Kohl’s(KSS) - 2024 Q4 - Annual Report

Employment and Workforce - The company employed an average of approximately 96,000 associates in 2023, including about 36,000 full-time and 60,000 part-time associates[21]. - The company offers a 100% match (up to 5% of pay) in its 401(k) Savings Plan after one year of employment for eligible associates[28]. - The company has implemented an education benefit that provides fully-funded tuition, books, and fees for associates pursuing high school completion and select degrees[29]. - The company is committed to its Diversity, Equity, and Inclusion strategy, which is embedded into its acquisition and retention practices for all associates[24]. Financial Performance - The company reported net sales of $16.586 billion for the fiscal year 2023, a decline of 3.3$17.161 billion in 2022[222]. - The total revenue for 2023 was $17.476 billion, down 3.4$18.098 billion in 2022[222]. - The operating income for 2023 was $717 million, significantly improved from$246 million in 2022[222]. - The net income for 2023 was $317 million, a recovery from a net loss of$19 million in 2022[222]. - Basic net income per share for 2023 was $2.88, recovering from a loss of$0.15 per share in 2022[261]. Assets and Liabilities - As of February 3, 2024, the company's merchandise inventories balance was $2.9 billion, down from$3.2 billion in the previous year, representing a decrease of approximately 9.7%[210]. - The company’s total assets decreased to $14.009 billion from$14.345 billion year-over-year, a decline of approximately 2.3%[221]. - The company’s total shareholders' equity increased to $3.893 billion from$3.763 billion, reflecting a growth of about 3.4%[221]. - Total property and equipment, net, as of February 3, 2024, was $7,720 million, down from$7,926 million in the previous year[236]. - Accrued liabilities decreased slightly to $1,201 million in 2024 from$1,220 million in 2023[243]. Debt and Credit Facilities - The company has a $1.5 billion revolving credit facility, with outstanding borrowings of$92 million as of February 3, 2024[198]. - The company is subject to interest rate risk due to $600 million of notes issued in April 2020, with$113 million remaining outstanding, and $500 million of notes issued in March 2021[197]. - The estimated fair value of unsecured senior long-term debt was$1.3 billion as of February 3, 2024, down from $1.6 billion as of January 28, 2023[266]. - Long-term unsecured senior debt outstanding was$1.638 billion as of February 3, 2024, compared to $1.637 billion as of January 28, 2023[265]. - Outstanding borrowings under the revolving credit facility were$92 million as of February 3, 2024, up from $85 million as of January 28, 2023[268]. Tax and Legal Matters - The company had gross unrecognized tax benefits of$200 million as of February 3, 2024, indicating potential tax liabilities[214]. - The provision for income taxes for fiscal year 2023 was $56 million, compared to a tax benefit of$39 million in 2022 and a provision of $281 million in 2021[283]. - The effective tax rate for fiscal year 2023 was 15.1$4,281 million, down 8.0% from $4,654 million in 2022[251]. - Net marketing costs for 2023 were$796 million, representing 4.6% of total revenue, a slight decrease from 4.9% in 2022[258]. Store Operations - The company operated 1,174 stores and a website, selling a range of moderately-priced private and national brand products[227]. - The company opened 254 full-size Sephora shops in 2023, bringing the total to 860 as of the end of the fiscal year[274]. Shareholder Returns - Kohl's Corporation declared a quarterly cash dividend of $0.50 per share[302]. - The dividend will be paid on April 3, 2024, to shareholders of record at the close of business on March 20, 2024[302].