Kohl's 2015 Annual Report Download - page 26

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Table of Contents

Our contractual obligations as of January 30, 2016 were as follows:








Long-term debt $ 2,815
$ —
$ —
$ —
$ 2,815
Capital lease and financing obligations 1,460
118
230
197
915
4,275
118
230
197
3,730

Interest payments:
Long-term debt 1,848
132
269
258
1,189
Capital lease and financing obligations 2,509
175
323
287
1,724
Operating leases (a) 5,627
244
491
484
4,408
Purchase obligations (b) 4,681
4,681
—
—
—
Other (c) 1,030
313
291
170
256
15,695
5,545
1,374
1,199
7,577
Total $ 19,970
$ 5,663
$ 1,604
$ 1,396
$ 11,307
(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 $179 million for 2015 and $175 million for both 2014 and 2013.
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 2016 or later, as well as payments
associated with technology and marketing agreements.
We have not included $162 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 2015.
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.
26