kss-10q_20181103.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 3, 2018

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition period from ________ to _________

 

Commission file number 1-11084

KOHL’S CORPORATION

(Exact name of registrant as specified in its charter)

 

Wisconsin

 

39-1630919

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 

 

N56 W17000 Ridgewood Drive,

Menomonee Falls, Wisconsin

 

53051

(Address of principal executive offices)

 

(Zip Code)

Registrant’s telephone number, including area code (262) 703-7000

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer

 

 

Accelerated filer

 

Non-accelerated filer

 

  

 

Smaller reporting company

 

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards pursuant to Section 13(a) of the Exchange Act.  

Indicate by a check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No  

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: December 1, 2018 Common Stock, Par Value $0.01 per Share, 165,129,371 shares outstanding.

 

 


Table of Contents

 

KOHL’S CORPORATION

INDEX

 

PART I

FINANCIAL INFORMATION

 

Item 1.

Financial Statements:

 

 

Consolidated Balance Sheets

3

 

Consolidated Statements of Income

4

 

Consolidated Statements of Changes in Shareholders' Equity

5

 

Consolidated Statements of Cash Flows

7

 

Notes to Consolidated Financial Statements

8

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

15

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

19

Item 4.

Controls and Procedures

19

 

 

 

PART II

OTHER INFORMATION

 

Item 1A.

Risk Factors

20

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

20

Item 6.

Exhibits

22

Signatures

23

 

 


Table of Contents

 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

KOHL’S CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(Dollars in Millions)

November 3,

2018

February 3,

2018

October 28,

2017

Assets

 

 

 

As Adjusted (a)

As Adjusted (a)

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

1,047

 

$

1,308

 

$

736

 

Merchandise inventories

 

4,844

 

 

3,542

 

 

4,632

 

Other

 

446

 

 

530

 

 

379

 

Total current assets

 

6,337

 

 

5,380

 

 

5,747

 

Property and equipment, net

 

7,538

 

 

7,773

 

 

7,974

 

Other assets

 

243

 

 

236

 

 

226

 

Total assets

$

14,118

 

$

13,389

 

$

13,947

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

$

2,583

 

$

1,271

 

$

2,113

 

Accrued liabilities

 

1,289

 

 

1,213

 

 

1,294

 

Income taxes payable

 

14

 

 

99

 

 

24

 

Current portion of capital lease and financing obligations

 

121

 

 

126

 

 

131

 

Total current liabilities

 

4,007

 

 

2,709

 

 

3,562

 

Long-term debt

 

2,272

 

 

2,797

 

 

2,796

 

Capital lease and financing obligations

 

1,528

 

 

1,591

 

 

1,622

 

Deferred income taxes

 

201

 

 

211

 

 

272

 

Other long-term liabilities

 

657

 

 

662

 

 

673

 

Shareholders’ equity:

 

 

 

 

 

 

 

 

 

Common stock

 

4

 

 

4

 

 

4

 

Paid-in capital

 

3,185

 

 

3,078

 

 

3,039

 

Treasury stock, at cost

 

(10,952

)

 

(10,651

)

 

(10,633

)

Accumulated other comprehensive loss

 

(8

)

 

(11

)

 

(12

)

Retained earnings

 

13,224

 

 

12,999

 

 

12,624

 

Total shareholders’ equity

 

5,453

 

 

5,419

 

 

5,022

 

Total liabilities and shareholders’ equity

$

14,118

 

$

13,389

 

$

13,947

 

 

 

(a)

Refer to Note 2 for details on the adoption of the new revenue recognition accounting standard and the impact on previously reported results.

