Kohl's (KSS) 10-Q 6 Sep 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Aug. 03, 2019	Aug. 30, 2019
Cover [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	Aug. 3, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		159,126,736
Document Quarterly Report	true
Document Transition Report	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock, $.01 par value
Security Exchange Name	NYSE
Entity Incorporation, State or Country Code	WI
Entity Tax Identification Number	39-1630919
Entity File Number	1-11084
Entity Address, Address Line One	N56 W17000 Ridgewood Drive
Entity Address, City or Town	Menomonee Falls
Entity Address State Or Province	WI
Entity Address, Postal Zip Code	53051
City Area Code	262
Local Phone Number	703-7000

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Aug. 03, 2019	Feb. 02, 2019	Aug. 04, 2018
Current assets:
Cash and cash equivalents	$ 625	$ 934	$ 1,066
Merchandise inventories	3,656	3,475	3,572
Other	397	426	404
Total current assets	4,678	4,835	5,042
Property and equipment, net	7,276	7,428	7,635
Operating leases	2,428
Other assets	160	206	238
Total assets	14,542	12,469	12,915
Current liabilities:
Accounts payable	1,330	1,187	1,404
Accrued liabilities	1,199	1,364	1,174
Income taxes payable	34	64	70
Current portion of:
Finance leases and financing obligations	119	115	122
Operating leases	158
Total current liabilities	2,840	2,730	2,770
Long-term debt	1,855	1,861	2,273
Finance leases and financing obligations	1,270	1,523	1,537
Operating leases	2,647
Deferred income taxes	254	184	188
Other long-term liabilities	221	644	660
Shareholders’ equity:
Common stock	4	4	4
Paid-in capital	3,236	3,204	3,163
Treasury stock, at cost	(11,353)	(11,076)	(10,835)
Accumulated other comprehensive loss			(8)
Retained earnings	13,568	13,395	13,163
Total shareholders’ equity	5,455	5,527	5,487
Total liabilities and shareholders’ equity	$ 14,542	$ 12,469	$ 12,915

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Aug. 03, 2019	Aug. 04, 2018		Aug. 03, 2019	Aug. 04, 2018
Total revenue	$ 4,430	$ 4,570		$ 8,517	$ 8,778
Cost of merchandise sold	$ 2,550	$ 2,605		$ 4,965	$ 5,101
Type of Cost, Good or Service [Extensible List]	kss:MerchandiseMember	kss:MerchandiseMember		kss:MerchandiseMember	kss:MerchandiseMember
Operating expenses:
Selling, general, and administrative	$ 1,269	$ 1,272		$ 2,544	$ 2,532
Depreciation and amortization	228	241		458	483
Impairments, store closing and other costs	7			56
Operating income	376	452		494	662
Interest expense, net	53	65		105	135
Loss on extinguishment of debt					42
Income before income taxes	323	387		389	485
Provision for income taxes	82	95		86	117
Net income	$ 241	$ 292		$ 303	$ 368
Net income per share:
Basic	$ 1.52	$ 1.77		$ 1.90	$ 2.23
Diluted	$ 1.51	$ 1.76		$ 1.89	$ 2.21
Net Sales [Member]
Total revenue	$ 4,169	$ 4,310	[1]	$ 7,990	$ 8,263	[1]
Other Revenue [Member]
Total revenue	$ 261	$ 260		$ 527	$ 515
[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]
Balance, beginning of period at Feb. 03, 2018			$ 4	$ 3,078	$ (10,651)	$ (11)	$ 13,006
Change in accounting standard at Feb. 03, 2018	[1]						(7)
Treasury stock purchases					(165)
Stock options and awards				85	(21)
Net earnings		$ 368					368
Dividends paid					2		(204)
Other comprehensive income						3
Balance, end of period at Aug. 04, 2018		$ 5,487	$ 4	3,163	$ (10,835)	(8)	13,163
Shares, beginning of period at Feb. 03, 2018			373		(205)
Treasury stock purchases					(2)
Stock options and awards			1
Shares, end of period at Aug. 04, 2018		167	374		(207)
Dividends paid per common share		$ 1.22
Balance, beginning of period at May. 05, 2018			$ 4	3,125	$ (10,737)	(8)	12,972
Treasury stock purchases					(95)
Stock options and awards				38	(4)
Net earnings		$ 292					293
Dividends paid					1		(102)
Balance, end of period at Aug. 04, 2018		$ 5,487	$ 4	3,163	$ (10,835)	$ (8)	13,163
Shares, beginning of period at May. 05, 2018			374		(206)
Treasury stock purchases					(1)
Shares, end of period at Aug. 04, 2018		167	374		(207)
Dividends paid per common share		$ 0.61
Balance, beginning of period at Feb. 02, 2019		$ 5,527	$ 4	3,204	$ (11,076)		13,395
Change in accounting standard at Feb. 02, 2019	[1]						88
Treasury stock purchases					(254)
Stock options and awards				32	(27)
Net earnings		303					303
Dividends paid					4		(218)
Balance, end of period at Aug. 03, 2019		$ 5,455	$ 4	3,236	$ (11,353)		13,568
Shares, beginning of period at Feb. 02, 2019			374		(211)
Treasury stock purchases					(4)
Stock options and awards			1
Shares, end of period at Aug. 03, 2019		160	375		(215)
Dividends paid per common share		$ 1.34
Balance, beginning of period at May. 04, 2019			$ 4	3,223	$ (11,221)		13,436
Treasury stock purchases					(133)
Stock options and awards				13	(2)
Net earnings		$ 241					241
Dividends paid					3		(109)
Balance, end of period at Aug. 03, 2019		$ 5,455	$ 4	$ 3,236	$ (11,353)		$ 13,568
Shares, beginning of period at May. 04, 2019			375		(213)
Treasury stock purchases					(2)
Shares, end of period at Aug. 03, 2019		160	375		(215)
Dividends paid per common share		$ 0.67
[1]	Refer to Note 4 for details on the adoption of the new lease accounting standard.

