Kohl's 2014 Annual Report Download - page 27

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Table of Contents

Our contractual obligations as of January 31, 2015 were as follows:








Long-term debt $ 2,800
$ —
$ 650
$ —
$ 2,150
Capital lease and financing obligations 1,510
99
217
190
1,004
4,310
99
867
190
3,154

Interest payments:
Long-term debt 1,617
149
298
216
954
Capital lease and financing obligations 2,681
180
336
303
1,862
Operating leases (a) 5,800
246
481
476
4,597
Purchase obligations (b) 4,366
4,366
—
—
—
Other (c) 699
289
271
110
29
15,163
5,230
1,386
1,105
7,442
Total $ 19,473
$ 5,329
$ 2,253
$ 1,295
$ 10,596
(a) Our leases typically require that we pay real estate taxes, insurance and maintenance costs in addition to the minimum rental payments included
in the table above. Such costs vary from period to period and totaled $175 million for both 2014 and 2013 and $165 million for 2012. The lease
term includes cancelable option periods where failure to exercise such options would result in an economic penalty.
(b) Purchase obligations consist mainly of purchase orders for merchandise. Amounts committed under open purchase orders for merchandise are
cancelable without penalty prior to a date that precedes the vendors’ scheduled shipment date.
(c) Other includes royalties, legally binding minimum lease and interest payments for stores opening in 2015 or later, as well as payments
associated with technology and marketing agreements.
We have not included $146 million of long-term liabilities for unrecognized tax benefits and the related interest and penalties in the contractual
obligations table because we are not able to reasonably estimate the timing of cash settlements. It is reasonably possible that such tax positions may change
within the next 12 months, primarily as a result of ongoing audits. While it is possible that one or more of these audits may be resolved in the next year, it is
not anticipated that payment of any such amounts in future periods will materially affect liquidity and cash flows.

We have not provided any financial guarantees as of year-end 2014.
We have not created, and are not party to, any special-purpose or off-balance sheet entities for the purpose of raising capital, incurring debt or operating
our business. We do not have any arrangements or relationships with entities that are not consolidated into the financial statements that are reasonably likely
to materially affect our financial condition, liquidity, results of operations or capital resources.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates
and assumptions that affect the reported amounts. A discussion of the more significant estimates follows. Management has discussed the development,
selection and disclosure of these estimates and assumptions with the Audit Committee of our Board of Directors.
27