Kohl's 2015 Annual Report Download - page 56

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Table of Contents



A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows:

Balance at beginning of year  
$ 125
Increases due to:
Tax positions taken in prior years
—
Tax positions taken in current year 
21
Decreases due to:
Tax positions taken in prior years 
(16)
Settlements with taxing authorities 
(2)
Lapse of applicable statute of limitations 
(5)
Balance at end of year  
$ 123
Not included in the unrecognized tax benefits reconciliation above are gross unrecognized accrued interest and penalties of $23 million at both
January 30, 2016 and January 31, 2015. We had no interest and penalty expense for 2015, $2 million for 2014, and $3 million for 2013.
Our total unrecognized tax benefits that, if recognized, would affect our effective tax rate were $101 million as of January 30, 2016 and $89 million as
of January 31, 2015. It is reasonably possible that our unrecognized 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 examinations may be resolved in the next year, it is not anticipated that a significant impact to the
unrecognized tax benefit balance will occur.
We have both payables and receivables for current income taxes recorded on our balance sheet. Receivables included in other current assets totaled $26
million as of January 30, 2016 and $25 million as of January 31, 2015.

We currently grant share-based compensation pursuant to the Kohl’s Corporation 2010 Long-Term Compensation Plan, which provides for the granting
of various forms of equity-based awards, including nonvested stock, performance share units and options to purchase shares of our common stock, to officers,
key employees and directors. As of January 30, 2016, there were 18.5 million shares authorized and 11.2 million shares available for grant under the 2010
Long-Term Compensation Plan. Options and nonvested stock that are surrendered or terminated without issuance of shares are available for future grants.
Annual grants are typically made in the first quarter of the fiscal year. Grants to newly-hired and promoted employees and other discretionary grants are
made periodically throughout the remainder of the year. We also have outstanding options which were granted under previous compensation plans.
Stock options
The majority of stock options granted to employees typically vest in five equal annual installments. Outstanding options granted to employees after
2005 have a term of seven years. Outstanding options granted to employees prior to 2006 have a term of up to 15 years. Outstanding options granted to
directors have a term of 10 years.
F-17