XML 34 R10.htm IDEA: XBRL DOCUMENT
v3.20.4

Leases | 12 Months Ended
--- | ---
Jan. 30, 2021
Leases [Abstract] |
Leases | 3. 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. Leases with a term of 12 months or less are excluded from the balance; we recognize lease expense for these leases on a straight-line basis over the lease term. We combine lease and non-lease components for new and modified leases. The following tables summarize our operating and finance leases and where they are presented in our Consolidated Financial Statements:
Consolidated Balance Sheets | January 30, 2021 | February 1, 2020
(Dollars in Millions) | Classification
Assets |  |  |  |  |  |  |
Operating leases | Operating leases | $ | 2,398 |  | $ | 2,391 |
Finance leases | Property & equipment, net |  | 708 |  |  | 672 |
Total operating & finance leases |  |  | 3,106 |  |  | 3,063 |
Liabilities |  |  |  |  |  |  |
Current |  |  |  |  |  |  |
Operating leases | Current portion of operating leases |  | 161 |  |  | 158 |
Finance leases | Current portion of finance leases & financing obligations |  | 76 |  |  | 88 |
Noncurrent |  |  |  |  |  |  |
Operating leases | Operating leases |  | 2,625 |  |  | 2,619 |
Finance leases | Finance leases & financing obligations |  | 926 |  |  | 877 |
Total operating & finance leases |  | $ | 3,788 |  | $ | 3,742 |
Consolidated Statements of Operations | 2020 | 2019
(Dollars in Millions) | Classification
Operating leases | Selling, general, and administrative | $ | 314 |  | $ | 314 |
Finance Leases |  |  |  |  |  |  |
Amortization of leased assets | Depreciation and amortization |  | 79 |  |  | 72 |
Interest on leased assets | Interest expense, net |  | 102 |  |  | 98 |
Total operating and finance leases |  | $ | 495 |  | $ | 484 |
Rent expense charged to operations was $301 million for 2018.
Consolidated Statement of Cash Flows | 2020 | 2019
(Dollars in Millions)
Cash paid for amounts included in the measurement of leased liabilities |  |  |  |  |  |
Operating cash flows from operating leases | $ | 305 |  | $ | 320 |
Operating cash flows from finance leases |  | 102 |  |  | 98 |
Financing cash flows from finance leases |  | 69 |  |  | 76 |
The following table summarizes future lease payments by fiscal year:
|  | January 30, 2021
|  | Operating Leases | Finance Leases |  |  |
(Dollars in Millions) | Total
2021 |  | $ | 313 |  | $ | 170 |  | $ | 483 |
2022 |  |  | 306 |  |  | 154 |  |  | 460 |
2023 |  |  | 293 |  |  | 134 |  |  | 427 |
2024 |  |  | 259 |  |  | 118 |  |  | 377 |
2025 |  |  | 244 |  |  | 113 |  |  | 357 |
After 2025 |  |  | 3,448 |  |  | 1,804 |  |  | 5,252 |
Total lease payments |  | $ | 4,863 |  | $ | 2,493 |  | $ | 7,356 |
Amount representing interest |  |  | (2,077 | ) |  | (1,491 | ) |  | (3,568 | )
Lease liabilities |  | $ | 2,786 |  | $ | 1,002 |  | $ | 3,788 |
Total lease payments include $3.1 billion related to options to extend operating lease terms that are reasonably certain of being exercised and $1.6 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 rate:
|  |  | January 30, 2021 | February 1, 2020
Weighted-average remaining term (years) |  |  |  |  |  |  |  |
Operating leases |  |  |  | 19 |  |  | 20 |
Finance leases |  |  |  | 18 |  |  | 17 |
Weighted-average discount rate |  |  |  |  |  |  |  |
Operating leases |  |  |  | 6 | % |  | 6 | %
Finance leases |  |  |  | 10 | % |  | 11 | %
A sale leaseback was completed during the second quarter of 2020 for our San Bernardino E-commerce fulfillment and distribution center. The properties were sold for $195 million and generated net proceeds of $193 million after fees. A gain of $127 million was recognized during the second quarter of 2020 and is recorded in Gain on sale of real estate. An initial operating lease liability and a corresponding right of use asset of $84 million were recorded for these leased locations. 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 Sheets | January 30, 2021 | February 1, 2020
(Dollars in Millions) | Classification
Assets |  |  |  |  |  |  |
Financing obligations | Property & equipment, net | $ | 65 |  | $ | 76 |
Liabilities |  |  |  |  |  |  |
Current | Current portion of finance leases & financing obligations |  | 39 |  |  | 36 |
Noncurrent | Finance leases & financing obligations |  | 461 |  |  | 490 |
Total financing obligations |  | $ | 500 |  | $ | 526 |
Consolidated Statement of Operations | 2020 |  | 2019
(Dollars in Millions) | Classification |
Amortization of financing obligation assets | Depreciation and amortization | $ | 11 |  | $ | 11
Interest on financing obligations | Interest expense, net |  | 36 |  |  | 37
Total financing obligations |  | $ | 47 |  | $ | 48
Consolidated Statement of Cash Flows | 2020 | 2019
(Dollars in Millions) |
Cash paid for amounts included in the measurement of financing obligations |  |  |  |  |  |
Operating cash flows from financing obligations | $ | 36 |  | $ | 37 |
Financing cash flows from financing obligations |  | 36 |  |  | 37 |
Proceeds from financing obligations |  | 9 |  |  | 11 |
(Gain) on extinguishment of debt | — |  |  | (9 | )
In 2019, we purchased leased equipment that was accounted for as a financing obligation resulting in recognition of a $9 million gain on extinguishment of debt. The following table summarizes future financing obligation payments by fiscal year:
(Dollars in Millions) | January 30, 2021
Financing Obligations
2021 |  | $ | 70 |
2022 |  |  | 70 |
2023 |  |  | 67 |
2024 |  |  | 62 |
2025 |  |  | 49 |
After 2025 |  |  | 207 |
Total lease payments |  | $ | 525 |
Non-cash gain on future sale of property |  |  | 219 |
Amount representing interest |  |  | (244 | )
Financing obligation liability |  | $ | 500 |
Total payments exclude $7.3 million of legally binding payments for contracts signed, but not yet commenced. The following table summarizes the weighted-average remaining term and discount rate for financing obligations:
| January 30, 2021 | February 1, 2020
Weighted-average remaining term (years) |  | 8 |  |  | 9 |
Weighted-average discount rate |  | 7 | % |  | 7 | %

X
- Definition Leases Disclosure. + References No definition available. + Details
Name: | kss_LeasesDisclosureTextBlock
Namespace Prefix: | kss_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration