Target 2004 Annual Report Download - page 39

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Quarterly Results (Unaudited)
Due to the seasonal nature of our business, fourth quarter operating results typically represent a substantially larger share of total year revenues
and earnings due to the inclusion of the holiday shopping season. The same accounting policies are followed in preparing quarterly financial data
as are followed in preparing annual data. The table below summarizes results by quarter for 2004 and 2003:
First Quarter Second Quarter Third Quarter Fourth Quarter Total Year
(millions, except per share data) 2004 2003 2004 2003 2004 2003 2004 2003 2004 2003
Total revenues $10,180 $8,928 $10,556 $9,594 $10,909 $9,827 $15,194 $13,676 $46,839 $42,025
Gross margin $ 3,140 $2,706 $ 3,268 $2,874 $ 3,300 $2,909 $ 4,529 $ 4,050 $14,237 $12,539
Earnings from continuing operations $392 $ 313 $360 $ 322 $324 $ 262 $ 809 $ 722 $ 1,885 $ 1,619
Earnings from discontinued operations,
net of $25, $18, $19, $18, $2, $18,
$62, $46 and $116 tax $40 $29 $31 $29 $4$31 $—$ 101 $75$ 190
Gain/(loss) on disposal of discontinued
operations, net of $650, $132,
$(21), and $761 tax (c) $—$— $ 1,019 $— $203 $— $16$— $1,238 $—
Net earnings (a) (b) $432 $ 342 $ 1,410 $ 351 $531 $ 293 $ 825 $ 823 $ 3,198 $ 1,809
Basic earnings per share (d)
Continuing operations $0.43 $0.34 $0.40 $0.35 $0.36 $0.29 $0.91 $0.79 $2.09 $1.78
Discontinued operations $0.04 $0.03 $0.03 $0.03 $—$0.03 $—$0.11 $0.08 $0.21
Gain from discontinued operations $—$— $1.12 $— $0.23 $— $0.01 $— $1.37 $—
Basic earnings per share (a) (b) $0.47 $0.37 $1.55 $0.38 $0.59 $0.32 $0.92 $0.90 $3.54 $1.99
Diluted earnings per share (d)
Continuing operations $0.43 $0.34 $0.39 $0.35 $0.36 $0.29 $0.90 $0.79 $2.07 $1.76
Discontinued operations $0.04 $0.03 $0.03 $0.03 $—$0.03 $—$0.11 $0.08 $0.21
Gain from discontinued operations $—$— $1.11 $— $0.2
3$— $0.01 $— $1.36 $—
Diluted earnings per share (a) (b) $0.47 $0.37 $1.53 $0.38 $0.59 $0.32 $0.91 $0.90 $3.51 $1.97
Dividends declared per share (d) $ .070 $ .060 $ .080 $ .070 $.080 $.070 $.080 $.070 $.310 $ .270
Closing common stock price (e)
High $ 45.63 $33.44 $ 46.43 $39.82 $ 50.02 $41.54 $ 52.43 $ 40.15 $ 52.43 $ 41.54
Low $ 38.59 $26.06 $ 40.80 $33.06 $ 40.42 $37.55 $ 48.50 $ 37.05 $ 38.59 $ 26.06
(a) Net earnings for first, second and third quarter of 2004 and all four quarters of 2003 has been adjusted to reflect the impact of the SFAS No. 123R restatement for those
periods. The amount of the restatement was $6 million for each of the three quarters in 2004 and $8 million for each of the four quarters in 2003. The restatement impact
on per share amounts for each respective quarter was all less than $0.01 per share.
(b) Target adjusted its method of accounting for leases related to a specific category of owned store locations on leased land which resulted in a non-cash adjustment,
primarily attributable to an increase in the straight-line rent accrual, of $65 million ($0.04 per share) in the fourth quarter of 2004.
(c) Minor tax adjustments related to the dispositions of Marshall Field’s and Mervyn’s were recorded in fourth quarter 2004.
(d) Per share amounts are computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes
in average quarterly shares outstanding.
(e) Our common stock is listed on the New York Stock Exchange and Pacific Exchange. At March 21, 2005, there were 18,030 registered shareholders and the closing
common stock price was $50.28 per share.