at May 4, 2019: (Dollars in Millions) Operating Leases Finance Leases Total May 2019 - April 2020 $ 301 $ 157 $ 458 May 2020 - April 2021 307 155 462 May 2021 - April 2022 298 133 431 May 2022 - April 2023 283 117 400 May 2023 - April 2024 264 104 368 May 2024 and after 3,525 1,608 5,133 Total lease payments 4,978 2,274 7,252 Amount representing interest (2,140 ) (1,483 ) (3,623 ) Lease liabilities $ 2,838 $ 791 $ 3,629
Summary of Weighted-Average Remaining Lease Term and Discount Rates	The following table summarizes weighted-average remaining lease term and discount rates: May 4, 2019 Weighted-average remaining term (years) Operating leases 20 Finance leases 17 Weighted-average discount rate Operating leases 6 % Finance leases 12 %
Summary of Financing Obligations	The tables below summarize our financing obligations and where they are presented in our Balance Sheet as of May 4, 2019 and our Statement of Income and Statement of Cash Flows for the quarter ended May 4, 2019. (Dollars in Millions) Classification Balance Sheet Assets Financing obligations Property and equipment, net $ 84 Liabilities Current Current portion of finance lease and financing obligations 46 Noncurrent Finance leases and financing obligations 503 Total financing obligations $ 549 Income Statement Amortization of financing obligation assets Depreciation and amortization $ 3 Interest on financing obligations Interest expense, net 9 Total $ 12 Cash Flow Cash paid for amounts included in the measurement of financing obligations Operating cash flows from financing obligations $ 9 Financing cash flows from financing obligations 14
Summary of Future Financing Obligation Payments	The following table summarizes future financing obligation payments: (Dollars in Millions) May 4, 2019 May 2019 - April 2020 $ 65 May 2020 - April 2021 70 May 2021 - April 2022 70 May 2022 - April 2023 67 May 2023 - April 2024 64 May 2024 and after 220 Total financing obligations payments 556 Non-cash gain on future sale of property 231 Amount representing interest (238 ) Financing obligation liability $ 549
Summary of Weighted-Average Remaining Term and Discount Rate for Financing Obligations	The May 4, 2019 Weighted-average remaining term (years) 9 Weighted-average discount rate 7 %
ASU No. 2016-02 [Member]
Summary of Changes in Balance Sheet upon Adoption of New Standard	The following table summarizes changes in our balance sheet upon adoption of the new standard: ( Dollars in Millions) Assets Property and equipment, net $ (174 ) (a) Operating leases 2,446 (b) Other assets (32 ) (c) Total assets $ 2,240 Liabilities and Shareholders' Equity Finance leases and financing obligations $ (237 ) (a) Operating leases 2,771 (b) Accrued and other liabilities (413 ) (c) Deferred taxes 31 (d) Shareholders' equity 88 (d) Total liabilities and shareholders' equity $ 2,240 (a) The reductions are primarily due to historical failed sale leaseback and build to suit arrangements where we were deemed owner for accounting purposes. In accordance with ASC 842 transition provisions, they became operating or finance leases. (b) The increases include land and other operating leases which were not previously recorded on our balance sheet or were previously recorded as financing obligations. (c) The reductions are primarily due to the reclassification of lease-related assets and liabilities such as straight-line rent and reserves for closed stores to operating lease assets and liabilities. (d) The cumulative effect of lease adjustments, net of the deferred tax impact, was recorded as an adjustment to retained earnings. In addition, retained earnings include a $26 million lease impairment charge.

Stock-Based Awards (Tables)

Stock-Based Awards (Tables)	3 Months Ended
	May 04, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Stock-Based Awards Activity	The following table summarizes our stock-based awards activity for the quarter ended May 4, 2019: Stock Warrants Stock Options Nonvested Stock Awards Performance Share Units (Shares and Units in Thousands) Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Balance - February 2, 2019 - $ - 136 $ 51.48 2,601 $ 51.90 1,046 $ 52.08 Granted 1,747 69.68 - - 624 68.04 206 74.75 Exercised/vested - - (37 ) 51.13 (626 ) 51.50 (336 ) 46.87 Forfeited/expired - - - - (21 ) 53.47 (16 ) 51.21 Balance - May 4, 2019 1,747 $ 69.68 99 $ 51.81 2,578 $ 55.88 900 $ 59.23

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	May 04, 2019
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Income Per Share	The information required to compute basic and diluted net income per share is as follows: Quarter Ended (Dollar and Shares in Millions, Except per Share Data) May 4, 2019 May 5, 2018 Numerator—Net income $ 62 $ 75 Denominator—Weighted-average shares: Basic 161 165 Dilutive impact 1 2 Diluted 162 167 Net income per share: Basic $ 0.38 $ 0.46 Diluted $ 0.38 $ 0.45