 

See accompanying Notes to Consolidated Financial Statements

 

3


Table of Contents

 

KOHL’S CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

 

Three Months Ended

Nine Months Ended

(Dollars in Millions, Except per Share Data)

November 3,

2018

October 28,

2017

November 3,

2018

October 28,

2017

 

 

 

 

As Adjusted (a)

 

 

 

As Adjusted (a)

Net sales

$

4,369

 

$

4,312

 

$

12,632

 

$

12,274

 

Other revenue

 

259

 

 

255

 

 

774

 

 

753

 

Total revenue

 

4,628

 

 

4,567

 

 

13,406

 

 

13,027

 

Cost of merchandise sold

 

2,752

 

 

2,727

 

 

7,854

 

 

7,680

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general, and administrative

 

1,375

 

 

1,340

 

 

3,907

 

 

3,774

 

Depreciation and amortization

 

243

 

 

243

 

 

725

 

 

724

 

Operating income

 

258

 

 

257

 

 

920

 

 

849

 

Interest expense, net

 

63

 

 

74

 

 

197

 

 

225

 

Loss on extinguishment of debt

 

 

 

 

 

42

 

 

 

Income before income taxes

 

195

 

 

183

 

 

681

 

 

624

 

Provision for income taxes

 

34

 

 

66

 

 

152

 

 

233

 

Net income

$

161

 

$

117

 

$

529

 

$

391

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.98

 

$

0.70

 

$

3.21

 

$

2.33

 

Diluted

$

0.98

 

$

0.70

 

$

3.19

 

$

2.32

 

 

 

(a)

Refer to Note 2 for details on the adoption of the new revenue recognition accounting standard and the impact on previously reported results.

 

See accompanying Notes to Consolidated Financial Statements

 

4


Table of Contents

 

KOHL’S CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)

 

 

 

Three Months Ended November 3, 2018

 

 

Common Stock

 

 

 

 

Treasury Stock

 

Accumulated Other Comprehensive

Loss

 

 

 

 

 

 

(Dollars in Millions, Except per Share Data)

Shares

 

Amount

 

Paid-In

Capital

 

Shares

 

Amount

 

Retained

Earnings

 

Total

 

Balance at August 4, 2018

 

374

 

$

4

 

$

3,163

 

 

(207

)

$

(10,835

)

$

(8

)

$

13,163

 

$

5,487

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

161

 

 

161

 

Stock options and awards, net of tax

 

 

 

 

 

22

 

 

 

 

(8

)

 

 

 

 

 

14

 

Dividends paid

($0.61 per common share)

 

 

 

 

 

 

 

 

 

1

 

 

 

 

(100

)

 

(99

)

Treasury stock purchases

 

 

 

 

 

 

 

(2

)

 

(110

)

 

 

 

 

 

(110

)

Balance at November 3, 2018

 

374

 

$

4

 

$

3,185

 

 

(209

)

$

(10,952

)

$

(8

)

$

13,224

 

$

5,453

 

 

 

 

 

 

Three Months Ended October 28, 2017

 

 

Common Stock

 

 

 

 

Treasury Stock

 

Accumulated Other Comprehensive

Loss

 

 

 

 

 

 

(Dollars in Millions, Except per Share Data)

Shares

 

Amount

 

Paid-In

Capital

 

Shares

 

Amount

 

Retained

Earnings

 

Total

 

Balance at July 29, 2017

(previously reported)

 

372

 

$

4

 

$

3,026

 

 

(203

)

$

(10,596

)

$

(12

)

$

12,606

 

$

5,028

 

Change in accounting standard (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

(7

)

 

(7

)

Balance at July 29, 2017

(as adjusted)

 

372

 

$

4

 

$

3,026

 

 

(203

)

$

(10,596

)

$

(12

)

$

12,599

 

$

5,021

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

117

 

 

117

 

Stock options and awards, net of tax

 

1

 

 

 

 

13

 

 

 

 

 

 

 

 

 

 

13

 

Dividends paid

($0.55 per common share)

 

 

 

 

 

 

 

 

 

1

 

 

 

 

(92

)

 

(91

)

Treasury stock purchases

 

 

 

 

 

 

 

(2

)

 

(38

)

 

 

 

 

 

(38

)

Balance at October 28, 2017

 

373

 

$

4

 

$

3,039

 

 

(205

)

$

(10,633

)

$

(12

)

$

12,624

 

$

5,022

 

 

 

(a)

Refer to Note 2 for details on the adoption of the new revenue recognition accounting standard and the impact on previously reported results.