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Aug. 03, 2019	Aug. 04, 2018
Operating activities
Net income	$ 303	$ 368
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	458	483
Share-based compensation	27	50
Deferred income taxes	41	(25)
Impairments, store closing and other costs	45
Loss on extinguishment of debt		42
Non-cash lease expense	75
Other non-cash expenses	3	13
Changes in operating assets and liabilities:
Merchandise inventories	(175)	(24)
Accrued and other long-term liabilities	(177)	(88)
Accounts payable	143	133
Other current and long-term assets	29	89
Income taxes	(8)	6
Operating lease liabilities	(88)
Net cash provided by operating activities	676	1,047
Investing activities
Acquisition of property and equipment	(439)	(312)
Other		6
Net cash used in investing activities	(439)	(306)
Financing activities
Treasury stock purchases	(254)	(165)
Shares withheld for taxes on vested restricted shares	(27)	(21)
Dividends paid	(214)	(202)
Reduction of long-term borrowings	(6)	(528)
Premium paid on redemption of debt		(35)
Finance lease and financing obligation payments	(60)	(64)
Proceeds from financing obligations	13
Proceeds from stock option exercises	2	32
Net cash used in financing activities	(546)	(983)
Net decrease in cash and cash equivalents	(309)	(242)
Cash at beginning of period	934	1,308
Cash at end of period	625	1,066
Supplemental information
Interest paid, net of capitalized interest	105	141
Income taxes paid	77	164
Property and equipment acquired through:
Finance lease liabilities	73
Operating lease liabilities	$ 67
Financing obligations		$ 7

Basis of Presentation

Basis of Presentation	6 Months Ended
	Aug. 03, 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	6 Months Ended
	Aug. 03, 2019
Revenue From Contract With Customer [Abstract]
Revenue Recognition	2. Revenue Recognition The following table summarizes net sales by line of business: Three Months Ended Six Months Ended (Dollars in Millions) August 3, 2019 August 4, 2018 (1) August 3, 2019 August 4, 2018 (1) Women's $ 1,373 $ 1,439 $ 2,592 $ 2,694 Men's 933 955 1,717 1,745 Home 651 678 1,280 1,369 Children's 458 464 914 919 Footwear 447 465 867 902 Accessories 307 309 620 634 Net Sales $ 4,169 $ 4,310 $ 7,990 $ 8,263 (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 $354 million as of August 3, 2019, $413 million as of February 2, 2019 and $358 million as of August 4, 2018.

