Kohl's 2008 Annual Report Download - page 56

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KOHL’S CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
4. Commitments (continued)
Assets held under capital leases are included in property and equipment and depreciated over the term of the
lease. Assets under capital leases consist of the following:
Jan. 31,
2009
Feb. 2,
2008
(In Millions)
Buildings and improvements .................................... $209 $197
Equipment .................................................. 24 17
Less accumulated depreciation .................................. (74) (54)
$159 $160
Depreciation expense related to capital leases totaled $19 million for 2008, $14 million for 2007 and $11
million for 2006.
Future minimum lease payments at January 31, 2009, are as follows:
Capital
Leases
Operating
Leases
(In Millions)
Fiscal Year:
2009 ..................................................... $ 30 $ 444
2010 ..................................................... 26 460
2011 ..................................................... 23 453
2012 ..................................................... 18 446
2013 ..................................................... 17 444
Thereafter ................................................ 176 8,908
290 $11,155
Less amount representing interest .............................. 113
Present value of lease payments ............................... $177
5. Benefit Plans
We have an Employee Stock Ownership Plan (“ESOP”) for the benefit of our non-management associates.
Contributions are made at the discretion of the Board of Directors. ESOP expenses, net of forfeitures, totaled $8
million for 2008, $19 million for 2007 and $20 million for 2006. Shares of our stock held by the ESOP are
included as shares outstanding for purposes of the net income per share computations.
We also have a defined contribution savings plan covering all full-time and certain part-time associates.
Participants in this plan may invest up to 25% of their base compensation, subject to certain statutory limits. We
match 100% of the first 3% of each participant’s contribution. We also make defined annual contributions for all
qualifying associates based on a percentage of qualifying payroll earnings. Defined contribution plan expense,
net of forfeitures, was $30 million for 2008, $25 million for 2007 and $16 million for 2006.
We also offer a non-qualified deferred compensation plan to a group of executives which provides for
pre-tax compensation deferrals up to 100% of salary and/or bonus. Deferrals and credited investment returns are
100% vested. The expense for 2008, 2007 and 2006 was immaterial.
F-17