 

See accompanying Notes to Consolidated Financial Statements

 

 

 

 

 

 

5


Table of Contents

 

KOHL’S CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - (Continued)

(Unaudited)

 

 

Nine Months Ended November 3, 2018

 

 

Common Stock

 

 

 

 

Treasury Stock

 

Accumulated Other Comprehensive

Loss

 

 

 

 

 

 

(Dollars in Millions, Except per Share Data)

Shares

 

Amount

 

Paid-In

Capital

 

Shares

 

Amount

 

Retained

Earnings

 

Total

 

Balance at February 3, 2018

(previously reported)

 

373

 

$

4

 

$

3,078

 

 

(205

)

$

(10,651

)

$

(11

)

$

13,006

 

$

5,426

 

Change in accounting standard (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

(7

)

 

(7

)

Balance at February 3, 2018

(as adjusted)

 

373

 

$

4

 

$

3,078

 

 

(205

)

$

(10,651

)

$

(11

)

$

12,999

 

$

5,419

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

3

 

 

529

 

 

532

 

Stock options and awards, net of tax

 

1

 

 

 

 

107

 

 

 

 

(29

)

 

 

 

 

 

78

 

Dividends paid

($1.83 per common share)

 

 

 

 

 

 

 

 

 

3

 

 

 

 

(304

)

 

(301

)

Treasury stock purchases

 

 

 

 

 

 

 

(4

)

 

(275

)

 

 

 

 

 

(275

)

Balance at November 3, 2018

 

374

 

$

4

 

$

3,185

 

 

(209

)

$

(10,952

)

$

(8

)

$

13,224

 

$

5,453

 

 

 

 

 

Nine Months Ended October 28, 2017

 

 

Common Stock

 

 

 

 

Treasury Stock

 

Accumulated Other Comprehensive

Loss

 

 

 

 

 

 

(Dollars in Millions, Except per Share Data)

Shares

 

Amount

 

Paid-In

Capital

 

Shares

 

Amount

 

Retained

Earnings

 

Total

 

Balance at January 28, 2017

(previously reported)

371

 

$

4

 

$

3,003

 

 

(197

)

$

(10,338

)

$

(14

)

$

12,522

 

$

5,177

 

Change in accounting standard (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

(7

)

 

(7

)

Balance at January 28, 2017

(as adjusted)

371

 

$

4

 

$

3,003

 

 

(197

)

$

(10,338

)

$

(14

)

$

12,515

 

$

5,170

 

Comprehensive income

 

 

 

 

 

 

 

 

 

 

 

2

 

 

391

 

 

393

 

Stock options and awards, net of tax

 

2

 

 

 

 

36

 

 

 

 

(12

)

 

 

 

 

 

24

 

Dividends paid

($1.65 per common share)

 

 

 

 

 

 

 

 

 

5

 

 

 

 

(282

)

 

(277

)

Treasury stock purchases

 

 

 

 

 

 

 

(8

)

 

(288

)

 

 

 

 

 

(288

)

Balance at October 28, 2017

 

373

 

$

4

 

$

3,039

 

 

(205

)

$

(10,633

)

$

(12

)

$

12,624

 

$

5,022

 

 

(a)

Refer to Note 2 for details on the adoption of the new revenue recognition accounting standard and the impact on previously reported results.

 

See accompanying Notes to Consolidated Financial Statements

 

 

6


Table of Contents

 

KOHL’S CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

Nine Months Ended

(Dollars in Millions)

November 3,

2018

October 28,

2017

Operating activities

 

 

 

As Adjusted (a)

Net income

$

529

 

$

391

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

725

 

 

724

 

Share-based compensation

 

71

 

 

34

 

Deferred income taxes

 

(13

)

 

2

 

Loss on extinguishment of debt

 

42

 

 

 

Other non-cash revenues and expenses

 

15

 

 

(4

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Merchandise inventories

 

(1,293

)

 

(829

)

Accrued and other long-term liabilities

 

38

 

 

(14

)

Accounts payable

 

1,312

 

 

606

 

Other current and long-term assets

 

70

 

 

50

 

Income taxes

 

(73

)

 

(91

)

Net cash provided by operating activities

 

1,423

 

 

869

 

Investing activities

 

 

 

 

 

 

Acquisition of property and equipment

 

(458

)

 

(547

)

Other

 

6

 

 

18

 

Net cash used in investing activities

 

(452

)

 

(529

)

Financing activities

 