Debt

Debt	6 Months Ended
	Aug. 03, 2019
Debt Disclosure [Abstract]
Debt	3. Debt Long-term debt consists of the following unsecured senior debt: Outstanding Maturity by fiscal year (Dollars in Millions) Effective Rate Coupon Rate August 3, 2019 February 2, 2019 August 4, 2018 2021 4.81 % 4.00 % $ - $ - $ 413 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 % 113 113 112 2037 6.89 % 6.88 % 101 101 101 2045 5.57 % 5.55 % 427 433 435 Outstanding long-term debt 1,867 1,873 2,287 Unamortized debt discounts and deferred financing costs (12 ) (12 ) (14 ) Long-term debt $ 1,855 $ 1,861 $ 2,273 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 August 3, 2019, $1.8 billion at February 2, 2019, and $2.3 billion at August 4, 2018. On July 25, 2019, we amended and extended our existing credit facility with various lenders which provides for a $1.0 billion senior unsecured five-year revolving credit facility that will mature in July 2024. Year to date 2019, we have reduced our outstanding debt by $6 million

Leases

Leases	6 Months Ended
	Aug. 03, 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 Consolidated 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. At the commencement date, the lease liabilities equal 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 tables summarize our operating and finance leases and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheet August 3, 2019 (Dollars in Millions) Classification Assets Operating leases Operating leases $ 2,428 Finance leases Property and equipment, net 544 Total operating and finance leases 2,972 Liabilities Current Operating leases Current portion of operating leases 158 Finance leases Current portion of finance leases and financing obligations 72 Noncurrent Operating leases Operating leases 2,647 Finance leases Finance leases and financing obligations 764 Total operating and finance leases $ 3,641 Consolidated Statement of Income Three Months Ended Six Months Ended (Dollars in Millions) Classification August 3, 2019 August 3, 2019 Operating leases Selling, general, and administrative $ 79 $ 157 Finance leases Amortization of leased assets Depreciation and amortization 18 35 Interest on lease liabilities Interest expense, net 24 48 Total operating and finance leases $ 121 $ 240 Consolidated Statement of Cash Flows Six Months Ended (Dollars in Millions) Classification August 3, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 169 Operating cash flows from finance leases 48 Financing cash flows from finance leases 37 The following table summarizes future lease payments by fiscal year: August 3, 2019 (Dollars in Millions) Operating Leases Finance Total 2019 $ 145 $ 82 $ 227 2020 309 168 477 2021 301 148 449 2022 287 131 418 2023 272 111 383 After 2023 3,603 1,686 5,289 Total lease payments 4,917 2,326 7,243 Amount representing interest (2,112 ) (1,490 ) (3,602 ) Lease liabilities $ 2,805 $ 836 $ 3,641 Total lease payments include $2.9 billion related to options to extend operating lease terms that are reasonably certain of being exercised and $1.4 billion related to options to extend finance lease terms that are reasonably certain of being exercised. The following table summarizes weighted-average remaining lease term and discount rates: August 3, 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 following tables summarize our financing obligations and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheet (Dollars in Millions) Classification August 3, 2019 Assets Financing obligations Property and equipment, net $ 81 Liabilities Current Current portion of finance leases and financing obligations 47 Noncurrent Finance leases and financing obligations 506 Total financing obligations $ 553 Consolidated Statement of Income Three Month Ended Six Months Ended (Dollars in Millions) Classification August 3, 2019 August 3, 2019 Amortization of financing obligation assets Depreciation and amortization $ 3 $ 6 Interest on financing obligations Interest expense, net 9 19 Total financing obligations $ 12 $ 25 Consolidated Statement of Cash Flows Six Months Ended August 3, 2019 (Dollars in Millions) Classification Cash paid for amounts included in the measurement of financing obligations Operating cash flows from financing obligations $ 19 Financing cash flows from financing obligations 23 Proceeds from financing obligations 13 The following table summarizes future financing obligation payments by fiscal year: (Dollars in Millions) August 3, 2019 2019 $ 29 2020 72 2021 72 2022 68 2023 66 After 2023 249 Total financing obligations payments 556 Non-cash gain on future sale of property 238 Amount representing interest (241 ) Financing obligation liability $ 553 The August 3, 2019 Weighted-average remaining term (years) 9 Weighted-average discount rate 7 %