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Net Sales by Line of Business (Details) - USD ($) $ in Millions	3 Months Ended
	May 04, 2019	May 05, 2018
Disaggregation Of Revenue [Line Items]
Net Sales	$ 4,087	$ 4,208
Net Sales [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	3,821	3,953	[1]
Net Sales [Member] | Women's [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	1,220	1,255	[1]
Net Sales [Member] | Men's [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	785	790	[1]
Net Sales [Member] | Home [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	629	691	[1]
Net Sales [Member] | Children's [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	456	454	[1]
Net Sales [Member] | Footwear [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	419	439	[1]
Net Sales [Member] | Accessories [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	$ 312	$ 324	[1]
[1]	Certain businesses do not agree to previously reported amounts due to changes in category classification.

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions	May 04, 2019	Feb. 02, 2019	May 05, 2018
Revenue From Contract With Customer [Abstract]
Liabilities for performance obligations resulting from rewards programs, return reserves, unredeemed gift cards and merchandise return cards	$ 372	$ 413	$ 380

Debt - Components of Long-term

Debt - Components of Long-term Debt (Details) - USD ($) $ in Millions	May 04, 2019	Feb. 02, 2019	May 05, 2018
Debt Instrument [Line Items]
Effective Rate	4.74%	4.74%	4.76%
Outstanding	$ 1,867	$ 1,873	$ 2,315
Unamortized debt discounts and deferred financing costs	(12)	(12)	(14)
Long-term debt	$ 1,855	1,861	2,301
Senior Notes [Member] | Senior Notes Due 2021 [Member]
Debt Instrument [Line Items]
Effective Rate	4.81%
Debt Instrument, Interest Rate, Stated Percentage	4.00%
Outstanding			426
Senior Notes [Member] | Senior Notes Due 2023 [Member]
Debt Instrument [Line Items]
Effective Rate	3.25%
Debt Instrument, Interest Rate, Stated Percentage	3.25%
Outstanding	$ 350	350	350
Senior Notes [Member] | Senior Notes 4.78% Due 2023 [Member]
Debt Instrument [Line Items]
Effective Rate	4.78%
Debt Instrument, Interest Rate, Stated Percentage	4.75%
Outstanding	$ 184	184	184
Senior Notes [Member] | Senior Notes Due 2025 [Member]
Debt Instrument [Line Items]
Effective Rate	4.25%
Debt Instrument, Interest Rate, Stated Percentage	4.25%
Outstanding	$ 650	650	650
Senior Notes [Member] | Senior Notes Due 2029 [Member]
Debt Instrument [Line Items]
Effective Rate	7.36%
Debt Instrument, Interest Rate, Stated Percentage	7.25%
Outstanding	$ 42	42	42
Senior Notes [Member] | Senior Notes Due 2033 [Member]
Debt Instrument [Line Items]
Effective Rate	6.05%
Debt Instrument, Interest Rate, Stated Percentage	6.00%
Outstanding	$ 113	113	113
Senior Notes [Member] | Senior Notes Due 2037 [Member]
Debt Instrument [Line Items]
Effective Rate	6.89%
Debt Instrument, Interest Rate, Stated Percentage	6.88%
Outstanding	$ 101	101	101
Senior Notes [Member] | Senior Notes Due 2045 [Member]
Debt Instrument [Line Items]
Effective Rate	5.57%
Debt Instrument, Interest Rate, Stated Percentage	5.55%
Outstanding	$ 427	$ 433	$ 449

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	May 04, 2019	May 05, 2018	Feb. 02, 2019
Debt Instrument [Line Items]
Long-term Debt, Fair Value	$ 1,900	$ 2,300	$ 1,800
Reduction of long-term borrowings	6	$ 500
Senior Notes [Member] | Repurchased on Open Market [Member]
Debt Instrument [Line Items]
Reduction of long-term borrowings	$ 6