 

 

 

 

 

Treasury stock purchases

 

(275

)

 

(288

)

Shares withheld for taxes on vested restricted shares

 

(29

)

 

(12

)

Dividends paid

 

(301

)

 

(277

)

Reduction of long-term borrowings

 

(530

)

 

 

Premium paid on redemption of debt

 

(35

)

 

 

Capital lease and financing obligation activity

 

(95

)

 

(101

)

Proceeds from stock option exercises

 

33

 

 

 

Net cash used in financing activities

 

(1,232

)

 

(678

)

Net decrease in cash and cash equivalents

 

(261

)

 

(338

)

Cash at beginning of period

 

1,308

 

 

1,074

 

Cash at end of period

$

1,047

 

$

736

 

Supplemental information

 

 

 

 

 

 

Interest paid, net of capitalized interest

$

192

 

$

192

 

Income taxes paid

 

266

 

 

322

 

Non-cash investing and financing activities

 

 

 

 

 

 

Property and equipment acquired through additional liabilities

$

20

 

$

42

 

 

 

(a)

Refer to Note 2 for details on the adoption of the new revenue recognition accounting standard and the impact on previously reported results.

 

See accompanying Notes to Consolidated Financial Statements

 

 

7


Table of Contents

 

KOHL’S CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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 3, 2018 (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

Leases

(ASC Topic 842)

 

Issued February 2016

 

Effective Q1 2019

Among other things, the new standard requires us to recognize a right-of-use asset and a lease liability on our balance sheet for each lease.  It also changes the presentation and timing of lease-related expenses.

Approximately 5% of our store leases and all of our land leases are not currently recorded on our balance sheet.  Recording right-of-use assets and lease liabilities for these and other non-store leases is expected to have a material impact on our balance sheet.  We are also evaluating the impact that recording right-of-use assets and lease liabilities will have on our income statement and the financial statement impact that the standard will have on leases which are currently recorded on our balance sheet.

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.

 

 

 

 

In 2017, we recorded provisional amounts for certain income tax effects of the Tax Cuts & Jobs Act (the “Act"), as addressed in Staff Accounting Bulletin No. 118 (“SAB 118”).  During the nine months ended November 3, 2018, we made immaterial adjustments to the previously recorded provisional amounts related to the Act. Any additional adjustments related to the Act, while not expected to be material, will be recorded as income tax expense during the period in which the adjustment is finalized.

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Table of Contents

KOHL’S CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 

2. Revenue Recognition

Effective February 4, 2018, we adopted Revenue from Contracts with Customers (ASC Topic 606) as required.  We adopted the new standard using the full retrospective method. The standard eliminated the transaction and industry specific revenue recognition guidance under prior U.S. GAAP and replaced it with a principles-based approach for revenue recognition and disclosures. Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services.

Net Sales

Net sales includes revenue from the sale of merchandise and shipping revenues. Net sales are recognized when merchandise is received by the customer and we have fulfilled all performance obligations. We do not have any sales that are recorded as commissions.

The following table summarizes net sales by line of business for the periods ended November 3, 2018 and October 28, 2017:

 

 

Three Months Ended

Nine Months Ended

(Dollars in Millions)

November 3, 2018

October 28, 2017

November 3, 2018

October 28, 2017

Women's

$

1,287

 

$

1,276

 

$

3,982

 

$

3,883

 

Men's

 

925

 

 

890

 

 

2,668

 

 

2,550

 

Home

 

719

 

 

713

 

 

2,090

 

 

2,035

 

Children's

 

650

 

 

640

 

 

1,569

 

 

1,534

 

Footwear

 

465

 

 

473

 

 

1,334

 

 

1,288

 

Accessories

 

323

 

 

320

 

 

989

 

 

984

 

Net Sales

$

4,369

 

$

4,312

 

$

12,632

 

$

12,274

 

We maintain various rewards programs whereby customers earn rewards based on their spending and other promotional activities. The rewards are typically in the form of dollar off discounts which can be used on future purchases. These programs create performance obligations which require us to defer a portion of the original sale until the rewards are redeemed. Sales are recorded net of returns. At the end of each reporting period, we record a reserve based on historical return rates and patterns which reverses sales that we expect to be returned in the following period. Revenue from the sale of Kohl's gift cards is recognized when the gift card is redeemed. Liabilities for performance obligations resulting from our rewards programs, return reserves, and unredeemed gift cards and merchandise return cards totaled $337 million as of November 3, 2018, $422 million as of February 3, 2018 and $335 million as of October 28, 2017.

