Kohl's 2011 Annual Report Download - page 35

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our accounting for leases and contributed to the restatement of our Quarterly Report on Form 10-Q for the
quarter ended April 30, 2011 and our Annual Report on Form 10-K for the fiscal year ended January 29, 2011 in
September 2011.
To remediate the material weakness described above, we have implemented remedial measures including a
review of all of our leases to correct instances where we were not complying with generally accepted accounting
principles. In addition, we have developed updated procedures to reflect the technical guidance for lease
accounting and have instituted additional management review to confirm the proper implementation of
accounting standards going forward. Despite the remedial measures that have been implemented, the material
weakness can not be considered remediated until the applicable remedial controls operate for a sufficient period
of time and management has concluded, through testing, that these controls are operating effectively. Given the
timing of new lease transactions and the length of the typical lease cycle, we did not have a sufficient number of
transactions to test during 2011 to ensure that these controls are operating effectively.
We currently expect that the necessary testing of the controls over accounting for leases will be completed
in fiscal 2012 and will indicate that the material weakness related to these controls has been remediated.
(c) Changes in Internal Control Over Financial Reporting
Except as otherwise discussed above, there were no changes in our internal control over financial reporting
that have materially affected or are reasonably likely to materially affect such controls, including any corrective
actions with regard to significant deficiencies and material weaknesses.
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