EX-4 2 dex4.txt EMPLOYEE SAVINGS PLAN Financial Statements and Supplemental Schedule Kohl's Department Stores, Inc. Savings Plan February 3, 2001 and January 29, 2000 with Report of Independent Auditors Kohl's Department Stores, Inc. Savings Plan Financial Statements and Supplemental Schedule February 3, 2001 and January 29, 2000 Contents Report of Independent Auditors..................................... 1 Financial Statements Statements of Assets Available for Benefits........................ 2 Statement of Changes in Assets Available for Benefits.............. 3 Notes to Financial Statements...................................... 4 Supplemental Schedule Schedule H, Line 4i - Schedule of Assets (Held at End of Year)..... 8
Report of Independent Auditors Plan Administrator Kohl's Department Stores, Inc. Savings Plan We have audited the accompanying statements of assets available for benefits of Kohl's Department Stores, Inc. Savings Plan as of February 3, 2001 and January 29, 2000, and the related statement of changes in assets available for benefits for the year ended February 3, 2001. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the assets available for benefits of the Plan at February 3, 2001 and January 29, 2000, and the changes in its assets available for benefits for the year ended February 3, 2001, in conformity with accounting principles generally accepted in the United States. Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying supplemental schedule of assets (held at end of year) as of February 3, 2001, is presented for purposes of additional analysis and is not a required part of the financial statements but is supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan's management. The supplemental schedule has been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, is fairly stated in material respects in relation to the basic financial statements taken as a whole. June 29, 2001 1 Kohl's Department Stores, Inc. Savings Plan Statements of Assets Available for Benefits February 3, January 29, 2001 2000 ------------------------------- Cash $ 123,526 $ 5,247 Investments, at fair value 205,598,899 157,186,702 Receivables: Company contribution 5,263,972 4,285,865 Participants' contribution 349,855 572,141 ------------------------------- Total receivables 5,613,827 4,858,006 ------------------------------- Assets available for benefits $211,336,252 $162,049,955 =============================== 2 Kohl's Department Stores, Inc. Savings Plan Statement of Changes in Assets Available for Benefits Year ended February 3, 2001 Additions: Net realized and unrealized appreciation in fair value of investments $ 19,427,452 Interest and dividend income 12,098,475 ------------ Net investment income 31,525,927 Contributions: Company 8,837,813 Participants 16,985,394 Rollovers 4,615,557 ------------ Total contributions 30,438,764 ------------ Total additions 61,964,691 Deductions - Benefit and withdrawal payments 12,678,394 ------------ Increase in net assets available for benefits 49,286,297 Assets available for benefits at beginning of year 162,049,955 ------------ Assets available for benefits at end of year $211,336,252 ============ 3 Kohl's Department Stores, Inc. Savings Plan Notes to Financial Statements February 3, 2001 1. Description of Plan The Kohl's Department Stores, Inc. Savings Plan (the Plan) is a defined- contribution plan covering all employees of Kohl's Department Stores, Inc. (the Company) with greater than 750 hours of service in any calendar year. It is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA). Participants should refer to the "Savings Plan Handbook" for a description of the Plan. 2. Summary of Significant Accounting Policies Valuation of Investments The Putnam Money Market Fund and the Putnam S&P 500 Index Fund is valued at fair value based on the redemption prices established by Putnam Investments. Investments in Kohl's Corporation common stock and all other mutual funds are valued at fair value as established by quoted market prices. Investment Options The Plan is intended to satisfy the requirements under Section 404(c) of ERISA and, therefore, provides that participants may choose to direct their contributions and/or all or part of their account balances among any of the Plan's eight investment alternatives quarterly. Contributions Contributions from the Company are accrued for in accordance with the terms of the Plan. Participant contributions are recorded in the period the Company makes corresponding payroll deductions. Expenses Expenses related to the administration of the Plan are paid by the Company. 