Net sales do not include sales tax as we are considered a pass-through conduit for collecting and remitting sales taxes.

Other Revenue

Other revenue consists primarily of revenue from our credit card operations, unredeemed gift and merchandise return cards (breakage), and other non-merchandise revenues.

Revenue from credit card operations includes our share of the finance charges and interest fees, less charge-offs of the Kohl’s credit card pursuant to the Private Label Credit Card Program Agreement. Expenses related to our credit card operations are reported in SG&A.

Income from unredeemed gift cards and merchandise return cards (breakage) is recorded in proportion and over the time period the cards are actually redeemed.

 

9


Table of Contents

KOHL’S CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 

The following tables summarize the impact of adoption of the new standard by financial statement line item:

 

Three Months Ended October 28, 2017

(Dollars in Millions, Except per Share Data)

As Previously Reported

New Standard Adjustment

Adjusted

Net sales

$

4,332

 

$

(20

)

$

4,312

 

Other revenue

 

 

 

 

255

 

 

255

 

Total revenue

 

 

 

 

235

 

 

4,567

 

Cost of merchandise sold

 

2,737

 

 

(10

)

 

2,727

 

Gross margin

 

1,595

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

1,095

 

 

245

 

 

1,340

 

Depreciation and amortization

 

243

 

 

-

 

 

243

 

Operating income

 

257

 

 

-

 

 

257

 

Interest expense, net

 

74

 

 

-

 

 

74

 

Income before income taxes

 

183

 

 

-

 

 

183

 

Provision for income taxes

 

66

 

 

-

 

 

66

 

Net income

$

117

 

$

-

 

$

117

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic

$

0.70

 

$

-

 

$

0.70

 

Diluted

$

0.70

 

$

-

 

$

0.70

 

 

Nine Months Ended October 28, 2017

(Dollars in Millions, Except per Share Data)

As Previously Reported

New Standard Adjustment

Adjusted

Net sales

$

12,319

 

$

(45

)

$

12,274

 

Other revenue

 

 

 

 

753

 

 

753

 

Total revenue

 

 

 

 

708

 

 

13,027

 

Cost of merchandise sold

 

7,693

 

 

(13

)

 

7,680

 

Gross margin

 

4,626

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

3,053

 

 

721

 

 

3,774

 

Depreciation and amortization

 

724

 

 

-

 

 

724

 

Operating income

 

849

 

 

-

 

 

849

 

Interest expense, net

 

225

 

 

-

 

 

225

 

Income before income taxes

 

624

 

 

-

 

 

624

 

Provision for income taxes

 

233

 

 

-

 

 

233

 

Net income

$

391

 

$

-

 

$

391

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic

$

2.33

 

$

-

 

$

2.33

 

Diluted

$

2.32

 

$

-

 

$

2.32

 

 

 


10


Table of Contents

KOHL’S CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)

 

October 28, 2017

(Dollars in Millions)

As Previously Reported

New Standard Adjustment

Adjusted

Assets

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

736

 

$

-

 

$

736

 

Merchandise inventories

 

4,632

 

 

-

 

 

4,632

 

Other

 

332

 

 

47

 

 

379

 

Total current assets

 

5,700

 

 

47

 

 

5,747

 

Property and equipment, net

 

7,974

 

 

-

 

 

7,974

 

Other assets

 

226

 

 

-

 

 

226

 

Total assets

$

13,900

 

$

47

 

$

13,947

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

$

2,113

 

$

-

 

$

2,113

 

Accrued liabilities

 

1,237

 

 

57

 

 

1,294

 

Income taxes payable

 

24

 

 

-

 

 

24

 

Current portion of capital lease and financing obligations

 

131

 

 

-

 

 

131

 

Total current liabilities

 

3,505

 

 

57

 

 

3,562

 

Long-term debt

 

2,796

 

 

-

 

 

2,796