Stock-Based Awards

Stock-Based Awards	6 Months Ended
	Aug. 03, 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 six months ended August 3, 2019: Nonvested Stock Awards Performance Share Units Stock Options Stock Warrants (Shares and Units in Thousands) Shares Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Balance - February 2, 2019 2,601 $ 51.90 1,046 $ 52.08 136 $ 51.48 - $ - Granted 717 66.87 224 73.77 - - 1,747 69.68 Exercised/vested (753 ) 52.59 (336 ) 46.87 (39 ) 51.10 - - Forfeited/expired (113 ) 57.49 (57 ) 55.35 - - - - Balance - August 3, 2019 2,452 $ 55.79 877 $ 59.40 97 $ 51.64 1,747 $ 69.68 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 fair value was estimated to be $17.52 per warrant using a binomial lattice method. 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	6 Months Ended
	Aug. 03, 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	6 Months Ended
	Aug. 03, 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: Three Months Ended Six Months Ended (Dollar and Shares in Millions, Except per Share Data) August 3, 2019 August 4, 2018 August 3, 2019 August 4, 2018 Numerator—Net income $ 241 $ 292 $ 303 $ 368 Denominator—Weighted-average shares: Basic 159 165 160 165 Dilutive impact — 1 1 1 Diluted 159 166 161 166 Antidilutive shares 3 — 1 — Net income per share: Basic $ 1.52 $ 1.77 $ 1.90 $ 2.23 Diluted $ 1.51 $ 1.76 $ 1.89 $ 2.21

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Aug. 03, 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)	6 Months Ended
	Aug. 03, 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: Three Months Ended Six Months Ended (Dollars in Millions) August 3, 2019 August 4, 2018 (1) August 3, 2019 August 4, 2018 (1) Women's $ 1,373 $ 1,439 $ 2,592 $ 2,694 Men's 933 955 1,717 1,745 Home 651 678 1,280 1,369 Children's 458 464 914 919 Footwear 447 465 867 902 Accessories 307 309 620 634 Net Sales $ 4,169 $ 4,310 $ 7,990 $ 8,263 (1) Certain businesses do not agree to previously reported amounts due to changes in category classification.

Debt (Tables)

Debt (Tables)	6 Months Ended
	Aug. 03, 2019
Debt Disclosure [Abstract]
Components of long-term debt	Long-term debt consists of the following unsecured senior debt: Outstanding Maturity by fiscal year (Dollars in Millions) Effective Rate Coupon Rate August 3, 2019 February 2, 2019 August 4, 2018 2021 4.81 % 4.00 % $ - $ - $ 413 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 % 113 113 112 2037 6.89 % 6.88 % 101 101 101 2045 5.57 % 5.55 % 427 433 435 Outstanding long-term debt 1,867 1,873 2,287 Unamortized debt discounts and deferred financing costs (12 ) (12 ) (14 ) Long-term debt $ 1,855 $ 1,861 $ 2,273 Effective interest rate 4.74 % 4.74 % 4.76 %

Leases (Tables)