4 Kohl's Department Stores, Inc. Savings Plan Notes to Financial Statements (continued) 2. Summary of Significant Accounting Policies (continued) Plan Year The Plan's fiscal year ends on the Saturday closest to January 31. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ from those estimates. 3. Contributions and Benefit and Withdrawal Payments Eligible participants may make voluntary tax-deferred contributions up to a total of 15% of their base compensation (as defined), subject to certain statutory limits. Participant contributions made with tax-deferred dollars under Section 401(k) of the Internal Revenue Code (IRC) are excluded from the participant's current wages for federal income tax purposes. No federal income tax is paid on the tax-deferred contributions and growth thereon until the participant withdraws them from the Plan. The participant's contribution rate may be adjusted at the discretion of the Plan Administrator if a reduced rate is necessary to maintain Section 401(k) benefits. The Company's matching contribution is equal to 33/1//3% of each participant's contribution, up to a maximum of 2% of the participant's base compensation. The Plan also provides for additional Company contributions based on the discretion of the Company's Board of Directors. All voluntary contributions made by a participant are fully vested. The Company's matching and discretionary contribution is 100% vested after five years of credited service. Upon termination, the nonvested portion of any participant account is forfeited. Forfeitures are applied to reduce future Company contributions. 5 3. Contributions and Benefit and Withdrawal Payments (continued) Retired participants' and total and permanently disabled participants' vested benefits are distributed, at the discretion of the participant, in a lump-sum payment or in periodic equal installments over a period not exceeding the lesser of ten years or the life expectancy of the participant. Terminated participants' and deceased participants' vested benefits are distributed in a lump-sum payment. Participants may withdraw, at any time, upon substantial financial hardship (as defined), any portion of the balance in their account which is attributable to their voluntary tax-deferred contributions and earnings. Participants are prohibited from making contributions to the Plan for 12 months following receipt of a hardship withdrawal. 4. Investments During the year ended February 3, 2001, the Plan's investments (including investments purchased, sold, as well as held during the year) appreciated (depreciated) in fair value as determined by quoted market prices as follows: Net Realized and Unrealized Appreciation/ (Depreciation) in Fair Value of Investments ------------------------------- Kohl's Corporation Common Stock $ 39,841,216 Common Trust Fund (76,849) Mutual Funds (20,336,915) ------------------------------- $ 19,427,452 =============================== Investments that represent 5 percent or more of the Plan's net assets are as follows: February 3, January 29, 2001 2000 Kohl's Corporation Common Stock* $78,935,114 $38,125,841 Putnam Voyager Fund* 63,329,613 67,980,344 BGI Masterworks Balanced Portfolio 31,007,569 27,657,380 Putnam Money Market Fund* 19,424,771 16,568,125 *Indicates party in interest to the Plan. 6 Kohl's Department Stores, Inc. Savings Plan Notes to Financial Statements (continued) 5. Plan Termination Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100% vested in their accounts. 6. Income Tax Status The Plan has received a determination letter from the Internal Revenue Service dated March 12, 1998, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (the Code) and, therefore, the related trust is exempt from taxation. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The Plan Administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes that the Plan is qualified and the related trust is tax exempt. 7 Kohl's Department Stores, Inc. Savings PLan Employer Identification Number 13-3357362 Plan number 002 Schedule H, Line 4i-Schedule of Assets (Held at End of Year) February 3, 2001 Identity of Issue, Borrower, Current Lessor or Similar Party Number of Shares/Units Value ---------------------------------------------------------------------------- Mutual Funds: BGI Masterworks Balanced Portfolio 2,763,598 $ 31,007,569 PIMCO Total Return Fund 113,492 1,190,534 Putnam Investors Fund* 234,789 3,557,050 Putnam Voyager Fund* 2,699,472 63,329,613 Putnam International Growth Fund* 200,048 4,851,171 Putnam Money Market Fund* 19,424,770 19,424,771 Common Trust Fund- Putnam S&P 500 Index Fund* 100,673 3,303,077 Kohl's Corporation Common Stock* 1,111,762 78,935,114 -------------- $205,598,899 ============== *Indicates party in interest to the Plan. 8 Supplemental Schedule