Kohl's 2011 Annual Report Download - page 54

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KOHL’S CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Business and Summary of Accounting Policies
Business
As of January 28, 2012, Kohl’s Corporation operated 1,127 family-oriented department stores that feature
exclusive and national brand apparel, footwear, accessories, soft home products and housewares targeted to
middle-income customers. Our stores are located in 49 states.
Our authorized capital stock consists of 800 million shares of $0.01 par value common stock and 10 million
shares of $0.01 par value preferred stock.
Consolidation
The consolidated financial statements include the accounts of Kohl’s Corporation and its subsidiaries
including Kohl’s Department Stores, Inc., its primary operating company. All intercompany accounts and
transactions have been eliminated.
Accounting Period
Our fiscal year ends on the Saturday closest to January 31st each year. Unless otherwise stated, references to
years in this report relate to fiscal years rather than to calendar years. The following fiscal periods are presented
in this report.
Fiscal year Ended
Number of
Weeks
2011 ............................................ January 28, 2012 52
2010 ............................................ January 29, 2011 52
2009 ............................................ January 30, 2010 52
Use of Estimates
The preparation of consolidated financial statements in conformity with accounting principles generally
accepted in the United States requires management to make estimates and assumptions that affect the amounts
reported in the consolidated financial statements and accompanying notes. Actual results could differ from those
estimates.
Cash and Cash Equivalents
In addition to money market investments, cash equivalents include commercial paper and certificates of
deposit with original maturities of three months or less. We carry these investments at cost which approximates
fair value.
Also included in cash and cash equivalents are amounts due from credit card transactions with settlement
terms of less than five days. Credit and debit card receivables included within cash were $72 million at
January 28, 2012 and $70 million at January 29, 2011.
Long-term Investments
Long-term investments consist primarily of investments in auction rate securities (“ARS”) which are
classified as available-for-sale securities and recorded at fair value.
F-8