Leases (Tables)	6 Months Ended
	Aug. 03, 2019
Summary of Operating and Finance Leases	The following tables summarize our operating and finance leases and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheet August 3, 2019 (Dollars in Millions) Classification Assets Operating leases Operating leases $ 2,428 Finance leases Property and equipment, net 544 Total operating and finance leases 2,972 Liabilities Current Operating leases Current portion of operating leases 158 Finance leases Current portion of finance leases and financing obligations 72 Noncurrent Operating leases Operating leases 2,647 Finance leases Finance leases and financing obligations 764 Total operating and finance leases $ 3,641 Consolidated Statement of Income Three Months Ended Six Months Ended (Dollars in Millions) Classification August 3, 2019 August 3, 2019 Operating leases Selling, general, and administrative $ 79 $ 157 Finance leases Amortization of leased assets Depreciation and amortization 18 35 Interest on lease liabilities Interest expense, net 24 48 Total operating and finance leases $ 121 $ 240 Consolidated Statement of Cash Flows Six Months Ended (Dollars in Millions) Classification August 3, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 169 Operating cash flows from finance leases 48 Financing cash flows from finance leases 37
Summary of Future Lease Payments	The following table summarizes future lease payments by fiscal year: August 3, 2019 (Dollars in Millions) Operating Leases Finance Total 2019 $ 145 $ 82 $ 227 2020 309 168 477 2021 301 148 449 2022 287 131 418 2023 272 111 383 After 2023 3,603 1,686 5,289 Total lease payments 4,917 2,326 7,243 Amount representing interest (2,112 ) (1,490 ) (3,602 ) Lease liabilities $ 2,805 $ 836 $ 3,641
Summary of Weighted-Average Remaining Lease Term and Discount Rates	The following table summarizes weighted-average remaining lease term and discount rates: August 3, 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 following tables summarize our financing obligations and where they are presented in our Consolidated Financial Statements: Consolidated Balance Sheet (Dollars in Millions) Classification August 3, 2019 Assets Financing obligations Property and equipment, net $ 81 Liabilities Current Current portion of finance leases and financing obligations 47 Noncurrent Finance leases and financing obligations 506 Total financing obligations $ 553 Consolidated Statement of Income Three Month Ended Six Months Ended (Dollars in Millions) Classification August 3, 2019 August 3, 2019 Amortization of financing obligation assets Depreciation and amortization $ 3 $ 6 Interest on financing obligations Interest expense, net 9 19 Total financing obligations $ 12 $ 25 Consolidated Statement of Cash Flows Six Months Ended August 3, 2019 (Dollars in Millions) Classification Cash paid for amounts included in the measurement of financing obligations Operating cash flows from financing obligations $ 19 Financing cash flows from financing obligations 23 Proceeds from financing obligations 13
Summary of Future Financing Obligation Payments	The following table summarizes future financing obligation payments by fiscal year: (Dollars in Millions) August 3, 2019 2019 $ 29 2020 72 2021 72 2022 68 2023 66 After 2023 249 Total financing obligations payments 556 Non-cash gain on future sale of property 238 Amount representing interest (241 ) Financing obligation liability $ 553
Summary of Weighted-Average Remaining Term and Discount Rate for Financing Obligations	The August 3, 2019 Weighted-average remaining term (years) 9 Weighted-average discount rate 7 %
ASU No. 2016-02 [Member]
Summary of Changes in Consolidated Balance Sheet upon Adoption of New Standard	The following table summarizes changes in our Consolidated 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)	6 Months Ended
	Aug. 03, 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 six months ended August 3, 2019: Nonvested Stock Awards Performance Share Units Stock Options Stock Warrants (Shares and Units in Thousands) Shares Weighted Average Grant Date Fair Value Units Weighted Average Grant Date Fair Value Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Balance - February 2, 2019 2,601 $ 51.90 1,046 $ 52.08 136 $ 51.48 - $ - Granted 717 66.87 224 73.77 - - 1,747 69.68 Exercised/vested (753 ) 52.59 (336 ) 46.87 (39 ) 51.10 - - Forfeited/expired (113 ) 57.49 (57 ) 55.35 - - - - Balance - August 3, 2019 2,452 $ 55.79 877 $ 59.40 97 $ 51.64 1,747 $ 69.68

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Aug. 03, 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: Three Months Ended Six Months Ended (Dollar and Shares in Millions, Except per Share Data) August 3, 2019 August 4, 2018 August 3, 2019 August 4, 2018 Numerator—Net income $ 241 $ 292 $ 303 $ 368 Denominator—Weighted-average shares: Basic 159 165 160 165 Dilutive impact — 1 1 1 Diluted 159 166 161 166 Antidilutive shares 3 — 1 — Net income per share: Basic $ 1.52 $ 1.77 $ 1.90 $ 2.23 Diluted $ 1.51 $ 1.76 $ 1.89 $ 2.21

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Net Sales by Line of Business (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Aug. 03, 2019	Aug. 04, 2018		Aug. 03, 2019	Aug. 04, 2018
Disaggregation Of Revenue [Line Items]
Net Sales	$ 4,430	$ 4,570		$ 8,517	$ 8,778
Net Sales [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	4,169	4,310	[1]	7,990	8,263	[1]
Net Sales [Member] | Women's [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	1,373	1,439	[1]	2,592	2,694	[1]
Net Sales [Member] | Men's [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	933	955	[1]	1,717	1,745	[1]
Net Sales [Member] | Home [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	651	678	[1]	1,280	1,369	[1]
Net Sales [Member] | Children's [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	458	464	[1]	914	919	[1]
Net Sales [Member] | Footwear [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	447	465	[1]	867	902	[1]
Net Sales [Member] | Accessories [Member]
Disaggregation Of Revenue [Line Items]
Net Sales	$ 307	$ 309	[1]	$ 620	$ 634	[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	Aug. 03, 2019	Feb. 02, 2019	Aug. 04, 2018
Revenue From Contract With Customer [Abstract]
Liabilities for performance obligations resulting from rewards programs, return reserves, unredeemed gift cards and merchandise return cards	$ 354	$ 413	$ 358

