9. Why did Kohl's add back depreciation and amortization expense on the Statements of Cash Flows? baal thentic KOHL'S CORPORATION CONSOLIDATED BALANCE SHEETS January 30, 2021 February 1 2020 Dollars in Millions Assets Current assets Cash and cash equivalents Merchandise inventories Other Total current assets Property and equipment.net Operating leases Other assets Total assets 2,271 2,590 974 5,835 6,689 2,398 415 15,337 723 3.537 389 4.649 7 362 2.391 163 14,555 1,4765 1,270 1,206 1.281 Liabilities and Shareholders' Equity Current liabilities Accounts payable Accrued abilities Current portion of Finance lease and financing obligations Operating feases Total current liabites Long-term debt Finance lease and financing obligations Operating leases Deferred income taxes Other long-term liabilities Shareholders' equity Common stock 377 and 375 million shares issued Paid in capital Treasury stock, it cost, 219 and 219 million shares Retained eaming Total shasteholders equity Total Habilities and shareholders equity See accompanying Notes to consolidated Financial Statements 115 161 3,022 2,451 1,387 2,625 302 354 124 158 2789 1.85 1.367 2,610 250 234 4 3,519 (11,595) 13,468 5.1965 15,337 3272 (11.571) 13.745 5.40 14.555 KOHL'S CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS 2020 2019 2018 15,031 924 15,955 10,360 18.8855 1,089 19.974 12.140 19.107 1082 20,229 12,199 5.705 917 113 Dollars in Millions Except per Share Data Net sales Other revenue Total revenue Cost of merchandise sold Operating expenses Selling general, and administrative Depreciation and amortization Impairments, store closing, and other costs (Gain) on sale of real estate Operating (loss) income Interest expense, net Gain) loss on extinguishment of debt KLOSS) income before income taxes Benefit) provision for income taxes Net (los) income Net loss) income per share Basic Diluted 5,021 874 89 (127) (262) 284 6,601 064 104 1,099 207 (19) 1.301 250 65 1,042 241 201 901 (546) (383) (163) 210 6915 488 (1.06) (1.06) 4.395 437S See accompanying Notes to consolidated Financial Statements KOHL'S CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY 2020 2019 2010 Dollar in Millions, Except per Share Data) Common stock Balance, beginning of period Stock-based awards Balance, end of period Pald-in capital Balance beginning of period Stock-based awards Balance, end of period 3,272 47 3,319 3,2045 68 3.272 3,078 126 3.2014 (11,671) (11,076) (470) (31) (10.051) (398) (34) (22) (11,595) (11.571) (11.076) (10) Treasury stock Balance, beginning of period Treasury stock purchases Stock-based awards Dividends paid Balance, end of period Accumulated other comprehensive (loss) Income (a) Balance beginning of period Other comprehensive Income Balance, end of period Retained earnings Balance, beginning of period Change in accounting standard (b) Net (los) earnings Dividends paid Balance, and of period Total shareholders' equity, and of period 13,745 12.999 (163) 13,395 88 091 (420) 13.745 301 (405) 13.305 13,468 5.196 5.480 3.427 375 374 1 2 377 374 Common stock Shares, beginning of period Stock-based awards Shares and of period Treasury stock Shares, beginning of period Treasury stock purchases Shares and of period Total shares outstanding, and of period (219) (205) (211) B (219) 156 (219) 150 1211 183 Dividends paid per common share 0,704 2014 KOHL'S CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS 2010 801 984 87 (31) 72 63 149 150 18 79 100 (84) 32 2107 (578) (Dollars in Millions 2020 2019 Operating activities Net (Loss) Income Adjustments to reconcile net (loss) income to net cash provided by operating activities (163) SI6015 Depreciation and amortization 874 917 Share-based compensation 40 56 Deferred income taxes 18 51 Impairments, store closing, and other costs 64 84 (Gain) on sale of real estate (127) (Gain loss on extinguishment of debt (9) Non-cash inventory costs 187 Non-cash lease expense Other non-cash expense 22 11 Changes in operating assets and liabilities Merchandise inventories 768 (51) Other current and long-term assets (813) 48 Accounts payable 270 19 Accrued and other long-term liabilities 199 (134) Operating tease liabilities (150) (156) Net cash provided by operating activities 1,338 1,657 Investing activities Acquisition of property and equipment (334) (855) Proceeds from sale of real estate 197 Other 18 Net ish used in investing activities (137) 837 Financing activities Proceeds from issuance of debt 2,097 Deferred financing costs (19) Treasury stock purchases (8) (470) Shares withheld for taxes on vested restricted shares (22) (30 Dividends paid (108) (423) Reduction of long-term borrowing (1.497) (0) Premium paid on redemption of debt Finance lease and financing obligation payments (105) (113) Proceeds from stock option exercises Proceeds from financing obligations 11 Net cash provided by used in financing activities 347 (1.031 Net increase (decrease in cash and cash equivalents 1,548 (211) Cash and cash equivalents at beginning of period 723 934 Cash and cash equivalents at end of period 2.271 723 5 Supplemental Information Interest paid, net of capitalized interest 2545 193 5 Income taxes paid 172 Property and equipment acquired through Finance lease libi 128 230 Operating tease liabilities 165 100 Financing obligations See accompanying Notes to Consolidated Financial Statements 1572) (396) (34) (400) (943) (46) (120) 36 9 (1.909 (374) 1:00 934 419 202 300 37