Leases - Summary of Changes in

Leases - Summary of Changes in Balance Sheet upon Adoption of New Standard (Details) - USD ($) $ in Millions		May 04, 2019	Feb. 03, 2019	Feb. 02, 2019	May 05, 2018	Feb. 03, 2018
Assets
Property and equipment, net		$ 7,211		$ 7,428	$ 7,694
Operating leases		2,453
Other assets		167		206	239
Total assets		14,466		12,469	12,916
Liabilities and Shareholders’ Equity
Operating leases		2,838
Deferred income taxes		233		184	198
Shareholders' equity		5,442		5,527	5,356	$ 5,419
Total liabilities and shareholders’ equity		$ 14,466		$ 12,469	$ 12,916
ASU No. 2016-02 [Member] | Impact of Adoption [Member]
Assets
Property and equipment, net	[1]		$ (174)
Operating leases	[2]		2,446
Other assets	[3]		(32)
Total assets			2,240
Liabilities and Shareholders’ Equity
Finance leases and financing obligations	[1]		(237)
Operating leases	[2]		2,771
Accrued and other liabilities	[3]		(413)
Deferred income taxes	[4]		31
Shareholders' equity	[4]		88
Total liabilities and shareholders’ equity			$ 2,240
[1]	The reductions are primarily due to historical failed sale leaseback and build to suit arrangements where we were deemed owner for accounting purposes. In accordance with ASC 842 transition provisions, they became operating or finance leases.
[2]	The increases include land and other operating leases which were not previously recorded on our balance sheet or were previously recorded as financing obligations.
[3]	The reductions are primarily due to the reclassification of lease-related assets and liabilities such as straight-line rent and reserves for closed stores to operating lease assets and liabilities.
[4]	The cumulative effect of lease adjustments, net of the deferred tax impact, was recorded as an adjustment to retained earnings. In addition, retained earnings include a $26 million lease impairment charge.

Leases - Summary of Changes i_2

Leases - Summary of Changes in Balance Sheet upon Adoption of New Standard (Parenthetical) (Details) $ in Millions	Feb. 03, 2019USD ($)
ASU No. 2016-02 [Member] | Retained Earnings [Member]
Lessee Lease Description [Line Items]
Lease impairment charge	$ 26

Leases - Additional Information

Leases - Additional Information (Details) $ in Millions	3 Months Ended
	May 04, 2019USD ($)
Leases [Line Items]
Operating lease option to extend reasonably certain of being exercised	$ 2,900
Finance lease option to extend reasonably certain of being exercised	1,400
Legally binding lease payments for leases signed but not yet commenced	$ 14
Store [Member]
Leases [Line Items]
Lease extension term	5 years
Minimum [Member] | Store [Member]
Leases [Line Items]
Lease initial term	20 years
Lease renewal term	4 years
Maximum [Member] | Store [Member]
Leases [Line Items]
Lease initial term	25 years
Lease renewal term	8 years

Leases - Summary of Operating a

Leases - Summary of Operating and Finance Leases (Details) $ in Millions	3 Months Ended
	May 04, 2019USD ($)
Assets
Operating leases	$ 2,453
Finance leases	$ 490
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentNet
Total operating and finance leases	$ 2,943
Current liabilities:
Operating leases	158
Finance leases	$ 69
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	kss:FinanceLeaseLiabilityAndFinancingObligationCurrent
Noncurrent
Operating leases	$ 2,680
Finance leases	$ 722
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	kss:FinanceLeaseLiabilityAndFinancingObligationNoncurrent
Total operating and finance leases	$ 3,629
Income Statement
Operating leases	77
Finance leases
Amortization of leased assets	17
Interest on lease liabilities	24
Total operating and finance leases	118
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	89
Operating cash flows from finance leases	24
Financing cash flows from finance leases	$ 17

Leases - Summary of Future Leas

Leases - Summary of Future Lease Payments (Details) $ in Millions	May 04, 2019USD ($)
Leases [Abstract]
May 2019 - April 2020, Operating Leases	$ 301
May 2020 - April 2021, Operating Leases	307
May 2021 - April 2022, Operating Leases	298
May 2022 - April 2023, Operating Leases	283
May 2023 - April 2024, Operating Leases	264
May 2024 and after, Operating Leases	3,525
Total lease payments, Operating Leases	4,978
Amount representing interest, Operating Leases	(2,140)
Lease liabilities, Operating Leases	2,838
May 2019 - April 2020, Finance Leases	157
May 2020 - April 2021, Finance Leases	155
May 2021 - April 2022, Finance Leases	133
May 2022 - April 2023, Finance Leases	117
May 2023 - April 2024, Finance Leases	104
May 2024 and after, Finance Leases	1,608
Total lease payments, Finance Leases	2,274
Amount representing interest, Finance Leases	(1,483)
Lease liabilities, Finance Leases	791
May 2019 - April 2020	458
May 2020 - April 2021	462
May 2021 - April 2022	431
May 2022 - April 2023	400
May 2023 - April 2024	368
May 2024 and after	5,133
Total lease payments	7,252
Amount representing interest	(3,623)
Lease liabilities	$ 3,629