Debt - Components of Long-term

Debt - Components of Long-term Debt (Details) - USD ($) $ in Millions	Aug. 03, 2019	Feb. 02, 2019	Aug. 04, 2018
Debt Instrument [Line Items]
Effective interest rate	4.74%	4.74%	4.76%
Outstanding	$ 1,867	$ 1,873	$ 2,287
Unamortized debt discounts and deferred financing costs	(12)	(12)	(14)
Long-term debt	$ 1,855	1,861	2,273
Senior Notes [Member] | Senior Notes Due 2021 [Member]
Debt Instrument [Line Items]
Effective interest rate	4.81%
Debt Instrument, Interest Rate, Stated Percentage	4.00%
Outstanding			413
Senior Notes [Member] | Senior Notes Due 2023 [Member]
Debt Instrument [Line Items]
Effective interest 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 interest 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 interest 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 interest 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 interest rate	6.05%
Debt Instrument, Interest Rate, Stated Percentage	6.00%
Outstanding	$ 113	113	112
Senior Notes [Member] | Senior Notes Due 2037 [Member]
Debt Instrument [Line Items]
Effective interest 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 interest rate	5.57%
Debt Instrument, Interest Rate, Stated Percentage	5.55%
Outstanding	$ 427	$ 433	$ 435

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	Jul. 25, 2019	Aug. 03, 2019	Aug. 04, 2018	Feb. 02, 2019
Debt Instrument [Line Items]
Long-term Debt, Fair Value		$ 1,900,000,000	$ 2,300,000,000	$ 1,800,000,000
Reduction of long-term borrowings		6,000,000	528,000,000
Senior Notes [Member] | Repurchased on Open Market [Member]
Debt Instrument [Line Items]
Reduction of long-term borrowings		$ 6,000,000
Senior Notes [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing Capacity	$ 1,000,000,000
Debt instrument, term	5 years
Debt instrument, maturity date	2024-07
Debt instrument, maturity date description		On July 25, 2019, we amended and extended our existing credit facility with various lenders which provides for a $1.0 billion senior unsecured five-year revolving credit facility that will mature in July 2024.
Outstanding amount		$ 0	$ 0	$ 0

Leases - Summary of Changes in

Leases - Summary of Changes in Consolidated Balance Sheet upon Adoption of New Standard (Details) - USD ($) $ in Millions		Aug. 03, 2019	Feb. 03, 2019	Feb. 02, 2019	Aug. 04, 2018
Assets
Property and equipment, net		$ 7,276		$ 7,428	$ 7,635
Operating leases		2,428
Other assets		160		206	238
Total assets		14,542		12,469	12,915
Liabilities and Shareholders’ Equity
Operating leases		2,805
Deferred income taxes		254		184	188
Shareholders' equity		5,455		5,527	5,487
Total liabilities and shareholders’ equity		$ 14,542		$ 12,469	$ 12,915
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 Consolidated 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 Billions	6 Months Ended
	Aug. 03, 2019USD ($)
Leases [Line Items]
Operating lease option to extend reasonably certain of being exercised	$ 2.9
Finance lease option to extend reasonably certain of being exercised	$ 1.4
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	6 Months Ended
	Aug. 03, 2019USD ($)	Aug. 03, 2019USD ($)
Assets
Operating leases	$ 2,428	$ 2,428
Finance leases	$ 544	$ 544
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentNet	us-gaap:PropertyPlantAndEquipmentNet
Total operating and finance leases	$ 2,972	$ 2,972
Current liabilities:
Operating leases	158	158
Finance leases	$ 72	$ 72
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	kss:FinanceLeaseLiabilityAndFinancingObligationCurrent	kss:FinanceLeaseLiabilityAndFinancingObligationCurrent
Noncurrent
Operating leases	$ 2,647	$ 2,647
Finance leases	$ 764	$ 764
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	kss:FinanceLeaseLiabilityAndFinancingObligationNoncurrent	kss:FinanceLeaseLiabilityAndFinancingObligationNoncurrent
Total operating and finance leases	$ 3,641	$ 3,641
Income Statement
Operating leases	79	157
Finance leases
Amortization of leased assets	18	35
Interest on lease liabilities	24	48
Total operating and finance leases	$ 121	240
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		169
Operating cash flows from finance leases		48
Financing cash flows from finance leases		$ 37

