Kohl's 2014 Annual Report Download - page 53

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


We have a defined contribution savings plan covering all full-time and certain part-time associates. Participants in this plan may invest up to 100% of
their base compensation, subject to certain statutory limits. We match 100% of the first 5% of each participant’s contribution.
We also have an Employee Stock Ownership Plan ("ESOP") for the benefit of a group of our non-management associates. Contributions are made at the
discretion of the Board of Directors. Shares of our stock held by the ESOP are included as shares outstanding for purposes of the net income per share
computations.
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 total costs for these benefit plans were $43 million for 2014, $49 million for 2013, and $53 million for 2012.

Deferred income taxes consist of the following:



Deferred tax liabilities:
Property and equipment  
$ 1,416
Deferred tax assets:
Merchandise inventories
24
Accrued and other liabilities, including stock options 
223
Capital lease and financing obligations 
813
Accrued step rent liability 
94
Unrealized loss on investments
7
Unrealized loss on interest rate swap
15
Federal benefit on state tax reserves
43

1,219
Net deferred tax liability  
$ 197
The components of the provision for income taxes were as follows:

Current federal  
$ 473
$ 592
Current state
45
60
Deferred federal
6
(68)
Deferred state 
(9)
(9)
 
$ 515
$ 575
The provision for income taxes differs from the amount that would be provided by applying the statutory U.S. corporate tax rate due to the following
items:
Provision at statutory rate 
35.0%
35.0%
State income taxes, net of federal tax benefit 
2.2
2.2
Tax-exempt interest income
(0.2)
(0.1)
Other federal tax credits 
(0.3)
(0.3)
Provision for income taxes 
36.7%
36.8%
We have analyzed filing positions in all of the federal and state jurisdictions where we are required to file income tax returns, as well as all open tax
years in these jurisdictions. The only federal returns subject to examination are for the 2008 through 2014 tax years. State returns subject to examination vary
depending upon the state. Generally, the 2011 through 2014
F-14