Kohl's 2010 Annual Report Download - page 54

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Table of Contents


 
but not yet reported. We use a third-party actuary, which considers historical claims experience, demographic factors, severity factors and other actuarial
assumptions, to estimate the liabilities associated with these risks. We retain the initial risk of $500,000 per occurrence under our workers’ compensation
insurance policy and $250,000 per occurrence under our general liability policy. The lifetime medical payment limit of $1.5 million per plan participant was
eliminated on December 31, 2010. Total estimated liabilities for workers’ compensation, general liability and employee-related health benefits, excluding
administrative expenses and before pre-funding, were approximately $89 million at January 29, 2011 and $85 million at January 30, 2010. Although these
amounts are actuarially determined based on analysis of historical trends, the amounts that we will ultimately disburse could differ from these estimates.

Other long-term liabilities consist of the following:





Property-related liabilities (straight-line rents and rent incentives)  $311
Unrecognized tax benefits, including accrued interest and penalties  114
Deferred compensation  35
Other  28
 $488

We account for repurchases of common stock using the cost method with common stock in treasury classified in the Consolidated Balance Sheets as a
reduction of shareholders’ equity.

Revenue from the sale of merchandise at our stores is recognized at the time of sale, net of any returns. E-Commerce sales are recorded based on
estimated receipt of merchandise by the customer. Net sales do not include sales tax as we are considered a pass-through conduit for collecting and remitting
sales taxes.
Revenue from gift card sales is recognized when the gift card is redeemed. Gift card breakage revenue is based on historical redemption patterns and
represents the balance of gift cards for which we believe the likelihood of redemption by a customer is remote.
F-10