Kohl's 2015 Annual Report Download - page 55

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Table of Contents



Deferred income taxes consist of the following:



Deferred tax liabilities:
Property and equipment  
$ 1,385
Deferred tax assets:
Merchandise inventories
24
Accrued and other liabilities, including stock-based compensation 
168
Capital lease and financing obligations 
773
Accrued step rent liability 
100
Unrealized loss on interest rate swap
13
Federal benefit on state tax reserves
41

1,119
Net deferred tax liability  
$ 266
Deferred tax assets included in other long-term assets totaled $27 million as of January 30, 2016 and $32 million as of January 31, 2015.
The components of the provision for income taxes were as follows:

Current federal  
$ 400
$ 473
Current state 
36
45
Deferred federal 
48
6
Deferred state 
(2)
(9)
 
$ 482
$ 515
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 
1.3
2.2
Tax-exempt interest income
—
(0.2)
Other federal tax credits 
(0.6)
(0.3)
Provision for income taxes 
35.7%
36.7%
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 2009 through 2015 tax years. State returns subject to examination vary
depending upon the state. Generally, the 2012 through 2015 tax years are subject to state examination. The earliest open period is 2004. Certain states have
proposed adjustments which we are currently appealing. If we do not prevail on our appeals, we do not anticipate that the adjustments would result in a
material change in our financial position.
F-16