Leases - Summary of Future Leas

Leases - Summary of Future Lease Payments (Details) $ in Millions	Aug. 03, 2019USD ($)
Leases [Abstract]
Operating Leases, 2019	$ 145
Operating Leases, 2020	309
Operating Leases, 2021	301
Operating Leases, 2022	287
Operating Leases, 2023	272
Operating Leases, After 2023	3,603
Total lease payments, Operating Leases	4,917
Amount representing interest, Operating Leases	(2,112)
Lease liabilities, Operating Leases	2,805
Finance Leases, 2019	82
Finance Leases, 2020	168
Finance Leases, 2021	148
Finance Leases, 2022	131
Finance Leases, 2023	111
Finance Leases, After 2023	1,686
Total lease payments, Finance Leases	2,326
Amount representing interest, Finance Leases	(1,490)
Lease liabilities, Finance Leases	836
2019	227
2020	477
2021	449
2022	418
2023	383
After 2023	5,289
Total lease payments	7,243
Amount representing interest	(3,602)
Lease liabilities	$ 3,641

Leases - Summary of Weighted-Av

Leases - Summary of Weighted-Average Remaining Lease Term and Discount Rates (Details)	Aug. 03, 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	6 Months Ended
	Aug. 03, 2019USD ($)	Aug. 03, 2019USD ($)
Assets
Financing obligations	$ 81	$ 81
Liabilities
Current	47	47
Noncurrent	506	506
Total financing obligations	553	553
Income Statement
Amortization of financing obligation assets	3	6
Interest on financing obligations	9	19
Total financing obligations	$ 12	25
Cash paid for amounts included in the measurement of financing obligations
Operating cash flows from financing obligations		19
Financing cash flows from financing obligations		23
Proceeds from financing obligations		$ 13

Leases - Summary of Future Fina

Leases - Summary of Future Financing Obligation Payments (Details) $ in Millions	Aug. 03, 2019USD ($)
Leases [Abstract]
2019	$ 29
2020	72
2021	72
2022	68
2023	66
After 2023	249
Total financing obligations payments	556
Non-cash gain on future sale of property	238
Amount representing interest	(241)
Total financing obligations	$ 553

Leases - Summary of Weighted-_2

Leases - Summary of Weighted-Average Remaining Term and Discount Rate for Financing Obligations (Details)	6 Months Ended
	Aug. 03, 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	6 Months Ended
	Aug. 03, 2019$ / sharesshares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock Options, Beginning Balance | shares	136
Stock Options, Exercised/vested | shares	(39)
Stock Options, Ending Balance | shares	97
Stock Options, Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 51.48
Stock Options, Weighted Average Exercise Price, Exercised/vested | $ / shares	51.10
Stock Options, Weighted Average Exercise Price, Ending Balance | $ / shares	$ 51.64
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
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	717
Stock Awards/ Share Units, Exercised/vested | shares	(753)
Stock Awards/ Share Units, Forfeited/expired | shares	(113)
Stock Awards/ Share Units, Ending Balance | shares	2,452
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	66.87
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Exercised/vested | $ / shares	52.59
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Forfeited/expired | $ / shares	57.49
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 55.79
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	224
Stock Awards/ Share Units, Exercised/vested | shares	(336)
Stock Awards/ Share Units, Forfeited/expired | shares	(57)
Stock Awards/ Share Units, Ending Balance | shares	877
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	73.77
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	55.35
Stock Awards/ Share Units, Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 59.40

Stock-Based Awards - Additional

Stock-Based Awards - Additional Information (Details)	Apr. 18, 2019Installment$ / sharesshares	Aug. 03, 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		$ 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	$ 69.68
Estimated of fair value per warrant	$ 17.52
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		6 Months Ended
	Aug. 03, 2019	Aug. 04, 2018	Aug. 03, 2019	Aug. 04, 2018
Earnings Per Share [Abstract]
Numerator—Net income	$ 241	$ 292	$ 303	$ 368
Denominator-Weighted average shares: Basic	159	165	160	165
Dilutive impact		1	1	1
Weighted average shares, Diluted	159	166	161	166
Antidilutive shares	3		1
Basic	$ 1.52	$ 1.77	$ 1.90	$ 2.23
Diluted	$ 1.51	$ 1.76	$ 1.89	$ 2.21