Kohl's 2011 Annual Report Download - page 26

Download and view the complete annual report

Please find page 26 of the 2011 Kohl's annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 80

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80

We repaid long-term debt of $300 million in March 2011 and $100 million in October 2011. In October
2011, we issued $650 million of 4.00% notes with semi-annual interest payments beginning May 2012. The notes
mature on November 1, 2021 and have an effective interest rate of 4.8%. In conjunction with the debt issuance,
we paid $48 million to settle interest-rate hedges which were entered into in December 2010 and May 2011 in
anticipation of the October debt issuance.
We have various facilities upon which we may draw funds, including a 5-year, $1 billion senior unsecured
revolving credit facility which we entered into in June 2011. The co-leads of this facility, Bank of America, U.S.
Bank, and Wells Fargo Bank, have each committed $110 million. The remaining 13 lenders have each committed
between $30 and $85 million. The $1 billion facility replaced a $900 million facility which was scheduled to
expire in October 2011. We also have a demand note with availability of $30 million. There were no draws on
these facilities during 2011 or 2010.
Our credit ratings have been unchanged since September 2007 when we issued $1 billion in debt. As of
January 28, 2012, our ratings were as follows:
Moody’s Standard & Poor’s Fitch
Long-term debt ..................................... Baa1 BBB+ BBB+
We may from time to time seek to retire or purchase our outstanding debt through open market cash
purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will depend on prevailing
market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved
could be material.
During 2011, we paid cash dividends of $271 million as detailed in the following table:
First Quarter Second Quarter Third Quarter Fourth Quarter
Declaration date ........ February 23, 2011 May 11, 2011 August 11, 2011 November 9, 2011
Record date ............ March 9, 2011 June 8, 2011 September 7, 2011 December 7, 2011
Payment date .......... March 30, 2011 June 29, 2011 September 28, 2011 December 28, 2011
Amount ............... $0.25 per common
share
$0.25 per common
share
$0.25 per common
share
$0.25 per common
share
On February 22, 2012, our Board of Directors approved a dividend of $0.32 per common share which will
be paid on March 28, 2012 to shareholders of record as of March 7, 2012.
Our financing activities used cash of $989 million in 2010 and $13 million in 2009. The increase is
primarily due to treasury stock purchases in the fourth quarter of 2010.
Key financial ratios.
Key financial ratios that provide certain measures of our liquidity are as follows:
2011 2010 2009
Working capital (In Millions) ................................ $ 2,185 $ 2,861 $ 3,030
Current ratio ............................................. 1.84:1 2.03:1 2.23:1
Debt/capitalization ........................................ 39.5% 33.7% 34.2%
Ratio of earnings to fixed charges ............................ 4.8 4.6 4.2
Return on Gross Investment* ................................ 18.8% 19.2% 18.2%
* Return on Gross Investment is a non-GAAP financial measure.
26