Leases - Summary of Weighted-Av

Leases - Summary of Weighted-Average Remaining Lease Term and Discount Rates (Details)	May 04, 2019
Leases [Abstract]
Operating leases, Weighted-average remaining term (years)	20 years
Finance leases, Weighted-average remaining term (years)	17 years
Operating leases, Weighted-average discount rate	6.00%
Finance leases, Weighted-average discount rate	12.00%

Leases - Summary of Financing O

Leases - Summary of Financing Obligations (Details) $ in Millions	3 Months Ended
	May 04, 2019USD ($)
Assets
Financing obligations	$ 84
Liabilities
Current	46
Noncurrent	503
Total financing obligations	549
Income Statement
Amortization of financing obligation assets	3
Interest on financing obligations	9
Total	12
Cash paid for amounts included in the measurement of financing obligations
Operating cash flows from financing obligations	9
Financing cash flows from financing obligations	$ 14

Leases - Summary of Future Fina

Leases - Summary of Future Financing Obligation Payments (Details) $ in Millions	May 04, 2019USD ($)
Leases [Abstract]
May 2019 - April 2020	$ 65
May 2020 - April 2021	70
May 2021 - April 2022	70
May 2022 - April 2023	67
May 2023 - April 2024	64
May 2024 and after	220
Total financing obligations payments	556
Non-cash gain on future sale of property	231
Amount representing interest	(238)
Total financing obligations	$ 549

Leases - Summary of Weighted-_2

Leases - Summary of Weighted-Average Remaining Term and Discount Rate for Financing Obligations (Details)	3 Months Ended
	May 04, 2019
Leases [Abstract]
Weighted-average remaining term (years)	9 years
Weighted-average discount rate	7.00%

Stock-Based Awards - Summary of

Stock-Based Awards - Summary of Stock-Based Awards Activity (Details) shares in Thousands	3 Months Ended
	May 04, 2019$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Warrants, Granted | shares	1,747
Stock Warrants, Ending Balance | shares	1,747
Stock Warrants, Weighted Average Exercise Price, Granted | $ / shares	$ 69.68
Stock Warrants, Weighted Average Exercise Price, Ending Balance | $ / shares	$ 69.68
Stock Options, Beginning Balance | shares	136
Stock Options, Exercised/vested | shares	(37)
Stock Options, Ending Balance | shares	99
Stock Options, Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 51.48
Stock Options, Weighted Average Exercise Price, Exercised/vested | $ / shares	51.13
Stock Options, Weighted Average Exercise Price, Ending Balance | $ / shares	$ 51.81
Nonvested Stock Awards [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Awards/ Share Units, Beginning Balance | shares	2,601
Stock Awards/ Share Units, Granted | shares	624
Stock Awards/ Share Units, Exercised/vested | shares	(626)
Stock Awards/ Share Units, Forfeited/expired | shares	(21)
Stock Awards/ Share Units, Ending Balance | shares	2,578
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 51.90
Stock Awards/ Share Units, Awards/Units, Weighted Average Grant Date Fair Value, Granted | $ / shares	68.04
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Exercised/vested | $ / shares	51.50
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Forfeited/expired | $ / shares	53.47
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 55.88
Performance Share Units [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Awards/ Share Units, Beginning Balance | shares	1,046
Stock Awards/ Share Units, Granted | shares	206
Stock Awards/ Share Units, Exercised/vested | shares	(336)
Stock Awards/ Share Units, Forfeited/expired | shares	(16)
Stock Awards/ Share Units, Ending Balance | shares	900
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 52.08
Stock Awards/ Share Units, Awards/Units, Weighted Average Grant Date Fair Value, Granted | $ / shares	74.75
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Exercised/vested | $ / shares	46.87
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Forfeited/expired | $ / shares	51.21
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 59.23

Stock-Based Awards - Additional

Stock-Based Awards - Additional Information (Details)	Apr. 18, 2019Installment$ / sharesshares	May 04, 2019$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares to be purchased warrants | shares		1,747,000
Exercise price of warrants | $ / shares		$ 69.68
Amazon [Member] | Commercial Agreement [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares to be purchased warrants | shares	1,747,441
Exercise price of warrants | $ / shares	$ 69.68
Warrants, number of vesting annual installments | Installment	5
Warrants vest, beginning date	Jan. 15, 2020
Warrants vest, expiration date	Apr. 18, 2026

Net Income Per Share - Computat

Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	May 04, 2019	May 05, 2018
Earnings Per Share [Abstract]
Numerator—Net income	$ 62	$ 75
Denominator—Weighted average shares: Basic	161	165
Dilutive impact	1	2
Weighted average shares, Diluted	162	167
Basic	$ 0.38	$ 0.46
Diluted	$ 0.38	$ 0.45